BILL ANALYSIS

H.B. 1757

By: Cortez

Urban Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The 83rd Legislature, Regular Session, passed H.B. 3361, which requires developers who are applying for noncompetitive housing tax credits to acquire a resolution of no objection from their local jurisdiction. However, these requests frequently go unanswered for long periods by the jurisdiction, which uses it as a suspensive veto. If the developer fails to obtain a resolution, the development is ruled ineligible for the housing tax credit and is unable to appeal. H.B. 1757 seeks to address this issue by revising provisions regarding the requirement for a developer to obtain a resolution of no objection.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 1757 amends the Government Code to limit to a county with a population of 1.2 million or more or a municipality with a population of 600,000 or more application of the requirement to hold a hearing at which public comment may be made on an application for a low income housing tax credit for a development financed through the private activity bond program. The bill authorizes the governing board of the Texas Department of Housing and Community Affairs (TDHCA) to approve an application for housing tax credits for developments that will be located in a county or municipality described by the bill if, before the 90th day after the date on which all applicable governing bodies received notice of the application, the governing body does not do the following:

·         hold the required hearing; and

·         object to the application through an official decree.

The bill applies only to an application for low income housing tax credits that is submitted to TDHCA during an application cycle that is based on the 2024 qualified allocation plan or a subsequent plan adopted by the governing board of TDHCA.

EFFECTIVE DATE

September 1, 2023.