Bill Text: TX HB1558 | 2021-2022 | 87th Legislature | Enrolled
Bill Title: Relating to the system by which an application for a low income housing tax credit is scored.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Passed) 2021-06-15 - Effective on 9/1/21 [HB1558 Detail]
Download: Texas-2021-HB1558-Enrolled.html
| H.B. No. 1558 | ||
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| relating to the system by which an application for a low income | ||
| housing tax credit is scored. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 2306.6710(b), Government Code, is | ||
| amended to read as follows: | ||
| (b) If an application satisfies the threshold criteria, the | ||
| department shall score and rank the application using a point | ||
| system that: | ||
| (1) prioritizes in descending order criteria | ||
| regarding: | ||
| (A) financial feasibility of the development | ||
| based on the supporting financial data required in the application | ||
| that will include a project underwriting pro forma from the | ||
| permanent or construction lender; | ||
| (B) quantifiable community participation with | ||
| respect to the development, evaluated on the basis of a resolution | ||
| concerning the development that is voted on and adopted by the | ||
| following, as applicable: | ||
| (i) the governing body of a municipality in | ||
| which the proposed development site is to be located; | ||
| (ii) subject to Subparagraph (iii), the | ||
| commissioners court of a county in which the proposed development | ||
| site is to be located, if the proposed site is to be located in an | ||
| area of a county that is not part of a municipality; or | ||
| (iii) the commissioners court of a county | ||
| in which the proposed development site is to be located and the | ||
| governing body of the applicable municipality, if the proposed site | ||
| is to be located in the extraterritorial jurisdiction of a | ||
| municipality; | ||
| (C) the income levels of tenants of the | ||
| development; | ||
| (D) the size and quality of the units; | ||
| (E) the rent levels of the units; | ||
| (F) the cost of the development by square foot; | ||
| (G) the services to be provided to tenants of the | ||
| development; | ||
| (H) whether, at the time the complete application | ||
| is submitted or at any time within the two-year period preceding the | ||
| date of submission, the proposed development site is located in an | ||
| area declared to be a disaster under Section 418.014; | ||
| (I) quantifiable community participation with | ||
| respect to the development, evaluated on the basis of written | ||
| statements from any neighborhood organizations on record with the | ||
| state or county in which the development is to be located and whose | ||
| boundaries contain the proposed development site; and | ||
| (J) the level of community support for the | ||
| application, evaluated on the basis of a written statement from the | ||
| state representative who represents the district containing the | ||
| proposed development site; | ||
| (2) uses criteria imposing penalties on applicants or | ||
| affiliates who have requested extensions of department deadlines | ||
| relating to developments supported by housing tax credit | ||
| allocations made in the application round preceding the current | ||
| round or a developer or principal of the applicant that has been | ||
| removed by the lender, equity provider, or limited partners for its | ||
| failure to perform its obligations under the loan documents or | ||
| limited partnership agreement; [ |
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| (3) encourages applicants to provide free notary | ||
| public service to the residents of the developments for which the | ||
| allocation of housing tax credits is requested; and | ||
| (4) for an application concerning a development that | ||
| is or will be located in a county with a population of 1 million or | ||
| more but less than 4 million and that is or will be located not more | ||
| than two miles from a veterans hospital, veterans affairs medical | ||
| center, or veterans affairs health care center, encourages | ||
| applicants to provide a preference for leasing units in the | ||
| development to low income veterans. | ||
| SECTION 2. The change in law made by this Act applies only | ||
| to an application for low income housing tax credits that is | ||
| submitted to the Texas Department of Housing and Community Affairs | ||
| during an application cycle that is based on the 2022 qualified | ||
| allocation plan or a subsequent plan adopted by the governing board | ||
| of the department. An application that is submitted during an | ||
| application cycle that is based on an earlier qualified allocation | ||
| plan is governed by the law in effect on the date the application | ||
| cycle began, and the former law is continued in effect for that | ||
| purpose. | ||
| SECTION 3. This Act takes effect September 1, 2021. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I certify that H.B. No. 1558 was passed by the House on April | ||
| 23, 2021, by the following vote: Yeas 122, Nays 24, 2 present, not | ||
| voting; and that the House concurred in Senate amendments to H.B. | ||
| No. 1558 on May 28, 2021, by the following vote: Yeas 100, Nays 44, | ||
| 1 present, not voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| I certify that H.B. No. 1558 was passed by the Senate, with | ||
| amendments, on May 27, 2021, by the following vote: Yeas 30, Nays | ||
| 1. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| APPROVED: __________________ | ||
| Date | ||
| __________________ | ||
| Governor | ||
