Bill Text: TX HB1888 | 2013-2014 | 83rd Legislature | Enrolled

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Bill Title: Relating to low income housing tax credits awarded to at-risk developments.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2013-06-14 - Effective on 9/1/13 [HB1888 Detail]

Download: Texas-2013-HB1888-Enrolled.html

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H.B. No. 1888

AN ACT
relating to low income housing tax credits awarded to at-risk
developments.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.6702(a)(5), Government Code, is
amended to read as follows:
(5) "At-risk development" means:
(A) a development that:
(i) [(A)] has received the benefit of a
subsidy in the form of a below-market interest rate loan, interest
rate reduction, rental subsidy, Section 8 housing assistance
payment, rental supplement payment, rental assistance payment, or
equity incentive under the following federal laws, as applicable:
(a) [(i)] Sections 221(d)(3) and (5),
National Housing Act (12 U.S.C. Section 1715l);
(b) [(ii)] Section 236, National
Housing Act (12 U.S.C. Section 1715z-1);
(c) [(iii)] Section 202, Housing Act
of 1959 (12 U.S.C. Section 1701q);
(d) [(iv)] Section 101, Housing and
Urban Development Act of 1965 (12 U.S.C. Section 1701s);
(e) [(v)] the Section 8 Additional
Assistance Program for housing developments with HUD-Insured and
HUD-Held Mortgages administered by the United States Department of
Housing and Urban Development as specified by 24 C.F.R. Part 886,
Subpart A;
(f) [(vi)] the Section 8 Housing
Assistance Program for the Disposition of HUD-Owned Projects
administered by the United States Department of Housing and Urban
Development as specified by 24 C.F.R. Part 886, Subpart C;
(g) [(vii)] Sections 514, 515, and
516, Housing Act of 1949 (42 U.S.C. Sections 1484, 1485, and 1486);
or
(h) [(viii)] Section 42, Internal
Revenue Code of 1986 (26 U.S.C. Section 42); and
(ii) [(B)] is subject to the following
conditions:
(a) [(i)] the stipulation to maintain
affordability in the contract granting the subsidy is nearing
expiration; or
(b) [(ii)] the federally insured
mortgage on the development is eligible for prepayment or is
nearing the end of its term; or
(B) a development that proposes to rehabilitate
or reconstruct housing units that:
(i) are owned by a public housing authority
and receive assistance under Section 9, United States Housing Act
of 1937 (42 U.S.C. Section 1437g); or
(ii) received assistance under Section 9,
United States Housing Act of 1937 (42 U.S.C. Section 1437g) and:
(a) are proposed to be disposed of or
demolished by a public housing authority; or
(b) have been disposed of or
demolished by a public housing authority in the two-year period
preceding the application for housing tax credits.
SECTION 2. Section 2306.6714, Government Code, is amended
by amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) The department shall set aside for eligible at-risk
developments not less than 15 percent of the housing tax credits
available for allocation in the calendar year.
(a-1) An at-risk development described by Section
2306.6702(a)(5)(B) is eligible for housing tax credits set aside
under Subsection (a) if:
(1) a portion of the public housing operating subsidy
received from the department is retained for the development; and
(2) a portion of the units of the development are
reserved for public housing as specified in the qualified housing
plan.
SECTION 3. The changes in law made by this Act apply only to
an application for low income housing tax credits that is submitted
on or after the effective date of this Act. An application for low
income housing tax credits that is submitted before the effective
date of this Act is governed by the law in effect when the
application was submitted, and the former law is continued in
effect for that purpose.
SECTION 4. This Act takes effect September 1, 2013.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1888 was passed by the House on May 2,
2013, by the following vote: Yeas 139, Nays 8, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 1888 on May 22, 2013, by the following vote: Yeas 77, Nays 51,
2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1888 was passed by the Senate, with
amendments, on May 20, 2013, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor