Bill Text: TX HB3497 | 2015-2016 | 84th Legislature | Introduced

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Bill Title: Relating to the award of points for affordable housing projects that are awarded low income housing tax credits.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2015-04-28 - Left pending in committee [HB3497 Detail]

Download: Texas-2015-HB3497-Introduced.html

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By: Alvarado H.B. No. 3497

A BILL TO BE ENTITLED
AN ACT
relating to the award of points for affordable housing projects
that are awarded low income housing tax credits.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2304.6725, Government Code, is amended
to read as follows:
(a) In allocating low income housing tax credits, the
department shall score each application using a point system based
on criteria adopted by the department that are consistent with the
department's housing goals, including criteria addressing the
ability of the proposed project to:
(1) provide quality social support services to
residents;
(2) demonstrate community and neighborhood support as
defined by the qualified allocation plan;
(3) consistent with sound underwriting practices and
when economically feasible, serve individuals and families of
extremely low income by leveraging private and state and federal
resources, including federal HOPE VI grants received through the
United States Department of Housing and Urban Development;
(4) serve traditionally underserved areas;
(5) remain affordable to qualified tenants for an
extended, economically feasible period; and
(6) comply with the accessibility standards that are
required under Section 504, Rehabilitation Act of 1973 (29 U.S.C.
Section 794), and specified under 24 C.F.R. Part 8, Subpart C;
(7) rehabilitate, not including reconstruction, any
existing affordable housing development that is eligible to apply
under 2306.6714;
(8) allow replacement of an affordable housing
development that is eligible to apply under Section 2306.6714 and
that is at least 50 years old at the time the application is
submitted.
(b) The department shall provide appropriate incentives as
determined through the qualified allocation plan to reward
applicants who agree to:
(1) equip the property that is the basis of the
application with energy saving devices that meet the standards
established by the state energy conservation office or to provide
to a qualified nonprofit organization or tenant organization a
right of first refusal to purchase the property at the minimum price
provided in, and in accordance with the requirements of, Section
42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
42(i)(7)); and
(2) locate the development in a census tract in which
there are no other existing developments supported by housing tax
credits.
(c) On awarding tax credit allocations, the board shall
document the reasons for each project's selection, including an
explanation of:
(1) all discretionary factors used in making its
determination; and
(2) the reasons for any decision that conflicts with
the recommendations of department staff under Section 2306.6731.
(d) For each scoring criterion, the department shall use a
range of points to evaluate the degree to which a proposed project
satisfies the criterion. The department may not award a number of
points for a scoring criterion that is disproportionate to the
degree to which a proposed project complies with that criterion.
(e) Subsections (7) and (8) shall receive an equal number of
points, and such value shall be the greatest number of points
awarded under this Section, but not more than the lowest scoring
item under Section 2306.6710.
(f) Point under subsections (7) and (8) may only be awarded
for applications to receive low income housing tax credits
allocated under Section 2306.6714.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.