By: Watson	S.B. No. 1314

	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.