Bill Text: TX SB1812 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the issuance by the Texas Department of Housing and Community Affairs of certain federal forms for purposes of allocating low income housing tax credits; authorizing an administrative penalty.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-03-20 - Referred to Local Government [SB1812 Detail]
Download: Texas-2023-SB1812-Introduced.html
| 88R11498 JG-D | ||
| By: Menéndez | S.B. No. 1812 | |
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| relating to the issuance by the Texas Department of Housing and | ||
| Community Affairs of certain federal forms for purposes of | ||
| allocating low income housing tax credits; authorizing an | ||
| administrative penalty. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter DD, Chapter 2306, Government Code, is | ||
| amended by adding Section 2306.67101 to read as follows: | ||
| Sec. 2306.67101. ISSUANCE OF INTERNAL REVENUE SERVICE FORM | ||
| 8609; REPORT. (a) In this section: | ||
| (1) "Documentation packet" means the Internal Revenue | ||
| Service Form 8609 documentation packet required under this section. | ||
| (2) "Form 8609" means Internal Revenue Service Form | ||
| 8609, or that form's successor. | ||
| (b) Not later than the 30th day after the date a development | ||
| owner submits to the department an Internal Revenue Service Form | ||
| 8609 documentation packet under this section, the department shall | ||
| issue the owner an Internal Revenue Service Form 8609. | ||
| (c) The department shall establish procedures for a | ||
| development owner to prepare and submit to the department a | ||
| documentation packet to obtain Form 8609 for the purpose of | ||
| receiving an allocation of housing tax credits under this | ||
| subchapter. | ||
| (d) A documentation packet must include: | ||
| (1) an owner's statement of certification form: | ||
| (A) that is signed by the development owner and | ||
| notarized; and | ||
| (B) through which the development owner | ||
| certifies the accuracy of the information included in the | ||
| documentation packet; | ||
| (2) an owner's summary form that includes: | ||
| (A) the taxpayer identification number of the | ||
| development owner; and | ||
| (B) information on the ownership structure of the | ||
| development owner, the developer, or the development guarantor; | ||
| (3) a development cost schedule for the development; | ||
| (4) an independent auditor's report of the total | ||
| development cost and eligible basis of the development through | ||
| which the auditor certifies that the audit was conducted according | ||
| to generally accepted auditing standards and included: | ||
| (A) an examination of evidence supporting the | ||
| amounts and disclosures outlined in the cost certification; | ||
| (B) an assessment of the accounting principles | ||
| used and significant estimates made by the development owner; and | ||
| (C) an overall cost certification evaluation and | ||
| establishment of the total eligible basis; | ||
| (5) an independent auditor's report of bond financing | ||
| through which the auditor certifies the percentage of the | ||
| development's aggregate basis financed by tax-exempt bonds; | ||
| (6) a complete copy of the executed carryover | ||
| allocation agreement issued to the development owner by the | ||
| department; | ||
| (7) for a development that was awarded one or two | ||
| points for demonstrating nonprofit participation under the sponsor | ||
| characteristics of the application, documentation evidencing the | ||
| nonprofit participation; | ||
| (8) a placement in service form that contains | ||
| summarized information for the development on a | ||
| building-by-building basis; | ||
| (9) an architect certification of completion date and | ||
| date ready for occupancy form: | ||
| (A) that is completed and signed by the | ||
| development architect; and | ||
| (B) through which the development architect | ||
| certifies, for purposes of calculating the development's placed in | ||
| service date, the date of: | ||
| (i) the completion of the development's | ||
| buildings; and | ||
| (ii) the issuance of the certificate of | ||
| occupancy for the development; and | ||
| (10) a complete copy of the executed and recorded land | ||
| use restriction agreement for the development. | ||
| (e) If the department determines that a development owner | ||
| intentionally provided incorrect or inconsistent information in a | ||
| documentation packet submitted to the department under this | ||
| section, the department may assess an administrative penalty | ||
| against the owner in accordance with Subchapter B. In assessing an | ||
| administrative penalty under this subsection, the department may: | ||
| (1) impose a monetary penalty; or | ||
| (2) prohibit the owner or any person that has an | ||
| ownership interest in the development, except for a tax credit | ||
| purchaser or syndicator, from participating in the low income | ||
| housing tax credit program for a period of not more than two years. | ||
| (f) The department shall quarterly prepare and submit to the | ||
| legislature a written report that includes the following | ||
| information for the preceding quarter: | ||
| (1) the total number of submitted documentation | ||
| packets that the department is in the course of processing; | ||
| (2) the total number of Forms 8609 that the department | ||
| issued, aggregated by the total number issued: | ||
| (A) not later than the 15th day after the date a | ||
| documentation packet was submitted; | ||
| (B) on or after the 16th day but before the 31st | ||
| day after the date a documentation packet was submitted; | ||
| (C) on or after the 31st day but before the 61st | ||
| day after the date a documentation packet was submitted; and | ||
| (D) on or after the 61st day after the date a | ||
| documentation packet was submitted; | ||
| (3) a detailed statement of the reasons for the | ||
| department's delay in issuing Form 8609 in the time required by | ||
| Subsection (b), including complete copies of any requests for | ||
| information; | ||
| (4) the average time the department required for | ||
| issuing Form 8609; | ||
| (5) the total number of rejected applications for Form | ||
| 8609; and | ||
| (6) a detailed statement of the reason for the | ||
| department's rejection of each application. | ||
| (g) The department shall adopt rules to implement this | ||
| section, including rules: | ||
| (1) prescribing the form and contents of the | ||
| documentation required by Subsections (d)(1), (2), (3), (4), (5), | ||
| (8), and (9); and | ||
| (2) specifying the manner, deadline, and fees for | ||
| submitting a documentation packet under this section. | ||
| SECTION 2. The changes in law made by this Act apply 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 2024 qualified allocation | ||
| plan or a subsequent plan adopted by the governing board of the | ||
| department under Section 2306.67022, Government Code. 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, 2023. | ||
