Bill Text: TX SB1925 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the allocation of low income housing tax credits.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-04-12 - Left pending in committee [SB1925 Detail]
Download: Texas-2023-SB1925-Introduced.html
| 88R9309 JG-D | ||
| By: Springer | S.B. No. 1925 | |
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| relating to the allocation of low income housing tax credits. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 2306.67022, Government Code, is amended | ||
| to read as follows: | ||
| Sec. 2306.67022. QUALIFIED ALLOCATION PLAN; MANUAL. (a) | ||
| At least biennially, the board shall adopt a qualified allocation | ||
| plan and a corresponding manual to provide information regarding | ||
| the administration of and eligibility for the low income housing | ||
| tax credit program. The board may adopt the plan and manual | ||
| annually, as considered appropriate by the board. | ||
| (b) The department may not adopt a qualified allocation plan | ||
| that: | ||
| (1) requires as part of the threshold criteria that an | ||
| applicant agree to, in a land use restriction agreement or | ||
| otherwise, an affordability period for a proposed development that | ||
| is greater than the federal minimum affordability period; or | ||
| (2) uses a scoring system that awards points to an | ||
| application based on whether an applicant agrees to, in a land use | ||
| restriction agreement or otherwise, an affordability period for a | ||
| proposed development that is greater than the federal minimum | ||
| affordability period. | ||
| (c) For purposes of Subsection (b), "federal minimum | ||
| affordability period" means the period beginning on the first day | ||
| of the compliance period, as defined by Section 42(i)(1), Internal | ||
| Revenue Code of 1986 (26 U.S.C. Section 42(i)(1)), and ending 15 | ||
| years from the date on which the compliance period ends. | ||
| SECTION 2. Section 2306.6711(b), Government Code, is | ||
| amended to read as follows: | ||
| (b) Not later than the deadline specified in the qualified | ||
| allocation plan, the board shall issue commitments for available | ||
| housing tax credits based on the application evaluation process | ||
| provided by Section 2306.6710. The board may not allocate to an | ||
| applicant housing tax credits in any unnecessary amount, as | ||
| determined by the department's underwriting policy and by federal | ||
| law, and in any event may not allocate to the applicant housing tax | ||
| credits in an amount greater than $6 [ |
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| application round or to an individual development more than $2 | ||
| million in a single application round. | ||
| SECTION 3. Section 2306.6724, Government Code, is amended | ||
| by adding Subsection (g) to read as follows: | ||
| (g) Notwithstanding other law, the department shall issue a | ||
| final commitment for an allocation of housing tax credits not later | ||
| than the 90th day following the date on which the department first | ||
| receives from an applicant an Internal Revenue Service Form 8609, | ||
| or that form's successor, for the purpose of obtaining a low-income | ||
| housing credit allocation and certification. | ||
| SECTION 4. Section 2306.1112, Government Code, is repealed. | ||
| SECTION 5. 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 2024 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 6. This Act takes effect September 1, 2023. | ||
