Bill Text: TX HB1568 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to the evaluation of applications for certain financial assistance administered by the Texas Department of Housing and Community Affairs.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-03-09 - Referred to Urban Affairs [HB1568 Detail]
Download: Texas-2015-HB1568-Introduced.html
84R9160 JAM-F | ||
By: Riddle | H.B. No. 1568 |
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relating to the evaluation of applications for certain financial | ||
assistance administered by the Texas Department of Housing and | ||
Community Affairs. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 2306.1114(a), Government Code, is | ||
amended to read as follows: | ||
(a) Not later than the 14th day after the date an | ||
application or a proposed application for housing funds described | ||
by Section 2306.111 has been filed, the department shall provide | ||
written notice of the filing of the application or proposed | ||
application to the following persons: | ||
(1) the United States representative who represents | ||
the community containing the development described in the | ||
application; | ||
(2) members of the legislature who represent the | ||
community containing the development described in the application; | ||
(3) the presiding officer of the governing body of the | ||
political subdivision containing the development described in the | ||
application; | ||
(4) any member of the governing body of a political | ||
subdivision who represents the area containing the development | ||
described in the application; | ||
(5) the superintendent and the presiding officer of | ||
the board of trustees of the school district containing the | ||
development described in the application; [ |
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(6) any neighborhood organization that is | ||
[ |
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development described in the application is to be located and that | ||
has [ |
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development site or has a boundary located not more than 300 feet | ||
from the proposed site; and | ||
(7) any residence located not more than 300 feet from | ||
the proposed development site. | ||
SECTION 2. Section 2306.6704, Government Code, is amended | ||
by amending Subsection (b-1) and adding Subsection (b-2) to read as | ||
follows: | ||
(b-1) The preapplication process must require the applicant | ||
to provide the department with evidence that the applicant has | ||
notified the following entities with respect to the filing of the | ||
application: | ||
(1) any neighborhood organization that is | ||
[ |
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development is to be located and that has [ |
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containing [ |
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boundary located not more than 300 feet from the proposed site; | ||
(2) the superintendent and the presiding officer of | ||
the board of trustees of the school district containing the | ||
development; | ||
(3) the presiding officer of the governing body of any | ||
municipality containing the development and all elected members of | ||
that body; | ||
(4) the presiding officer of the governing body of the | ||
county containing the development and all elected members of that | ||
body; [ |
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(5) the state senator and state representative of the | ||
district containing the development; and | ||
(6) any residence located not more than 300 feet from | ||
the proposed development site. | ||
(b-2) Notification provided under Subsection (b-1) must | ||
contain a description of the public hearing requirement under | ||
Section 2306.67071. | ||
SECTION 3. Section 2306.6705, Government Code, is amended | ||
to read as follows: | ||
Sec. 2306.6705. GENERAL APPLICATION REQUIREMENTS. (a) An | ||
application must contain at a minimum the following written, | ||
detailed information in a form prescribed by the board: | ||
(1) a description of: | ||
(A) the financing plan for the development, | ||
including any nontraditional financing arrangements; | ||
(B) the use of funds with respect to the | ||
development; | ||
(C) the funding sources for the development, | ||
including: | ||
(i) construction, permanent, and bridge | ||
loans; and | ||
(ii) rents, operating subsidies, and | ||
replacement reserves; and | ||
(D) the commitment status of the funding sources | ||
for the development; | ||
(2) if syndication costs are included in the eligible | ||
basis, a justification of the syndication costs for each cost | ||
category by an attorney or accountant specializing in tax matters; | ||
(3) from a syndicator or a financial consultant of the | ||
applicant, an estimate of the amount of equity dollars expected to | ||
be raised for the development in conjunction with the amount of | ||
housing tax credits requested for allocation to the applicant, | ||
including: | ||
(A) pay-in schedules; and | ||
(B) syndicator consulting fees and other | ||
syndication costs; | ||
(4) if rental assistance, an operating subsidy, or an | ||
annuity is proposed for the development, any related contract or | ||
other agreement securing those funds and an identification of: | ||
(A) the source and annual amount of the funds; | ||
(B) the number of units receiving the funds; and | ||
(C) the term and expiration date of the contract | ||
or other agreement; | ||
(5) if the development is located within the | ||
boundaries of a political subdivision with a zoning ordinance, | ||
evidence in the form of a letter from the chief executive officer of | ||
the political subdivision or from another local official with | ||
jurisdiction over zoning matters that states that: | ||
(A) the development is permitted under the | ||
provisions of the ordinance that apply to the location of the | ||
development; or | ||
(B) the applicant is in the process of seeking | ||
the appropriate zoning and has signed and provided to the political | ||
subdivision a release agreeing to hold the political subdivision | ||
and all other parties harmless in the event that the appropriate | ||
zoning is denied; | ||
(6) if an occupied development is proposed for | ||
rehabilitation: | ||
(A) an explanation of the process used to notify | ||
and consult with the tenants in preparing the application; | ||
(B) a relocation plan outlining: | ||
(i) relocation requirements; and | ||
(ii) a budget with an identified funding | ||
source; and | ||
(C) if applicable, evidence that the relocation | ||
plan has been submitted to the appropriate local agency; | ||
(7) a certification of the applicant's compliance with | ||
appropriate state and federal laws, as required by other state law | ||
or by the board; | ||
(8) any other information required by the board in the | ||
qualified allocation plan; and | ||
(9) evidence that the applicant has notified the | ||
following entities with respect to the filing of the application: | ||
(A) any neighborhood organization that is | ||
[ |
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development is to be located and that has [ |
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containing [ |
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boundary located not more than 300 feet from the proposed | ||
development site; | ||
(B) the superintendent and the presiding officer | ||
of the board of trustees of the school district containing the | ||
development; | ||
(C) the presiding officer of the governing body | ||
of any municipality containing the development and all elected | ||
members of that body; | ||
(D) the presiding officer of the governing body | ||
of the county containing the development and all elected members of | ||
that body; [ |
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(E) the state senator and state representative of | ||
the district containing the development; and | ||
(F) any residence located not more than 300 feet | ||
from the proposed development site. | ||
(b) A notification provided under Subsection (a) must | ||
contain a description of the public hearing requirement under | ||
Section 2306.67071. | ||
SECTION 4. Section 2306.67071, Government Code, is amended | ||
by amending Subsections (a) and (c) and adding Subsection (c-1) to | ||
read as follows: | ||
(a) Before submitting to the department an application for | ||
housing tax credits for developments financed through | ||
competitively awarded tax credits or through the private activity | ||
bond program, including private activity bonds issued by the | ||
department, the Texas State Affordable Housing Corporation, or a | ||
local issuer, an applicant must provide notice of the intent to file | ||
the application to the state representative of the district | ||
containing the proposed development site and: | ||
(1) the governing body of a municipality in which the | ||
proposed development site is to be located; | ||
(2) subject to Subdivision (3), the commissioners | ||
court of a county in which the proposed development site is to be | ||
located, if the proposed site is to be located in an area of a county | ||
that is not part of a municipality; or | ||
(3) the commissioners court of a county in which the | ||
proposed development site is to be located and the governing body of | ||
the applicable municipality, if the proposed site is to be located | ||
in the extraterritorial jurisdiction of a municipality. | ||
(c) The board may not award a housing tax credit or issue a | ||
determination notice with respect to [ |
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housing tax credits for developments financed through | ||
competitively awarded tax credits or through the private activity | ||
bond program unless the applicant has submitted to the department a | ||
certified copy of a resolution from each applicable governing body | ||
described by Subsection (a) and a letter from each applicable state | ||
representative described by Subsection (c-1). The resolution must | ||
certify that: | ||
(1) notice has been provided to each governing body as | ||
required by Subsection (a); | ||
(2) each governing body has had sufficient opportunity | ||
to obtain a response from the applicant regarding any questions or | ||
concerns about the proposed development; | ||
(3) each governing body has held a hearing under | ||
Subsection (b); and | ||
(4) after due consideration of the information | ||
provided by the applicant and public comment, including any comment | ||
from neighborhood organizations, residents, or state | ||
representatives required to be notified under this subchapter, the | ||
governing body does not object to the proposed application. | ||
(c-1) If a required resolution is adopted under Subsection | ||
(c) by a commissioners court and none of the sitting commissioners | ||
reside in the legislative district in which the proposed | ||
development site is to be located, the applicant must also submit | ||
from the state representative of the legislative district | ||
containing the proposed development site a letter stating that the | ||
representative does not object to the proposed application. | ||
SECTION 5. Sections 2306.6710(b) and (f), Government Code, | ||
are amended to read as follows: | ||
(b) If an application satisfies the threshold criteria, the | ||
department shall score and rank the application using a point | ||
system that: | ||
(1) prioritizes in descending order criteria | ||
regarding: | ||
(A) financial feasibility of the development | ||
based on the supporting financial data required in the application | ||
that will include a project underwriting pro forma from the | ||
permanent or construction lender; | ||
(B) [ |
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development; | ||
(C) [ |
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(D) [ |
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by local political subdivisions; | ||
(E) [ |
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(F) [ |
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foot; | ||
(G) [ |
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of the development; | ||
(H) [ |
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application is submitted or at any time within the two-year period | ||
preceding the date of submission, the proposed development site is | ||
located in an area declared to be a disaster under Section 418.014; | ||
(I) [ |
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with respect to the development, evaluated on the basis of written | ||
statements from any neighborhood organization that is | ||
[ |
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development is to be located and that has [ |
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containing [ |
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boundary located not more than 300 feet from the proposed site; and | ||
(J) [ |
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application, evaluated on the basis of a written statement from the | ||
state representative who represents the district containing the | ||
proposed development site; | ||
(2) uses criteria imposing penalties on applicants or | ||
affiliates who have requested extensions of department deadlines | ||
relating to developments supported by housing tax credit | ||
allocations made in the application round preceding the current | ||
round or a developer or principal of the applicant that has been | ||
removed by the lender, equity provider, or limited partners for its | ||
failure to perform its obligations under the loan documents or | ||
limited partnership agreement; and | ||
(3) encourages applicants to provide free notary | ||
public service to the residents of the developments for which the | ||
allocation of housing tax credits is requested. | ||
(f) In evaluating the level of community support for an | ||
application under Subsection (b)(1)(J) [ |
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shall award: | ||
(1) positive points for positive written statements | ||
received; | ||
(2) negative points for negative written statements | ||
received; and | ||
(3) zero points for neutral statements received. | ||
SECTION 6. The changes in law made by this Act apply only to | ||
an application for financial assistance submitted to the Texas | ||
Department of Housing and Community Affairs during an application | ||
cycle that begins on or after the effective date of this Act. An | ||
application submitted during an application cycle that began before | ||
the effective date of this Act 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 7. This Act takes effect September 1, 2015. |