Bill Text: TX HB1766 | 2023-2024 | 88th Legislature | Enrolled


Bill Title: Relating to the issuance of private activity bonds for qualified residential rental projects.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2023-06-18 - Effective immediately [HB1766 Detail]

Download: Texas-2023-HB1766-Enrolled.html
 
 
  H.B. No. 1766
 
 
 
 
AN ACT
  relating to the issuance of private activity bonds for qualified
  residential rental projects.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1202.003, Government Code, is amended by
  adding Subsection (b-1) to read as follows:
         (b-1)  Notwithstanding Subsection (b), if Section
  1372.037(b) applies with respect to the issuance of qualified
  residential rental project bonds in a program year, the attorney
  general must certify the issuer's compliance with that subsection
  before approving the issuance of those bonds.  A certification made
  under this subsection may be based solely on a written verification
  provided by the issuer on request of the attorney general.
         SECTION 2.  Section 1372.0231(f), Government Code, is
  amended to read as follows:
         (f)  In each area described by Subsection (d) [or (e)], the
  board shall grant reservations based on the priority levels of
  proposed projects as described by Section 1372.0321.
         SECTION 3.  Section 1372.0321, Government Code, is amended
  to read as follows:
         Sec. 1372.0321.  PRIORITIES FOR RESERVATIONS AMONG ISSUERS
  OF QUALIFIED RESIDENTIAL RENTAL PROJECT ISSUES. (a) In granting
  reservations to issuers of qualified residential rental project
  issues, the board shall give first priority to projects that:
               (1)  during the four-year period preceding the date of
  the application, have:
                     (A)  filed an application for a low-income housing
  tax credit with the Texas Department of Housing and Community
  Affairs; and
                     (B)  closed on a previous reservation of bonds in
  accordance with Section 1372.042, as determined based on the date
  of allocation of those bonds;
               (2)  require a subsequent issuance of bonds to maintain
  compliance with the percentage requirement described by Subsection
  (e); and
               (3)  have not previously applied for a subsequent
  issuance of bonds under this subsection.
         (b)  In granting reservations to issuers of qualified
  residential rental project issues, the board shall give second
  priority to:
               (1)  projects in which:
                     (A)  50 percent of the residential units in the
  project are:
                           (i)  under the restriction that the maximum
  allowable rents are an amount equal to 30 percent of 50 percent of
  the area median family income minus an allowance for utility costs
  authorized under the federal low-income housing tax credit program;
  and
                           (ii)  reserved for families and individuals
  earning not more than 50 percent of the area median income; and
                     (B)  the remaining 50 percent of the residential
  units in the project are:
                           (i)  under the restriction that the maximum
  allowable rents are an amount equal to 30 percent of 60 percent of
  the area median family income minus an allowance for utility costs
  authorized under the federal low-income housing tax credit program;
  and
                           (ii)  reserved for families and individuals
  earning not more than 60 percent of the area median income;
               (2)  projects in which:
                     (A)  15 percent of the residential units in the
  project are:
                           (i)  under the restriction that the maximum
  allowable rents are an amount equal to 30 percent of 30 percent of
  the area median family income minus an allowance for utility costs
  authorized under the federal low-income housing tax credit program;
  and
                           (ii)  reserved for families and individuals
  earning not more than 30 percent of the area median income; and
                     (B)  the remaining 85 percent of the residential
  units in the project are:
                           (i)  under the restriction that the maximum
  allowable rents are an amount equal to 30 percent of 60 percent of
  the area median family income minus an allowance for utility costs
  authorized under the federal low-income housing tax credit program;
  and
                           (ii)  reserved for families and individuals
  earning not more than 60 percent of the area median income;
               (3)  projects:
                     (A)  in which 100 percent of the residential units
  in the project are:
                           (i)  under the restriction that the maximum
  allowable rents are an amount equal to 30 percent of 60 percent of
  the area median family income minus an allowance for utility costs
  authorized under the federal low-income housing tax credit program;
  and
                           (ii)  reserved for families and individuals
  earning not more than 60 percent of the area median income; and
                     (B)  which are located in a census tract in which
  the median income, based on the most recent information published
  by the United States Bureau of the Census, is higher than the median
  income for the county, metropolitan statistical area, or primary
  metropolitan statistical area in which the census tract is located
  as established by the United States Department of Housing and Urban
  Development; or
               (4)  on or after June 1, projects that are located in
  counties, metropolitan statistical areas, or primary metropolitan
  statistical areas with area median family incomes at or below the
  statewide median family income established by the United States
  Department of Housing and Urban Development.
         (c) [(a-1)]  In granting reservations to issuers of
  qualified residential rental project issues, the board shall give
  third [second] priority to projects in which 80 percent or more of
  the residential units in the project are:
               (1)  under the restriction that the maximum allowable
  rents are an amount equal to 30 percent of 60 percent of the area
  median family income minus an allowance for utility costs
  authorized under the federal low-income housing tax credit program;
  and
               (2)  reserved for families and individuals earning not
  more than 60 percent of the area median income.
         (d) [(a-2)]  In granting reservations to issuers of
  qualified residential rental project issues, the board shall give
  fourth [third] priority to any other qualified residential rental
  project.
         (e) [(b)]  The board may not reserve a portion of the state
  ceiling for a first, [or] second, or third priority project
  described by this section unless the board receives evidence that
  an application has been filed with the Texas Department of Housing
  and Community Affairs for the low-income housing tax credit that is
  available for multifamily transactions that are at least 51 percent
  financed by tax-exempt private activity bonds.
         SECTION 4.  Section 1372.037, Government Code, is amended by
  adding Subsection (b) to read as follows:
         (b)  This subsection applies only to projects that are
  granted a reservation of a portion of the available state ceiling
  for a program year under Subsection (a)(5). If for a program year
  the total amount of qualified residential rental project bonds for
  which reservations are sought exceeds, as of October 20 of the
  preceding year, 55.75 percent of the state ceiling, the amount of
  bonds issued to each project may not exceed 55 percent of the
  reasonably expected aggregate basis of the project and the land on
  which the project is or will be located.
         SECTION 5.  Section 1372.042(d), Government Code, is amended
  to read as follows:
         (d)  Not later than the fifth business day after the date on
  which the bonds are closed, the issuer shall submit to the board:
               (1)  a written notice stating the delivery date of the
  bonds and the principal amount of the bonds issued;
               (2)  if the project is a project entitled to first, [or]
  second, or third priority under Section 1372.0321, evidence from
  the Texas Department of Housing and Community Affairs that an award
  of low-income housing tax credits has been approved for the
  project; and
               (3)  a certified copy of the document authorizing the
  bonds and any other document relating to the issuance of the bonds,
  including a statement of the bonds':
                     (A)  principal amount;
                     (B)  interest rate or formula by which the
  interest rate is computed;
                     (C)  maturity schedule; and
                     (D)  purchaser or purchasers.
         SECTION 6.  The change in law made by this Act in adding
  Section 1202.003(b-1), Government Code, and in amending Chapter
  1372, Government Code, applies to the allocation of the available
  state ceiling under Chapter 1372 beginning with the 2024 program
  year.
         SECTION 7.  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, 2023.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1766 was passed by the House on May 2,
  2023, by the following vote:  Yeas 125, Nays 19, 3 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1766 was passed by the Senate on May
  24, 2023, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor       
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