Bill Text: TX HB191 | 2023-2024 | 88th Legislature | Comm Sub
Bill Title: Relating to the evaluation of applications for certain financial assistance administered by the Texas Department of Housing and Community Affairs.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2023-05-24 - Removed from local & uncontested calendar [HB191 Detail]
Download: Texas-2023-HB191-Comm_Sub.html
| By: Bernal, Geren (Senate Sponsor - Hughes) | H.B. No. 191 | |
| (In the Senate - Received from the House May 4, 2023; | ||
| May 17, 2023, read first time and referred to Committee on Local | ||
| Government; May 22, 2023, reported favorably by the following | ||
| vote: Yeas 9, Nays 0; May 22, 2023, sent to printer.) | ||
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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 2306.359(a), Government Code, is amended | ||
| to read as follows: | ||
| (a) In evaluating an application for an issuance of private | ||
| activity bonds, the department shall score and rank the application | ||
| using a point system based on criteria that are adopted by the | ||
| department, including criteria regarding: | ||
| (1) the income levels of tenants of the development, | ||
| consistent with the funding priorities provided by Section | ||
| 1372.0321; | ||
| (2) the rent levels of the units; | ||
| (3) the level of community support for the | ||
| application; | ||
| (4) the period of guaranteed affordability for low | ||
| income tenants; | ||
| (5) the cost per unit of the development; | ||
| (6) the size, quality, and amenities of the units; | ||
| (7) the services to be provided to tenants of the | ||
| development; [ |
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| (8) whether, at the time the complete application is | ||
| submitted, all units that are: | ||
| (A) owned by the applicant are equipped with air | ||
| conditioning; and | ||
| (B) owned or operated by a housing authority or | ||
| other governmental entity, from which the applicant receives | ||
| financial assistance or with which the applicant participates in | ||
| projects for the development of affordable housing, are equipped | ||
| with air conditioning; and | ||
| (9) other criteria as developed by the board. | ||
| SECTION 2. Section 2306.6710, Government Code, is amended | ||
| by amending Subsection (b) and adding Subsections (h) and (i) 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) quantifiable community participation with | ||
| respect to the development, evaluated on the basis of a resolution | ||
| concerning the development that is voted on and adopted by the | ||
| following, as applicable: | ||
| (i) the governing body of a municipality in | ||
| which the proposed development site is to be located; | ||
| (ii) subject to Subparagraph (iii), 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 | ||
| (iii) 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 income levels of tenants of the | ||
| development; | ||
| (D) the size and quality of the units; | ||
| (E) the rent levels of the units; | ||
| (F) the cost of the development by square foot; | ||
| (G) the services to be provided to tenants of the | ||
| development; | ||
| (H) whether, at the time the complete 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) quantifiable community participation with | ||
| respect to the development, evaluated on the basis of written | ||
| statements from any neighborhood organizations on record with the | ||
| state or county in which the development is to be located and whose | ||
| boundaries contain the proposed development site; [ |
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| (J) the level of community support for the | ||
| application, evaluated on the basis of a written statement from the | ||
| state representative who represents the district containing the | ||
| proposed development site; and | ||
| (K) whether, at the time the complete application | ||
| is submitted, all units that are: | ||
| (i) owned by the applicant are equipped | ||
| with air conditioning; and | ||
| (ii) owned or operated by a housing | ||
| authority or other governmental entity, from which the applicant | ||
| receives financial assistance or with which the applicant | ||
| participates in projects for the development of affordable housing, | ||
| are equipped with air conditioning; | ||
| (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; | ||
| (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; and | ||
| (4) for an application concerning a development that | ||
| is or will be located in a county with a population of 1 million or | ||
| more but less than 4 million and that is or will be located not more | ||
| than two miles from a veterans hospital, veterans affairs medical | ||
| center, or veterans affairs health care center, encourages | ||
| applicants to provide a preference for leasing units in the | ||
| development to low income veterans. | ||
| (h) If an applicant requests in writing a statement of | ||
| support under Subsection (b)(1)(J) from the state representative | ||
| who represents the district containing the proposed development | ||
| site, the request from the applicant must include information | ||
| disclosing the percentage of units owned or operated as described | ||
| by Subsection (b)(1)(K) that are equipped with air conditioning. | ||
| (i) In assigning points to an application under Subsection | ||
| (b)(1)(K), the department shall award negative points if any of the | ||
| units that are owned or operated as described by that paragraph are | ||
| not equipped with air conditioning. | ||
| SECTION 3. 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 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 4. This Act takes effect September 1, 2023. | ||
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