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A BILL TO BE ENTITLED
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AN ACT
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relating to the evaluation of applications for certain financial |
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assistance administered by the Texas Department of Housing and |
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Community Affairs. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2306.1114(a), Government Code, is |
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amended to read as follows: |
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(a) Not later than the 14th day after the date an |
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application or a proposed application for housing funds described |
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by Section 2306.111 has been filed, the department shall provide |
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written notice of the filing of the application or proposed |
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application to the following persons: |
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(1) the United States representative who represents |
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the community containing the development described in the |
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application; |
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(2) members of the legislature who represent the |
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community containing the development described in the application; |
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(3) the presiding officer of the governing body of the |
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political subdivision containing the development described in the |
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application; |
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(4) any member of the governing body of a political |
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subdivision who represents the area containing the development |
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described in the application; |
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(5) the superintendent and the presiding officer of |
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the board of trustees of the school district containing the |
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development described in the application; [and] |
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(6) any neighborhood organization that is |
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[organizations] on record with the state or county in which the |
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development described in the application is to be located and that |
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has [whose] boundaries containing [contain] the proposed |
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development site or has a boundary located not more than 15 miles |
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from the proposed site; and |
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(7) any residence located not more than 15 miles from |
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the proposed development site. |
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SECTION 2. Section 2306.6704(b-1), Government Code, is |
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amended to read as follows: |
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(b-1) The preapplication process must require the applicant |
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to provide the department with evidence that the applicant has |
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notified the following entities with respect to the filing of the |
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application: |
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(1) any neighborhood organization that is |
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[organizations] on record with the state or county in which the |
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development is to be located and that has [whose] boundaries |
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containing [contain] the proposed development site or has a |
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boundary located not more than 15 miles from the proposed site; |
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(2) the superintendent and the presiding officer of |
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the board of trustees of the school district containing the |
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development; |
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(3) the presiding officer of the governing body of any |
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municipality containing the development and all elected members of |
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that body; |
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(4) the presiding officer of the governing body of the |
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county containing the development and all elected members of that |
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body; [and] |
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(5) the state senator and state representative of the |
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district containing the development; and |
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(6) any residence located not more than 15 miles from |
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the proposed development site. |
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SECTION 3. Section 2306.6705, Government Code, is amended |
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to read as follows: |
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Sec. 2306.6705. GENERAL APPLICATION REQUIREMENTS. An |
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application must contain at a minimum the following written, |
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detailed information in a form prescribed by the board: |
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(1) a description of: |
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(A) the financing plan for the development, |
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including any nontraditional financing arrangements; |
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(B) the use of funds with respect to the |
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development; |
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(C) the funding sources for the development, |
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including: |
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(i) construction, permanent, and bridge |
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loans; and |
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(ii) rents, operating subsidies, and |
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replacement reserves; and |
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(D) the commitment status of the funding sources |
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for the development; |
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(2) if syndication costs are included in the eligible |
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basis, a justification of the syndication costs for each cost |
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category by an attorney or accountant specializing in tax matters; |
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(3) from a syndicator or a financial consultant of the |
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applicant, an estimate of the amount of equity dollars expected to |
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be raised for the development in conjunction with the amount of |
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housing tax credits requested for allocation to the applicant, |
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including: |
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(A) pay-in schedules; and |
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(B) syndicator consulting fees and other |
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syndication costs; |
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(4) if rental assistance, an operating subsidy, or an |
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annuity is proposed for the development, any related contract or |
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other agreement securing those funds and an identification of: |
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(A) the source and annual amount of the funds; |
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(B) the number of units receiving the funds; and |
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(C) the term and expiration date of the contract |
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or other agreement; |
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(5) if the development is located within the |
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boundaries of a political subdivision with a zoning ordinance, |
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evidence in the form of a letter from the chief executive officer of |
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the political subdivision or from another local official with |
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jurisdiction over zoning matters that states that: |
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(A) the development is permitted under the |
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provisions of the ordinance that apply to the location of the |
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development; or |
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(B) the applicant is in the process of seeking |
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the appropriate zoning and has signed and provided to the political |
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subdivision a release agreeing to hold the political subdivision |
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and all other parties harmless in the event that the appropriate |
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zoning is denied; |
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(6) if an occupied development is proposed for |
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rehabilitation: |
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(A) an explanation of the process used to notify |
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and consult with the tenants in preparing the application; |
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(B) a relocation plan outlining: |
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(i) relocation requirements; and |
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(ii) a budget with an identified funding |
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source; and |
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(C) if applicable, evidence that the relocation |
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plan has been submitted to the appropriate local agency; |
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(7) a certification of the applicant's compliance with |
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appropriate state and federal laws, as required by other state law |
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or by the board; |
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(8) any other information required by the board in the |
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qualified allocation plan; and |
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(9) evidence that the applicant has notified the |
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following entities with respect to the filing of the application: |
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(A) any neighborhood organization that is |
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[organizations] on record with the state or county in which the |
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development is to be located and that has [whose] boundaries |
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containing [contain] the proposed development site or has a |
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boundary located not more than 15 miles from the proposed |
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development site; |
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(B) the superintendent and the presiding officer |
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of the board of trustees of the school district containing the |
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development; |
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(C) the presiding officer of the governing body |
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of any municipality containing the development and all elected |
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members of that body; |
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(D) the presiding officer of the governing body |
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of the county containing the development and all elected members of |
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that body; [and] |
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(E) the state senator and state representative of |
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the district containing the development; and |
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(F) any residence located not more than 15 miles |
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from the proposed development site. |
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SECTION 4. Section 2306.6710(b), Government Code, is |
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amended to read as follows: |
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(b) If an application satisfies the threshold criteria, the |
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department shall score and rank the application using a point |
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system that: |
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(1) prioritizes in descending order criteria |
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regarding: |
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(A) financial feasibility of the development |
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based on the supporting financial data required in the application |
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that will include a project underwriting pro forma from the |
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permanent or construction lender; |
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(B) quantifiable community participation with |
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respect to the development, evaluated on the basis of a resolution |
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concerning the development that is voted on and adopted by the |
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following, as applicable: |
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(i) the governing body of a municipality in |
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which the proposed development site is to be located; |
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(ii) subject to Subparagraph (iii), the |
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commissioners court of a county in which the proposed development |
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site is to be located, if the proposed site is to be located in an |
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area of a county that is not part of a municipality; or |
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(iii) the commissioners court of a county |
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in which the proposed development site is to be located and the |
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governing body of the applicable municipality, if the proposed site |
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is to be located in the extraterritorial jurisdiction of a |
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municipality; |
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(C) the income levels of tenants of the |
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development; |
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(D) the size and quality of the units; |
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(E) the rent levels of the units; |
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(F) the cost of the development by square foot; |
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(G) the services to be provided to tenants of the |
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development; |
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(H) whether, at the time the complete application |
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is submitted or at any time within the two-year period preceding the |
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date of submission, the proposed development site is located in an |
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area declared to be a disaster under Section 418.014; |
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(I) quantifiable community participation with |
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respect to the development, evaluated on the basis of written |
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statements from any neighborhood organization that is |
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[organizations] on record with the state or county in which the |
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development is to be located and that has [whose] boundaries |
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containing [contain] the proposed development site or has a |
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boundary located not more than 15 miles from the proposed site; and |
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(J) the level of community support for the |
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application, evaluated on the basis of a written statement from the |
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state representative who represents the district containing the |
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proposed development site; |
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(2) uses criteria imposing penalties on applicants or |
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affiliates who have requested extensions of department deadlines |
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relating to developments supported by housing tax credit |
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allocations made in the application round preceding the current |
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round or a developer or principal of the applicant that has been |
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removed by the lender, equity provider, or limited partners for its |
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failure to perform its obligations under the loan documents or |
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limited partnership agreement; and |
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(3) encourages applicants to provide free notary |
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public service to the residents of the developments for which the |
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allocation of housing tax credits is requested. |
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SECTION 5. The change in law made by this Act applies only |
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to an application for low income housing tax credits that is |
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submitted to the Texas Department of Housing and Community Affairs |
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during an application cycle that is based on the 2018 qualified |
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allocation plan or a subsequent plan adopted by the governing board |
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of the department. An application that is submitted during an |
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application cycle that is based on an earlier qualified allocation |
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plan is governed by the law in effect on the date the application |
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cycle began, and the former law is continued in effect for that |
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purpose. |
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SECTION 6. This Act takes effect September 1, 2017. |