Bill Text: TX HB3576 | 2015-2016 | 84th Legislature | Enrolled
Bill Title: Relating to restrictions on the use, transfer, and sale of housing developments that have received certain financial assistance administered by the Texas Department of Housing and Community Affairs.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2015-06-17 - Effective on 9/1/15 [HB3576 Detail]
Download: Texas-2015-HB3576-Enrolled.html
H.B. No. 3576 |
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relating to restrictions on the use, transfer, and sale of housing | ||
developments that have received 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 2306.185, Government Code, is amended by | ||
adding Subsection (d-1) and amending Subsection (e) to read as | ||
follows: | ||
(d-1) The department shall adopt rules that provide for the | ||
amendment of a land use restriction agreement. Rules adopted under | ||
this subsection must require reasonable notice to tenants, a public | ||
hearing, and board approval for any material amendment to a land use | ||
restriction agreement. | ||
(e) Subsections (c), [ |
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2306.269 apply only to multifamily rental housing developments to | ||
which the department is providing one or more of the following forms | ||
of assistance: | ||
(1) a loan or grant in an amount greater than 33 | ||
percent of the market value of the development on the date the | ||
recipient completed the construction of the development; | ||
(2) a loan guarantee for a loan in an amount greater | ||
than 33 percent of the market value of the development on the date | ||
the recipient took legal title to the development; or | ||
(3) a low income housing tax credit. | ||
SECTION 2. Section 2306.6713, Government Code, is amended | ||
by adding Subsection (g) to read as follows: | ||
(g) The transfer of ownership of a development supported | ||
with an allocation of housing tax credits under this section does | ||
not subject the development to a right of first refusal under | ||
Section 2306.6726 if the transfer is made to a newly formed entity: | ||
(1) that is under common control with the development | ||
owner; and | ||
(2) the primary purpose of the formation of which is to | ||
facilitate the financing of the rehabilitation of the development | ||
using assistance administered through a state financing program. | ||
SECTION 3. Section 2306.6720, Government Code, is amended | ||
to read as follows: | ||
Sec. 2306.6720. ENFORCEABILITY OF APPLICANT | ||
REPRESENTATIONS. Each material representation made by an applicant | ||
to secure a housing tax credit allocation is enforceable by the | ||
department and the tenants of the development supported with the | ||
allocation. Subject to modification and enforcement as provided by | ||
this chapter, a land use restriction agreement that is recorded | ||
with respect to a development is considered to state the | ||
development owner's ongoing obligations with regard to the matters | ||
addressed in the agreement. | ||
SECTION 4. Section 2306.6725(b), Government Code, is | ||
amended to read as follows: | ||
(b) The department shall provide appropriate incentives as | ||
determined through the qualified allocation plan to reward | ||
applicants who agree to: | ||
(1) equip the development [ |
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of the application with energy saving devices that meet the | ||
standards established by the state energy conservation office or | ||
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agreement in accordance with Section 2306.6726, [ |
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purchase the development [ |
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in, and in accordance with the requirements of, Section 42(i)(7), | ||
Internal Revenue Code of 1986 (26 U.S.C. Section 42(i)(7)); and | ||
(2) locate the development in a census tract in which | ||
there are no other existing developments supported by housing tax | ||
credits. | ||
SECTION 5. Section 2306.6726, Government Code, is amended | ||
to read as follows: | ||
Sec. 2306.6726. SALE OF CERTAIN LOW INCOME HOUSING TAX | ||
CREDIT DEVELOPMENTS [ |
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subject to [ |
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2306.6725 [ |
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after the expiration of the compliance period [ |
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notify the department and the tenants of the development of the | ||
owner's [ |
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specifically identify to the department any qualified entity that | ||
is the owner's intended recipient of the right of first refusal in | ||
the land use restriction agreement. | ||
(a-1) As soon as practicable after receiving notice under | ||
Subsection (a), the department [ |
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(1) provide to any qualified entity specifically | ||
identified under Subsection (a) notice regarding the owner's intent | ||
to sell the development; and | ||
(2) post on the department's Internet website the | ||
notice described by Subdivision (1) [ |
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(b) The owner of a development subject to a right of first | ||
refusal under Section 2306.6725 [ |
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(1) during the first 60-day [ |
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notice is provided under Subsection (a-1) [ |
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a qualified entity [ |
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(A) [ |
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organization as defined by the federal HOME [ |
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partnership program; or | ||
(B) controlled by an entity described by | ||
Paragraph (A); | ||
(2) during the second 60-day [ |
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notice is provided under Subsection (a-1) [ |
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[ |
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(A) is described by Section 2306.6706; | ||
(B) is controlled by an entity described by | ||
Paragraph (A) [ |
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(C) is a tenant organization; and | ||
(3) during the last 60-day period after notice is | ||
provided under Subsection (a-1) [ |
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with [ |
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(c) Beginning on the 181st day after the date the department | ||
posts notice under Subsection (a-1), an owner of a development | ||
subject to a right of first refusal [ |
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under Section 2306.6725[ |
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the right of first refusal [ |
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entity [ |
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offer to purchase the development for a price that the department | ||
determines to be reasonable [ |
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(c-1) This section applies only to a right of first refusal | ||
memorialized in a land use restriction agreement. This section | ||
does not authorize a modification of any other agreement between an | ||
owner of a development and a qualified entity. | ||
(c-2) The department shall adopt rules and procedures to | ||
give effect to the right of first refusal granted by any land use | ||
restriction agreement. | ||
(d) In this section: | ||
(1) [ |
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meaning assigned by Section 42(i)(1), Internal Revenue Code of 1986 | ||
(26 U.S.C. Section 42(i)(1)). | ||
(2) "Qualified entity" means an entity described by, | ||
or an entity controlled by an entity described by, Section | ||
42(i)(7)(A), Internal Revenue Code of 1986 (26 U.S.C. Section | ||
42(i)(7)(A)). | ||
SECTION 6. Sections 2306.6713, 2306.6725, and 2306.6726, | ||
Government Code, as amended by this Act, apply to the transfer or | ||
sale of a development supported with an allocation of low income | ||
housing tax credits issued before, on, or after the effective date | ||
of this Act. | ||
SECTION 7. This Act takes effect September 1, 2015. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 3576 was passed by the House on May 8, | ||
2015, by the following vote: Yeas 118, Nays 24, 2 present, not | ||
voting; and that the House concurred in Senate amendments to H.B. | ||
No. 3576 on May 28, 2015, by the following vote: Yeas 120, Nays 23, | ||
2 present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 3576 was passed by the Senate, with | ||
amendments, on May 26, 2015, by the following vote: Yeas 26, Nays | ||
5. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |