Bill Text: TX HB885 | 2017-2018 | 85th Legislature | Introduced


Bill Title: Relating to the system by which an application for a low income housing tax credit is scored.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2017-03-14 - Left pending in committee [HB885 Detail]

Download: Texas-2017-HB885-Introduced.html
  85R727 KJE-D
 
  By: King of Hemphill H.B. No. 885
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the system by which an application for a low income
  housing tax credit is scored.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2306.6710(b), Government Code, is
  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)  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; and
                     (J)  the level of community support for the
  application, evaluated on the basis of a written statement from the
  state representative or the state senator 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.
         SECTION 2.  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 begins on or after the effective
  date of this Act. An application that is 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 3.  This Act takes effect September 1, 2017.
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