Bill Text: TX SB1238 | 2017-2018 | 85th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Relating to the eligibility of certain at-risk developments to receive low income housing tax credits.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Enrolled - Dead) 2017-06-12 - Effective immediately [SB1238 Detail]

Download: Texas-2017-SB1238-Comm_Sub.html

---

By: Rodríguez S.B. No. 1238
(Moody)

A BILL TO BE ENTITLED
AN ACT
relating to the eligibility of certain at-risk developments to
receive low income housing tax credits.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.6702(a)(5), Government Code, is
amended to read as follows:
(5) "At-risk development" means:
(A) a development that:
(i) has received the benefit of a subsidy in
the form of a below-market interest rate loan, interest rate
reduction, rental subsidy, Section 8 housing assistance payment,
rental supplement payment, rental assistance payment, or equity
incentive under the following federal laws, as applicable:
(a) Sections 221(d)(3) and (5),
National Housing Act (12 U.S.C. Section 1715l);
(b) Section 236, National Housing Act
(12 U.S.C. Section 1715z-1);
(c) Section 202, Housing Act of 1959
(12 U.S.C. Section 1701q);
(d) Section 101, Housing and Urban
Development Act of 1965 (12 U.S.C. Section 1701s);
(e) the Section 8 Additional
Assistance Program for housing developments with HUD-Insured and
HUD-Held Mortgages administered by the United States Department of
Housing and Urban Development as specified by 24 C.F.R. Part 886,
Subpart A;
(f) the Section 8 Housing Assistance
Program for the Disposition of HUD-Owned Projects administered by
the United States Department of Housing and Urban Development as
specified by 24 C.F.R. Part 886, Subpart C;
(g) Sections 514, 515, and 516,
Housing Act of 1949 (42 U.S.C. Sections 1484, 1485, and 1486); or
(h) Section 42, Internal Revenue Code
of 1986 [(26 U.S.C. Section 42)]; and
(ii) is subject to the following
conditions:
(a) the stipulation to maintain
affordability in the contract granting the subsidy is nearing
expiration; or
(b) the HUD-insured or HUD-held
mortgage on the development is eligible for prepayment or is
nearing the end of its term; or
(B) a development that proposes to rehabilitate
or reconstruct housing units that:
(i) [are owned by a public housing
authority and] receive assistance under Section 9, United States
Housing Act of 1937 (42 U.S.C. Section 1437g) and are owned by:
(a) a public housing authority; or
(b) a public facility corporation
created by a public housing authority under Chapter 303, Local
Government Code;
(ii) received assistance under Section 9,
United States Housing Act of 1937 (42 U.S.C. Section 1437g) and:
(a) are proposed to be disposed of or
demolished by a public housing authority or a public facility
corporation created by a public housing authority under Chapter
303, Local Government Code; or
(b) have been disposed of or
demolished by a public housing authority or a public facility
corporation created by a public housing authority under Chapter
303, Local Government Code, in the two-year period preceding the
application for housing tax credits; or
(iii) receive assistance or will receive
assistance through the Rental Assistance Demonstration program
administered by the United States Department of Housing and Urban
Development as specified by the Consolidated and Further Continuing
Appropriations Act, [of] 2012 (Pub. L. No. 112-55) and its
subsequent amendments, if the application for assistance through
the Rental Assistance Demonstration program is included in the
applicable public housing [authority's annual] plan that was most
recently approved by the United States Department of Housing and
Urban Development as specified by 24 C.F.R. Section 903.23.
SECTION 2. Section 2306.6714, Government Code, is amended
by adding Subsection (a-2) to read as follows:
(a-2) Notwithstanding any other provision of law, an
at-risk development described by Section 2306.6702(a)(5)(B) that
was previously allocated housing tax credits set aside under
Subsection (a) does not lose eligibility for those credits if the
portion of units reserved for public housing as a condition of
eligibility for the credits under Subsection (a-1)(2) are later
converted under the Rental Assistance Demonstration program
administered by the United States Department of Housing and Urban
Development as specified by the Consolidated and Further Continuing
Appropriations Act, 2012 (Pub. L. No. 112-55) and its subsequent
amendments.
SECTION 3. 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, 2017.