Bill Text: TX SB990 | 2017-2018 | 85th Legislature | Comm Sub


Bill Title: Relating to the requirements for an application for a low income housing tax credit allocation from the nonprofit set-aside.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2017-05-24 - Returned to Local & Consent Calendars Comm. [SB990 Detail]

Download: Texas-2017-SB990-Comm_Sub.html
 
 
  By: Watson S.B. No. 990
 
  (Arévalo)
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the requirements for an application for a low income
  housing tax credit allocation from the nonprofit set-aside.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2306.6706(a), Government Code, is
  amended to read as follows:
         (a)  In addition to the information required by Section
  2306.6705, an application for a housing tax credit allocation from
  the nonprofit set-aside, as defined by Section 42(h)(5), Internal
  Revenue Code of 1986 (26 U.S.C. Section 42(h)(5)), must contain the
  following written, detailed information with respect to each
  development owner and each general partner of a development owner:
               (1)  Internal Revenue Service documentation of
  designation as a Section 501(c)(3) or 501(c)(4) organization;
               (2)  evidence that one of the exempt purposes of the
  nonprofit organization is to provide low income housing;
               (3)  a description of the nonprofit organization's
  participation in the construction or rehabilitation of the
  development and in the ongoing operations of the development;
               (4)  evidence that the nonprofit organization
  prohibits a member of its board of directors, other than a chief
  staff member serving concurrently as a member of the board, from
  receiving material compensation for service on the board;
               (5)  a third-party legal opinion stating that the
  nonprofit organization is not affiliated with or controlled by a
  for-profit organization and the basis for that opinion;
               (6)  a copy of the nonprofit organization's most recent
  audited financial statement;
               (7)  a list of the names [and home addresses] of members
  of the board of directors of the nonprofit organization; and
               (8)  a third-party legal opinion stating that the
  nonprofit organization is eligible under Subsection (b) for a
  housing tax credit allocation from the nonprofit set-aside and the
  basis for that opinion[; and
               [(9)     evidence that a majority of the members of the
  nonprofit organization's board of directors principally reside:
                     [(A)     in this state, if the development is located
  in a rural area; or
                     [(B)     not more than 90 miles from the development
  in the community in which the development is located, if the
  development is not located in a rural area].
         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 is based on the 2018 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 3.  This Act takes effect September 1, 2017.
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