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AN ACT
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relating to the issuance of state and local government securities, |
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including the powers and duties of the Bond Review Board and the |
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issuance of private activity bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1231.062, Government Code, is amended by |
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amending Subsection (a) and adding Subsection (d) to read as |
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follows: |
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(a) Not later than December [October] 31 of each |
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even-numbered year, the board shall submit to the legislature a |
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statistical report relating to: |
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(1) state securities; and |
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(2) bonds and other debt obligations issued by local |
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governments. |
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(d) The board may enter into a contract for the procurement |
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of services related to the collection and maintenance of |
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information on the indebtedness of local governments and state |
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agencies necessary to prepare the statistical report. |
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SECTION 2. Subsection (c), Section 1231.063, Government |
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Code, is amended to read as follows: |
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(c) Not later than February 15 [December 1] of each year, |
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the board shall submit the annual study to: |
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(1) the governor; |
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(2) the comptroller; |
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(3) the presiding officer of each house of the |
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legislature; and |
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(4) the Senate Committee on Finance and House |
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Appropriations Committee. |
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SECTION 3. The heading to Chapter 1372, Government Code, is |
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amended to read as follows: |
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CHAPTER 1372. PRIVATE ACTIVITY BONDS AND CERTAIN OTHER BONDS |
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SECTION 4. Section 1372.001, Government Code, is amended by |
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amending Subdivisions (1) and (2) and adding Subdivisions (1-a), |
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(1-b), (4-a), and (8-a) to read as follows: |
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(1) "Additional state ceiling" means authorization |
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under federal law for the issuance of bonds that are tax-exempt |
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private activity bonds subject to the limits imposed by Section |
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146, Internal Revenue Code (26 U.S.C. Section 146), in an amount in |
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addition to the state ceiling, including the additional tax-exempt |
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private activity bonds authorized by Section 3021 of the Housing |
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and Economic Recovery Act of 2008 (Pub. L. No. 110-289). |
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(1-a) "Applicable official" means the state official |
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or state agency designated by federal law to allocate a |
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miscellaneous bond ceiling or designate bonds entitled to the |
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federal subsidy limited by a miscellaneous bond ceiling or, in the |
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absence of designation by federal law, the governor. |
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(1-b) "Board" means the Bond Review Board. |
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(2) "Bonds" means all obligations, including bonds, |
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certificates, or notes, that are: |
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(A) authorized to be issued by: |
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(i) the constitution or a statute of this |
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state; or |
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(ii) the charter of a home-rule |
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municipality; and |
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(B) either: |
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(i) subject to the limitations of Section |
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146, Internal Revenue Code (26 U.S.C. Section 146); or |
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(ii) with respect to Subchapter D, |
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otherwise entitled to a federal subsidy only if designated for the |
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exemption, credit, or other subsidy, or allocated a portion of a |
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limited amount of obligations for which the exemption, credit, or |
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other subsidy is authorized, by this state or an applicable |
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official or by an issuer to which this state or the applicable |
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official has made an allocation, including exemptions, credits, and |
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other subsidies authorized by: |
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(a) the Heartland Disaster Tax Relief |
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Act of 2008 (Pub. L. No. 110-343), regarding Hurricane Ike disaster |
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area bonds; |
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(b) the American Recovery and |
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Reinvestment Act of 2009 (Pub. L. No. 111-5); or |
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(c) any other federal law authorizing |
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a federal subsidy. |
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(4-a) "Federal subsidy" means an exclusion of interest |
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on a bond from gross income for federal income tax purposes, a |
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federal income tax credit associated with a bond, a direct federal |
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subsidy of interest on a bond, or any other federally authorized |
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financial benefit associated with a bond. |
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(8-a) "Miscellaneous bond ceiling" means the maximum |
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amount of bonds of any type that may be issued by issuers in this |
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state during a calendar year, or cumulatively, that are entitled to |
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a federal subsidy only if designated for the federal subsidy, or |
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allocated a portion of a limited amount of bonds other than bonds |
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subject to the limits imposed by Section 146, Internal Revenue Code |
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(26 U.S.C. Section 146), for which the federal subsidy is |
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authorized, by: |
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(A) this state or the applicable official; or |
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(B) an issuer to which this state or the |
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applicable official has made an allocation. |
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SECTION 5. Section 1372.002, Government Code, is amended by |
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amending Subsection (a) and adding Subsection (e) to read as |
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follows: |
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(a) For purposes of this chapter, a project is: |
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(1) an eligible facility or facilities that are |
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proposed to be financed, in whole or in part, by an issue of |
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qualified residential rental project bonds; |
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(2) in connection with an issue of qualified mortgage |
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bonds or qualified student loan bonds, the providing of financial |
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assistance to qualified mortgagors or students located in all or |
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any part of the jurisdiction of the issuer; or |
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(3) an eligible facility or facilities that are [is] |
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proposed to be financed, in whole or in part, by an issue of bonds |
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other than bonds described by Subdivision (1) or (2). |
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(e) For purposes of Subsection (a)(3), and only for |
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applications for the financing of sewage facilities, solid waste |
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disposal facilities, and qualified hazardous waste facilities, an |
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application under this chapter may include multiple facilities in |
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multiple jurisdictions. In such an application, the number of |
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facilities may be reduced as needed without affecting their status |
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as a project for purposes of the application. |
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SECTION 6. Subsection (a), Section 1372.006, Government |
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Code, is amended to read as follows: |
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(a) An application for a reservation under Subchapter B or a |
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carryforward designation under Subchapter C must be accompanied by |
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a nonrefundable fee in the amount of $500, except that: |
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(1) for projects that include multiple facilities |
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authorized under Section 1372.002(e), the application must be |
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accompanied by a nonrefundable fee in an amount of $500 for each |
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facility included in the application for the project; and |
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(2) for issuers of qualified residential rental |
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project bonds the application must be accompanied by a |
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nonrefundable fee of $5,000, of which the board shall retain $1,000 |
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to offset the costs of the private activity bond allocation program |
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and the administration of that program and of which the board shall |
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transfer $4,000 through an interagency agreement to the Texas |
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Department of Housing and Community Affairs for use in the |
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affordable housing research and information program as provided by |
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Section 2306.259. |
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SECTION 7. Section 1372.022, Government Code, is amended to |
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read as follows: |
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Sec. 1372.022. AVAILABILITY OF STATE CEILING TO ISSUERS. |
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(a) If the state ceiling is computed on the basis of $75 per capita |
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or a greater amount, before August 15 of each year: |
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(1) 28.0 percent of the state ceiling is available |
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exclusively for reservations by issuers of qualified mortgage |
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bonds; |
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(2) 8 percent of the state ceiling is available |
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exclusively for reservations by issuers of state-voted issues; |
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(3) 2.0 percent of the state ceiling is available |
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exclusively for reservations by issuers of qualified small issue |
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bonds and enterprise zone facility bonds; |
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(4) 22.0 percent of the state ceiling is available |
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exclusively for reservations by issuers of qualified residential |
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rental project bonds; |
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(5) 10.5 percent of the state ceiling is available |
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exclusively for reservations by issuers of qualified student loan |
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bonds authorized by Section 53B.47 [53.47], Education Code, that |
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are nonprofit corporations able to issue a qualified scholarship |
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funding bond as defined by Section 150(d)(2), Internal Revenue Code |
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(26 U.S.C. Section 150(d)(2)); and |
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(6) 29.5 percent of the state ceiling is available |
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exclusively for reservations by any other issuer of bonds that |
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require an allocation. |
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(b) On and after August 15 [but before September 1], that |
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portion of the state ceiling available for reservations becomes |
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available for all applications for reservations in the order |
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determined by the board by lot. If all applicants for a reservation |
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have been offered a portion of the available state ceiling, then the |
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board shall grant reservations in the order in which the |
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applications for those reservations are received[, subject to
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Section 1372.0321. On and after September 1, that portion of the
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state ceiling available for reservations becomes available to any
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issuer for any bonds that require an allocation, subject to the
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provisions of this subchapter]. |
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SECTION 8. Section 1372.026, Government Code, is amended to |
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read as follows: |
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Sec. 1372.026. LIMITATION ON AMOUNT OF STATE CEILING |
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AVAILABLE TO HOUSING FINANCE CORPORATIONS. (a) The maximum amount |
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of the state ceiling that may be reserved before August 15 by a |
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housing finance corporation for the issuance of qualified mortgage |
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bonds may not exceed the amount computed as follows: |
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(1) if the local population of the housing finance |
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corporation is 300,000 or more, $36 [$22.5] million plus the |
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product of the amount by which the local population exceeds 300,000 |
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multiplied by $40 [$11.25]; |
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(2) if the local population of the housing finance |
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corporation is 200,000 or more but less than 300,000, $32 [$20] |
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million plus the product of the amount by which the local population |
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exceeds 200,000 multiplied by $40 [$22.5]; |
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(3) if the local population of the housing finance |
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corporation is 100,000 or more but less than 200,000, $24 [$15] |
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million plus the product of the amount by which the local population |
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exceeds 100,000 multiplied by $80 [$50]; or |
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(4) if the local population of the housing finance |
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corporation is less than 100,000, the product of the local |
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population multiplied by $240 [$150]. |
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(b) A housing finance corporation may not receive an |
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allocation for the issuance of qualified mortgage bonds in an |
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amount that exceeds $40 [$25] million. |
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(c) For purposes of this section, the local population of a |
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housing finance corporation is the population of the local |
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government or local governments on whose behalf a housing finance |
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corporation is created. If two local governments that have a |
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population of at least 50,000 [20,000] each and that have |
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overlapping territory have created housing finance corporations |
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that have the power to issue bonds to provide financing for home |
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mortgages, the population of the housing finance corporation |
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created on behalf of the larger local government is computed by |
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subtracting from the population of the larger local government the |
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population of the part of the smaller local government that is |
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located in the larger local government. The reduction of |
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population provided by this subsection is not required if the |
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smaller local government assigns its authority to issue bonds, |
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based on its population, to the larger local government. |
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SECTION 9. Section 1372.0261, Government Code, is amended |
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by amending Subsections (c) and (d) and adding Subsections (e), |
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(f), and (g) to read as follows: |
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(c) If a housing finance corporation's utilization |
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percentage is less than 80 [95] percent but at least 25 percent, the |
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next time the corporation becomes eligible for a reservation of the |
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state ceiling, the maximum amount of the state ceiling that may be |
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reserved for the corporation is equal to the amount for which the |
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corporation would otherwise be eligible under Section 1372.026 |
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multiplied by the utilization percentage of the corporation's last |
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bond issue that used an allocation of the state ceiling. |
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(d) A housing finance corporation may not be penalized under |
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Subsection (c) if: |
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(1) the corporation fails to use: |
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(A) bond proceeds recycled from previous |
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allocations of the state ceiling; or |
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(B) taxable bond proceeds; or |
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(2) as the result of an issuance of bonds, the |
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corporation's utilization percentage is 80 [95] percent or greater. |
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(e) If a housing finance corporation's utilization |
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percentage is less than 25 percent, the next time the corporation |
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becomes eligible for a reservation of the state ceiling, the |
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maximum amount of the state ceiling that may be reserved for the |
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corporation is equal to the amount for which the corporation would |
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otherwise be eligible under Section 1372.026 multiplied by 25 |
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percent. |
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(f) A housing finance corporation may not be penalized under |
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Subsection (c) in a program year if, by December 31 of the preceding |
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program year, an amount equal to or less than 50 percent of the |
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aggregate state ceiling available for reservations by issuers of |
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qualified mortgage bonds under Section 1372.022(a)(1): |
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(1) has been used in connection with bond issues that |
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have closed on or before that date; or |
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(2) has had carryforward elections filed on or before |
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that date. |
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(g) An issuer that has carryforward available from the state |
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ceiling created by the Housing and Economic Recovery Act of 2008 |
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(Pub. L. No. 110-289) is not restricted by project limits for the |
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state ceiling. An issuer who uses the carryforward to issue |
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qualified mortgage bonds or mortgage credit certificates is not |
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subject to the utilization percentage calculation in determining |
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the amount of the issuer's reservation request. |
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SECTION 10. Subsection (b), Section 1372.028, Government |
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Code, is amended to read as follows: |
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(b) An issuer may apply for a reservation for a program year |
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not earlier than October 5 of the preceding year. An issuer may not |
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submit an application for a program year after November 15 |
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[December 1] of that year. |
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SECTION 11. Subsection (a), Section 1372.035, Government |
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Code, is amended to read as follows: |
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(a) The board may not grant a reservation of a portion of the |
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state ceiling for a program year before January 2 or after November |
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15 [December 1] of that year. |
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SECTION 12. Subsection (a), Section 1372.037, Government |
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Code, is amended to read as follows: |
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(a) Except as provided by Subsection (b), before August 15 |
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the board may not grant for any single project a reservation for |
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that year that is greater than: |
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(1) $40 [$25] million, if the issuer is an issuer of |
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qualified mortgage bonds, other than the Texas Department of |
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Housing and Community Affairs or the Texas State Affordable Housing |
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Corporation; |
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(2) $50 million, if the issuer is an issuer of a |
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state-voted issue, other than the Texas Higher Education |
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Coordinating Board, or $75 million, if the issuer is the Texas |
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Higher Education Coordinating Board; |
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(3) the amount to which the Internal Revenue Code |
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limits issuers of qualified small issue bonds and enterprise zone |
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facility bonds, if the issuer is an issuer of those bonds; |
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(4) the lesser of $20 [$15] million or 15 percent of |
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the amount set aside for reservation by issuers of qualified |
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residential rental project bonds, if the issuer is an issuer of |
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those bonds; |
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(5) the amount as prescribed in Sections 1372.033(d), |
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(e), and (f), if the issuer is an issuer authorized by Section |
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53B.47 [53.47], Education Code, to issue qualified student loan |
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bonds; or |
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(6) $50 million, if the issuer is any other issuer of |
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bonds that require an allocation. |
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SECTION 13. Section 1372.042, Government Code, is amended |
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by adding Subsection (e) to read as follows: |
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(e) In addition to any other fees required by this chapter, |
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an issuer shall submit to the board a nonrefundable fee in the |
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amount of $500 before receiving a carryforward designation under |
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Subsection (c). |
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SECTION 14. Subchapter B, Chapter 1372, Government Code, is |
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amended by adding Section 1372.045 to read as follows: |
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Sec. 1372.045. RESERVATION, ALLOCATION, AND CARRYFORWARD |
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DESIGNATION BY BOARD OF ADDITIONAL STATE CEILING. (a) The board |
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is authorized to establish and administer programs for the |
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reservation, allocation, and carryforward designation of |
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additional state ceiling in accordance with the federal law that |
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establishes the additional state ceiling and, to the extent |
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consistent with the federal law, as the board determines will |
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achieve the purposes for which the additional state ceiling is |
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authorized by federal law. |
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(b) The board may adopt rules and procedures the board |
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considers necessary to effectively administer programs authorized |
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under this section. |
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(c) The board may prescribe forms and applications as needed |
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to effectively implement and administer programs authorized under |
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this section. |
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(d) The board may adopt emergency rules in connection with |
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the programs authorized under this section when the board |
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determines that the emergency rules are necessary for the state to |
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obtain the full benefits of the additional state ceiling. |
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SECTION 15. Subchapter C, Chapter 1372, Government Code, is |
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amended by adding Section 1372.073 to read as follows: |
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Sec. 1372.073. DESIGNATION BY BOARD OF UNENCUMBERED STATE |
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CEILING. Notwithstanding any other provision of this chapter, the |
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board on the last business day of the year may assign as |
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carryforward to state agencies at their request and in the order |
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received any state ceiling that is not reserved or designated as |
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carryforward and for which no application for carryforward is |
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pending. |
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SECTION 16. Chapter 1372, Government Code, is amended by |
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adding Subchapter D to read as follows: |
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SUBCHAPTER D. ALLOCATION OF MISCELLANEOUS BOND CEILING |
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Sec. 1372.101. PROGRAM ADMINISTRATION. (a) The |
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applicable official may designate bonds as entitled to a portion of |
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a miscellaneous bond ceiling or allocate a portion of a |
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miscellaneous bond ceiling to an issuer of bonds: |
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(1) in accordance with the federal law that |
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establishes the federal subsidy for which the miscellaneous bond |
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ceiling is established; and |
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(2) to the extent consistent with the federal law, as |
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the applicable official determines will achieve the purposes for |
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which the federal subsidy is authorized by federal law. |
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(b) The board is authorized to administer programs |
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established by the applicable official for the allocation of a |
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miscellaneous bond ceiling or the designation of bonds entitled to |
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the federal subsidy limited by a miscellaneous bond ceiling. |
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Sec. 1372.102. RULES AND PROCEDURES. (a) Unless otherwise |
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provided by law, the board may adopt rules and procedures the board |
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considers necessary to effectively administer programs established |
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by the applicable official for allocation of a miscellaneous bond |
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ceiling or for designating bonds as entitled to the federal subsidy |
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limited by the miscellaneous bond ceiling. |
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(b) The board may adopt emergency rules in connection with |
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the programs described in Subsection (a) when the board determines |
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that the emergency rules are necessary for the state to obtain the |
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full benefits of the federal subsidy that is limited by the |
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miscellaneous bond ceiling. |
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(c) The board may prescribe forms and applications as needed |
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to effectively implement and administer programs described in |
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Subsection (a). |
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(d) This section does not prevent an applicable official |
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from adopting rules and procedures in connection with the |
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allocations and designations when required by federal or state law |
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or from administering a program independently of the board. |
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Sec. 1372.103. APPLICATION FEES. In connection with |
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programs established by the applicable official for the allocation |
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of a miscellaneous bond ceiling or the designation of bonds |
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entitled to the federal subsidy limited by a miscellaneous bond |
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ceiling, the board may charge an application fee for each |
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application it receives under this subchapter. |
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SECTION 17. Section 1372.0235, Government Code, is |
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repealed. |
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SECTION 18. Subsection (a), Section 2306.6703, Government |
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Code, is amended to read as follows: |
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(a) An application is ineligible for consideration under |
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the low income housing tax credit program if: |
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(1) at the time of application or at any time during |
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the two-year period preceding the date the application round |
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begins, the applicant or a related party is or has been: |
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(A) a member of the board; or |
|
(B) the director, a deputy director, the director |
|
of housing programs, the director of compliance, the director of |
|
underwriting, or the low income housing tax credit program manager |
|
employed by the department; |
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(2) the applicant proposes to replace in less than 15 |
|
years any private activity bond financing of the development |
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described by the application, unless: |
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(A) at least one-third of all the units in the |
|
development are public housing units or Section 8 project-based |
|
units and the applicant proposes to maintain for a period of 30 |
|
years or more 100 percent of the [development] units supported by |
|
housing tax credits as rent-restricted and exclusively for |
|
occupancy by individuals and families earning not more than 50 |
|
percent of the area median income, adjusted for family size[; and
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[(B)
at least one-third of all the units in the
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development are public housing units or Section 8 project-based
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units]; |
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(B) the applicable private activity bonds will be |
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redeemed only in an amount consistent with their proportionate |
|
amortization; or |
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(C) if the redemption of the applicable private |
|
activity bonds will occur in the first five years of the operation |
|
of the development and complies with Section 42(h)(4), Internal |
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Revenue Code of 1986: |
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(i) on the date the certificate of |
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reservation is issued, the Bond Review Board determines that there |
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is not a waiting list for private activity bonds in the same |
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priority level established under Section 1372.0321 or, if |
|
applicable, in the same uniform state service region, as referenced |
|
in Section 1372.0231, that is served by the proposed development; |
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and |
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(ii) the applicable private activity bonds |
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will be redeemed according to underwriting criteria, if any, |
|
established by the department; |
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(3) the applicant proposes to construct a new |
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development that is located one linear mile or less from a |
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development that: |
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(A) serves the same type of household as the new |
|
development, regardless of whether the developments serve |
|
families, elderly individuals, or another type of household; |
|
(B) has received an allocation of housing tax |
|
credits for new construction at any time during the three-year |
|
period preceding the date the application round begins; and |
|
(C) has not been withdrawn or terminated from the |
|
low income housing tax credit program; or |
|
(4) the development is located in a municipality or, |
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if located outside a municipality, a county that has more than twice |
|
the state average of units per capita supported by housing tax |
|
credits or private activity bonds, unless the applicant: |
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(A) has obtained prior approval of the |
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development from the governing body of the appropriate municipality |
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or county containing the development; and |
|
(B) has included in the application a written |
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statement of support from that governing body referencing this |
|
section and authorizing an allocation of housing tax credits for |
|
the development. |
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SECTION 19. (a) In this section, "additional state |
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ceiling," "applicable official," and "miscellaneous bond ceiling" |
|
have the meanings assigned by Section 1372.001, Government Code, as |
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amended by this Act. |
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(b) All reservations, allocations, and carryforward |
|
designations by the Bond Review Board of additional state ceiling |
|
authorized by Section 3021 of the Housing and Economic Recovery Act |
|
of 2008 (Pub. L. No. 110-289), and by applicable officials of |
|
miscellaneous bond ceiling authorized by the Heartland Disaster Tax |
|
Relief Act of 2008 (Pub. L. No. 110-343), regarding Hurricane Ike |
|
disaster area bonds, or by the American Recovery and Reinvestment |
|
Act of 2009 (Pub. L. No. 111-5), before the effective date of this |
|
Act are validated. |
|
(c) An issuer that has carryforward available from |
|
additional state ceiling authorized by the Housing and Economic |
|
Recovery Act of 2008 (Pub. L. No. 110-289) is not restricted by the |
|
project limits for the state ceiling established by Chapter 1372, |
|
Government Code. An issuer that uses the carryforward to issue |
|
qualified mortgage bonds or mortgage credit certificates is not |
|
subject to the utilization percentage calculation established by |
|
Chapter 1372, Government Code, in determining the amount of the |
|
issuer's reservation request. |
|
SECTION 20. This Act takes effect immediately if it |
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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, 2009. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 2064 passed the Senate on |
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May 7, 2009, by the following vote: Yeas 31, Nays 0; and that the |
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Senate concurred in House amendment on May 30, 2009, by the |
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following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 2064 passed the House, with |
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amendment, on May 27, 2009, by the following vote: Yeas 146, |
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Nays 2, one present not voting. |
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Chief Clerk of the House |
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Approved: |
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Date |
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Governor |