H.B. No. 1888
 
 
 
 
AN ACT
  relating to low income housing tax credits awarded to at-risk
  developments.
         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) [(A)]  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) [(i)]  Sections 221(d)(3) and (5),
  National Housing Act (12 U.S.C. Section 1715l);
                                 (b) [(ii)]  Section 236, National
  Housing Act (12 U.S.C. Section 1715z-1);
                                 (c) [(iii)]  Section 202, Housing Act
  of 1959 (12 U.S.C. Section 1701q);
                                 (d) [(iv)]  Section 101, Housing and
  Urban Development Act of 1965 (12 U.S.C. Section 1701s);
                                 (e) [(v)]  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) [(vi)]  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) [(vii)]  Sections 514, 515, and
  516, Housing Act of 1949 (42 U.S.C. Sections 1484, 1485, and 1486);
  or
                                 (h) [(viii)]  Section 42, Internal
  Revenue Code of 1986 (26 U.S.C. Section 42); and
                           (ii) [(B)]  is subject to the following
  conditions:
                                 (a) [(i)]  the stipulation to maintain
  affordability in the contract granting the subsidy is nearing
  expiration; or
                                 (b) [(ii)]  the federally insured
  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); or
                           (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
                                 (b)  have been disposed of or
  demolished by a public housing authority in the two-year period
  preceding the application for housing tax credits.
         SECTION 2.  Section 2306.6714, Government Code, is amended
  by amending Subsection (a) and adding Subsection (a-1) to read as
  follows:
         (a)  The department shall set aside for eligible at-risk
  developments not less than 15 percent of the housing tax credits
  available for allocation in the calendar year.
         (a-1)  An at-risk development described by Section
  2306.6702(a)(5)(B) is eligible for housing tax credits set aside
  under Subsection (a) if:
               (1)  a portion of the public housing operating subsidy
  received from the department is retained for the development; and
               (2)  a portion of the units of the development are
  reserved for public housing as specified in the qualified housing
  plan.
         SECTION 3.  The changes in law made by this Act apply only to
  an application for low income housing tax credits that is submitted
  on or after the effective date of this Act.  An application for low
  income housing tax credits that is submitted before the effective
  date of this Act is governed by the law in effect when the
  application was submitted, and the former law is continued in
  effect for that purpose.
         SECTION 4.  This Act takes effect September 1, 2013.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1888 was passed by the House on May 2,
  2013, by the following vote:  Yeas 139, Nays 8, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 1888 on May 22, 2013, by the following vote:  Yeas 77, Nays 51,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 1888 was passed by the Senate, with
  amendments, on May 20, 2013, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor