S.B. No. 659
 
 
 
 
AN ACT
  relating to compliance with certain requirements of programs
  administered by the Texas Department of Housing and Community
  Affairs.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2306.6721, Government Code, is
  transferred to Subchapter B, Chapter 2306, Government Code,
  redesignated as Section 2306.0504, Government Code, and amended to
  read as follows:
         Sec. 2306.0504 [2306.6721].  DEBARMENT FROM PROGRAM
  PARTICIPATION. (a)  The department shall develop, and the board by
  rule shall adopt, a policy providing for the debarment of a person
  from participation in programs administered by the department [the
  low income housing tax credit program as described by this
  section].
         (b)  The department may debar a person from participation in
  a department [the] program on the basis of the person's past failure
  to comply with any condition imposed by the department in the
  administration of its programs [connection with the allocation of
  housing tax credits].
         (c)  The department shall debar a person from participation
  in a department [the] program if the person:
               (1)  materially or repeatedly violates any condition
  imposed by the department in connection with the administration of
  a department program, including a material or repeated violation of
  a land use restriction agreement regarding a development supported
  with a [allocation of] housing tax credit allocation [credits]; or
               (2)  is debarred from participation in federal housing
  programs by the United States Department of Housing and Urban
  Development[; or
               [(3)     is in material noncompliance with or has
  repeatedly violated a land use restriction agreement regarding a
  development supported with a housing tax credit allocation].
         (d)  A person debarred by the department from participation
  in a department [the] program may appeal the person's debarment to
  the board.
         SECTION 2.  Subsection (a), Section 2306.6717, Government
  Code, is amended to read as follows:
         (a)  Subject to Section 2306.67041, the department shall
  make the following items available on the department's website:
               (1)  as soon as practicable, any proposed application
  submitted through the preapplication process established by this
  subchapter;
               (2)  before the 30th day preceding the date of the
  relevant board allocation decision, except as provided by
  Subdivision (3), the entire application, including all supporting
  documents and exhibits, the application log, a scoring sheet
  providing details of the application score, and any other document
  relating to the processing of the application;
               (3)  not later than the third working day after the date
  of the relevant determination, the results of each stage of the
  application process, including the results of the application
  scoring and underwriting phases and the allocation phase;
               (4)  before the 15th day preceding the date of board
  action on the amendment, notice of an amendment under Section
  2306.6712 and the recommendation of the director and monitor
  regarding the amendment; and
               (5)  an appeal filed with the department or board under
  Section 2306.0504 or 2306.6715 [or 2306.6721] and any other
  document relating to the processing of the appeal.
         SECTION 3.  Section 2306.6719, Government Code, is amended
  by adding Subsections (c), (d), (e), and (f) to read as follows:
         (c)  For a violation other than a violation that poses an
  imminent hazard or threat to health and safety, the department must
  provide the owner of a development with the following periods to
  correct a failure to comply with a condition or law described by
  Subsection (a)(1) or (2):
               (1)  30 days for a failure to file the annual owner's
  compliance report; and
               (2)  90 days for any other failure to comply under this
  section.
         (d)  For good cause shown, the executive director may extend
  the periods provided under Subsection (c).
         (e)  For purposes of determining eligibility to apply for and
  receive financial assistance from the department, a development may
  not be considered to be in noncompliance with an applicable
  condition or law if the owner of the development takes appropriate
  corrective action during the period provided under Subsection (c).
         (f)  Notwithstanding Subsection (e), the department shall:
               (1)  submit to the applicable federal agency any report
  required by federal law regarding an owner's noncompliance with a
  condition or law described by Subsection (a)(1) or (2); and
               (2)  for purposes of developing and administering the
  policy relating to debarment under Section 2306.0504, consider
  recurring violations of a condition or law described by Subsection
  (a)(1) or (2), including violations that are corrected during the
  applicable period provided under Subsection (c).
         SECTION 4.  This Act takes effect September 1, 2013.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 659 passed the Senate on
  April 25, 2013, by the following vote:  Yeas 30, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 659 passed the House on
  May 22, 2013, by the following vote:  Yeas 145, Nays 3, two
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor