BILL ANALYSIS |
C.S.S.B. 1316 |
By: Watson |
Urban Affairs |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
Interested parties note that applications for low income housing tax credits are ranked based on scores and that points are given, in part, for development funding committed by local political subdivisions. The parties contend that such committed funding is not needed by a developer because the tax credits raise enough capital independent of the funding and that the political subdivisions could use the funding for other projects that actually need the funding to provide more affordable housing. C.S.S.B. 1316 seeks to address this issue.
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CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
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RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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ANALYSIS
C.S.S.B. 1316 amends the Government Code to remove from the criteria the Texas Department of Housing and Community Affairs (TDHCA) must use for scoring and ranking an application for a low income housing tax credit that satisfies the required threshold criteria the commitment of development funding by local political subdivisions. The bill includes criteria addressing the ability of the proposed project to demonstrate support from local political subdivisions based on the subdivisions' commitment of development funding and to rehabilitate or perform an adaptive reuse of a historic building as part of the development among the criteria which are the basis for the point system TDHCA uses to score each low income housing tax credit application for the purpose of allocating those tax credits. The bill prohibits TDHCA from awarding points for the rehabilitation or the adaptive reuse of a historic building to more than two projects in the same application cycle.
C.S.S.B. 1316 adds a temporary provision, set to expire September 1, 2019, requiring TDHCA, in establishing for the 2016 and 2017 qualified allocation plans the scoring criterion related to the commitment of development funding by local political subdivisions, to significantly reduce for each place regardless of population the amount in funding, per low income unit, that is required for a proposed project to receive the applicable number of points for that criterion and authorizing the amount of required funding, after the reduction, to be a de minimis amount.
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EFFECTIVE DATE
September 1, 2015.
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COMPARISON OF SENATE ENGROSSED AND SUBSTITUTE
While C.S.S.B. 1316 may differ from the engrossed in minor or nonsubstantive ways, the following comparison is organized and formatted in a manner that indicates the substantial differences between the engrossed and committee substitute versions of the bill.
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