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A BILL TO BE ENTITLED
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AN ACT
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relating to low income housing tax credits awarded for proposed |
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developments in targeted areas for revitalization. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2306.111(d-1), Government, is amended to |
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read as follows: |
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(d-1) In allocating low income housing tax credit |
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commitments under Subchapter DD, the department shall before |
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applying the regional allocation formula prescribed by Section |
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2306.1115, set aside for at-risk developments, as defined by |
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section 2306.6702, not less than the minimum amount of housing tax |
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credits required under Section 2306.6714 and revitalization |
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developments , as defined by section 2306.6702, not less than the |
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minimum amount of housing tax credits required under Section |
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2306.67141. Funds or credits are not required to be allocated |
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according to the regional allocation formula under Subsection (d) |
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if: |
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(1) the funds or credits are reserved for |
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contract-for-deed conversions or for set-asides mandated by state |
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or federal law and each contract-for-deed allocation or set-aside |
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allocation equals not more than 10 percent of the total allocation |
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of funds or credits for the applicable program; |
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(2) the funds or credits are allocated by the |
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department primarily to serve persons with disabilities; or |
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(3) the funds are housing trust funds administered by |
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the department under Sections 2306.201-2306.206 that are not |
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otherwise required to be set aside under state or federal law and do |
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not exceed $3 million for each programmed activity during each |
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application cycle. |
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SECTION 2. Subchapter DD, Section 2306.6702(a), Government |
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Code is amended by adding Subdivision (14-a) to read as follows: |
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(14-a) "Revitalization Development" means a development |
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that has received a resolution designating it as a Revitalization |
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Development from the municipality in which the development is |
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located and a commitment from the municipality in which the |
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development is located to expend municipal funds on the development |
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and is located in: |
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(1) an area for which the municipality has adopted a |
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plan to revitalize the area including a strategy to address blight |
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and vacant lots, |
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(2) an area in which the municipality has made |
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investment to construct new infrastructure or public buildings, and |
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(3) a census tract that has a: |
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(A) poverty rate above 15 percent; and |
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(B) medium household income equal to or less than |
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60 percent of the median household income for the municipality in |
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which the tract is located |
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SECTION 3. Subchapter DD, Chapter 2306, Government Code is |
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amended by adding Section 2306.67141 to read as follows: |
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Sec. 2306.67141. REVITALIZATION DEVELOPMENT SET ASIDE. |
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(a) To the maximum extent allowable under federal law, the |
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department shall set aside for eligible revitalization |
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developments not less than 10 percent of the housing tax credits |
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available for allocation in the calendar year. |
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(b) Any amount of housing tax credits set aside under this |
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section that remains after the initial allocation of housing tax |
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credit is available for allocation to any eligible applicant as |
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provided by the qualified allocation plan. |
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SECTION 4. Subchapter DD, Section 2306.6725, Government |
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Code, is amended by adding subsection (e) to read as follows: |
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(e) On awarding tax credit allocations for at-risk |
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developments and revitalization developments as defined in |
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2306.6702 the department shall not consider: |
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(1) the poverty rate or area median income for the |
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census tract in which the development is located, or |
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(2) the amount of blight within 3 miles of the |
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development. |
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SECTION 5. The change in law made by this Act applies only |
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to the allocation of low income housing tax credits for an |
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application cycle that begins on or after January 1, 2017. The |
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allocation of low income housing tax credits for an application |
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cycle that begins before January 1, 2017, is governed by the law in |
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effect on the date the application cycle began, and the former law |
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is continued in effect for that purpose. |
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SECTION 6. This Act takes effect September 1, 2015. |