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AN ACT
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relating to the eligibility of certain at-risk developments to |
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receive low income housing tax credits. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2306.6702(a)(5), Government Code, is |
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amended to read as follows: |
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(5) "At-risk development" means: |
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(A) a development that: |
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(i) has received the benefit of a subsidy in |
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the form of a below-market interest rate loan, interest rate |
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reduction, rental subsidy, Section 8 housing assistance payment, |
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rental supplement payment, rental assistance payment, or equity |
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incentive under the following federal laws, as applicable: |
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(a) Sections 221(d)(3) and (5), |
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National Housing Act (12 U.S.C. Section 1715l); |
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(b) Section 236, National Housing Act |
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(12 U.S.C. Section 1715z-1); |
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(c) Section 202, Housing Act of 1959 |
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(12 U.S.C. Section 1701q); |
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(d) Section 101, Housing and Urban |
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Development Act of 1965 (12 U.S.C. Section 1701s); |
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(e) the Section 8 Additional |
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Assistance Program for housing developments with HUD-Insured and |
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HUD-Held Mortgages administered by the United States Department of |
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Housing and Urban Development as specified by 24 C.F.R. Part 886, |
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Subpart A; |
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(f) the Section 8 Housing Assistance |
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Program for the Disposition of HUD-Owned Projects administered by |
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the United States Department of Housing and Urban Development as |
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specified by 24 C.F.R. Part 886, Subpart C; |
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(g) Sections 514, 515, and 516, |
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Housing Act of 1949 (42 U.S.C. Sections 1484, 1485, and 1486); or |
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(h) Section 42, Internal Revenue Code |
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of 1986 [(26 U.S.C. Section 42)]; and |
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(ii) is subject to the following |
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conditions: |
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(a) the stipulation to maintain |
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affordability in the contract granting the subsidy is nearing |
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expiration; or |
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(b) the HUD-insured or HUD-held |
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mortgage on the development is eligible for prepayment or is |
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nearing the end of its term; or |
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(B) a development that proposes to rehabilitate |
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or reconstruct housing units that: |
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(i) [are owned by a public housing
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authority and] receive assistance under Section 9, United States |
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Housing Act of 1937 (42 U.S.C. Section 1437g) and are owned by: |
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(a) a public housing authority; or |
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(b) a public facility corporation |
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created by a public housing authority under Chapter 303, Local |
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Government Code; |
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(ii) received assistance under Section 9, |
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United States Housing Act of 1937 (42 U.S.C. Section 1437g) and: |
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(a) are proposed to be disposed of or |
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demolished by a public housing authority or a public facility |
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corporation created by a public housing authority under Chapter |
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303, Local Government Code; or |
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(b) have been disposed of or |
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demolished by a public housing authority or a public facility |
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corporation created by a public housing authority under Chapter |
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303, Local Government Code, in the two-year period preceding the |
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application for housing tax credits; or |
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(iii) receive assistance or will receive |
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assistance through the Rental Assistance Demonstration program |
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administered by the United States Department of Housing and Urban |
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Development as specified by the Consolidated and Further Continuing |
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Appropriations Act, [of] 2012 (Pub. L. No. 112-55) and its |
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subsequent amendments, if the application for assistance through |
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the Rental Assistance Demonstration program is included in the |
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applicable public housing [authority's annual] plan that was most |
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recently approved by the United States Department of Housing and |
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Urban Development as specified by 24 C.F.R. Section 903.23. |
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SECTION 2. Section 2306.6714, Government Code, is amended |
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by adding Subsection (a-2) to read as follows: |
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(a-2) Notwithstanding any other provision of law, an |
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at-risk development described by Section 2306.6702(a)(5)(B) that |
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was previously allocated housing tax credits set aside under |
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Subsection (a) does not lose eligibility for those credits if the |
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portion of units reserved for public housing as a condition of |
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eligibility for the credits under Subsection (a-1)(2) are later |
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converted under the Rental Assistance Demonstration program |
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administered by the United States Department of Housing and Urban |
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Development as specified by the Consolidated and Further Continuing |
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Appropriations Act, 2012 (Pub. L. No. 112-55) and its subsequent |
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amendments. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2017. |
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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. 1238 passed the Senate on |
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April 19, 2017, by the following vote: Yeas 28, Nays 3. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1238 passed the House on |
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May 19, 2017, by the following vote: Yeas 133, Nays 11, two |
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |