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