85R1532 JAM-D     By: Guerra H.B. No. 2352       A BILL TO BE ENTITLED   AN ACT   relating to the system by which an application for a low income   housing tax credit is scored.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 2306.6710(b), Government Code, is   amended to read as follows:          (b)  If an application satisfies the threshold criteria, the   department shall score and rank the application using a point   system that:                (1)  prioritizes in descending order criteria   regarding:                      (A)  financial feasibility of the development   based on the supporting financial data required in the application   that will include a project underwriting pro forma from the   permanent or construction lender;                      (B)  quantifiable community participation with   respect to the development, evaluated on the basis of a resolution   concerning the development that is voted on and adopted by the   following, as applicable:                            (i)  the governing body of a municipality in   which the proposed development site is to be located;                            (ii)  subject to Subparagraph (iii), the   commissioners court of a county in which the proposed development   site is to be located, if the proposed site is to be located in an   area of a county that is not part of a municipality; or                            (iii)  the commissioners court of a county   in which the proposed development site is to be located and the   governing body of the applicable municipality, if the proposed site   is to be located in the extraterritorial jurisdiction of a   municipality;                      (C)  the income levels of tenants of the   development;                      (D)  the size and quality of the units;                      (E)   the rent levels of the units;                      (F)  the cost of the development by square foot;                      (G)  the services to be provided to tenants of the   development;                      (H)  whether, at the time the complete application   is submitted or at any time within the two-year period preceding the   date of submission, the proposed development site is located in an   area declared to be a disaster under Section 418.014; and                      (I)  quantifiable community participation with   respect to the development, evaluated on the basis of written   statements from any neighborhood organizations on record with the   state or county in which the development is to be located and whose   boundaries contain the proposed development site; [and                      [(J)     the level of community support for the   application, evaluated on the basis of a written statement from the   state representative who represents the district containing the   proposed development site;]                (2)  uses criteria imposing penalties on applicants or   affiliates who have requested extensions of department deadlines   relating to developments supported by housing tax credit   allocations made in the application round preceding the current   round or a developer or principal of the applicant that has been   removed by the lender, equity provider, or limited partners for its   failure to perform its obligations under the loan documents or   limited partnership agreement; and                (3)  encourages applicants to provide free notary   public service to the residents of the developments for which the   allocation of housing tax credits is requested.          SECTION 2.  Section 2306.6718(b), Government Code, is   amended to read as follows:          (b)  The department shall provide the elected officials with   an opportunity to comment on the application during the application   evaluation process [provided by Section 2306.6710] and shall   consider those comments in evaluating applications [under that   section].          SECTION 3.  Section 2306.6710(f), Government Code, is   repealed.          SECTION 4.  The change in law made by this Act applies only   to an application for a low income housing tax credit filed on or   after the effective date of this Act. An application filed before   the effective date of this Act is governed by the law in effect on   the date the application was filed, and the former law is continued   in effect for that purpose.          SECTION 5.  This Act takes effect September 1, 2017.