89R3399 DNC-F     By: Hughes S.B. No. 1836       A BILL TO BE ENTITLED   AN ACT   relating to the evaluation of applications for certain financial   assistance administered by the Texas Department of Housing and   Community Affairs.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 2306.359(a), Government Code, is amended   to read as follows:          (a)  In evaluating an application for an issuance of private   activity bonds, the department shall score and rank the application   using a point system based on criteria that are adopted by the   department, including criteria regarding:                (1)  the income levels of tenants of the development,   consistent with the funding priorities provided by Section   1372.0321;                (2)  the rent levels of the units;                (3)  the level of community support for the   application;                (4)  the period of guaranteed affordability for low   income tenants;                (5)  the cost per unit of the development;                (6)  the size, quality, and amenities of the units;                (7)  the services to be provided to tenants of the   development; [and]                (8)  whether, at the time the complete application is   submitted, all units that are:                      (A)  owned by the applicant are equipped with air   conditioning; and                      (B)  owned or operated by a housing authority or   other governmental entity, from which the applicant receives   financial assistance or with which the applicant participates in   projects for the development of affordable housing, are equipped   with air conditioning; and                (9)  other criteria as developed by the board.          SECTION 2.  Section 2306.6710, Government Code, is amended   by amending Subsection (b) and adding Subsections (h) and (i) 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;                      (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; and                      (K)  whether, at the time the complete application   is submitted, all units that are:                            (i)  owned by the applicant are equipped   with air conditioning; and                            (ii)  owned or operated by a housing   authority or other governmental entity, from which the applicant   receives financial assistance or with which the applicant   participates in projects for the development of affordable housing,   are equipped with air conditioning;                (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;                (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; and                (4)  for an application concerning a development that   is or will be located in a county with a population of 1.2 million or   more but less than 4 million and that is or will be located not more   than two miles from a veterans hospital, veterans affairs medical   center, or veterans affairs health care center, encourages   applicants to provide a preference for leasing units in the   development to low income veterans.          (h)  If an applicant requests in writing a statement of   support under Subsection (b)(1)(J) from the state representative   who represents the district containing the proposed development   site, the request from the applicant must include information   disclosing the percentage of units owned or operated as described   by Subsection (b)(1)(K) that are equipped with air conditioning.          (i)  In assigning points to an application under Subsection   (b)(1)(K), the department shall award negative points if any of the   units that are owned or operated as described by that paragraph are   not equipped with air conditioning.          SECTION 3.  The change in law made by this Act applies only   to an application for low income housing tax credits that is   submitted to the Texas Department of Housing and Community Affairs   during an application cycle that is based on the 2026 qualified   allocation plan or a subsequent plan adopted by the governing board   of the department under Section 2306.67022, Government Code. An   application that is submitted during an application cycle that is   based on an earlier qualified allocation plan is governed by the law   in effect on the date the application cycle began, and the former   law is continued in effect for that purpose.          SECTION 4.  This Act takes effect September 1, 2025.