85R6932 JAM-D     By: González of El Paso H.B. No. 2405       A BILL TO BE ENTITLED   AN ACT   relating to the allocation of low income housing tax credits to   developments in certain areas designated as rural.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 2306.6740, Government Code, is amended   to read as follows:          Sec. 2306.6740.  DESIGNATION OF CERTAIN AREAS AS RURAL.   (a)  The department by rule shall:                (1)  provide for the designation by the department of   an area located within the boundaries of a primary metropolitan   statistical area or a metropolitan statistical area as a rural area   under Section 2306.6702(a)(12)(B) for purposes of receiving   housing tax credits administered by the department under this   subchapter; and                (2)  designate the site of a proposed or existing   development as a rural area under Section 2306.6702(a)(12)(B) for   purposes of receiving housing tax credits allocated by the   department under Sections 2306.111(d-2) and (d-3) if the   development, before September 1, 2013, has been awarded or has   received financial assistance under Section 514, 515, or 516 of the   Housing Act of 1949 (42 U.S.C. Section 1484, 1485, or 1486).          (b)  Rules adopted under this section must:                (1)  provide procedures by which a political   subdivision or a census-designated place may apply for a rural   designation under Subsection (a)(1);                (2)  provide guidelines for designating an area as   rural under Subsection (a)(1), including specifying:                      (A)  conditions under which a rural designation is   not appropriate, including the proximity of the area to or the   presence of major amenities commonly associated with urban or   suburban areas; and                      (B)  conditions under which a rural designation is   appropriate, including areas with low population density, the   proximity of the area to or the absence of major amenities commonly   associated with urban or suburban areas, a high level of   undeveloped land, a significant presence of unimproved roads, or   significant agricultural activity; and                (3)  ensure that any housing tax credits allocated to a   designated rural area described by Subsection (a)(1) or (2) comply   with applicable federal requirements regarding that assistance.          (c)  The department shall remove a rural area designation   under this section on receipt of a request submitted on behalf of   the affected political subdivision, census-designated place, or   development site, as applicable.          SECTION 2.  Section 2306.111(d-4), Government Code, is   repealed.          SECTION 3.  As soon as practicable after the effective date   of this Act, the Texas Department of Housing and Community Affairs   shall adopt rules to implement the changes in law made by this Act.          SECTION 4.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2017.