89S10186 JAM-D     By: Dorazio H.B. No. 280       A BILL TO BE ENTITLED   AN ACT   relating to a prohibition on the allocation of low income housing   tax credits for developments located in certain school districts.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 2306.6703(a), Government Code, is   amended to read as follows:          (a)  An application is ineligible for consideration under   the low income housing tax credit program if:                (1)  at the time of application or at any time during   the two-year period preceding the date the application round   begins, the applicant or a related party is or has been:                      (A)  a member of the board; or                      (B)  the director, a deputy director, the director   of housing programs, the director of compliance, the director of   underwriting, or the low income housing tax credit program manager   employed by the department;                (2)  the applicant proposes to replace in less than 15   years any private activity bond financing of the development   described by the application, unless:                      (A)  at least one-third of all the units in the   development are public housing units or Section 8 project-based   units and the applicant proposes to maintain for a period of 30   years or more 100 percent of the units supported by housing tax   credits as rent-restricted and exclusively for occupancy by   individuals and families earning not more than 50 percent of the   area median income, adjusted for family size;                      (B)  the applicable private activity bonds will be   redeemed only in an amount consistent with their proportionate   amortization; or                      (C)  if the redemption of the applicable private   activity bonds will occur in the first five years of the operation   of the development and complies with Section 42(h)(4), Internal   Revenue Code of 1986:                            (i)  on the date the certificate of   reservation is issued, the Bond Review Board determines that there   is not a waiting list for private activity bonds in the same   priority level established under Section 1372.0321 or, if   applicable, in the same uniform state service region, as referenced   in Section 1372.0231, that is served by the proposed development;   and                            (ii)  the applicable private activity bonds   will be redeemed according to underwriting criteria, if any,   established by the department;                (3)  the applicant proposes to construct a new   development that is located one linear mile or less from a   development that:                      (A)  serves the same type of household as the new   development, regardless of whether the developments serve   families, elderly individuals, or another type of household;                      (B)  has received an allocation of housing tax   credits for new construction at any time during the three-year   period preceding the date the application round begins; and                      (C)  has not been withdrawn or terminated from the   low income housing tax credit program; [or]                (4)  the development is located in a municipality or,   if located outside a municipality, a county that has more than twice   the state average of units per capita supported by housing tax   credits or private activity bonds, unless the applicant:                      (A)  has obtained prior approval of the   development from the governing body of the appropriate municipality   or county containing the development; and                      (B)  has included in the application a written   statement of support from that governing body referencing this   section and authorizing an allocation of housing tax credits for   the development; or                (5)  the development is located in a school district to   which Section 48.257(a), Education Code, applied at any time during   the five-year period preceding the date the application round   begins.          SECTION 2.  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 3.  This Act takes effect on the 91st day after the   last day of the legislative session.