87R2198 JAM-D     By: Zaffirini S.B. No. 1144       A BILL TO BE ENTITLED   AN ACT   relating to the requirements for an application for a low income   housing tax credit allocation from the nonprofit set-aside.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 2306.6706(a), Government Code, is   amended to read as follows:          (a)  In addition to the information required by Section   2306.6705, an application for a housing tax credit allocation from   the nonprofit set-aside, as defined by Section 42(h)(5), Internal   Revenue Code of 1986 (26 U.S.C. Section 42(h)(5)), must contain the   following written, detailed information with respect to each   development owner and each general partner of a development owner:                (1)  Internal Revenue Service documentation of   designation as a Section 501(c)(3) or 501(c)(4) organization;                (2)  evidence that one of the exempt purposes of the   nonprofit organization is to provide low income housing;                (3)  a description of the nonprofit organization's   participation in the construction or rehabilitation of the   development and in the ongoing operations of the development;                (4)  evidence that the nonprofit organization   prohibits a member of its board of directors, other than a chief   staff member serving concurrently as a member of the board, from   receiving material compensation for service on the board;                (5)  a third-party legal opinion stating that the   nonprofit organization is not affiliated with or controlled by a   for-profit organization and the basis for that opinion;                (6)  a copy of the nonprofit organization's most recent   audited financial statement;                (7)  a list of the names [and home addresses] of members   of the board of directors of the nonprofit organization; and                (8)  a third-party legal opinion stating that the   nonprofit organization is eligible under Subsection (b) for a   housing tax credit allocation from the nonprofit set-aside and the   basis for that opinion[; and                [(9)  evidence that a majority of the members of the   nonprofit organization's board of directors principally reside:                      [(A)  in this state, if the development is located   in a rural area; or                      [(B)  not more than 90 miles from the development   in the community in which the development is located, if the   development is not located in a rural area].          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 2022 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 September 1, 2021.