Relating to the requirements for applications for low income housing tax credits for developments financed through the private activity bond program.

89(R) HB 293 - House Committee Report version - Bill Text

89R66 JAM-D

By: Swanson, Harless, Schofield, Hull,

H.B. No. 293

et al.

A BILL TO BE ENTITLED

AN ACT

relating to the requirements for applications for low income

housing tax credits for developments financed through the private

activity bond program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading to Section 2306.67071, Government

Code, is amended to read as follows:

Sec. 2306.67071. ADDITIONAL APPLICATION REQUIREMENT:

DEVELOPMENTS FINANCED THROUGH PRIVATE ACTIVITY BOND PROGRAM

[
NOTICE, HEARING, AND RESOLUTION BY CERTAIN GOVERNING BODIES
].

SECTION 2. Section 2306.67071, Government Code, is amended

by amending Subsections (a) and (d) and adding Subsection (c-1) to

read as follows:

(a) Before submitting to the department an application for

housing tax credits for developments financed through the private

activity bond program, including private activity bonds issued by

the department, the Texas State Affordable Housing Corporation, or

a local issuer, an applicant must provide notice of the intent to

file the application
:

(1)
to
the state representative who represents the

district containing the proposed development site; and

(2) to
:

(A)
[
(1)
] the governing body of a municipality in

which the proposed development site is to be located;

(B)
[
(2)
] subject to
Paragraph (C)
[
Subdivision

(3)
], 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

(C)
[
(3)
] 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-1)

Regardless of whether the applicant has complied with

Subsection (c), the board may not approve an application for

housing tax credits for a development financed through the private

activity bond program if the state representative who represents

the district containing the proposed development site submits to

the department a letter opposing the development.

(d) The department by rule may provide for the time and

manner of the submission to the department of a resolution required

by Subsection (c)
or a letter described by Subsection (c-1)
.

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. 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 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, 2025.