HB1342 - Relating to the issuance of private activity bonds for qualified residential rental projects.

  89R3702 JAM-F     By: Gervin-Hawkins H.B. No. 1342       A BILL TO BE ENTITLED   AN ACT   relating to the issuance of private activity bonds for qualified   residential rental projects.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 1372.0321, Government Code, is amended   by adding Subsections (a-1) and (a-2) and amending Subsections (b),   (c), and (d) to read as follows:           (a-1)     In granting reservations to issuers of qualified   residential rental project issues, the board shall give second   priority to projects:                 (1)  for which an application:                       (A)     was filed on or before October 20 of the   program year occurring two years before the current program year;   and                         (B)     was not withdrawn and did not receive a bond   reservation;                 (2)     that meet at least one requirement of Subsection   (b); and                 (3)  for which:                       (A)     a binding contract to incur significant   expenditures for construction, reconstruction, or rehabilitation   was entered into before submission of the application;                       (B)     significant expenditures for construction,   reconstruction, or rehabilitation were readily identifiable with   and necessary to carry out a binding contract for the supply of   property or services or the sale of output; or                       (C)     significant expenditures were paid or   incurred before submission of the application.           (a-2)     For purposes of Subsection (a-1), "significant   expenditures" means expenditures that exceed the lesser of:                 (1)  $500,000; or                 (2)     10 percent of the reasonably anticipated cost of   the project.          (b)  In granting reservations to issuers of qualified   residential rental project issues, the board shall give third   [ second ] priority to:                (1)  projects in which:                      (A)  50 percent of the residential units in the   project are:                            (i)  under the restriction that the maximum   allowable rents are an amount equal to 30 percent of 50 percent of   the area median family income minus an allowance for utility costs   authorized under the federal low-income housing tax credit program;   and                            (ii)  reserved for families and individuals   earning not more than 50 percent of the area median income; and                      (B)  the remaining 50 percent of the residential   units in the project are:                            (i)  under the restriction that the maximum   allowable rents are an amount equal to 30 percent of 80 [ 60 ] percent   of the area median family income minus an allowance for utility   costs authorized under the federal low-income housing tax credit   program; and                            (ii)  reserved for families and individuals   earning not more than 80 [ 60 ] percent of the area median income;                (2)  projects in which:                      (A)  15 percent of the residential units in the   project are:                            (i)  under the restriction that the maximum   allowable rents are an amount equal to 30 percent of 30 percent of   the area median family income minus an allowance for utility costs   authorized under the federal low-income housing tax credit program;   and                            (ii)  reserved for families and individuals   earning not more than 30 percent of the area median income; and                      (B)  the remaining 85 percent of the residential   units in the project are:                            (i)  under the restriction that the maximum   allowable rents are an amount equal to 30 percent of 80 [ 60 ] percent   of the area median family income minus an allowance for utility   costs authorized under the federal low-income housing tax credit   program; and                            (ii)  reserved for families and individuals   earning not more than 80 [ 60 ] percent of the area median income;                (3)  projects:                      (A)  in which 100 percent of the residential units   in the project are:                            (i)  under the restriction that the maximum   allowable rents are , on average, an amount equal to 30 percent of 60   percent of the area median family income minus an allowance for   utility costs authorized under the federal low-income housing tax   credit program; and                            (ii)  reserved for families and individuals   earning , on average, not more than 60 percent of the area median   income; and                      (B)  which are located in a census tract in which   the median income, based on the most recent information published   by the United States Bureau of the Census, is higher than the median   income for the county, metropolitan statistical area, or primary   metropolitan statistical area in which the census tract is located   as established by the United States Department of Housing and Urban   Development; or                (4)  on or after June 1, projects that are located in   counties, metropolitan statistical areas, or primary metropolitan   statistical areas with area median family incomes at or below the   statewide median family income established by the United States   Department of Housing and Urban Development.          (c)  In granting reservations to issuers of qualified   residential rental project issues, the board shall give fourth   [ third ] priority to projects in which 80 percent or more of the   residential units in the project are:                (1)  under the restriction that the maximum allowable   rents are , on average, an amount equal to 30 percent of 60 percent   of the area median family income minus an allowance for utility   costs authorized under the federal low-income housing tax credit   program; and                (2)  reserved for families and individuals earning , on   average, not more than 60 percent of the area median income.          (d)  In granting reservations to issuers of qualified   residential rental project issues, the board shall give fifth   [ fourth ] priority to any other qualified residential rental   project.          SECTION 2.  Section 1372.042(d), Government Code, is amended   to read as follows:          (d)  Not later than the fifth business day after the date on   which the bonds are closed, the issuer shall submit to the board:                (1)  a written notice stating the delivery date of the   bonds and the principal amount of the bonds issued; and                (2)  [ if the project is a project entitled to first,   second, or third priority under Section 1372.0321, evidence from   the Texas Department of Housing and Community Affairs that an award   of low-income housing tax credits has been approved for the   project; and                [ (3) ]  a certified copy of the document authorizing the   bonds and any other document relating to the issuance of the bonds,   including a statement of the bonds':                      (A)  principal amount;                      (B)  interest rate or formula by which the   interest rate is computed;                      (C)  maturity schedule; and                      (D)  purchaser or purchasers.          SECTION 3.  Section 1372.0321(e), Government Code, is   repealed.          SECTION 4.  The change in law made by this Act in amending   Chapter 1372, Government Code, applies to the allocation of the   available state ceiling under Chapter 1372 beginning with the 2026   program year.          SECTION 5.  This Act takes effect September 1, 2025.