Sec. 2306.6711. ALLOCATION OF HOUSING TAX CREDITS. (a) The director shall provide the application scores to the board before the 30th day preceding the date the board begins to issue commitments for housing tax credits in the allocation round.
(b) Not later than the deadline specified in the qualified allocation plan, the board shall issue commitments for available housing tax credits based on the application evaluation process provided by Section 2306.6710. The board may not allocate to an applicant housing tax credits in any unnecessary amount, as determined by the department's underwriting policy and by federal law, and in any event may not allocate to the applicant housing tax credits in an amount greater than $3 million in a single application round or to an individual development more than $2 million in a single application round.
(c) Concurrently with the initial issuance of commitments for housing tax credits under Subsection (b), the board shall establish a waiting list of additional applications ranked by score in descending order of priority based on set-aside categories and regional allocation goals.
(d) The board shall issue commitments for housing tax credits with respect to applications on the waiting list as additional credits become available.
(e) Not later than the 120th day after the date of the initial issuance of commitments for housing tax credits under Subsection (b), the department shall provide to an applicant who did not receive a commitment under that subsection an opportunity to meet and discuss with the department the application's deficiencies and scoring.
(f) Except as provided by Subsection (f-1), the board may allocate housing tax credits to more than one development in a single community, as defined by department rule, in the same calendar year only if the developments are or will be located more than two linear miles apart. This subsection applies only to communities contained within counties with populations exceeding one million.
(f-1) The board may allocate housing tax credits to more than one development in a single community only if:
(1) the community is located in:
(A) a municipality with a population of two million or more; and
(B) an area that is a federally declared disaster area; and
(2) the governing body of the municipality containing the development:
(A) has by vote specifically authorized the allocation of housing tax credits for the development; and
(B) is authorized to administer disaster recovery funds as a subgrant recipient.
(g) Except as necessary to comply with the nonprofit set-aside required by Section 42(h)(5), Internal Revenue Code of 1986 (26 U.S.C. Section 42(h)(5)), in an urban subregion of a uniform state service region that contains a county with a population of more than 1.7 million, the board shall allocate housing tax credits to the highest scoring development, if any, that is part of a concerted plan of revitalization and is located in that urban subregion in a municipality with a population of 500,000 or more.
(h) Notwithstanding Section 2306.6710(d), and except as necessary to comply with the nonprofit set-aside required by Section 42(h)(5), Internal Revenue Code of 1986 (26 U.S.C. Section 42(h)(5)), the board may not allocate to developments reserved for elderly persons and located in an urban subregion of a uniform state service region a percentage of the available housing tax credits allocated to developments located in that subregion that is greater than the percentage that results from the following formula, unless there are no other qualified applicants in that region:
MP = [(LEH - ERU)/(TLH - TEU)] X 100
where:
"MP" is the maximum percentage of the available housing tax credits allocated to developments in the subregion that may be allocated to developments reserved for elderly persons;
"LEH" is the number of low income elderly households in the subregion;
"ERU" is the number of existing units reserved for elderly persons in developments located in the subregion that already receive housing tax credits;
"TLH" is the total number of low income households in the subregion; and
"TEU" is the total number of existing units in developments located in the subregion that already receive housing tax credits.
(i) Subsection (h) applies only to a uniform state service region that contains a county with a population of more than one million.
Added by Acts 2001, 77th Leg., ch. 1367, Sec. 8.01, eff. Sept. 1, 2001. Amended by Acts 2003, 78th Leg., ch. 330, Sec. 23, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1106, Sec. 2, eff. Sept. 1, 2003.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 74.04, eff. September 28, 2011.
Acts 2015, 84th Leg., R.S., Ch. 976 (H.B. 3535), Sec. 1, eff. September 1, 2015.
Acts 2015, 84th Leg., R.S., Ch. 1111 (H.B. 3311), Sec. 2, eff. September 1, 2015.
Acts 2019, 86th Leg., R.S., Ch. 584 (S.B. 493), Sec. 1, eff. September 1, 2019.
Structure Texas Statutes
Subtitle G - Economic Development Programs Involving Both State and Local Governments
Chapter 2306 - Texas Department of Housing and Community Affairs
Subchapter DD. Low Income Housing Tax Credit Program
Section 2306.6702. Definitions
Section 2306.67021. Applicability of Subchapter
Section 2306.67022. Qualified Allocation Plan; Manual
Section 2306.6703. Ineligibility for Consideration
Section 2306.6704. Preapplication Process
Section 2306.67041. On-Line Application System
Section 2306.6705. General Application Requirements
Section 2306.67055. Market Analysis
Section 2306.6706. Additional Application Requirement: Nonprofit Set-Aside Allocation
Section 2306.6707. Additional Application Requirement: Disclosure of Interested Persons
Section 2306.6708. Application Changes or Supplements
Section 2306.6709. Application Log
Section 2306.6710. Evaluation and Underwriting of Applications
Section 2306.6711. Allocation of Housing Tax Credits
Section 2306.6712. Amendment of Application Subsequent to Allocation by Board
Section 2306.6713. Housing Tax Credit and Ownership Transfers
Section 2306.6714. At-Risk Development Set-Aside
Section 2306.6717. Public Information and Hearings
Section 2306.67171. Electronic Mail Notification Service
Section 2306.6718. Elected Officials
Section 2306.6719. Monitoring of Compliance
Section 2306.6720. Enforceability of Applicant Representations
Section 2306.6722. Development Accessibility
Section 2306.6723. Coordination With Rural Development Agency
Section 2306.6724. Deadlines for Allocation of Low Income Housing Tax Credits
Section 2306.6725. Scoring of Applications
Section 2306.6726. Sale of Certain Low Income Housing Tax Credit Developments
Section 2306.6727. Department Purchase of Low Income Housing Tax Credit Property
Section 2306.6729. Qualified Nonprofit Organization
Section 2306.6731. Allocation Decision; Reevaluation
Section 2306.6733. Representation by Former Board Member or Other Person
Section 2306.6734. Minority-Owned Businesses
Section 2306.6735. Required Lease Agreement Provisions
Section 2306.6737. Assistance From American Recovery and Reinvestment Act of 2009
Section 2306.6738. Prohibited Practices
Section 2306.6739. Housing Tax Credits Financed Using Federal Emergency Funds