The board must prioritize certain qualified residential rental project bond reservations over others, and may not reserve state ceiling for first-, second-, or third-priority projects unless it has evidence of a related housing tax credit application.
Sec. 1372.0321. PRIORITIES FOR RESERVATIONS AMONG ISSUERS OF QUALIFIED RESIDENTIAL RENTAL PROJECT ISSUES. (a) In granting reservations to issuers of qualified residential rental project issues, the board shall give first priority to projects that: (1) during the four-year period preceding the date of the application, have: (A) filed an application for a low-income housing tax credit with the Texas Department of Housing and Community Affairs; and (B) closed on a previous reservation of bonds in accordance with Section 1372.042, as determined based on the date of allocation of those bonds; (2) require a subsequent issuance of bonds to maintain compliance with the percentage requirement described by Subsection (e); and (3) have not previously applied for a subsequent issuance of bonds under this subsection. (b) In granting reservations to issuers of qualified residential rental project issues, the board shall give 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 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 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 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 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 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 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 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 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 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 fourth priority to any other qualified residential rental project. (e) The board may not reserve a portion of the state ceiling for a first, second, or third priority project described by this section unless the board receives evidence that an application has been filed with the Texas Department of Housing and Community Affairs for the low-income housing tax credit that is available for multifamily transactions that are at least 51 percent financed by tax-exempt private activity bonds. Added by Acts 2001, 77th Leg., ch. 1420, Sec. 8.015(a), eff. Sept. 1, 2001 and Acts 2001, 77th Leg., ch. 1367, Sec. 10.07(a), eff. Sept. 1, 2001. Amended by Acts 2003, 78th Leg., ch. 330, Sec. 28, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1329, Sec. 10, eff. Sept. 1, 2003. Amended by: Acts 2007, 80th Leg., R.S., Ch. 1108 (H.B. 3552), Sec. 9, eff. September 1, 2007. Acts 2023, 88th Leg., R.S., Ch. 1006 (H.B. 1766), Sec. 3, eff. June 18, 2023.