Bill

SB 1989

84(R) - 2015
Senate Intergovernmental Relations
Read Bill & Check Bill Status
Senate Intergovernmental Relations

Vote Recommendation

Yes
  • Neutral
  • Neutral
  • Neutral
  • Positive
  • Neutral

Author(s)

Jose Menendez

Bill Caption

Relating to underwriting standards for developments receiving an allocation of low income housing tax credits administered by the Texas Department of Housing and Community Affairs.

Fiscal Notes

Based on the analysis of the Texas Department of Housing and Community Affairs, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. 

Bill Analysis

SB 1989 seeks to allow the governing board of the Texas Department of Housing and Community Affairs (TDHCA) the authority to establish basic underwriting standards for housing tax credits at time of cost certification. They may determine cost certification by using the actual net operating income, adjusted for stabilization of rents and extraordinary lease-up expenses and a maximum debt coverage ratio of 1.50 or higher as adopted by department rule. 

The agency would be allowed to increase the maximum debt coverage ratio (DCR) to be used by adoption of rule and certain types of transactions may be excepted from these criteria if adopted by rule. 

Vote Recommendation Notes

SB 1989 would allow the governing board of the Texas Department of Housing and Community Affairs (TDHCA) to develop basic standards necessary to maintain consistency in their underwriting process. This is within the proper role of the state and of that agency in particular. We support SB 1989. 

Our support for this legislation does not connote support for all of the duties of TDHCA.