The bill, H.B. No. 1342, amends the Government Code to modify the issuance of private activity bonds for qualified residential rental projects. It introduces new subsections that prioritize projects based on specific criteria, such as the timing of applications and the existence of binding contracts for significant expenditures related to construction or rehabilitation. The bill defines "significant expenditures" as those exceeding either $500,000 or 10 percent of the anticipated project cost. Additionally, it adjusts the priority ranking for projects, changing the second priority to third, and the third to fourth, while establishing new criteria for prioritization based on income levels and project location.

Furthermore, the bill amends the requirements for issuers to submit documentation to the board after bond closure, removing the need for evidence of low-income housing tax credit approval for certain priority projects. It also repeals a specific subsection related to the allocation of the state ceiling under Chapter 1372. The changes will take effect starting with the 2026 program year and are set to be implemented on September 1, 2025.

Statutes affected:
Introduced: Government Code 1372.0321, Government Code 1372.042 (Government Code 1372)