FAILURE OF HOUSING FINANCE CORPORATION TO USE AMOUNT OF STATE CEILING ALLOCATED.
Tex. GOV'T Code § 1372.0261.
in effect(a) In this section, "utilization percentage" means that portion of the amount of the state ceiling allocated to a housing finance corporation with respect to which the corporation issues private activity bonds that result in mortgage loans or mortgage credit certificates. A housing finance corporation's utilization percentage for an allocation of the state ceiling is the quotient of:
(1) the amount of the state ceiling:
(A) with respect to which mortgage loans have been originated, considering only the original principal balance of those loans;
(B) that is used to purchase mortgages or mortgage-backed securities; or
(C) that is used to issue mortgage credit certificates; divided by
(2) the amount of the state ceiling allocated, minus any amounts of the state ceiling required for debt service reserve funds.
(b) If a housing finance corporation's issue of bonds uses a new allocation of the state ceiling in combination with taxable bond proceeds or with bond proceeds recycled from previous allocations of the state ceiling, the first loans or certificates financed are considered in computing the utilization percentage of the new allocation of the state ceiling.
(c) If a housing finance corporation's utilization percentage is less than 80 percent but at least 25 percent, the next time the corporation becomes eligible for a reservation of the state ceiling, the maximum amount of the state ceiling that may be reserved for the corporation is equal to the amount for which the corporation would otherwise be eligible under Section 1372.026 multiplied by the utilization percentage of the corporation's last bond issue that used an allocation of the state ceiling.
(d) A housing finance corporation may not be penalized under Subsection (c) if:
(1) the corporation fails to use:
(A) bond proceeds recycled from previous allocations of the state ceiling; or
(B) taxable bond proceeds;
(2) as the result of an issuance of bonds, the corporation's utilization percentage is 80 percent or greater; or
(3) the application is received after July 14.
(e) If a housing finance corporation's utilization percentage is less than 25 percent, the next time the corporation becomes eligible for a reservation of the state ceiling, the maximum amount of the state ceiling that may be reserved for the corporation is equal to the amount for which the corporation would otherwise be eligible under Section 1372.026 multiplied by 25 percent.
(f) A housing finance corporation may not be penalized under Subsection (c) in a program year if, by December 31 of the preceding program year, an amount equal to or less than 50 percent of the aggregate state ceiling available for reservations by issuers of qualified mortgage bonds under Section 1372.022 (a)(1):
(1) has been used in connection with bond issues that have closed on or before that date; or
(2) has had carryforward elections filed on or before that date.
(g) An issuer that has carryforward available from the additional state ceiling is not restricted by project limits for the state ceiling. An issuer who uses the carryforward to issue qualified mortgage bonds or mortgage credit certificates is not subject to the utilization percentage calculation in determining the amount of the issuer's reservation request.
Added by Acts 2001, 77th Leg., ch. 1367, Sec. 10.04, eff. Sept. 1, 2001.
Acts 2009, 81st Leg., R.S., Ch. 1416 (S.B. 2064 ), Sec. 9, eff. June 19, 2009.