PRIORITY ALLOCATION FOR CERTAIN QUALIFIED DEVELOPMENTS.

(a) This section applies only to a qualified development:

(1) that received an allocation of federal tax credits under the qualified allocation plan issued by the department for 2021 or 2022;

(2) the owners or developers of which have owned the land necessary for the development since at least December 31, 2022;

(3) that is not financed through tax exempt bonds; and

(4) that the department determines requires an allocation of credit under this subchapter to secure the financial feasibility of the qualified development after considering any federal tax credit.

(b) Notwithstanding Sections 171.554(e) and (f) and subject to Subsection (e) of this section, for the first year the department issues allocation certificates or reserves credit amounts for the purpose of issuing allocation certificates, the department shall use $5 million of the state housing credit ceiling to award credits to qualified developments to which this section applies.

(c) The owners of a qualified development to which this section applies who intend to apply for an allocation of credit under this section, or a representative of those owners, must notify the department of that intent before the deadline for the qualified development to be placed in service. If the owners or their representative provide the notice required by this subsection, the deadline for the qualified development to be placed in service is extended until:

(1) the deadline set by the department for submitting an application for an allocation under this section; or

(2) if an application for an allocation under this section is submitted before the deadline set by the department, the date the department issues a decision on the application.

(d) An applicant for an allocation of credit under this section must submit to the department:

(1) documents proving that the owners or developers of the qualified development meet the land ownership requirement under Subsection (a)(2);

(2) a financial analysis demonstrating that the allocation is necessary to secure the financial feasibility of the development as required by Subsection (a)(4); and

(3) any other documentation required by the department to demonstrate that the qualified development meets the requirements provided by Subsection (a).

(e) If the amount of state credits reserved under this section is not fully allocated to qualified developments to which this section applies, the department shall allocate the remaining portion to qualified developments to which this section does not apply.

(f) The department shall, in the qualified allocation plan, determine the priorities and criteria for awarding credits under this section if the amount of credits applied for exceeds the maximum amount that may be awarded under this section.