Private Activity Bond Allocation Program Rules
Statute and Administrative Code:
Section 146(e) of the Internal Revenue Code provides for each state to devise an allocation formula or a process for allocating the state’s ceiling. This provision has given each state the ability to allocate this limited resource in a manner consistent with the needs of that state. Chapter 1372 of the Texas Government Code (TGC) governs the allocation process for the state of Texas.
Section 1372.004 of the Texas Government Code authorizes the Texas Bond Review Board (BRB) to adopt rules necessary to accomplish the purposes of the statute. Chapter 190 of the Texas Administrative Code (TAC) was adopted by the Board to provide supplemental guidelines and clarification relating to the administration of the Private Activity Bond allocation process for the state of Texas.
Senate Bill 1474 of the 86th Texas Legislature, Regular Session (2019) made several changes to Chapter 1372 of the Texas Government Code. The primary effects of which were as follows: reallocated the authority among the issuers and sub-ceilings, changed the local regional collapse of housing finance corporation residential rental projects from May 1st to March 1st of the Program Year, raised and indexed the project limits to the total state ceiling, extended the closing deadlines of each project group, and authorized the reassignment of carryforward designation through the described process.
Senate Bill 1984 of the 87th Texas Legislature, Regular Session (2021) made several changes to Chapter 1372 of the Texas Government Code. The primary effect of which was as follows: simplifying and clarifying the process by which a carryforward designation may be reassigned.