TX HB1997

Requires the Texas Department of Housing and Community Affairs (TDHCA) to issue IRS Form 8609 within 120 days after a development owner submits a complete documentation packet for low income housing tax credit allocations

Specifies the exact contents of the required documentation packet, including owner certification forms, development cost schedules, independent auditor reports, carryover allocation agreements, architect certifications, land use restriction agreements, and financial pro formas

Authorizes TDHCA to impose administrative penalties on development owners who intentionally submit incorrect or inconsistent information, including monetary fines or prohibition from participating in the tax credit program for up to two years

Mandates quarterly reporting to the legislature on Form 8609 processing, including the number of pending packets, issuance timelines, average processing times, rejected applications, and detailed explanations for any delays or rejections

Applies to applications submitted under the 2025 qualified allocation plan or later, with an effective date of September 1, 2025