(a) The state's ceiling shall be determined for each calendar year by the executive director based upon the most recent census estimate of the resident population of the state published by the Bureau of the Census prior to the beginning of such calendar year. The amount of the state ceiling shall be published on the board's website in January each year and shall be updated on the site at least weekly thereafter.
(b) On or after October 5 of the year preceding the applicable program year, the board will accept applications for reservation from issuers authorized to issue private activity bonds. The board shall not grant a reservation to any issuer prior to January 2 of the program year. If two or more issuers file an application for reservation of the state ceiling in any of the categories described in Government Code §1372.022, the board shall conduct a lottery establishing the priority order of each such application for reservation. Once the priority order for all applications for reservation filed on or before October 20 of the year preceding the applicable program year is established, except as provided by Government Code §1372.031(b) and subject to Government Code §1372.0321 and Government Code §1372.0231, reservations for each issuer within the categories described in Government Code §1372.022(a)(2), (3), (4), and (5) shall be granted in the order of priority established by such lottery. If determined by staff as necessary an additional lottery may be held immediately to stagger reservation dates for such issuers; otherwise, reservations shall be staggered by priority and then lot number. Each issuer of state voted issues granted a reservation initially may participate in the additional lottery or shall be granted a reservation date which is the first business day of the program year.
(c) The order of priority for reservations by housing finance corporations in the category described in Government Code §1372.022(a)(1), shall further be determined as provided in Government Code §1372.032.
  (1) The first category of priority shall include those applications for a reservation filed by housing finance corporations which filed an application for a reservation on behalf of the same local population prior to September 1 of the previous calendar year, but which did not receive a reservation during such year. Any such priority of an issuer composed of more than one jurisdiction is not affected by the issuer's loss of a sponsoring government unit and that unit's population base if the dollar amount of the application has not increased.
  (2) The second category of priority shall include those applications for a reservation not included in the first category of priority.
  (3) Within each category of priority, reservations shall be granted in reverse calendar year order of the most recent closing of qualified mortgage bonds by each housing finance corporation, with the most recent closing being the last to receive a reservation and with those housing finance corporations that have never received a reservation for mortgage revenue bonds being the first to receive a reservation, and, in the case of closings occurring on the same date, reservations shall be granted in an order determined by the board by lot. The most recent closing applicable to:
    (A) a newly created housing finance corporation that was created by a local government unit or local government units that had previously sponsored an existing housing finance corporation or a disbanded housing finance corporation, is the most recent closing of qualified mortgage bonds the proceeds of which were available to the population of the housing finance corporation;
    (B) a housing finance corporation sponsored by a local government unit that has participated in the program of another housing finance corporation, is the most recent closing of qualified mortgage bonds the proceeds of which were available to the population of the housing finance corporation; and
    (C) all other housing finance corporations, is the most recent closing of qualified mortgage bonds by the housing finance corporation. In no event will a housing finance corporation or its sponsoring local government unit be allowed to achieve an advantage in the determination of its last closing date by creating, dissolving, or withdrawing from a housing finance corporation.
(d) The order of priority for reservations in the category described in Government Code §1372.022(a)(4) shall further be determined as provided in Government Code §1372.0321 and Government Code §1372.0231.
  (1) The first category of priority shall include those applications for a reservation for projects that:
    (A) during the four-year period preceding the date of the application, have:
      (i) filed an application for a low-income housing tax credit with the Texas Department of Housing and Community Affairs; and
      (ii) closed on a previous reservation of bonds in accordance with Government Code §1372.042, as determined based on the date of allocation of those bonds; and
    (B) require a subsequent issuance of bonds to maintain compliance with the percentage requirement described in Government Code §1372.0321(e); and
    (C) have not previously applied for a subsequent issuance of bonds under Government Code §1372.0321(a).
  (2) The second category of priority shall include those applications for a reservation for:
    (A) projects:
      (i) in which 50% of the units are reserved for families and individuals earning not more than 50% of the area median family income and in which the maximum allowable rents are restricted to 30% of 50% of area median family income, minus an allowance for utility costs authorized under the federal Low Income Housing Tax Credit Program; and
      (ii) the remaining 50% of the residential units in the project are reserved for families and individuals earning not more than 60% of the area median family income and in which the maximum allowable rents are restricted to 30% of 60% of area median family income, minus an allowance for utility costs authorized under the federal Low Income Housing Tax Credit Program; or
    (B) projects:
      (i) in which 15% of the residential units in the project are reserved for families and individuals earning not more than 30% of the area median family income and in which the maximum allowable rents are restricted to 30% of 30% of area median family income, minus an allowance for utility costs authorized under the federal Low Income Housing Tax Credit Program; and
      (ii) the remaining 85% of the residential units in the project are reserved for families and individuals earning not more than 60% of the area median family income and in which the maximum allowable rents are restricted to 30% of 60% of area median family income, minus an allowance for utility costs authorized under the federal Low Income Housing Tax Credit Program; or
    (C) projects:
      (i) in which 100% of the residential units in the project are reserved for families and individuals earning not more than 60% of the area median family income and in which the maximum allowable rents are restricted to 30% of 60% of area median family income, minus an allowance for utility costs authorized under the federal Low Income Housing Tax Credit Program; and
      (ii) which are located in a census tract in which the median income, based on the most recent information published by the United States Bureau of the Census, is higher than the median income for the county, metropolitan statistical area, or primary metropolitan statistical area in which the census tract is located as established by the United States Department of Housing and Urban Development; or
    (D) on June 1 and after, projects that were submitted for the lottery, and are located in counties, metropolitan statistical areas, or primary metropolitan statistical areas with area median family income levels below or at the median family income for the state according to the U.S. Department of Housing and Urban Development.
  (3) The third category of priority shall include those applications for a reservation for a project in which at least 80% of the units are reserved for families and individuals earning not more than 60% of the area median family income and in which the maximum allowable rents are restricted to 30% of 60% of area median family income, minus an allowance for utility costs authorized under the federal Low Income Housing Tax Credit Program.
  (4) The fourth category of priority shall include those applications for any other qualified residential rental project.
  (5) Within each category of priority, reservations shall be granted in the order established by the lottery subject to Government Code §1372.0231.
Cont'd...