HB 1997 proposes to establish requirements for the Texas Department of Housing and Community Affairs (TDHCA) regarding the issuance of Internal Revenue Service (IRS) Form 8609, which is necessary for allocating low-income housing tax credits. The bill mandates that TDHCA must issue Form 8609 to development owners within 120 days of receiving a complete documentation packet. The documentation packet must contain specific items such as a notarized owner’s certification form, an independent auditor’s report, a development cost schedule, and other related documents. The bill also allows TDHCA to impose administrative penalties, including monetary fines or temporary participation bans, on development owners who intentionally provide false information. Furthermore, TDHCA is required to submit quarterly reports to the legislature detailing the number of applications processed, timeframes for issuance, and reasons for delays or rejections. The bill takes effect on September 1, 2025, and applies to applications submitted during the 2025 allocation cycle or subsequent cycles​.