.- Additional information on documents submitted for publication by the
Governor's Office can be obtained by calling (512) 475-3021.
Executive Order
WHEREAS, the Internal ~ e v e n u eCode of 1954, §103A, (the Code), provides that interest on bonds issued by
or on behalf of a state or a political subdivision thereof prior to or on December 31, 1983, to provide financing
for owiier-occupied residences shall be exempt from federal income taxation under certain conditions; and
WHEREAS, the United States Congress has enacted the proposed Deficit Reduction Act of 1984. House Resolution
4170, certain provisions of .which will amend the Code, 8103A, to &;se it to be applicable to bonds issued prior
to or on December 31; 1987; and
be issued within any state during any calendar year and provide%that each state, by law enacted after December
1983; but not for subsequent years; and
a
(A) IN GENERAL-If a state law which provided formula for alloca&ngthe state ceiling under the
Internal Revenue Code of 1954, §103A(g), for calendar year 1983;expires as of the close of calendar year
1983, for purposes of 8 103(A)(g)of such Code, such state law shall be treated-asremaining in effect after
1983. In any case to which the preceding sentence applies, where the state's expiring allocation formula
requires action by a state official to allocate the state ceiling among issuers, actions of such state official
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legislation enacted after the date of the enactment of this Act with respect to the allocation of the state ceiling.
(C) SPECIAL RULE FOR TEXAS-In
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the caie of Texas, the governor of such state may take the
the state laws of Texas.
WHEREAS, the ~ k x a ~
s e ~ i s l a t uhas
r e not yet enacted any legislation with respect to the allocation of the state
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WHEREAS, state and local issuers of such housing bonds in the State of Texas have indicated their desire to
proceed expeditiously to issue sukh housing bonds during 1984 and subsequent years as permitted by House Resolution 4170, and have further indicated their desire to market such bonds at the earliest practicable date in order
to obtain favorable interest rates on such bonds; Hnd
WHEREAS, any delay in the implementation of the interim procedures set forth herein would place persons
and families of low and moderate income in Texas at a materid disadvantage in obtaining low-interest home
mortgage loans under the provisions of House Resolution 4170; and
WHE&AS, in view of the foregoing and in anticipation of the signing of House Resolution 4170 by President
Reagan, the governor of thestate of Texas has determined to promulgate and adopt the interim procedures set
(1) It'is hereby ordered that the terms and provisions of Article 12691-8, with the modifications set.
herein, are adopted for allocating the state &ding on housing bonds issued in Texas pursuant to the Code, 51
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(3) It is hereby ordered that Article 12691-8 and the TDCA procedures shall be deemed modified for the pu
poses hereof by inserting "1984" in all places where "1981" appears, by inserting "1985" in all places wher
"1982" appears, and by inserting "1986 and 1987" in all places where "1983" appears.
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(4) It is hereby ordered that requests for reservation of a portion of the local share of the state ceiling
calendar years 1984-1987 shall be accepted for filing at the office of the TDCA only upon and after the d
upon which both the governor and the Texas Housing Agency (THA)have made an initial determination
the state ceiling for such calendar yew. In connection therewith, the governor hereby declares his intenti
determine the state ceiling for calendar year 1984 on July 18, 1984. It is hereby ordered that both the gov
and the THA shall determine and, if necessary, adjust the state ceiling for each calendar year. In the even
the governor and the THA act on different dates in making such determination or adjustment, the latter dat
shall control.
(6) It is hereby ordered that no more than one reservation request may be filed by an issuer with the T
during each calendar year unless the reservation issued with respect to a prior reservation request of such i
during suchyear has lapsed or has been exhausted, in which event such issuer may thereupon file another resew
request during such year.
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available shall remain eligible for a reservation certificate during the remainder of the calendar year durin
such request was filed without the necessity of refi1ing.a subsequent reservation request by the issuer; prow
however, that the 45-day period referred to in Article 12691-8, lS(c), and the TDCA procedure, 3121.13, sh
not be deemed to commence until the issuance by the TDCA of a reservation certificate pertaining to such reserv
tion request.
(8) 1t'is hereby ordered that the executive director of the TDCA shall certify in connection with each re
certificate that the issue which is the subject of such certificate meets the requirements of'the Code. 8
(9) It is hereby ordered that the executive directdr of the TDCA may and is hereby authorized to adopt suc
other and further forms and procedures as may be necessary to carry out the intent of this executive order.
(10) This executive order shall become effective upon the date hereof and shall remain in full force and
order shall be null and void.
This executive order shall be effective immediately akd shall remain in full force and effect until modified, amend
or rescinded by me.
Issued in Austin, Texas, on July 13, 1984.
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