| 1 | 1 | | 81R10879 SMH-D |
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| 2 | 2 | | By: Rodriguez H.B. No. 2284 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the ad valorem taxation of property owned by certain |
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| 8 | 8 | | organizations and used to provide affordable housing. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 11.1825(f) and (q), Tax Code, are |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | (f) For property to be exempt under this section, the |
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| 13 | 13 | | organization must own the property for the purpose of constructing |
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| 14 | 14 | | or rehabilitating a housing project on the property and: |
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| 15 | 15 | | (1) renting the housing, regardless of whether the |
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| 16 | 16 | | housing project consists of multi-family or single-family |
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| 17 | 17 | | dwellings, to individuals or families whose median income is not |
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| 18 | 18 | | more than 60 percent of the greater of: |
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| 19 | 19 | | (A) the area median family income for the |
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| 20 | 20 | | household's place of residence, as adjusted for family size and as |
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| 21 | 21 | | established by the United States Department of Housing and Urban |
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| 22 | 22 | | Development; or |
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| 23 | 23 | | (B) the statewide area median family income, as |
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| 24 | 24 | | adjusted for family size and as established by the United States |
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| 25 | 25 | | Department of Housing and Urban Development; or |
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| 26 | 26 | | (2) selling single-family dwellings to individuals or |
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| 27 | 27 | | families whose median income is not more than the greater of: |
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| 28 | 28 | | (A) the area median family income for the |
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| 29 | 29 | | household's place of residence, as adjusted for family size and as |
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| 30 | 30 | | established by the United States Department of Housing and Urban |
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| 31 | 31 | | Development; or |
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| 32 | 32 | | (B) the statewide area median family income, as |
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| 33 | 33 | | adjusted for family size and as established by the United States |
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| 34 | 34 | | Department of Housing and Urban Development. |
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| 35 | 35 | | (q) If property qualifies for an exemption under this |
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| 36 | 36 | | section, the chief appraiser shall use the income method of |
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| 37 | 37 | | appraisal as described [provided] by Section 23.012 to determine |
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| 38 | 38 | | the appraised value of the property. The chief appraiser shall use |
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| 39 | 39 | | that method regardless of whether the chief appraiser considers |
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| 40 | 40 | | that method to be the most appropriate method of appraising the |
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| 41 | 41 | | property. In appraising the property, the chief appraiser shall: |
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| 42 | 42 | | (1) consider the restrictions provided by this section |
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| 43 | 43 | | on the income of the individuals or families to whom the dwelling |
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| 44 | 44 | | units of the housing project may be rented and the amount of rent |
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| 45 | 45 | | that may be charged for purposes of computing the actual rental |
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| 46 | 46 | | income from the property or projecting future rental income; and |
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| 47 | 47 | | (2) use the same capitalization rate that the chief |
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| 48 | 48 | | appraiser uses to appraise other rent-restricted properties. |
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| 49 | 49 | | SECTION 2. This Act applies only to ad valorem taxes imposed |
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| 50 | 50 | | for a tax year beginning on or after the effective date of this Act. |
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| 51 | 51 | | SECTION 3. This Act takes effect January 1, 2010. |
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