Texas 2009 - 81st Regular

Texas House Bill HB4614 Compare Versions

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1	1	By: Oliveira H.B. No. 4614
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to community land trusts.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Subtitle A, Title 12, Local Government Code, is
9	9	amended by adding Chapter 373B to read as follows:
10	10	CHAPTER 373B. COMMUNITY LAND TRUSTS
11	11	Sec. 373B.001. DEFINITION. In this chapter, "community
12	12	housing development organization" has the meaning assigned by 42
13	13	U.S.C. Section 12704.
14	14	Sec. 373B.002. CREATION OR DESIGNATION. The governing body
15	15	of a municipality or county by ordinance or order may create or
16	16	designate one or more community land trusts, including a housing
17	17	finance corporation established under Chapter 394 or a land trust
18	18	operated by a community housing development organization certified
19	19	by the municipality or county, to operate in the municipality or
20	20	county.
21	21	Sec. 373B.003. NATURE OF TRUST. A community land trust
22	22	created or designated under Section 373B.002 must be a nonprofit
23	23	organization that is:
24	24	(1) created to acquire and hold land for the benefit of
25	25	developing and preserving long-term affordable housing in the
26	26	municipality or county; and
27	27	(2) exempt from federal income taxation under Section
28	28	501(a), Internal Revenue Code of 1986, by being certified as an
29	29	exempt organization under Section 501(c)(3) of that code.
30	30	Sec. 373B.004. PURPOSES OF TRUST. The purposes of a trust
31	31	are to:
32	32	(1) provide affordable housing for low-income and
33	33	moderate-income residents in the community;
34	34	(2) promote resident ownership of housing;
35	35	(3) keep housing affordable for future residents; and
36	36	(4) capture the value of public investment for
37	37	long-term community benefit.
38	38	Sec. 373B.005. OWNERSHIP OF LAND AND HOUSING UNITS. A
39	39	community land trust may retain title to land it acquires and may:
40	40	(1) sell housing units located on the land and lease
41	41	the land under ground leases with terms of at least 50 years; or
42	42	(2) lease housing units located on the land.
43	43	Sec. 373B.006. QUALIFICATIONS OF PURCHASERS OR LESSEES OF
44	44	HOUSING UNITS. (a) A community land trust may sell housing units
45	45	only to families with a yearly income at the time of sale at or below
46	46	80 percent of the area median family income, adjusted for family
47	47	size.
48	48	(b) At least 25 percent of the housing units sold by the
49	49	trust must be sold to families with a yearly income at the time of
50	50	sale at or below 60 percent of the area median family income,
51	51	adjusted for family size.
52	52	(c) A community land trust may lease housing units only to
53	53	families with a yearly income at the time of lease at or below 60
54	54	percent of the area median family income, adjusted for family size.
55	55	Sec. 373B.007. RELATION TO OTHER LAW. This chapter does not
56	56	preclude the creation of a land trust by a nonprofit organization,
57	57	including a community housing development organization, under
58	58	other statutory or common law or the operation of that land trust
59	59	inside or outside a municipality or county that has created or
60	60	designated a trust under Section 373B.002.
61	61	Sec. 373B.008. APPLICABILITY OF CHAPTER TO TRUST OPERATED
62	62	BY HOUSING FINANCE CORPORATION. Section 373B.003 does not apply to
63	63	a community land trust operated in the municipality or county by a
64	64	housing finance corporation established under Chapter 394.
65	65	SECTION 2. Subchapter B, Chapter 11, Tax Code, is amended by
66	66	adding Sections 11.1827 and 11.1828 to read as follows:
67	67	Sec. 11.1827. COMMUNITY LAND TRUST. (a) In this section,
68	68	"community land trust" means a community land trust created or
69	69	designated under Section 373B.002, Local Government Code.
70	70	(b) In addition to any other exemption to which the trust
71	71	may be entitled, a community land trust is entitled to an exemption
72	72	from taxation by a taxing unit of land owned by the trust, together
73	73	with the housing units located on the land if they are owned by the
74	74	trust, if:
75	75	(1) the trust:
76	76	(A) meets the requirements of a charitable
77	77	organization provided by Sections 11.18(e) and (f);
78	78	(B) owns the land for the purpose of leasing the
79	79	land and selling or leasing the housing units located on the land as
80	80	provided by Chapter 373B, Local Government Code; and
81	81	(C) engages exclusively in the sale or lease of
82	82	housing as described by Paragraph (B) and related activities; and
83	83	(2) the exemption is adopted by the governing body of
84	84	the taxing unit before July 1 in the manner provided by law for
85	85	official action by the body.
86	86	(c) Property owned by a community land trust may not be
87	87	exempted under Subsection (b) after the third anniversary of the
88	88	date the trust acquires the property unless the trust is offering to
89	89	sell or lease or is leasing the property as provided by Chapter
90	90	373B, Local Government Code.
91	91	(d) A community land trust entitled to an exemption from
92	92	taxation by a taxing unit under Subsection (b) is also entitled to
93	93	an exemption from taxation by the taxing unit of any building or
94	94	tangible personal property the trust owns and uses in the
95	95	administration of its acquisition, construction, repair, sale, or
96	96	leasing of property. To qualify for an exemption under this
97	97	subsection, property must be used exclusively by the organization,
98	98	except that another person may use the property for activities
99	99	incidental to the trust's use that benefit the beneficiaries of the
100	100	trust.
101	101	Sec. 11.1828. MONITORING OF COMPLIANCE BY COMMUNITY LAND
102	102	TRUST WITH AFFORDABLE HOUSING EXEMPTION. (a) To receive an
103	103	exemption under Section 11.1827, a community land trust must
104	104	annually have an audit prepared by an independent auditor. The
105	105	audit must include:
106	106	(1) a detailed report on the trust's sources and uses
107	107	of funds; and
108	108	(2) any other information required by the governing
109	109	body of the municipality or county that created or designated the
110	110	trust under Section 373B.002, Local Government Code.
111	111	(b) A copy of the audit must be delivered to:
112	112	(1) the governing body of the municipality or county
113	113	or an entity designated by the governing body; and
114	114	(2) the chief appraiser of the appraisal district in
115	115	which the property subject to the exemption is located.
116	116	SECTION 3. Section 11.43(c), Tax Code, is amended to read as
117	117	follows:
118	118	(c) An exemption provided by Section 11.13, 11.17, 11.18,
119	119	11.182, 11.1827, 11.183, 11.19, 11.20, 11.21, 11.22, 11.23(h), (j),
120	120	or (j-1), 11.29, 11.30, or 11.31, once allowed, need not be claimed
121	121	in subsequent years, and except as otherwise provided by Subsection
122	122	(e), the exemption applies to the property until it changes
123	123	ownership or the person's qualification for the exemption changes.
124	124	However, the chief appraiser may require a person allowed one of the
125	125	exemptions in a prior year to file a new application to confirm the
126	126	person's current qualification for the exemption by delivering a
127	127	written notice that a new application is required, accompanied by
128	128	an appropriate application form, to the person previously allowed
129	129	the exemption.
130	130	SECTION 4. Section 23.21, Tax Code, is amended by adding
131	131	Subsections (c) and (d) to read as follows:
132	132	(c) In appraising land or a housing unit that is leased by a
133	133	community land trust created or designated under Section 373B.002,
134	134	Local Government Code, to a family meeting the income-eligibility
135	135	standards established by Section 373B.006 of that code under
136	136	regulations or restrictions limiting the amount that the family may
137	137	be required to pay for the rental or lease of the property, the
138	138	chief appraiser shall take into account the extent to which that use
139	139	and limitation reduce the market value of the property.
140	140	(d) In appraising a housing unit that the owner or a
141	141	predecessor of the owner acquired from a community land trust
142	142	created or designated under Section 373B.002, Local Government
143	143	Code, and that is located on land owned by the trust and leased by
144	144	the owner of the housing unit, the chief appraiser shall take into
145	145	account the extent to which any regulations or restrictions
146	146	limiting the right of the owner of the housing unit to sell the
147	147	housing unit, including any limitation on the price for which the
148	148	housing unit may be sold, reduce the market value of the housing
149	149	unit.
150	150	SECTION 5. This Act applies only to ad valorem taxes imposed
151	151	for a tax year beginning on or after the effective date of this Act.
152	152	SECTION 6. This Act takes effect January 1, 2010.