82R2171 SMH-D
By: Rodriguez H.B. No. 683
A BILL TO BE ENTITLED
AN ACT
relating to the ad valorem taxation of property owned by certain
organizations and used to provide affordable housing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 11.1825(f), (l), and (q), Tax Code, are
amended to read as follows:
(f) For property to be exempt under this section, the
organization must own the property for the purpose of constructing
or rehabilitating a housing project on the property and:
(1) renting the housing, regardless of whether the
housing project consists of multifamily or single-family
dwellings, to individuals or families whose median income is not
more than 60 percent of the greater of:
(A) the area median family income for the
household's place of residence, as adjusted for family size and as
established by the United States Department of Housing and Urban
Development; or
(B) the statewide area median family income, as
adjusted for family size and as established by the United States
Department of Housing and Urban Development; or
(2) selling single-family dwellings to individuals or
families whose median income is not more than the greater of:
(A) the area median family income for the
household's place of residence, as adjusted for family size and as
established by the United States Department of Housing and Urban
Development; or
(B) the statewide area median family income, as
adjusted for family size and as established by the United States
Department of Housing and Urban Development.
(l) If the property is owned for the purpose of
rehabilitating a housing project on the property:
(1) the original construction of the housing project
must have been completed at least 10 years before the date the
organization began actual rehabilitation of the project, if the
project consists of multifamily dwellings;
(2) the person from whom the organization acquired the
project must have owned the project for at least five years, if the
organization is not the original owner of the project and the
project consists of multifamily dwellings;
(3) the organization must provide to the chief
appraiser and, if the project was financed with bonds, the issuer of
the bonds a written statement prepared by a certified public
accountant stating that the organization has spent on
rehabilitation costs at least the greater of $5,000 or the amount
required by the financial lender for each dwelling unit in the
project; and
(4) the organization must maintain a reserve fund for
replacements:
(A) in the amount required by the financial
lender; or
(B) if the financial lender does not require a
reserve fund for replacements, in an amount equal to $300 per unit
per year.
(q) If property qualifies for an exemption under this
section, the chief appraiser shall use the income method of
appraisal as described [provided] by Section 23.012 to determine
the appraised value of the property. The chief appraiser shall use
that method regardless of whether the chief appraiser considers
that method to be the most appropriate method of appraising the
property. In appraising the property, the chief appraiser shall:
(1) consider the restrictions provided by this section
on the income of the individuals or families to whom the dwelling
units of the housing project may be rented and the amount of rent
that may be charged for purposes of computing the actual rental
income from the property or projecting future rental income; and
(2) use the same capitalization rate that the chief
appraiser uses to appraise other rent-restricted properties.
SECTION 2. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2012.