Texas 2011 - 82nd Regular

Texas Senate Bill SB402 Compare Versions

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1	1	By: West S.B. No. 402
2	2	(Oliveira)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to community land trusts.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subtitle A, Title 12, Local Government Code, is
10	10	amended by adding Chapter 373B to read as follows:
11	11	CHAPTER 373B. COMMUNITY LAND TRUSTS
12	12	Sec. 373B.001. DEFINITION. In this chapter, "community
13	13	housing development organization" has the meaning assigned by 42
14	14	U.S.C. Section 12704.
15	15	Sec. 373B.002. CREATION OR DESIGNATION. The governing body
16	16	of a municipality or county by ordinance or order may create or
17	17	designate one or more community land trusts, including a housing
18	18	finance corporation established under Chapter 394 or a land trust
19	19	operated by a community housing development organization certified
20	20	by the municipality or county, to operate in the municipality or
21	21	county.
22	22	Sec. 373B.003. NATURE OF TRUST. A community land trust
23	23	created or designated under Section 373B.002 must be a nonprofit
24	24	organization that is:
25	25	(1) created to acquire and hold land for the benefit of
26	26	developing and preserving long-term affordable housing in the
27	27	municipality or county; and
28	28	(2) exempt from federal income taxation under Section
29	29	501(a), Internal Revenue Code of 1986, by being certified as an
30	30	exempt organization under Section 501(c)(3) of that code.
31	31	Sec. 373B.004. PURPOSES OF TRUST. The purposes of a
32	32	community land trust are to:
33	33	(1) provide affordable housing for low-income and
34	34	moderate-income residents in the community;
35	35	(2) promote resident ownership of housing;
36	36	(3) keep housing affordable for future residents; and
37	37	(4) capture the value of public investment for
38	38	long-term community benefit.
39	39	Sec. 373B.005. OWNERSHIP OF LAND AND HOUSING UNITS. A
40	40	community land trust may retain title to land it acquires and may:
41	41	(1) sell housing units located on the land and lease
42	42	the land under ground leases with terms of at least 99 years; or
43	43	(2) lease housing units located on the land.
44	44	Sec. 373B.006. QUALIFICATIONS OF PURCHASERS OR LESSEES OF
45	45	HOUSING UNITS. (a) A community land trust may sell housing units
46	46	only to families with a yearly income at the time of sale at or below
47	47	80 percent of the area median family income, adjusted for family
48	48	size.
49	49	(b) Notwithstanding Subsection (a), for housing units
50	50	located on one or more tracts of land owned by the community land
51	51	trust that constitute a contiguous geographic area or are located
52	52	in the same platted subdivision, the trust may sell not more than 20
53	53	percent of the housing units to families with a yearly income at the
54	54	time of sale that exceeds the amount provided by Subsection (a) but
55	55	does not exceed 120 percent of the area median family income,
56	56	adjusted for family size.
57	57	(c) At least 25 percent of the housing units sold by the
58	58	trust must be sold to families with a yearly income at the time of
59	59	sale at or below 60 percent of the area median family income,
60	60	adjusted for family size.
61	61	(d) A community land trust may lease housing units only to
62	62	families with a yearly income at the time of lease at or below 60
63	63	percent of the area median family income, adjusted for family size.
64	64	(e) Notwithstanding Subsection (d), for housing units
65	65	located on one or more tracts of land owned by the community land
66	66	trust that constitute a contiguous geographic area or are located
67	67	in the same platted subdivision, the trust may lease not more than
68	68	20 percent of the housing units to families with a yearly income at
69	69	the time of lease that exceeds the amount provided by Subsection (d)
70	70	but does not exceed 80 percent of the area median family income,
71	71	adjusted for family size.
72	72	Sec. 373B.007. RELATION TO OTHER LAW. This chapter does not
73	73	preclude the creation of a land trust by a nonprofit organization,
74	74	including a community housing development organization, under
75	75	other statutory or common law or the operation of that land trust
76	76	inside or outside a municipality or county that has created or
77	77	designated a community land trust under Section 373B.002.
78	78	Sec. 373B.008. APPLICABILITY OF CHAPTER TO TRUST OPERATED
79	79	BY HOUSING FINANCE CORPORATION. Section 373B.003 does not apply to
80	80	a community land trust operated in the municipality or county by a
81	81	housing finance corporation established under Chapter 394.
82	82	SECTION 2. Subchapter B, Chapter 11, Tax Code, is amended by
83	83	adding Section 11.1827 to read as follows:
84	84	Sec. 11.1827. COMMUNITY LAND TRUST. (a) In this section,
85	85	"community land trust" means a community land trust created or
86	86	designated under Section 373B.002, Local Government Code.
87	87	(b) In addition to any other exemption to which the trust
88	88	may be entitled, a community land trust is entitled to an exemption
89	89	from taxation by a taxing unit of land owned by the trust, together
90	90	with the housing units located on the land if they are owned by the
91	91	trust, if:
92	92	(1) the trust:
93	93	(A) meets the requirements of a charitable
94	94	organization provided by Sections 11.18(e) and (f);
95	95	(B) owns the land for the purpose of leasing the
96	96	land and selling or leasing the housing units located on the land as
97	97	provided by Chapter 373B, Local Government Code; and
98	98	(C) engages exclusively in the sale or lease of
99	99	housing as described by Paragraph (B) and related activities,
100	100	except that the trust may also engage in the development of
101	101	low-income and moderate-income housing; and
102	102	(2) the exemption is adopted by the governing body of
103	103	the taxing unit before July 1 in the manner provided by law for
104	104	official action by the body.
105	105	(c) Property owned by a community land trust may not be
106	106	exempted under Subsection (b) after the third anniversary of the
107	107	date the trust acquires the property unless the trust is offering to
108	108	sell or lease or is leasing the property as provided by Chapter
109	109	373B, Local Government Code.
110	110	(d) A community land trust entitled to an exemption from
111	111	taxation by a taxing unit under Subsection (b) is also entitled to
112	112	an exemption from taxation by the taxing unit of any real or
113	113	tangible personal property the trust owns and uses in the
114	114	administration of its acquisition, construction, repair, sale, or
115	115	leasing of property. To qualify for an exemption under this
116	116	subsection, property must be used exclusively by the trust, except
117	117	that another person may use the property for activities incidental
118	118	to the trust's use that benefit the beneficiaries of the trust.
119	119	(e) To receive an exemption under this section, a community
120	120	land trust must annually have an audit prepared by an independent
121	121	auditor. The audit must include:
122	122	(1) a detailed report on the trust's sources and uses
123	123	of funds; and
124	124	(2) any other information required by the governing
125	125	body of the municipality or county that created or designated the
126	126	trust under Section 373B.002, Local Government Code.
127	127	(f) Not later than the 180th day after the last day of the
128	128	community land trust's most recent fiscal year, the trust must
129	129	deliver a copy of the audit required by Subsection (e) to:
130	130	(1) the governing body of the municipality or county
131	131	or an entity designated by the governing body; and
132	132	(2) the chief appraiser of the appraisal district in
133	133	which the property subject to the exemption is located.
134	134	SECTION 3. Subsection (c), Section 11.43, Tax Code, is
135	135	amended to read as follows:
136	136	(c) An exemption provided by Section 11.13, 11.131, 11.17,
137	137	11.18, 11.182, 11.1827, 11.183, 11.19, 11.20, 11.21, 11.22,
138	138	11.23(h), (j), or (j-1), 11.231, 11.254, 11.29, 11.30, or 11.31,
139	139	once allowed, need not be claimed in subsequent years, and except as
140	140	otherwise provided by Subsection (e), the exemption applies to the
141	141	property until it changes ownership or the person's qualification
142	142	for the exemption changes. However, the chief appraiser may
143	143	require a person allowed one of the exemptions in a prior year to
144	144	file a new application to confirm the person's current
145	145	qualification for the exemption by delivering a written notice that
146	146	a new application is required, accompanied by an appropriate
147	147	application form, to the person previously allowed the exemption.
148	148	SECTION 4. Section 23.21, Tax Code, is amended by adding
149	149	Subsections (c) and (d) to read as follows:
150	150	(c) In appraising land or a housing unit that is leased by a
151	151	community land trust created or designated under Section 373B.002,
152	152	Local Government Code, to a family meeting the income-eligibility
153	153	standards established by Section 373B.006 of that code under
154	154	regulations or restrictions limiting the amount that the family may
155	155	be required to pay for the rental or lease of the property, the
156	156	chief appraiser shall take into account the extent to which that use
157	157	and limitation reduce the market value of the property.
158	158	(d) In appraising a housing unit that the owner or a
159	159	predecessor of the owner acquired from a community land trust
160	160	created or designated under Section 373B.002, Local Government
161	161	Code, and that is located on land owned by the trust and leased by
162	162	the owner of the housing unit, the chief appraiser shall take into
163	163	account the extent to which any regulations or restrictions
164	164	limiting the right of the owner of the housing unit to sell the
165	165	housing unit, including any limitation on the price for which the
166	166	housing unit may be sold, reduce the market value of the housing
167	167	unit.
168	168	SECTION 5. This Act applies only to ad valorem taxes imposed
169	169	for a tax year beginning on or after the effective date of this Act.
170	170	SECTION 6. This Act takes effect January 1, 2012.