Texas 2017 - 85th Regular

Texas House Bill HB2480 Compare Versions

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1	1	85R14022 CJC-D
2	2	By: Johnson of Dallas H.B. No. 2480
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to provisions applicable to affordable housing located in
8	8	a reinvestment zone in certain areas of the state.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 311.003, Tax Code, is amended by adding
11	11	Subsection (e) to read as follows:
12	12	(e) Before adopting an ordinance designating a reinvestment
13	13	zone described by Section 311.0112, a municipality must prepare or
14	14	have prepared an affordable housing impact statement. The
15	15	statement must be made available to the public and posted on the
16	16	municipality's Internet website at least 60 days before the
17	17	municipality holds the hearing required under Subsection (c). The
18	18	statement must include estimates of the impact on the availability
19	19	of affordable housing in the area of the proposed zone for the
20	20	30-year period following designation of the proposed zone.
21	21	SECTION 2. Section 311.006(e), Tax Code, is amended to read
22	22	as follows:
23	23	(e) Subsection (a)(1) does not apply to a reinvestment zone:
24	24	(1) designated under Section 311.005(a)(4); or
25	25	(2) described by Section 311.0112.
26	26	SECTION 3. Chapter 311, Tax Code, is amended by adding
27	27	Section 311.0112 to read as follows:
28	28	Sec. 311.0112. PROVISIONS APPLICABLE IN CERTAIN ZONES. (a)
29	29	This section applies only to a reinvestment zone:
30	30	(1) designated by a municipality:
31	31	(A) with a population of 1.18 million or more;
32	32	and
33	33	(B) that is located predominantly in a county
34	34	that has a total area of less than 1,000 square miles; and
35	35	(2) any part of which is located in an area composed of
36	36	census tracts forming a spatially compact area contiguous to a
37	37	central business district with:
38	38	(A) fewer than 75,000 residents;
39	39	(B) a median family income that is less than
40	40	$30,000 according to the last decennial census; and
41	41	(C) an overall poverty rate that is at least two
42	42	times the poverty rate for the entire municipality that designated
43	43	the zone.
44	44	(b) For purposes of this section, an area adjacent to a
45	45	reinvestment zone means any area within two miles of the zone's
46	46	boundaries in any direction that is not located within the
47	47	boundaries of another reinvestment zone.
48	48	(c) Subject to Subsection (d), at least 20 percent of the
49	49	revenue from the tax increment fund of the reinvestment zone spent
50	50	annually must be for the development, construction, and
51	51	preservation of affordable housing in the zone and in the area
52	52	adjacent to the zone. Of that amount:
53	53	(1) at least 75 percent must be spent to benefit
54	54	families that have a yearly income at or below 60 percent of the
55	55	area median family income, adjusted for family size; and
56	56	(2) not more than 10 percent may be used to pay
57	57	administrative costs.
58	58	(d) Subsection (c) does not apply if the use of the revenue
59	59	in the tax increment fund in the manner required by that subsection
60	60	would materially impair the security for bonds or notes issued
61	61	under Section 311.015 before September 1, 2017.
62	62	(e) A project or reinvestment zone financing plan for a
63	63	reinvestment zone that is approved or amended on or after September
64	64	1, 2017, must require the developer of a residential housing
65	65	development located in the zone and funded wholly or partly with
66	66	money from the tax increment fund for the zone to:
67	67	(1) subject to Subsection (f), set aside at least 20
68	68	percent of the planned dwelling units in each residential housing
69	69	development as affordable housing with an affordability period of
70	70	at least 40 years; and
71	71	(2) enter into a contract with the municipality that
72	72	designated the zone to pay the costs of relocating residents of the
73	73	zone and the area adjacent to the zone who are displaced as a direct
74	74	result of the residential housing development.
75	75	(f) As an alternative to the set aside requirement under
76	76	Subsection (e)(1), the municipality that designated the
77	77	reinvestment zone may allow a developer to pay a fee to the
78	78	municipality. The amount of the fee is determined by the
79	79	municipality. The municipality shall deposit the fee in an
80	80	affordable housing fund administered by the governing body of the
81	81	municipality. Money in the fund may be used only to:
82	82	(1) subsidize the cost to the municipality of tax
83	83	abatement agreements entered into under Section 311.0125 with the
84	84	owners of real property located in the zone if:
85	85	(A) the real property subject to the tax
86	86	abatement agreement is the owner's residence homestead; and
87	87	(B) the owner, at the time the tax abatement
88	88	agreement is entered into, has:
89	89	(i) resided in the zone for 10 or more
90	90	years; and
91	91	(ii) a yearly income at or below 60 percent
92	92	of the median family income in the zone, adjusted for family size;
93	93	and
94	94	(2) pay to a qualified for-profit entity or a
95	95	nonprofit entity for the purpose of developing, constructing, or
96	96	preserving affordable housing in the zone and in the area adjacent
97	97	to the zone for families that have a yearly income at or below 60
98	98	percent of the area median family income, adjusted for family size.
99	99	(g) Section 311.0125(b) does not apply to a tax abatement
100	100	agreement described by Subsection (f)(1).
101	101	(h) Notwithstanding any other law, a project or
102	102	reinvestment zone financing plan for a reinvestment zone that is
103	103	approved or amended on or after September 1, 2017, shall provide
104	104	that when money is spent from the tax increment fund for the zone
105	105	for the purpose of making infrastructure improvements in the zone,
106	106	a proportionate amount of money in the fund equal to not more than
107	107	20 percent of that amount must be spent from the fund to provide
108	108	necessary infrastructure improvements in the area adjacent to the
109	109	zone. The plan shall provide that the governing body of the
110	110	municipality that designated the zone determines:
111	111	(1) the proportionate amount to be spent in the area
112	112	adjacent to the zone, subject to the limitation provided by this
113	113	subsection; and
114	114	(2) the infrastructure improvements that are
115	115	necessary in the area adjacent to the zone.
116	116	(i) Notwithstanding Section 1.04(7), in determining the
117	117	market value of a residence homestead that is more than 30 years old
118	118	and located in a reinvestment zone or in the area adjacent to the
119	119	zone, the chief appraiser for the appraisal district in which the
120	120	property is located may exclude from consideration the value of new
121	121	or substantially remodeled residential properties that are located
122	122	in the same neighborhood as the residence homestead being appraised
123	123	and that would otherwise be considered in appraising the residence
124	124	homestead.
125	125	(j) If the municipality that designated the reinvestment
126	126	zone has adopted minimum habitability standards for residential
127	127	housing units in the municipality, the municipality shall develop
128	128	and adopt a plan to provide for the relocation of tenants displaced
129	129	as a result of the enforcement of those standards. The plan must
130	130	provide that the municipality may use any penalties received from
131	131	the owner of the housing unit from which tenants were displaced to
132	132	pay the tenant's relocation costs.
133	133	SECTION 4. Section 311.016, Tax Code, is amended by adding
134	134	Subsection (c) to read as follows:
135	135	(c) In addition to the information required under
136	136	Subsection (a), the annual report for a reinvestment zone described
137	137	by Section 311.0112 must include the following information,
138	138	specific to each neighborhood located in the zone:
139	139	(1) a detailed explanation of each expenditure from
140	140	the tax increment fund established by the zone for affordable
141	141	housing in the neighborhood; and
142	142	(2) an analysis of:
143	143	(A) the effect of each expenditure from the fund
144	144	on the availability of affordable housing in the neighborhood; and
145	145	(B) whether any expenditure from the fund had a
146	146	disparate impact on minority or low-income neighborhood residents.
147	147	SECTION 5. This Act takes effect September 1, 2017.