| 1 | 1 | | By: Thierry H.B. No. 3654 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the eligibility of certain municipalities to establish |
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| 7 | 7 | | homestead preservation districts and reinvestment zones. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 373A.002, Local Government Code, is |
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| 10 | 10 | | amended by amending Subdivision (3-a) and adding Subdivision (3-b) |
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| 11 | 11 | | to read as follows: |
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| 12 | 12 | | (3-a) "Low income household" means a household with a |
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| 13 | 13 | | gross income of not greater than 80 percent of the area median |
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| 14 | 14 | | family income, adjusted for household size, for the metropolitan |
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| 15 | 15 | | statistical area in which the municipality is located, as |
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| 16 | 16 | | determined annually by the United States Department of Housing and |
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| 17 | 17 | | Urban Development. |
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| 18 | 18 | | (3-b) "Project costs" has the meaning assigned by |
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| 19 | 19 | | Section 311.002(1), Tax Code. |
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| 20 | 20 | | SECTION 2. Section 373A.003(a), Local Government Code, is |
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| 21 | 21 | | amended to read as follows: |
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| 22 | 22 | | (a) This chapter applies to: |
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| 23 | 23 | | (1) a municipality with a population of more than |
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| 24 | 24 | | 750,000 that is located in a uniform state service region with fewer |
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| 25 | 25 | | than 550,000 occupied housing units as determined by the most |
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| 26 | 26 | | recent United States decennial census; and |
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| 27 | 27 | | (2) a municipality with a population of two million or |
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| 28 | 28 | | more. |
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| 29 | 29 | | SECTION 3. Section 373A.052, Local Government Code, is |
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| 30 | 30 | | amended by amending Subsection (a) and adding Subsection (a-1) to |
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| 31 | 31 | | read as follows: |
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| 32 | 32 | | (a) To be designated as a district within a municipality |
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| 33 | 33 | | described by Section 373A.003(a)(1) [373A.003(a)] under this |
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| 34 | 34 | | subchapter, an area must be composed of census tracts forming a |
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| 35 | 35 | | spatially compact area with: |
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| 36 | 36 | | (1) fewer than 75,000 residents; |
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| 37 | 37 | | (2) an overall poverty rate that is at least two times |
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| 38 | 38 | | the poverty rate for the entire municipality; and |
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| 39 | 39 | | (3) in each census tract within the area, a median |
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| 40 | 40 | | family income that is less than 80 percent of the median family |
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| 41 | 41 | | income for the entire municipality. |
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| 42 | 42 | | (a-1) To be designated as a district within a municipality |
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| 43 | 43 | | described by Section 373A.003(a)(2) under this subchapter: |
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| 44 | 44 | | (1) an area must be composed of census tracts forming a |
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| 45 | 45 | | spatially compact area; and |
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| 46 | 46 | | (2) the governing body of the municipality must make |
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| 47 | 47 | | findings by resolution that: |
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| 48 | 48 | | (A) the area will benefit from the inclusion of |
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| 49 | 49 | | low income households; |
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| 50 | 50 | | (B) low-income and moderate-income homeowners |
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| 51 | 51 | | within the area are at risk of losing their homesteads through |
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| 52 | 52 | | displacement; and |
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| 53 | 53 | | (C) the designation will serve one or more |
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| 54 | 54 | | purposes outlined by this chapter. |
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| 55 | 55 | | SECTION 4. Section 373A.203(6), Local Government Code, is |
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| 56 | 56 | | repealed. |
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| 57 | 57 | | SECTION 5. This Act takes effect September 1, 2019. |
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