Texas 2019 - 86th Regular

Texas Senate Bill SB1278 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R8060 CJC-D
2	2	By: West S.B. No. 1278
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; authorizing a
9	9	fee.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 311.003, Tax Code, is amended by adding
12	12	Subsection (e) to read as follows:
13	13	(e) Before adopting an ordinance designating a reinvestment
14	14	zone described by Section 311.0112, a municipality must prepare or
15	15	have prepared an affordable housing impact statement. The
16	16	statement must be made available to the public and posted on the
17	17	municipality's Internet website at least 60 days before the
18	18	municipality holds the hearing required under Subsection (c). The
19	19	statement must include estimates of the impact on the availability
20	20	of affordable housing in the area of the proposed zone for the
21	21	30-year period following designation of the proposed zone.
22	22	SECTION 2. Section 311.006(e), Tax Code, is amended to read
23	23	as follows:
24	24	(e) Subsection (a)(1) does not apply to a reinvestment zone:
25	25	(1) designated under Section 311.005(a)(4); or
26	26	(2) described by Section 311.0112.
27	27	SECTION 3. Chapter 311, Tax Code, is amended by adding
28	28	Section 311.0112 to read as follows:
29	29	Sec. 311.0112. PROVISIONS APPLICABLE IN CERTAIN ZONES. (a)
30	30	This section applies only to a reinvestment zone:
31	31	(1) designated by a municipality:
32	32	(A) with a population of 1.18 million or more;
33	33	and
34	34	(B) that is located predominantly in a county
35	35	that has a total area of less than 1,000 square miles; and
36	36	(2) any part of which is located in an area composed of
37	37	census tracts forming a spatially compact area contiguous to a
38	38	central business district with:
39	39	(A) fewer than 75,000 residents;
40	40	(B) a median family income that is less than
41	41	$30,000 according to the last decennial census; and
42	42	(C) an overall poverty rate that is at least two
43	43	times the poverty rate for the entire municipality that designated
44	44	the zone.
45	45	(b) For purposes of this section, an area adjacent to a
46	46	reinvestment zone means any area within two miles of the zone's
47	47	boundaries in any direction that is not located within the
48	48	boundaries of another reinvestment zone.
49	49	(c) Subject to Subsection (d), at least 20 percent of the
50	50	revenue from the tax increment fund of the reinvestment zone spent
51	51	annually must be for the development, construction, and
52	52	preservation of affordable housing in the zone and in the area
53	53	adjacent to the zone. Of that amount:
54	54	(1) at least 75 percent must be spent to benefit
55	55	families that have a yearly income at or below 60 percent of the
56	56	area median family income, adjusted for family size; and
57	57	(2) not more than 10 percent may be used to pay
58	58	administrative costs.
59	59	(d) Subsection (c) does not apply if the use of the revenue
60	60	in the tax increment fund in the manner required by that subsection
61	61	would materially impair the security for bonds or notes issued
62	62	under Section 311.015 before September 1, 2019.
63	63	(e) A project or reinvestment zone financing plan for a
64	64	reinvestment zone that is approved or amended on or after September
65	65	1, 2019, must require the developer of a residential housing
66	66	development located in the zone and funded wholly or partly with
67	67	money from the tax increment fund for the zone to:
68	68	(1) subject to Subsection (f), set aside at least 20
69	69	percent of the planned dwelling units in each residential housing
70	70	development as affordable housing with an affordability period of
71	71	at least 40 years; and
72	72	(2) enter into a contract with the municipality that
73	73	designated the zone to pay the costs of relocating residents of the
74	74	zone and the area adjacent to the zone who are displaced as a direct
75	75	result of the residential housing development.
76	76	(f) As an alternative to the set-aside requirement under
77	77	Subsection (e)(1), the municipality that designated the
78	78	reinvestment zone may allow a developer to pay a fee to the
79	79	municipality. The amount of the fee is determined by the
80	80	municipality. The municipality shall deposit the fee in an
81	81	affordable housing fund administered by the governing body of the
82	82	municipality. Money in the fund may be used only to:
83	83	(1) subsidize the cost to the municipality of tax
84	84	abatement agreements entered into under Section 311.0125 with the
85	85	owners of real property located in the zone if:
86	86	(A) the real property subject to the tax
87	87	abatement agreement is the owner's residence homestead; and
88	88	(B) the owner, at the time the tax abatement
89	89	agreement is entered into, has:
90	90	(i) resided in the zone for 10 or more
91	91	years; and
92	92	(ii) a yearly income at or below 60 percent
93	93	of the median family income in the zone, adjusted for family size;
94	94	and
95	95	(2) pay to a qualified for-profit entity or a
96	96	nonprofit entity for the purpose of developing, constructing, or
97	97	preserving affordable housing in the zone and in the area adjacent
98	98	to the zone for families that have a yearly income at or below 60
99	99	percent of the area median family income, adjusted for family size.
100	100	(g) Section 311.0125(b) does not apply to a tax abatement
101	101	agreement described by Subsection (f)(1).
102	102	(h) Notwithstanding any other law, a project or
103	103	reinvestment zone financing plan for a reinvestment zone that is
104	104	approved or amended on or after September 1, 2019, shall provide
105	105	that when money is spent from the tax increment fund for the zone
106	106	for the purpose of making infrastructure improvements in the zone,
107	107	a proportionate amount of money in the fund equal to not more than
108	108	20 percent of that amount must be spent from the fund to provide
109	109	necessary infrastructure improvements in the area adjacent to the
110	110	zone. The plan shall provide that the governing body of the
111	111	municipality that designated the zone determines:
112	112	(1) the proportionate amount to be spent in the area
113	113	adjacent to the zone, subject to the limitation provided by this
114	114	subsection; and
115	115	(2) the infrastructure improvements that are
116	116	necessary in the area adjacent to the zone.
117	117	(i) Notwithstanding Section 1.04(7), in determining the
118	118	market value of a residence homestead that is more than 30 years old
119	119	and located in a reinvestment zone or in the area adjacent to the
120	120	zone, the chief appraiser for the appraisal district in which the
121	121	property is located may exclude from consideration the value of new
122	122	or substantially remodeled residential properties that are located
123	123	in the same neighborhood as the residence homestead being appraised
124	124	and that would otherwise be considered in appraising the residence
125	125	homestead.
126	126	(j) If the municipality that designated the reinvestment
127	127	zone has adopted minimum habitability standards for residential
128	128	housing units in the municipality, the municipality shall develop
129	129	and adopt a plan to provide for the relocation of tenants displaced
130	130	as a result of the enforcement of those standards. The plan must
131	131	provide that the municipality may use any penalties received from
132	132	the owner of the housing unit from which tenants were displaced to
133	133	pay the tenant's relocation costs.
134	134	SECTION 4. Section 311.016, Tax Code, is amended by adding
135	135	Subsection (c) to read as follows:
136	136	(c) In addition to the information required under
137	137	Subsection (a), the annual report for a reinvestment zone described
138	138	by Section 311.0112 must include the following information,
139	139	specific to each neighborhood located in the zone:
140	140	(1) a detailed explanation of each expenditure from
141	141	the tax increment fund established by the zone for affordable
142	142	housing in the neighborhood; and
143	143	(2) an analysis of:
144	144	(A) the effect of each expenditure from the fund
145	145	on the availability of affordable housing in the neighborhood; and
146	146	(B) whether any expenditure from the fund had a
147	147	disparate impact on minority or low-income neighborhood residents.
148	148	SECTION 5. This Act takes effect September 1, 2019.