| 1 | 1 | | 87R5927 JAM-D |
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| 2 | 2 | | By: Murphy H.B. No. 1604 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to requirements for beneficial tax treatment related to a |
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| 8 | 8 | | leasehold or other possessory interest in a public facility used to |
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| 9 | 9 | | provide affordable housing. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 303.042, Local Government Code, is |
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| 12 | 12 | | amended by amending Subsection (d) and adding Subsection (d-1) to |
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| 13 | 13 | | read as follows: |
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| 14 | 14 | | (d) An exemption under this section for a multifamily |
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| 15 | 15 | | residential development which is owned by a public facility |
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| 16 | 16 | | corporation created by a housing authority under this chapter and |
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| 17 | 17 | | which does not have at least 20 percent of its units reserved for |
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| 18 | 18 | | public housing units, applies only if: |
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| 19 | 19 | | (1) the housing authority holds a public hearing, at a |
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| 20 | 20 | | regular meeting of the authority's governing body, to approve the |
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| 21 | 21 | | development; [and] |
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| 22 | 22 | | (2) a resolution approving the development is adopted |
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| 23 | 23 | | by the governing body of each governmental unit authorized by law to |
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| 24 | 24 | | impose taxes on the property containing the development; and |
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| 25 | 25 | | (3) at least: |
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| 26 | 26 | | (A) 50 percent of the units in the multifamily |
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| 27 | 27 | | residential development are reserved for occupancy by individuals |
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| 28 | 28 | | and families earning less than 80 percent of the area median family |
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| 29 | 29 | | income; |
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| 30 | 30 | | (B) 12.5 percent of the units in the multifamily |
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| 31 | 31 | | residential development are reserved for occupancy by individuals |
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| 32 | 32 | | and families earning less than 60 percent of the area median family |
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| 33 | 33 | | income; and |
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| 34 | 34 | | (C) 12.5 percent of the units in the multifamily |
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| 35 | 35 | | residential development are reserved for occupancy by individuals |
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| 36 | 36 | | and families earning less than 30 percent of the area median family |
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| 37 | 37 | | income. |
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| 38 | 38 | | (d-1) The operator of a multifamily residential development |
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| 39 | 39 | | described by Subjection (d) may not base any refusal to rent a unit |
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| 40 | 40 | | to an individual or family on the individual's or family's |
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| 41 | 41 | | participation in the federal Section 8 Housing Choice Voucher |
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| 42 | 42 | | Program. |
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| 43 | 43 | | SECTION 2. The change in law made by Section 303.042(d), |
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| 44 | 44 | | Local Government Code, as amended by this Act, applies only to a |
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| 45 | 45 | | multifamily residential development that is approved by a housing |
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| 46 | 46 | | authority on or after the effective date of this Act. A multifamily |
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| 47 | 47 | | residential development that is approved by a housing authority |
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| 48 | 48 | | before the effective date of this Act is governed by the law in |
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| 49 | 49 | | effect on the date the development was approved, and the former law |
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| 50 | 50 | | is continued in effect for that purpose. |
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| 51 | 51 | | SECTION 3. This Act takes effect September 1, 2021. |
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