Texas House Bill HB3439

Texas 2021 - 87th Regular

Caption

Relating to the appraisal for ad valorem tax purposes of certain nonexempt property used for low-income or moderate-income housing.

Impact

The enactment of HB3439 is expected to positively impact developers and organizations focused on low-income housing by creating a more predictable and fair appraisal system. This approach could alleviate some financial pressures associated with high property taxes on housing meant for lower-income families. Additionally, it may encourage further investment in low-income housing projects throughout the state, thereby addressing housing shortages in these demographics.

Summary

House Bill 3439 aims to modify the appraisal process for nonexempt property intended for low-income or moderate-income housing. This bill specifically requires the chief appraiser to assess the value of such properties based on projected income and expenses, utilizing underwriting reports prepared by the Texas Department of Housing and Community Affairs. The bill aims to ensure that properties that serve these communities are appraised fairly, reflecting their operational realities rather than solely their market potential.

Sentiment

Sentiments surrounding the bill appear largely supportive, especially among lawmakers and stakeholders advocating for affordable housing solutions. Proponents argue the bill represents a step toward increasing housing accessibility for low- and moderate-income individuals. However, there may also be concerns expressed about the long-term implications for tax revenues and whether sufficient safeguards are in place to ensure that the properties remain genuinely affordable.

Contention

A notable point of contention arises around the balance between tax revenue generation and the need for affordable housing. Critics may argue that such a shift in appraisal methods could lead to diminished tax income for local governments, which rely on these revenues for essential services. Furthermore, ensuring that these properties remain compliant with the intended purpose of supporting low-income families versus potential exploitation by developers seeking tax benefits is also a critical aspect of the ongoing discussion surrounding this bill.