TX
Texas House Bill HB3439

Texas 2021 - 87th Regular

Texas House Bill HB3439 Compare Versions

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1-87R19716 CJC-D
2- By: Deshotel, Guillen H.B. No. 3439
3- Substitute the following for H.B. No. 3439:
4- By: Cole C.S.H.B. No. 3439
1+87R10946 CJC-D
2+ By: Deshotel H.B. No. 3439
53
64
75 A BILL TO BE ENTITLED
86 AN ACT
97 relating to the appraisal for ad valorem tax purposes of certain
108 nonexempt property used for low-income or moderate-income housing.
119 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1210 SECTION 1. Section 23.215, Tax Code, is amended to read as
1311 follows:
1412 Sec. 23.215. APPRAISAL OF CERTAIN NONEXEMPT PROPERTY USED
1513 FOR LOW-INCOME OR MODERATE-INCOME HOUSING. (a) This section
1614 applies only to real property owned by an organization:
1715 (1) for the purpose of renting the property [that on
1816 the effective date of this section was rented] to a low-income or
1917 moderate-income individual or family satisfying the organization's
2018 income eligibility requirements [and that continues to be used for
2119 that purpose];
22- (2) that is or will be [was] financed under the low
23- income housing tax credit program under Subchapter DD, Chapter
24- 2306, Government Code, and subject to a land use restriction
25- agreement under that subchapter;
20+ (2) that was financed under the low income housing tax
21+ credit program under Subchapter DD, Chapter 2306, Government Code,
22+ and is subject to a land use restriction agreement under that
23+ subchapter that has not expired or been terminated;
2624 (3) that does not receive an exemption under Section
2725 11.182 or 11.1825; and
2826 (4) the owner of which has not entered into an
2927 agreement with any taxing unit to make payments to the taxing unit
3028 instead of taxes on the property.
3129 (b) In appraising property that is under construction or
3230 that has not reached stabilized occupancy on January 1 of the tax
3331 year in which the property is appraised, the [The] chief appraiser
34- shall determine the value of [appraise] the property in the manner
35- provided by Section 11.1825(q) using the property's projected
36- income and expenses for the first full year of operation as
37- established and utilized in the underwriting report pertaining to
38- the property prepared by the Texas Department of Housing and
39- Community Affairs under Subchapter DD, Chapter 2306, Government
40- Code, and adjust that value as provided by this subsection to
41- determine the appraised value of the property. For a property under
42- construction on January 1, the chief appraiser shall adjust the
43- value to reflect the percentage of the construction that is
44- complete on January 1. For a property on which construction is
45- complete but that has not reached stabilized occupancy on January
46- 1, the chief appraiser shall adjust the value to reflect the actual
47- occupancy of the property on January 1. For purposes of this
48- subsection, a property is not considered to be under construction
49- if the purpose of the work being performed on the property is the
50- maintenance or rehabilitation of the property.
32+ shall determine the appraised value of [appraise] the property in
33+ the manner provided by Section 11.1825(q), provided that the chief
34+ appraiser shall estimate the property's gross income potential and
35+ operating expenses based on the property's projected income and
36+ expenses for the first full year of operation as established and
37+ utilized in the underwriting report pertaining to the property
38+ prepared by the Texas Department of Housing and Community Affairs
39+ under Subchapter DD, Chapter 2306, Government Code, adjusted as
40+ provided by this subsection. For a property under construction on
41+ January 1, the income and expenses contained in the underwriting
42+ report shall be adjusted by multiplying those amounts by a
43+ fraction, the denominator of which is the total construction budget
44+ for the property and the numerator of which is the total amount
45+ spent in constructing the property as of January 1. For a property
46+ on which construction was completed but that has not reached
47+ stabilized occupancy on January 1, the income and expenses
48+ contained in the underwriting report shall be adjusted to reflect
49+ the actual occupancy of the property on January 1.
5150 (c) In appraising property for the first tax year following
52- the year in which construction on the property is complete and
53- occupancy of the property has stabilized and any tax year
51+ the year in which construction on the property was completed and
52+ occupancy of the property had stabilized and any tax year
5453 subsequent to that year, the chief appraiser shall determine the
5554 appraised value of the property in the manner provided by Section
5655 11.1825(q).
5756 SECTION 2. The change in law made by this Act applies only
5857 to an ad valorem tax year that begins on or after January 1, 2022.
5958 SECTION 3. This Act takes effect January 1, 2022.