Texas 2021 - 87th Regular

Texas House Bill HB467 Compare Versions

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

Old	New	Differences
1	1	87R1570 CJC-D
2	2	By: González of Dallas H.B. No. 467
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 that:
37	37	(A) has fewer than 75,000 residents;
38	38	(B) is contiguous to a central business district;
39	39	and
40	40	(C) is composed of census tracts:
41	41	(i) that form a spatially compact area; and
42	42	(ii) in each of which the median family
43	43	income is at or below 80 percent of the area median family income,
44	44	adjusted for household size, as determined annually by the United
45	45	States Department of Housing and Urban Development.
46	46	(b) For purposes of this section, an area adjacent to a
47	47	reinvestment zone means any area within two miles of the zone's
48	48	boundaries in any direction that is not located within the
49	49	boundaries of another reinvestment zone.
50	50	(c) Subject to Subsection (d), at least 20 percent of the
51	51	revenue from the tax increment fund of the reinvestment zone spent
52	52	annually must be for the development, construction, and
53	53	preservation of affordable housing in the zone and in the area
54	54	adjacent to the zone. Of that amount:
55	55	(1) at least 75 percent must be spent to benefit
56	56	families that have a yearly income at or below 80 percent of the
57	57	area median family income, adjusted for household size, as
58	58	determined annually by the United States Department of Housing and
59	59	Urban Development; and
60	60	(2) not more than 10 percent may be used to pay
61	61	administrative costs.
62	62	(d) Subsection (c) does not apply if the use of the revenue
63	63	in the tax increment fund in the manner required by that subsection
64	64	would materially impair the security for bonds or notes issued
65	65	under Section 311.015 before September 1, 2021.
66	66	(e) A project or reinvestment zone financing plan for a
67	67	reinvestment zone that is approved or amended on or after September
68	68	1, 2021, must require the developer of a residential housing
69	69	development located in the zone and funded wholly or partly with
70	70	money from the tax increment fund for the zone to:
71	71	(1) subject to Subsection (f), set aside at least 20
72	72	percent of the planned dwelling units in each residential housing
73	73	development as affordable housing with an affordability period of
74	74	at least 40 years; and
75	75	(2) enter into a contract with the municipality that
76	76	designated the zone to pay the costs of relocating residents of the
77	77	zone and the area adjacent to the zone who are displaced as a direct
78	78	result of the residential housing development.
79	79	(f) As an alternative to the set-aside requirement under
80	80	Subsection (e)(1), the municipality that designated the
81	81	reinvestment zone may allow a developer to pay a fee to the
82	82	municipality. The amount of the fee is determined by the
83	83	municipality. The municipality shall deposit the fee in an
84	84	affordable housing fund administered by the governing body of the
85	85	municipality. Money in the fund may be used only to:
86	86	(1) subsidize the cost to the municipality of tax
87	87	abatement agreements entered into under Section 311.0125 with the
88	88	owners of real property located in the zone if:
89	89	(A) the real property subject to the tax
90	90	abatement agreement is the owner's residence homestead; and
91	91	(B) the owner, at the time the tax abatement
92	92	agreement is entered into, has:
93	93	(i) resided in the zone for 10 or more
94	94	years; and
95	95	(ii) a yearly income at or below 80 percent
96	96	of the median family income in the zone, adjusted for household
97	97	size, as determined annually by the United States Department of
98	98	Housing and Urban Development; and
99	99	(2) pay to a qualified for-profit entity or a
100	100	nonprofit entity for the purpose of developing, constructing, or
101	101	preserving affordable housing in the zone and in the area adjacent
102	102	to the zone for families that have a yearly income at or below 80
103	103	percent of the area median family income, adjusted for household
104	104	size, as determined annually by the United States Department of
105	105	Housing and Urban Development.
106	106	(g) Section 311.0125(b) does not apply to a tax abatement
107	107	agreement described by Subsection (f)(1).
108	108	(h) Notwithstanding any other law, a project or
109	109	reinvestment zone financing plan for a reinvestment zone that is
110	110	approved or amended on or after September 1, 2021, shall provide
111	111	that when money is spent from the tax increment fund for the zone
112	112	for the purpose of making infrastructure improvements in the zone,
113	113	a proportionate amount of money in the fund equal to not more than
114	114	20 percent of that amount must be spent from the fund to provide
115	115	necessary infrastructure improvements in the area adjacent to the
116	116	zone. The plan shall provide that the governing body of the
117	117	municipality that designated the zone determines:
118	118	(1) the proportionate amount to be spent in the area
119	119	adjacent to the zone, subject to the limitation provided by this
120	120	subsection; and
121	121	(2) the infrastructure improvements that are
122	122	necessary in the area adjacent to the zone.
123	123	(i) Notwithstanding Section 1.04(7), in determining the
124	124	market value of a residence homestead that is more than 30 years old
125	125	and located in a reinvestment zone or in the area adjacent to the
126	126	zone, the chief appraiser for the appraisal district in which the
127	127	property is located may exclude from consideration the value of new
128	128	or substantially remodeled residential properties that are located
129	129	in the same neighborhood as the residence homestead being appraised
130	130	and that would otherwise be considered in appraising the residence
131	131	homestead.
132	132	(j) If the municipality that designated the reinvestment
133	133	zone has adopted minimum habitability standards for residential
134	134	housing units in the municipality, the municipality shall develop
135	135	and adopt a plan to provide for the relocation of tenants displaced
136	136	as a result of the enforcement of those standards. The plan must
137	137	provide that the municipality may use any penalties received from
138	138	the owner of the housing unit from which tenants were displaced to
139	139	pay the tenant's relocation costs.
140	140	SECTION 4. Section 311.016, Tax Code, is amended by adding
141	141	Subsection (c) to read as follows:
142	142	(c) In addition to the information required under
143	143	Subsection (a), the annual report for a reinvestment zone described
144	144	by Section 311.0112 must include the following information,
145	145	specific to each neighborhood located in the zone:
146	146	(1) a detailed explanation of each expenditure from
147	147	the tax increment fund established by the zone for affordable
148	148	housing in the neighborhood; and
149	149	(2) an analysis of:
150	150	(A) the effect of each expenditure from the fund
151	151	on the availability of affordable housing in the neighborhood; and
152	152	(B) whether any expenditure from the fund had a
153	153	disparate impact on minority or low-income neighborhood residents.
154	154	SECTION 5. This Act takes effect September 1, 2021.