| 1 | 1 | | 87R2274 JAM-D |
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| 2 | 2 | | By: González of Dallas H.B. No. 468 |
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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 the authority of certain municipalities to designate an |
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| 8 | 8 | | area as a homestead preservation district and reinvestment zone and |
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| 9 | 9 | | the use of tax increment revenue in that area. |
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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 373A.052(b), Local Government Code, is |
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| 12 | 12 | | amended to read as follows: |
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| 13 | 13 | | (b) To be designated as a district within a municipality |
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| 14 | 14 | | described by Section 373A.003(b) under this subchapter, an area |
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| 15 | 15 | | must be composed of census tracts forming a spatially compact area |
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| 16 | 16 | | [contiguous to a central business district and] with: |
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| 17 | 17 | | (1) fewer than 75,000 residents; and |
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| 18 | 18 | | (2) a median family income that is less than 70 percent |
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| 19 | 19 | | of the area median family income, adjusted for household size, as |
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| 20 | 20 | | determined annually by the United States Department of Housing and |
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| 21 | 21 | | Urban Development [$30,000 according to the last decennial census; |
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| 22 | 22 | | and |
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| 23 | 23 | | [(3) an overall poverty rate that is at least two times |
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| 24 | 24 | | the poverty rate for the entire municipality]. |
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| 25 | 25 | | SECTION 2. Section 373A.1541, Local Government Code, is |
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| 26 | 26 | | amended to read as follows: |
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| 27 | 27 | | Sec. 373A.1541. TAX INCREMENT FINANCING AND ABATEMENT. (a) |
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| 28 | 28 | | Designation of an area as a homestead preservation reinvestment |
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| 29 | 29 | | zone is also designation of the area as a reinvestment zone for tax |
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| 30 | 30 | | increment financing under Chapter 311, Tax Code. |
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| 31 | 31 | | (b) Notwithstanding Section 311.014(d), Tax Code, or any |
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| 32 | 32 | | other law, and subject to any agreement with bondholders, revenue |
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| 33 | 33 | | in a tax increment fund other than a fund established under this |
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| 34 | 34 | | subchapter may be used for projects under this subchapter if: |
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| 35 | 35 | | (1) the revenue was collected with respect to: |
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| 36 | 36 | | (A) a reinvestment zone that was designated under |
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| 37 | 37 | | other law before September 1, 2021; and |
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| 38 | 38 | | (B) an area designated as a homestead |
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| 39 | 39 | | preservation reinvestment zone under this subchapter; and |
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| 40 | 40 | | (2) all project costs, all tax increment bonds or |
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| 41 | 41 | | notes issued for the reinvestment zone for which the revenue was |
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| 42 | 42 | | collected, and any other obligations incurred for that zone have |
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| 43 | 43 | | been paid. |
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| 44 | 44 | | SECTION 3. This Act takes effect September 1, 2021. |
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