Texas 2023 - 88th Regular

Texas House Bill HB1556 Compare Versions

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Version 2 (New)

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1	1	88R5950 DRS-D
2	2	By: Rosenthal H.B. No. 1556
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to requirements for beneficial tax treatment related to a
8	8	leasehold or other possessory interest in a public facility used to
9	9	provide affordable housing.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 303.042(f), Local Government Code, is
12	12	amended to read as follows:
13	13	(f) Notwithstanding Subsections (a) and (b), during the
14	14	period of time that a corporation owns a particular public
15	15	facility, a leasehold or other possessory interest in the real
16	16	property of the public facility granted by the corporation shall be
17	17	treated in the same manner as a leasehold or other possessory
18	18	interest in real property granted by an authority under Section
19	19	379B.011(b) if the requirements under Subchapter F are met.
20	20	SECTION 2. Chapter 303, Local Government Code, is amended
21	21	by adding Subchapter F to read as follows:
22	22	SUBCHAPTER F. REQUIREMENTS FOR BENEFICIAL TAX TREATMENT RELATED TO
23	23	AFFORDABLE HOUSING
24	24	Sec. 303.201. DEFINITIONS. In this subchapter:
25	25	(1) "Affordable housing unit" means a residential unit
26	26	reserved for occupancy by an individual or family earning not more
27	27	than 80 percent of the area median income, adjusted for family size.
28	28	(2) "Department" means the Texas Department of Housing
29	29	and Community Affairs.
30	30	(3) "Developer" means a private entity that constructs
31	31	or rehabilitates a development.
32	32	(4) "Housing choice voucher program" means the housing
33	33	choice voucher program under Section 8, United States Housing Act
34	34	of 1937 (42 U.S.C. Section 1437f).
35	35	(5) "Housing development" means a development
36	36	constructed or rehabilitated to provide multifamily housing that
37	37	includes affordable housing units.
38	38	(6) "Public facility user" means a developer or other
39	39	private entity that has a leasehold or other possessory interest in
40	40	a public facility used to provide multifamily housing.
41	41	Sec. 303.202. COMPLIANCE WITH SUBCHAPTER REQUIRED FOR
42	42	BENEFICIAL TAX TREATMENT FOR CERTAIN PUBLIC FACILITIES. (a)
43	43	Section 303.042(f) applies to a leasehold or other possessory
44	44	interest in a public facility only if the sponsor, the corporation,
45	45	the public facility user, and the housing development meet the
46	46	requirements of this subchapter, as applicable.
47	47	(b) The requirements prescribed by this subchapter apply
48	48	only to the application of taxes related to a leasehold or other
49	49	possessory interest in a public facility under Section 303.042(f)
50	50	and do not restrict the authority of a corporation to lease a public
51	51	facility to a private entity under terms other than the terms
52	52	described by this subchapter.
53	53	Sec. 303.203. SPONSOR GOALS; REQUEST FOR PROPOSALS. (a) A
54	54	sponsor shall identify goals for public facilities used for housing
55	55	developments and establish selection criteria based on the goals to
56	56	be used by corporations for scoring proposals from developers of
57	57	housing developments.
58	58	(b) A corporation must issue a request for proposals from
59	59	developers before the corporation enters into a lease agreement for
60	60	a public facility with a developer for the purpose of constructing
61	61	or rehabilitating a housing development.
62	62	Sec. 303.204. REHABILITATION REQUIREMENTS. If a developer
63	63	substantially rehabilitates an existing multifamily residential
64	64	property that is a public facility leased by the developer, the
65	65	original construction of the property must have been completed at
66	66	least 10 years before the date the developer begins rehabilitation
67	67	of the property.
68	68	Sec. 303.205. RESERVATION REQUIREMENTS. (a) A public
69	69	facility user must reserve:
70	70	(1) at least 50 percent of the total units in a housing
71	71	development as affordable housing units;
72	72	(2) at least 50 percent of the affordable housing
73	73	units in the development for occupancy by individuals or families
74	74	earning not more than 60 percent of area median income, adjusted for
75	75	family size; and
76	76	(3) at least 20 percent of the affordable housing
77	77	units in the development for occupancy by individuals or families
78	78	participating in the housing choice voucher program if the
79	79	development is located:
80	80	(A) in the attendance zone of an elementary
81	81	school that has passed accountability standards adopted by the
82	82	Texas Education Agency for the most recent school year available;
83	83	(B) in the attendance zone of a high school with a
84	84	graduation rate of at least 85 percent; and
85	85	(C) in a census tract in which:
86	86	(i) fewer than 10 percent of the households
87	87	have a household income equal to or less than the federal poverty
88	88	line; and
89	89	(ii) the median income for households is
90	90	equal to or greater than 80 percent of area median income.
91	91	(b) The percentage of affordable housing units reserved in
92	92	each category of units in the housing development, based on the
93	93	number of bedrooms and bathrooms per unit, must be the same as the
94	94	percentage of affordable housing units reserved in the housing
95	95	development as a whole.
96	96	Sec. 303.206. RENT LIMITATIONS. The monthly rent charged
97	97	by a public facility user for an affordable housing unit may not
98	98	exceed:
99	99	(1) 30 percent of 80 percent of area median income,
100	100	minus an allowance for utility costs, if the individual or family
101	101	renting the unit earns more than 60 percent but not more than 80
102	102	percent of the area median income, adjusted for family size; and
103	103	(2) 30 percent of 60 percent of area median income,
104	104	minus an allowance for utility costs, if the individual or family
105	105	renting the unit earns not more than 60 percent of the area median
106	106	income, adjusted for family size.
107	107	Sec. 303.207. CALCULATION OF INCOME. In calculating the
108	108	income of an individual or family for an affordable housing unit,
109	109	the public facility user must consider the income of every
110	110	individual who will be living in the unit.
111	111	Sec. 303.208. PUBLIC FACILITY PROHIBITIONS. A public
112	112	facility user may not:
113	113	(1) refuse to rent an affordable housing unit to an
114	114	individual or family because the individual or family participates
115	115	in the housing choice voucher program; or
116	116	(2) use a financial or minimum income standard that
117	117	requires an individual or family participating in the housing
118	118	choice voucher program to have a monthly income of more than 250
119	119	percent of the individual's or family's share of the total monthly
120	120	rent payable for an affordable housing unit.
121	121	Sec. 303.209. HOUSING AUTHORITY DUTIES. A housing
122	122	authority that sponsors a corporation that leases a public facility
123	123	used as a housing development to a public facility user shall:
124	124	(1) publish information about the affordable housing
125	125	units in the housing development on its Internet website, if the
126	126	authority maintains a website; and
127	127	(2) provide information about the affordable housing
128	128	units directly to individuals and families participating in the
129	129	authority's housing choice voucher program.
130	130	Sec. 303.210. REPORTS. (a) Not later than February 1 of
131	131	each year, a public facility user of a housing development must
132	132	submit to the chief appraiser of the appraisal district in which the
133	133	housing development is located an audit report for a compliance
134	134	audit conducted by an independent auditor to determine whether the
135	135	public facility user is in compliance with:
136	136	(1) all contracts and other agreements between the
137	137	public facility user and the sponsor or corporation relating to the
138	138	housing development; and
139	139	(2) all applicable state and local laws, including the
140	140	requirements of this subchapter.
141	141	(b) The sponsor of a corporation that leases a public
142	142	facility used as a housing development to a public facility user
143	143	shall submit an annual report to the department and to the
144	144	comptroller. The report must include:
145	145	(1) a copy of all contracts and other agreements
146	146	between the public facility user and the sponsor or corporation
147	147	relating to the housing development; and
148	148	(2) statistics describing the demographics of the
149	149	residents of the housing development, including incomes and family
150	150	sizes.
151	151	(c) The department and the comptroller shall each post a
152	152	copy of a report received under Subsection (b) on their respective
153	153	Internet websites.
154	154	(d) The governing board of the department shall adopt rules
155	155	and forms necessary to implement Subsection (b).
156	156	SECTION 3. Subchapter F, Chapter 303, Local Government
157	157	Code, as added by this Act, applies only to a leasehold or other
158	158	possessory interest in a public facility granted by a public
159	159	facility corporation to a public facility user, as defined by that
160	160	subchapter, on or after the effective date of this Act.
161	161	SECTION 4. As soon as practicable after the effective date
162	162	of this Act, the governing board of the Texas Department of Housing
163	163	and Community Affairs shall adopt rules as necessary to implement
164	164	Section 303.210(b), Local Government Code, as added by this Act.
165	165	SECTION 5. This Act takes effect September 1, 2023.