Texas 2023 - 88th Regular

Texas House Bill HB2071 Compare Versions

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1	1	H.B. No. 2071
2	2
3	3
4	4	AN ACT
5	5	relating to certain public facilities, including public facilities
6	6	used to provide affordable housing.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 303.021, Local Government Code, is
9	9	amended by adding Subsection (d) to read as follows:
10	10	(d) A corporation or a sponsor may finance, own, or operate
11	11	a multifamily residential development only if:
12	12	(1) the corporation or sponsor complies with all
13	13	applicable provisions of this chapter; and
14	14	(2) the development is located:
15	15	(A) inside the area of operation of the sponsor,
16	16	if the sponsor is a housing authority; or
17	17	(B) if the sponsor is not a housing authority,
18	18	inside the boundaries of the sponsor, without regard to whether the
19	19	sponsor is authorized to own property or provide services outside
20	20	the boundaries of the sponsor.
21	21	SECTION 2. Subchapter B, Chapter 303, Local Government
22	22	Code, is amended by adding Section 303.0415 to read as follows:
23	23	Sec. 303.0415. APPLICABILITY OF LAWS RELATING TO CONFLICT
24	24	OF INTEREST. A member of the board of a corporation or a member of
25	25	the governing body of a sponsor of a corporation is subject to the
26	26	same restrictions as a local public official under Chapter 171.
27	27	SECTION 3. The heading to Section 303.042, Local Government
28	28	Code, is amended to read as follows:
29	29	Sec. 303.042. TAXATION; EXEMPTION.
30	30	SECTION 4. Subchapter B, Chapter 303, Local Government
31	31	Code, is amended by adding Section 303.0421, and a heading is added
32	32	to that section to read as follows:
33	33	Sec. 303.0421. MULTIFAMILY RESIDENTIAL DEVELOPMENTS OWNED
34	34	BY PUBLIC FACILITY CORPORATIONS.
35	35	SECTION 5. Section 303.0421, Local Government Code, as
36	36	added by this Act, is amended by adding Subsections (a), (c), (d),
37	37	(g), (h), and (i) to read as follows:
38	38	(a) This section applies to a multifamily residential
39	39	development that is owned by a corporation created under this
40	40	chapter, except that this section does not apply to a multifamily
41	41	residential development that:
42	42	(1) has at least 20 percent of its residential units
43	43	reserved for public housing units;
44	44	(2) participates in the Rental Assistance
45	45	Demonstration program administered by the United States Department
46	46	of Housing and Urban Development;
47	47	(3) receives financial assistance administered under
48	48	Chapter 1372, Government Code, or receives financial assistance
49	49	from another type of tax-exempt bond; or
50	50	(4) receives financial assistance administered under
51	51	Subchapter DD, Chapter 2306, Government Code.
52	52	(c) A multifamily residential development that is owned by a
53	53	corporation created under this chapter by a housing authority and
54	54	to which Subsection (a) applies must hold a public hearing, at a
55	55	meeting of the authority's governing body, to approve the
56	56	development.
57	57	(d) Notwithstanding Subsection (b), an occupied multifamily
58	58	residential development that is acquired by a corporation and to
59	59	which Subsection (a) applies is eligible for an exemption under
60	60	Section 303.042(c) for:
61	61	(1) the one-year period following the date of the
62	62	acquisition, regardless of whether the development complies with
63	63	the requirements of Subsection (b); and
64	64	(2) a year following the year described by Subdivision
65	65	(1) only if the development comes into compliance with the
66	66	requirements of Subsection (b) not later than the first anniversary
67	67	of the date of the acquisition.
68	68	(g) Subsection (f) does not apply to taxes imposed on a
69	69	multifamily residential development by a conservation and
70	70	reclamation district created under Section 52, Article III, or
71	71	Section 59, Article XVI, Texas Constitution, that provides water,
72	72	sewer, or drainage services to the development, unless the
73	73	applicable corporation has entered into a written agreement with
74	74	the district to make a payment to the district in lieu of taxation,
75	75	in the amount specified in the agreement.
76	76	(h) Subject to Subsection (i), an exemption under Section
77	77	303.042(c) for a multifamily residential development to which
78	78	Subsection (a) applies expires:
79	79	(1) for an occupied multifamily residential
80	80	development that is acquired by a corporation, on the 30th
81	81	anniversary of the date of the acquisition by the corporation; and
82	82	(2) for a multifamily residential development not
83	83	described by Subdivision (1), on the 60th anniversary of the date
84	84	the development receives, from the corporation or the corporation's
85	85	sponsor, the final approval under this chapter that is necessary to
86	86	obtain the exemption.
87	87	(i) An exemption under Section 303.042(c) for a multifamily
88	88	residential development to which Subsection (a) applies may be
89	89	extended for the same term of years applicable to the length of the
90	90	development's exemption under Subsection (h) if:
91	91	(1) in the five-year period preceding the expiration
92	92	of the exemption under Subsection (h), the corporation provides
93	93	notice of the extension to the governing body of the municipality in
94	94	which the development is located or, if the development is not
95	95	located in a municipality, the county in which the development is
96	96	located;
97	97	(2) the extension is approved in the same manner as was
98	98	required for the preceding approval of the exemption; and
99	99	(3) the development is in compliance with, and
100	100	maintains compliance with, this section and Section 303.0425.
101	101	SECTION 6. Section 303.042(c), Local Government Code, is
102	102	amended to read as follows:
103	103	(c) Subject to Section 303.0421(h), a [A] corporation is
104	104	engaged exclusively in performance of charitable functions and is
105	105	exempt from taxation by this state or a municipality or other
106	106	political subdivision of this state. Bonds issued by a corporation
107	107	under this chapter, a transfer of the bonds, interest on the bonds,
108	108	and a profit from the sale or exchange of the bonds are exempt from
109	109	taxation by this state or a municipality or other political
110	110	subdivision of this state.
111	111	SECTION 7. Sections 303.042(d), (e), and (f), Local
112	112	Government Code, are transferred to Section 303.0421, Local
113	113	Government Code, as added by this Act, redesignated as Sections
114	114	303.0421(b), (e), and (f), Local Government Code, and amended to
115	115	read as follows:
116	116	(b) Notwithstanding Section 303.042(c) and subject to
117	117	Subsections (c) and (d) of this section, an [(d) An] exemption under
118	118	Section 303.042(c) [this section] for a multifamily residential
119	119	development to which Subsection (a) applies is available [which is
120	120	owned by a public facility corporation created by a housing
121	121	authority under this chapter and which does not have at least 20
122	122	percent of its units reserved for public housing units, applies]
123	123	only if:
124	124	(1) the requirements under Section 303.0425 are met
125	125	[housing authority holds a public hearing, at a regular meeting of
126	126	the authority's governing body, to approve the development]; [and]
127	127	(2) at least:
128	128	(A) 10 percent of the units in the multifamily
129	129	residential development are reserved for occupancy as lower income
130	130	housing units, as defined under Section 303.0425; and
131	131	(B) 40 [50] percent of the units in the
132	132	multifamily residential development are reserved for occupancy as
133	133	moderate income housing units, as defined under Section 303.0425;
134	134	(3) the corporation delivers to the presiding officer
135	135	of the governing body of each taxing unit in which the development
136	136	is to be located written notice of the development, at least 30 days
137	137	before the date:
138	138	(A) the corporation takes action to approve a new
139	139	multifamily residential development or the acquisition of an
140	140	occupied multifamily residential development; and
141	141	(B) of any public hearing required to be held
142	142	under this section;
143	143	(4) if a majority of the members of the board are not
144	144	elected officials, the development is approved by the governing
145	145	body of the municipality in which the development is located or, if
146	146	the development is not located in a municipality, the county in
147	147	which the development is located;
148	148	(5) for an occupied multifamily residential
149	149	development that is acquired by a corporation and not otherwise
150	150	subject to a land use restriction agreement under Section 2306.185,
151	151	Government Code:
152	152	(A) not less than 15 percent of the total gross
153	153	cost of the existing development, as shown in the settlement
154	154	statement, is expended on rehabilitating, renovating,
155	155	reconstructing, or repairing the development, with initial
156	156	expenditures and construction activities:
157	157	(i) beginning not later than the first
158	158	anniversary of the date of the acquisition; and
159	159	(ii) finishing not later than the third
160	160	anniversary of the date of the acquisition; or
161	161	(B) at least 25 percent of the units are reserved
162	162	for occupancy as lower income housing units, as defined under
163	163	Section 303.0425, and the development is approved by the governing
164	164	body of the municipality in which the development is located or, if
165	165	the development is not located in a municipality, the county in
166	166	which the development is located; and
167	167	(6) not less than 30 days before final approval of the
168	168	development:
169	169	(A) the corporation or corporation's sponsor
170	170	conducts, or obtains from a professional entity that has experience
171	171	underwriting affordable multifamily residential developments and
172	172	does not have a financial interest in the applicable development,
173	173	developer, or public facility user, an underwriting assessment of
174	174	the proposed development that allows the corporation to make a good
175	175	faith determination that:
176	176	(i) for an occupied multifamily residential
177	177	development acquired by a corporation, the total annual amount of
178	178	rent reduction on the income-restricted units provided at the
179	179	development will be not less than 60 percent of the estimated amount
180	180	of the annual ad valorem taxes that would be imposed on the property
181	181	without an exemption under Section 303.042(c) for the second,
182	182	third, and fourth years after the date of acquisition by the
183	183	corporation; and
184	184	(ii) for a newly constructed multifamily
185	185	residential development, the development would not be feasible
186	186	without the participation of the corporation; and
187	187	(B) the corporation publishes on its Internet
188	188	website a copy of the underwriting assessment described by
189	189	Paragraph (A) [by individuals and families earning less than 80
190	190	percent of the area median family income].
191	191	(e) For the purposes of Subsection (a) [(d)], a "public
192	192	housing unit" is a residential [dwelling] unit for which the
193	193	landlord receives a public housing operating subsidy. It does not
194	194	include a unit for which payments are made to the landlord under the
195	195	federal Section 8 Housing Choice Voucher Program.
196	196	(f) Notwithstanding Sections 303.042(a) and (b) and except
197	197	as otherwise provided by this section [Subsections (a) and (b)],
198	198	during the period [of time] that a corporation owns a particular
199	199	public facility that is a multifamily residential development:
200	200	(1) [,] a leasehold or other possessory interest in
201	201	the real property of the public facility granted by the corporation
202	202	shall be treated in the same manner as a leasehold or other
203	203	possessory interest in real property granted by an authority under
204	204	Section 379B.011(b); and
205	205	(2) the materials used by a person granted a
206	206	possessory interest described by Subdivision (1) to improve the
207	207	real property of the public facility shall be exempt from all sales
208	208	and use taxes because the materials are for the benefit of the
209	209	corporation.
210	210	SECTION 8. Subchapter B, Chapter 303, Local Government
211	211	Code, is amended by adding Sections 303.0425, 303.0426, and
212	212	303.0427 to read as follows:
213	213	Sec. 303.0425. ADDITIONAL REQUIREMENTS FOR BENEFICIAL TAX
214	214	TREATMENT RELATING TO CERTAIN PUBLIC FACILITIES. (a) In this
215	215	section:
216	216	(1) "Developer" means a private entity that constructs
217	217	a development, including the rehabilitation, renovation,
218	218	reconstruction, or repair of a development.
219	219	(2) "Housing choice voucher program" means the housing
220	220	choice voucher program under Section 8, United States Housing Act
221	221	of 1937 (42 U.S.C. Section 1437f).
222	222	(3) "Lower income housing unit" means a residential
223	223	unit reserved for occupancy by an individual or family earning not
224	224	more than 60 percent of the area median income, adjusted for family
225	225	size, as defined by the United States Department of Housing and
226	226	Urban Development.
227	227	(4) "Moderate income housing unit" means a residential
228	228	unit reserved for occupancy by an individual or family earning not
229	229	more than 80 percent of the area median income, adjusted for family
230	230	size, as defined by the United States Department of Housing and
231	231	Urban Development.
232	232	(5) "Public facility user" means a public-private
233	233	partnership entity or a developer or other private entity that has
234	234	an ownership interest or a leasehold or other possessory interest
235	235	in a public facility that is a multifamily residential development.
236	236	(b) The percentage of lower and moderate income housing
237	237	units reserved in each category of units in the development, based
238	238	on the number of bedrooms per unit, must be the same as the
239	239	percentage of each category of housing units reserved in the
240	240	development as a whole.
241	241	(c) The monthly rent charged per unit may not exceed:
242	242	(1) for a lower income housing unit, 30 percent of 60
243	243	percent of the area median income, adjusted for family size, as
244	244	defined by the United States Department of Housing and Urban
245	245	Development; or
246	246	(2) for a moderate income housing unit, 30 percent of
247	247	80 percent of the area median income, adjusted for family size, as
248	248	defined by the United States Department of Housing and Urban
249	249	Development.
250	250	(d) In calculating the income of an individual or family for
251	251	a lower or moderate income housing unit, the public facility user
252	252	must use the definition of annual income described in 24 C.F.R.
253	253	Section 5.609, as implemented by the United States Department of
254	254	Housing and Urban Development. If the income of a tenant exceeds an
255	255	applicable limit at the time of the renewal of a lease agreement for
256	256	a residential unit, the provisions of Section 42(g)(2)(D), Internal
257	257	Revenue Code of 1986, apply in determining whether the unit may
258	258	still qualify as a lower or moderate income housing unit.
259	259	(e) The public facility user may not:
260	260	(1) refuse to rent a residential unit to an individual
261	261	or family because the individual or family participates in the
262	262	housing choice voucher program; or
263	263	(2) use a financial or minimum income standard that
264	264	requires an individual or family participating in the housing
265	265	choice voucher program to have a monthly income of more than 250
266	266	percent of the individual's or family's share of the total monthly
267	267	rent payable for a unit.
268	268	(f) A public facility user may require an individual or
269	269	family participating in the housing choice voucher program to pay
270	270	the difference between the monthly rent for the applicable unit and
271	271	the amount of the monthly voucher if the amount of the voucher is
272	272	less than the rent.
273	273	(g) A corporation that owns or leases to a public facility
274	274	user a public facility used as a multifamily residential
275	275	development shall publish on its Internet website information about
276	276	the development's:
277	277	(1) compliance with the requirements of this section;
278	278	and
279	279	(2) policies regarding tenant participation in the
280	280	housing choice voucher program.
281	281	(h) The public facility user shall:
282	282	(1) affirmatively market available residential units
283	283	directly to individuals and families participating in the housing
284	284	choice voucher program; and
285	285	(2) notify local housing authorities of the
286	286	multifamily residential development's acceptance of tenants in the
287	287	housing choice voucher program.
288	288	(i) Each lease agreement for a residential unit in a
289	289	multifamily residential development subject to this section must
290	290	provide that:
291	291	(1) the landlord may not retaliate against the tenant
292	292	or the tenant's guests by taking an action because the tenant
293	293	established, attempted to establish, or participated in a tenant
294	294	organization;
295	295	(2) the landlord may only choose to not renew the lease
296	296	if the tenant:
297	297	(A) is in material noncompliance with the lease,
298	298	including nonpayment of rent;
299	299	(B) committed one or more substantial violations
300	300	of the lease;
301	301	(C) failed to provide required information on the
302	302	income, composition, or eligibility of the tenant's household; or
303	303	(D) committed repeated minor violations of the
304	304	lease that:
305	305	(i) disrupt the livability of the property;
306	306	(ii) adversely affect the health and safety
307	307	of any person or the right to quiet enjoyment of the leased premises
308	308	and related development facilities;
309	309	(iii) interfere with the management of the
310	310	development; or
311	311	(iv) have an adverse financial effect on
312	312	the development, including the failure of the tenant to pay rent in
313	313	a timely manner; and
314	314	(3) to not renew the lease, the landlord must serve a
315	315	written notice of proposed nonrenewal on the tenant not later than
316	316	the 30th day before the effective date of nonrenewal.
317	317	(j) A tenant may not waive the protections provided by
318	318	Subsection (i).
319	319	(k) Requirements under this subchapter relating to the
320	320	reservation of income-restricted residential units or income
321	321	restrictions applicable to tenants of a multifamily residential
322	322	development subject to this subchapter must be documented in a land
323	323	use restriction agreement or a similar restrictive instrument that:
324	324	(1) ensures that the applicable restrictions are in
325	325	effect for not less than 10 years; and
326	326	(2) is recorded in the real property records of the
327	327	county in which the development is located.
328	328	(l) An agreement or instrument recorded under Subsection
329	329	(k) may be terminated if the development that is the subject of the
330	330	agreement or instrument:
331	331	(1) is the subject of a foreclosure sale; or
332	332	(2) becomes ineligible for an exemption under Section
333	333	303.042(c) for a reason other than the failure to comply with
334	334	restrictions recorded in the agreement or instrument.
335	335	Sec. 303.0426. AUDIT REQUIREMENTS FOR CERTAIN MULTIFAMILY
336	336	RESIDENTIAL DEVELOPMENTS. (a) In this section:
337	337	(1) "Department" means the Texas Department of Housing
338	338	and Community Affairs.
339	339	(2) "Developer" has the meaning assigned by Section
340	340	303.0425.
341	341	(3) "Public facility user" has the meaning assigned by
342	342	Section 303.0425.
343	343	(b) A public facility user of a multifamily residential
344	344	development claiming an exemption under Section 303.042(c) and to
345	345	which Section 303.0421 applies must annually submit to the
346	346	department and the chief appraiser of the appraisal district in
347	347	which the development is located an audit report for a compliance
348	348	audit, prepared at the expense of the public facility user and
349	349	conducted by an independent auditor or compliance expert with an
350	350	established history of providing similar audits on housing
351	351	compliance matters, to:
352	352	(1) determine whether the public facility user is in
353	353	compliance with Sections 303.0421 and 303.0425; and
354	354	(2) identify the difference in the rent charged for
355	355	income-restricted residential units and the estimated maximum
356	356	market rents that could be charged for those units without the rent
357	357	or income restrictions.
358	358	(c) Not later than the 60th day after the date of receipt of
359	359	the audit conducted under Subsection (b), the department shall
360	360	examine the audit report and publish a report summarizing the
361	361	findings of the audit. The report must:
362	362	(1) be made available on the department's Internet
363	363	website;
364	364	(2) be issued to a public facility user that has an
365	365	interest in a development that is the subject of an audit, the
366	366	comptroller, the applicable corporation, the governing body of the
367	367	corporation's sponsor, and, if the corporation's sponsor is a
368	368	housing authority, the elected officials who appointed the housing
369	369	authority's governing board; and
370	370	(3) describe in detail the nature of any failure to
371	371	comply with the requirements in Sections 303.0421 and 303.0425.
372	372	(d) If an audit report submitted under Subsection (b)
373	373	indicates noncompliance with Sections 303.0421 and 303.0425, a
374	374	public facility user:
375	375	(1) must be given:
376	376	(A) written notice from the department or
377	377	appropriate appraisal district that:
378	378	(i) is provided not later than the 45th day
379	379	after the date a report has been submitted under Subsection (b);
380	380	(ii) specifies the reasons for
381	381	noncompliance;
382	382	(iii) contains at least one option for a
383	383	corrective action to resolve the noncompliance; and
384	384	(iv) informs the public facility user that
385	385	failure to resolve the noncompliance will result in the loss of an
386	386	exemption under Section 303.042(c);
387	387	(B) 60 days after the date notice is received
388	388	under this subdivision, to resolve the matter that is the subject of
389	389	the notice; and
390	390	(C) if a matter that is the subject of a notice
391	391	provided under this subdivision is not resolved to the satisfaction
392	392	of the department and the appropriate appraisal district during the
393	393	period provided by Paragraph (B), a second notice that informs the
394	394	public facility user of the loss of the exemption under Section
395	395	303.042(c) due to noncompliance with Sections 303.0421 and
396	396	303.0425; and
397	397	(2) is considered to be in compliance with Sections
398	398	303.0421 and 303.0425 if notice under Subdivision (1)(A) is not
399	399	provided as specified by Subparagraph (i) of that paragraph.
400	400	(e) An exemption under Section 303.042(c) does not apply for
401	401	a tax year in which a multifamily residential development that is
402	402	owned by a public facility corporation created under this chapter
403	403	is determined by the department based on an audit conducted under
404	404	Subsection (b) to not be in compliance with the requirements of
405	405	Section 303.0421 or 303.0425.
406	406	(f) The initial audit report required by Subsection (b) is
407	407	due not later than June 1 of the year following the first
408	408	anniversary of:
409	409	(1) the date of acquisition for an occupied
410	410	multifamily residential development that is acquired by a
411	411	corporation; or
412	412	(2) the date a new multifamily residential development
413	413	first becomes occupied by one or more tenants.
414	414	(g) Subsequent audit reports following the issuance of the
415	415	initial audit report under Subsection (f) are due not later than
416	416	June 1 of each year.
417	417	(h) An independent auditor or compliance expert may not
418	418	prepare an audit under Subsection (b) for more than three
419	419	consecutive years for the same public facility user. After the
420	420	third consecutive audit, the independent auditor or compliance
421	421	expert may prepare an audit only after the second anniversary of the
422	422	preparation of the third consecutive audit.
423	423	(i) The department shall adopt forms and reporting
424	424	standards for the auditing process.
425	425	(j) An audit conducted under Subsection (b) is subject to
426	426	disclosure under Chapter 552, Government Code, except that
427	427	information containing tenant names, unit numbers, or other tenant
428	428	identifying information may be redacted.
429	429	Sec. 303.0427. STUDY OF TAX EXEMPTIONS FOR MULTIFAMILY
430	430	RESIDENTIAL DEVELOPMENTS OWNED BY PUBLIC FACILITY CORPORATIONS.
431	431	(a) In this section, "board" means the Legislative Budget Board.
432	432	(b) The board shall conduct a study that assesses the
433	433	long-term effects on the state's funding and revenue, including
434	434	funding for public education, of ad valorem tax exemptions and
435	435	sales and use tax exemptions for multifamily housing developments
436	436	under Sections 303.042(c) and 303.0421(f).
437	437	(c) Not later than December 10, 2024, the board shall submit
438	438	to the governor, the lieutenant governor, and the speaker of the
439	439	house of representatives a report on the results of the study. The
440	440	report must include an estimate of:
441	441	(1) the funding or revenue that the state has lost as a
442	442	result of the exemptions; and
443	443	(2) the potential increase in funding or revenue that
444	444	would result from the repeal of the exemptions.
445	445	(d) The board may delegate any authority granted to the
446	446	board under this section that the board determines is necessary to
447	447	conduct the study under this section.
448	448	(e) This section expires January 1, 2025.
449	449	SECTION 9. Section 392.005, Local Government Code, is
450	450	amended by amending Subsections (c) and (d) and adding Subsection
451	451	(c-1) to read as follows:
452	452	(c) An exemption under this section for a multifamily
453	453	residential development which is owned by [(i) a public facility
454	454	corporation created by a housing authority under Chapter 303, (ii)]
455	455	a housing development corporation[,] or [(iii)] a similar entity
456	456	created by a housing authority, other than a public facility
457	457	corporation created by a housing authority under Chapter 303, and
458	458	which does not have at least 20 percent of its residential units
459	459	reserved for public housing units, applies only if:
460	460	(1) the authority holds a public hearing, at a regular
461	461	meeting of the authority's governing body, to approve the
462	462	development; and
463	463	(2) at least 50 percent of the units in the multifamily
464	464	residential development are reserved for occupancy by individuals
465	465	and families earning less than 80 percent of the area median
466	466	[family] income, adjusted for family size.
467	467	(c-1) An exemption under this section for a multifamily
468	468	residential development which is owned by a public facility
469	469	corporation created by a housing authority under Chapter 303
470	470	applies only if:
471	471	(1) at least 50 percent of units in the multifamily
472	472	residential development are reserved for occupancy by individuals
473	473	and families earning not more than 80 percent of the area median
474	474	income, adjusted for family size; and
475	475	(2) the development:
476	476	(A) has at least 20 percent of its residential
477	477	units reserved for public housing units;
478	478	(B) participates in the Rental Assistance
479	479	Demonstration program administered by the United States Department
480	480	of Housing and Urban Development;
481	481	(C) receives financial assistance administered
482	482	under Chapter 1372, Government Code, or receives financial
483	483	assistance from another type of tax-exempt bond; or
484	484	(D) receives financial assistance administered
485	485	under Subchapter DD, Chapter 2306, Government Code.
486	486	(d) For the purposes of Subsections [Subsection] (c) and
487	487	(c-1), a "public housing unit" is a residential [dwelling] unit for
488	488	which the owner receives a public housing operating subsidy. It
489	489	does not include a unit for which payments are made to the landlord
490	490	under the federal Section 8 Housing Choice Voucher Program.
491	491	SECTION 10. (a) Subject to Subsections (b), (c), and (d) of
492	492	this section, Sections 303.0421 and 303.0425, Local Government
493	493	Code, as added by this Act, apply only to a tax imposed for a tax
494	494	year beginning on or after the effective date of this Act.
495	495	(b) Subject to Subsections (c) and (d) of this section,
496	496	Sections 303.0421 and 303.0425, Local Government Code, as added by
497	497	this Act, apply only to a multifamily residential development that
498	498	is approved on or after the effective date of this Act by a public
499	499	facility corporation or the sponsor of a public facility
500	500	corporation, in accordance with Chapter 303, Local Government Code.
501	501	A multifamily residential development that was approved by a public
502	502	facility corporation or the sponsor of a public facility
503	503	corporation before the effective date of this Act is governed by the
504	504	law in effect on the date the development was approved by the
505	505	corporation or sponsor, and the former law is continued in effect
506	506	for that purpose.
507	507	(c) Subject to Subsection (d) of this section, Section
508	508	303.0421(d), Local Government Code, as added by this Act, applies
509	509	only to an occupied multifamily residential development that is
510	510	acquired by a public facility corporation on or after the effective
511	511	date of this Act. An occupied multifamily residential development
512	512	that is acquired by a public facility corporation before the
513	513	effective date of this Act is governed by the law in effect on the
514	514	date the development was acquired by the public facility
515	515	corporation, and the former law is continued in effect for that
516	516	purpose.
517	517	(d) Notwithstanding any other provision of this section:
518	518	(1) Section 303.0426, Local Government Code, as added
519	519	by this Act, applies to all multifamily residential developments to
520	520	which Section 303.0421 applies and with respect to which an
521	521	exemption is sought or claimed under Section 303.042(c); and
522	522	(2) the initial audit report required to be submitted
523	523	under Section 303.0426(b), Local Government Code, as added by this
524	524	Act, for a multifamily residential development that was approved or
525	525	acquired by a public facility corporation before the effective date
526	526	of this Act must be submitted by the later of:
527	527	(A) the date established by Section 303.0426(f),
528	528	Local Government Code, as added by this Act; or
529	529	(B) June 1, 2024.
530	530	SECTION 11. Not later than January 1, 2024, the Texas
531	531	Department of Housing and Community Affairs shall adopt rules
532	532	necessary to implement Section 303.0426, Local Government Code, as
533	533	added by this Act.
534	534	SECTION 12. This Act takes effect immediately if it
535	535	receives a vote of two-thirds of all the members elected to each
536	536	house, as provided by Section 39, Article III, Texas Constitution.
537	537	If this Act does not receive the vote necessary for immediate
538	538	effect, this Act takes effect September 1, 2023.
539	539	______________________________ ______________________________
540	540	President of the Senate Speaker of the House
541	541	I certify that H.B. No. 2071 was passed by the House on April
542	542	26, 2023, by the following vote: Yeas 142, Nays 5, 2 present, not
543	543	voting; and that the House concurred in Senate amendments to H.B.
544	544	No. 2071 on May 25, 2023, by the following vote: Yeas 115, Nays 20,
545	545	3 present, not voting.
546	546	______________________________
547	547	Chief Clerk of the House
548	548	I certify that H.B. No. 2071 was passed by the Senate, with
549	549	amendments, on May 19, 2023, by the following vote: Yeas 28, Nays
550	550	3.
551	551	______________________________
552	552	Secretary of the Senate
553	553	APPROVED: __________________
554	554	Date
555	555	__________________
556	556	Governor