88R7877 DRS-D
By: Noble, Shaheen, Holland, Leach, Thimesch, H.B. No. 2966
et al.
A BILL TO BE ENTITLED
AN ACT
relating to requirements for beneficial tax treatment related to a
leasehold or other possessory interest in a public facility used to
provide affordable housing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 303.042, Local Government Code, is
amended by amending Subsection (d) and adding Subsection (d-1) to
read as follows:
(d) An exemption under this section for a multifamily
residential development which is owned by a public facility
corporation created [by a housing authority] under this chapter and
which does not have at least 20 percent of its units reserved for
public housing units, applies only if:
(1) the sponsor of the corporation [housing authority]
holds a public hearing, at a regular meeting of the sponsor's
[authority's] governing body, to approve the development; [and]
(2) at least 75 [50] percent of the units in the
multifamily residential development are reserved for occupancy by
individuals and families earning less than 80 percent of the area
median family income, adjusted for family size; and
(3) not later than April 1 of each year, the
corporation submits to the chief appraiser of the appraisal
district in which the development is located an audit report for a
compliance audit conducted by an independent auditor or compliance
expert that establishes that the multifamily residential
development is in compliance with the requirements of this section.
(d-1) An exemption under this section does not apply for a
tax year in which a multifamily residential development that is
owned by a public facility corporation created under this chapter
and that is required to submit an audit report under Subsection (d):
(1) does not submit the required audit report; or
(2) submits an audit report that does not establish
that the development is in compliance with the requirements of this
section.
SECTION 2. The change in law made by Section 303.042, Local
Government Code, as amended by this Act, applies only to a
multifamily residential development that is approved on or after
the effective date of this Act. A multifamily residential
development that is approved before the effective date of this Act
is governed by the law in effect on the date the development was
approved, and the former law is continued in effect for that
purpose.
SECTION 3. This Act takes effect September 1, 2023.