Texas 2025 - 89th Regular

Texas House Bill HB3792 Compare Versions

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

Old	New	Differences
1	1	89R8430 JAM/DRS-F
2	2	By: Talarico H.B. No. 3792
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the identification, use, and taxation of surplus state
10	10	property suitable for the development of affordable housing.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter E, Chapter 31, Natural Resources
13	13	Code, is amended by adding Section 31.1555 to read as follows:
14	14	Sec. 31.1555. SURPLUS STATE PROPERTY INVENTORY. (a) In
15	15	this section:
16	16	(1) "Department" means the Texas Department of Housing
17	17	and Community Affairs.
18	18	(2) "Surplus state property" means unused or underused
19	19	state property, including unimproved real property, historic
20	20	buildings, residential buildings, and commercial buildings.
21	21	(b) The land office shall establish a digitized inventory of
22	22	surplus state property located in:
23	23	(1) municipalities with a population of 25,000 or
24	24	more; or
25	25	(2) counties with a population of 50,000 or more.
26	26	(c) The land office, in consultation with the department,
27	27	shall:
28	28	(1) identify from the inventory established under
29	29	Subsection (b) any surplus state property that may feasibly be
30	30	developed to provide affordable housing; and
31	31	(2) develop and make available a comprehensive map
32	32	that:
33	33	(A) contains the properties identified under
34	34	Subdivision (1); and
35	35	(B) is overlaid with graphical representation of
36	36	the areas of the state where affordable housing is feasible and
37	37	impactful, where the relative degrees of feasibility and impact are
38	38	indicated by different colors on the map.
39	39	(d) To identify suitable properties under Subsection
40	40	(c)(1), the land office and department jointly shall develop a
41	41	process that analyzes and ranks properties based on criteria
42	42	including:
43	43	(1) the economic feasibility of the potential
44	44	development based on:
45	45	(A) a property's size, shape, grading, and lack
46	46	of development constraints;
47	47	(B) a property's proximity to job centers,
48	48	education, high-frequency public transportation networks,
49	49	utilities, and other services and amenities; and
50	50	(C) whether a property is adjacent to other
51	51	properties in a manner that would allow for consolidation of those
52	52	properties into a larger parcel of property considered appropriate
53	53	for affordable housing; and
54	54	(2) a property's location with respect to areas where
55	55	the underproduction of housing is having the greatest effect on
56	56	housing affordability as demonstrated by the lack of availability
57	57	of affordable housing, the gap between supply and demand for
58	58	affordable housing, and the rate of increase in rents.
59	59	(e) The land office, in consultation with the department,
60	60	shall issue requests for proposals from developers of affordable
61	61	housing for long-term ground leases of surplus state property
62	62	identified under Subsection (c)(1) for the purpose of developing
63	63	affordable housing on those properties. The proposals must
64	64	address:
65	65	(1) the number of residential rental units to be built
66	66	and maintained for occupancy as affordable units;
67	67	(2) the maximization of the natural resources of the
68	68	property;
69	69	(3) levels of affordability of residential rental
70	70	units in the development;
71	71	(4) the feasibility of:
72	72	(A) breaking ground not later than the second
73	73	anniversary of the date the developer enters the lease; and
74	74	(B) completing the development not later than the
75	75	third anniversary of the date the developer enters the lease;
76	76	(5) the cost of construction for each residential
77	77	rental unit built; and
78	78	(6) the developer's demonstrated capacity to complete
79	79	affordable housing projects.
80	80	(f) Surplus state property identified under Subsection
81	81	(c)(1) may be exchanged for other real property of a local
82	82	governmental entity if the exchange:
83	83	(1) facilitates the provision of affordable housing by
84	84	that local governmental entity; and
85	85	(2) is conducted in accordance with rules jointly
86	86	adopted by the land office and the department governing an exchange
87	87	of real property under this subsection, including rules adopted to
88	88	ensure that the primary purpose of a property exchange is to provide
89	89	affordable housing in this state.
90	90	SECTION 2. Section 25.07, Tax Code, is amended by amending
91	91	Subsection (b) and adding Subsection (f) to read as follows:
92	92	(b) Except as provided by Sections 11.11(b) and (c), a
93	93	leasehold or other possessory interest in exempt property may not
94	94	be listed if:
95	95	(1) the property is permanent university fund land;
96	96	(2) the property is county public school fund
97	97	agricultural land;
98	98	(3) the property is a part of a public transportation
99	99	facility owned by a municipality or county and:
100	100	(A) is an airport passenger terminal building or
101	101	a building used primarily for maintenance of aircraft or other
102	102	aircraft services, for aircraft equipment storage, or for air
103	103	cargo;
104	104	(B) is an airport fueling system facility;
105	105	(C) is in a foreign-trade zone:
106	106	(i) that has been granted to a joint airport
107	107	board under Subchapter C, Chapter 681, Business & Commerce Code;
108	108	(ii) the area of which in the portion of the
109	109	zone located in the airport operated by the joint airport board does
110	110	not exceed 2,500 acres; and
111	111	(iii) that is established and operating
112	112	pursuant to federal law; or
113	113	(D)(i) is in a foreign trade zone established
114	114	pursuant to federal law after June 1, 1991, that operates pursuant
115	115	to federal law;
116	116	(ii) is contiguous to or has access via a
117	117	taxiway to an airport located in two counties, one of which has a
118	118	population of 500,000 or more according to the federal decennial
119	119	census most recently preceding the establishment of the foreign
120	120	trade zone; and
121	121	(iii) is owned, directly or through a
122	122	corporation organized under the Development Corporation Act
123	123	(Subtitle C1, Title 12, Local Government Code), by the same
124	124	municipality that owns the airport;
125	125	(4) the interest is in a part of:
126	126	(A) a park, market, fairground, or similar public
127	127	facility that is owned by a municipality; or
128	128	(B) a convention center, visitor center, sports
129	129	facility with permanent seating, concert hall, arena, or stadium
130	130	that is owned by a municipality as such leasehold or possessory
131	131	interest serves a governmental, municipal, or public purpose or
132	132	function when the facility is open to the public, regardless of
133	133	whether a fee is charged for admission;
134	134	(5) the interest involves only the right to use the
135	135	property for grazing or other agricultural purposes;
136	136	(6) the property is:
137	137	(A) owned by a municipality, a public port, or a
138	138	navigation district created or operating under Section 59, Article
139	139	XVI, Texas Constitution, or under a statute enacted under Section
140	140	59, Article XVI, Texas Constitution; and
141	141	(B) used as an aid or facility incidental to or
142	142	useful in the operation or development of a port or waterway or in
143	143	aid of navigation-related commerce; [or]
144	144	(7) the property is part of a rail facility owned by a
145	145	rural rail transportation district operating under Chapter 172,
146	146	Transportation Code; or
147	147	(8) subject to Subsection (f), the property is surplus
148	148	state property identified by the General Land Office in
149	149	consultation with the Texas Department of Housing and Community
150	150	Affairs under Section 31.1555(c)(1), Natural Resources Code, as
151	151	suitable to be developed to provide affordable housing and the
152	152	owner of the possessory interest agrees in writing to:
153	153	(A) develop affordable housing on the property
154	154	pursuant to the terms of a long-term ground lease with the General
155	155	Land Office; and
156	156	(B) rent at least 30 percent of the residential
157	157	rental units to individuals and families of low income or families
158	158	of moderate income as defined by Section 2306.004, Government Code.
159	159	(f) The prohibition provided by Subsection (b)(8) on the
160	160	listing of a leasehold or other possessory interest in property to
161	161	be developed as affordable housing:
162	162	(1) applies to the property for a single period of:
163	163	(A) 12 consecutive tax years if the owner of the
164	164	possessory interest agrees to rent at least 30 percent of the
165	165	residential rental units to individuals and families of low income
166	166	or families of moderate income as defined by Section 2306.004,
167	167	Government Code; or
168	168	(B) 20 consecutive tax years if the owner of the
169	169	possessory interest agrees to rent at least 40 percent of the
170	170	residential rental units to individuals and families of low income
171	171	or families of moderate income as defined by Section 2306.004,
172	172	Government Code;
173	173	(2) expires as to the property on the earliest of the
174	174	date:
175	175	(A) the period described by Subdivision (1)(A) or
176	176	(B), as applicable, expires;
177	177	(B) the property changes ownership; or
178	178	(C) the property is no longer used for affordable
179	179	housing as provided by an agreement under Subsection (b)(8); and
180	180	(3) applies only to the portion of the property used
181	181	for residential purposes, including common areas.
182	182	SECTION 3. (a) Not later than November 30, 2025, the
183	183	General Land Office, in consultation with the Texas Department of
184	184	Housing and Community Affairs, shall establish the process required
185	185	under Section 31.1555(d), Natural Resources Code, as added by this
186	186	Act, to identify surplus state property suitable for development as
187	187	affordable housing.
188	188	(b) Not later than December 31, 2025, the General Land
189	189	Office shall establish the digitized inventory required by Section
190	190	31.1555(b), Natural Resources Code, as added by this Act.
191	191	(c) Not later than April 30, 2026, the Texas Department of
192	192	Housing and Community Affairs shall provide a report describing the
193	193	status of:
194	194	(1) the process described by Subsection (a) of this
195	195	section;
196	196	(2) the inventory described by Subsection (b) of this
197	197	section; and
198	198	(3) the map required to be developed under Section
199	199	31.1555(c)(2), Natural Resources Code, as added by this Act.
200	200	SECTION 4. This Act takes effect September 1, 2025.