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A BILL TO BE ENTITLED
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AN ACT
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relating to the eligibility of certain municipalities to establish |
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homestead preservation districts and reinvestment zones and to |
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certain regulatory prohibitions applicable in those districts and |
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zones. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 214.905, Local Government Code, is |
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amended by adding Subsection (b-1) to read as follows: |
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(b-1) Subsection (b)(2) does not apply to a municipality |
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described by Section 373A.003(a)(2) in relation to a requirement |
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described by Subsection (a) that is proposed for an area served |
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under the provisions of Chapter 373A. |
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SECTION 2. Section 373A.002, Local Government Code, is |
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amended by amending Subdivision (3-a) and adding Subdivision (3-b) |
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to read as follows: |
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(3-a) "Low income household" means a household with a |
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gross income of not greater than 80 percent of the area median |
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family income, adjusted for household size, for the metropolitan |
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statistical area in which the municipality is located, as |
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determined annually by the United States Department of Housing and |
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Urban Development. |
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(3-b) "Project costs" has the meaning assigned by |
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Section 311.002(1), Tax Code. |
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SECTION 3. Section 373A.003(a), Local Government Code, is |
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amended to read as follows: |
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(a) This chapter applies to: |
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(1) a municipality with a population of more than |
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750,000 that is located in a uniform state service region with fewer |
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than 550,000 occupied housing units as determined by the most |
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recent United States decennial census; and |
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(2) a municipality with a population of two million or |
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more. |
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SECTION 4. Section 373A.052, Local Government Code, is |
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amended by amending Subsection (a) and adding Subsection (a-1) to |
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read as follows: |
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(a) To be designated as a district within a municipality |
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described by Section 373A.003(a)(1) [373A.003(a)] under this |
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subchapter, an area must be composed of census tracts forming a |
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spatially compact area with: |
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(1) fewer than 75,000 residents; |
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(2) an overall poverty rate that is at least two times |
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the poverty rate for the entire municipality; and |
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(3) in each census tract within the area, a median |
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family income that is less than 80 percent of the median family |
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income for the entire municipality. |
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(a-1) To be designated as a district within a municipality |
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described by Section 373A.003(a)(2) under this subchapter: |
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(1) an area must be composed of census tracts forming a |
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spatially compact area; and |
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(2) the governing body of the municipality must make |
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findings by resolution that: |
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(A) the area will benefit from the inclusion of |
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low income households; |
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(B) low-income and moderate-income homeowners |
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within the area are at risk of losing their homesteads through |
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displacement; and |
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(C) the designation will serve one or more |
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purposes outlined by this chapter. |
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SECTION 5. Section 373A.203(6), Local Government Code, is |
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repealed. |
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SECTION 6. This Act takes effect September 1, 2023. |