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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 82(R)

Senate Bill 402

Senate Author:  West

Effective:  1-1-12

House Sponsor:  Oliveira


            Senate Bill 402 amends the Local Government Code to authorize a governing body of a municipality or county to create or designate one or more community land trusts to operate in the municipality or county.  The purpose of such a trust is to provide affordable housing for low-income and moderate-income residents in the community, promote resident ownership of housing, keep housing affordable for future residents, and capture the value of public investment for long-term community benefit.  The bill requires a trust to be a nonprofit organization and satisfy certain requirements.  The bill authorizes a trust to retain title to land it acquires and sell or lease the land in certain ways.  The bill establishes the qualifications that a person must meet in order to purchase or lease property from a trust.

            Senate Bill 402 amends the Tax Code to establish a tax exemption for real and personal property owned by a community land trust if the trust meets certain requirements.  The bill requires a tax appraiser to consider the reduction in value of property owned, leased, or sold by a trust that has restrictions on the manner of disposition of the property.