By Oliveira                                     H.B. No. 1201

      75R4118 JD-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to exempting from ad valorem taxation property owned by

 1-3     certain organizations constructing, repairing, and providing

 1-4     housing for low-income and moderate-income persons.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by

 1-7     adding Section 11.182 to read as follows:

 1-8           Sec. 11.182.  COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS

 1-9     IMPROVING PROPERTY FOR LOW-INCOME AND MODERATE-INCOME HOUSING.

1-10     (a)  An organization is entitled to an exemption from taxation of

1-11     improved or unimproved real property it owns if the organization:

1-12                 (1)  is organized as a community housing development

1-13     organization;

1-14                 (2)  meets the requirements of a charitable

1-15     organization provided by Sections 11.18(e) and (f);

1-16                 (3)  owns the property for the purpose of building or

1-17     repairing housing on the property to sell without profit to a

1-18     low-income or moderate-income individual or family satisfying the

1-19     organization's eligibility requirements or to rent without profit

1-20     to such an individual or family; and

1-21                 (4)  engages exclusively in the building, repair, and

1-22     sale or rental of housing as described by Subdivision (3) and

1-23     related activities.

1-24           (b)  Property owned by the organization may not be exempted

 2-1     under Subsection (a) after the third anniversary of the date the

 2-2     organization acquires the property unless the organization is

 2-3     offering to rent or is renting the property without profit to a

 2-4     low-income or moderate-income individual or family satisfying the

 2-5     organization's eligibility requirements.

 2-6           (c)  An organization entitled to an exemption under

 2-7     Subsection (a) is also entitled to an exemption from taxation of

 2-8     any building or tangible personal property the organization owns

 2-9     and uses in the administration of its acquisition, building,

2-10     repair, sale, or rental of property.  To qualify for an exemption

2-11     under this subsection, property must be used exclusively by the

2-12     organization, except that another person may use the property for

2-13     activities incidental to the organization's use that benefit the

2-14     beneficiaries of the organization.

2-15           (d)  In this section "community housing development

2-16     organization" has the meaning assigned that term by 42 U.S.C.

2-17     Section 12704.

2-18           SECTION 2.  Section 11.436(a), Tax Code, is amended to read

2-19     as follows:

2-20           (a)  An organization that acquires property that qualifies

2-21     for an exemption under Section 11.181(a) or 11.182(a) may apply for

2-22     the exemption for the year of acquisition not later than the 30th

2-23     day after the date the organization acquires the property, and the

2-24     deadline provided by Section 11.43(d) does not apply to the

2-25     application for that year.

2-26           SECTION 3.  Section 26.111(a), Tax Code, is amended to read

2-27     as follows:

 3-1           (a)  If an organization acquires taxable property that

 3-2     qualifies for and is granted an exemption under Section 11.181(a)

 3-3     or 11.182(a) for the year in which the property was acquired, the

 3-4     amount of tax due on the property for that year is calculated by

 3-5     multiplying the amount of taxes imposed on the property for the

 3-6     entire year as provided by Section 26.09 by a fraction, the

 3-7     denominator of which is 365 and the numerator of which is the

 3-8     number of days in that year before the date the charitable

 3-9     organization acquired the property.

3-10           SECTION 4.  This Act takes effect January 1, 1998.

3-11           SECTION 5.  The importance of this legislation and the

3-12     crowded condition of the calendars in both houses create an

3-13     emergency and an imperative public necessity that the

3-14     constitutional rule requiring bills to be read on three several

3-15     days in each house be suspended, and this rule is hereby suspended.