By: Truan, Lucio S.B. No. 1048 A BILL TO BE ENTITLED AN ACT 1-1 relating to exempting from ad valorem taxation property owned by 1-2 certain organizations constructing, repairing, and providing 1-3 housing for low-income and moderate-income persons. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by 1-6 adding Section 11.182 to read as follows: 1-7 Sec. 11.182. COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS 1-8 IMPROVING PROPERTY FOR LOW-INCOME AND MODERATE-INCOME HOUSING. 1-9 (a) An organization is entitled to an exemption from taxation of 1-10 improved or unimproved real property it owns if the organization: 1-11 (1) is organized as a community housing development 1-12 organization; 1-13 (2) meets the requirements of a charitable 1-14 organization provided by Sections 11.18(e) and (f); 1-15 (3) owns the property for the purpose of building or 1-16 repairing housing on the property to sell without profit to a 1-17 low-income or moderate-income individual or family satisfying the 1-18 organization's eligibility requirements or to rent without profit 1-19 to such an individual or family; and 1-20 (4) engages exclusively in the building, repair, and 1-21 sale or rental of housing as described by Subdivision (3) and 1-22 related activities. 1-23 (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) A person claiming an exemption for property described 2-7 under this section must comply with the requirements of Sections 2-8 11.43(a) and (b). 2-9 (d) An organization entitled to an exemption under 2-10 Subsection (a) is also entitled to an exemption from taxation of 2-11 any building or tangible personal property the organization owns 2-12 and uses in the administration of its acquisition, building, 2-13 repair, sale, or rental of property. To qualify for an exemption 2-14 under this subsection, property must be used exclusively by the 2-15 organization, except that another person may use the property for 2-16 activities incidental to the organization's use that benefit the 2-17 beneficiaries of the organization. 2-18 (e) In this section "community housing development 2-19 organization" has the meaning assigned that term by 42 U.S.C. 2-20 Section 12704. 2-21 SECTION 2. Subsection (a), Section 11.436, Tax Code, is 2-22 amended to read as follows: 2-23 (a) An organization that acquires property that qualifies 2-24 for an exemption under Section 11.181(a) or 11.182(a) may apply for 2-25 the exemption for the year of acquisition not later than the 30th 3-1 day after the date the organization acquires the property, and the 3-2 deadline provided by Section 11.43(d) does not apply to the 3-3 application for that year. 3-4 SECTION 3. Subsection (a), Section 26.111, Tax Code, is 3-5 amended to read as follows: 3-6 (a) If an organization acquires taxable property that 3-7 qualifies for and is granted an exemption under Section 11.181(a) 3-8 or 11.182(a) for the year in which the property was acquired, the 3-9 amount of tax due on the property for that year is calculated by 3-10 multiplying the amount of taxes imposed on the property for the 3-11 entire year as provided by Section 26.09 by a fraction, the 3-12 denominator of which is 365 and the numerator of which is the 3-13 number of days in that year before the date the charitable 3-14 organization acquired the property. 3-15 SECTION 4. This Act takes effect January 1, 1998. 3-16 SECTION 5. The importance of this legislation and the 3-17 crowded condition of the calendars in both houses create an 3-18 emergency and an imperative public necessity that the 3-19 constitutional rule requiring bills to be read on three several 3-20 days in each house be suspended, and this rule is hereby suspended.