Amend CSHB 3383 (Senate Committee Printing) as follows:
      (1)  In SECTION 1 of the bill, in amended Subsection (a),
Section 11.182, Tax Code (page 1, lines 18-30), strike Subdivision
(1) and substitute the following:
            (1)  "Cash flow" means the amount of money generated by
a housing project for a fiscal year less the disbursements for that
fiscal year for  operation and maintenance of the project,
including:
                  (A)  standard property maintenance;
                  (B)  debt service;
                  (C)  employee compensation;
                  (D)  fees required by government agencies;
                  (E)  expenses incurred in satisfaction of
requirements of lenders, including reserve requirements;
                  (F)  insurance; and
                  (G)  other justifiable expenses related to the
operation and maintenance of the project.
      (2)  In SECTION 1 of the bill, in amended Section 11.182, Tax
Code (page 1, line 54, through page 2, line 22), strike Subsections
(d) and (e) and substitute the following:
      (d)  A multifamily rental property consisting of 36 or more
dwelling units owned by the organization that is exempted under
Subsection (b) may not be exempted in a subsequent tax year unless
in the preceding tax year the organization spent, for eligible
persons in the county in which the property is located, an amount
equal to at least 40 percent of the total amount of taxes that
would have been imposed on the property in that year without the
exemption on social, educational, or economic development services,
capital improvement projects, or rent reduction.  This subsection
does not apply to property acquired by the organization using
tax-exempt bond financing after January 1, 1997, and before
December 31, 2001.
      (e)  In addition to meeting the applicable requirements of
Subsections (b) and (c), to receive an exemption under Subsection
(b) for improved real property that includes a housing project
constructed after December 31, 2001, and financed with qualified
501(c)(3) bonds issued under Section 145 of the Internal Revenue
Code of 1986, tax-exempt private activity bonds subject to volume
cap, or low-income housing tax credits, the organization must:
            (1)  control 100 percent of the interest in the general
partner if the project is owned by a limited partnership;
            (2)  comply with all rules of and laws administered by
the Texas Department of Housing and Community Affairs applicable to
community housing development organizations; and
            (3)  submit annually to the Texas Department of Housing
and Community Affairs and to the governing body of each taxing unit
for which the project receives an exemption for the housing project
evidence demonstrating that the organization spent an amount equal
to at least 90 percent of the project's cash flow in the preceding
fiscal year as determined by the audit required by Subsection (g),
for eligible persons in the county in which the property is
located, on social, educational, or economic development services,
capital improvement projects, or rent reduction.
      (3)  In SECTION 1 of the bill, in amended Section 11.182, Tax
Code, in added Subsection (g) (page 2, line 37), strike "certified
public accountant" and substitute "auditor".
      (4)  In SECTION 1 of the bill, in amended Section 11.182, Tax
Code, following added Subsection (g) (page 2, between lines 41 and
42), add the following:
      (h)  Subsections (d) and (e)(3) do not apply to property
owned by an organization if:
            (1)  the entity that provided the financing for the
acquisition or construction of the property:
                  (A)  requires the organization to make payments
in lieu of taxes to the school district in which the property is
located; or
                  (B)  restricts the amount of rent the
organization may charge for dwelling units on the property; or
            (2)  the organization has entered into an agreement
with each taxing unit for which the property receives an exemption
to spend in each tax year for the purposes provided by Subsection
(d) or (e)(3) an amount equal to the total amount of taxes imposed
on the property in the tax year preceding the year in which the
organization acquired the property.