HBA-KDB H.B. 1392 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1392 By: Keffer Ways & Means 2/28/2001 Introduced BACKGROUND AND PURPOSE Under current law, property owned by community housing development organizations (CHDOs) are exempted from ad valorem taxation. This exemption is potentially vital to the continued preservation and development of affordable housing in Texas. However, CHDOs are required to refile applications for exemptions every year. This annual redetermination may weaken the impact of the exemption because the resulting property tax savings are potentially given less weight when analyzing the CHDOs net operating income to obtain financing. House Bill 1392 adds the CHDO exemption to the list of other charitable exemptions that qualify for a one-time application for exemption. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1392 amends the Tax Code to add exemptions from taxation for community housing development organizations (CHDO) that improve property for low-income and moderate-income housing to the list of exemptions that need not be claimed in subsequent years. The bill repeals the provision that a person claiming a tax exemption for a CHDO must apply for the exemption for each year the person claims the exemption. EFFECTIVE DATE January 1, 2002.