By Ritter, et al. H.B. No. 2116
Substitute the following for H.B. No. 2116:
By Jones of Bexar C.S.H.B. No. 2116
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a restriction on the financing of multifamily
1-3 residential developments by housing authorities and housing finance
1-4 corporations.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 303.042, Local Government Code, is amended
1-7 to read as follows:
1-8 "Sec. 303.042. Taxation. (a) A public facility, including a
1-9 leasehold estate in a public facility, that is owned by a
1-10 corporation and that, except for the purposes and nonprofit nature
1-11 of the corporation, would be taxable to the corporation under Title
1-12 1, Tax Code, shall be assessed to the user of the public facility
1-13 to the same extent and subject to the same exemptions from taxation
1-14 as if the user owned the public facility. If there is more than
1-15 one user of the public facility, the public facility shall be
1-16 assessed to the users in proportion to the value of the rights of
1-17 each user to occupy, operate, manage, or use the public facility.
1-18 (b) The user of a public facility is considered the owner of
1-19 the facility for purposes of the application of:
1-20 (1) sales and use taxes in the construction, sale,
1-21 lease, or rental of the public facility; and
1-22 (2) other taxes imposed by this state or a political
1-23 subdivision of this state.
1-24 (c) A corporation is engaged exclusively in performance of
2-1 charitable functions and is exempt from taxation by this state or a
2-2 municipality or other political subdivision of this state. Bonds
2-3 issued by a corporation under this chapter, a transfer of the
2-4 bonds, interest on the bonds, and a profit from the sale or
2-5 exchange of the bonds are exempt from taxation by this state or a
2-6 municipality or other political subdivision of this state.
2-7 (d) An exemption under this section for a multifamily
2-8 residential development which is owned by a public facility
2-9 corporation created by a housing authority under this chapter and
2-10 which does not have at least twenty five percent of its units
2-11 reserved for public housing units, applies only if:
2-12 (1) the housing authority holds a public hearing to
2-13 approve the development; and
2-14 (2) at least 50 percent of the units in the
2-15 multifamily residential development are reserved for occupancy by
2-16 individuals and families earning less than 80 percent of the area
2-17 median family income.
2-18 (e) For the purposes of Subsection (d), a "public housing
2-19 unit" is a dwelling unit for which the landlord receives a public
2-20 housing operating subsidy. It does not include a unit for which
2-21 payments are made to the landlord under the federal Section 8
2-22 Housing Choice Voucher Program."
2-23 SECTION 2. Section 392.005, Local Government Code, is
2-24 amended to read as follows:
2-25 "Sec. 392.005. Tax Exemption. (a) The property of an
2-26 authority is public property used for essential public and
2-27 governmental purposes. The authority and the authority's property
3-1 are exempt from all taxes and special assessments of a
3-2 municipality, a county, another political subdivision, or the
3-3 state.
3-4 (b) If a municipality, county, or political subdivision
3-5 furnishes improvements, services, or facilities for a housing
3-6 project, an authority may, in lieu of paying taxes or special
3-7 assessments, agree to reimburse in payments to the municipality,
3-8 county, or political subdivision an amount not greater than the
3-9 estimated cost to the municipality, county, or political
3-10 subdivision for the improvements, services, or facilities.
3-11 (c) An exemption under this section for a multifamily
3-12 residential development which is owned by (i) a public facility
3-13 corporation created by a housing authority under Chapter 303 of the
3-14 Local Government Code, (ii) a housing development corporation, or
3-15 (iii) a similar entity created by a housing authority and which
3-16 does not have at least twenty five percent of its units reserved
3-17 for public housing units, applies only if:
3-18 (1) the authority holds a public hearing to approve
3-19 the development; and
3-20 (2) at least 50 percent of the units in the
3-21 multifamily residential development are reserved for occupancy by
3-22 individuals and families earning less than 80 percent of the area
3-23 median family income.
3-24 (d) For the purposes of Subsection (c), a "public housing
3-25 unit" is a dwelling unit for which the owner receives a public
3-26 housing operating subsidy. It does not include a unit for which
3-27 payments are made to the landlord under the federal Section 8
4-1 Housing Choice Voucher Program."
4-2 SECTION 3. Subchapter Z, Chapter 394, Local Government Code,
4-3 is amended by adding Section 394.9025 to read as follows:
4-4 "Sec. 394.9025. MULTIFAMILY RESIDENTIAL DEVELOPMENT. (a)
4-5 Following a public hearing, a housing finance corporation may issue
4-6 bonds to finance a multifamily residential development to be owned
4-7 by the housing finance corporation if at least 50 percent of the
4-8 units in the multifamily residential development are reserved for
4-9 occupancy by individuals and families earning less than 80 percent
4-10 of the area median family income; or
4-11 (b) Following a public hearing by the governing body of the
4-12 local government, a housing finance corporation may issue bonds to
4-13 finance a multifamily residential development to be owned by the
4-14 housing finance corporation in accordance with Section 394.004 if
4-15 the housing finance corporation receives approval of the governing
4-16 body of the local government
4-17 SECTION 4. (a) The change in law made by Section
4-18 303.042(d), Local Government Code, as added by this Act, applies
4-19 only to a multifamily residential development that is developed as
4-20 a result of an official decision by a housing authority or an
4-21 entity created by the housing authority to develop the property
4-22 that occurs on or after the effective date of this Act.
4-23 (b) The change in law made by Section 392.005(c), Local
4-24 Government Code, as added by this Act, applies only to a
4-25 multifamily residential development that is developed as a result
4-26 of an official decision by a housing authority or an entity created
4-27 by the housing authority to develop the property that occurs on or
5-1 after the effective date of this Act.
5-2 (c) The change in law made by Section 394.9025, Local
5-3 Government Code, as added by this Act, applies only to a
5-4 multifamily residential development that is financed by bonds
5-5 issued under Chapter 394, Local Government Code, as a result of an
5-6 official decision to issue bonds that occurs on or after the
5-7 effective date of this Act.
5-8 SECTION 5. This Act takes effect August 31, 2002.