77R12290 E                           
         By Davis of Dallas                                    H.B. No. 3383
         Substitute the following for H.B. No. 3383:
         By Davis of Dallas                                C.S.H.B. No. 3383
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the exemption from ad valorem taxation for certain
 1-3     community housing development organizations.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 11.182, Tax Code, is amended by amending
 1-6     Subsection (b) and adding Subsection (f) to read as follows:
 1-7           (b)  Property owned by the organization may not be exempted
 1-8     under Subsection (a) after the third anniversary of the date the
 1-9     organization acquires the property unless the organization is
1-10     offering to rent or is renting the property without profit to a
1-11     low-income or moderate-income individual or family satisfying the
1-12     organization's eligibility requirements.  Rental property owned by
1-13     the organization that is exempted under Subsection (a) may not be
1-14     exempted in a subsequent tax year unless in the preceding tax year
1-15     the organization spent an amount equal to at least 50 percent of
1-16     the amount of the exemption in that year on social, educational, or
1-17     economic development services for eligible persons in the
1-18     jurisdiction granting the exemption.
1-19           (f)  An organization is not required to spend at least 50
1-20     percent of the amount of the exemption as prescribed in Subsection
1-21     (b) if the organization acquired the property using tax-exempt bond
1-22     financing after January 1, 1997, and before December 31, 2001.
1-23           SECTION 2.  This Act takes effect January 1, 2002, and
1-24     applies only to ad valorem taxes imposed on or after that date.