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
1-7 amended 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
1-25 charitable functions and is exempt from taxation by this state or a
2-1 municipality or other political subdivision of this state. Bonds
2-2 issued by a corporation under this chapter, a transfer of the
2-3 bonds, interest on the bonds, and a profit from the sale or
2-4 exchange of the bonds are exempt from taxation by this state or a
2-5 municipality or other political subdivision of this state.
2-6 (d) An exemption under this section for a multifamily
2-7 residential development which is owned by a public facility
2-8 corporation created by a housing authority under this chapter and
2-9 which does not have at least 20 percent of its units reserved for
2-10 public housing units, applies only if:
2-11 (1) the housing authority holds a public hearing, at a
2-12 regular meeting of the authority's governing body, to approve the
2-13 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
3-1 governmental purposes. The authority and the authority's property
3-2 are exempt from all taxes and special assessments of a
3-3 municipality, a county, another political subdivision, or the
3-4 state.
3-5 (b) If a municipality, county, or political subdivision
3-6 furnishes improvements, services, or facilities for a housing
3-7 project, an authority may, in lieu of paying taxes or special
3-8 assessments, agree to reimburse in payments to the municipality,
3-9 county, or political subdivision an amount not greater than the
3-10 estimated cost to the municipality, county, or political
3-11 subdivision for the improvements, services, or facilities.
3-12 (c) An exemption under this section for a multifamily
3-13 residential development which is owned by (i) a public facility
3-14 corporation created by a housing authority under Chapter 303,
3-15 (ii) a housing development corporation, or (iii) a similar entity
3-16 created by a housing authority and which does not have at least 20
3-17 percent of its units reserved for public housing units, applies
3-18 only if:
3-19 (1) the authority holds a public hearing, at a regular
3-20 meeting of the authority's governing body, to approve the
3-21 development; and
3-22 (2) at least 50 percent of the units in the
3-23 multifamily residential development are reserved for occupancy by
3-24 individuals and families earning less than 80 percent of the area
3-25 median family income.
3-26 (d) For the purposes of Subsection (c), a "public housing
4-1 unit" is a dwelling unit for which the owner receives a public
4-2 housing operating subsidy. It does not include a unit for which
4-3 payments are made to the landlord under the federal Section 8
4-4 Housing Choice Voucher Program.
4-5 SECTION 3. Subchapter Z, Chapter 394, Local Government Code,
4-6 is amended by adding Section 394.9025 to read as follows:
4-7 Sec. 394.9025. MULTIFAMILY RESIDENTIAL DEVELOPMENT.
4-8 (a) Following a public hearing, a housing finance corporation may
4-9 issue bonds to finance a multifamily residential development to be
4-10 owned by the housing finance corporation if at least 50 percent of
4-11 the units in the multifamily residential development are reserved
4-12 for occupancy by individuals and families earning less than 80
4-13 percent of the area median family income.
4-14 (b) Following a public hearing by the governing body of the
4-15 local government, a housing finance corporation may issue bonds to
4-16 finance a multifamily residential development to be owned by the
4-17 housing finance corporation in accordance with Section 394.004 if
4-18 the housing finance corporation receives approval of the governing
4-19 body of the local government.
4-20 SECTION 4. (a) The change in law made by Subsection (d),
4-21 Section 303.042, Local Government Code, as added by this Act,
4-22 applies only to a multifamily residential development that is
4-23 developed as a result of an official decision by a housing
4-24 authority or an entity created by the housing authority to develop
4-25 the property that occurs on or after the effective date of this
4-26 Act.
5-1 (b) The change in law made by Subsection (c), Section
5-2 392.005, Local Government Code, as added by this Act, applies only
5-3 to a multifamily residential development that is developed as a
5-4 result of an official decision by a housing authority or an entity
5-5 created by the housing authority to develop the property that
5-6 occurs on or after the effective date of this Act.
5-7 (c) The change in law made by Section 394.9025, Local
5-8 Government Code, as added by this Act, applies only to a
5-9 multifamily residential development that is financed by bonds
5-10 issued under Chapter 394, Local Governmental Code, as a result of
5-11 an official decision to issue bonds that occurs on or after the
5-12 effective date of this Act.
5-13 SECTION 5. This Act takes effect August 31, 2002.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 929 passed the Senate on
May 2, 2001, by a viva-voce vote; and that the Senate concurred in
House amendment on May 26, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 929 passed the House, with
amendment, on May 23, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor