H.B. 2617 78(R)    BILL ANALYSIS


H.B. 2617
By: Mowery
Urban Affairs
Committee Report (Amended)


BACKGROUND AND PURPOSE

Chapter 2306 of the Government Code establishes the Texas Department of
Housing and Community Affairs.  House Bill 2617 would amend provisions in
subchapter DD, Low Income Housing Tax Credit Program.  Federal tax credits
are awarded to developers on a competitive basis for the development of
affordable housing.  H.B. 2617 would permit the abatement of local
property taxes, in addition to federal tax credits. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

SECTION-BY-SECTION ANALYSIS

SECTION 1. Amends Subchapter DD, Chapter 2306, Government Code, by adding
Section 2306.67023 to require local approval by cities and counties for
developer participation. 
SECTION 2. Amends Section 2306.6705, Government Code, to require
applicants for tax credits to furnish a letter from the presiding officer
of the governing body of the political subdivision(s) in which the
development is located or zoning official(s) indicating that a project has
been approved or in the process, and evidence that required community
meetings have been held. 
SECTION 3. Amends Section 2306.6710(b), Government Code, to require tax
credit applicants to indicate degree of community opposition, support by
local governments, and existing density of multi-family housing. 
SECTION 4. Amends Section 2306.6717(b), Government Code, to require the
Texas Department of Housing and Community Affairs ("the department") to
furnish information about the tax credit program to local governmental
officials. 
SECTION 5. Amends Section 2306.6718(a), Government Code, to require the
department to furnish notice of tax credit applications to local
officials. 
SECTION 6. Amends Section 2306.6724(e), Government Code, to require the
department, no later than June 30, to mail the list of approved
applications to local officials. 
SECTION 7. Amends Section 2306.6725(a), Government Code, to require the
department to consider multi-family housing needs in the allocation of tax
credits. 
SECTION 8. Amends Section 2306.6732, Government Code, to require the
department to furnish information to local officials about the tax credit
program. 
SECTION 9. Amends Section 11.182, Tax Code, regarding exemptions, to
authorize local governments to adopt criteria by which otherwise exempted
property would be taxed; requires organizations to submit written requests
for exemptions to the local governments; requires local governments to
determine exemption qualification and notification of appraisal district;
permits assessment of application fees; requires notification by
organizations to chief appraiser regarding exemptions. 
SECTION 10. Effective date/prospective application period.

 EFFECTIVE DATE:  September 1, 2003.


EXPLANATION OF AMENDMENTS

Committee Amendment No. 1 will amend H.B. 2617 by allowing for either
county or municipal approval of a development, rather than mandating
municipal approval if the development is in a municipality or county
approval if it is not located in a municpality.