By: Coleman H.B. No. 2720
A BILL TO BE ENTITLED
AN ACT
relating to the requirement that a portion of the tax increment of
certain tax increment reinvestment zones be used to provide
affordable housing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 311.011, Tax Code, is amended by adding
Subsection (f-1) to read as follows:
(f) In a zone designated under Section 311.005(a)(5) that is
located in a county with a population of 3.3 million or more, the
project plan must provide that at least one-third of the tax
increment of the zone be used to provide affordable housing during
the term of the zone.
(f-1) the project plan for each zone must provide that at
least one-third of the tax increment of the zone be used to provide
affordable housing during the term of the zone, unless the project
plan for the zone was adopted prior to September 1, 2003.
SECTION 2. Chapter 311, Tax Code, is amended by adding
Section 311.0115 to read as follows:
Sec. 311.0115. AFFORDABLE HOUSING. (a) In this section,
"department" means the Texas Department of Housing and Community
Affairs.
(b) If the project plan for a reinvestment zone to which
Section 311.011(f) or 311.011(f-1) apply provides that a portion of
the tax increment of the zone be used to provide affordable housing,
the affordable housing must comply with this section.
(c) The owner of a multifamily rental housing development
must:
(1) keep the rents affordable for low-income tenants
for a minimum of fifteen years; and
(2) provide regular maintenance to keep the
development sanitary, decent, and safe, as provided in a Land Use
Restriction Agreement enforceable by the municipality, low-income
tenants and the department; and
(3) not exclude an individual or family from admission
to the development because the individual or family participates in
the housing choice voucher program under Section 8, United States
Housing Act of 1937 (42 U.S.C. Section 1437f).
(d) For a multifamily rental housing development:
(1) at least 60 percent of the dwelling units must be
affordable to individuals or families with incomes at or below 60
percent of the area median income, as determined by the department,
adjusted for family size; or
(2) at least 40 percent of the dwelling units must be
affordable to individuals and families with incomes at or below 50
percent of the area median income, as determined by the department,
adjusted for family size.
(e) A single-family dwelling must be offered for sale or
rent at an affordable price to an individual or a family with an
income at or below 80 percent of the area median income, as
determined by the department, adjusted for family size.
(f) Rental housing is considered affordable for purposes of
this section if the sum of the annual rent and utility allowance
does not exceed an amount equal to 30 percent of the applicable area
median annual income set forth in subsection 311.0115(d), as
determined by the department, adjusted for family size.
(g) A single-family dwelling offered for sale is considered
affordable if, at the date of the sale, the sum of the annual
payments for the principal of and interest on the mortgage, ad
valorem taxes, and homeowners' insurance premiums does not exceed
an amount equal to 30 percent of 80 percent of the area median
annual income, as determined by the department, adjusted for family
size.
SECTION 3. Section 311.016, Tax Code, is amended to read as
follows:
Sec. 311.016. ANNUAL REPORT BY MUNICIPALITY. (a) On or
before the 90th day following the end of the fiscal year of the
municipality, the governing body of a municipality shall submit to
the chief executive officer of each taxing unit that levies
property taxes on real property in a reinvestment zone created by
the municipality a report on the status of the zone. The report
must include:
(1) the amount and source of revenue in the tax
increment fund established for the zone;
(2) the amount and purpose of expenditures from the
fund;
(3) the amount of principal and interest due on
outstanding bonded indebtedness;
(4) the tax increment base and current captured
appraised value retained by the zone;
(5) the captured appraised value shared by the
municipality and other taxing units, the total amount of tax
increments received, and any additional information necessary to
demonstrate compliance with the tax increment financing plan
adopted by the governing body of the municipality; and
(6) information sufficient to demonstrate compliance
with Section 311.011(f) and (f-1), if applicable, including:
(A) the amount of the tax increments used to
provide affordable housing during the preceding fiscal year;
(B) the address of each affordable housing unit
provided through the use of tax increments during the preceding
fiscal year;
(C) for each affordable housing rental unit, the
amount of rent charged for the unit and the income of the family
residing in the unit; and
(D) for each affordable housing unit sold to a
low-income individual or family, the amount of the sales price and
the income of the purchaser.
(b) The municipality shall send a copy of a report made
under this section to:
(1) the attorney general;
(2) the comptroller; and
(3) if Section 311.011(f) or 311.011(f-1) apply to the
project plan for the reinvestment zone, the Texas Department of
Housing and Community Affairs.
SECTION 4. This Act takes effect September 1, 2003.