79R4589 JD-D

By:  Barrientos                                                   S.B. No. 833



A BILL TO BE ENTITLED

AN ACT

relating to the required use of tax increment financing to provide 
affordable housing in certain reinvestment zones.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 311.011, Tax Code, is amended by adding 
Subsection (h) to read as follows:
	(h)  This subsection applies only to a zone that is located 
in a county with a population of more than 800,000 and less than 3.3 
million, is designated on or after January 1, 2005, and is or will 
be served by a rail transportation project as defined by general 
law.  The project plan for the zone must:
		(1)  contain a residential component that includes the 
construction of affordable housing in the zone; and
		(2)  require that at least 25 percent of the tax 
increment of the zone be used to construct the affordable housing 
until at least 10 percent of the total square footage in the 
residential component consists of multifamily rental properties 
and single-family dwellings, half of which are affordable to 
individuals or families with incomes at or below 30 percent of the 
area median income, as determined by the Texas Department of 
Housing and Community Affairs, adjusted for family size, and half 
of which are affordable to individuals or families with incomes 
above 30 percent and below 50 percent of the adjusted area median 
income.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.