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A BILL TO BE ENTITLED
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AN ACT
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relating to the ad valorem taxation of property owned by certain |
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organizations and used to provide affordable housing. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 11.1825(f) and (q), Tax Code, are |
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amended to read as follows: |
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(f) For property to be exempt under this section, the |
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organization must own the property for the purpose of constructing |
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or rehabilitating a housing project on the property and: |
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(1) renting the housing, regardless of whether the |
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housing project consists of multi-family or single-family |
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dwellings, to individuals or families whose median income is not |
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more than 60 percent of the greater of: |
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(A) the area median family income for the |
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household's place of residence, as adjusted for family size and as |
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established by the United States Department of Housing and Urban |
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Development; or |
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(B) the statewide area median family income, as |
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adjusted for family size and as established by the United States |
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Department of Housing and Urban Development; or |
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(2) selling single-family dwellings to individuals or |
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families whose median income is not more than the greater of: |
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(A) the area median family income for the |
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household's place of residence, as adjusted for family size and as |
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established by the United States Department of Housing and Urban |
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Development; or |
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(B) the statewide area median family income, as |
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adjusted for family size and as established by the United States |
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Department of Housing and Urban Development. |
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(q) If property qualifies for an exemption under this |
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section, the chief appraiser shall use the income method of |
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appraisal as described [provided] by Section 23.012 to determine |
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the appraised value of the property. The chief appraiser shall use |
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that method regardless of whether the chief appraiser considers |
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that method to be the most appropriate method of appraising the |
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property. In appraising the property, the chief appraiser shall: |
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(1) consider the restrictions provided by this section |
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on the income of the individuals or families to whom the dwelling |
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units of the housing project may be rented and the amount of rent |
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that may be charged for purposes of computing the actual rental |
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income from the property or projecting future rental income; and |
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(2) use the same capitalization rate that the chief |
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appraiser uses to appraise other rent-restricted properties. |
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SECTION 2. This Act applies only to ad valorem taxes imposed |
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for a tax year beginning on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2010. |