88R5975 AMF-D
 
  By: Walle H.B. No. 1634
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to requirements for beneficial tax treatment related to a
  leasehold or other possessory interest in a public facility used to
  provide multifamily housing.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 303.042(f), Local Government Code, is
  amended to read as follows:
         (f)  Notwithstanding Subsections (a) and (b), during the
  period of time that a corporation owns a particular public
  facility, a leasehold or other possessory interest in the real
  property of the public facility granted by the corporation shall
  be treated in the same manner as a leasehold or other possessory
  interest in real property granted by an authority under Section
  379B.011(b) if the requirements under Section 303.0425 are met.
         SECTION 2.  Subchapter B, Chapter 303, Local Government
  Code, is amended by adding Section 303.0425 to read as follows:
         Sec. 303.0425.  REQUIREMENTS FOR BENEFICIAL TAX TREATMENT
  RELATING TO CERTAIN PUBLIC FACILITIES. (a) In this section:
               (1)  "Developer" means a private entity that constructs
  or rehabilitates a development.
               (2)  "Housing choice voucher program" means the housing
  choice voucher program under Section 8, United States Housing Act
  of 1937 (42 U.S.C. Section 1437f).
               (3)  "Housing development" means a development
  constructed or rehabilitated to provide multifamily housing. 
               (4)  "Public facility user" means a developer or other
  private entity that has a leasehold or other possessory interest in
  a public facility used to provide multifamily housing.
         (b)  Section 303.042(f) applies to a leasehold or other
  possessory interest in a public facility only if the public
  facility user meets the requirements of this section. The
  requirements prescribed by this section apply only to the
  application of taxes related to a leasehold or other possessory
  interest in a public facility under Section 303.042(f) and do not
  restrict the authority of a corporation to lease a public facility
  to a private entity under terms other than the terms described by
  this section.
         (c)  A public facility user may not:
               (1)  refuse to rent a residential unit in a housing
  development to an individual or family because the individual or
  family participates in the housing choice voucher program; or
               (2)  use a financial or minimum income standard that
  requires an individual or family participating in the housing
  choice voucher program to have a monthly income of more than 250
  percent of the individual's or family's share of the total monthly
  rent payable for a residential unit.
         SECTION 3.  Section 303.0425, Local Government Code, as
  added by this Act, applies only to a leasehold or other possessory
  interest in a public facility granted by a public facility
  corporation to a public facility user, as defined by that section,
  on or after the effective date of this Act.
         SECTION 4.  This Act takes effect September 1, 2023.