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A BILL TO BE ENTITLED
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AN ACT
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relating to requirements for beneficial tax treatment related to a |
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leasehold or other possessory interest in a public facility used to |
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provide affordable housing. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 303.042, Local Government Code, is |
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amended by amending Subsection (d) and adding Subsection (d-1) to |
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read as follows: |
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(d) An exemption under this section for a multifamily |
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residential development which is owned by a public facility |
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corporation created [by a housing authority] under this chapter and |
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which does not have at least 20 percent of its units reserved for |
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public housing units, applies only if: |
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(1) the sponsor of the corporation [housing authority] |
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holds a public hearing, at a regular meeting of the sponsor's |
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[authority's] governing body, to approve the development; [and] |
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(2) at least 75 [50] percent of the units in the |
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multifamily residential development are reserved for occupancy by |
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individuals and families earning less than 80 percent of the area |
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median family income, adjusted for family size; and |
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(3) not later than April 1 of each year, the |
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corporation submits to the chief appraiser of the appraisal |
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district in which the development is located an audit report for a |
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compliance audit conducted by an independent auditor or compliance |
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expert that establishes that the multifamily residential |
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development is in compliance with the requirements of this section. |
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(d-1) An exemption under this section does not apply for a |
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tax year in which a multifamily residential development that is |
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owned by a public facility corporation created under this chapter |
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and that is required to submit an audit report under Subsection (d): |
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(1) does not submit the required audit report; or |
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(2) submits an audit report that does not establish |
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that the development is in compliance with the requirements of this |
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section. |
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SECTION 2. The change in law made by Section 303.042, Local |
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Government Code, as amended by this Act, applies only to a |
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multifamily residential development that is approved on or after |
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the effective date of this Act. A multifamily residential |
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development that is approved before the effective date of this Act |
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is governed by the law in effect on the date the development was |
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approved, and the former law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2023. |