88R7877 DRS-D
 
  By: Noble H.B. No. 2966
 
 
 
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 affordable housing.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 303.042, Local Government Code, is
  amended by amending Subsection (d) and adding Subsection (d-1) to
  read as follows:
         (d)  An exemption under this section for a multifamily
  residential development which is owned by a public facility
  corporation created [by a housing authority] under this chapter and
  which does not have at least 20 percent of its units reserved for
  public housing units, applies only if:
               (1)  the sponsor of the corporation [housing authority]
  holds a public hearing, at a regular meeting of the sponsor's 
  [authority's] governing body, to approve the development; [and]
               (2)  at least 75 [50] percent of the units in the
  multifamily residential development are reserved for occupancy by
  individuals and families earning less than 80 percent of the area
  median family income, adjusted for family size; and
               (3)  not later than April 1 of each year, the
  corporation submits to the chief appraiser of the appraisal
  district in which the development is located an audit report for a
  compliance audit conducted by an independent auditor or compliance
  expert that establishes that the multifamily residential
  development is in compliance with the requirements of this section.
         (d-1)  An exemption under this section does not apply for a
  tax year in which a multifamily residential development that is
  owned by a public facility corporation created under this chapter
  and that is required to submit an audit report under Subsection (d):
               (1)  does not submit the required audit report; or
               (2)  submits an audit report that does not establish
  that the development is in compliance with the requirements of this
  section.
         SECTION 2.  The change in law made by Section 303.042, Local
  Government Code, as amended by this Act, applies only to a
  multifamily residential development that is approved on or after
  the effective date of this Act. A multifamily residential
  development that is approved before the effective date of this Act
  is governed by the law in effect on the date the development was
  approved, and the former law is continued in effect for that
  purpose.
         SECTION 3.  This Act takes effect September 1, 2023.