Bill Text: TX HB2071 | 2023-2024 | 88th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to certain public facilities, including public facilities used to provide affordable housing.
Spectrum: Slight Partisan Bill (Republican 17-6)
Status: (Passed) 2023-06-18 - Effective immediately [HB2071 Detail]
Download: Texas-2023-HB2071-Engrossed.html
Bill Title: Relating to certain public facilities, including public facilities used to provide affordable housing.
Spectrum: Slight Partisan Bill (Republican 17-6)
Status: (Passed) 2023-06-18 - Effective immediately [HB2071 Detail]
Download: Texas-2023-HB2071-Engrossed.html
By: Jetton, Harris of Anderson, DeAyala, | H.B. No. 2071 | |
Cortez, Lozano, et al. |
|
||
|
||
relating to certain public facilities used to provide affordable | ||
housing. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 303.021, Local Government Code, is | ||
amended by adding Subsection (d) to read as follows: | ||
(d) A corporation or a sponsor may finance, own, or operate | ||
a multifamily residential development only if: | ||
(1) the corporation or sponsor complies with all | ||
applicable provisions of this chapter; and | ||
(2) the development is located: | ||
(A) inside the area of operation of the sponsor, | ||
if the sponsor is a housing authority; or | ||
(B) if the sponsor is not a housing authority, | ||
inside the boundaries of the sponsor, without regard to whether the | ||
sponsor is authorized to own property or provide services outside | ||
the boundaries of the sponsor. | ||
SECTION 2. Subchapter B, Chapter 303, Local Government | ||
Code, is amended by adding Section 303.0415 to read as follows: | ||
Sec. 303.0415. APPLICABILITY OF LAWS RELATING TO CONFLICT | ||
OF INTEREST. A member of the board of a corporation or a member of | ||
the governing body of a sponsor of a corporation is subject to the | ||
same restrictions as a local public official under Chapter 171. | ||
SECTION 3. The heading to Section 303.042, Local Government | ||
Code, is amended to read as follows: | ||
Sec. 303.042. TAXATION; EXEMPTION. | ||
SECTION 4. Subchapter B, Chapter 303, Local Government | ||
Code, is amended by adding Section 303.0421, and a heading is added | ||
to that section to read as follows: | ||
Sec. 303.0421. MULTIFAMILY RESIDENTIAL DEVELOPMENTS OWNED | ||
BY PUBLIC FACILITY CORPORATIONS. | ||
SECTION 5. Section 303.0421, Local Government Code, as | ||
added by this Act, is amended by adding Subsections (a), (c), (d), | ||
(f-1), (f-2), (g), and (h) to read as follows: | ||
(a) This section applies to a multifamily residential | ||
development that is owned by a corporation created under this | ||
chapter, except that this section does not apply to a multifamily | ||
residential development that: | ||
(1) has at least 20 percent of its residential units | ||
reserved for public housing units; | ||
(2) participates in the Rental Assistance | ||
Demonstration program administered by the United States Department | ||
of Housing and Urban Development; | ||
(3) receives financial assistance administered under | ||
Chapter 1372, Government Code, or receives financial assistance | ||
from another type of tax-exempt bond; or | ||
(4) receives financial assistance administered under | ||
Subchapter DD, Chapter 2306, Government Code. | ||
(c) A multifamily residential development that is owned by a | ||
corporation created under this chapter by a housing authority and | ||
to which Subsection (a) applies must hold a public hearing, at a | ||
meeting of the authority's governing body, to approve the | ||
development. | ||
(d) Notwithstanding Subsection (b), an occupied multifamily | ||
residential development that is acquired by a corporation and to | ||
which Subsection (a) applies is eligible for an exemption under | ||
Section 303.042(c) for: | ||
(1) the one-year period following the date of the | ||
acquisition, regardless of whether the development complies with | ||
the requirements of Subsection (b); and | ||
(2) a year following the year described by Subdivision | ||
(1) only if the development comes into compliance with the | ||
requirements of Subsection (b) not later than the first anniversary | ||
of the date of the acquisition. | ||
(f-1) Subsection (f) does not apply to taxes imposed by a | ||
conservation and reclamation district created under Section 52, | ||
Article III, or Section 59, Article XVI, Texas Constitution, that | ||
provides water, sewer, or drainage services to a public facility | ||
if: | ||
(1) the district has outstanding bond indebtedness; | ||
and | ||
(2) when the facility is combined with other existing | ||
or proposed public facilities in the district, the application of | ||
Subsection (f) would result in the aggregate loss of at least 10 | ||
percent of the total assessed value of all property located in the | ||
district. | ||
(f-2) Subsection (f-1) does not apply if the corporation has | ||
entered into a written agreement with the district to make a payment | ||
to the district in lieu of taxation, in the amount specified in the | ||
agreement. | ||
(g) An exemption under Section 303.042(c) for a multifamily | ||
residential development to which Subsection (a) applies expires: | ||
(1) for an occupied multifamily residential | ||
development that is acquired by a corporation, on the 10th | ||
anniversary of the date of the acquisition by the corporation; and | ||
(2) for a multifamily residential development not | ||
described by Subdivision (1), on the 12th anniversary of the date | ||
the development receives, from the corporation or the corporation's | ||
sponsor, the final approval under this chapter that is necessary to | ||
obtain the exemption. | ||
(h) This subsection and Subsection (f) expire December 31, | ||
2025. | ||
SECTION 6. Section 303.042(c), Local Government Code, is | ||
amended to read as follows: | ||
(c) Subject to Section 303.0421(g), a [ |
||
engaged exclusively in performance of charitable functions and is | ||
exempt from taxation by this state or a municipality or other | ||
political subdivision of this state. Bonds issued by a corporation | ||
under this chapter, a transfer of the bonds, interest on the bonds, | ||
and a profit from the sale or exchange of the bonds are exempt from | ||
taxation by this state or a municipality or other political | ||
subdivision of this state. | ||
SECTION 7. Sections 303.042(d), (e), and (f), Local | ||
Government Code, are transferred to Section 303.0421, Local | ||
Government Code, as added by this Act, redesignated as Sections | ||
303.0421(b), (e), and (f), Local Government Code, and amended to | ||
read as follows: | ||
(b) Notwithstanding Section 303.042(c) and subject to | ||
Subsections (c) and (d) of this section, an [ |
||
Section 303.042(c) [ |
||
development to which Subsection (a) applies is available [ |
||
only if: | ||
(1) the requirements under Section 303.0425 are met | ||
[ |
||
(2) at least: | ||
(A) 12 percent of the units in the multifamily | ||
residential development are reserved for occupancy: | ||
(i) as very low income housing units, as | ||
defined under Section 303.0425; or | ||
(ii) by participants in the housing choice | ||
voucher program; | ||
(B) 12 percent of the units in the multifamily | ||
residential development are reserved for occupancy as lower income | ||
housing units, as defined under Section 303.0425; and | ||
(C) 12 [ |
||
multifamily residential development are reserved for occupancy as | ||
moderate income housing units, as defined under Section 303.0425; | ||
[ |
||
(3) the corporation delivers to the presiding officer | ||
of the governing body of each taxing unit in which the development | ||
is to be located written notice of the development, at least 30 days | ||
before the date: | ||
(A) the corporation takes action to approve a new | ||
multifamily residential development or the acquisition of an | ||
occupied multifamily residential development; and | ||
(B) of any public hearing required to be held | ||
under this section; | ||
(4) the multifamily residential development is | ||
approved by the governing body of the municipality, if any, the | ||
county, and the school district in which the development is | ||
located; | ||
(5) for an occupied multifamily residential | ||
development that is acquired by a corporation and not otherwise | ||
subject to a land use restriction agreement under Section 2306.185, | ||
Government Code: | ||
(A) not less than 15 percent of the total gross | ||
cost of the existing development, as shown in the settlement | ||
statement, is expended on rehabilitating, renovating, | ||
reconstructing, or repairing the development, with initial | ||
expenditures and construction activities: | ||
(i) beginning not later than the first | ||
anniversary of the date of the acquisition; and | ||
(ii) finishing not later than the third | ||
anniversary of the date of the acquisition; or | ||
(B) at least 25 percent of the units are reserved | ||
for occupancy as lower income housing units, as defined under | ||
Section 303.0425, and the development is approved by the governing | ||
body of the municipality in which the development is located or, if | ||
the development is not located in a municipality, the county in | ||
which the development is located; and | ||
(6) before final approval of the development: | ||
(A) the corporation or corporation's sponsor | ||
conducts, or obtains from a professional entity that has experience | ||
underwriting affordable multifamily residential developments and | ||
does not have financial interests in the applicable development, | ||
public facility user, or developer, an underwriting assessment of | ||
the proposed development to determine the appropriate category of | ||
income-restricted units to require at the development; and | ||
(B) based on the assessment conducted under | ||
Paragraph (A), the corporation makes a good faith determination | ||
that the total annual amount of rent reduction on the | ||
income-restricted units provided at the development will be not | ||
less than 60 percent of the estimated amount of the annual ad | ||
valorem taxes that would be imposed on the property without an | ||
exemption under Section 303.042(c), for: | ||
(i) the first three years after the rent | ||
stabilization period, for newly constructed developments; and | ||
(ii) the second, third, and fourth years | ||
after the date of acquisition by the corporation, for developments | ||
occupied at the time of acquisition. | ||
(e) For the purposes of Subsection (a) [ |
||
housing unit" is a residential [ |
||
landlord receives a public housing operating subsidy. It does not | ||
include a unit for which payments are made to the landlord under the | ||
federal Section 8 Housing Choice Voucher Program. | ||
(f) Notwithstanding Sections 303.042(a) and (b) and subject | ||
to Subsection (f-1) [ |
||
[ |
||
is a multifamily residential development: | ||
(1) [ |
||
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); and | ||
(2) the materials used by a person granted a | ||
possessory interest described by Subdivision (1) to improve the | ||
real property of the public facility shall be exempt from all sales | ||
and use taxes because the materials are for the benefit of the | ||
corporation. | ||
SECTION 8. Subchapter B, Chapter 303, Local Government | ||
Code, is amended by adding Sections 303.0425 and 303.0426 to read as | ||
follows: | ||
Sec. 303.0425. ADDITIONAL REQUIREMENTS FOR BENEFICIAL TAX | ||
TREATMENT RELATING TO CERTAIN PUBLIC FACILITIES. (a) In this | ||
section: | ||
(1) "Department" means the Texas Department of Housing | ||
and Community Affairs. | ||
(2) "Developer" means a private entity that constructs | ||
a development, including the rehabilitation, renovation, | ||
reconstruction, or repair of a development. | ||
(3) "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). | ||
(4) "Lower income housing unit" means a residential | ||
unit reserved for occupancy by an individual or family earning not | ||
more than 60 percent of the area median income, adjusted for family | ||
size, as defined by the United States Department of Housing and | ||
Urban Development. | ||
(5) "Moderate income housing unit" means a residential | ||
unit reserved for occupancy by an individual or family earning not | ||
more than 80 percent of the area median income, adjusted for family | ||
size, as defined by the United States Department of Housing and | ||
Urban Development. | ||
(6) "Public facility user" means a public-private | ||
partnership entity or a developer or other private entity that has | ||
an ownership interest or a leasehold or other possessory interest | ||
in a public facility that is a multifamily residential development. | ||
(7) "Very low income housing unit" means a residential | ||
unit reserved for occupancy by an individual or family earning not | ||
more than 50 percent of the area median income, adjusted for family | ||
size, as defined by the United States Department of Housing and | ||
Urban Development. | ||
(b) If a majority of the members of the board of the | ||
corporation are not elected officials, the development must be | ||
approved by the governing body of the municipality in which the | ||
development is located or, if the development is not located in a | ||
municipality, the county in which the development is located. | ||
(c) The percentage of very low, lower, and moderate income | ||
housing units reserved in each category of units in the | ||
development, based on the number of bedrooms per unit, must be the | ||
same as the percentage of each category of housing units reserved in | ||
the development as a whole. | ||
(d) The monthly rent charged per unit may not exceed: | ||
(1) for a very low income housing unit, 30 percent of | ||
50 percent of the area median income, adjusted for family size, as | ||
defined by the United States Department of Housing and Urban | ||
Development; | ||
(2) for a lower income housing unit, 30 percent of 60 | ||
percent of the area median income, adjusted for family size, as | ||
defined by the United States Department of Housing and Urban | ||
Development; or | ||
(3) for a moderate income housing unit, 30 percent of | ||
80 percent of the area median income, adjusted for family size, as | ||
defined by the United States Department of Housing and Urban | ||
Development. | ||
(e) In calculating the income of an individual or family for | ||
a very low, lower, or moderate income housing unit, the public | ||
facility user must use the definition of annual income described in | ||
24 C.F.R. Section 5.609, as implemented by the United States | ||
Department of Housing and Urban Development. If the income of a | ||
tenant exceeds an applicable limit at the time of the renewal of a | ||
lease agreement for a residential unit, the provisions of Section | ||
42(g)(2)(D), Internal Revenue Code of 1986, apply in determining | ||
whether the unit may still qualify as a very low, lower, or moderate | ||
income housing unit. | ||
(f) The public facility user may not: | ||
(1) refuse to rent a residential unit 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 unit. | ||
(f-1) A public facility user may require an individual or | ||
family participating in the housing choice voucher program to pay | ||
the difference between the monthly rent for the applicable unit and | ||
the amount of the monthly voucher if the amount of the voucher is | ||
less than the rent. | ||
(g) A corporation that owns or leases to a public facility | ||
user a public facility used as a multifamily residential | ||
development shall publish on its Internet website information about | ||
the development's: | ||
(1) compliance with the requirements of this section; | ||
and | ||
(2) policies regarding tenant participation in the | ||
housing choice voucher program. | ||
(h) The public facility user shall: | ||
(1) affirmatively market available residential units | ||
directly to individuals and families participating in the housing | ||
choice voucher program; and | ||
(2) notify local housing authorities of the | ||
multifamily residential development's acceptance of tenants in the | ||
housing choice voucher program. | ||
(i) The department shall conduct an annual audit of each | ||
public facility user of a multifamily residential development | ||
claiming an exemption under Section 303.042(c) and to which Section | ||
303.0421 applies, to: | ||
(1) determine whether the public facility user is in | ||
compliance with this section and Section 303.0421; and | ||
(2) identify the difference in the rent charged for | ||
income-restricted residential units and the estimated maximum | ||
market rents that could be charged for those units without the rent | ||
or income restrictions. | ||
(i-1) An independent auditor or compliance expert may not | ||
prepare an audit under Subsection (i) for more than three | ||
consecutive years for the same public facility user. After the | ||
third consecutive audit, the independent auditor or compliance | ||
expert may prepare an audit only after the second anniversary of the | ||
preparation of the third consecutive audit. | ||
(j) The department shall complete and publish a report | ||
regarding the findings of an audit conducted under Subsection (i). | ||
The report must: | ||
(1) be made available on the department's Internet | ||
website; | ||
(2) be issued to a public facility user that has an | ||
interest in a development that is the subject of an audit; and | ||
(3) describe in detail the nature of any failure to | ||
comply with the requirements in this section and Section 303.0421. | ||
(j-1) The department shall adopt forms and reporting | ||
standards for the auditing process. | ||
(k) The initial audit report required by Subsection (j) is | ||
due not later than June 1 of the year following the first | ||
anniversary of: | ||
(1) the date of acquisition for an occupied | ||
multifamily residential development that is acquired by a | ||
corporation; or | ||
(2) the date a new multifamily residential development | ||
first becomes occupied by one or more tenants. | ||
(k-1) Subsequent audit reports following the issuance of | ||
the initial audit report under Subsection (k) are due not later than | ||
June 1 of each year. | ||
(l) Not later than the 60th day after the date of receipt of | ||
the department's audit report under Subsection (j)(2), a public | ||
facility user shall provide a copy of the report to the comptroller, | ||
the appraisal district containing the development that is the | ||
subject of the report, the corporation, the governing body of the | ||
corporation's sponsor, and, if the corporation's sponsor is a | ||
housing authority, the elected officials who appointed the housing | ||
authority's governing board. | ||
(l-1) Not later than June 1 of each year for which an audit | ||
is required under Subsection (i), a public facility user to which | ||
Section 303.0421 applies shall pay to the department a fee of $40 | ||
per unit contained in the development, as determined by the audit, | ||
to reimburse the department for expenses related to the audit. | ||
(l-2) An exemption under Section 303.042(c) 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 is determined by an audit conducted under Subsection (i) to | ||
not be in compliance with the requirements of this section and | ||
Section 303.0421. | ||
(l-3) An audit conducted under Subsection (i) is subject to | ||
disclosure under Chapter 552, Government Code, except that | ||
information containing tenant names, unit numbers, or other tenant | ||
identifying information may be redacted. | ||
(m) Each lease agreement for a residential unit in a | ||
multifamily residential development subject to this section must | ||
provide that: | ||
(1) the landlord may not retaliate against the tenant | ||
or the tenant's guests by taking an action because the tenant | ||
established, attempted to establish, or participated in a tenant | ||
organization; | ||
(2) the landlord may only choose to not renew the lease | ||
if the tenant: | ||
(A) is in material noncompliance with the lease, | ||
including nonpayment of rent; | ||
(B) committed one or more substantial violations | ||
of the lease; | ||
(C) failed to provide required information on the | ||
income, composition, or eligibility of the tenant's household; or | ||
(D) committed repeated minor violations of the | ||
lease that: | ||
(i) disrupt the livability of the property; | ||
(ii) adversely affect the health and safety | ||
of any person or the right to quiet enjoyment of the leased premises | ||
and related development facilities; | ||
(iii) interfere with the management of the | ||
development; or | ||
(iv) have an adverse financial effect on | ||
the development, including the failure of the tenant to pay rent in | ||
a timely manner; and | ||
(3) to not renew the lease, the landlord must serve a | ||
written notice of proposed nonrenewal on the tenant not later than | ||
the 30th day before the effective date of nonrenewal. | ||
(n) A tenant may not waive the protections provided by | ||
Subsection (m). | ||
(o) If an audit report submitted under Subsection (j) | ||
indicates noncompliance with this section, a public facility user: | ||
(1) must be given: | ||
(A) written notice from the Texas Department of | ||
Housing and Community Affairs or appropriate appraisal district | ||
that: | ||
(i) is provided not later than the 45th day | ||
after the date a report has been submitted under Subsection (j); | ||
(ii) specifies the reasons for | ||
noncompliance; | ||
(iii) contains at least one option for a | ||
corrective action to resolve the noncompliance; and | ||
(iv) informs the public facility user that | ||
failure to resolve the noncompliance will result in the loss of an | ||
exemption under Section 303.042(c); | ||
(B) 60 days after the date notice is received | ||
under this subdivision, to resolve the matter that is the subject of | ||
the notice; and | ||
(C) if a matter that is the subject of a notice | ||
provided under this subdivision is not resolved to the satisfaction | ||
of the Texas Department of Housing and Community Affairs and the | ||
appropriate appraisal district during the period provided by | ||
Paragraph (B), a second notice that informs the public facility | ||
user of the loss of the exemption under Section 303.042(c) due to | ||
noncompliance with this section; | ||
(2) is considered to be in compliance with this | ||
section if notice under Subdivision (1)(A) is not provided as | ||
specified by Subparagraph (i) of that paragraph; and | ||
(3) may appeal a determination of noncompliance to a | ||
district court in the county in which the applicable development is | ||
located. | ||
(p) Requirements under this subchapter relating to the | ||
reservation of income-restricted residential units or income | ||
restrictions applicable to tenants of a multifamily residential | ||
development subject to this subchapter must be documented in a land | ||
use restriction agreement or a similar restrictive instrument that: | ||
(1) ensures that the applicable restrictions are in | ||
effect for not less than 10 years; and | ||
(2) is recorded in the real property records of the | ||
county in which the development is located. | ||
(q) An agreement or instrument recorded under Subsection | ||
(p) may be terminated if the development that is the subject of the | ||
agreement or instrument: | ||
(1) is the subject of a foreclosure sale; or | ||
(2) becomes ineligible for an exemption under Section | ||
303.042(c) for a reason other than the failure to comply with | ||
restrictions recorded in the agreement or instrument. | ||
Sec. 303.0426. STUDY OF TAX EXEMPTIONS FOR MULTIFAMILY | ||
RESIDENTIAL DEVELOPMENTS OWNED BY PUBLIC FACILITY CORPORATIONS. | ||
(a) In this section, "board" means the Legislative Budget Board. | ||
(b) The board shall conduct a study that assesses the | ||
long-term effects on the state's funding and revenue, including | ||
funding for public education, of ad valorem tax exemptions and | ||
sales and use tax exemptions for multifamily housing developments | ||
under Sections 303.042(c) and 303.0421(f). | ||
(c) Not later than December 10, 2024, the board shall submit | ||
to the governor, the lieutenant governor, and the speaker of the | ||
house of representatives a report on the results of the study. The | ||
report must include an estimate of: | ||
(1) the funding or revenue that the state has lost as a | ||
result of the exemptions; and | ||
(2) the potential increase in funding or revenue that | ||
would result from the repeal of the exemptions. | ||
(d) The board may delegate any authority granted to the | ||
board under this section that the board determines is necessary to | ||
conduct the study under this section. | ||
(e) This section expires January 1, 2025. | ||
SECTION 9. Sections 392.005(c) and (d), Local Government | ||
Code, are amended to read as follows: | ||
(c) An exemption under this section for a multifamily | ||
residential development which is owned by [ |
||
a housing development corporation[ |
||
created by a housing authority, other than a public facility | ||
corporation created by a housing authority under Chapter 303, and | ||
which does not have at least 20 percent of its residential units | ||
reserved for public housing units, applies only if: | ||
(1) the authority holds a public hearing, at a regular | ||
meeting of the authority's governing body, to approve the | ||
development; and | ||
(2) at least: | ||
(A) 12 percent of the units in the multifamily | ||
residential development are reserved for occupancy: | ||
(i) as very low income housing units, as | ||
defined under Section 303.0425; or | ||
(ii) by participants in the housing choice | ||
voucher program; | ||
(B) 12 percent of the units in the multifamily | ||
residential development are reserved for occupancy as lower income | ||
housing units, as defined under Section 303.0425; and | ||
(C) 12 [ |
||
multifamily residential development are reserved for occupancy as | ||
moderate income housing units, as defined under Section 303.0425 | ||
[ |
||
(d) For the purposes of Subsection (c), a "public housing | ||
unit" is a residential [ |
||
a public housing operating subsidy. It does not include a unit for | ||
which payments are made to the landlord under the federal Section 8 | ||
Housing Choice Voucher Program. | ||
SECTION 10. (a) Subject to Subsections (b), (c), and (d) of | ||
this section, Sections 303.0421 and 303.0425, Local Government | ||
Code, as added by this Act, apply only to a tax imposed for a tax | ||
year beginning on or after the effective date of this Act. | ||
(b) Subject to Subsections (c) and (d) of this section, | ||
Sections 303.0421 and 303.0425, Local Government Code, as added by | ||
this Act, apply only to a multifamily residential development that | ||
is approved on or after the effective date of this Act by a public | ||
facility corporation or the sponsor of a public facility | ||
corporation, in accordance with Chapter 303, Local Government Code. | ||
A multifamily residential development that was approved by a public | ||
facility corporation or the sponsor of a public facility | ||
corporation before the effective date of this Act is governed by the | ||
law in effect on the date the development was approved by the | ||
corporation or sponsor, and the former law is continued in effect | ||
for that purpose. | ||
(c) Subject to Subsection (d) of this section, Section | ||
303.0421(d), Local Government Code, as added by this Act, applies | ||
only to an occupied multifamily residential development that is | ||
acquired by a public facility corporation on or after the effective | ||
date of this Act. An occupied multifamily residential development | ||
that is acquired by a public facility corporation before the | ||
effective date of this Act is governed by the law in effect on the | ||
date the development was acquired by the public facility | ||
corporation, and the former law is continued in effect for that | ||
purpose. | ||
(d) Notwithstanding any other provision of this section: | ||
(1) Sections 303.0425(g), (i), (j), (k), (l), (l-1), | ||
and (l-2), Local Government Code, as added by this Act, apply to all | ||
multifamily residential developments owned by a public facility | ||
corporation; and | ||
(2) the initial audit report required to be submitted | ||
under Section 303.0425(j), Local Government Code, as added by this | ||
Act, for a multifamily residential development that was approved or | ||
acquired by a public facility corporation before the effective date | ||
of this Act must be submitted by the later of: | ||
(A) the date established by Section 303.0425(k), | ||
Local Government Code, as added by this Act; or | ||
(B) June 1, 2024. | ||
(e) Section 303.0421(h), Local Government Code, as added by | ||
this Act, does not affect a tax exemption available to a multifamily | ||
residential development under Section 303.0421(f), Local | ||
Government Code, as amended by this Act, immediately before | ||
December 31, 2025. A tax exemption available to a multifamily | ||
residential development under Section 303.0421(f), Local | ||
Government Code, immediately before that date is covered by the law | ||
in effect when the development qualified for the exemption, and | ||
that law is continued in effect for that purpose. | ||
SECTION 11. Not later than January 1, 2024, the Texas | ||
Department of Housing and Community Affairs shall adopt rules | ||
necessary to implement Section 303.0425(i), Local Government Code, | ||
as added by this Act. | ||
SECTION 12. This Act takes effect September 1, 2023. |