Bill Text: TX HB3447 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to community land trusts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-03-31 - Referred to Land & Resource Management [HB3447 Detail]
Download: Texas-2017-HB3447-Introduced.html
By: Rodriguez of Travis | H.B. No. 3447 |
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relating to community land trusts. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 373B.003, Local Government Code, is | ||
amended to read as follows: | ||
Sec. 373B.003. NATURE OF TRUST. A community land trust | ||
created or designated under Section 373B.002 must be a nonprofit | ||
organization that is: | ||
(1) created to acquire and hold land for the benefit of | ||
developing and preserving long-term affordable housing in the | ||
municipality or county; and | ||
(2) organized as: | ||
(A) a nonprofit corporation that is exempt from | ||
federal income taxation under Section 501(a), Internal Revenue Code | ||
of 1986, by being listed [ |
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under Section 501(c)(3) of that code; | ||
(B) a limited partnership of which a nonprofit | ||
corporation described by Paragraph (A) controls 100 percent of the | ||
general partner interest; or | ||
(C) a limited liability company for which a | ||
nonprofit corporation described by Paragraph (A) serves as the only | ||
member. | ||
SECTION 2. Section 11.182, Tax Code, is amended by adding | ||
Subsection (l) to read as follows: | ||
(l) An exemption under Subsection (b) or (f) does not | ||
terminate because the organization receiving the exemption | ||
qualifies for an exemption for the same property under Section | ||
11.1827. | ||
SECTION 3. Section 11.1827, Tax Code, is amended by | ||
amending Subsection (b) and adding Subsection (g) to read as | ||
follows: | ||
(b) In addition to any other exemption to which the trust | ||
may be entitled, a community land trust is entitled to an exemption | ||
from taxation by a taxing unit of land owned by the trust, together | ||
with the housing units located on the land if they are owned by the | ||
trust, if: | ||
(1) the trust: | ||
(A) [ |
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the land and selling or leasing the housing units located on the | ||
land as provided by Chapter 373B, Local Government Code; and | ||
(B) [ |
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lease of housing as described by Paragraph (A) [ |
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activities, except that the trust may also engage in the | ||
development of low-income and moderate-income housing; and | ||
(2) the exemption is adopted by the governing body of | ||
the taxing unit [ |
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official action by the body. | ||
(g) Once adopted by the governing body of a taxing unit, the | ||
exemption provided by this section continues to apply to property | ||
located in the taxing unit until the governing body rescinds the | ||
exemption in the manner provided by law for official action by the | ||
body. | ||
SECTION 4. Section 11.436(a), Tax Code, is amended to read | ||
as follows: | ||
(a) An organization that acquires property that qualifies | ||
for an exemption under Section 11.181(a), [ |
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may apply for the exemption for the year of acquisition not later | ||
than the 30th day after the date the organization acquires the | ||
property, and the deadline provided by Section 11.43(d) does not | ||
apply to the application for that year. | ||
SECTION 5. Sections 23.21(c) and (d), Tax Code, are amended | ||
to read as follows: | ||
(c) In appraising land or a housing unit that is leased by a | ||
community land trust created or designated under Section 373B.002, | ||
Local Government Code, to a family meeting the income-eligibility | ||
standards established by Section 373B.006 of that code under | ||
regulations or restrictions limiting the amount that the family may | ||
be required to pay for the rental or lease of the property, the | ||
chief appraiser shall use the income method of appraisal as | ||
described by Section 23.012 to determine the appraised value of the | ||
property. The chief appraiser shall use that method regardless of | ||
whether the chief appraiser considers that method to be the most | ||
appropriate method of appraising the property. In appraising the | ||
property, the chief appraiser shall: | ||
(1) take into account the [ |
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and limitation applicable to the property for purposes of computing | ||
the actual rental income from the property and projecting future | ||
rental income; and | ||
(2) use the same capitalization rate that the chief | ||
appraiser uses to appraise other rent-restricted properties | ||
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(d) In appraising a housing unit that the owner or a | ||
predecessor of the owner acquired from a community land trust | ||
created or designated under Section 373B.002, Local Government | ||
Code, and that is located on land owned by the trust and leased by | ||
the owner of the housing unit, the chief appraiser shall take into | ||
account the extent to which any regulations or restrictions | ||
limiting the right of the owner of the housing unit to sell the | ||
housing unit, including any limitation on the price for which the | ||
housing unit may be sold, reduce the market value of the housing | ||
unit. If sale of the housing unit is subject to an eligible land use | ||
restriction, the chief appraiser may not appraise the housing unit | ||
in a tax year for an amount that exceeds the price for which the | ||
housing unit may be sold under the eligible land use restriction in | ||
that tax year. For purposes of this subsection, "eligible land use | ||
restriction" means an agreement or restrictive covenant applicable | ||
to a housing unit that: | ||
(1) is recorded in the real property records; | ||
(2) has a term of at least 40 years; | ||
(3) restricts the price for which the housing unit may | ||
be sold to a price that is or may be less than the market value of | ||
the housing unit; and | ||
(4) restricts the sale of the housing unit to a family | ||
meeting the income-eligibility standards established by Section | ||
373B.006, Local Government Code. | ||
SECTION 6. This Act applies only to ad valorem taxes imposed | ||
for a tax year that begins on or after the effective date of this | ||
Act. | ||
SECTION 7. This Act takes effect September 1, 2017. |