Bill Text: TX HB683 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to the ad valorem taxation of property owned by certain organizations and used to provide affordable housing.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-02-21 - Referred to Ways & Means [HB683 Detail]
Download: Texas-2011-HB683-Introduced.html
82R2171 SMH-D | ||
By: Rodriguez | H.B. No. 683 |
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relating to the ad valorem taxation of property owned by certain | ||
organizations and used to provide affordable housing. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sections 11.1825(f), (l), and (q), Tax Code, are | ||
amended to read as follows: | ||
(f) For property to be exempt under this section, the | ||
organization must own the property for the purpose of constructing | ||
or rehabilitating a housing project on the property and: | ||
(1) renting the housing, regardless of whether the | ||
housing project consists of multifamily or single-family | ||
dwellings, to individuals or families whose median income is not | ||
more than 60 percent of the greater of: | ||
(A) the area median family income for the | ||
household's place of residence, as adjusted for family size and as | ||
established by the United States Department of Housing and Urban | ||
Development; or | ||
(B) the statewide area median family income, as | ||
adjusted for family size and as established by the United States | ||
Department of Housing and Urban Development; or | ||
(2) selling single-family dwellings to individuals or | ||
families whose median income is not more than the greater of: | ||
(A) the area median family income for the | ||
household's place of residence, as adjusted for family size and as | ||
established by the United States Department of Housing and Urban | ||
Development; or | ||
(B) the statewide area median family income, as | ||
adjusted for family size and as established by the United States | ||
Department of Housing and Urban Development. | ||
(l) If the property is owned for the purpose of | ||
rehabilitating a housing project on the property: | ||
(1) the original construction of the housing project | ||
must have been completed at least 10 years before the date the | ||
organization began actual rehabilitation of the project, if the | ||
project consists of multifamily dwellings; | ||
(2) the person from whom the organization acquired the | ||
project must have owned the project for at least five years, if the | ||
organization is not the original owner of the project and the | ||
project consists of multifamily dwellings; | ||
(3) the organization must provide to the chief | ||
appraiser and, if the project was financed with bonds, the issuer of | ||
the bonds a written statement prepared by a certified public | ||
accountant stating that the organization has spent on | ||
rehabilitation costs at least the greater of $5,000 or the amount | ||
required by the financial lender for each dwelling unit in the | ||
project; and | ||
(4) the organization must maintain a reserve fund for | ||
replacements: | ||
(A) in the amount required by the financial | ||
lender; or | ||
(B) if the financial lender does not require a | ||
reserve fund for replacements, in an amount equal to $300 per unit | ||
per year. | ||
(q) If property qualifies for an exemption under this | ||
section, the chief appraiser shall use the income method of | ||
appraisal as described [ |
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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) consider the restrictions provided by this section | ||
on the income of the individuals or families to whom the dwelling | ||
units of the housing project may be rented and the amount of rent | ||
that may be charged for purposes of computing the actual rental | ||
income from the property or projecting future rental income; and | ||
(2) use the same capitalization rate that the chief | ||
appraiser uses to appraise other rent-restricted properties. | ||
SECTION 2. This Act applies only to ad valorem taxes imposed | ||
for a tax year beginning on or after the effective date of this Act. | ||
SECTION 3. This Act takes effect January 1, 2012. |