Bill Text: TX SB402 | 2011-2012 | 82nd Legislature | Enrolled
Bill Title: Relating to community land trusts.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2011-06-17 - Effective on 1/1/12 [SB402 Detail]
Download: Texas-2011-SB402-Enrolled.html
S.B. No. 402 |
|
||
relating to community land trusts. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle A, Title 12, Local Government Code, is | ||
amended by adding Chapter 373B to read as follows: | ||
CHAPTER 373B. COMMUNITY LAND TRUSTS | ||
Sec. 373B.001. DEFINITION. In this chapter, "community | ||
housing development organization" has the meaning assigned by 42 | ||
U.S.C. Section 12704. | ||
Sec. 373B.002. CREATION OR DESIGNATION. The governing body | ||
of a municipality or county by ordinance or order may create or | ||
designate one or more community land trusts, including a housing | ||
finance corporation established under Chapter 394 or a land trust | ||
operated by a community housing development organization certified | ||
by the municipality or county, to operate in the municipality or | ||
county. | ||
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) exempt from federal income taxation under Section | ||
501(a), Internal Revenue Code of 1986, by being certified as an | ||
exempt organization under Section 501(c)(3) of that code. | ||
Sec. 373B.004. PURPOSES OF TRUST. The purposes of a | ||
community land trust are to: | ||
(1) provide affordable housing for low-income and | ||
moderate-income residents in the community; | ||
(2) promote resident ownership of housing; | ||
(3) keep housing affordable for future residents; and | ||
(4) capture the value of public investment for | ||
long-term community benefit. | ||
Sec. 373B.005. OWNERSHIP OF LAND AND HOUSING UNITS. A | ||
community land trust may retain title to land it acquires and may: | ||
(1) sell housing units located on the land and lease | ||
the land under ground leases with terms of at least 99 years; or | ||
(2) lease housing units located on the land. | ||
Sec. 373B.006. QUALIFICATIONS OF PURCHASERS OR LESSEES OF | ||
HOUSING UNITS. (a) A community land trust may sell housing units | ||
only to families with a yearly income at the time of sale at or below | ||
80 percent of the area median family income, adjusted for family | ||
size. | ||
(b) Notwithstanding Subsection (a), for housing units | ||
located on one or more tracts of land owned by the community land | ||
trust that constitute a contiguous geographic area or are located | ||
in the same platted subdivision, the trust may sell not more than 20 | ||
percent of the housing units to families with a yearly income at the | ||
time of sale that exceeds the amount provided by Subsection (a) but | ||
does not exceed 120 percent of the area median family income, | ||
adjusted for family size. | ||
(c) At least 25 percent of the housing units sold by the | ||
trust must be sold to families with a yearly income at the time of | ||
sale at or below 60 percent of the area median family income, | ||
adjusted for family size. | ||
(d) A community land trust may lease housing units only to | ||
families with a yearly income at the time of lease at or below 60 | ||
percent of the area median family income, adjusted for family size. | ||
(e) Notwithstanding Subsection (d), for housing units | ||
located on one or more tracts of land owned by the community land | ||
trust that constitute a contiguous geographic area or are located | ||
in the same platted subdivision, the trust may lease not more than | ||
20 percent of the housing units to families with a yearly income at | ||
the time of lease that exceeds the amount provided by Subsection (d) | ||
but does not exceed 80 percent of the area median family income, | ||
adjusted for family size. | ||
Sec. 373B.007. RELATION TO OTHER LAW. This chapter does not | ||
preclude the creation of a land trust by a nonprofit organization, | ||
including a community housing development organization, under | ||
other statutory or common law or the operation of that land trust | ||
inside or outside a municipality or county that has created or | ||
designated a community land trust under Section 373B.002. | ||
Sec. 373B.008. APPLICABILITY OF CHAPTER TO TRUST OPERATED | ||
BY HOUSING FINANCE CORPORATION. Section 373B.003 does not apply to | ||
a community land trust operated in the municipality or county by a | ||
housing finance corporation established under Chapter 394. | ||
SECTION 2. Subchapter B, Chapter 11, Tax Code, is amended by | ||
adding Section 11.1827 to read as follows: | ||
Sec. 11.1827. COMMUNITY LAND TRUST. (a) In this section, | ||
"community land trust" means a community land trust created or | ||
designated under Section 373B.002, Local Government Code. | ||
(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) meets the requirements of a charitable | ||
organization provided by Sections 11.18(e) and (f); | ||
(B) owns the land for the purpose of leasing the | ||
land and selling or leasing the housing units located on the land as | ||
provided by Chapter 373B, Local Government Code; and | ||
(C) engages exclusively in the sale or lease of | ||
housing as described by Paragraph (B) and related 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 before July 1 in the manner provided by law for | ||
official action by the body. | ||
(c) Property owned by a community land trust may not be | ||
exempted under Subsection (b) after the third anniversary of the | ||
date the trust acquires the property unless the trust is offering to | ||
sell or lease or is leasing the property as provided by Chapter | ||
373B, Local Government Code. | ||
(d) A community land trust entitled to an exemption from | ||
taxation by a taxing unit under Subsection (b) is also entitled to | ||
an exemption from taxation by the taxing unit of any real or | ||
tangible personal property the trust owns and uses in the | ||
administration of its acquisition, construction, repair, sale, or | ||
leasing of property. To qualify for an exemption under this | ||
subsection, property must be used exclusively by the trust, except | ||
that another person may use the property for activities incidental | ||
to the trust's use that benefit the beneficiaries of the trust. | ||
(e) To receive an exemption under this section, a community | ||
land trust must annually have an audit prepared by an independent | ||
auditor. The audit must include: | ||
(1) a detailed report on the trust's sources and uses | ||
of funds; and | ||
(2) any other information required by the governing | ||
body of the municipality or county that created or designated the | ||
trust under Section 373B.002, Local Government Code. | ||
(f) Not later than the 180th day after the last day of the | ||
community land trust's most recent fiscal year, the trust must | ||
deliver a copy of the audit required by Subsection (e) to: | ||
(1) the governing body of the municipality or county | ||
or an entity designated by the governing body; and | ||
(2) the chief appraiser of the appraisal district in | ||
which the property subject to the exemption is located. | ||
SECTION 3. Subsection (c), Section 11.43, Tax Code, is | ||
amended to read as follows: | ||
(c) An exemption provided by Section 11.13, 11.131, 11.17, | ||
11.18, 11.182, 11.1827, 11.183, 11.19, 11.20, 11.21, 11.22, | ||
11.23(h), (j), or (j-1), 11.231, 11.254, 11.29, 11.30, or 11.31, | ||
once allowed, need not be claimed in subsequent years, and except as | ||
otherwise provided by Subsection (e), the exemption applies to the | ||
property until it changes ownership or the person's qualification | ||
for the exemption changes. However, the chief appraiser may | ||
require a person allowed one of the exemptions in a prior year to | ||
file a new application to confirm the person's current | ||
qualification for the exemption by delivering a written notice that | ||
a new application is required, accompanied by an appropriate | ||
application form, to the person previously allowed the exemption. | ||
SECTION 4. Section 23.21, Tax Code, is amended by adding | ||
Subsections (c) and (d) 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 take into account the extent to which that use | ||
and limitation reduce the market value of the property. | ||
(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. | ||
SECTION 5. This Act applies only to ad valorem taxes imposed | ||
for a tax year beginning on or after the effective date of this Act. | ||
SECTION 6. This Act takes effect January 1, 2012. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 402 passed the Senate on | ||
April 14, 2011, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 402 passed the House on | ||
May 20, 2011, by the following vote: Yeas 146, Nays 3, one | ||
present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |