SB2766 - Relating to public housing authorities.

      By: Cook S.B. No. 2766               A BILL TO BE ENTITLED   AN ACT   relating to public housing authorities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 392.002(9), (10), (11), and (12) Local   Government Code, is amended to read as follows:                (9)  "Persons of low income" means individuals or   families earning less than 60 percent of the area median income,   adjusted for family size, as defined by the United States   Department of Housing and Urban Development [ families or persons   who lack the amount of income that an authority considers necessary   to live, without financial assistance, in decent, safe, and   sanitary housing without overcrowding ].                (10)   "Persons of moderate income " means individuals   or families earning less than 80 percent of the area median income,   adjusted for family size, as defined by the United States   Department of Housing and Urban Development.                 (11)     "Rent" means any recurring fee or charge a tenant   is required to pay as a condition of occupancy, including but not   limited to, a fee or charge for the use of a common area or facility   reasonably associated with a multifamily residential rental   property.                 (12)  "Rent reduction" means the difference between:                       (i) the total rent charged during the tax year for   the income-restricted units in the multifamily residential   development; and                         (ii)     the maximum total rent that could be charged   during the tax year for the same units in the absence of any rent or   income restrictions on such units.          SECTION 2.  Section 392.005, Local Government Code, is   amended by adding Subsection (d), (e), and (f) and amended Sections   392.005(b), (c), and (c-1) to read as follows:          (b)  If a municipality, county, or political subdivision   furnishes improvements, services, or facilities for a housing   project, an authority may, in lieu of paying taxes or special   assessments, agree to reimburse in payments to the municipality,   county, or political subdivision an amount not greater than the   estimated cost to the municipality, county, or political   subdivision for the improvements, services, or facilities ,   provided that the governing body of each taxing unit in which the   housing project is to be located approves the payments .          (c)  An exemption under this section for a multifamily   residential development which is owned by a housing development   corporation or a similar entity 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)     the development is approved by the governing body   of each taxing unit in which the development is located; and                 (3)  [ (2) ]  at least :                       (A)  10 [ 50 ] percent of the units in the   multifamily residential development are reserved for occupancy by   individuals and families earning less than 60 [ 80 ] percent of the   area median income, adjusted for family size ; and                       (B)     40 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 income,   adjusted for family size ;                 (4)     the authority 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 authority 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;                 (5)     the development is approved by the governing body   of each taxing unit in which the development is located;                 (6)     for an occupied multifamily residential   development that is acquired by a authority that was occupied at the   time of acquisition or was occupied at any time within the two-year   period preceding the date of the acquisition:                       (A)     not less than 15 percent of the total gross   cost of acquiring the existing development, as shown in the   settlement statement related to the acquisition, 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   392.002(9), and at least 25 percent of the units in the development   are reserved for occupancy as moderate income housing units, as   defined under Section 392.002(10) 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                 (7)     not less than 30 days before final approval of the   development:                       (A)     the authority or authority's sponsor   conducts, or obtains from a professional entity that has experience   underwriting affordable multifamily residential developments and   does not have a financial interest in the applicable development,   developer, or public facility user, an underwriting assessment of   the proposed development that allows the authority to make a good   faith determination that:                             (i)     for an occupied multifamily residential   development acquired by a authority, 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 392.005(c) for the second,   third, and fourth years after the date of acquisition by the   corporation; and                             (ii)     for a newly constructed multifamily   residential development, 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 392.005(c) for the second, third, and   fourth years after the date of acquisition by the authority; and                       (B)     the authority publishes on its Internet   website a copy of the underwriting assessment described by   Paragraph (A).           (d)     A multifamily residential development that is owned by a   public facility 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.           (e)     Notwithstanding Subsection (b), an occupied multifamily   residential development that is acquired by a authority and to   which Subsection (c) 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)     For the purposes of Subsection (a), a "public housing   unit" is a residential unit for which the landlord receives a public   housing operating subsidy. It does not include a unit for which   payments are made to the landlord under the Section 8, United States   Housing Act of 1937 (42 U.S.C. Section 1437f).           (c-1)     An exemption under this section for a multifamily   residential development which is owned by a public facility   corporation created by a housing authority under Chapter 303   applies only if:                 (1)    the development is approved by the governing body   of each taxing unit in which the development is located;                 (2)   at least :                       (A)10 [ 50 ] percent of the units in the   multifamily residential development are reserved for occupancy by   individuals and families earning less [ not more ] than 60 [ 80 ]   percent of the area median income, adjusted for family size ; and                       (B)     40 percent of the units in the multifamily   residential development are reserved for occupancy by persons of   low income                 (3)  [ (2) ]   the development :                       (A)     has at least 20 percent of its residential   units reserved for public housing units;                       (B)     participates in the Rental Assistance   Demonstration program administered by the United States Department   of Housing and Urban Development;                       (C)     receives financial assistance administered   under Chapter 1372, Government Code, or receives financial   assistance from another type of tax-exempt bond; or                       (D)     receives financial assistance administered   under Subchapter DD, Chapter 2306, Government Code.          SECTION 3.Subchapter A, Chapter 392, Local Government Code,   is amended by adding Section 392.0051, and a heading is added to   that section to read as follows: Sec. 392.0051. ADDITIONAL   REQUIREMENTS FOR BENEFICIAL TAX TREATMENT RELATING TO CERTAIN & [Text truncated for display. Full text available on LegiScan.]