HBA-AMW H.B. 3383 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3383 By: Davis, Yvonne Ways & Means 4/2/2001 Introduced BACKGROUND AND PURPOSE Under current law, properties owned by community housing development organizations (organizations) are exempt from ad valorem taxation. However, concerns exist that some organizations are taking advantage of the exemption without reinvesting the savings that are realized by the organization's tax exempt status and are not using surplus revenue generated by affordable housing units to maintain the property or offer other support services. House Bill 3383 authorizes the governing body of a taxing unit to require an organization to expend at least 50 percent of the tax exemption value on non-housing support services. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 3383 amends the Tax Code to authorize the governing body of a taxing unit to require by ordinance or order that a community housing development organization or an organization that meets the requirements of a charitable organization and is exempt from ad valorem taxation exhibit that at least 50 percent of the exemption value be expended on social, educational, or economic development services for the residents of the property in the year in which the taxes are exempt from ad valorem taxation. EFFECTIVE DATE The Act takes effect on the 91st day after adjournment.