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.