Relating to the area of operations of and certain tax exemptions available to housing authorities.

89(R) SB 1454 - Engrossed version - Bill Text

By: Bettencourt

S.B. No. 1454

A BILL TO BE ENTITLED

AN ACT

relating to the area of operations of and certain tax exemptions

available to housing authorities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 392.005, Local Government Code, is

amended by adding Subsection (e) to read as follows:

(e)

An exemption under this section does not apply to taxes

imposed on a multifamily residential development by a district that

provides water, sewer, or drainage service to the development,

unless the applicable authority has entered into a written

agreement with the district to make a payment to the district in

lieu of taxation, in the amount specified in the agreement.

In this

subsection, district means:

(1)

a conservation or reclamation district created

under Section 52, Article III, or Section 59, Article XVI, Texas

Constitution; or

(2)

an emergency services district created under

Chapter 775, Health and Safety Code.

SECTION 2. Section 392.014, Local Government Code, is

amended to read as follows:

Sec. 392.014. AREA OF OPERATION OF A MUNICIPAL HOUSING

AUTHORITY. The area of operation of a municipal housing authority

is
limited to
the
territorial boundaries of the
municipality for

which the authority is created [
and the area that is within five

miles of the territorial boundaries of the municipality and is not

within the territorial boundaries of another municipality
].

SECTION 3. Section 392.017(b), Local Government Code, is

amended to read as follows:

(b) A municipal housing authority may not undertake a

housing project outside the
territorial
boundaries of the

municipality in which it is authorized to exercise its powers

unless a resolution is adopted by
each
[
the
] governing body of the

political subdivision in which the housing project is to be located

and by the housing authority authorized to exercise its powers

exclusively in the political subdivision, if any:

(1) declaring a need for the municipal housing

authority to exercise its powers in the political subdivision; and

(2) authorizing a cooperation agreement under Section

392.059.

SECTION 4. Section 392.014, Local Government Code, as

amended by this Act, applies only to a housing project for which a

contract was entered into on or after the effective date of this

Act. A housing project for which a contract was entered into before

the effective date of this Act is governed by the law in effect on

the date the contract was entered into, and the former law is

continued in effect for that purpose.

SECTION 5. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.