Relating to the disclosure and posting of certain information regarding multifamily residential developments that receive certain tax exemptions and the eligibility of those developments to receive those exemptions.

89(R) SB 2260 - Engrossed version - Bill Text

By: Cook, Bettencourt

S.B. No. 2260

A BILL TO BE ENTITLED

AN ACT

relating to the disclosure and posting of certain information

regarding multifamily residential developments that receive

certain tax exemptions and the eligibility of those developments to

receive those exemptions.

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

SECTION 1. Subchapter A, Chapter 2306, Government Code, is

amended by adding Section 2306.009 to read as follows:

Sec.

2306.009.

REQUIRED DISCLOSURES BY CERTAIN

DEVELOPMENTS RECEIVING CERTAIN TAX EXEMPTIONS; POSTING OF CERTAIN

DEVELOPMENT INFORMATION. (a) The disclosure requirements under

this section apply only to a multifamily residential development

that receives a tax exemption in accordance with Section 303.042,

392.005, or 394.905, Local Government Code.

(b)

The department by rule shall require the owner of each

multifamily residential development to which this section applies

to submit, not later than April 30 of each year by certified mail,

to the appraisal district for the county in which the development is

located an annual disclosure on a form prescribed by the

department.

(c) The disclosure required by Subsection (b) must include:

(1) if available, the name of the development;

(2) the address of the development;

(3)

the name of each principal owner of the

development and the ownership shares each owner holds;

(4)

the total number of residential units at the

development;

(5)

if available, the appraised value of the

development based on the most recent appraisal conducted by the

appraisal district for the county in which the development is

located;

(6)

if available, the total dollar amount of the tax

exemption the development received for the preceding tax year based

on the appraised value of the development described by Subdivision

(5) multiplied by the rate for each tax from which the development

is exempt;

(7)

affordability information on the residential

units at the development, including:

(A)

the number of units that are income

restricted, including a breakdown of:

(i)

the income restriction levels of those

units; and

(ii)

the number of bedrooms and bathrooms

in those units;

(B)

the difference between the rent charged for

the units that are income restricted and the rent charged for other

units at the development by income restriction level and number of

bedrooms and bathrooms in those units; and

(C)

the number of tenants who participate in the

housing choice voucher program under Section 8, United States

Housing Act of 1937 (42 U.S.C. Section 1437f); and

(8)

any other information the department determines

necessary.

(d)

Not later than September 1 of each year, an appraisal

district shall provide notice to the department of each owner of a

development to which this section applies who does not submit the

disclosure under Subsection (b) by the date required under that

subsection.

The notice must include the development's address.

(e) An appraisal district shall:

(1)

review each disclosure submitted to the district

under Subsection (b) to verify the accuracy of the contents of the

disclosure; and

(2)

not later than September 1 of each year, submit to

the department the reviewed disclosures.

(f)

Not later than the 60th day after the date the

department receives the disclosures under Subsection (e), the

department shall compile into data sets the information:

(1)

from the disclosures submitted to the department

under Subsection (e); and

(2) collected by the department for developments that:

(A)

receive financial assistance administered

under Chapter 1372; or

(B)

are allocated housing tax credits under

Subchapter DD.

(g)

The department shall collaborate with the Department of

Information Resources to post the data sets compiled by the

department under Subsection (f) on the Texas Open Data Portal

established by the Department of Information Resources under

Section 2054.070. The department shall ensure the data sets posted

on the portal do not include information that is confidential or

protected from disclosure under federal or state law.

(h)

Not later than December 1 of each year, the department

shall prepare and submit to the legislature a written report that

includes a summary of the information contained in the data sets the

department compiles under Subsection (f). The department shall

ensure a report under this subsection does not disclose personal

identifying information of a tenant residing in a development

included in the report.

SECTION 2. Section 303.0421, Local Government Code, is

amended by adding Subsection (b-1) to read as follows:

(b-1)

Notwithstanding this section and Section 303.042(c),

an exemption under Section 303.042(c) for a multifamily residential

development applies only if the owner of the development has timely

submitted the disclosure required by Section 2306.009, Government

Code, for the preceding tax year.

SECTION 3. Section 392.005(c), Local Government Code, is

amended to read as follows:

(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) at least 50 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
; and

(3)

the owner of the development has timely submitted

the disclosure required by Section 2306.009, Government Code, for

the preceding tax year
.

SECTION 4. Section 394.905, Local Government Code, is

amended to read as follows:

Sec. 394.905. EXEMPTION FROM TAXATION.
(a)
The housing

finance corporation, all property owned by it, the income from the

property, all bonds issued by it, the income from the bonds, and the

transfer of the bonds are exempt, as public property used for public

purposes, from license fees, recording fees, and all other taxes

imposed by this state or any political subdivision of this state.

The corporation is exempt from the franchise tax imposed by Chapter

171, Tax Code, only if the corporation is exempted by that chapter.

(b)

Notwithstanding Subsection (a), a multifamily

residential development owned by a housing finance corporation is

exempt from taxes imposed by this state or a political subdivision

of this state only if the owner of the development has timely

submitted the disclosure required by Section 2306.009, Government

Code, for the preceding tax year.

SECTION 5. (a) The owner of a multifamily residential

development to which Section 2306.009, Government Code, as added by

this Act, applies shall submit the first disclosure required by

Subsection (b) of that section not later than April 30, 2026.

(b) Notwithstanding Section 2306.009(h), Government Code,

as added by this Act, the Texas Department of Housing and Community

Affairs is not required to submit the first report under that

subsection until December 1, 2026.

SECTION 6. Sections 303.0421, 392.005, and 394.905, Local

Government Code, as amended by this Act, apply only to a tax for a

tax year that begins on or after the effective date of this Act.

SECTION 7. This Act takes effect September 1, 2025.