Bill > HB4307

This bill modifies regulations for multifamily residential developments financed, owned, or operated by public facility corporations seeking property tax exemptions. The bill expands and clarifies existing audit and compliance requirements for these developments. Specifically, the bill requires that to qualify for a tax exemption, developments must reserve at least 10% of units for lower-income housing and 40% for moderate-income housing, provide written notice to local taxing units, and potentially obtain approval from the municipal or county governing body. The bill also mandates that public facility users submit an annual compliance audit report to the Texas Department of Housing and Community Affairs and the local appraisal district, detailing their adherence to income restrictions and rent levels. Additionally, the bill introduces a new requirement for public facility users to submit a one-time exemption application to the state housing department and county tax assessor before claiming the tax exemption. If a development is found to be non-compliant through these audits, it may lose its tax exemption. These changes apply to all multifamily residential developments seeking tax exemptions, regardless of when they were approved or acquired, and will take effect on September 1, 2025.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4307