85TH TEXAS LEGISLATURE

3/2/2017

TAAHP BILL WATCH

Tx. Affordable Housing
Y&
03-02-2017 – 13:20:16
Action in the date range   Link to Related Information   ( ) – Priority

Tx. Affordable Housing
  HB 44  
Keough, Mark(R) Relating to a limitation on the maximum appraised value of real property for ad valorem tax purposes of 105 percent of the appraised value of the property for the preceding tax year.
Companions:
HB 1884 Pena, Gilbert (F) (Refiled from 84R Session)
HB 2041 Bell, Cecil (Refiled from 84R Session)
Track Name(s): Property Tax/Appraisal
Bill History: 02-13-17 H Introduced and referred to committee on House Ways and Means

  HB 183  
Dutton, Harold(D) Relating to the consequences of successfully completing a period of deferred adjudication community supervision.
Track Name(s): Supportive Housing
Bill History: 02-14-17 H Introduced and referred to committee on House Corrections

  HB 192  
Bernal, Diego(D) Relating to the prohibition of housing discrimination on the basis of sexual orientation or gender identity or expression and to the enforcement of that prohibition.
Companions:
HB 2860 Bernal, Diego (F) (Refiled from 84R Session)
Track Name(s): Fair Housing
Bill History: 02-21-17 H Introduced and referred to committee on House Business and Industry

  HB 309  
Johnson, Jarvis(D) Relating to the establishment of a home and community-based services program under Medicaid for certain persons with severe and persistent mental illness.
Track Name(s): Supportive Housing (Neutral)
Bill History: 02-15-17 H Introduced and referred to committee on House Public Health

  HB 616  
Leach, Jeff(R) Relating to the system by which an application for a low income housing tax credit is scored.
Companions:
HB 2352 Guerra, Bobby (Identical)
  2-23-17 H Filed
Track Name(s): QAP (Monitor-Support)
Bill History: 02-22-17 H Introduced and referred to committee on House Urban Affairs

  HB 773 (5)
Johnson, Eric(D) Relating to information on projected changes in weather, water availability, and climate variability in strategic plans of certain state agencies.
Track Name(s): TDHCA
Bill History: 03-01-17 H Introduced and referred to committee on House State Affairs

  HB 885  
King, Ken(R) Relating to the system by which an application for a low income housing tax credit is scored.
Track Name(s): (Master List Only), QAP
Bill History: 02-23-17 H Introduced and referred to committee on House Urban Affairs

  HB 993 (5)
Walle, Amando(D) Relating to the provision of accounting statements by mortgage servicers for certain loans secured by a lien on residential real property.
Companions:
HB 1239 Walle, Amando (Refiled from 84R Session)
Track Name(s): TDHCA
Bill History: 02-27-17 H Introduced and referred to committee on House Investments and Financial Services

  HB 1449 (4)
Simmons, Ron(R) Relating to prohibiting local governments from imposing certain fees on new construction.
Companions:
SB 852 Nelson, Jane (Identical)
  2-27-17 S Introduced and referred to committee on Senate Business and Commerce
Track Name(s): TAA/TAB (Support)
Bill History: 02-01-17 H Filed

  HB 1512 (5)
Isaac, Jason(R) Relating to the maximum loan amount made to persons under the owner-builder loan program.
Track Name(s): TDHCA
Bill History: 02-02-17 H Filed

  HB 1548  
Dutton, Harold(D) Relating to the exemption from ad valorem taxation by a school district of certain property used to build low-income or moderate-income housing.
Track Name(s): Property Tax/Appraisal
Bill History: 02-06-17 H Filed

  HB 1609  
Price, Four(R) Relating to the system by which an application for a low income housing tax credit is scored.
Track Name(s): QAP (Monitor-Support)
Bill History: 02-07-17 H Filed

  HB 1653  
Swanson, Valoree (F)(R) Relating to the system by which an application for a low income housing tax credit is scored.
Track Name(s): QAP (Oppose)
Bill History: 02-08-17 H Filed

  HB 1792  
Swanson, Valoree (F)(R) Relating to the evaluation of an application for a low income housing tax credit.
Track Name(s): (Master List Only) (Oppose), QAP
Bill History: 02-13-17 H Filed

  HB 1821 (4)
Clardy, Travis(R) Relating to a late fee for failing to pay rent under a residential lease.
Companions:
SB 921 Perry, Charles (Identical)
  2-28-17 S Introduced and referred to committee on Senate Business and Commerce
Track Name(s): TAA/TAB
Bill History: 02-13-17 H Filed

  HB 1834 (5)
Dutton, Harold(D) Relating to the payment of application fees for a commitment of low income housing tax credits.
Track Name(s): (Master List Only) (Monitor-Opposed), TDHCA
Bill History: 02-14-17 H Filed

  HB 2109  
Dutton, Harold(D) Relating to the evaluation of applications for certain financial assistance administered by the Texas Department of Housing and Community Affairs.
Track Name(s): (Master List Only) (Monitor-Opposed), QAP (Monitor-Opposed)
Bill History: 02-20-17 H Filed

  HB 2261  
Dutton, Harold(D) Relating to the amendment of an application for an allocation of low income housing tax credits.
Track Name(s): QAP (Monitor-Opposed)
Bill History: 02-22-17 H Filed

  HB 2312  
Dukes, Dawnna(D) Relating to the prohibition of housing discrimination and to the enforcement of that prohibition.
Track Name(s): Fair Housing
Bill History: 02-23-17 H Filed

  HB 2336  
Dutton, Harold(D) Relating to the participation by certain state and local elected officials during the process for evaluating an application for a low income housing tax credit.
Track Name(s): QAP (Monitor-Opposed)
Bill History: 02-23-17 H Filed

  HB 2352  
Guerra, Bobby(D) Relating to the system by which an application for a low income housing tax credit is scored.
Companions:
HB 616 Leach, Jeff (Identical)
  2-22-17 H Introduced and referred to committee on House Urban Affairs
Track Name(s): QAP (Monitor-Support)
Bill History: 02-23-17 H Filed

  HB 2405  
Gonzalez, Mary(D) Relating to the allocation of low income housing tax credits to developments in certain areas designated as rural.
Track Name(s): QAP
Bill History: 02-24-17 H Filed

  HB 2480 (5)
Johnson, Eric(D) Relating to provisions applicable to affordable housing located in a reinvestment zone in certain areas of the state.
Track Name(s): TDHCA
Bill History: 02-27-17 H Filed

  HB 2633  
Dutton, Harold(D) Relating to the evaluation of applications for certain financial assistance administered by the Texas Department of Housing and Community Affairs.
Track Name(s): QAP (Monitor-Opposed)
Bill History: 03-01-17 H Filed

  SB 393 (5)
Burton, Konni(R) Relating to abolishing the Texas Enterprise Fund and the disposition of the balance of that fund.
Track Name(s): TDHCA
Bill History: 02-01-17 S Introduced and referred to committee on Senate Natural Resources and Economic Develop

  SB 403  
Kolkhorst, Lois(R) Relating to a temporary prohibition on increasing the market value of certain parcels of real property for ad valorem tax purposes following determination of a protest or appeal.
Track Name(s): Property Tax/Appraisal
Bill History: 02-01-17 S Introduced and referred to committee on Senate Finance

  SB 451 (4)
Hancock, Kelly(R) Relating to regulation of short-term rentals by municipalities and counties.
Companions:
HB 2551 Parker, Tan (Identical)
  2-28-17 H Filed
Track Name(s): TAA/TAB
Bill History: 02-06-17 S Introduced and referred to committee on Senate Business and Commerce

  SB 526 (5)
Birdwell, Brian(R) Relating to the abolishment of certain advisory committees and other entities created to assist or advise state agencies or officers.
Track Name(s): TDHCA
Bill History: 02-08-17 S Introduced and referred to committee on Senate Business and Commerce

  SB 852 (4)
Nelson, Jane(R) Relating to prohibiting local governments from imposing certain fees on new construction.
Companions:
HB 1449 Simmons, Ron (Identical)
  2- 1-17 H Filed
Track Name(s): TAA/TAB (Support)
Bill History: 02-27-17 S Introduced and referred to committee on Senate Business and Commerce

  SB 921 (4)
Perry, Charles(R) Relating to a late fee for failing to pay rent under a residential lease.
Companions:
HB 1821 Clardy, Travis (Identical)
  2-13-17 H Filed
Track Name(s): TAA/TAB
Bill History: 02-28-17 S Introduced and referred to committee on Senate Business and Commerce

 


2/9/17

SENATE Intergovernmental Relations Committee

Eddie Lucio – Chair
Paul Bettencourt – Vice-Chair
Donna Campbell
Sylvia Garcia
Don Huffines
Jose Menendez
Van Taylor

Click HERE for full Senate committee appointments

House Urban Affairs Committee

Carol Alvarado – Chair

Jeff Leach – Vice-Chair

Diego Bernal

Jarvis Johnson of Harris

Gary Elkins

Jason Isaac

William “Bill” Zedler

 

Click HERE for full House committee appointments

Click HERE for House committee schedule


 


 

Lt. Governor Appoints Senate Committees

click page to view/print

 


 

Election results affecting development of affordable housing

article-01-reagan-housing-legacy The growing affordable housing crisis in Texas could get worse. Tens of millions of dollars’ worth of affordable housing developments that had already won hard-fought approvals are on hold, following the election results some believe could lead to a lowering of the corporate tax rate.

Across Texas – and the nation – private investors who purchase the tax credits are reconsidering their investments in the program as a result of speculation that the credits might not be needed if the corporate tax rate is lowered as has been touted by the Trump administration.

The Low-Income Housing Tax Credit Program is one of the most successful housing programs in the nation’s history, combining public good with corporate interests. In Texas, the program is overseen by the Texas Department of Housing and Community Affairs, which this year awarded $65.3 million in housing tax credits to private developers in Texas.

These housing tax credits were expected to make it possible for private developers to build 64 new affordable apartment communities across Texas. These developments will offer rents affordable to households earning up to 60 percent of the area median family income.

Developers who won these housing tax credits need to sell them to investors who can use them, such as big banks, insurance companies and other corporations with high tax liabilities. But with the future corporate tax rate — currently at about 35 percent — up in the air, investors are backing away from closing.

This means a proposed senior living development to be built outside Waco, for example, is on hold, along with countless others across the state and nation.

“Our top investor for the Waco development is set to walk away from closing because they are not sure what the corporate tax rate will be next year,” said Janine Sisak, an executive with DMA Companies and TAAHP’s QAP Committee Chairperson. “Other investors tell me this isn’t an isolated incident. Investors are pulling out of deals, or drastically repricing them mid-stream, based on new models assuming a corporate tax rate of between 20 percent and 25 percent instead of the current 35 percent.”

“The effects of this closing crisis for affordable housing developments could be far-reaching if not resolved quickly”, said Frank Jackson, TAAHP executive director.

“Building affordable housing provides not only high-quality homes for those who need them most, it also provides jobs and helps lift local tax bases,” Jackson said. The National Association of Homebuilders says 122 jobs are created for every 100 Low Income Housing Tax Credit apartments built.

Read more of the TAAHP Legislative Report:
Election results affecting development of affordable housing
Affordable housing crisis hits teachers
NIMBY fears unfounded: Affordable housing doesn’t lower property values
Guidance Needed for Setting Local Tax Rates on Housing Tax Credit Developments

Affordable housing crisis hits teachers

article-01-reagan-housing-legacy
School districts in Austin, Dallas, Houston and San Antonio struggle every year to hire enough qualified teachers.

But the fresh graduates most eager to teach in big city schools face a huge problem once they are hired on — none of them can afford to buy a home in those cities.

That’s just one of the results from the National Housing Conference’s annual Paycheck to Paycheck report, which this year focuses on school employees. The report highlights some of the real consequences of Texas’ growing affordable housing crisis.

“Living near work cuts down on a household’s economic costs, like transportation, as well as personal costs, such as emotional and physical stress,” the report states. “Workers are forced to make tradeoffs when housing is not available near work. Cheaper housing that is farther away from work means longer commutes that eat up time and money … Living closer to work, in more expensive housing, means less of a household’s wages are going to things like food and healthcare.”

The study considered housing costs affordable if they did not exceed 30 percent of a household’s income. Buying a home was considered affordable if the mortgage payment (30-year fixed-rate mortgage with a 10 percent down payment) did not exceed 28 percent of a worker’s income.

Unfortunately, no affordable housing was built in any of the state’s biggest cities last year through the state’s most effective housing program, the Housing Tax Credit Program, which is overseen by the Texas Department of Housing and Community Affairs.

“Our teachers should be a part of the communities in which they work,” said Frank Jackson, executive director of the Texas Affiliation of Affordable Housing Providers. “Removing burdensome bureaucratic regulations from the state’s Housing Tax Credit Program, such as requiring letters of support from politicians and local governments, would encourage private developers to build more quality affordable housing where it is needed most.”

Read more of the TAAHP Legislative Report:
Election results affecting development of affordable housing
Affordable housing crisis hits teachers
NIMBY fears unfounded: Affordable housing doesn’t lower property values
Guidance Needed for Setting Local Tax Rates on Housing Tax Credit Developments

NIMBY fears unfounded: Affordable housing doesn’t lower property values

article-01-reagan-housing-legacyThe oft-cited fear that affordable housing will hurt the value of nearby homes is unfounded, according to a decade long look at the data.

“The bottom line for NIMBYs who fear that property values will take a hit when a low-income housing project locates nearby is that their anxiety is largely unfounded – at least in cities where housing is either expensive or in short supply,” writes Cheryl Young, a senior economist at Trulia, a real estate aggregator.

Building affordable housing where it’s needed most — where inventory is low and prices are high — doesn’t counter the economic realities of supply and demand on the market price for homes.

“There Doesn’t Go the Neighborhood: Low-income Housing Has No Impact on Nearby Home Values” studied the impact of affordable housing on nearby homes from 1996 to 2006. This study is only the latest to show this lack of correlation.

The study looked at more than 3,000 properties in the 20 least affordable metro areas and found there was no significant effect on nearby home values resulting from Housing Tax Credit developments.

In the nation’s 20 least affordable markets, their analysis of 3,083 low-income housing projects from 1996 to 2006 found no significant effect on home values located near a low-income housing project, with a few exceptions.

In Denver, homes located near low-income housing projects actually registered a positive effect in terms of price per square foot after a project was completed. While other studies have also shown no correlation, opponents to building affordable housing often cite the fear of lowered property values as their top concern.

“Unfortunately, developers of affordable housing are faced with educating the public about the benefits with each proposal, because Texas law has politicized the siting process,” said Frank Jackson, executive director of the Texas Affiliation of Affordable Housing Providers. “Battling ignorance, and sometimes racism, is just part of the job.”

Read more of the TAAHP Legislative Report:
Election results affecting development of affordable housing
Affordable housing crisis hits teachers
NIMBY fears unfounded: Affordable housing doesn’t lower property values
Guidance Needed for Setting Local Tax Rates on Housing Tax Credit Developments

Guidance Needed for Setting Local Tax Rates on Housing Tax Credit Developments

article-01-reagan-housing-legacy
Apartment complexes built with the state’s Low-Income Housing Tax Credit Program (LIHTC) are virtually indistinguishable aesthetically from their market-rate neighbors.

That’s great for the communities they seamlessly blend into. But for local tax appraisal districts unfamiliar with this successful public-private housing program, the drastic differences are causing headaches when it comes time to set the taxable value for these rent-stabilized apartments.

For example: Two apartment complexes share the same block. To the average person walking or driving by, these complexes look the same and so do the tenants. The major difference however, is in how the properties were financed, how that affects their potential income and how they should be taxed. Most importantly, LIHTC properties are the only rent-capped income properties in the state of Texas, and few if any, understand the drastic affect these deed-restricted rent caps have on their values.

One of the apartment complexes is a market rent development, financed conventionally with a mortgage loan. The other complex is an affordable development, financed with different sources of funds, including housing tax credits and a mortgage loan. Using housing tax credits as a portion of a development’s equity financing allows the “affordable” development to have a smaller mortgage loan than its “market-rate” neighbor, so it must charge lower rents.

Because one complex charges market-rate rents and the other charges lower, capped rates, the revenue generated is substantially different. How should the tax appraiser treat these properties?

The complexes cost about the same to build. If the properties were appraised based on their location and building costs, their appraised values would be about the same. But if the properties were appraised based on their net income, the affordable development would receive less rent and, therefore, pay less tax.

“When housing tax credit developments are overvalued, the owners are forced to litigate the value on an annual basis,” said Frank Jackson, executive director of the Texas Affiliation of Affordable Housing Providers. “Setting and publishing clear guidelines for the appraisal of affordable housing properties financed with tax credits will save everyone the time and trouble of setting tax values through litigation.”

Read more of the TAAHP Legislative Report:
Election results affecting development of affordable housing
Affordable housing crisis hits teachers
NIMBY fears unfounded: Affordable housing doesn’t lower property values
Guidance Needed for Setting Local Tax Rates on Housing Tax Credit Developments

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