Tex. Tax Code Section 11.182
Community Housing Development Organizations Improving Property for Low-income and Moderate-income Housing: Property Previously Exempt


(a)

In this section:

(1)

“Cash flow” means the amount of money generated by a housing project for a fiscal year less the disbursements for that fiscal year for operation and maintenance of the project, including:

(A)

standard property maintenance;

(B)

debt service;

(C)

employee compensation;

(D)

fees required by government agencies;

(E)

expenses incurred in satisfaction of requirements of lenders, including reserve requirements;

(F)

insurance; and

(G)

other justifiable expenses related to the operation and maintenance of the project.

(2)

“Community housing development organization” has the meaning assigned by 42 U.S.C. Section 12704.

(b)

An organization is entitled to an exemption from taxation of improved or unimproved real property it owns if the organization:

(1)

is organized as a community housing development organization;

(2)

meets the requirements of a charitable organization provided by Sections 11.18 (Charitable Organizations)(e) and (f);

(3)

owns the property for the purpose of building or repairing housing on the property to sell without profit to a low-income or moderate-income individual or family satisfying the organization’s eligibility requirements or to rent without profit to such an individual or family; and

(4)

engages exclusively in the building, repair, and sale or rental of housing as described by Subdivision (3) and related activities.

(c)

Property owned by the organization may not be exempted under Subsection (b) after the third anniversary of the date the organization acquires the property unless the organization is offering to rent or is renting the property without profit to a low-income or moderate-income individual or family satisfying the organization’s eligibility requirements.

(d)

A multifamily rental property consisting of 36 or more dwelling units owned by the organization that is exempted under Subsection (b) may not be exempted in a subsequent tax year unless in the preceding tax year the organization spent, for eligible persons in the county in which the property is located, an amount equal to at least 40 percent of the total amount of taxes that would have been imposed on the property in that year without the exemption on social, educational, or economic development services, capital improvement projects, or rent reduction. This subsection does not apply to property acquired by the organization using tax-exempt bond financing after January 1, 1997, and before December 31, 2001.

(e)

In addition to meeting the applicable requirements of Subsections (b) and (c), to receive an exemption under Subsection (b) for improved real property that includes a housing project constructed after December 31, 2001, and financed with qualified 501(c)(3) bonds issued under Section 145 of the Internal Revenue Code of 1986, tax-exempt private activity bonds subject to volume cap, or low-income housing tax credits, the organization must:

(1)

control 100 percent of the interest in the general partner if the project is owned by a limited partnership;

(2)

comply with all rules of and laws administered by the Texas Department of Housing and Community Affairs applicable to community housing development organizations; and

(3)

submit annually to the Texas Department of Housing and Community Affairs and to the governing body of each taxing unit for which the project receives an exemption for the housing project evidence demonstrating that the organization spent an amount equal to at least 90 percent of the project’s cash flow in the preceding fiscal year as determined by the audit required by Subsection (g), for eligible persons in the county in which the property is located, on social, educational, or economic development services, capital improvement projects, or rent reduction.

(f)

An organization entitled to an exemption under Subsection (b) is also entitled to an exemption from taxation of any building or tangible personal property the organization owns and uses in the administration of its acquisition, building, repair, sale, or rental of property. To qualify for an exemption under this subsection, property must be used exclusively by the organization, except that another person may use the property for activities incidental to the organization’s use that benefit the beneficiaries of the organization.

(g)

To receive an exemption under Subsection (b) or (f), an organization must annually:

(1)

have an audit prepared by an independent auditor that includes a detailed report on the organization’s sources and uses of funds; and

(2)

deliver a copy of the audit to the Texas Department of Housing and Community Affairs and to the chief appraiser of the appraisal district in which the property subject to the exemption is located.

(h)

Subsections (d) and (e)(3) do not apply to property owned by an organization if:

(1)

the entity that provided the financing for the acquisition or construction of the property:

(A)

requires the organization to make payments in lieu of taxes to the school district in which the property is located; or

(B)

restricts the amount of rent the organization may charge for dwelling units on the property; or

(2)

the organization has entered into an agreement with each taxing unit for which the property receives an exemption to spend in each tax year for the purposes provided by Subsection (d) or (e)(3) an amount equal to the total amount of taxes imposed on the property in the tax year preceding the year in which the organization acquired the property.

(i)

If any property owned by an organization receiving an exemption under this section has been acquired or sold during the preceding year, such organization shall file by March 31 of the following year with the chief appraiser in the county in which the relevant property is located, on a form promulgated by the comptroller of public accounts, a list of such properties acquired or sold during the preceding year.

(j)

An organization may not receive an exemption under Subsection (b) or (f) for property for a tax year unless the organization received an exemption under that subsection for the property for any part of the 2003 tax year.

(k)

Notwithstanding Subsection (j) of this section and Sections 11.43 (Application for Exemption)(a) and (c), an exemption under Subsection (b) or (f) does not terminate because of a change in the ownership of the property if the property is sold at a foreclosure sale and, not later than the 30th day after the date of the sale, the owner of the property submits to the chief appraiser evidence that the property is owned by an organization that meets the requirements of Subsections (b)(1), (2), and (4). If the owner of the property submits the evidence required by this subsection, the exemption continues to apply to the property for the remainder of the current tax year and for subsequent tax years until the owner ceases to qualify the property for the exemption. This subsection does not prohibit the chief appraiser from requiring the owner to file a new application to confirm the owner’s current qualification for the exemption as provided by Section 11.43 (Application for Exemption)(c).
Added by Acts 1997, 75th Leg., ch. 715, Sec. 2, eff. Jan. 1, 1998. Amended by Acts 2001, 77th Leg., ch. 842, Sec. 2, 4, eff. June 14, 2001; Acts 2001, 77th Leg., ch. 1191, Sec. 1, eff. Jan. 1, 2002; Acts 2003, 78th Leg., ch. 1156, Sec. 1, 2, eff. Jan. 1, 2004; Acts 2003, 78th Leg., ch. 1275, Sec. 2(120), eff. Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 505 (S.B. 426), Sec. 1, eff. June 16, 2007.
Acts 2013, 83rd Leg., R.S., Ch. 399 (S.B. 193), Sec. 1, eff. January 1, 2014.

Source: Section 11.182 — Community Housing Development Organizations Improving Property for Low-income and Moderate-income Housing: Property Previously Exempt, https://statutes.­capitol.­texas.­gov/Docs/TX/htm/TX.­11.­htm#11.­182 (accessed Mar. 16, 2024).

11.01
Real and Tangible Personal Property
11.02
Intangible Personal Property
11.11
Public Property
11.12
Federal Exemptions
11.13
Residence Homestead
11.14
Tangible Personal Property Not Producing Income
11.15
Family Supplies
11.16
Farm Products
11.17
Cemeteries
11.18
Charitable Organizations
11.19
Youth Spiritual, Mental, and Physical Development Associations
11.20
Religious Organizations
11.21
Schools
11.22
Disabled Veterans
11.23
Miscellaneous Exemptions
11.24
Historic Sites
11.25
Marine Cargo Containers Used Exclusively in International Commerce
11.26
Limitation of School Tax on Homesteads of Elderly or Disabled
11.27
Solar and Wind-powered Energy Devices
11.28
Property Exempted from City Taxation by Agreement
11.29
Intracoastal Waterway Dredge Disposal Site
11.30
Nonprofit Water Supply or Wastewater Service Corporation
11.31
Pollution Control Property
11.32
Certain Water Conservation Initiatives
11.33
Raw Cocoa and Green Coffee Held in Harris County
11.34
Limitation of Taxes on Real Property in Designated Areas of Certain Municipalities
11.35
Temporary Exemption for Qualified Property Damaged by Disaster
11.36
Child-care Facilities
11.41
Partial Ownership of Exempt Property
11.42
Exemption Qualification Date
11.43
Application for Exemption
11.44
Notice of Application Requirements
11.45
Action on Exemption Applications
11.46
Compilation of Partial Exemptions
11.47
Mail Survey of Residence Homesteads
11.48
Confidential Information
11.49
Legal Title Not Affected
11.50
Provision of Names of Individuals Receiving Residence Homestead Exemption to Another Chief Appraiser
11.111
Public Property Used to Provide Transitional Housing for Indigent Persons
11.132
Donated Residence Homestead of Partially Disabled Veteran
11.133
Residence Homestead of Surviving Spouse of Member of Armed Services Killed in Line of Duty
11.134
Residence Homestead of Surviving Spouse of First Responder Killed in Line of Duty
11.135
Continuation of Residence Homestead Exemption While Replacement Structure Is Constructed
11.141
Precious Metal Held in Precious Metal Depository
11.161
Implements of Husbandry
11.181
Charitable Organizations Improving Property for Low-income Housing
11.182
Community Housing Development Organizations Improving Property for Low-income and Moderate-income Housing: Property Previously Exempt
11.183
Association Providing Assistance to Ambulatory Health Care Centers
11.184
Organizations Engaged Primarily in Performing Charitable Functions
11.185
Colonia Model Subdivision Program
11.201
Additional Tax on Sale of Certain Religious Organization Property
11.211
Real Property Leased to Certain Schools
11.231
Nonprofit Community Business Organization Providing Economic Development Services to Local Community
11.251
Tangible Personal Property Exempt
11.252
Motor Vehicles Leased for Use Other than Production of Income
11.253
Tangible Personal Property in Transit
11.254
Motor Vehicle Used for Production of Income and for Personal Activities
11.261
Limitation of County, Municipal, or Junior College District Tax on Homesteads of Disabled and Elderly
11.271
Offshore Drilling Equipment Not in Use
11.311
Landfill-generated Gas Conversion Facilities
11.315
Energy Storage System in Nonattainment Area
11.421
Qualification of Religious Organization
11.422
Qualifications of a School
11.423
Qualification of Charitable Organization or Youth Association
11.424
Conflict Between Governing Regulation of Nonprofit Organization, Association, or Entity and Contract with United States
11.431
Late Application for Homestead Exemption
11.432
Homestead Exemption for Manufactured Home
11.433
Late Application for Religious Organization Exemption
11.434
Late Application for a School Exemption
11.435
Late Application for Charitable Organization Exemption
11.436
Application for Exemption of Certain Property Used for Low-income Housing
11.437
Exemption for Cotton Stored in Warehouse
11.438
Late Application for Veteran’s Organization Exemption
11.439
Late Applications for Disabled Veterans Exemptions
11.1801
Charity Care and Community Benefits Requirements for Charitable Hospital
11.1825
Organizations Constructing or Rehabilitating Low-income Housing: Property Not Previously Exempt
11.1826
Monitoring of Compliance with Low-income and Moderate-income Housing Exemptions
11.1827
Community Land Trust
11.4391
Late Application for Freeport Exemption

Accessed:
Mar. 16, 2024

§ 11.182’s source at texas​.gov