Tex.
Tax Code Section 23.215
Appraisal of Certain Nonexempt Property Used for Low-income or Moderate-income Housing
(a)
This section applies only to real property owned by an organization:(1)
for the purpose of renting the property to a low-income or moderate-income individual or family satisfying the organization’s income eligibility requirements;(2)
that is or will be financed under the low income housing tax credit program under Subchapter DD (Purpose), Chapter 2306 (Texas Department of Housing and Community Affairs), Government Code, and subject to a land use restriction agreement under that subchapter;(3)
that does not receive an exemption under Section 11.182 (Community Housing Development Organizations Improving Property for Low-income and Moderate-income Housing: Property Previously Exempt) or 11.1825 (Organizations Constructing or Rehabilitating Low-income Housing: Property Not Previously Exempt); and(4)
the owner of which has not entered into an agreement with any taxing unit to make payments to the taxing unit instead of taxes on the property.(b)
In appraising property that is under construction or that has not reached stabilized occupancy on January 1 of the tax year in which the property is appraised, the chief appraiser shall determine the value of the property in the manner provided by Section 11.1825 (Organizations Constructing or Rehabilitating Low-income Housing: Property Not Previously Exempt)(q) using the property’s projected income and expenses for the first full year of operation as established and utilized in the underwriting report pertaining to the property prepared by the Texas Department of Housing and Community Affairs under Subchapter DD (Purpose), Chapter 2306 (Texas Department of Housing and Community Affairs), Government Code, and adjust that value as provided by this subsection to determine the appraised value of the property. For a property under construction on January 1, the chief appraiser shall adjust the value to reflect the percentage of the construction that is complete on January 1. For a property on which construction is complete but that has not reached stabilized occupancy on January 1, the chief appraiser shall adjust the value to reflect the actual occupancy of the property on January 1. For purposes of this subsection, a property is not considered to be under construction if the purpose of the work being performed on the property is the maintenance or rehabilitation of the property.(c)
In appraising property for the first tax year following the year in which construction on the property is complete and occupancy of the property has stabilized and any tax year subsequent to that year, the chief appraiser shall determine the appraised value of the property in the manner provided by Section 11.1825 (Organizations Constructing or Rehabilitating Low-income Housing: Property Not Previously Exempt)(q).
Source:
Section 23.215 — Appraisal of Certain Nonexempt Property Used for Low-income or Moderate-income Housing, https://statutes.capitol.texas.gov/Docs/TX/htm/TX.23.htm#23.215 (accessed Jun. 5, 2024).
