HomeMy WebLinkAboutResolution 2024-038 RESOLUTION NO. 2024-038
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORTH
RICHLAND HILLS, TEXAS, AUTHORIZING STAFF TO PURSUE A
STATUTORY AMENDMENT TO TEXAS LOCAL GOVERNMENT
CODE CHAPTER 394 REGARDING HOUSING FINANCE
CORPORATIONS IN MUNICIPALITIES AND COUNTIES; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of North Richland Hills ("City") is a home rule city acting under its
charter adopted by the electorate pursuant to Article XI, Section 5 of the
Texas Constitution and Chapter 9 of the Texas Local Government Code;
and
WHEREAS, the Texas Housing Finance Corporations Act, codified as Texas Local
Government Code Chapter 394 (the"Act"), provides regulations for housing
finance corporations which can be created by any local government, defined
as any municipality or county, for the purposes defined therein; and
WHEREAS, the purpose of the Act is to provide a means to finance the cost of residential
ownership and development that will provide decent, safe, and sanitary
housing at affordable prices for residents of local governments; and
WHEREAS, under the Act, all property owned by a housing finance corporation is exempt
from all taxes imposed by this state or any political subdivision of the State
of Texas; and
WHEREAS, the City acknowledges the general purpose of housing finance corporations
promotes the public health, safety, morals, and welfare of the citizens within
the jurisdiction of a housing finance corporation; and
WHEREAS, Section 394.005 of the Act provides that the authority granted by the Act to
create tax exempt housing does not apply within a municipality with more
than 20,000 inhabitants as determined by the housing finance corporation's
rules, resolutions relating to the issuance of bonds, or financing documents
relating to the issuance of bonds, unless the governing body of the
municipality approves the application of the Act to that property; and
WHEREAS, the City has become aware that the Cameron County Housing Finance
Corporation, which is located in south Texas, owns property located in the
City of Euless that has been registered as tax exempt without the approval
of Euless City Council; and
WHEREAS, the Cameron County Housing Finance Corporation has been found to own
properties throughout the State of Texas, outside of Cameron County,
which are all tax exempt; and
Resolution No.2024-038
Page 1 of 5
WHEREAS, the Cameron County Housing Finance Corporation has adopted an
interpretation of Section 394.005 of the Act that the consent of the governing
body of a municipality is only required if the housing finance corporation
requests such consent; and
WHEREAS, the City believes that the public interest in the State of Texas to provide
affordable housing is undermined by allowing housing finance corporations
to create tax exempt housing outside of the jurisdiction of such housing
finance corporation without offsetting the burdens placed on municipalities
to provide police and fire protection, parks and other public facilities, code
enforcement, and other governmental services that are unfunded due to the
tax-exempt status; and
WHEREAS, the Cities finds it would be in the best interest of its citizens to seek a
statutory amendment that would clarify the authority of housing finance
corporations to remove properties from a municipality's tax rolls without the
consent of the municipality.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
NORTH RICHLAND HILLS, TEXAS, THAT:
SECTION 1. The foregoing recitals are hereby found to be true and correct findings of the
City Council of the City of North Richland Hills, Texas, is fully incorporated
into the body of this Resolution.
SECTION 2. The City agrees and supports amendments to Chapter 394 of the Texas
Local Government Code, attached as Exhibit A, and authorize Cities' staff
to pursue the statutory amendments.
SECTION 3. This Resolution shall be in full force and effect from and after its passage.
PASSED AND APPROVED on this 12th of August 2024.
CITY OF NORTH RICHLAND HILLS
iG'VLct....y.._c
i a,,, J ck McCarty, Mayor
ATTEST: ;�w
...-0 ,:.C.'t;' ? ..r'i:.
Traci Henderson r ,>
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Assistant City Secretary ,4,',? r4 'w`'V
Resolution No. 2024-038
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APPROVED AS TO FORM AND LEGALITY:
f i# I ice,
Cara Leahy White, nterim CI y Attorney
APP TO CONTENT:
Craig Huls tor of Economic Development
Resolution No.2024-038
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EXHIBIT A
PROPOSED AMENDMENTS TO THE TEXAS HOUSING FINANCE
CORPORATIONS ACT — CHAPTER 394 OF THE TEXAS LOCAL
GOVERNMENT CODE
Section 394.005, Local Government Code, is amended to read as follows:
This chapter does not apply to The authority of a housing finance
corporation does not apply to property located within a municipality that has
not authorized, sponsored, or otherwise participated in the creation of the
housing finance corporation with more than 20,000 as determined by the
hausil4g-fin-agGe-Ge-rparatieWs-rulesresGiufiens-re[afi-R9-te the-issuance-of
unless
the governing body of the municipality approves the application of this
chapter to that property.
Section 394.032, Local Government Code, is amended by adding
subsection (f) to read as follows:
fa A housing finance corporation may only carry out the purposes stated
in this chapter within the jurisdictional boundaries of the local government
that has authorized, sponsored, or otherwise participated in the creation of
the housing finance corporation, except as otherwise provided under
Section 394.005.
Section 394.039, Local Government Code, is amended by revising
subsection (3) to read as follows:
A housing finance corporation may:
(1) lend money for its corporate purposes, invest and reinvest its
funds, and take and hold real or personal property as security for the
payment of the loaned or invested funds;
(2) mortgage, pledge, or grant security interest in any residential
development, home mortgage, note, or other property in favor of the
holders of bonds issued for those items; and
(3) purchase, receive, lease, or otherwise acquire, own, hold,
improve, use, or deal in and with real or personal property or interests in
that property,wherever thc property is located, as required by the purposes
of the corporation or as donated to the corporation; and
(4) sell, convey, mortgage, pledge, lease, exchange, transfer, and
otherwise dispose of all or part of its property and assets.
Resolution No.2024-038
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Section 394.9025, Local Government Code, is amended by adding
subsection (a) and re-designating the remaining subsections to
read as follows:
(a) A multifamily residential development covered by this chapter must
be located within the jurisdictional boundaries of the local government that
authorized, sponsored, or otherwise participated in the creation of the
housing finance corporation, except as otherwise provided under Section
394.005.
{a-) j Following a public hearing, a housing finance corporation may issue
bonds to finance a multifamily residential development to be owned by the
housing finance corporation if 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
family income.
{b} r'c Following a public hearing by the governing body of the local
government, a housing finance corporation may issue bonds to finance a
multifamily residential development to be owned by the housing finance
corporation in accordance with Section 394.004 if the housing finance
corporation receives approval of the governing body of the local
government.
Section 394.903, Local Government Code, is amended to read as follows:
(a) A residential development covered by this chapter must be located
within the jurisdictional boundaries of the local government that authorized,
sponsored, or otherwise participated in the creation of the housing finance
corporation, except as otherwise provided under Section 394.005.
(b) The local government may transfer any residential development site
to a housing finance corporation by sale or lease. The governing body of
the local government may authorize the transfer by resolution without
submitting the issue to the voters and without regard to the requirements,
restriction, limitations, or other provisions contained in any other general,
special, or local law. The site may be located wholly or partly inside or
outside the jurisdictional boundaries of the local government, except as
otherwise provided under Section 394.005.
Resolution No. 2024-038
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