HomeMy WebLinkAbout24-1659 06-25-2024RESOLUTION NO. 24-1659
A JOINT RESOLUTION OF THE CITY OF EULESS, TEXAS, THE CITY
OF HURST, TEXAS, AND THE CITY OF BEDFORD, 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 Euless ("Euless"), the City of Hurst ("Hurst), and the City
of Bedford ("Bedford"), collectively referred to as the "Cities," are home rule cities acting
under their charters 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 Cities are all located in northeastern Tarrant County and share
common borders; 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
WHERAS, 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 Cities acknowledge 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, Euless has become aware that the Cameron County Housing
Finance Corporation, which is located in south Texas, owns property located in 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
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 Cities believe 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 find it would be in the best interest of their 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 AND MUTUALLY AGREED BY THE
CITY COUNCIL OF THE CITY OF EULESS, TEXAS, THE CITY COUNCIL OF THE
CITY OF HURST, TEXAS, AND THE CITY COUNCIL OF THE CITY OF BEDFORD,
TEXAS, THAT:
SECTION 1.
The foregoing recitals are hereby found to be true and correct findings of the City
Councils of the cities of Euless, Hurst and Bedford, Texas, and are fully incorporated
into the body of this Resolution.
SECTION 2.
The Cities jointly agree and support 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 become effective from and after its passage.
Resolution No. 24-1659, Page 2 of 5
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
EULESS, TEXAS, ON the 25th day of June 2024.
Linda"N4artin, '-Mayor
ATTEST:
KimAutter, City Secretary/Chief Governance Officer
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
HURST, TEXAS, BY RESOLUTION NO. 1860 ON THE 25th day of June 2024.
• M�ayor
.-lenry Wo
ATTEST:
RitaVF�-ick, CitySecretary
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
BEDFORD, TEXAS, BY RESOLUTION NO. 2024-54 ON the 25th day of June
2024.
Dan Cogan, Mayor
ATTEST:
dfor %�xl
MISCity Secretary ,
oil ti6n- No. 24-1659, Page 3 of 5
WAmIfAIir_1
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 nhnnter lees net apply to The authoritv 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 housina finance corporation with mere than
s d the_ h o �e nerneratien's rulesresell Miens relatina fe
2-8,889 ,a-..teeter-rn+rred--by�-�..—;;ou�,g fin...n .,.,, r.,..........., ..�.�.., ........�......... �.�....� ...
t4c iJ,auanse of bonds, er financing Analinvents relating to the issi Anne of be 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:
(f) A housina 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 housina 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 the
prenert„ is leeated, 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.
Section 394.9025, Local Government Code, is amended by adding subsection (a)
and re -designating the remaining subsections to read as follows:
Resolution No. 24-1659, Page 4 of 5
(a) A multifamily residential development covered by this chapter must be located
within the iurisdictional 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�-h 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.
{O ) 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
iurisdictional boundaries of the local government that authorized, sponsored, or
otherwise participated in the creation of the housina 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. 24-1659, Page 5 of 5