85R20901 JAM-F By: González of El Paso H.B. No. 2792 A BILL TO BE ENTITLED AN ACT relating to housing authorities established by municipalities and counties. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Sections 392.005(c) and (d), Local Government Code, are amended to read as follows: (c) An exemption under this section for a multifamily residential development which is owned by [(i)] a public facility corporation created by a housing authority under Chapter 303, owned by [(ii)] a housing development corporation, or owned by [(iii)] a similar entity created by a housing authority and which does not have at least 20 percent of its units reserved for public housing units, rent-restricted units subsidized by a housing authority, or a combination of public housing and rent-restricted units, applies only if: (1) the authority holds a public hearing, at a regular meeting of the authority's governing body, to approve the development; and (2) 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. (d) For the purposes of Subsection (c), a "public housing unit": (1) is a dwelling unit for which the owner: (A) receives a public housing operating subsidy; or (B) received a public housing operating subsidy, if the dwelling unit was subsequently converted through the Rental Assistance Demonstration program administered by the United States Department of Housing and Urban Development as specified by the Consolidated and Further Continuing Appropriations Act of 2012 (Pub. L. No. 112-55) and its subsequent amendments; and (2) [. It] does not include a unit for which payments are made to the landlord under the federal Section 8 Housing Choice Voucher Program unless the unit was converted under the Rental Assistance Demonstration program. SECTION 2. Section 392.0331(b), Local Government Code, is amended to read as follows: (b) Except as provided by Subsection (b-1), in appointing commissioners under Section 392.031, a municipality with a municipal housing authority composed of five commissioners shall appoint at least one commissioner to the authority who is a tenant of a public housing project over which the authority has jurisdiction or who is a recipient of housing assistance administered through the authority's housing choice voucher program. Except as provided by Subsection (b-2), in appointing commissioners under Section 392.031, a municipality with a municipal housing authority composed of seven or more commissioners shall appoint at least two commissioners to the authority who are tenants of a public housing project over which the authority has jurisdiction or who are recipients of housing assistance administered through the authority's housing choice voucher program. SECTION 3. This Act takes effect September 1, 2017.