Austin City Code § 11-1-110 CRITERIA.
§ 11-1-110 - CRITERIA.
(A) In addition to any other exemption to which it may be entitled, a CLT is entitled to an exemption from taxation of land owned by the CLT, together with the housing units located on the land if they are owned by the CLT, if:
(1) the CLT is operated in a way that does not result in accrual of distributable profits, realization of private gain resulting from payment of compensation in excess of a reasonable allowance for salary or other compensation for services rendered, or realization of any other form of private gain;
(2) the CLT uses its assets in performing its affordable housing functions;
(3) by charter, bylaw, or other regulation adopted to govern its affairs the CLT requires that on discontinuance of the organization of the CLT by dissolution or otherwise that the assets be transferred to the City of Austin, the State of Texas, the United States, or a similar organization that is qualified as a charitable organization under Section 501(c)(3), Internal Revenue Code of 1986;
(4) the CLT owns the land for the purpose of leasing the land and selling or leasing the housing units located on the land as provided by Chapter 373B, Texas Local Government Code;
(5) the CLT engages exclusively in the sale or lease of housing as described by Paragraph (4) above and related activities except that the CLT may also engage in the development of low- income and moderate-income housing;
(6) by charter, bylaw, or other regulation to govern its affairs the CLT commits to long-term affordability of housing by using a ground lease with a purchase option formula for the purpose of leasing the land and selling or leasing the housing units located on the land as provided by Chapter 373B, Texas Local Government Code;
(7) the CLT is not controlled by, nor receives direction from, a for-profit entity or corporation;
(8) the CLT complies with Section 373B.006 of the Texas Local Government Code by selling or leasing housing units to families described in that section;
(9) the CLT has at least one year of experience developing affordable housing;
(10) the CLT has paid employee staff, with housing development experience, that has successfully completed affordable housing projects;
(11) the CLT is granted the exemption for the current calendar year by the City Council and the exemption is adopted by the City Council before July 1 by ordinance; and
(12) the City Council has not repealed this Article 4.
(B) Notwithstanding Subsection (A) above, property owned by a CLT may not be exempted under Subsection (A) after the third anniversary of the date that the CLT acquires the property unless the CLT is offering to sell or lease or is leasing the property as provided by Chapter 373B, Texas Local Government Code.
(C) A CLT entitled to an exemption from taxation under Subsection (A) is also entitled to an exemption from taxation of any real or tangible personal property the CLT owns and uses in the administration of its acquisition, construction, repair, sale, or leasing of long- term affordable housing.
(D) To qualify for an exemption under Subsection (C), property must be used exclusively by the CLT, except that another person may use the property for activities incidental to the CLT's use that benefit the beneficiaries of the CLT.
(E) To receive an exemption under this section, a CLT must annually have a financial audit prepared by an independent auditor. The audit must include a detailed written report:
(1) describing the CLT's sources and uses of funds; and
(2) including an A-133 analysis of compliance with federal grants, if applicable; an analysis of internal controls; and the auditor's opinion letter to the board of directors and management.
(F) Not later than the 180th day after the last day of the CLT's most recent fiscal year, the CLT must deliver a copy of the audit required by Subsection (E) to:
(1) the Director of Neighborhood Housing and Community Development or the Director's designee; and
(2) the chief appraiser of the appraisal district in which the property subject to the exemption is located.
Source: 20120524-020.