S.B. No. 403
AN ACT
relating to a right of first refusal applicable to the sale of
housing developments that have received certain financial
assistance administered by the Texas Department of Housing and
Community Affairs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.6726(b), Government Code, is
amended to read as follows:
(b) The owner of a development subject to a right of first
refusal under Section 2306.6725 may:
(1) during the first 60-day period after notice is
provided under Subsection (a-1), negotiate or enter into a purchase
agreement only with a qualified entity that is:
(A) a community housing development organization
as defined by the federal HOME investment partnership program; [or]
(B) if the authority or the corporation owns the
fee title to the development owner's leasehold estate:
(i) a public housing authority; or
(ii) a public facility corporation created
by a public housing authority under Chapter 303, Local Government
Code; or
(C) controlled by an entity described by
Paragraph (A) or (B);
(2) during the second 60-day period after notice is
provided under Subsection (a-1), negotiate or enter into a purchase
agreement with a qualified entity that:
(A) is described by Section 2306.6706;
(B) is controlled by an entity described by
Paragraph (A); or
(C) is a tenant organization; and
(3) during the last 60-day period after notice is
provided under Subsection (a-1), negotiate or enter into a purchase
agreement with any other qualified entity.
SECTION 2. Section 2306.6726, Government Code, as amended
by this Act, applies to the sale of a development supported with an
allocation of low income housing tax credits issued before, on, or
after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 403 passed the Senate on
May 5, 2021, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 403 passed the House on
May 25, 2021, by the following vote: Yeas 87, Nays 59, one present
not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor