89R18654 JAM-D
By: Bell of Montgomery H.B. No. 1585
Substitute the following for H.B. No. 1585:
By: Bell of Montgomery C.S.H.B. No. 1585
A BILL TO BE ENTITLED
AN ACT
relating to housing finance corporations and to the location of
residential developments owned by those corporations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 394.032(e), Local Government Code, is
amended to read as follows:
(e) A housing finance corporation may delegate to the Texas
Department of Housing and Community Affairs the authority to act on
its behalf in the financing, refinancing, acquisition, leasing,
ownership, improvement, and disposal of home mortgages or
residential developments, within [and outside] the jurisdiction of
the housing finance corporation, including its authority to issue
bonds for those purposes.
SECTION 2. Section 394.039, Local Government Code, is
amended to read as follows:
Sec. 394.039. SPECIFIC POWERS RELATING TO FINANCIAL AND
PROPERTY TRANSACTIONS. 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 interests in
any residential development, home mortgage, note, or other property
in favor of the holders of bonds issued for those items;
(3) subject to Section 394.905(c), 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 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.
SECTION 3. Section 394.903, Local Government Code, is
amended to read as follows:
Sec. 394.903. LOCATION OF RESIDENTIAL DEVELOPMENTS
[DEVELOPMENT]; TRANSFER OF [RESIDENTIAL DEVELOPMENT] SITES. (a)
A residential development subject to [covered by] this chapter must
be located within the boundaries of the local government that
formed the housing finance corporation that owns the development.
(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, restrictions, limitations,
or other provisions contained in any other general, special, or
local law. The site location is subject to the requirements of this
chapter [may be located wholly or partly inside or outside the local
government].
SECTION 4. Section 394.905, Local Government Code, is
amended to read as follows:
Sec. 394.905. EXEMPTION FROM TAXES AND FEES [TAXATION].
(a) The housing finance corporation, all property owned by it, the
income from the property, all bonds issued by it, the income from
the bonds, and the transfer of the bonds are exempt, as public
property used for public purposes, from license fees, recording
fees, and all other taxes imposed by this state or any political
subdivision of this state.
(b) The corporation is exempt from the franchise tax imposed
by Chapter 171, Tax Code, only if the corporation is exempted by
that chapter.
(c) Notwithstanding Subsections (a) and (b), a residential
development owned by a housing finance corporation is exempt from
taxes imposed by this state or a political subdivision of this state
only if the development is located within the boundaries of the
local government that formed the corporation.
SECTION 5. Section 394.905(c), Local Government Code, as
added by this Act, applies only to a tax or fee to be imposed on a
housing finance corporation with respect to a newly built
residential development for which a certificate of occupancy is
issued on or after the effective date of this Act or with respect to
any other residential development that is acquired by the
corporation on or after the effective date of this Act.
SECTION 6. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.