TX
Texas House Bill HB1585

Texas 2025 - 89th Regular

Texas House Bill HB1585 Compare Versions

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1-89R18654 JAM-D
1+89R9543 JAM-D
22 By: Bell of Montgomery H.B. No. 1585
3- Substitute the following for H.B. No. 1585:
4- By: Bell of Montgomery C.S.H.B. No. 1585
3+
4+
55
66
77 A BILL TO BE ENTITLED
88 AN ACT
9- relating to housing finance corporations and to the location of
10- residential developments owned by those corporations.
9+ relating to the areas of operation of housing finance corporations.
1110 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12- SECTION 1. Section 394.032(e), Local Government Code, is
13- amended to read as follows:
11+ SECTION 1. The heading to Section 394.031, Local Government
12+ Code, is amended to read as follows:
13+ Sec. 394.031. EXERCISE OF POWERS; AREA OF OPERATION.
14+ SECTION 2. Section 394.031, Local Government Code, is
15+ amended by adding Subsection (c) to read as follows:
16+ (c) The area in which a housing finance corporation may
17+ exercise its powers is limited to:
18+ (1) for a housing finance corporation sponsored by a
19+ municipality under Section 394.011, the jurisdictional boundaries
20+ of the municipality that sponsored the corporation;
21+ (2) for a housing finance corporation sponsored by a
22+ county under Section 394.011, the unincorporated areas of the
23+ county that sponsored the corporation; or
24+ (3) for a housing finance corporation sponsored by
25+ more than one local government under Section 394.012:
26+ (A) the jurisdictional boundaries of each
27+ municipal sponsor of the corporation; and
28+ (B) the unincorporated areas of each county
29+ sponsor of the corporation.
30+ SECTION 3. Sections 394.032(a) and (e), Local Government
31+ Code, are amended to read as follows:
32+ (a) Subject to the limitations of Section 394.031(c), a [A]
33+ housing finance corporation may:
34+ (1) make contracts and other instruments as necessary
35+ or convenient to the exercise of powers under this chapter;
36+ (2) incur liabilities;
37+ (3) borrow money at rates determined by the
38+ corporation;
39+ (4) issue notes, bonds, and other obligations; and
40+ (5) secure any of its obligations by the mortgage or
41+ pledge of all or part of the corporation's property, franchises,
42+ and income.
1443 (e) A housing finance corporation may delegate to the Texas
1544 Department of Housing and Community Affairs the authority to act on
1645 its behalf in the financing, refinancing, acquisition, leasing,
1746 ownership, improvement, and disposal of home mortgages or
1847 residential developments, within [and outside] the jurisdiction of
1948 the housing finance corporation, including its authority to issue
2049 bonds for those purposes.
21- SECTION 2. Section 394.039, Local Government Code, is
50+ SECTION 4. Section 394.039, Local Government Code, is
2251 amended to read as follows:
2352 Sec. 394.039. SPECIFIC POWERS RELATING TO FINANCIAL AND
2453 PROPERTY TRANSACTIONS. A housing finance corporation may:
2554 (1) lend money for its corporate purposes, invest and
2655 reinvest its funds, and take and hold real or personal property as
2756 security for the payment of the loaned or invested funds;
2857 (2) mortgage, pledge, or grant security interests in
2958 any residential development, home mortgage, note, or other property
3059 in favor of the holders of bonds issued for those items;
31- (3) subject to Section 394.905(c), purchase, receive,
32- lease, or otherwise acquire, own, hold, improve, use, or deal in and
33- with real or personal property or interests in that property,
34- [wherever the property is located,] as required by the purposes of
35- the corporation or as donated to the corporation; and
60+ (3) purchase, receive, lease, or otherwise acquire,
61+ own, hold, improve, use, or deal in and with real or personal
62+ property or interests in that property, [wherever the property is
63+ located,] as required by the purposes of the corporation or as
64+ donated to the corporation; and
3665 (4) sell, convey, mortgage, pledge, lease, exchange,
3766 transfer, and otherwise dispose of all or part of its property and
3867 assets.
39- SECTION 3. Section 394.903, Local Government Code, is
68+ SECTION 5. Section 394.903, Local Government Code, is
4069 amended to read as follows:
41- Sec. 394.903. LOCATION OF RESIDENTIAL DEVELOPMENTS
42- [DEVELOPMENT]; TRANSFER OF [RESIDENTIAL DEVELOPMENT] SITES. (a)
43- A residential development subject to [covered by] this chapter must
44- be located within the boundaries of the local government that
45- formed the housing finance corporation that owns the development.
46- (b) The local government may transfer any residential
70+ Sec. 394.903. TRANSFER [LOCATION] OF [RESIDENTIAL
71+ DEVELOPMENT;] RESIDENTIAL DEVELOPMENT SITES. A [(a) A
72+ residential development covered by this chapter must be located
73+ within the local government.
74+ [(b) The] local government may transfer any residential
4775 development site to a housing finance corporation by sale or lease.
4876 The governing body of the local government may authorize the
4977 transfer by resolution without submitting the issue to the voters
5078 and without regard to the requirements, restrictions, limitations,
5179 or other provisions contained in any other general, special, or
5280 local law. The site location is subject to the requirements of this
5381 chapter [may be located wholly or partly inside or outside the local
5482 government].
55- SECTION 4. Section 394.905, Local Government Code, is
83+ SECTION 6. Section 394.905, Local Government Code, is
5684 amended to read as follows:
5785 Sec. 394.905. EXEMPTION FROM TAXES AND FEES [TAXATION].
58- (a) The housing finance corporation, all property owned by it, the
59- income from the property, all bonds issued by it, the income from
60- the bonds, and the transfer of the bonds are exempt, as public
61- property used for public purposes, from license fees, recording
62- fees, and all other taxes imposed by this state or any political
63- subdivision of this state.
86+ (a) Notwithstanding any other law, the [The] housing finance
87+ corporation, all property owned by it, the income from the
88+ property, all bonds issued by it, the income from the bonds, and the
89+ transfer of the bonds are exempt, as public property used for public
90+ purposes, from license fees, recording fees, and all other taxes
91+ imposed by this state or any political subdivision of this state
92+ only if the applicable property, including a development, facility,
93+ or home, is located in an area in which the housing finance
94+ corporation is authorized to exercise its powers as described by
95+ Section 394.031(c).
6496 (b) The corporation is exempt from the franchise tax imposed
6597 by Chapter 171, Tax Code, only if the corporation is exempted by
6698 that chapter.
67- (c) Notwithstanding Subsections (a) and (b), a residential
68- development owned by a housing finance corporation is exempt from
69- taxes imposed by this state or a political subdivision of this state
70- only if the development is located within the boundaries of the
71- local government that formed the corporation.
72- SECTION 5. Section 394.905(c), Local Government Code, as
73- added by this Act, applies only to a tax or fee to be imposed on a
74- housing finance corporation with respect to a newly built
99+ SECTION 7. (a) Section 394.031(c), Local Government Code,
100+ as added by this Act, applies only to the exercise of power by a
101+ housing finance corporation made on or after the effective date of
102+ this Act. An exercise of power made before the effective date of
103+ this Act is governed by the law in effect on the date the power was
104+ exercised, and the former law is continued in effect for that
105+ purpose.
106+ (b) Section 394.905(a), Local Government Code, as added by
107+ this Act, applies only to a tax or fee to be imposed on a housing
108+ finance corporation with respect to an occupied residential
109+ development that is acquired by the corporation on or after the
110+ effective date of this Act or with respect to a newly built
75111 residential development for which a certificate of occupancy is
76- issued on or after the effective date of this Act or with respect to
77- any other residential development that is acquired by the
78- corporation on or after the effective date of this Act.
79- SECTION 6. This Act takes effect immediately if it receives
112+ issued on or after the effective date of this Act.
113+ SECTION 8. This Act takes effect immediately if it receives
80114 a vote of two-thirds of all the members elected to each house, as
81115 provided by Section 39, Article III, Texas Constitution. If this
82116 Act does not receive the vote necessary for immediate effect, this
83117 Act takes effect September 1, 2025.