Texas House Bill HB1585

Texas 2025 - 89th Regular

• Filed: 3/14/25
• Out of House Committee: 3/31/25
• Voted on by House: 4/29/25

Caption

Relating to housing finance corporations and to the location of residential developments owned by those corporations.

Impact

If passed, HB 1585 would reinforce the framework under which housing finance corporations operate, enabling them to act more efficiently in their financial dealings. The bill's provisions regarding tax exemptions are particularly significant as it specifies that residential developments owned by these corporations would be exempt from various taxes only if located within the forming local government's boundaries. This could lead to an increase in local financing options for residential development while encouraging adherence to local regulations.

Summary

House Bill 1585 aims to amend the Local Government Code to enhance the powers of housing finance corporations regarding residential developments. The bill allows housing finance corporations to delegate more authorities to the Texas Department of Housing and Community Affairs, particularly in the financing and acquisition of residential properties. Furthermore, it clarifies that residential developments must be located within the boundaries of the local government that formed the housing finance corporation, streamlining the transfer and management of property related to these developments.

Sentiment

The sentiment around HB 1585 appears mixed, with support primarily from legislators who advocate for increased housing opportunities and local governance autonomy. Proponents believe that the bill could promote regional residential development by simplifying processes without the need for extensive voter approval for property transfers. However, there are concerns among some members about the potential implications of increasing the powers of housing finance corporations, highlighting worries that it might lead to reduced local government's authority over urban planning and development decisions.

Contention

Notable points of contention include the proposed tax exemptions tied to local geography and governance. Critics argue that the stipulations might result in uneven development opportunities across different regions, effectively favoring corporations over localized community planning efforts. The discussions suggest a fundamental tension between promoting housing development through corporate power while maintaining the integrity of local control and regulation in residential affairs.

Texas Constitutional Statutes Affected

Local Government Code

• Chapter 394. Housing Finance Corporations In Municipalities And Counties
  • Section: 031
  • Section: 032
  • Section: 039
  • Section: 903
  • Section: 905
  • Section: 032
  • Section: 039
  • Section: 903
  • Section: 905
  • Section: 032
  • Section: 039
  • Section: 903
  • Section: 905
  • Section: 032
  • Section: 039
  • Section: 903
  • Section: 905