Texas 2025 - 89th Regular

Texas House Bill HB2937 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R9543 JAM-D
2	2	By: Anchía H.B. No. 2937
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the areas of operation of housing finance corporations.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. The heading to Section 394.031, Local Government
12	12	Code, is amended to read as follows:
13	13	Sec. 394.031. EXERCISE OF POWERS; AREA OF OPERATION.
14	14	SECTION 2. Section 394.031, Local Government Code, is
15	15	amended by adding Subsection (c) to read as follows:
16	16	(c) The area in which a housing finance corporation may
17	17	exercise its powers is limited to:
18	18	(1) for a housing finance corporation sponsored by a
19	19	municipality under Section 394.011, the jurisdictional boundaries
20	20	of the municipality that sponsored the corporation;
21	21	(2) for a housing finance corporation sponsored by a
22	22	county under Section 394.011, the unincorporated areas of the
23	23	county that sponsored the corporation; or
24	24	(3) for a housing finance corporation sponsored by
25	25	more than one local government under Section 394.012:
26	26	(A) the jurisdictional boundaries of each
27	27	municipal sponsor of the corporation; and
28	28	(B) the unincorporated areas of each county
29	29	sponsor of the corporation.
30	30	SECTION 3. Sections 394.032(a) and (e), Local Government
31	31	Code, are amended to read as follows:
32	32	(a) Subject to the limitations of Section 394.031(c), a [A]
33	33	housing finance corporation may:
34	34	(1) make contracts and other instruments as necessary
35	35	or convenient to the exercise of powers under this chapter;
36	36	(2) incur liabilities;
37	37	(3) borrow money at rates determined by the
38	38	corporation;
39	39	(4) issue notes, bonds, and other obligations; and
40	40	(5) secure any of its obligations by the mortgage or
41	41	pledge of all or part of the corporation's property, franchises,
42	42	and income.
43	43	(e) A housing finance corporation may delegate to the Texas
44	44	Department of Housing and Community Affairs the authority to act on
45	45	its behalf in the financing, refinancing, acquisition, leasing,
46	46	ownership, improvement, and disposal of home mortgages or
47	47	residential developments, within [and outside] the jurisdiction of
48	48	the housing finance corporation, including its authority to issue
49	49	bonds for those purposes.
50	50	SECTION 4. Section 394.039, Local Government Code, is
51	51	amended to read as follows:
52	52	Sec. 394.039. SPECIFIC POWERS RELATING TO FINANCIAL AND
53	53	PROPERTY TRANSACTIONS. A housing finance corporation may:
54	54	(1) lend money for its corporate purposes, invest and
55	55	reinvest its funds, and take and hold real or personal property as
56	56	security for the payment of the loaned or invested funds;
57	57	(2) mortgage, pledge, or grant security interests in
58	58	any residential development, home mortgage, note, or other property
59	59	in favor of the holders of bonds issued for those items;
60	60	(3) purchase, receive, lease, or otherwise acquire,
61	61	own, hold, improve, use, or deal in and with real or personal
62	62	property or interests in that property, [wherever the property is
63	63	located,] as required by the purposes of the corporation or as
64	64	donated to the corporation; and
65	65	(4) sell, convey, mortgage, pledge, lease, exchange,
66	66	transfer, and otherwise dispose of all or part of its property and
67	67	assets.
68	68	SECTION 5. Section 394.903, Local Government Code, is
69	69	amended to read as follows:
70	70	Sec. 394.903. TRANSFER [LOCATION] OF [RESIDENTIAL
71	71	DEVELOPMENT;] RESIDENTIAL DEVELOPMENT SITES. A [(a) A
72	72	residential development covered by this chapter must be located
73	73	within the local government.
74	74	[(b) The] local government may transfer any residential
75	75	development site to a housing finance corporation by sale or lease.
76	76	The governing body of the local government may authorize the
77	77	transfer by resolution without submitting the issue to the voters
78	78	and without regard to the requirements, restrictions, limitations,
79	79	or other provisions contained in any other general, special, or
80	80	local law. The site location is subject to the requirements of this
81	81	chapter [may be located wholly or partly inside or outside the local
82	82	government].
83	83	SECTION 6. Section 394.905, Local Government Code, is
84	84	amended to read as follows:
85	85	Sec. 394.905. EXEMPTION FROM TAXES AND FEES [TAXATION].
86	86	(a) Notwithstanding any other law, the [The] housing finance
87	87	corporation, all property owned by it, the income from the
88	88	property, all bonds issued by it, the income from the bonds, and the
89	89	transfer of the bonds are exempt, as public property used for public
90	90	purposes, from license fees, recording fees, and all other taxes
91	91	imposed by this state or any political subdivision of this state
92	92	only if the applicable property, including a development, facility,
93	93	or home, is located in an area in which the housing finance
94	94	corporation is authorized to exercise its powers as described by
95	95	Section 394.031(c).
96	96	(b) The corporation is exempt from the franchise tax imposed
97	97	by Chapter 171, Tax Code, only if the corporation is exempted by
98	98	that chapter.
99	99	SECTION 7. (a) Section 394.031(c), Local Government Code,
100	100	as added by this Act, applies only to the exercise of power by a
101	101	housing finance corporation made on or after the effective date of
102	102	this Act. An exercise of power made before the effective date of
103	103	this Act is governed by the law in effect on the date the power was
104	104	exercised, and the former law is continued in effect for that
105	105	purpose.
106	106	(b) Section 394.905(a), Local Government Code, as added by
107	107	this Act, applies only to a tax or fee to be imposed on a housing
108	108	finance corporation with respect to an occupied residential
109	109	development that is acquired by the corporation on or after the
110	110	effective date of this Act or with respect to a newly built
111	111	residential development for which a certificate of occupancy is
112	112	issued on or after the effective date of this Act.
113	113	SECTION 8. This Act takes effect immediately if it receives
114	114	a vote of two-thirds of all the members elected to each house, as
115	115	provided by Section 39, Article III, Texas Constitution. If this
116	116	Act does not receive the vote necessary for immediate effect, this
117	117	Act takes effect September 1, 2025.