| 1 | 1 | | By: Gates H.B. No. 3533 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to multifamily residential developments financed, owned, |
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| 9 | 9 | | or operated by public facility corporations. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 303.003, Local Government Code, is |
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| 12 | 12 | | amended by adding Subdivision (6-a) to read as follows: |
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| 13 | 13 | | (6-a) "Multifamily residential development" means any |
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| 14 | 14 | | residential development consisting of four or more dwelling units |
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| 15 | 15 | | intended for occupancy as rentals, regardless of whether the units |
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| 16 | 16 | | are attached or detached. |
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| 17 | 17 | | SECTION 2. Section 303.021(d), Local Government Code, is |
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| 18 | 18 | | amended to read as follows: |
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| 19 | 19 | | (d) A corporation or a sponsor may finance, own, or operate |
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| 20 | 20 | | a multifamily residential development only if: |
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| 21 | 21 | | (1) the corporation or sponsor complies with all |
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| 22 | 22 | | applicable provisions of this chapter; [and] |
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| 23 | 23 | | (2) the development is located: |
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| 24 | 24 | | (A) inside the area of operation of the sponsor, |
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| 25 | 25 | | if the sponsor is a housing authority; or |
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| 26 | 26 | | (B) if the sponsor is not a housing authority, |
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| 27 | 27 | | inside the boundaries of the sponsor, without regard to whether the |
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| 28 | 28 | | sponsor is authorized to own property or provide services outside |
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| 29 | 29 | | the boundaries of the sponsor; and |
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| 30 | 30 | | (3) for a multifamily residential development |
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| 31 | 31 | | financed, owned, or operated by a sponsor that is a school district |
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| 32 | 32 | | or a development financed, owned, or operated by a corporation |
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| 33 | 33 | | created by such a sponsor: |
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| 34 | 34 | | (A) at least 75 percent of the residential units |
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| 35 | 35 | | at the development are restricted to occupancy by households with |
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| 36 | 36 | | at least one employee of the district; or |
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| 37 | 37 | | (B) the development is located on real property |
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| 38 | 38 | | that was previously used for at least ten years by the district as a |
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| 39 | 39 | | school campus or for administrative functions performed by the |
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| 40 | 40 | | district. |
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| 41 | 41 | | SECTION 3. Section 303.003(6-a), Local Government Code, as |
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| 42 | 42 | | added by this Act, and Section 303.021(d), Local Government Code, |
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| 43 | 43 | | as amended by this Act, apply only to a multifamily residential |
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| 44 | 44 | | development (1) for which title was acquired by a public facility |
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| 45 | 45 | | corporation or the sponsor of a public facility corporation on or |
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| 46 | 46 | | after the effective date of this Act or (2) a contract for financing |
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| 47 | 47 | | or operation was entered into by a public facility corporation or |
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| 48 | 48 | | the sponsor of a public facility corporation on or after the |
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| 49 | 49 | | effective date of this Act. A multifamily residential development |
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| 50 | 50 | | for which title was acquired or a contract for financing or |
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| 51 | 51 | | operation was entered into before the effective date of this Act is |
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| 52 | 52 | | governed by the law in effect on the date the title was acquired or |
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| 53 | 53 | | the date the contract was entered into, and the former law is |
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| 54 | 54 | | continued in effect for that purpose. |
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| 55 | 55 | | SECTION 4. This Act takes effect immediately if it receives |
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| 56 | 56 | | a vote of two-thirds of all the members elected to each house, as |
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| 57 | 57 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 58 | 58 | | Act does not receive the vote necessary for immediate effect, this |
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| 59 | 59 | | Act takes effect September 1, 2025. |
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