| 1 | 1 | | By: Bernal H.B. No. 3967 |
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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 the purchase of or acquisition of single-family |
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| 9 | 9 | | homesteads by certain out-of-state entities. |
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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. Chapter 5, Property Code, is amended by adding |
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| 12 | 12 | | Subchapter J to read as follows: |
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| 13 | 13 | | SUBCHAPTER J. PURCHASE OF OR ACQUISITION OF SINGLE-FAMILY |
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| 14 | 14 | | HOMESTEADS BY CERTAIN OUT-OF-STATE ENTITIES. |
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| 15 | 15 | | Sec. 5.221. DEFINITIONS. In this subchapter: |
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| 16 | 16 | | (1) "Business" has the meaning assigned by Section |
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| 17 | 17 | | 1.002, Business Organization Code. |
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| 18 | 18 | | (2) "Corporation" has the meaning assigned by Section |
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| 19 | 19 | | 1.002, Business Organization Code. |
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| 20 | 20 | | (3) "Organization has the meaning assigned by Section |
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| 21 | 21 | | 1.002, Business Organization Code. |
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| 22 | 22 | | (4) "Homestead" means a single-family dwelling for |
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| 23 | 23 | | which an individual claims an exemption under Section 11.13, Tax |
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| 24 | 24 | | Code. |
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| 25 | 25 | | (5) "Single-family homestead" means: |
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| 26 | 26 | | (A) a structure designed for residential use by |
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| 27 | 27 | | one family; or |
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| 28 | 28 | | (B) a unit, whose owner owns, directly or through |
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| 29 | 29 | | a nonprofit organization, an undivided interest in the underlying |
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| 30 | 30 | | real estate, including property owned in common with others which |
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| 31 | 31 | | provide a financial contribution toward the ownership of the |
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| 32 | 32 | | property; and |
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| 33 | 33 | | (C) claims an exemption under Section 11.13, Tax |
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| 34 | 34 | | Code. |
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| 35 | 35 | | (6) "Hedge fund" means a pool of money compiled by |
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| 36 | 36 | | investors with the intent to invest in projects in an effort to make |
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| 37 | 37 | | a positive return on investment. |
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| 38 | 38 | | (7) "Institutional investor" means an entity that |
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| 39 | 39 | | invests on the behalf of others including but not limited to |
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| 40 | 40 | | individuals, organizations, corporations, businesses, or hedge |
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| 41 | 41 | | funds. |
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| 42 | 42 | | Sec. 5.222 PURCHASE OF OR ACQUISITION OF SINGLE-FAMILY |
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| 43 | 43 | | HOMESTEADS BY CERTAIN OUT-OF-STATE ENTITIES PROHIBITED. (a) |
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| 44 | 44 | | Notwithstanding any other law, the following may not purchase or |
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| 45 | 45 | | otherwise acquire title to a single-family homestead in this state: |
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| 46 | 46 | | (1) a company, business, corporation, hedge fund, or |
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| 47 | 47 | | institutional investor that is: |
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| 48 | 48 | | (A) headquartered outside the state; |
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| 49 | 49 | | (B) directly or indirectly held or controlled |
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| 50 | 50 | | outside of the state; or |
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| 51 | 51 | | (C) owned by or whose majority stock or other |
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| 52 | 52 | | ownership interest is held or controlled outside the state; and |
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| 53 | 53 | | (D) not the owner of a homestead within the |
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| 54 | 54 | | state. |
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| 55 | 55 | | (b) This section does not apply to a nonprofit organization |
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| 56 | 56 | | purchasing or acquiring the title to real property for the purpose |
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| 57 | 57 | | of providing affordable housing. |
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| 58 | 58 | | SECTION 2. The changes in law made by this Act apply only to |
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| 59 | 59 | | the purchase of or acquisition of a single-family homestead on or |
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| 60 | 60 | | after the effective date of this Act. The purchase of or |
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| 61 | 61 | | acquisition of a single-family homestead before the effective date |
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| 62 | 62 | | of this Act is governed by the law in effect immediately before the |
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| 63 | 63 | | effective date of this Act and that law is continued in effect for |
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| 64 | 64 | | that purpose. |
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| 65 | 65 | | SECTION 3. This Act takes effect September 1, 2025. |
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