Texas House Bill HB4306

Texas 2025 - 89th Regular

• Filed: 3/11/25

Caption

Relating to multifamily residential developments owned by public facility corporations.

Impact

The bill stipulates that a public facility corporation or its sponsor can finance, own, or operate these multifamily developments provided they comply with specific provisions. Importantly, the developments must either be located within the sponsor's operational area or, in the case of school districts, restricted primarily for occupancy by district employees. This provision restricts how public facility corporations can manage multifamily housing projects and ensures that local governments have defined control over where these developments can occur.

Summary

House Bill 4306 proposes amendments to the Local Government Code concerning multifamily residential developments owned by public facility corporations. The bill defines 'multifamily residential development' as any property with four or more rental dwelling units, streamlining the classification and regulatory oversight of such properties. This new definition provides clarity and supports the organization of housing developments under the jurisdiction of public facility corporations, aligning them more closely with existing legislation related to public housing.

Contention

One notable concern may arise regarding local government powers, as the bill states that developments must adhere to the sponsor's boundaries regardless of other potential regulatory or zoning issues within the community. Critics may argue that this could limit the ability of local governments to manage housing in a way that reflects the needs and desires of their communities, raising questions about the balance of local control versus state oversight in housing development policy. Lastly, the bill takes effect on September 1, 2025, which allows time for potential adjustments and discussions among stakeholders in the housing sector.

Texas Constitutional Statutes Affected

Local Government Code

• Chapter 303. Public Facility Corporations
  • Section: New Section
  • Section: 021