Texas House Bill HB5166

Texas 2025 - 89th Regular

• Filed: 3/14/25

Caption

Relating to housing; providing property tax exemptions and relief relating to housing; providing a civil penalty; authorizing a fee.

Impact

The proposed bill significantly alters state laws related to housing finance and taxation. By offering property tax exemptions for certain qualified residential properties, it aims to reduce the financial burden on landlords and increase the accessibility of rental homes for low-income tenants. Additionally, creating a down payment assistance program will support first-time homebuyers in overcoming economic barriers to home ownership. This will potentially lead to a more significant investment in affordable housing across the state, contributing to the overall improvement in housing stability and community development.

Summary

House Bill 5166 is a comprehensive legislative proposal aimed at improving housing conditions and affordability in Texas. It provides mechanisms for property tax exemptions for leased residential real properties and establishes a down payment assistance program targeting first-time homebuyers. Specifically, first-time homebuyers can receive a $10,000 grant to assist in securing their initial home purchase. The bill intends to aid low-income families and individuals by enhancing access to housing through the Housing Trust Fund, which is allocated for various forms of assistance including rental support and emergency repairs.

Contention

Notable points of contention surrounding HB 5166 include concerns over the potential impact on corporate ownership of single-family homes. The bill imposes restrictions on corporate acquisitions of single-family homes, which could be controversial among real estate investors and developers. Additionally, critics may argue that providing substantial tax exemptions could negatively affect local tax revenues. However, proponents of the bill argue that the long-term benefits of increased affordable housing options will outweigh such fiscal concerns, emphasizing the urgent need for housing solutions in the state.

Texas Constitutional Statutes Affected

Penal Code

• Chapter 38. Obstructing Governmental Operation
  • Section: 12

Property Code

• Chapter 24. Forcible Entry And Detainer
  • Section: New Section

• Chapter 92. Residential Tenancies
  • Section: 011
  • Section: 019

• Chapter 5. Conveyances
  • Section: New Section

• Chapter 11. Provisions Generally Applicable To Public Records
  • Section: New Section

Tax Code

• Chapter 11. Taxable Property And Exemptions
  • Section: New Section

• Chapter 5. State Administration
  • Section: New Section

Government Code

• Chapter 27. Justice Courts
  • Section: New Section

• Chapter 2306. Texas Department Of Housing And Community Affairs
  • Section: 202
  • Section: New Section

Education Code

• Chapter 86. Texas A & M University
  • Section: New Section

Local Government Code

• Chapter 392. Housing Authorities Established By Municipalities And Counties
  • Section: New Section