Texas 2025 - 89th Regular

Texas Senate Bill SB2258 Compare Versions

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

Old	New	Differences
1	1	89R8197 JAM-D
2	2	By: Cook S.B. No. 2258
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to housing finance corporations.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 394.003, Local Government Code, is
12	12	amended by adding Subdivisions (10-a) and (10-b) to read as
13	13	follows:
14	14	(10-a) "Low income" means an individual or family
15	15	whose annual median income is not more than the greater of:
16	16	(A) 60 percent of the area median income for the
17	17	household's place of residence, as adjusted for family size and as
18	18	established by the United States Department of Housing and Urban
19	19	Development; or
20	20	(B) 60 percent of the statewide median income, as
21	21	adjusted for family size and as established by the United States
22	22	Department of Housing and Urban Development.
23	23	(10-b) "Moderate income" means an individual or family
24	24	whose annual median income is not more than the greater of:
25	25	(A) 80 percent of the area median income for the
26	26	household's place of residence, as adjusted for family size and as
27	27	established by the United States Department of Housing and Urban
28	28	Development; or
29	29	(B) 80 percent of the statewide median income, as
30	30	adjusted for family size and as established by the United States
31	31	Department of Housing and Urban Development.
32	32	SECTION 2. The heading to Section 394.031, Local Government
33	33	Code, is amended to read as follows:
34	34	Sec. 394.031. EXERCISE OF POWERS; AREA OF OPERATION.
35	35	SECTION 3. Section 394.031, Local Government Code, is
36	36	amended by adding Subsections (c) and (d) to read as follows:
37	37	(c) Subject to Subsection (d), the area in which a housing
38	38	finance corporation may exercise its powers is limited to:
39	39	(1) for a housing finance corporation sponsored by a
40	40	municipality under Section 394.011, the jurisdictional boundaries
41	41	of the municipality that sponsored the corporation;
42	42	(2) for a housing finance corporation sponsored by a
43	43	county under Section 394.011, the unincorporated areas of the
44	44	county that sponsored the corporation; or
45	45	(3) for a housing finance corporation sponsored by
46	46	more than one local government under Section 394.012:
47	47	(A) the jurisdictional boundaries of each
48	48	municipal sponsor of the corporation; and
49	49	(B) the unincorporated areas of each county
50	50	sponsor of the corporation.
51	51	(d) A housing finance corporation may exercise its powers
52	52	outside an area described by Subsection (c) only if:
53	53	(1) a resolution or order, as applicable, approving
54	54	that exercise of power in the outside area is adopted by the
55	55	governing body of each sponsoring local government and by the
56	56	governing bodies of:
57	57	(A) each municipality that contains any part of
58	58	the outside area in which the corporation proposes to operate; and
59	59	(B) if proposing to operate in the unincorporated
60	60	area of a county, each county that contains any part of the outside
61	61	area in which the corporation proposes to operate; and
62	62	(2) that exercise of power is approved by each housing
63	63	finance corporation that is sponsored by a local government
64	64	described by Subdivision (1)(A) or (B) and that is already
65	65	exercising power in the outside area under the authority of
66	66	Subsection (c).
67	67	SECTION 4. Sections 394.032(a) and (e), Local Government
68	68	Code, are amended to read as follows:
69	69	(a) Subject to the limitations of Sections 394.031(c) and
70	70	(d), a [A] housing finance corporation may:
71	71	(1) make contracts and other instruments as necessary
72	72	or convenient to the exercise of powers under this chapter;
73	73	(2) incur liabilities;
74	74	(3) borrow money at rates determined by the
75	75	corporation;
76	76	(4) issue notes, bonds, and other obligations; and
77	77	(5) secure any of its obligations by the mortgage or
78	78	pledge of all or part of the corporation's property, franchises,
79	79	and income.
80	80	(e) A housing finance corporation may delegate to the Texas
81	81	Department of Housing and Community Affairs the authority to act on
82	82	its behalf in the financing, refinancing, acquisition, leasing,
83	83	ownership, improvement, and disposal of home mortgages or
84	84	residential developments, within [and outside] the jurisdiction of
85	85	the housing finance corporation, including its authority to issue
86	86	bonds for those purposes.
87	87	SECTION 5. Section 394.039, Local Government Code, is
88	88	amended to read as follows:
89	89	Sec. 394.039. SPECIFIC POWERS RELATING TO FINANCIAL AND
90	90	PROPERTY TRANSACTIONS. A housing finance corporation may:
91	91	(1) lend money for its corporate purposes, invest and
92	92	reinvest its funds, and take and hold real or personal property as
93	93	security for the payment of the loaned or invested funds;
94	94	(2) mortgage, pledge, or grant security interests in
95	95	any residential development, home mortgage, note, or other property
96	96	in favor of the holders of bonds issued for those items;
97	97	(3) purchase, receive, lease, or otherwise acquire,
98	98	own, hold, improve, use, or deal in and with real or personal
99	99	property or interests in that property, [wherever the property is
100	100	located,] as required by the purposes of the corporation or as
101	101	donated to the corporation; and
102	102	(4) sell, convey, mortgage, pledge, lease, exchange,
103	103	transfer, and otherwise dispose of all or part of its property and
104	104	assets.
105	105	SECTION 6. Section 394.903, Local Government Code, is
106	106	amended to read as follows:
107	107	Sec. 394.903. TRANSFER [LOCATION] OF [RESIDENTIAL
108	108	DEVELOPMENT;] RESIDENTIAL DEVELOPMENT SITES. A [(a) A
109	109	residential development covered by this chapter must be located
110	110	within the local government.
111	111	[(b) The] local government may transfer any residential
112	112	development site to a housing finance corporation by sale or lease.
113	113	The governing body of the local government may authorize the
114	114	transfer by resolution without submitting the issue to the voters
115	115	and without regard to the requirements, restrictions, limitations,
116	116	or other provisions contained in any other general, special, or
117	117	local law. The site location is subject to the requirements of this
118	118	chapter [may be located wholly or partly inside or outside the local
119	119	government].
120	120	SECTION 7. Section 394.905, Local Government Code, is
121	121	amended to read as follows:
122	122	Sec. 394.905. EXEMPTION FROM TAXES AND FEES [TAXATION].
123	123	(a) Notwithstanding any other law, the [The] housing finance
124	124	corporation, all property owned by it, the income from the
125	125	property, all bonds issued by it, the income from the bonds, and the
126	126	transfer of the bonds are exempt, as public property used for public
127	127	purposes, from license fees, recording fees, and all other taxes
128	128	imposed by this state or any political subdivision of this state
129	129	only if the property is located in an area in which the housing
130	130	finance corporation is authorized to exercise its powers as
131	131	described by Section 394.031(c) or the exemption is approved by
132	132	each applicable governing body described by Section 394.031(d).
133	133	(b) The corporation is exempt from the franchise tax imposed
134	134	by Chapter 171, Tax Code, only if the corporation is exempted by
135	135	that chapter.
136	136	SECTION 8. (a) Sections 394.031(c) and (d), Local
137	137	Government Code, as added by this Act, apply only to the exercise of
138	138	power by a housing finance corporation made on or after the
139	139	effective date of this Act. An exercise of power made before the
140	140	effective date of this Act is governed by the law in effect on the
141	141	date the power was exercised, and the former law is continued in
142	142	effect for that purpose.
143	143	(b) Subject to Subsection (c) of this section, Section
144	144	394.905(a), Local Government Code, as added by this Act, applies
145	145	only to a tax or fee imposed for a tax year or calendar year,
146	146	respectively, that begins on or after the effective date of this
147	147	Act.
148	148	(c) Section 394.905(a), Local Government Code, as added by
149	149	this Act, applies only to a tax or fee to be imposed on a housing
150	150	finance corporation with respect to an occupied residential
151	151	development that is acquired by the corporation on or after the
152	152	effective date of this Act or with respect to a newly built
153	153	residential development for which a certificate of occupancy is
154	154	issued on or after the effective date of this Act.
155	155	SECTION 9. This Act takes effect immediately if it receives
156	156	a vote of two-thirds of all the members elected to each house, as
157	157	provided by Section 39, Article III, Texas Constitution. If this
158	158	Act does not receive the vote necessary for immediate effect, this
159	159	Act takes effect September 1, 2025.