Texas 2025 - 89th Regular

Texas Senate Bill SB2260

Filed
3/11/25  
Out of Senate Committee
5/8/25  
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the disclosure and posting of certain information regarding multifamily residential developments that receive certain tax exemptions and the eligibility of those developments to receive those exemptions.

Impact

The law will modify existing regulations in local government codes related to housing developments and tax exemptions. The revisions will specifically tie tax exemption eligibility to compliance with new disclosure standards. Consequently, developers must provide timely disclosures, or they risk losing tax exemption benefits. By enforcing these conditions, the bill aims to enhance oversight in how tax incentives are utilized, potentially impacting the financial landscape for housing development across Texas.

Summary

SB2260 seeks to implement stricter disclosure requirements for multifamily residential developments that receive tax exemptions in Texas. The bill mandates that developments must disclose specific information annually, including the names of owners, unit counts, and details about income-restricted housing. This initiative is aimed at improving transparency regarding the use of tax exemptions, ensuring that such benefits are justified and appropriately allocated. An annual report summarizing this data will be submitted to the legislature, promoting accountability among developers receiving state benefits.

Sentiment

The sentiment expressed in discussions surrounding SB2260 generally leans towards support, especially among advocates for affordable housing and government transparency. Proponents argue that enhancing disclosure is essential for public accountability and ensures that developments serve community needs. However, there may be contention regarding the administrative burdens such requirements may impose on developers, particularly smaller entities that might struggle with compliance. Nevertheless, the overarching sentiment is that improved transparency is beneficial for ensuring that tax exemptions lead to genuine public benefits.

Contention

A notable point of contention centers around how the delay in enforced compliance affects ongoing developments and the potential backlash from developers who may view the stringent reporting requirements as an obstacle. Some stakeholders fear that these added regulations may discourage investment in affordable housing due to increased administrative oversight. Opponents might argue this introduces unnecessary complexities for housing projects, impacting their financial viability and ultimately, the availability of affordable units.

Texas Constitutional Statutes Affected

Government Code

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

Local Government Code

  • Chapter 303. Public Facility Corporations
    • Section: 042
    • Section: 0421
    • Section: 0421
    • Section: 0421
  • Chapter 392. Housing Authorities Established By Municipalities And Counties
    • Section: 005
    • Section: 005
    • Section: 005
  • Chapter 394. Housing Finance Corporations In Municipalities And Counties
    • Section: 905
    • Section: 905
    • Section: 905

Companion Bills

TX HB1466

Identical Relating to reports on information regarding certain multifamily residential developments to the Texas Department of Housing and Community Affairs.

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