By: Blanco S.B. No. 2605
(In the Senate - Filed March 13, 2025; April 3, 2025, read
first time and referred to Committee on Local Government;
April 30, 2025, reported favorably by the following vote: Yeas 6,
Nays 0; April 30, 2025, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the formation of a municipal housing authority asset
commission by certain municipal housing authorities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 392, Local Government Code, is amended
by adding Subchapter G to read as follows:
SUBCHAPTER G. ASSET COMMISSION OF CERTAIN MUNICIPAL HOUSING
AUTHORITIES
Sec. 392.151. DEFINITION. In this subchapter, "asset
commission" means a municipal housing authority asset commission
formed by a municipal housing authority under Section 392.153.
Sec. 392.152. APPLICABILITY. This subchapter applies only
to a municipal housing authority operating in:
(1) a county with a population of 800,000 or more that
is located on the international border; and
(2) a municipality with a population of 600,000 or
more that is located in a county described by Subdivision (1).
Sec. 392.153. FORMATION OF ASSET COMMISSION. The
commissioners of a municipal housing authority may adopt a
resolution to create an asset commission.
Sec. 392.154. ASSET COMMISSION MEMBERSHIP; TERMS. (a) An
asset commission is composed of five members who serve staggered
terms of five years and are appointed by a majority of the
commissioners of the municipal housing authority that formed the
asset commission. An asset commission member must:
(1) be a licensed real estate broker with at least five
years of continuous experience in the field of multifamily housing;
(2) be a certified public accountant with at least
five years of continuous experience in the field of multifamily
housing;
(3) be a licensed attorney who is certified by the
Texas Board of Legal Specialization in residential real estate law
or commercial real estate law;
(4) have at least five years of continuous experience
in developing, financing, constructing, operating, or managing a
multifamily housing portfolio of no fewer than 3,000 units; or
(5) be a current or former chief executive officer,
chief financial officer, or executive director of a public housing
authority that owns or manages 5,000 or more units of housing,
excluding housing units paid for with vouchers under the federal
Section 8 Housing Choice Voucher Program.
(b) In addition to the qualifications required by
Subsection (a), at least one of the asset commission members must
have at least 10 years of experience in a field related to the
management or operation of apartments funded by low income-housing
tax credits.
(c) A person may not serve as an asset commission member if
the person is:
(1) a mayor, a county judge, or any other elected
official of a governmental entity within the area of operation
described by Section 392.014 for the municipal housing authority
that formed the asset commission;
(2) an employee of a town, municipality, county, or
unit of local government within the area of operation described by
Section 392.014 for the municipal housing authority that formed the
asset commission;
(3) a commissioner or employee of the municipal
housing authority that formed the asset commission;
(4) a person who was employed within the preceding two
years by the municipal housing authority that formed the asset
commission; or
(5) a person who has or has had within the preceding
two years a direct or indirect contract or a personal or financial
interest in a contract with the municipal housing authority that
formed the asset commission.
(d) Notwithstanding the provisions of Subsection (a)
establishing the terms of an asset commission member, in appointing
the initial members to an asset commission under this section, the
commissioners of a municipal housing authority shall designate:
(1) two members to serve a three-year term;
(2) two members to serve a four-year term; and
(3) one member to serve a five-year term.
Sec. 392.155. CONFLICTS OF INTEREST. (a) An asset
commission member may not:
(1) have dealings for pecuniary gain with the
municipal housing authority that formed the asset commission or a
public facility corporation sponsored by the authority; or
(2) own, acquire, or control a direct or indirect
interest in any item described by Sections 392.042(b)(1)-(5).
(b) If an asset commission member manages, owns, acquires,
or controls a direct or indirect interest in an item prohibited by
Subsection (a) or otherwise has any other dealings for pecuniary
gain with the municipal housing authority, the member shall
immediately disclose the interest to the authority and asset
commission in writing. The disclosure shall be entered in the
minutes of the asset commission for the meeting at which the
disclosure was made.
(c) An asset commission member's failure to make a required
disclosure under Subsection (b) constitutes misconduct of office.
Sec. 392.156. REMOVAL OF ASSET COMMISSION MEMBER. An asset
commission member may be removed by a majority of the commissioners
of the municipal housing authority that formed the asset commission
based on the same criteria and following the same processes for the
removal of a commissioner described by Section 392.041.
Sec. 392.157. ASSET COMMISSION MEMBER COMPENSATION AND
REIMBURSEMENT. (a) An asset commission member is entitled to:
(1) reasonable compensation for the member's services
on the asset commission; and
(2) reimbursement for necessary expenses incurred by
the member in carrying out duties related to the member's services
on the asset commission, including travel expenses.
(b) The municipal housing authority that forms an asset
commission shall pay the compensation and reimbursement described
by Subsection (a).
Sec. 392.158. POWERS AND DUTIES. (a) An asset commission
must approve by majority vote the following actions before the
municipal housing authority that formed the asset commission may
perform or approve the action:
(1) the acquisition, sale, transfer, conveyance, or
disposition of any property, building, partnership interest,
membership interest in a limited liability company, ownership
interest in any entity, or any other asset of the authority or a
public facility corporation sponsored by the authority valued in
excess of $100,000; and
(2) the trading, financing, refinancing, or issuance
of a bond secured by or associated with any property, building,
partnership interest, membership interest in a limited liability
company, ownership interest in any entity, or any other asset of the
authority or a public facility corporation sponsored by the
authority.
(b) An asset commission may directly or indirectly hold or
own an interest in an asset described by Subsection (a) and any
accompanying cash flow or benefit associated with that interest
only if the asset commission holds the interest in trust for the
sole and exclusive benefit of the municipal housing authority that
formed the asset commission.
(c) An asset commission may delegate the powers and duties
under this section to an agent or employee of the asset commission
or the municipal housing authority that formed the asset
commission, as determined appropriate by the asset commission.
Sec. 392.159. OFFICERS AND EMPLOYEES OF ASSET COMMISSION.
The secretary and executive director employed under Section 392.038
for a municipal housing authority that forms an asset commission
shall serve as the secretary and executive director of the asset
commission.
Sec. 392.160. MEETINGS OF ASSET COMMISSION. Meetings of an
asset commission are subject to Chapter 551, Government Code.
SECTION 2. This Act takes effect September 1, 2025.
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