Texas Senate Bill SB2976

Texas 2025 - 89th Regular

• Filed: 3/14/25

Caption

Relating to the areas of operation of housing finance corporations.

Impact

SB 2976 aims to clarify the operational limits of housing finance corporations, establishing that they can engage in financial activities such as lending, issuing bonds, and acquiring properties only within their specified jurisdictions. This change serves to enhance accountability and efficiency within local government frameworks related to housing finance. By defining these boundaries, the bill is expected to facilitate cooperation between housing finance corporations and local government authorities, potentially leading to improved residential development and financing options tailored to specific community needs.

Summary

Senate Bill 2976 focuses on the operational boundaries and specific powers of housing finance corporations in Texas. It introduces amendments to the Local Government Code, particularly emphasizing the areas within which these corporations can operate. The bill seeks to empower local municipalities and counties to establish housing finance corporations while limiting their operational jurisdiction to their respective localities. Housing finance corporations that are sponsored by municipalities are restricted to the municipality’s jurisdictional boundaries, while those sponsored by counties are limited to the unincorporated areas of the respective counties. The bill outlines how these corporations may exercise their powers more efficiently in a confined geographical scope.

Contention

While SB 2976 is generally seen as a step toward enhancing local control over housing finance, some critics argue that the amendments may limit the operational flexibility that housing finance corporations need to effectively respond to broader housing challenges. There is concern that restricting the operational area may hinder their ability to manage and finance residential developments that require collaboration across municipal and county lines. Stakeholders advocating for a more integrated approach to housing finance express that broader operational jurisdiction could improve the ability to respond to regional housing demands and economic conditions.

Texas Constitutional Statutes Affected

Local Government Code

• Chapter 394. Housing Finance Corporations In Municipalities And Counties
  • Section: 031
  • Section: 032
  • Section: 039
  • Section: 903
  • Section: 905