Texas 2025 - 89th Regular

Texas Senate Bill SB867 Compare Versions

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1	1	89R2225 JAM-D
2	2	By: Bettencourt S.B. No. 867
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5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to housing finance corporations; authorizing a fee.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 394.004, Local Government Code, is
12	12	amended to read as follows:
13	13	Sec. 394.004. APPLICATION OF CHAPTER TO CERTAIN RESIDENTIAL
14	14	DEVELOPMENTS. This chapter applies only to a residential
15	15	development that, in accordance with the requirements of this
16	16	chapter, [at least 90 percent of which] is occupied [for use] by or
17	17	is intended to be occupied by persons of low and moderate income
18	18	whose adjusted gross income, together with the adjusted gross
19	19	income of all persons who intend to reside with those persons in one
20	20	dwelling unit, did not for the preceding tax year exceed the maximum
21	21	amount constituting moderate income under the housing finance
22	22	corporation's rules, resolutions relating to the issuance of bonds,
23	23	or financing documents relating to the issuance of bonds.
24	24	SECTION 2. Subchapter A, Chapter 394, Local Government
25	25	Code, is amended by adding Section 394.0045 to read as follows:
26	26	Sec. 394.0045. APPLICABILITY OF OPEN MEETINGS AND OPEN
27	27	RECORDS LAWS. (a) Chapter 551, Government Code, applies to actions
28	28	and proceedings under this chapter.
29	29	(b) Chapter 552, Government Code, applies to all records of
30	30	a housing finance corporation.
31	31	SECTION 3. The heading to Section 394.031, Local Government
32	32	Code, is amended to read as follows:
33	33	Sec. 394.031. EXERCISE OF POWERS; AREA OF OPERATION.
34	34	SECTION 4. Section 394.031, Local Government Code, is
35	35	amended by adding Subsections (c) and (d) to read as follows:
36	36	(c) Subject to Subsection (d), the area in which a housing
37	37	finance corporation may exercise its powers is limited to:
38	38	(1) for a housing finance corporation sponsored by a
39	39	municipality under Section 394.011, the jurisdictional boundaries
40	40	of the municipality that sponsored the corporation;
41	41	(2) for a housing finance corporation sponsored by a
42	42	county under Section 394.011, the unincorporated areas of the
43	43	county that sponsored the corporation; or
44	44	(3) for a housing finance corporation sponsored by
45	45	more than one local government under Section 394.012:
46	46	(A) the jurisdictional boundaries of each
47	47	municipal sponsor of the corporation; and
48	48	(B) the unincorporated areas of each county
49	49	sponsor of the corporation.
50	50	(d) A housing finance corporation may exercise its powers
51	51	outside an area described by Subsection (c) only if a resolution or
52	52	order, as applicable, approving that exercise of power in the
53	53	outside area is adopted by the governing body of each sponsoring
54	54	local government and by the governing bodies of:
55	55	(1) each municipality that contains any part of the
56	56	outside area in which the corporation proposes to operate; and
57	57	(2) if proposing to operate in the unincorporated area
58	58	of a county, each county that contains any part of the outside area
59	59	in which the corporation proposes to operate.
60	60	SECTION 5. Sections 394.032(a) and (e), Local Government
61	61	Code, are amended to read as follows:
62	62	(a) Subject to the limitations of Sections 394.031(c) and
63	63	(d), a [A] housing finance corporation may:
64	64	(1) make contracts and other instruments as necessary
65	65	or convenient to the exercise of powers under this chapter;
66	66	(2) incur liabilities;
67	67	(3) borrow money at rates determined by the
68	68	corporation;
69	69	(4) issue notes, bonds, and other obligations; and
70	70	(5) secure any of its obligations by the mortgage or
71	71	pledge of all or part of the corporation's property, franchises,
72	72	and income.
73	73	(e) A housing finance corporation may delegate to the Texas
74	74	Department of Housing and Community Affairs the authority to act on
75	75	its behalf in the financing, refinancing, acquisition, leasing,
76	76	ownership, improvement, and disposal of home mortgages or
77	77	residential developments, within [and outside] the jurisdiction of
78	78	the housing finance corporation, including its authority to issue
79	79	bonds for those purposes.
80	80	SECTION 6. Section 394.037, Local Government Code, is
81	81	amended by adding Subsection (a-1) to read as follows:
82	82	(a-1) Bonds issued under this chapter for a purpose
83	83	described by Subsection (a) may be issued only to finance or support
84	84	residential developments or homes that are located:
85	85	(1) inside the boundaries of the sponsoring local
86	86	government, if the bonds are issued by a housing finance
87	87	corporation formed under Section 394.011; or
88	88	(2) inside the boundaries of at least one sponsoring
89	89	local government, if the bonds are issued by a joint housing finance
90	90	corporation formed under Section 394.012.
91	91	SECTION 7. Section 394.039, Local Government Code, is
92	92	amended to read as follows:
93	93	Sec. 394.039. SPECIFIC POWERS RELATING TO FINANCIAL AND
94	94	PROPERTY TRANSACTIONS. A housing finance corporation may:
95	95	(1) lend money for its corporate purposes, invest and
96	96	reinvest its funds, and take and hold real or personal property as
97	97	security for the payment of the loaned or invested funds;
98	98	(2) mortgage, pledge, or grant security interests in
99	99	any residential development, home mortgage, note, or other property
100	100	in favor of the holders of bonds issued for those items;
101	101	(3) purchase, receive, lease, or otherwise acquire,
102	102	own, hold, improve, use, or deal in and with real or personal
103	103	property or interests in that property, [wherever the property is
104	104	located,] as required by the purposes of the corporation or as
105	105	donated to the corporation; and
106	106	(4) sell, convey, mortgage, pledge, lease, exchange,
107	107	transfer, and otherwise dispose of all or part of its property and
108	108	assets.
109	109	SECTION 8. Section 394.9025(b), Local Government Code, is
110	110	amended to read as follows:
111	111	(b) Following a public hearing by the governing body of the
112	112	applicable local government as described by Section 394.037(a-1), a
113	113	housing finance corporation may issue bonds to finance a
114	114	multifamily residential development to be owned by the housing
115	115	finance corporation in accordance with the requirements of this
116	116	chapter [Section 394.004] if the housing finance corporation
117	117	receives approval of the governing body of that [the] local
118	118	government.
119	119	SECTION 9. Subchapter Z, Chapter 394, Local Government
120	120	Code, is amended by adding Sections 394.9026 and 394.9027 to read as
121	121	follows:
122	122	Sec. 394.9026. ADDITIONAL CONDITIONS FOR BENEFICIAL
123	123	PROPERTY-BASED TAX AND FEE TREATMENT RELATING TO CERTAIN
124	124	MULTIFAMILY RESIDENTIAL DEVELOPMENTS. (a) In this section:
125	125	(1) "Housing choice voucher program" means the housing
126	126	choice voucher program under Section 8, United States Housing Act
127	127	of 1937 (42 U.S.C. Section 1437f).
128	128	(2) "Lower income housing unit" means a residential
129	129	unit reserved for occupancy by an individual or family earning not
130	130	more than 60 percent of the area median income, adjusted for family
131	131	size, as defined by the United States Department of Housing and
132	132	Urban Development.
133	133	(3) "Moderate income housing unit" means a residential
134	134	unit reserved for occupancy by an individual or family earning not
135	135	more than 80 percent of the area median income, adjusted for family
136	136	size, as defined by the United States Department of Housing and
137	137	Urban Development.
138	138	(4) "Property-based exemption" means an exemption
139	139	from the taxes and fees imposed with respect to property owned by a
140	140	housing finance corporation or with respect to income from that
141	141	property.
142	142	(5) "Rent" means any recurring fee or charge a tenant
143	143	is required to pay as a condition of occupancy, including a fee or
144	144	charge for the use of a common area or facility reasonably
145	145	associated with residential rental property.
146	146	(b) This section does not apply to a multifamily residential
147	147	development that is the recipient of a low income housing tax credit
148	148	allocated under Subchapter DD, Chapter 2306, Government Code.
149	149	(c) Subject to Subsection (g), a property-based exemption
150	150	under Section 394.905(a) for a multifamily residential development
151	151	is available only if the multifamily residential development
152	152	satisfies the other requirements of this chapter and if:
153	153	(1) at least:
154	154	(A) 10 percent of the units in the multifamily
155	155	residential development are reserved for occupancy as lower income
156	156	housing units; and
157	157	(B) 40 percent of the units in the multifamily
158	158	residential development are reserved for occupancy as moderate
159	159	income housing units;
160	160	(2) for a multifamily residential development that is
161	161	acquired by a housing finance corporation, the development is
162	162	occupied or was occupied within the two-year period preceding the
163	163	date of the acquisition and is not otherwise subject to a land use
164	164	restriction agreement under Section 2306.185, Government Code,
165	165	and:
166	166	(A) not less than 15 percent of the total gross
167	167	cost of the existing development, as shown in the settlement
168	168	statement, is expended on rehabilitating, renovating,
169	169	reconstructing, or repairing the development, with initial
170	170	expenditures and construction activities:
171	171	(i) beginning not later than the first
172	172	anniversary of the date of the acquisition; and
173	173	(ii) finishing not later than the third
174	174	anniversary of the date of the acquisition; or
175	175	(B) at least 25 percent of the units are reserved
176	176	for occupancy as lower income housing units and the development is
177	177	approved by the governing body of the municipality in which the
178	178	development is located or, if the development is not located in a
179	179	municipality, the county in which the development is located;
180	180	(3) not less than 30 days before the date of final
181	181	approval of the development:
182	182	(A) the housing finance corporation or a
183	183	sponsoring local government of the corporation conducts, or obtains
184	184	from a professional entity that has experience underwriting
185	185	affordable multifamily residential developments and does not have a
186	186	financial interest in the applicable development, developer, or
187	187	housing finance corporation, an underwriting assessment of the
188	188	proposed development that allows the housing finance corporation to
189	189	make a good faith determination that, for an occupied multifamily
190	190	residential development acquired by a housing finance corporation
191	191	or for a newly constructed multifamily residential development
192	192	owned by a housing finance corporation, the total annual amount of
193	193	rent reduction on the income-restricted residential units provided
194	194	at the development will be not less than 60 percent of the estimated
195	195	amount of the annual ad valorem taxes that would be imposed on the
196	196	property without an exemption from those taxes under Section
197	197	394.905(a) for the second, third, and fourth years after the date of
198	198	acquisition by the housing finance corporation or the date the
199	199	certificate of occupancy is issued for the development, as
200	200	applicable; and
201	201	(B) the housing finance corporation publishes on
202	202	its Internet website a copy of the underwriting assessment
203	203	described by Paragraph (A);
204	204	(4) the percentage of lower and moderate income
205	205	housing units reserved in each category of income-restricted
206	206	residential units in the development, based on the number of
207	207	bedrooms per unit, is the same as the percentage of each category of
208	208	income-restricted residential units reserved in the development as
209	209	a whole;
210	210	(5) the monthly rent charged per unit does not exceed:
211	211	(A) for a lower income housing unit, 30 percent
212	212	of 60 percent of the area median income, adjusted for family size,
213	213	as defined by the United States Department of Housing and Urban
214	214	Development; or
215	215	(B) for a moderate income housing unit, 30
216	216	percent of 80 percent of the area median income, adjusted for family
217	217	size, as defined by the United States Department of Housing and
218	218	Urban Development;
219	219	(6) the housing finance corporation that owns the
220	220	development does not:
221	221	(A) refuse to rent a residential unit to an
222	222	individual or family because the individual or family participates
223	223	in the housing choice voucher program; or
224	224	(B) use a financial or minimum income standard
225	225	that requires an individual or family participating in the housing
226	226	choice voucher program to have a monthly income of more than 250
227	227	percent of the individual's or family's share of the total monthly
228	228	rent payable for a unit;
229	229	(7) the housing finance corporation publishes on its
230	230	Internet website information about the development's:
231	231	(A) compliance with the conditions prescribed by
232	232	this section; and
233	233	(B) policies regarding tenant participation in
234	234	the housing choice voucher program;
235	235	(8) the housing finance corporation that owns the
236	236	development:
237	237	(A) affirmatively markets available residential
238	238	units directly to individuals and families participating in the
239	239	housing choice voucher program; and
240	240	(B) notifies local housing authorities of the
241	241	development's acceptance of tenants in the housing choice voucher
242	242	program; and
243	243	(9) each lease agreement for a residential unit in the
244	244	development provides that:
245	245	(A) the landlord may not retaliate against the
246	246	tenant or the tenant's guests by taking an action because the tenant
247	247	established, attempted to establish, or participated in a tenant
248	248	organization;
249	249	(B) the landlord may only choose to not renew the
250	250	lease if the tenant:
251	251	(i) committed one or more substantial
252	252	violations of the lease;
253	253	(ii) failed to provide required information
254	254	on the income, composition, or eligibility of the tenant's
255	255	household; or
256	256	(iii) committed repeated minor violations
257	257	of the lease that disrupt the livability of the property, adversely
258	258	affect the health and safety of any person or the right to quiet
259	259	enjoyment of the leased premises and related development
260	260	facilities, interfere with the management of the development, or
261	261	have an adverse financial effect on the development, including the
262	262	failure of the tenant to pay rent in a timely manner; and
263	263	(C) to not renew the lease, the landlord must
264	264	serve a written notice of proposed nonrenewal on the tenant not
265	265	later than the 30th day before the effective date of nonrenewal.
266	266	(d) In calculating the income of an individual or family for
267	267	a lower or moderate income housing unit, the housing finance
268	268	corporation must use the definition of annual income described in
269	269	24 C.F.R. Section 5.609, as implemented by the United States
270	270	Department of Housing and Urban Development. If the income of a
271	271	tenant exceeds an applicable limit at the time of the renewal of a
272	272	lease agreement for a residential unit, the provisions of Section
273	273	42(g)(2)(D), Internal Revenue Code of 1986, apply in determining
274	274	whether the unit may still qualify as a lower or moderate income
275	275	housing unit.
276	276	(e) A housing finance corporation may require an individual
277	277	or family participating in the housing choice voucher program to
278	278	pay the difference between the monthly rent for the applicable unit
279	279	and the amount of the monthly voucher if the amount of the voucher
280	280	is less than the rent.
281	281	(f) A tenant may not waive the protections provided by
282	282	Subsection (c)(9). A housing finance corporation may adopt tenant
283	283	protections that are more protective of tenants than the tenant
284	284	protections provided by Subsection (c)(9).
285	285	(g) Notwithstanding Subsection (c) and Section
286	286	394.905(a)(1), a multifamily residential development that is
287	287	acquired by a housing finance corporation, that is occupied or was
288	288	occupied within the two-year period preceding the date of the
289	289	acquisition, and that is not otherwise subject to a land use
290	290	restriction agreement under Section 2306.185, Government Code, is
291	291	eligible for a property-based exemption under Section 394.905(a)
292	292	for:
293	293	(1) the one-year period following the date of the
294	294	acquisition, regardless of whether the development complies with
295	295	the conditions prescribed by Subsection (c) and Section
296	296	394.905(a)(1); and
297	297	(2) a year following the year described by Subdivision
298	298	(1) only if the development comes into compliance with the
299	299	conditions prescribed by Subsection (c) and Section 394.905(a)(1)
300	300	not later than the first anniversary of the date of the acquisition.
301	301	Sec. 394.9027. AUDIT REQUIREMENTS FOR CERTAIN MULTIFAMILY
302	302	RESIDENTIAL DEVELOPMENTS. (a) In this section:
303	303	(1) "Department" means the Texas Department of Housing
304	304	and Community Affairs.
305	305	(2) "Property-based exemption" has the meaning
306	306	assigned by Section 394.9026.
307	307	(b) A housing finance corporation that claims a
308	308	property-based exemption for a multifamily residential
309	309	development under Section 394.905(a) must annually submit to the
310	310	department and the chief appraiser of the appraisal district in
311	311	which the development is located an audit report for a compliance
312	312	audit, prepared at the expense of the housing finance corporation
313	313	and conducted by an independent auditor or compliance expert with
314	314	an established history of providing similar audits on housing
315	315	compliance matters, to:
316	316	(1) determine whether the housing finance corporation
317	317	is in compliance with the conditions imposed for the exemption by
318	318	Sections 394.905(a) and 394.9026; and
319	319	(2) identify the difference in the rent charged for
320	320	income-restricted residential units and the estimated maximum
321	321	market rents that could be charged for those units without the rent
322	322	or income restrictions.
323	323	(c) Not later than the 60th day after the date of receipt of
324	324	the audit conducted under Subsection (b), the department shall
325	325	examine the audit report and publish a report summarizing the
326	326	findings of the audit. The report must:
327	327	(1) be made available on the department's Internet
328	328	website;
329	329	(2) be issued to a housing finance corporation that
330	330	has an interest in a development that is the subject of an audit,
331	331	the comptroller, and the governing body of the housing finance
332	332	corporation's sponsoring local government or governments; and
333	333	(3) describe in detail the nature of any failure to
334	334	comply with the conditions imposed for the property-based exemption
335	335	by Section 394.905(a) or 394.9026.
336	336	(d) If an audit report submitted under Subsection (b)
337	337	indicates noncompliance with Section 394.905(a) or 394.9026, a
338	338	housing finance corporation:
339	339	(1) must be given:
340	340	(A) written notice from the department or
341	341	appropriate appraisal district that:
342	342	(i) is provided not later than the 90th day
343	343	after the date a report has been submitted under Subsection (b);
344	344	(ii) specifies the reasons for
345	345	noncompliance;
346	346	(iii) contains at least one option for a
347	347	corrective action to resolve the noncompliance; and
348	348	(iv) informs the housing finance
349	349	corporation that failure to resolve the noncompliance will result
350	350	in the loss of the property-based exemption under Section
351	351	394.905(a);
352	352	(B) a period of 60 days after the date notice is
353	353	received under this subdivision to resolve the matter that is the
354	354	subject of the notice; and
355	355	(C) if a matter that is the subject of a notice
356	356	provided under this subdivision is not resolved to the satisfaction
357	357	of the department and appropriate taxing authority during the
358	358	period provided by Paragraph (B), a second notice that informs the
359	359	housing finance corporation of the loss of the property-based
360	360	exemption due to noncompliance with Section 394.905(a) or 394.9026,
361	361	as applicable; and
362	362	(2) is considered to be in compliance with Sections
363	363	394.905(a) and 394.9026 if notice under Subdivision (1)(A) is not
364	364	provided as specified by Subparagraph (i) of that paragraph.
365	365	(e) Except as provided by Section 394.9026(g), a
366	366	property-based exemption under Section 394.905(a) does not apply
367	367	for a tax year in which a multifamily residential development that
368	368	is owned by a housing finance corporation created under this
369	369	chapter is determined by the department based on an audit conducted
370	370	under Subsection (b) to not be in compliance with the conditions
371	371	imposed for that exemption by Sections 394.905(a) and 394.9026.
372	372	(f) The initial audit report required by Subsection (b) is
373	373	due not later than June 1 of the year following the first
374	374	anniversary of:
375	375	(1) the date of acquisition for an occupied
376	376	multifamily residential development that is acquired by a housing
377	377	finance corporation; or
378	378	(2) the date a new multifamily residential development
379	379	first becomes occupied by one or more tenants.
380	380	(g) Subsequent audit reports following the issuance of the
381	381	initial audit report under Subsection (f) are due not later than
382	382	June 1 of each year.
383	383	(h) An independent auditor or compliance expert may not
384	384	prepare an audit under Subsection (b) for more than three
385	385	consecutive years for the same housing finance corporation. After
386	386	the third consecutive audit, the independent auditor or compliance
387	387	expert may prepare an audit only after the second anniversary of the
388	388	preparation of the third consecutive audit.
389	389	(i) The department:
390	390	(1) shall adopt forms and reporting standards for the
391	391	auditing process;
392	392	(2) may charge a fee for the submission of an audit
393	393	report under this section in a reasonable amount necessary to cover
394	394	the expenses of administering this section; and
395	395	(3) may adopt rules necessary to implement this
396	396	section.
397	397	(j) An audit conducted under Subsection (b) is subject to
398	398	disclosure under Chapter 552, Government Code, except that
399	399	information containing tenant names, unit numbers, or other tenant
400	400	identifying information may be redacted.
401	401	SECTION 10. Section 394.903, Local Government Code, is
402	402	amended to read as follows:
403	403	Sec. 394.903. TRANSFER [LOCATION] OF [RESIDENTIAL
404	404	DEVELOPMENT;] RESIDENTIAL DEVELOPMENT SITES. [(a) A residential
405	405	development covered by this chapter must be located within the
406	406	local government.
407	407	[(b)] A [The] local government may transfer any residential
408	408	development site to a housing finance corporation by sale or lease.
409	409	The governing body of the local government may authorize the
410	410	transfer by resolution without submitting the issue to the voters
411	411	and without regard to the requirements, restrictions, limitations,
412	412	or other provisions contained in any other general, special, or
413	413	local law. The site location is subject to the requirements of this
414	414	chapter [may be located wholly or partly inside or outside the local
415	415	government].
416	416	SECTION 11. Section 394.905, Local Government Code, is
417	417	amended to read as follows:
418	418	Sec. 394.905. EXEMPTION FROM TAXES AND FEES [TAXATION].
419	419	(a) Notwithstanding any other law, the [The] housing finance
420	420	corporation, all property owned by it, the income from the
421	421	property, all bonds issued by it, the income from the bonds, and the
422	422	transfer of the bonds are exempt, as public property used for public
423	423	purposes, from license fees, recording fees, and all other taxes
424	424	imposed by this state or any political subdivision of this state
425	425	only if:
426	426	(1) for an exemption from taxes and fees imposed with
427	427	respect to property owned by the housing finance corporation:
428	428	(A) any applicable audit report requirements
429	429	provided by Section 394.9027 are satisfied, other than those
430	430	imposed on a multifamily residential development under the
431	431	circumstances described by Section 394.9026(g);
432	432	(B) the property is located in an area in which
433	433	the housing finance corporation is authorized to exercise its
434	434	powers as described by Section 394.031(c) or the exemption is
435	435	approved by each applicable governing body described by Section
436	436	394.031(d); and
437	437	(C) if an exemption from ad valorem taxation is
438	438	claimed, the housing finance corporation submits to the Texas
439	439	Department of Housing and Community Affairs and to the county tax
440	440	assessor-collector for each appraisal district in which the
441	441	exemption is sought a one-time exemption application on a form
442	442	promulgated by the comptroller; or
443	443	(2) the requirements provided by Section 394.037(a-1)
444	444	are satisfied, for an exemption from taxes and fees imposed with
445	445	respect to bonds issued by the housing finance corporation, the
446	446	income from those bonds, and the transfer of those bonds.
447	447	(b) The corporation is exempt from the franchise tax imposed
448	448	by Chapter 171, Tax Code, only if the corporation is exempted by
449	449	that chapter.
450	450	SECTION 12. Section 394.005, Local Government Code, is
451	451	repealed.
452	452	SECTION 13. (a) Sections 394.031(c) and (d), Local
453	453	Government Code, as added by this Act, apply only to the exercise of
454	454	power by a housing finance corporation made on or after the
455	455	effective date of this Act. An exercise of power made before the
456	456	effective date of this Act is governed by the law in effect on the
457	457	date the power was exercised, and the former law is continued in
458	458	effect for that purpose.
459	459	(b) Sections 394.037(a-1) and 394.905(a)(2), Local
460	460	Government Code, as added by this Act, apply only to bonds issued on
461	461	or after the effective date of this Act. Bonds issued before the
462	462	effective date of this Act are governed by the law in effect on the
463	463	date the bonds were issued, and the former law is continued in
464	464	effect for that purpose.
465	465	(c) Subject to Subsections (d), (e), and (f) of this
466	466	section, Sections 394.905(a)(1) and 394.9026, Local Government
467	467	Code, as added by this Act, apply only to a tax or fee imposed for a
468	468	tax year or calendar year, respectively, that begins on or after the
469	469	effective date of this Act.
470	470	(d) Subject to Subsections (e) and (f) of this section,
471	471	Sections 394.905(a)(1) and 394.9026, Local Government Code, as
472	472	added by this Act, apply only to a residential development that is
473	473	acquired by a housing finance corporation on or after the effective
474	474	date of this Act. A residential development that was acquired by a
475	475	housing finance corporation before the effective date of this Act
476	476	is governed by the law in effect on the date the development was
477	477	acquired by the corporation, and the former law is continued in
478	478	effect for that purpose.
479	479	(e) Section 394.9026(g), Local Government Code, as added by
480	480	this Act, applies only to an occupied multifamily residential
481	481	development that is acquired by a housing finance corporation on or
482	482	after the effective date of this Act. An occupied multifamily
483	483	residential development that is acquired by a housing finance
484	484	corporation before the effective date of this Act is governed by the
485	485	law in effect on the date the development was acquired by the
486	486	housing finance corporation, and the former law is continued in
487	487	effect for that purpose.
488	488	(f) Sections 394.9026(c)(6), (7), (8), and (9) and (f),
489	489	Local Government Code, as added by this Act, apply to a multifamily
490	490	residential development owned by a housing finance corporation on
491	491	or after the effective date of this Act, regardless of the date the
492	492	development was acquired by the housing finance corporation.
493	493	(g) Notwithstanding Section 394.9027(b) or (f), Local
494	494	Government Code, as added by this Act, the initial audit report
495	495	required to be submitted under Section 394.9027(b), Local
496	496	Government Code, as added by this Act, for a multifamily
497	497	residential development that was acquired by a housing finance
498	498	corporation before the effective date of this Act must be submitted
499	499	by the later of:
500	500	(1) the date established by Section 394.9027(f), Local
501	501	Government Code, as added by this Act; or
502	502	(2) June 1, 2026.
503	503	(h) Not later than January 1, 2026, the Texas Department of
504	504	Housing and Community Affairs shall adopt rules necessary to
505	505	implement Section 394.9027(i), Local Government Code, as added by
506	506	this Act.
507	507	SECTION 14. This Act takes effect immediately if it
508	508	receives a vote of two-thirds of all the members elected to each
509	509	house, as provided by Section 39, Article III, Texas Constitution.
510	510	If this Act does not receive the vote necessary for immediate
511	511	effect, this Act takes effect September 1, 2025.