bill defining multifamily for public facility corporations

The text as introduced · 480 words

By: Gates
H.B. No. 3533

A BILL TO BE ENTITLED

AN ACT

relating to multifamily residential developments financed, owned,

or operated by public facility corporations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 303.003, Local Government Code, is

amended by adding Subdivision (6-a) to read as follows:

(6-a) "Multifamily residential development" means any

residential development consisting of four or more dwelling units

intended for occupancy as rentals, regardless of whether the units

are attached or detached.

SECTION 2. Section 303.021(d), Local Government Code, is

amended to read as follows:

(d) A corporation or a sponsor may finance, own, or operate

a multifamily residential development only if:

(1) the corporation or sponsor complies with all

applicable provisions of this chapter; [ and ]

(2) the development is located:

(A) inside the area of operation of the sponsor,

if the sponsor is a housing authority; or

(B) if the sponsor is not a housing authority,

inside the boundaries of the sponsor, without regard to whether the

sponsor is authorized to own property or provide services outside

the boundaries of the sponsor ; and

(3) for a multifamily residential development

financed, owned, or operated by a sponsor that is a school district

or a development financed, owned, or operated by a corporation

created by such a sponsor:

(A) at least 75 percent of the residential units

at the development are restricted to occupancy by households with

at least one employee of the district; or

(B) the development is located on real property

that was previously used for at least ten years by the district as a

school campus or for administrative functions performed by the

district .

SECTION 3. Section 303.003(6-a), Local Government Code, as

added by this Act, and Section 303.021(d), Local Government Code,

as amended by this Act, apply only to a multifamily residential

development (1) for which title was acquired by a public facility

corporation or the sponsor of a public facility corporation on or

after the effective date of this Act or (2) a contract for financing

or operation was entered into by a public facility corporation or

the sponsor of a public facility corporation on or after the

effective date of this Act. A multifamily residential development

for which title was acquired or a contract for financing or

operation was entered into before the effective date of this Act is

governed by the law in effect on the date the title was acquired or

the date the contract was entered into, and the former law is

continued in effect for that purpose.

SECTION 4. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.