bill defining multifamily for public facility corporations

The text as introduced · 385 words

89R9608 JAM-D

By: Gates
H.B. No. 4306

A BILL TO BE ENTITLED

AN ACT

relating to multifamily residential developments owned 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 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, the

development:

(A) is restricted to occupancy primarily by

employees of the district; or

(B) is constructed on real property that was

previously used or initially intended to be used 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 for which a contract for financing, ownership, 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 a

contract for financing, ownership, or operation was entered into

before the effective date of this Act is governed by the law in

effect on the date the contract was entered into, and the former law

is continued in effect for that purpose.

SECTION 4. This Act takes effect September 1, 2025.