state land reviews get an affordable housing question

The text as introduced · 602 words

2025S0121-1 02/20/25

By: Gates
H.B. No. 5408

A BILL TO BE ENTITLED

AN ACT

relating to General Land Office and Texas Department of Housing and

Community Affairs reviews of real property owned by the state.

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

SECTION 1. Section 31.156, Natural Resources Code, is

amended by amending Subsection (c) and adding Subsections (f), (g),

and (h) to read as follows:

(c) The division's recommendations must include an analysis

of the highest and best use to which the real property may legally

be placed and shall also include alternative uses of the real

property addressing potential for commercial , residential, or

agricultural lease of the real property or any other real estate

transaction or use that the division may deem to be in the best

interest of the state.

(f) In considering alternative uses of the real property for

residential lease in Subsection (c), the division shall solicit a

basic assessment from the Texas Department of Housing and Community

Affairs concerning whether all or portions of the real property are

suitable to lease or otherwise develop for affordable housing.

(g) The Texas Department of Housing and Community Affairs

shall submit the basic assessment under Subsection (f) not later

than 60 days after receiving a solicitation from the division.

(h) The division shall include the basic assessment

submitted under Subsection (g) in the report required by Section

31.157.

SECTION 2. Section 31.1571, Natural Resources Code, is

amended by amending Subsections (b) and (c) and adding Subsections

(b-1) and (b-2) to read as follows:

(b) Before the commissioner recommends a real estate

transaction to the governor under this section, the commissioner

shall solicit a basic assessment from the Texas Department of

Housing and Community Affairs concerning whether all or portions of

the real property are suitable to lease or otherwise develop for

affordable housing.

(b-1) The Texas Department of Housing and Community Affairs

shall submit the basic assessment under Subsection (b) not later

than 60 days after receiving a solicitation from the commissioner.

(b-2) If the commissioner makes a report under Subsection

(a), the commissioner shall include the basic assessment submitted

under Subsection (b-1) in the report.

(c) After the commissioner recommends a real estate

transaction to the governor under this section, the commissioner

shall notify the state agency that owns or controls the real

property [ and the Texas Department of Housing and Community

Affairs ]. Not later than the 60th day after the date the written

recommendation is received, the state agency [ and the Texas

Department of Housing and Community Affairs ] may file with the

governor their comments on or objections to the recommendation.

[ (c) If the commissioner recommends a real estate

transaction to the governor involving real property identified as

not used or substantially underused and the division's analysis of

the highest and best use for the real property is determined to be

residential, the Texas Department of Housing and Community Affairs

shall evaluate the property and identify any property suitable for

affordable housing. The Texas Department of Housing and Community

Affairs shall submit comments concerning any property suitable for

affordable housing and any documents supporting the comments to the

governor not later than the 60th day after the date it receives the

report prepared under this section. ]

SECTION 3. 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.