By:  Baxter                                                       H.B. No. 2266



A BILL TO BE ENTITLED

AN ACT

relating to the authority of municipalities to enact a requirement 
that establishes the sales price for certain housing units or 
residential lots.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter Z, Chapter 214, Local Government 
Code, is amended by adding Section 214.904 to read as follows:
	Sec. 214.904.  PROHIBITION OF CERTAIN MUNICIPAL 
REQUIREMENTS REGARDING SALES OF HOUSING UNITS OR RESIDENTIAL LOTS.  
(a)  A municipality may not adopt a requirement in any form, 
including through an ordinance or regulation or as a condition for 
granting a building permit, that establishes a maximum sales price 
for a privately produced housing unit or residential building lot.
	(b)  This section does not affect any authority of a 
municipality to create or implement an incentive, contract 
commitment, density bonus, or other voluntary program designed to 
increase the supply of moderate or lower cost housing units.
	(c)  This section does not apply to a requirement adopted by 
a municipality:
		(1)  for an area as a part of a development agreement 
entered into before September 1, 2005; or
		(2)  under the provisions of Chapter 373A for a 
homestead preservation district.
	(d)  This section does not apply to property that is part of 
an urban land bank demonstration program under Chapter 379C.
	(e)  This section does not preclude a municipality from 
establishing development criteria as a condition for receipt of a 
tax credit or other incentive or for the purpose of preventing 
gentrification.
	SECTION 2.  This Act takes effect September 1, 2005.