H.B. No. 2266




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: 
		(1)  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; or
		(2)  adopt a requirement applicable to an area served 
under the provisions of Chapter 373A, Local Government Code, which 
authorizes homestead preservation districts, if such chapter is 
created by an act of the legislature.
	(c)  This section does not apply to a requirement adopted by 
a municipality for an area as a part of a development agreement 
entered into before September 1, 2005.
	(d)  This section does not apply to property that is part of 
an urban land bank program.
	SECTION 2.  This Act takes effect September 1, 2005.                           




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.B. No. 2266 was passed by the House on May 2, 
2005, by a non-record vote; and that the House concurred in Senate 
amendments to H.B. No. 2266 on May 27, 2005, by a non-record vote.

                                                  ______________________________
                                                     Chief Clerk of the House   

	
I certify that H.B. No. 2266 was passed by the Senate, with 
amendments, on May 21, 2005, by the following vote:  Yeas 27, Nays 
3.

                                                  ______________________________
                                                      Secretary of the Senate   



APPROVED: __________________                                                
 
                Date                                                         




 
         __________________                                              
 
              Governor