79R4470 DRH-D

By:  Baxter                                                       H.B. No. 2266



A BILL TO BE ENTITLED

AN ACT

relating to the authority of municipalities to enact requirements 
that establish the sales price or limit the eligible buyers 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:
		(1)  has the effect of establishing a maximum sales 
price for a housing unit or residential building lot; or
		(2)  requires a housing unit or residential building 
lot to be designated for sale to any particular class or group of 
purchasers defined by income or wealth.
	(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.
	SECTION 2.  A requirement of a municipality that violates 
Section 214.904, Local Government Code, as added by this Act, is 
void on the effective date of this Act.
	SECTION 3.  This Act takes effect September 1, 2005.