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A BILL TO BE ENTITLED
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AN ACT
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relating to multifamily residential developments financed, owned, |
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or operated by public facility corporations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 303.003, Local Government Code, is |
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amended by adding Subdivision (6-a) to read as follows: |
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(6-a) "Multifamily residential development" means any |
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residential development consisting of four or more dwelling units |
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intended for occupancy as rentals, regardless of whether the units |
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are attached or detached. |
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SECTION 2. Section 303.021(d), Local Government Code, is |
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amended to read as follows: |
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(d) A corporation or a sponsor may finance, own, or operate |
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a multifamily residential development only if: |
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(1) the corporation or sponsor complies with all |
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applicable provisions of this chapter; [and] |
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(2) the development is located: |
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(A) inside the area of operation of the sponsor, |
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if the sponsor is a housing authority; or |
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(B) if the sponsor is not a housing authority, |
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inside the boundaries of the sponsor, without regard to whether the |
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sponsor is authorized to own property or provide services outside |
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the boundaries of the sponsor; and |
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(3) for a multifamily residential development |
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financed, owned, or operated by a sponsor that is a school district |
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or a development financed, owned, or operated by a corporation |
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created by such a sponsor: |
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(A) at least 75 percent of the residential units |
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at the development are restricted to occupancy by households with |
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at least one employee of the district; or |
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(B) the development is located on real property |
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that was previously used for at least ten years by the district as a |
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school campus or for administrative functions performed by the |
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district. |
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SECTION 3. Section 303.003(6-a), Local Government Code, as |
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added by this Act, and Section 303.021(d), Local Government Code, |
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as amended by this Act, apply only to a multifamily residential |
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development (1) for which title was acquired by a public facility |
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corporation or the sponsor of a public facility corporation on or |
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after the effective date of this Act or (2) a contract for financing |
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or operation was entered into by a public facility corporation or |
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the sponsor of a public facility corporation on or after the |
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effective date of this Act. A multifamily residential development |
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for which title was acquired or a contract for financing or |
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operation was entered into before the effective date of this Act is |
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governed by the law in effect on the date the title was acquired or |
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the date the contract was entered into, and the former law is |
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continued in effect for that purpose. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |