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A BILL TO BE ENTITLED
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AN ACT
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relating to the purchase of or acquisition of single-family |
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homesteads by certain out-of-state entities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 5, Property Code, is amended by adding |
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Subchapter J to read as follows: |
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SUBCHAPTER J. PURCHASE OF OR ACQUISITION OF SINGLE-FAMILY |
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HOMESTEADS BY CERTAIN OUT-OF-STATE ENTITIES. |
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Sec. 5.221. DEFINITIONS. In this subchapter: |
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(1) "Business" has the meaning assigned by Section |
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1.002, Business Organization Code. |
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(2) "Corporation" has the meaning assigned by Section |
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1.002, Business Organization Code. |
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(3) "Organization has the meaning assigned by Section |
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1.002, Business Organization Code. |
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(4) "Homestead" means a single-family dwelling for |
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which an individual claims an exemption under Section 11.13, Tax |
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Code. |
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(5) "Single-family homestead" means: |
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(A) a structure designed for residential use by |
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one family; or |
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(B) a unit, whose owner owns, directly or through |
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a nonprofit organization, an undivided interest in the underlying |
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real estate, including property owned in common with others which |
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provide a financial contribution toward the ownership of the |
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property; and |
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(C) claims an exemption under Section 11.13, Tax |
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Code. |
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(6) "Hedge fund" means a pool of money compiled by |
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investors with the intent to invest in projects in an effort to make |
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a positive return on investment. |
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(7) "Institutional investor" means an entity that |
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invests on the behalf of others including but not limited to |
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individuals, organizations, corporations, businesses, or hedge |
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funds. |
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Sec. 5.222 PURCHASE OF OR ACQUISITION OF SINGLE-FAMILY |
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HOMESTEADS BY CERTAIN OUT-OF-STATE ENTITIES PROHIBITED. (a) |
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Notwithstanding any other law, the following may not purchase or |
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otherwise acquire title to a single-family homestead in this state: |
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(1) a company, business, corporation, hedge fund, or |
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institutional investor that is: |
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(A) headquartered outside the state; |
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(B) directly or indirectly held or controlled |
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outside of the state; or |
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(C) owned by or whose majority stock or other |
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ownership interest is held or controlled outside the state; and |
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(D) not the owner of a homestead within the |
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state. |
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(b) This section does not apply to a nonprofit organization |
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purchasing or acquiring the title to real property for the purpose |
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of providing affordable housing. |
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SECTION 2. The changes in law made by this Act apply only to |
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the purchase of or acquisition of a single-family homestead on or |
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after the effective date of this Act. The purchase of or |
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acquisition of a single-family homestead before the effective date |
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of this Act is governed by the law in effect immediately before the |
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effective date of this Act and that law is continued in effect for |
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that purpose. |
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SECTION 3. This Act takes effect September 1, 2025. |