By: Bettencourt  S.B. No. 1454
         (In the Senate - Filed February 19, 2025; March 6, 2025,
  read first time and referred to Committee on Local Government;
  April 29, 2025, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 6, Nays 0; April 29, 2025,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1454 By:  Paxton
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the area of operations of and certain tax exemptions
  available to housing authorities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 392.005, Local Government Code, is
  amended by adding Subsection (e) to read as follows:
         (e)  An exemption under this section does not apply to taxes
  imposed on a multifamily residential development by a district that
  provides water, sewer, or drainage service to the development,
  unless the applicable authority has entered into a written
  agreement with the district to make a payment to the district in
  lieu of taxation, in the amount specified in the agreement.  In this
  subsection, district means:
               (1)  a conservation or reclamation district created
  under Section 52, Article III, or Section 59, Article XVI, Texas
  Constitution; or
               (2)  an emergency services district created under
  Chapter 775, Health and Safety Code.
         SECTION 2.  Section 392.014, Local Government Code, is
  amended to read as follows:
         Sec. 392.014.  AREA OF OPERATION OF A MUNICIPAL HOUSING
  AUTHORITY.  The area of operation of a municipal housing authority
  is limited to the territorial boundaries of the municipality for
  which the authority is created [and the area that is within five
  miles of the territorial boundaries of the municipality and is not
  within the territorial boundaries of another municipality].
         SECTION 3.  Section 392.017(b), Local Government Code, is
  amended to read as follows:
         (b)  A municipal housing authority may not undertake a
  housing project outside the territorial boundaries of the
  municipality in which it is authorized to exercise its powers
  unless a resolution is adopted by each [the] governing body of the
  political subdivision in which the housing project is to be located
  and by the housing authority authorized to exercise its powers
  exclusively in the political subdivision, if any:
               (1)  declaring a need for the municipal housing
  authority to exercise its powers in the political subdivision; and
               (2)  authorizing a cooperation agreement under Section
  392.059.
         SECTION 4.  Section 392.014, Local Government Code, as
  amended by this Act, applies only to a housing project for which a
  contract was entered into on or after the effective date of this
  Act.  A housing project for which a contract was entered into before
  the effective date of this Act is governed by the law in effect on
  the date the contract was entered into, and the former law is
  continued in effect for that purpose.
         SECTION 5.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2025.
 
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