HB1585 - Relating to housing finance corporations and to the location of residential developments owned by those corporations.

  89R18654 JAM-D     By: Bell of Montgomery, Gates, Cook, et al. H.B. No. 1585       A BILL TO BE ENTITLED   AN ACT   relating to housing finance corporations and to the location of   residential developments owned by those corporations.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 394.032(e), Local Government Code, is   amended to read as follows:          (e)  A housing finance corporation may delegate to the Texas   Department of Housing and Community Affairs the authority to act on   its behalf in the financing, refinancing, acquisition, leasing,   ownership, improvement, and disposal of home mortgages or   residential developments, within [ and outside ] the jurisdiction of   the housing finance corporation, including its authority to issue   bonds for those purposes.          SECTION 2.  Section 394.039, Local Government Code, is   amended to read as follows:          Sec. 394.039.  SPECIFIC POWERS RELATING TO FINANCIAL AND   PROPERTY TRANSACTIONS. A housing finance corporation may:                (1)  lend money for its corporate purposes, invest and   reinvest its funds, and take and hold real or personal property as   security for the payment of the loaned or invested funds;                (2)  mortgage, pledge, or grant security interests in   any residential development, home mortgage, note, or other property   in favor of the holders of bonds issued for those items;                (3)   subject to Section 394.905(c),  purchase, receive,   lease, or otherwise acquire, own, hold, improve, use, or deal in and   with real or personal property or interests in that property,   [ wherever the property is located, ] as required by the purposes of   the corporation or as donated to the corporation; and                (4)  sell, convey, mortgage, pledge, lease, exchange,   transfer, and otherwise dispose of all or part of its property and   assets.          SECTION 3.  Section 394.903, Local Government Code, is   amended to read as follows:          Sec. 394.903.  LOCATION OF RESIDENTIAL DEVELOPMENTS     [ DEVELOPMENT ]; TRANSFER OF  [ RESIDENTIAL DEVELOPMENT ] SITES.  (a)   A residential development subject to  [ covered by ] this chapter must   be located within the boundaries of the  local government that   formed the housing finance corporation that owns the development .          (b)  The local government may transfer any residential   development site to a housing finance corporation by sale or lease.   The governing body of the local government may authorize the   transfer by resolution without submitting the issue to the voters   and without regard to the requirements, restrictions, limitations,   or other provisions contained in any other general, special, or   local law. The site location is subject to the requirements of this   chapter [ may be located wholly or partly inside or outside the local   government ].          SECTION 4.  Section 394.905, Local Government Code, is   amended to read as follows:          Sec. 394.905.  EXEMPTION FROM TAXES AND FEES  [ TAXATION ].     (a)  The housing finance corporation, all property owned by it, the   income from the property, all bonds issued by it, the income from   the bonds, and the transfer of the bonds are exempt, as public   property used for public purposes, from license fees, recording   fees, and all other taxes imposed by this state or any political   subdivision of this state.           (b)   The corporation is exempt from the franchise tax imposed   by Chapter 171, Tax Code, only if the corporation is exempted by   that chapter.           (c)     Notwithstanding Subsections (a) and (b), a residential   development owned by a housing finance corporation is exempt from   taxes imposed by this state or a political subdivision of this state   only if the development is located within the boundaries of the   local government that formed the corporation.          SECTION 5.  Section 394.905(c), Local Government Code, as   added by this Act, applies only to a tax or fee to be imposed on a   housing finance corporation with respect to a newly built   residential development for which a certificate of occupancy is   issued on or after the effective date of this Act or with respect to   any other residential development that is acquired by the   corporation on or after the effective date of this Act.          SECTION 6.  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.