HB2937 - Relating to the areas of operation of housing finance corporations.

  89R9543 JAM-D     By: Anchía H.B. No. 2937       A BILL TO BE ENTITLED   AN ACT   relating to the areas of operation of housing finance corporations.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  The heading to Section 394.031, Local Government   Code, is amended to read as follows:          Sec. 394.031.  EXERCISE OF POWERS ; AREA OF OPERATION .          SECTION 2.  Section 394.031, Local Government Code, is   amended by adding Subsection (c) to read as follows:           (c)     The area in which a housing finance corporation may   exercise its powers is limited to:                 (1)     for a housing finance corporation sponsored by a   municipality under Section 394.011, the jurisdictional boundaries   of the municipality that sponsored the corporation;                   (2)     for a housing finance corporation sponsored by a   county under Section 394.011, the unincorporated areas of the   county that sponsored the corporation; or                 (3)     for a housing finance corporation sponsored by   more than one local government under Section 394.012:                       (A)     the jurisdictional boundaries of each   municipal sponsor of the corporation; and                         (B)     the unincorporated areas of each county   sponsor of the corporation.          SECTION 3.  Sections 394.032(a) and (e), Local Government   Code, are amended to read as follows:          (a)   Subject to the limitations of Section 394.031(c), a [ A ]   housing finance corporation may:                (1)  make contracts and other instruments as necessary   or convenient to the exercise of powers under this chapter;                (2)  incur liabilities;                (3)  borrow money at rates determined by the   corporation;                (4)  issue notes, bonds, and other obligations; and                (5)  secure any of its obligations by the mortgage or   pledge of all or part of the corporation's property, franchises,   and income.          (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 4.  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)  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 5.  Section 394.903, Local Government Code, is   amended to read as follows:          Sec. 394.903.   TRANSFER [ LOCATION ] OF [ RESIDENTIAL   DEVELOPMENT; ] RESIDENTIAL DEVELOPMENT SITES. A  [ (a) A   residential development covered by this chapter must be located   within the local government.          [ (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 6.  Section 394.905, Local Government Code, is   amended to read as follows:          Sec. 394.905.  EXEMPTION FROM TAXES AND FEES  [ TAXATION ].     (a) Notwithstanding any other law, the [ 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   only if the applicable property, including a development, facility,   or home, is located in an area in which the housing finance   corporation is authorized to exercise its powers as described by   Section 394.031(c) .           (b)   The corporation is exempt from the franchise tax imposed   by Chapter 171, Tax Code, only if the corporation is exempted by   that chapter.          SECTION 7.  (a) Section 394.031(c), Local Government Code,   as added by this Act, applies only to the exercise of power by a   housing finance corporation made on or after the effective date of   this Act. An exercise of power made before the effective date of   this Act is governed by the law in effect on the date the power was   exercised, and the former law is continued in effect for that   purpose.          (b)  Section 394.905(a), 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 an occupied residential   development that is acquired by the corporation on or after the   effective date of this Act or 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.          SECTION 8.  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.