HB4306 - Relating to multifamily residential developments owned by public facility corporations.

  89R9608 JAM-D     By: Gates H.B. No. 4306       A BILL TO BE ENTITLED   AN ACT   relating to multifamily residential developments owned by public   facility corporations.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 303.003, Local Government Code, is   amended by adding Subdivision (6-a) to read as follows:                 (6-a)     "Multifamily residential development" means any   residential development consisting of four or more dwelling units   intended for occupancy as rentals, regardless of whether the units   are attached or detached.            SECTION 2.  Section 303.021(d), Local Government Code, is   amended to read as follows:          (d)  A corporation or a sponsor may finance, own, or operate   a multifamily residential development only if:                (1)  the corporation or sponsor complies with all   applicable provisions of this chapter; [ and ]                (2)  the development is located:                      (A)  inside the area of operation of the sponsor,   if the sponsor is a housing authority; or                      (B)  if the sponsor is not a housing authority,   inside the boundaries of the sponsor, without regard to whether the   sponsor is authorized to own property or provide services outside   the boundaries of the sponsor ; and                   (3)     for a development financed, owned, or operated by   a sponsor that is a school district or a development financed,   owned, or operated by a corporation created by such a sponsor, the   development:                       (A)     is restricted to occupancy primarily by   employees of the district; or                       (B)     is constructed on real property that was   previously used or initially intended to be used by the district as   a school campus or for administrative functions performed by the   district .          SECTION 3.  Section 303.003(6-a), Local Government Code, as   added by this Act, and Section 303.021(d), Local Government Code,   as amended by this Act, apply only to a multifamily residential   development for which a contract for financing, ownership, or   operation was entered into by a public facility corporation or the   sponsor of a public facility corporation on or after the effective   date of this Act. A multifamily residential development for which a   contract for financing, ownership, or operation 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 4.  This Act takes effect September 1, 2025.