Bill > HB2937

This bill modifies the Local Government Code to restrict the operational areas of housing finance corporations (HFCs) and clarify their tax exemption status. Specifically, the bill limits an HFC's powers to specific geographic boundaries: for a municipality-sponsored HFC, the corporation can only operate within that municipality's jurisdictional boundaries; for a county-sponsored HFC, only within the county's unincorporated areas; and for HFCs sponsored by multiple local governments, within the jurisdictional boundaries of each municipal sponsor and the unincorporated areas of each county sponsor. The bill also updates provisions related to property transactions, bond issuance, and tax exemptions, stipulating that tax and fee exemptions now only apply to properties located within the authorized operational areas of the HFC. Additionally, the bill provides transitional provisions, ensuring that powers exercised before the effective date remain governed by previous laws, and that the new tax exemption rules apply only to residential developments acquired or newly built after the act's implementation. The legislation aims to create more precise geographical constraints for housing finance corporations while maintaining their ability to support affordable housing initiatives.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2937