Bill > HB3532

This bill modifies Texas local government code provisions related to multifamily residential developments owned by public facility corporations, introducing several key changes. The bill redefines "rent" to include recurring fees for common area use, establishes a definition for "rent reduction," and removes school districts from the list of potential sponsors of public facility corporations. It establishes more stringent requirements for tax exemptions, including mandating that developments reserve a percentage of units for lower and moderate income housing, conduct professional underwriting assessments, and provide detailed annual audit reports. The bill requires that rent reductions for income-restricted units must be at least 60 percent of the estimated annual ad valorem taxes that would be imposed without income restrictions, and introduces a new requirement for a one-time exemption application to the Texas Department of Housing and Community Affairs. These changes aim to ensure that public facility corporations providing affordable housing meet specific affordability and compliance standards, with provisions applying to both new and existing developments. The bill will take effect either immediately with a two-thirds legislative vote or on September 1, 2025, and applies to tax years beginning after its effective date.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3532