The bill amends the Local Government Code to enhance the role of housing finance corporations in managing residential developments for low and moderate-income individuals. It establishes that these developments must be occupied by individuals whose adjusted gross income does not exceed the moderate income limits set by the housing finance corporation's regulations. The bill introduces new provisions ensuring that housing finance corporations adhere to open meetings and records laws, thereby promoting transparency. Additionally, it outlines the jurisdictional boundaries within which these corporations can operate and sets conditions for issuing bonds for financing residential developments, emphasizing compliance with specific income criteria.

Significant changes include the introduction of audit requirements for housing finance corporations, mandating annual compliance audits submitted to the Texas Department of Housing and Community Affairs. The bill allows local governments to transfer property to housing finance corporations without voter approval, clarifying that such transfers must comply with the chapter's requirements. It also specifies tax and fee exemptions for housing finance corporations, contingent upon meeting audit report requirements and property location criteria. The Texas Department of Housing and Community Affairs is tasked with adopting necessary rules by January 1, 2026, and the bill will take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if not.

Statutes affected:
Introduced: Local Government Code 394.004, Local Government Code 394.031, Local Government Code 394.032, Local Government Code 394.037, Local Government Code 394.039, Local Government Code 394.9025, Local Government Code 394.903, Local Government Code 394.905, Local Government Code 394.005 (Local Government Code 394)