The bill, S.B. No. 1492, amends various sections of the Finance Code and Local Government Code to establish new regulations for housing finance corporations in Texas. A key provision is the introduction of Section 341.407, which prohibits authorized lenders from making loans to housing finance corporations unless they provide proof of compliance with specific local government code sections. Additionally, the bill clarifies the operational boundaries for housing finance corporations, stipulating that they can only exercise their powers within the jurisdictional limits of their sponsoring local governments unless approved otherwise.

Further amendments include the requirement for housing finance corporations that own multifamily residential developments to submit annual compliance audit reports to the Texas Department of Housing and Community Affairs. These audits must be conducted by independent auditors and are aimed at ensuring compliance with exemption conditions. The bill also specifies that exemptions from taxes and fees for housing finance corporations are contingent upon the property being located within authorized operational areas or receiving approval from relevant governing bodies. Overall, the bill seeks to enhance oversight and accountability for housing finance corporations in Texas.

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