The bill, S.B. No. 1492, introduces several amendments to the Texas Finance Code and Local Government Code concerning housing finance corporations. A key provision is the addition 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 may only exercise their powers within the jurisdictional boundaries of their sponsoring municipalities or counties, unless approved by the governing bodies of the relevant local governments.

Furthermore, the bill establishes new audit requirements for housing finance corporations that own multifamily residential developments claiming tax exemptions. These corporations must submit annual compliance audit reports to the Texas Department of Housing and Community Affairs, which will then publish a summary of the findings. The bill also modifies existing provisions regarding tax exemptions, stating that such exemptions apply only if the property is located within the authorized operational area or if approved by the relevant governing bodies. Overall, the bill aims to enhance oversight and compliance 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)