H.B. No. 3533 amends the Local Government Code to define "multifamily residential development" as any residential development consisting of four or more rental dwelling units, regardless of their attachment status. The bill also modifies the conditions under which public facility corporations or sponsors can finance, own, or operate such developments. Specifically, it introduces a new requirement that for developments financed, owned, or operated by a sponsor that is a school district, at least 75% of the residential units must be occupied by households with at least one employee of the district, or the development must be located on property previously used by the district for at least ten years.

Additionally, the bill clarifies that these new definitions and requirements apply only to multifamily residential developments for which title was acquired or contracts for financing or operation were entered into on or after the effective date of the Act. Developments that were established prior to this date will continue to be governed by the existing law. The Act is set to take effect immediately upon receiving a two-thirds vote from both houses of the legislature or on September 1, 2025, if such a vote is not achieved.

Statutes affected:
Introduced: Local Government Code 303.003, Local Government Code 303.021 (Local Government Code 303)