H.B. No. 3532 amends the Local Government Code to establish new definitions and requirements for multifamily residential developments owned by public facility corporations. The bill introduces definitions for "Rent" and "Rent reduction," clarifying the calculation of rent for income-restricted units, and modifies the definition of "Sponsor" by removing school districts from the list of entities eligible to create a corporation under this chapter. It outlines specific conditions for exemptions related to multifamily developments, including the requirement to reserve a percentage of units for lower and moderate-income housing. Additionally, the bill mandates annual compliance audits for public facility users claiming tax exemptions and establishes consequences for noncompliance, including potential loss of tax exemptions.

The bill further clarifies compliance and audit requirements, particularly regarding notice requirements in Sections 303.0421 and 303.0425, stating that developments may still be deemed compliant if the required notice is not received within 60 days. It introduces a one-time exemption application requirement to the Texas Department of Housing and Community Affairs for certain developments to qualify for beneficial tax treatment. The timeline for audit reports is revised, requiring the initial report by June 1 of the year following the first anniversary of a development's acquisition or occupancy, with subsequent reports due annually by the same date. The new provisions apply to all multifamily residential developments, ensuring uniform enforcement of updated compliance and exemption requirements. The act will take effect immediately upon a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

Statutes affected:
Introduced: Local Government Code 303.003, Local Government Code 303.0421, Local Government Code 303.0426 (Local Government Code 303)