The bill amends the Local Government Code to enhance the framework governing housing finance corporations in Texas. It introduces definitions for "low income" and "moderate income," establishing specific income thresholds based on area and statewide median incomes as determined by the U.S. Department of Housing and Urban Development. Additionally, the bill clarifies the operational boundaries for housing finance corporations, stipulating that they may exercise their powers within the jurisdictional limits of their sponsoring municipalities or counties, with provisions for extending operations outside these areas under certain conditions.

Further amendments include the addition of new subsections that outline the powers of housing finance corporations, including the ability to delegate authority to the Texas Department of Housing and Community Affairs for various financial activities. The bill also specifies that housing finance corporations and their properties are exempt from certain taxes and fees, provided they operate within authorized areas. The effective date of the bill is contingent upon receiving a two-thirds vote from both houses of the legislature, or it will take effect on September 1, 2025.

Statutes affected:
Introduced: Local Government Code 394.003, Local Government Code 394.031, Local Government Code 394.032, Local Government Code 394.039, Local Government Code 394.903, Local Government Code 394.905 (Local Government Code 394)