The bill amends the Local Government Code to clarify the operational areas of housing finance corporations in Texas. It introduces a new subsection (c) to Section 394.031, which specifies that a housing finance corporation's powers are limited to the jurisdictional boundaries of the municipality or the unincorporated areas of the county that sponsors it. For corporations sponsored by multiple local governments, the area of operation includes the jurisdictional boundaries of each municipal sponsor and the unincorporated areas of each county sponsor. Additionally, the bill modifies existing sections to ensure that the powers exercised by these corporations align with the newly defined operational areas.

Furthermore, the bill updates provisions regarding the exemption from taxes and fees for housing finance corporations, stating that such exemptions apply only if the property is located within the authorized operational area. It also clarifies that the new regulations will apply only to actions taken after the bill's effective date, ensuring that any powers exercised before this date will still be governed by the previous law. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

Statutes affected:
Introduced: 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)