H.B. No. 1585 amends various sections of the Local Government Code to clarify the powers and limitations of housing finance corporations in Texas, particularly regarding the location and taxation of residential developments. The bill allows housing finance corporations to delegate authority to the Texas Department of Housing and Community Affairs for financing and managing residential developments. It specifies that residential developments must be located within the boundaries of the local government that formed the housing finance corporation, and it permits local governments to transfer residential development sites to these corporations without voter approval.

Additionally, the bill introduces tax exemptions for housing finance corporations and their properties, stating that such developments are exempt from state and local taxes only if they are located within the boundaries of the local government that established the corporation. This exemption applies to newly built residential developments for which a certificate of occupancy is issued after the bill's effective date. The bill aims to streamline the operations of housing finance corporations while ensuring that tax benefits are tied to local governance.

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)
House Committee Report: Local Government Code 394.032, Local Government Code 394.039, Local Government Code 394.903, Local Government Code 394.905 (Local Government Code 394)
Engrossed: Local Government Code 394.032, Local Government Code 394.039, Local Government Code 394.903, Local Government Code 394.905 (Local Government Code 394)