House Bill No. 1590 amends the Local Government Code to introduce new definitions and requirements for multifamily residential developments owned by public facility corporations. It defines "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. The bill establishes that exemptions for multifamily developments are contingent upon reserving a percentage of units for lower and moderate-income housing, thereby promoting affordable housing initiatives.

Additionally, the bill outlines compliance and audit requirements for these developments, mandating that they reserve a minimum percentage of units for lower and moderate-income tenants and submit annual audit reports to ensure adherence to the new regulations. It specifies that developments must submit a one-time exemption application to qualify for tax exemptions and sets a timeline for audit reports, with the initial audit due by June 1 of the year following acquisition or occupancy. The bill ensures that these updated compliance and exemption requirements apply uniformly to all multifamily residential developments, regardless of their approval date, and will take effect immediately upon a two-thirds majority vote 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)