TITLE: Relating to multifamily residential developments financed, owned, or operated by public facility corporations.

SUMMARY: Relating to multifamily residential developments financed, owned, or operated by public facility corporations.

FULL TEXT:
AN ACT relating to multifamily residential developments financed, owned, or operated by public facility corporations. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 303.003, Local Government Code, is amended by adding Subdivision (6-a) to read as follows: (6-a) "Multifamily residential development" means any residential development consisting of four or more dwelling units intended for occupancy as rentals, regardless of whether the units are attached or detached. SECTION 2. Section 303.021(d), Local Government Code, is amended to read as follows: (d) A corporation or a sponsor may finance, own, or operate a multifamily residential development only if: (1) the corporation or sponsor complies with all applicable provisions of this chapter; [and] (2) the development is located: (A) inside the area of operation of the sponsor, if the sponsor is a housing authority; or (B) if the sponsor is not a housing authority, inside the boundaries of the sponsor, without regard to whether the sponsor is authorized to own property or provide services outside the boundaries of the sponsor;and (3) for a multifamily residential development financed, owned, or operated by a sponsor that is a school district or a development financed, owned, or operated by a corporation created by such a sponsor: (A) at least 75 percent of the residential units at the development are restricted to occupancy by households with at least one employee of the district; or (B) the development is located on real property that was previously used for at least ten years by the district as a school campus or for administrative functions performed by the district.SECTION 3. Section 303.003(6-a), Local Government Code, as added by this Act, and Section 303.021(d), Local Government Code, as amended by this Act, apply only to a multifamily residential development (1) for which title was acquired by a public facility corporation or the sponsor of a public facility corporation on or after the effective date of this Act or (2) a contract for financing or operation was entered into by a public facility corporation or the sponsor of a public facility corporation on or after the effective date of this Act. A multifamily residential development for which title was acquired or a contract for financing or operation was entered into before the effective date of this Act is governed by the law in effect on the date the title was acquired or the date the contract was entered into, and the former law is continued in effect for that purpose. SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution.