HB 4306

relating to multifamily residential developments owned by public
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
SECTION 2.  Section 303.021(d), Local Government Code, is
(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 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, the
(A)  is restricted to occupancy primarily by
(B)  is constructed on real property that was
previously used or initially intended to be used by the district as
a school campus or for administrative functions performed by the
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 for which a contract for financing, ownership, 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 a
contract for financing, ownership, or operation was entered into
before the effective date of this Act is governed by the law in
effect on the date the contract was entered into, and the former law
is continued in effect for that purpose.
SECTION 4.  This Act takes effect September 1, 2025.