Relating to housing finance corporations and to the location of residential developments owned by those corporations.
HB 1585 restricts where housing finance corporations in Texas can operate. It limits their area of operation based on their sponsoring local government: municipal sponsors must stay within the sponsoring city's boundaries, county sponsors are limited to unincorporated county areas, and multi-sponsor corporations can only operate within all sponsoring cities' boundaries and the unincorporated areas of all sponsoring counties. The bill amends Texas Local Government Code sections to clarify these geographic boundaries for all housing finance corporations. This directly affects housing finance corporations sponsored by cities, counties, or multiple local governments across Texas.
Bill status
passed
3 of 5 stages cleared
Introduction
Mar 2025
Committee Review
May 2025
House Passage
Apr 2025
Senate Passage
Governor
Introduced Mar 17, 2025
Last action May 8, 2025
Maddy AI version diff · 1 comparison
What changed between versions
Introduced
→
Engrossed
·
4 edits
·
Apr 29, 2025
MODERATE
This bill amends the Texas Local Government Code to clarify where housing finance corporations can operate and own property, expand their financial powers, and update tax exemption rules. The changes ensure corporations can act on behalf of the state for housing projects and define when tax exemptions apply based on property location.
Scope change
The bill expands the geographic scope of housing finance corporations by allowing them to own and operate residential developments both inside and outside their sponsoring local government's jurisdiction, while adding specific conditions for tax exemptions.
SCOPE
Added authority for housing finance corporations to delegate state agency staff to handle financing, refinancing, acquisition, and disposal of mortgages and residential developments.
Modified the definition of where housing finance corporations can exercise powers to include both inside and outside their jurisdictional boundaries.
REQUIREMENT
Added new tax exemption rules requiring residential developments to be located within the local government that formed the corporation to qualify for state tax exemptions.
TIMELINE
Modified the effective date provision to allow the bill to take effect immediately with a two-thirds legislative vote, or default to September 1, 2025 if that vote is not achieved.
Floor votes · House Apr 29, 2025
How they voted
131–13
Passed · 1 other
Total votes 145
Apr 29, 2025
D
Democratic59
94% Yea
R
Republican86
87% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
29
Key actions
8
Committee
8
May 8, 2025
Committee
Referred to Local Government
upper
May 8, 2025
Introduced
Read first time
upper
Apr 29, 2025
Introduced
Received from the House
upper
Apr 29, 2025
Lower · Passed
Passed
lower
Apr 28, 2025
Lower · Passed
Passed to engrossment
lower
Mar 31, 2025
Lower · Passed
Committee report sent to Calendars
lower
Mar 31, 2025
Lower · Passed
Committee report distributed
lower
Mar 27, 2025
Lower · Passed
Reported favorably as substituted
lower
Mar 27, 2025
Lower · Passed
Vote reconsidered in committee
lower
Mar 25, 2025
Lower · Passed
Reported favorably w/o amendment(s)
lower
Mar 25, 2025
Lower · Passed
Testimony taken/registration(s) recorded in committee
lower
Mar 17, 2025
Committee
Referred to Intergovernmental Affairs
lower
Mar 17, 2025
Introduced
Read first time
lower
3 primary · 5 co-sponsors
Sponsors
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