TX HB1585

Requires residential developments owned by housing finance corporations to be located within the boundaries of the local government that formed the corporation, eliminating the previous ability to locate developments outside the jurisdiction

Removes the authority for housing finance corporations to delegate to the Texas Department of Housing and Community Affairs the power to act on their behalf for properties located outside the corporation's jurisdiction

Limits tax exemptions for residential developments owned by housing finance corporations, making them exempt from state and local taxes only if located within the boundaries of the forming local government

Applies the new tax exemption restrictions only to newly built developments receiving certificates of occupancy on or after the effective date, and to other residential developments acquired on or after the effective date

Takes effect immediately with a two-thirds legislative vote, otherwise September 1, 2025