TX HB1590

Removes school districts from the list of entities that can sponsor public facility corporations for multifamily residential developments, limiting sponsors to municipalities, counties, housing authorities, and special districts

Defines "rent" to include all recurring fees required for occupancy (including common area charges) but excludes optional fees like pet fees, storage, or covered parking; defines "rent reduction" as the difference between actual rent charged for income-restricted units and maximum market rent

Requires acquired developments (occupied at acquisition or within 2 years prior) to spend at least 15% of total acquisition cost on rehabilitation within 3 years, with construction beginning within 1 year of acquisition

Establishes that tax exemptions do not apply unless annual rent reductions equal at least 60% of the estimated ad valorem taxes that would otherwise be imposed, with compliance verified through mandatory annual audits submitted to the Texas Department of Housing and Community Affairs

Exempts developments with at least 20% public housing units, those participating in HUD's Rental Housing Assistance Demonstration program, or those receiving financial assistance under Subchapter 2306 of the Government Code from certain rent reduction requirements and audit provisions