TX HB2675

Limits housing finance corporations' operating area to their sponsoring local government's boundaries—municipalities can only operate within city limits, counties only in unincorporated areas—unless they obtain approval resolutions from both their sponsors and the governing bodies of any outside areas where they wish to operate

Prohibits lenders and credit unions from making loans to housing finance corporations unless the corporation provides proof of compliance with the new geographic operating restrictions

Requires housing finance corporations that own multifamily developments and claim property tax exemptions to submit annual compliance audits to the Texas Department of Housing and Community Affairs and the local appraisal district, with initial reports due by June 1 following the first anniversary of acquisition or occupancy

Establishes a noncompliance process where corporations receive written notice within 90 days of an audit, have 60 days to resolve issues, and lose their property tax exemption if they fail to correct violations

Conditions property tax and fee exemptions on developments being located within the corporation's authorized operating area or receiving approval from all applicable governing bodies in outside areas; independent auditors cannot conduct more than three consecutive annual audits for the same corporation