TX HB3534

Requires all multifamily residential developments claiming property tax exemptions under public facility corporations to submit annual compliance audits to the Texas Department of Housing and Community Affairs and local appraisal districts, with audit reports due by June 1 each year

Exempts certain developments from audit requirements, including those with at least 20% public housing units, participants in the HUD Rental Housing Assistance Demonstration program, or recipients of financial assistance under Chapter 2306 of the Government Code

Creates a new one-time exemption application requirement on a comptroller-promulgated form that must be submitted to TDHCA and relevant appraisal districts before a development can receive the property tax exemption

Extends notice period from 45 days to 60 days for the department to notify public facility users of noncompliance findings after receiving audit reports, and clarifies compliance is presumed if required notices are not provided within specified timeframes

Applies retroactively to all multifamily residential developments claiming exemptions regardless of when they were approved or acquired, and takes effect immediately with two-thirds legislative vote or September 1, 2025