TX SB1454

Removes tax exemptions for multifamily residential developments from districts providing water, sewer, or drainage services unless the housing authority enters a written payment-in-lieu-of-taxation agreement with the district

Eliminates the previous 5-mile extraterritorial jurisdiction for municipal housing authorities, restricting their area of operation to within the territorial boundaries of the municipality only

Requires municipal housing authorities to obtain approval from each governing body of political subdivisions where a project would be located before undertaking housing projects outside municipal boundaries

Applies only to housing projects with contracts entered into on or after the effective date; existing projects remain governed by prior law

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