TX SB1492

Restricts housing finance corporations to operating only within the jurisdictional boundaries of their sponsoring municipality or the unincorporated areas of their sponsoring county, unless they obtain approval resolutions from governing bodies of areas where they wish to operate outside their jurisdiction

Prohibits lenders, credit unions, and other financial institutions from making loans to housing finance corporations unless the corporation provides proof of compliance with the new geographic operation requirements

Requires housing finance corporations that own multifamily residential developments and claim tax exemptions to submit annual compliance audits to the Texas Department of Housing and Community Affairs and the local appraisal district, with audits conducted by independent auditors who cannot serve the same corporation for more than three consecutive years

Establishes that tax and fee exemptions for housing finance corporation property only apply if the property is located within the corporation's authorized operating area or if exemptions are specifically approved by applicable governing bodies outside that area

Creates a noncompliance process where corporations receive written notice of violations, 60 days to resolve issues, and lose their tax exemption if compliance is not achieved, with initial audit reports due by June 1, 2026 for existing developments