TX SB2518

Prohibits special districts and corporations created by special districts from acquiring, purchasing, constructing, financing, owning, or leasing multifamily residential developments located outside the district's boundaries, effective September 1, 2025

Bars corporations created by special districts from granting leasehold or possessory interests in real property outside district boundaries to private entities if such interests would result in ad valorem tax exemptions

Declares any contract, agreement, or action violating these restrictions to be void

Protects existing bondholders and creditors by allowing districts to continue exercising prohibited powers outside boundaries only as necessary to fulfill outstanding debts, bonds, warrants, or other obligations

Takes effect immediately with two-thirds legislative approval, or September 1, 2025 otherwise; prevails over any special laws governing individual special districts