TX SB2766

Redefines "persons of low income" as individuals or families earning less than 60% of area median income (previously determined by each authority) and adds new definition for "persons of moderate income" at less than 80% of area median income, using HUD standards

Requires tax exemptions for multifamily developments owned by housing development corporations to be approved by the governing body of each taxing unit where the development is located, with at least 10% of units reserved for those earning under 60% AMI and 40% for those earning under 80% AMI

Mandates that acquired occupied multifamily developments spend at least 15% of acquisition cost on rehabilitation within three years, or reserve at least 25% of units each for low-income and moderate-income housing

Establishes new tenant protections including prohibitions on refusing housing choice voucher participants, limits on non-renewal of leases to specific violations, and anti-retaliation provisions for tenant organization participation

Requires annual compliance audits by independent auditors submitted to the Texas Department of Housing and Community Affairs and local appraisal districts, with noncompliance resulting in loss of property-based tax exemptions after a 60-day cure period