TX SB867

Restricts housing finance corporations to issuing bonds only for residential developments located within the boundaries of the local government that formed the corporation, eliminating their ability to finance projects outside their jurisdiction

Requires at least 10% of units in multifamily developments be reserved for households earning ≤60% of area median income and 40% for those earning ≤80% AMI to qualify for ad valorem tax exemptions

Mandates that housing finance corporations and developments accept housing choice voucher (Section 8) tenants, prohibiting discrimination based on voucher participation and limiting income requirements to 250% of the tenant's share of rent

Establishes annual compliance audits submitted to the Texas Department of Housing and Community Affairs, with noncompliance resulting in loss of tax exemption after 60 days to cure violations

Applies open meetings (Chapter 551) and public records (Chapter 552) requirements to housing finance corporation actions and records, and requires acquired developments to spend 15% of gross cost on rehabilitation unless waived by local government