By: Bernal H.B. No. 3967       A BILL TO BE ENTITLED   AN ACT   relating to the purchase of or acquisition of single-family   homesteads by certain out-of-state entities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 5, Property Code, is amended by adding   Subchapter J to read as follows:   SUBCHAPTER J. PURCHASE OF OR ACQUISITION OF SINGLE-FAMILY   HOMESTEADS BY CERTAIN OUT-OF-STATE ENTITIES.          Sec. 5.221.  DEFINITIONS. In this subchapter:                (1)  "Business" has the meaning assigned by Section   1.002, Business Organization Code.                (2)  "Corporation" has the meaning assigned by Section   1.002, Business Organization Code.                (3)  "Organization has the meaning assigned by Section   1.002, Business Organization Code.                (4)  "Homestead" means a single-family dwelling for   which an individual claims an exemption under Section 11.13, Tax   Code.                (5)  "Single-family homestead" means:                      (A)  a structure designed for residential use by   one family; or                      (B)  a unit, whose owner owns, directly or through   a nonprofit organization, an undivided interest in the underlying   real estate, including property owned in common with others which   provide a financial contribution toward the ownership of the   property; and                      (C)  claims an exemption under Section 11.13, Tax   Code.                (6)  "Hedge fund" means a pool of money compiled by   investors with the intent to invest in projects in an effort to make   a positive return on investment.                (7)  "Institutional investor" means an entity that   invests on the behalf of others including but not limited to   individuals, organizations, corporations, businesses, or hedge   funds.          Sec. 5.222  PURCHASE OF OR ACQUISITION OF SINGLE-FAMILY   HOMESTEADS BY CERTAIN OUT-OF-STATE ENTITIES PROHIBITED. (a)   Notwithstanding any other law, the following may not purchase or   otherwise acquire title to a single-family homestead in this state:                (1)  a company, business, corporation, hedge fund, or   institutional investor that is:                      (A)  headquartered outside the state;                      (B)  directly or indirectly held or controlled   outside of the state; or                      (C)  owned by or whose majority stock or other   ownership interest is held or controlled outside the state; and                      (D)  not the owner of a homestead within the   state.          (b)  This section does not apply to a nonprofit organization   purchasing or acquiring the title to real property for the purpose   of providing affordable housing.          SECTION 2.  The changes in law made by this Act apply only to   the purchase of or acquisition of a single-family homestead on or   after the effective date of this Act. The purchase of or   acquisition of a single-family homestead before the effective date   of this Act is governed by the law in effect immediately before the   effective date of this Act and that law is continued in effect for   that purpose.          SECTION 3.  This Act takes effect September 1, 2025.