2025S0121-1 02/20/25     By: Gates H.B. No. 5408     A BILL TO BE ENTITLED   AN ACT   relating to General Land Office and Texas Department of Housing and   Community Affairs reviews of real property owned by the state.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 31.156, Natural Resources Code, is   amended by amending Subsection (c) and adding Subsections (f), (g),   and (h) to read as follows:          (c)  The division's recommendations must include an analysis   of the highest and best use to which the real property may legally   be placed and shall also include alternative uses of the real   property addressing potential for commercial, residential, or   agricultural lease of the real property or any other real estate   transaction or use that the division may deem to be in the best   interest of the state.          (f)  In considering alternative uses of the real property for   residential lease in Subsection (c), the division shall solicit a   basic assessment from the Texas Department of Housing and Community   Affairs concerning whether all or portions of the real property are   suitable to lease or otherwise develop for affordable housing.          (g)  The Texas Department of Housing and Community Affairs   shall submit the basic assessment under Subsection (f) not later   than 60 days after receiving a solicitation from the division.           (h)  The division shall include the basic assessment   submitted under Subsection (g) in the report required by Section   31.157.          SECTION 2.  Section 31.1571, Natural Resources Code, is   amended by amending Subsections (b) and (c) and adding Subsections   (b-1) and (b-2) to read as follows:          (b)  Before the commissioner recommends a real estate   transaction to the governor under this section, the commissioner   shall solicit a basic assessment from the Texas Department of   Housing and Community Affairs concerning whether all or portions of   the real property are suitable to lease or otherwise develop for   affordable housing.          (b-1)  The Texas Department of Housing and Community Affairs   shall submit the basic assessment under Subsection (b) not later   than 60 days after receiving a solicitation from the commissioner.          (b-2)  If the commissioner makes a report under Subsection   (a), the commissioner shall include the basic assessment submitted   under Subsection (b-1) in the report.          (c)  After the commissioner recommends a real estate   transaction to the governor under this section, the commissioner   shall notify the state agency that owns or controls the real   property [and the Texas Department of Housing and Community   Affairs]. Not later than the 60th day after the date the written   recommendation is received, the state agency [and the Texas   Department of Housing and Community Affairs] may file with the   governor their comments on or objections to the recommendation.          [(c)  If the commissioner recommends a real estate   transaction to the governor involving real property identified as   not used or substantially underused and the division's analysis of   the highest and best use for the real property is determined to be   residential, the Texas Department of Housing and Community Affairs   shall evaluate the property and identify any property suitable for   affordable housing. The Texas Department of Housing and Community   Affairs shall submit comments concerning any property suitable for   affordable housing and any documents supporting the comments to the   governor not later than the 60th day after the date it receives the   report prepared under this section.]          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.