By: Cook S.B. No. 2260 (In the Senate - Filed March 11, 2025; March 25, 2025, read first time and referred to Committee on Local Government; May 8, 2025, reported adversely, with favorable Committee Substitute by the following vote: Yeas 7, Nays 0; May 8, 2025, sent to printer.) COMMITTEE SUBSTITUTE FOR S.B. No. 2260 By: West A BILL TO BE ENTITLED AN ACT relating to the disclosure and posting of certain information regarding multifamily residential developments that receive certain tax exemptions and the eligibility of those developments to receive those exemptions. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 2306, Government Code, is amended by adding Section 2306.009 to read as follows: Sec. 2306.009. REQUIRED DISCLOSURES BY CERTAIN DEVELOPMENTS RECEIVING CERTAIN TAX EXEMPTIONS; POSTING OF CERTAIN DEVELOPMENT INFORMATION. (a) The disclosure requirements under this section apply only to a multifamily residential development that receives a tax exemption in accordance with Section 303.042, 392.005, or 394.905, Local Government Code. (b) The department by rule shall require each developer of a multifamily residential development to which this section applies to submit, not later than April 30 of each year by certified mail, to the appraisal district for the county in which the development is located an annual disclosure on a form prescribed by the department. (c) The disclosure required by Subsection (b) must include: (1) if available, the name of the development; (2) the address of the development; (3) the name of each principal owner of the development and the ownership shares each owner holds; (4) the total number of residential units at the development; (5) if available, the appraised value of the development based on the most recent appraisal conducted by the appraisal district for the county in which the development is located; (6) if available, the total dollar amount of the tax exemption the development received for the preceding tax year based on the appraised value of the development described by Subdivision (4) multiplied by the rate for each tax from which the development is exempt; (7) affordability information on the residential units at the development, including: (A) the number of units that are income restricted, including a breakdown of: (i) the income restriction levels of those units; and (ii) the number of bedrooms and bathrooms in those units; (B) the average difference between the rent charged for the units that are income restricted and the rent charged for other units at the development; and (C) the number of tenants who participate in the housing choice voucher program under Section 8, United States Housing Act of 1937 (42 U.S.C. Section 1437f); and (8) any other information the department determines necessary. (d) An appraisal district shall provide notice to the department of each developer of a development to which this section applies who does not submit the disclosure under Subsection (b) by the date required under that subsection. (e) An appraisal district shall: (1) review each disclosure submitted to the district under Subsection (b) to verify the accuracy of the contents of the disclosure; and (2) not later than September 1 of each year, submit to the department the reviewed disclosures. (f) Not later than the 60th day after the date the department receives the disclosures under Subsection (e), the department shall compile into data sets the information: (1) from the disclosures submitted to the department under Subsection (e); and (2) described by Subsection (c) that is collected by the department for developments that: (A) receive financial assistance administered under Chapter 1372; or (B) are allocated housing tax credits under Subchapter DD. (g) The department shall collaborate with the Department of Information Resources to post the data sets compiled by the department under Subsection (f) on the Texas Open Data Portal established by the Department of Information Resources under Section 2054.070. The department shall ensure the data sets posted on the portal do not include information that is confidential or protected from disclosure under federal or state law. (h) Not later than December 1 of each year, the department shall prepare and submit to the legislature a written report that includes a summary of the information contained in the data sets the department compiles under Subsection (f). The department shall ensure a report under this subsection does not disclose personal identifying information of a tenant residing in a development included in the report. SECTION 2. Section 303.0421, Local Government Code, is amended by adding Subsection (b-1) to read as follows: (b-1) Notwithstanding this section and Section 303.042(c), an exemption under Section 303.042(c) for a multifamily residential development applies only if the development has timely submitted the disclosure required by Section 2306.009, Government Code, for the preceding tax year. SECTION 3. Section 392.005(c), Local Government Code, is amended to read as follows: (c) An exemption under this section for a multifamily residential development which is owned by a housing development corporation or a similar entity created by a housing authority, other than a public facility corporation created by a housing authority under Chapter 303, and which does not have at least 20 percent of its residential units reserved for public housing units, applies only if: (1) the authority holds a public hearing, at a regular meeting of the authority's governing body, to approve the development; [and] (2) at least 50 percent of the units in the multifamily residential development are reserved for occupancy by individuals and families earning less than 80 percent of the area median income, adjusted for family size; and (3) the development has timely submitted the disclosure required by Section 2306.009, Government Code, for the preceding tax year. SECTION 4. Section 394.905, Local Government Code, is amended to read as follows: Sec. 394.905. EXEMPTION FROM TAXATION. (a) The housing finance corporation, all property owned by it, the income from the property, all bonds issued by it, the income from the bonds, and the transfer of the bonds are exempt, as public property used for public purposes, from license fees, recording fees, and all other taxes imposed by this state or any political subdivision of this state. The corporation is exempt from the franchise tax imposed by Chapter 171, Tax Code, only if the corporation is exempted by that chapter. (b) Notwithstanding Subsection (a), a multifamily residential development owned by a housing finance corporation is exempt from taxes imposed by this state or a political subdivision of this state only if the development has timely submitted the disclosure required by Section 2306.009, Government Code, for the preceding tax year. SECTION 5. (a) The developer of a multifamily residential development to which Section 2306.009, Government Code, as added by this Act, applies shall submit the first disclosure required by Subsection (b) of that section not later than April 30, 2026. (b) Notwithstanding Section 2306.009(h), Government Code, as added by this Act, the Texas Department of Housing and Community Affairs is not required to submit the first report under that subsection until December 1, 2026. SECTION 6. Sections 303.0421, 392.005, and 394.905, Local Government Code, as amended by this Act, apply only to a tax for a tax year that begins on or after the effective date of this Act. SECTION 7. This Act takes effect September 1, 2025. * * * * *