Texas § LG.394.031 - EXERCISE OF POWERS

§ LG.394.031. EXERCISE OF POWERS

EXERCISE OF POWERS; AREA OF OPERATION. (a) A housing finance corporation may exercise any powers incidental to or necessary for the performance of the powers prescribed by this subchapter and may exercise other powers necessary or appropriate to carry out the purposes for which the corporation is organized. (b) A housing finance corporation may exercise powers under this chapter by resolution of the board of directors. The resolution takes effect immediately on adoption. (c) Subject to Subsection (d), the area in which a housing finance corporation may own real property for residential development or engage in residential development is limited to: (1) for a housing finance corporation sponsored by a municipality under Section 394.011 , the boundaries of the municipality that sponsored the corporation; (2) for a housing finance corporation sponsored by a county under Section 394.011 , the boundaries of the county that sponsored the corporation; or (3) for a housing finance corporation sponsored by more than one local government under Section 394.012 : (A) the boundaries of each municipal sponsor of the corporation; and (B) the boundaries of each county sponsor of the corporation. (d) A housing finance corporation may own real property for residential development or engage in residential development outside an area described by Subsection (c) only if a resolution or order, as applicable, approving that ownership or development in the outside area is adopted by the governing bodies of: (1) each municipality that contains any part of the outside area in which the corporation proposes to own real property for residential development or engage in residential development; (2) for a residential development or home located in the unincorporated area of a county, each county that contains any part of the outside area in which the corporation proposes to own real property for residential development or engage in residential development; and (3) any housing finance corporation sponsored by a municipality or county described by Subdivision (1) or (2), as applicable. (e) This section does not prohibit or limit a housing finance corporation from owning real property outside an area described by Subsection (c) or (d) if the property is not owned for purposes of residential development. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by: Acts 2025, 89th Leg., R.S., Ch. 208 (H.B. 21 ), Sec. 3, eff. May 28, 2025. Acts 2025, 89th Leg., R.S., Ch. 208 (H.B. 21 ), Sec. 4, eff. May 28, 2025.