Key Takeaways
- Housing finance corporations in Texas are subject to significant new requirements for their ownership of affordable housing properties.
- Changes in qualifications for property tax exemptions will affect certain affordable housing properties already owned by housing finance corporations, along with new projects going forward.
- House Bill 21 leaves open a variety of questions that may need to be addressed in the upcoming rulemaking process.
Overview
In its 89th Regular Session, the Texas Legislature enacted House Bill 21 (HB 21), introducing significant reforms to the way housing finance corporations (HFCs) own and operate multifamily affordable housing developments. Signed into law by Governor Greg Abbott on May 28, 2025, HB 21 imposes new limitations on the geographic authority of HFCs, tightens affordability requirements and introduces compliance oversight by the Texas Department of Housing and Community Affairs (TDHCA).
The summary reflects our current analysis of HB 21 and highlights areas that may require further interpretation. Where applicable, we’ve included questions and recommendations to help navigate the evolving regulatory landscape. Stakeholders are encouraged to engage in the TDHCA rulemaking process, as forthcoming HFC Rules may shape the practical implementation of these legislative changes.
An Analysis of House Bill 21
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