Relating to the formation of a municipal housing authority asset commission by certain municipal housing authorities.

89(R) SB 2605 - Engrossed version - Bill Text

By: Blanco

S.B. No. 2605

A BILL TO BE ENTITLED

AN ACT

relating to the formation of a municipal housing authority asset

commission by certain municipal housing authorities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 392, Local Government Code, is amended

by adding Subchapter G to read as follows:

SUBCHAPTER G. ASSET COMMISSION OF CERTAIN MUNICIPAL HOUSING

AUTHORITIES

Sec.

392.151.

DEFINITION. In this subchapter, "asset

commission" means a municipal housing authority asset commission

formed by a municipal housing authority under Section 392.153.

Sec.

392.152.

APPLICABILITY. This subchapter applies only

to a municipal housing authority operating in:

(1)

a county with a population of 800,000 or more that

is located on the international border; and

(2)

a municipality with a population of 600,000 or

more that is located in a county described by Subdivision (1).

Sec.

392.153.

FORMATION OF ASSET COMMISSION. The

commissioners of a municipal housing authority may adopt a

resolution to create an asset commission.

Sec.

392.154.

ASSET COMMISSION MEMBERSHIP; TERMS. (a) An

asset commission is composed of five members who serve staggered

terms of five years and are appointed by a majority of the

commissioners of the municipal housing authority that formed the

asset commission. An asset commission member must:

(1)

be a licensed real estate broker with at least five

years of continuous experience in the field of multifamily housing;

(2)

be a certified public accountant with at least

five years of continuous experience in the field of multifamily

housing;

(3)

be a licensed attorney who is certified by the

Texas Board of Legal Specialization in residential real estate law

or commercial real estate law;

(4)

have at least five years of continuous experience

in developing, financing, constructing, operating, or managing a

multifamily housing portfolio of no fewer than 3,000 units; or

(5)

be a current or former chief executive officer,

chief financial officer, or executive director of a public housing

authority that owns or manages 5,000 or more units of housing,

excluding housing units paid for with vouchers under the federal

Section 8 Housing Choice Voucher Program.

(b)

In addition to the qualifications required by

Subsection (a), at least one of the asset commission members must

have at least 10 years of experience in a field related to the

management or operation of apartments funded by low income-housing

tax credits.

(c)

A person may not serve as an asset commission member if

the person is:

(1)

a mayor, a county judge, or any other elected

official of a governmental entity within the area of operation

described by Section 392.014 for the municipal housing authority

that formed the asset commission;

(2)

an employee of a town, municipality, county, or

unit of local government within the area of operation described by

Section 392.014 for the municipal housing authority that formed the

asset commission;

(3)

a commissioner or employee of the municipal

housing authority that formed the asset commission;

(4)

a person who was employed within the preceding two

years by the municipal housing authority that formed the asset

commission; or

(5)

a person who has or has had within the preceding

two years a direct or indirect contract or a personal or financial

interest in a contract with the municipal housing authority that

formed the asset commission.

(d)

Notwithstanding the provisions of Subsection (a)

establishing the terms of an asset commission member, in appointing

the initial members to an asset commission under this section, the

commissioners of a municipal housing authority shall designate:

(1) two members to serve a three-year term;

(2) two members to serve a four-year term; and

(3) one member to serve a five-year term.

Sec.

392.155.

CONFLICTS OF INTEREST. (a) An asset

commission member may not:

(1)

have dealings for pecuniary gain with the

municipal housing authority that formed the asset commission or a

public facility corporation sponsored by the authority; or

(2)

own, acquire, or control a direct or indirect

interest in any item described by Sections 392.042(b)(1)-(5).

(b)

If an asset commission member manages, owns, acquires,

or controls a direct or indirect interest in an item prohibited by

Subsection (a) or otherwise has any other dealings for pecuniary

gain with the municipal housing authority, the member shall

immediately disclose the interest to the authority and asset

commission in writing. The disclosure shall be entered in the

minutes of the asset commission for the meeting at which the

disclosure was made.

(c)

An asset commission member's failure to make a required

disclosure under Subsection (b) constitutes misconduct of office.

Sec.

392.156.

REMOVAL OF ASSET COMMISSION MEMBER. An asset

commission member may be removed by a majority of the commissioners

of the municipal housing authority that formed the asset commission

based on the same criteria and following the same processes for the

removal of a commissioner described by Section 392.041.

Sec.

392.157.

ASSET COMMISSION MEMBER COMPENSATION AND

REIMBURSEMENT. (a) An asset commission member is entitled to:

(1)

reasonable compensation for the member's services

on the asset commission; and

(2)

reimbursement for necessary expenses incurred by

the member in carrying out duties related to the member's services

on the asset commission, including travel expenses.

(b)

The municipal housing authority that forms an asset

commission shall pay the compensation and reimbursement described

by Subsection (a).

Sec.

392.158.

POWERS AND DUTIES. (a) An asset commission

must approve by majority vote the following actions before the

municipal housing authority that formed the asset commission may

perform or approve the action:

(1)

the acquisition, sale, transfer, conveyance, or

disposition of any property, building, partnership interest,

membership interest in a limited liability company, ownership

interest in any entity, or any other asset of the authority or a

public facility corporation sponsored by the authority valued in

excess of $100,000; and

(2)

the trading, financing, refinancing, or issuance

of a bond secured by or associated with any property, building,

partnership interest, membership interest in a limited liability

company, ownership interest in any entity, or any other asset of the

authority or a public facility corporation sponsored by the

authority.

(b)

An asset commission may directly or indirectly hold or

own an interest in an asset described by Subsection (a) and any

accompanying cash flow or benefit associated with that interest

only if the asset commission holds the interest in trust for the

sole and exclusive benefit of the municipal housing authority that

formed the asset commission.

(c)

An asset commission may delegate the powers and duties

under this section to an agent or employee of the asset commission

or the municipal housing authority that formed the asset

commission, as determined appropriate by the asset commission.

Sec.

392.159.

OFFICERS AND EMPLOYEES OF ASSET COMMISSION.

The secretary and executive director employed under Section 392.038

for a municipal housing authority that forms an asset commission

shall serve as the secretary and executive director of the asset

commission.

Sec.

392.160.

MEETINGS OF ASSET COMMISSION. Meetings of an

asset commission are subject to Chapter 551, Government Code.

SECTION 2. This Act takes effect September 1, 2025.