SB2605 - Relating to the formation of a municipal housing authority asset commission by certain municipal housing authorities.

      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.