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Wednesday, April 23, 2025

Key details on HB 21 presented by Gary Gates in Texas House

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Gary Gates, Texas State Representative from the 28th district | Twitter Website

Gary Gates, Texas State Representative from the 28th district | Twitter Website

Rep. Gary Gates introduced HB 21, a bill on City Government, County Government, Housing, Property Interests, and Taxation, to the Texas House on Tuesday, March 18 during the 89(R) legislative session, according to the Texas Legislature website.

More specifically, the official text was summarized by the state legislature as ’’Relating to housing finance corporations; authorizing a fee’’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

This bill amends various sections of the Local Government Code related to housing finance corporations in Texas. It establishes that such corporations must comply with open meetings and open records laws, limits the areas where they can operate, and specifies that any expansion beyond these areas requires approval from local governing bodies. The bill outlines conditions for obtaining property-based tax exemptions, such as reserving certain units for lower and moderate income housing, and mandates an underwriting assessment and public posting of compliance for new developments. Additionally, annual compliance audits are required, with penalties for noncompliance, and housing finance corporations cannot refuse tenants based on participation in the housing choice voucher program. The bill includes provisions for tenant protections and audit requirements. It also sets conditions for property and income tax exemptions related to bonds and transactions while repealing certain previous legal requirements. The effective date is upon receiving a two-thirds vote in each house or, failing that, Sept. 1, 2025.

Gary Gates, chair of the House Committee on Land & Resource Management and member of the House Committee on Energy Resources, proposed another three bills during the 89(R) legislative session.

Gary Gates is currently serving in the Texas State House, representing the state's 28th House district. He replaced previous state representative John Zerwas in 2020.

Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.

You can read more about the bills and other measures here.

Other Recent Bills Introduced by Rep. Gary Gates in Texas House During 89(R) Legislative Session

Bill NumberDate IntroducedShort Description
HB 159503/17/2025Relating to public housing authorities; authorizing a fee
HB 159003/17/2025Relating to multifamily residential developments owned by public facility corporations
HB 122503/10/2025Relating to the establishment of a bundled-pricing program to reduce certain health care costs in the state employees group benefits program

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