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Texas

Texas state law (TEX. GOV’T CODE § 2306.185) provides that any owner of a housing project intending to sell, lease, prepay a loan financed with HUD subsidies, opt-out of the Section 8 program, or otherwise dispose of the property must give the state housing department notice one year in advance of any proposed sale or other action that would terminate the subsidy. The statute simply gives the state time to “attempt to locate a buyer who will conform to the development restrictions.” Thus, while the law has a broad trigger for its notice requirement, it creates no direct purchase right.

A separate provision of state law (TEX. GOV’T CODE § 2306.805) establishes a housing preservation incentives program to provide loans, loan guarantees, and grants for the acquisition and rehabilitation of certain affordable multifamily housing developments.

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