CHAPTER 392. HOUSING AUTHORITIES ESTABLISHED BY MUNICIPALITIES AND COUNTIES

State Codes and Statutes

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LOCAL GOVERNMENT CODE

TITLE 12. PLANNING AND DEVELOPMENT

SUBTITLE C. PLANNING AND DEVELOPMENT PROVISIONS APPLYING TO MORE

THAN ONE TYPE OF LOCAL GOVERNMENT

CHAPTER 392. HOUSING AUTHORITIES ESTABLISHED BY MUNICIPALITIES

AND COUNTIES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 392.001. SHORT TITLE. This chapter may be cited as the

Housing Authorities Law.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.002. DEFINITIONS. In this chapter:

(1) "Authority" or "housing authority" means a public

corporation created under this chapter.

(2) "Bond" means a bond, note, interim certificate, debenture,

or other obligation issued by an authority under this chapter.

(3) "Clerk of the municipality" means the clerk of a

municipality or the officer given the duties customarily imposed

on the clerk.

(4) "Farmers of low income" means persons or families who, at

the time of their admission to occupancy in housing of a housing

authority:

(A) live in unsafe or unsanitary housing;

(B) earn their principal income from operating or working on a

farm; and

three years that is less than the amount determined by the

housing authority to be necessary, in its area of operation, to

obtain, without financial assistance, decent, safe, and sanitary

housing without overcrowding.

(5) "Federal government" includes the United States, the

Department of Housing and Urban Development, and any other agency

or instrumentality, corporate or otherwise, of the United States.

(6) "Housing project" means a work or other undertaking to:

(A) demolish, clear, or remove buildings from a slum area,

including a work or other undertaking to adapt an area for use as

a park, for another recreational or community purpose, or for any

other public purpose;

(B) provide decent, safe, and sanitary urban or rural housing

for persons of low income, including buildings, land, equipment,

facilities, and other real or personal property for necessary,

convenient, or desirable appurtenances, streets, sewers, water

service, and parks, or for other purposes, including site

preparation, gardening, administrative, community, health,

recreational, educational, or welfare purposes;

Paragraphs (A) and (B); or

(D) plan buildings and other improvements, acquire property,

demolish structures, construct, reconstruct, alter, and repair

improvements, and perform other related work.

(7) "Mayor" means the mayor of a municipality or the officer

given the duties customarily imposed on the mayor or executive

head of a municipality.

(8) "Obligee of the authority" or "obligee" includes:

(A) a bondholder;

(B) a trustee of a bondholder;

connection with a housing project;

(D) an assignee of the interest, or part of the interest, of a

lessor demising to the authority any property used in connection

with a housing project; and

(E) the federal government if it is a party to a contract with

the authority.

(9) "Persons of low income" means families or persons who lack

the amount of income that an authority considers necessary to

live, without financial assistance, in decent, safe, and sanitary

housing without overcrowding.

(10) "Real property" means land, including improvements,

fixtures, and other property appurtenant to or used in connection

with the land and means any other estate, interest, or legal or

equitable right in the land, improvement, fixture, or appurtenant

property, including a term for years, a lien of any kind, and any

indebtedness secured by a lien.

(11) "Slum" means an area that is predominated by housing that

is detrimental to safety, health, and morals because of one or

more of the following factors:

(A) dilapidation;

(B) overcrowding;

(D) lack of ventilation, light, or sanitary facilities.

(12) "Credit agreement" means a loan agreement, revolving credit

agreement, agreement establishing a line of credit, letter of

credit, reimbursement agreement, insurance contract, commitment

to purchase bonds, purchase or sale agreement, or commitment or

other contract or agreement authorized and approved by the

governing body of an issuer in connection with the authorization,

issuance, security, exchange, payment, purchase, or redemption of

bonds or interest on bonds or both.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1989, 71st Leg., ch. 677, Sec. 1, eff. Aug. 28,

1989.

Sec. 392.003. LEGISLATIVE FINDINGS. The legislature finds that:

(1) there is a shortage of safe or sanitary housing at rents

that persons of low income can afford that forces persons of low

income to live in unsanitary or unsafe housing and in overcrowded

and congested housing;

(2) these housing conditions are responsible for an increase in

and spread of disease and crime, are a menace to the health,

safety, morals, and welfare of the residents of the state, impair

economic values, and necessitate excessive and disproportionate

expenditures of public funds for crime prevention and punishment,

public health and safety, fire and accident protection, and other

public services and facilities;

(3) the unsafe and unsanitary housing cannot be cleared and the

shortage of safe and sanitary housing for persons of low income

cannot be relieved by private enterprise;

(4) the construction of housing projects for persons of low

income would not be competitive with private enterprise;

(5) the clearance, replanning, and reconstruction of the areas

in which unsanitary or unsafe housing exists and the providing of

safe and sanitary housing for persons of low income are public

uses and purposes and governmental functions of state concern for

which public money may be spent and private property acquired;

(6) it is in the public interest that work on low income housing

projects commence as soon as possible to relieve the unemployment

emergency; and

(7) this chapter is necessary in the public interest.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.004. OPERATION NOT FOR PROFIT. It is the policy of the

state that a housing authority manage and operate its housing

projects in an efficient manner to enable it to set rentals at

the lowest possible rates consistent with providing decent, safe,

and sanitary housing and that a housing authority may not

construct or operate a project for profit or as a source of

revenue to a municipality or county. For this purpose, an

authority shall set rentals at a rate not higher than the rate

necessary, together with other available money, revenue, income,

and receipts, to produce revenue that is sufficient to:

(1) pay the principal and interest as it becomes due on bonds of

the authority;

(2) meet the cost of and provide for maintaining and operating

the projects, including insurance;

(3) pay the administrative expenses of the authority;

(4) create, to the extent determined necessary and advisable by

the authority, a reserve for the bonds and to maintain the

reserve; and

(5) create, to the extent determined necessary and advisable by

the authority, a capital and improvements fund to be used by the

authority to accomplish the public purposes of this chapter.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1989, 71st Leg., ch. 677, Sec. 8, eff. Aug. 28,

1989.

Sec. 392.005. TAX EXEMPTION. (a) The property of an authority

is public property used for essential public and governmental

purposes. The authority and the authority's property are exempt

from all taxes and special assessments of a municipality, a

county, another political subdivision, or the state.

(b) If a municipality, county, or political subdivision

furnishes improvements, services, or facilities for a housing

project, an authority may, in lieu of paying taxes or special

assessments, agree to reimburse in payments to the municipality,

county, or political subdivision an amount not greater than the

estimated cost to the municipality, county, or political

subdivision for the improvements, services, or facilities.

residential development which is owned by (i) a public facility

corporation created by a housing authority under Chapter 303,

(ii) a housing development corporation, or (iii) a similar entity

created by a housing authority and which does not have at least

20 percent of its units reserved for public housing units,

applies only if:

(1) the authority holds a public hearing, at a regular meeting

of the authority's governing body, to approve the development;

and

(2) at least 50 percent of the units in the multifamily

residential development are reserved for occupancy by individuals

and families earning less than 80 percent of the area median

family income.

(d) For the purposes of Subsection (c), a "public housing unit"

is a dwelling unit for which the owner receives a public housing

operating subsidy. It does not include a unit for which payments

are made to the landlord under the federal Section 8 Housing

Choice Voucher Program.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 2001, 77th Leg., ch. 1493, Sec. 2, eff. Aug. 31,

2002.

Sec. 392.006. UNIT OF GOVERNMENT; GOVERNMENTAL FUNCTIONS. For

all purposes, including the application of the Texas Tort Claims

Act (Chapter 101, Civil Practice and Remedies Code), a housing

authority is a unit of government and the functions of a housing

authority are essential governmental functions and not

proprietary functions. Provided, however, a housing authority

shall be subject to all landlord obligations and tenant remedies,

other than a suit for personal injuries, as set forth in any

lease or rental agreement and in Chapters 24, 54, 91, 92, and 301

of the Property Code.

Added by Acts 1989, 71st Leg., ch. 677, Sec. 2, eff. Aug. 28,

1989.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1065, Sec. 1, eff. September 1, 2007.

SUBCHAPTER B. CREATION AND AREA OF OPERATION OF A HOUSING

AUTHORITY

Sec. 392.011. CREATION OF A MUNICIPAL HOUSING AUTHORITY. (a) A

housing authority is created in each municipality in the state.

(b) A municipal housing authority is a public body corporate and

politic.

exercise its powers until the governing body of the municipality

declares by resolution that there is a need for the authority.

(d) The governing body of a municipality may determine on its

own motion if there is a need for an authority.

(e) The governing body of a municipality shall determine if

there is a need for an authority on the filing of a petition

signed by at least 100 qualified voters of the municipality.

(f) The governing body of a municipality shall adopt a

resolution declaring that there is a need for a housing authority

if it finds that there is:

(1) unsanitary or unsafe inhabited housing in the municipality;

(2) a shortage of safe or sanitary housing in the municipality

available to persons of low income at rentals that they can

afford.

(g) In determining whether housing is unsafe or unsanitary, the

governing body may consider the degree of overcrowding, the

percentage of land coverage, the availability to inhabitants of

light, air, space, and access, the size and arrangement of rooms,

the sanitary facilities, and the extent to which conditions in

the housing subject life or property to the danger of fire or

other hazard.

(h) In a proceeding involving the validity or enforcement of, or

relating to, a contract of the authority, proof of the adoption

of a resolution by the governing body that declares that there is

a need for the authority and makes the finding that either or

both of the requirements of Subsection (f) exist is conclusive

evidence of the establishment of the authority and of its

authority to transact business and exercise its powers under this

chapter. A copy of the resolution that is certified by the clerk

of the municipality is admissible in evidence in the proceeding.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.012. CREATION OF A COUNTY HOUSING AUTHORITY. (a) A

housing authority is created in each county in the state.

(b) A county housing authority is a public body corporate and

politic.

exercise its powers until the commissioners court of the county

declares by resolution that there is a need for the authority.

(d) The commissioners court of a county may determine on its own

motion if there is a need for an authority.

(e) The commissioners court of a county shall determine if there

is a need for an authority on the filing of a petition signed by

at least 100 qualified voters of the county.

(f) The commissioners court of a county shall adopt a resolution

declaring that there is a need for a housing authority if it

finds that there is:

(1) unsanitary or unsafe inhabited housing in the county; or

(2) a shortage of safe or sanitary housing in the county

available to persons of low income at rentals that they can

afford.

(g) In determining whether housing is unsafe or unsanitary, the

commissioners court may consider the degree of overcrowding, the

percentage of land coverage, the availability to inhabitants of

light, air, space, and access, the size and arrangement of rooms,

the sanitary facilities, and the extent to which conditions in

the housing subject life or property to the danger of fire or

other hazard.

(h) In a proceeding involving the validity or enforcement of, or

relating to, a contract of the authority, proof of the adoption

of a resolution by the commissioners court that declares that

there is a need for the authority and makes the finding that

either or both of the requirements of Subsection (f) exist is

conclusive evidence of the establishment of the authority and of

its authority to transact business and exercise its powers under

this chapter. A copy of the resolution that is certified by the

county clerk is admissible in evidence in the proceeding.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.013. CREATION OF A REGIONAL HOUSING AUTHORITY. (a) If

the commissioners courts of two or more contiguous counties

declare by resolution that there is a need for a housing

authority to exercise the powers of a regional housing authority

under this chapter in the counties, a regional housing authority

is created for the counties.

(b) A regional housing authority is a public body corporate and

politic.

that there is a need for a regional housing authority only if the

commissioners court finds that:

(1) there is unsanitary or unsafe inhabited housing in the

county or a shortage of safe or sanitary housing in the county

available to persons of low income at rentals that they can

afford; and

(2) a regional housing authority would be a more efficient or

economical administrative unit than a county housing authority to

carry out the purposes of this chapter for the county.

(d) In determining whether housing is unsafe or unsanitary, the

commissioners court shall consider the safety and sanitation of

the housing, the availability to inhabitants of light and air

space, the degree of overcrowding, the size and arrangement of

rooms, and the extent to which conditions in the housing subject

life or property to the danger of fire or other hazard.

(e) If a county housing authority has outstanding obligations,

the commissioners court may not adopt a resolution declaring a

need for a regional housing authority unless:

(1) each obligee of the county housing authority and each party

to a contract, bond, note, or other obligation of the authority

agrees to the substitution of a regional housing authority on the

contract, bond, note, or other obligation; and

(2) the commissioners of the county housing authority adopt a

resolution consenting to the transfer of the rights, contracts,

obligations, and real and personal property of the county housing

authority to a regional housing authority.

(f) Before a resolution authorized by this section may be

adopted, the commissioners court must hold a public hearing.

Before the 10th day before the date of the hearing, the county

clerk shall publish notice of the time, place, and purpose of the

hearing in a newspaper published in the county or, if no

newspaper is published in the county, in a newspaper published in

the state with general circulation in the county. At the hearing,

the commissioners court shall grant an opportunity to be heard to

residents of the county and other interested persons.

(g) In a proceeding involving the validity or enforcement of, or

relating to, a contract of a regional housing authority, proof of

an adoption of a resolution by the commissioners court of each

county in the regional housing authority that declares that there

is a need for the authority and makes the finding that the

requirements of Subsection (c) exist is conclusive evidence that

the regional housing authority is created and established as a

public body corporate and politic that is authorized to transact

business and exercise its powers under this chapter. A copy of

the resolution of a commissioners court that is certified by the

county clerk is admissible in evidence in the proceeding.

(h) When a regional housing authority is created:

(1) the rights, contracts, agreements, obligations, and property

of the county housing authority become those of the regional

housing authority;

(2) the county housing authority shall execute a deed of the

property to the regional housing authority, which shall file the

deed with the county clerk of the county where the real property

is located; and

(3) a person with rights or remedies against the county housing

authority may assert, enforce, and prosecute those rights or

remedies against the regional housing authority.

(i) The vesting of the real property in the regional housing

authority is not contingent on compliance with the provisions of

Subsection (h)(2).

(j) At the time a regional housing authority is created, the

county housing authority in a county for which the regional

housing authority is created ceases to exist except for the

purpose of winding up its affairs and executing the deed of its

real property to the regional housing authority.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.014. AREA OF OPERATION OF A MUNICIPAL HOUSING

AUTHORITY. The area of operation of a municipal housing

authority is the municipality for which the authority is created

and the area that is within five miles of the territorial

boundaries of the municipality and is not within the territorial

boundaries of another municipality.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.015. AREA OF OPERATION OF A COUNTY HOUSING AUTHORITY.

The area of operation of a county housing authority is the county

in which the authority is created excluding the parts of the

county that are within the territorial boundaries of a

municipality.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.016. AREA OF OPERATION OF A REGIONAL HOUSING AUTHORITY.

The area of operation of a regional housing authority is the

counties for which the authority is created excluding the parts

of the counties that are within the territorial boundaries of a

municipality.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.017. OPERATION OF HOUSING AUTHORITY IN OTHER POLITICAL

SUBDIVISIONS. (a) A county housing authority may not undertake

a housing project in a municipality unless a resolution is

adopted by the governing body of the municipality and by the

housing authority authorized to exercise its powers exclusively

in the municipality, if any:

(1) declaring a need for the county housing authority to

exercise its powers in the municipality; and

(2) authorizing a cooperation agreement under Section 392.059.

(b) A municipal housing authority may not undertake a housing

project outside the boundaries of the municipality in which it is

authorized to exercise its powers unless a resolution is adopted

by the governing body of the political subdivision in which the

housing project is to be located and by the housing authority

authorized to exercise its powers exclusively in the political

subdivision, if any:

(1) declaring a need for the municipal housing authority to

exercise its powers in the political subdivision; and

(2) authorizing a cooperation agreement under Section 392.059.

project in an unincorporated area of a county unless a resolution

is adopted by the commissioners court of the county and by the

housing authority authorized to exercise its powers in the

county, if any:

(1) declaring a need for the regional housing authority to

exercise its powers in the county; and

(2) authorizing a cooperation agreement under Section 392.059.

(d) A regional housing authority may not undertake a housing

project in a municipality unless a resolution is adopted by the

governing body of the municipality and by the housing authority

authorized to exercise its powers exclusively in the

municipality, if any:

(1) declaring a need for the regional housing authority to

exercise its powers in the municipality; and

(2) authorizing a cooperation agreement under Section 392.059.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1989, 71st Leg., ch. 677, Sec. 8, eff. Aug. 28,

1989.

Sec. 392.018. EXPANSION OF THE AREA OF OPERATION OF A REGIONAL

HOUSING AUTHORITY. (a) If the commissioners of a regional

housing authority, the commissioners court of each county in the

authority, and the commissioners court of a county outside the

authority each adopt a resolution declaring that there is a need

to include the county that is outside the authority in the area

of operation of the authority, the area of operation of the

authority is increased to include that part of the county not

within the territorial boundaries of a municipality.

(b) The commissioners of the authority, the commissioners court

of each county in the authority, and the commissioners court of

the county outside the authority shall adopt the resolution

required for expansion under Subsection (a) if:

(1) the commissioners court of the county outside the authority

finds that there is unsanitary or unsafe inhabited housing in the

county or a shortage of safe or sanitary housing in the county

available to persons of low income at rentals they can afford;

and

(2) the commissioners of the authority, the commissioners court

of each county in the authority, and the commissioners court of

the county outside the authority find that the regional housing

authority would be a more efficient or economical administrative

unit to carry out the purposes of this chapter if the county

outside the authority is included in the area of operation of the

authority.

commissioners court shall consider the safety and sanitation of

the housing, the availability to inhabitants of light and air

space, the degree of overcrowding, the size and arrangement of

rooms, and the extent to which conditions in the housing subject

life or property to the danger of fire or other hazard.

(d) If the housing authority of the county outside the regional

housing authority has outstanding obligations, the resolutions

required for expansion under Subsection (a) may not be adopted

unless:

(1) each obligee of the county housing authority and each party

to a contract, bond, note, or other obligation of the authority

agrees to the substitution of the regional housing authority on

the contract, bond, note, or other obligation; and

(2) the commissioners of the county housing authority and of the

regional housing authority adopt resolutions consenting to the

transfer of the rights, contracts, obligations, and real and

personal property of the county housing authority to the regional

housing authority.

(e) If an obligee whose agreement is required by Subsection

(d)(1) is unknown, the county housing authority shall publish a

notice in a newspaper of general national circulation that

states:

(1) the name of the county housing authority;

(2) the name of the regional housing authority;

(3) that the county and regional housing authorities propose

that the regional housing authority be substituted for the county

housing authority on the contracts, bonds, notes, and other

obligations of the county housing authority and that the county

housing authority be terminated; and

(4) an address where objections to the substitution may be sent.

(f) The failure to receive an objection to the substitution of

the regional housing authority on the obligations of the county

housing authority on or before the 30th day after the date of the

publication of the notice is equivalent to the unknown obligee's

consent to the substitution.

(g) Before a resolution may be adopted under this section by the

commissioners court, the court must hold a public hearing. Before

the 10th day before the date of the hearing, the county clerk

shall publish notice of the time, place, and purpose of the

hearing in a newspaper published in the county or, if no

newspaper is published in the county, in a newspaper published in

the state with general circulation in the county. At the hearing,

the commissioners court shall grant an opportunity to be heard to

residents of the county and other interested persons.

(h) When all resolutions required by Subsections (a) and (d)(2)

are adopted:

(1) the county housing authority of the county added to the area

of operation of the regional housing authority ceases to exist

except to wind up its affairs and to execute the deed to the

regional housing authority as required by Subdivision (3);

(2) the rights, contracts, agreements, obligations, and property

of the county housing authority become those of the regional

housing authority;

(3) the county housing authority shall execute a deed of the

property to the regional housing authority, which shall file the

deed with the county clerk of the county where the property is

located; and

(4) a person with rights and remedies against the county housing

authority may assert, enforce, and prosecute those rights and

remedies against the regional housing authority.

(i) The vesting of the real property is not contingent on

compliance with Subsection (h)(3).

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.019. EFFECT OF COOPERATION AGREEMENT ON AREA OF

OPERATION OF HOUSING AUTHORITY. Regardless of Sections 392.015

and 392.016, the area of operation of a municipal housing

authority, a county housing authority, or a regional housing

authority may extend to and include another municipality, county,

or other political subdivision of this state, under the terms of

a cooperation agreement made under Section 392.059.

Added by Acts 1989, 71st Leg., ch. 677, Sec. 8, eff. Aug. 28,

1989.

SUBCHAPTER C. COMMISSIONERS AND EMPLOYEES

Sec. 392.031. APPOINTMENT OF COMMISSIONERS OF A MUNICIPAL

HOUSING AUTHORITY. (a) Each municipal housing authority shall

be governed by five, seven, nine, or 11 commissioners. The

presiding officer of the governing body of a municipality shall

appoint five, seven, nine, or 11 persons to serve as

commissioners of the authority. An appointed commissioner of the

authority may not be an officer or employee of the municipality.

Appointments made under this section must comply with the

requirements of Section 392.0331, if applicable.

(b) A commissioner may not be an officer or employee of the

municipality. A commissioner may be a tenant of a public project

over which the housing authority has jurisdiction.

filed with the clerk of the municipality. The certificate is

conclusive evidence of the proper appointment of the

commissioner.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1991, 72nd Leg., ch. 888, Sec. 1, eff. Aug. 26,

1991; Acts 1993, 73rd Leg., ch. 1009, Sec. 1, eff. Sept. 1, 1993;

Acts 1999, 76th Leg., ch. 436, Sec. 1, eff. Sept. 1, 1999.

Sec. 392.032. APPOINTMENT OF COMMISSIONERS OF A COUNTY HOUSING

AUTHORITY. (a) Each county housing authority shall be governed

by five commissioners. The commissioners court shall appoint five

persons to serve as commissioners of the authority. An appointed

commissioner of the authority may not be an officer or employee

of the county. Appointments made under this section must comply

with the requirements of Section 392.0331, if applicable.

(b) A commissioner of the authority may not be an officer or

employee of the county.

filed with the county clerk. The certificate is conclusive

evidence of the proper appointment of the commissioner.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1993, 73rd Leg., ch. 1009, Sec. 2, eff. Sept. 1,

1993.

Sec. 392.033. APPOINTMENT OF COMMISSIONERS OF A REGIONAL HOUSING

AUTHORITY. (a) The commissioners court of each county in a

regional housing authority shall appoint a person to serve as a

commissioner of the authority. Subsequently, the commissioners

court of each county shall appoint successors to the commissioner

of the authority appointed by that commissioners court. An

appointed commissioner of the authority may not be an officer or

employee of the county.

(b) If the area of operation of an authority is increased to

include another county, the commissioners court of that county

shall appoint a person to serve as a commissioner of the

authority and, subsequently, the successors to that commissioner.

commissioners of the authority appointed by the commissioners

courts shall appoint an additional commissioner to serve as

commissioner of the authority. Subsequently, the commissioners of

the authority appointed by the commissioners courts shall appoint

a person to succeed the additional commissioner if the

successor's term of office begins during their term of office. If

the area of operation of the authority is increased to more than

two counties, a successor to the additional commissioner is not

appointed.

(d) If the housing authority contains only one county, the

commissioners court of that county shall appoint three persons

instead of one person to serve as commissioners of the authority.

Subsequently, the commissioners court of the county shall appoint

successors to the commissioners of the authority appointed by

that commissioners court.

(e) A certificate of the appointment of a commissioner appointed

by a commissioners court shall be filed with the county clerk.

The certificate is conclusive evidence of the proper appointment

of the commissioner.

(f) A certificate of the appointment of an additional

commissioner by the commissioners of an authority composed of

only two counties shall be filed with the records of the

authority. The certificate is conclusive evidence of the proper

appointment of the commissioner.

(g) Appointments made under this section must comply with the

requirements of Section 392.0331, if applicable.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1993, 73rd Leg., ch. 1009, Sec. 3, eff. Sept. 1,

1993.

Sec. 392.0331. APPOINTMENT OF TENANT REPRESENTATIVE AS

COMMISSIONER OF MUNICIPAL, COUNTY, OR REGIONAL HOUSING AUTHORITY.

(a) This section applies only to:

(1) a municipality; or

(2) a county that has a county housing authority or is a member

of regional housing authority and the total number of units in

the authority is more than 750.

(b) In appointing commissioners under Section 392.031, a

municipality with a municipal housing authority composed of five

commissioners shall appoint at least one commissioner to the

authority who is a tenant of a public housing project over which

the authority has jurisdiction. In appointing commissioners under

Section 392.031, a municipality with a municipal housing

authority composed of seven or more commissioners shall appoint

at least two commissioners to the authority who are tenants of a

public housing project over which the authority has jurisdiction.

shall appoint at least one commissioner to a county housing

authority who is a tenant of a public housing project over which

the county housing authority has jurisdiction.

(d) In appointing commissioners under Section 392.033, a county

or counties comprising a regional housing authority shall appoint

at least one commissioner to a regional housing authority who is

a tenant of a public housing project over which the regional

housing authority has jurisdiction. If more than one county

comprises a regional housing authority, the counties shall agree

to a method for appointing the tenant member to the regional

housing authority.

(e) A commissioner appointed under this section may not be an

officer or employee of the municipality or county that appoints

the commissioner.

(f) A commissioner appointed under this section may not serve

more than two consecutive two-year terms.

(g) A commissioner appointed under this section may not

participate:

(1) in any vote or discussion concerning the termination of the

commissioner's occupancy rights in public housing or the rights

of any person related in the first degree by consanguinity to the

commissioner; or

(2) in a grievance or administrative hearing in which the

commissioner or a person related in the first degree by

consanguinity to the commissioner is a party.

(h) If a commissioner appointed under this section ceases to

reside in a housing unit operated by the public housing authority

during the commissioner's term, a majority of the other

commissioners shall decide whether to request that a new

commissioner be appointed. A majority of the commissioners may

decide to allow the commissioner to serve the remaining portion

of the commissioner's term.

(i) If a commissioner appointed under this section fails to

attend three consecutive regularly called meetings of the housing

authority commissioners during the commissioner's term, a

majority of the commissioners shall decide whether to declare the

position vacant and request that a new commissioner be appointed.

A majority of the commissioners may decide to allow the

commissioner to serve the remaining portion of the commissioner's

term.

Added by Acts 1993, 73rd Leg., ch. 1009, Sec. 4, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 834, Sec. 1, eff. Aug.

28, 1995; Acts 1999, 76th Leg., ch. 175, Sec. 1, eff. May 21,

1999; Acts 1999, 76th Leg., ch. 436, Sec. 2, eff. Sept. 1, 1999.

Sec. 392.034. TERMS OF OFFICE OF COMMISSIONERS. (a) Two of the

original commissioners of a county housing authority shall be

designated to serve one-year terms from the date of their

appointment, and three shall be designated to serve two-year

terms. Subsequent commissioners are appointed for two-year terms.

(b)(1) The original commissioners of a municipal housing

authority shall serve terms as follows:

(A) for an authority with five commissioners, two shall be

designated to serve one-year terms and three shall be designated

to serve two-year terms;

(B) for an authority with seven commissioners, three shall be

designated to serve one-year terms and four shall be designated

to serve two-year terms;

designated to serve one-year terms and five shall be designated

to serve two-year terms; and

(D) for an authority with 11 commissioners, five shall be

designated to serve one-year terms and six shall be designated to

serve two-year terms.

(2) Subsequent municipal housing commissioners are appointed for

two-year terms.

for two-year terms.

(d) Vacancies shall be filled for the unexpired term.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1999, 76th Leg., ch. 436, Sec. 3, eff. Sept. 1,

1999.

Sec. 392.035. COMPENSATION. A commissioner of a housing

authority may not receive compensation for service as a

commissioner. A commissioner is entitled to receive reimbursement

for the necessary expense, including traveling expenses, incurred

in the discharge of duties as a commissioner.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.036. VOTE REQUIRED FOR ACTION. Unless the authority's

bylaws require a larger number, when a quorum is present an

authority may take action on a vote of a majority of the

commissioners present.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.037. CHAIRMAN AND VICE-CHAIRMAN OF A MUNICIPAL OR

COUNTY HOUSING AUTHORITY. (a) The mayor shall designate one of

the initial commissioners of a municipal housing authority as

chairman. The commissioners court shall designate one of the

initial commissioners of a county housing authority as chairman.

Subsequently, when the office of chairman becomes vacant the

authority shall select one of the commissioners as chairman.

(b) A municipal or county housing authority shall select one of

the commissioners as vice-chairman.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.038. OTHER OFFICERS AND EMPLOYEES OF A MUNICIPAL OR

COUNTY HOUSING AUTHORITY. A municipal or county housing

authority may employ a secretary, who shall serve as executive

director, and may employ technical experts and other officers,

agents, and employees, permanent or temporary, the authority

considers necessary. The authority shall determine the

qualifications, duties, and compensation of the persons employed.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.039. OFFICERS AND EMPLOYEES OF A REGIONAL HOUSING

AUTHORITY. (a) The commissioners of a regional housing

authority shall elect a chairman from among the commissioners.

(b) The commissioners of a regional housing authority may select

or employ other officers and employees the commissioners consider

necessary.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.040. LEGAL SERVICES. (a) A municipal housing

authority may request needed legal services from the municipal

attorney or it may employ its own counsel and legal staff.

(b) A county housing authority may request needed legal services

from the county attorney or it may employ its own counsel and

legal staff.

services from the county attorney of a county in the authority or

it may employ its own counsel and legal staff.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1989, 71st Leg., ch. 1, Sec. 87(v), eff. Aug. 28,

1989.

Sec. 392.041. REMOVAL OF A COMMISSIONER. (a) The mayor may

remove a commissioner of a municipal housing authority for

inefficiency, neglect of duty, or misconduct in office.

(b) The commissioners court may remove a commissioner of a

county housing authority for inefficiency, neglect of duty, or

misconduct in office.

the commissioners court may remove a commissioner of a regional

housing authority who was appointed by the commissioners court.

(d) For inefficiency, neglect of duty, or misconduct in office,

the commissioners of a regional housing authority consisting of

only two counties may remove the additional commissioner

appointed by the commissioners.

(e) Before a commissioner may be removed, the commissioner must

be given:

(1) a copy of the charges before the 10th day before the date of

a hearing on the charges; and

(2) an opportunity to be heard in person or by counsel at the

hearing.

(f) If a commissioner of a municipal housing authority is

removed, a record of the proceedings with the charges and

findings shall be filed in the office of the clerk of the

municipality.

(g) If a commissioner of a county housing authority is removed,

a record of the proceedings with the charges and findings shall

be filed in the office of the county clerk.

(h) If a commissioner of a regional housing authority is

removed, a record of the proceedings with the charges and

findings shall be filed in the office of the county clerk if the

commissioner was appointed by a commissioners court or shall be

filed with the records of the authority if the commissioner was

appointed by the other commissioners of the authority.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.042. INTERESTED COMMISSIONERS. (a) In this section,

"housing project" includes, in addition to the works or

undertakings described by Subdivision (6) of Section 392.002:

(1) a work or undertaking implemented for a reason described by

Subdivision (6) of Section 392.002 that is financed in any way by

public funds or tax-exempt revenue bonds; or

(2) a building over which the housing authority has jurisdiction

and of which a part is reserved for occupancy by persons who

receive income or rental supplements from a governmental entity.

(b) Except as provided by Subsection (c), a commissioner of an

authority may not have dealings with a housing project for

pecuniary gain and may not own, acquire, or control a direct or

indirect interest in a:

(1) housing project;

(2) property included or planned to be included in a housing

project;

(3) contract or proposed contract for the sale of land to be

used for a housing project;

(4) contract or proposed contract for the construction of a

housing project; or

(5) contract or proposed contract for the sale of materials or

services to be furnished or used in connection with a housing

project.

(1) manage a housing project;

(2) own, acquire, or control a management company that renders

management services to a housing project;

(3) continue to own or control an interest in a housing project

held by the commissioner before the commissioner's term of office

began; or

(4) own, acquire, or control an interest in, or have dealings

with, a housing project over which the commissioner's housing

authority does not have jurisdiction.

(d) If a commissioner manages, owns, acquires, or controls a

direct or indirect interest in property included or planned to be

included in a housing project or has any other dealings for

pecuniary gain with a housing project, the commissioner shall

immediately disclose the interest or dealings to the authority in

writing. The disclosure shall be entered in the minutes of the

authority. The failure to disclose the interest constitutes

misconduct of office.

(e) A commissioner who knowingly or intentionally violates

Subsection (b) or (d) commits an offense. An offense under this

subsection is a felony of the third degree.

(f) A person finally convicted under Subsection (e) is

ineligible for future employment with the state, a political

subdivision of the state, or a public corporation formed under

the authority of the state or a political subdivision of the

state.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.043. INTERESTED EMPLOYEES. (a) Except as provided by

Subsection (b), (c), or (f), an employee of an authority may not

have dealings with a housing project for pecuniary gain and may

not own, acquire, or control a direct or indirect interest in a:

(1) housing project;

(2) property included or planned to be included in a housing

project;

(3) contract or proposed contract for the sale of land to be

used for a housing project;

(4) contract or proposed contract for the construction of a

housing project; or

(5) contract or proposed contract for the sale of materials or

services to be furnished or used in connection with a housing

project.

(b) An employee may not have any dealings with a housing project

for pecuniary gain except in the performance of duties as an

employee of the housing authority.

law, an employee of an authority may not be employed by or

otherwise contract to provide services to another authority

unless the first authority gives its written consent to the

employment or contract. An employee of an authority who is

employed by or who contracts to provide services to another

authority under this subsection does not violate Subsection (a)

or (b).

(d) An employee who knowingly or intentionally violates

Subsection (a) or (c) commits an offense. An offense under this

subsection is a felony of the third degree.

(e) A person finally convicted under Subsection (d) is

ineligible for future employment with the state, a political

subdivision of the state, or a public corporation formed under

the authority of the state or a political subdivision of the

state.

(f) An employee of an authority may be a party to or otherwise

participate in a contract or agreement for assistance under a

housing program, including a contract or agreement for public

housing, Section 8 housing assistance, low-interest home loans,

lease-purchase assistance, or down payment assistance, to the

same extent as a member of the public if the employee qualifies

for assistance under the program.

(g) In this section, "Section 8 housing assistance" means

housing assistance provided under Section 8, United States

Housing Act of 1937 (42 U.S.C. Section 1437f).

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1987, 70th Leg., 2nd C.S., ch. 64, Sec. 1, eff.

Nov. 1, 1987; Acts 1999, 76th Leg., ch. 231, Sec. 1, eff. May 24,

1999.

SUBCHAPTER D. POWERS AND DUTIES OF A HOUSING AUTHORITY

Sec. 392.051. GENERAL POWERS. (a) An authority exercises

public and essential governmental functions and has the powers

necessary or convenient to accomplish the purposes and provisions

of this chapter.

(b) The powers of an authority are vested in the commissioners

of the authority.

employee as it considers proper.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.052. OPERATION, CONSTRUCTION, AND LEASING OF HOUSING

PROJECTS. (a) An authority may prepare, carry out, acquire,

lease, and operate a housing project in its area of operation.

(b) An authority may provide for the construction, improvement,

alteration, or repair of a housing project, or part of a housing

project, in its area of operation.

privileges, works, or facilities for, or in connection with, a

housing project or the occupants of a housing project to be

furnished by a person or public or private agency.

(d) Without regard to another provision in this chapter or other

law, an authority may include stipulations in a contract made in

connection with a housing project that require the contractor and

subcontractors to comply with the requirements regarding minimum

wages and maximum hours of labor and with any conditions the

federal government has attached to its financial aid to the

project.

(e) An authority may lease or rent housing, land, buildings,

structures, or facilities included in a housing project at rents

established or revised, subject to the limitations of this

chapter, by the authority.

(f) An authority may take action necessary or desirable in the

undertaking, construction, maintenance, or operation of a housing

project, including action to:

(1) borrow money or accept grants or other financial assistance

from the federal government for, or in aid of, a housing project

in the authority's area of operation;

(2) take over, lease, or manage a housing project or undertaking

constructed or owned by the federal government;

(3) comply with conditions and enter into mortgages, trust

indentures, leases, or agreements that are necessary, convenient,

or desirable to accomplish the public purposes of this chapter;

(4) form a partnership or another legal entity to raise capital

for a housing project to be owned by the partnership or other

legal entity; and

(5) acquire, construct, lease, or manage commercial space

incidental to a mixed-finance housing project, as defined by 42

U.S.C. Section 1437z-7, if:

(A) the commercial space occupies less than 20 percent of the

square footage of the housing project and can reasonably be

expected to be used by the residents of the housing project; and

(B) the housing project is designed in a manner that minimizes

the noise, safety, and traffic impact of the commercial space on

the residential space.

(g) A housing project is subject to the planning, zoning,

sanitary, and building laws, ordinances, and regulations

applicable to the site of the housing project. In planning a

housing project, including site location, an authority shall

consider the relationship of the project to a larger plan or

long-range program for the development of the area within the

housing authority.

(h) Competitive bidding laws, including Chapter 271, do not

apply to an authority activity to develop a mixed-finance housing

project as defined by 42 U.S.C. Section 1437z-7, if the housing

project otherwise complies with the procurement requirements

imposed by federal law and regulations.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1989, 71st Leg., ch. 677, Sec. 3, eff. Aug. 28,

1989; Acts 2001, 77th Leg., ch. 1346, Sec. 1, eff. Sept. 1, 2001;

Acts 2001, 77th Leg., ch. 1347, Sec. 1, eff. Sept. 1, 2001.

Sec. 392.0525. LETTER OF CREDIT ACCEPTED IN LIEU OF PAYMENT AND

PERFORMANCE BONDS. In the award of a contract for the

construction, reconstruction, improvement, alteration, or repair

of any public building or for the completion of any public work,

an authority must comply with applicable state laws regarding the

execution of a contractor's performance bond and payment bond.

However, if authorized by a federal program or federal

regulation, an authority may accept, in lieu of a performance

bond and payment bond, an unconditional and irrevocable letter of

credit in the amount of the contract price and payable to the

authority.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 80(a), eff. Aug. 28,

1989.

Sec. 392.053. PUBLIC MEETING ON PROPOSED HOUSING PROJECT. (a)

In this section, "housing project" includes, in addition to the

works or undertakings described by Subdivision (6) of Section

392.002:

(1) a work or undertaking implemented for a reason described by

Subdivision (6) of Section 392.002 that is financed in any way by

public funds or tax-exempt revenue bonds; or

(2) a building over which the housing authority has jurisdiction

and of which a part is reserved for occupancy by persons who

receive income or rental supplements from a governmental entity.

(b) Unless the commissioners of an authority hold a public

meeting about a proposed housing project before the site for the

project is approved, the authority may not authorize the

construction of the housing project or obtain a permit,

certificate, or other authorization required by a municipality or

other political subdivision for any part of the construction of

the housing project. A majority of the commissioners must attend

the public meeting.

available facility to the site of the proposed project.

(d) The commissioners shall allow a person who owns or leases

real property within one-fourth mile of the proposed site to

comment on the proposed project.

(e) If a housing authority has not complied with the

requirements of this section and Section 392.054, a municipality

or other political subdivision may not issue a permit,

certificate, or other authorization for any part of the

construction of, or for the occupancy of, a housing project.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.054. NOTICE OF PUBLIC MEETING. (a) In addition to any

other notice required by law, the commissioners of an authority

shall post notice of the date, hour, place, and subject of a

meeting required by Section 392.053. The notice must be posted

before the 30th day before the date of the meeting on a bulletin

board at a place convenient to the public in:

(1) the county courthouse of the county in which the proposed

site is located; and

(2) the city hall of the municipality in which the proposed site

is located, if applicable.

(b) Before the 30th day before the date of the meeting, the

commissioners shall publish a copy of the notice required by

Subsection (a) in a newspaper with, or in newspapers that

collectively have, general circulation in the county in which the

proposed project is located.

commissioners shall mail a notice containing the same information

as the notice required by Subsection (a) to each person who owns

real property within one-fourth mile of the site of the proposed

project. The commissioners may rely on the most recent county tax

roll for the names and addresses of the owners.

(d) At a location at the proposed site that is visible from a

regularly traveled thoroughfare, before the 30th day before the

date of the meeting the commissioners shall post a sign not less

than four feet by four feet with a caption stating "Site of

Proposed Housing Project" in eight-inch letters. The sign must

state the nature and location of the proposed project, the names

and addresses of the governmental entities involved in the

development of the project, and the date, time, and place of the

meeting.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.055. RENTALS AND TENANT SELECTION. (a) An authority

may rent or lease housing only to persons of low income and only

at rentals that persons of low income can afford, in accordance

with policy guidelines to be adopted annually by the authority on

or before the beginning of each fiscal year of the authority.

(b) An authority may not rent or lease housing to a tenant that

consists of a greater number of rooms than the number the

authority considers necessary to provide safe and sanitary

housing to the proposed occupants without overcrowding.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1989, 71st Leg., ch. 677, Sec. 8, eff. Aug. 28,

1989.

Sec. 392.056. ACQUISITION, USE, AND DISPOSITION OF REAL AND

PERSONAL PROPERTY. (a) An authority may own, hold, and improve

real or personal property.

(b) An authority may purchase, lease, or obtain an option on an

interest in real or personal property. An authority may acquire

an interest in real or personal property by gift, grant, bequest,

devise, or any other manner.

pledge, or grant an option on the authority's real property or

personal property and may insure or provide for the insurance of

the authority's real property, personal property, or operations

against risks or hazards.

(d) Regardless of whether the debt is incurred by the authority,

an authority may procure insurance or guarantees from the federal

government of the payment of a debt, or part of a debt, secured

by a mortgage on property included in a housing project.

(e) Another law with respect to the acquisition, operation, or

disposition of property by another public body does not apply to

a housing authority unless specifically provided by the

legislature.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1989, 71st Leg., ch. 677, Sec. 4, eff. Aug. 28,

1989.

Sec. 392.0565. PURCHASES MADE UNDER FEDERAL PROCUREMENT PROGRAM.

(a) An authority may purchase equipment and supplies and award

contracts for services or for repairs, maintenance, and

replacements in compliance with the consolidated supply program

or any other procurement program or procedure established by the

federal government. The authority is exempt from applicable state

laws to the extent necessary to allow the authority's

participation in the program or procedure.

(b) On the request of a Texas vendor, an authority shall provide

the vendor with the current cost published by the consolidated

supply program or any other product program established by the

federal government that the authority might use to purchase any

of the supplies or equipment it uses. An authority shall permit

the vendor to bid on those items it believes that it can provide

at the same or lower delivered cost if the vendor can demonstrate

that the items are of the same quality and specifications as

those offered through the applicable federal program.

program established by the U.S. Department of Housing and Urban

Development to assist housing authorities to operate public

housing projects efficiently and economically and to assure the

availability of products that have the durability required for

the safety, security, and economical maintenance of low-income

housing.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 81(a), eff. Aug. 28,

1989.

Sec. 392.057. INVESTMENT OF FUNDS. An authority may invest any

funds held in reserves or sinking funds or any funds not required

for immediate disbursement in property or securities in which a

savings bank may legally invest funds subject to its control.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.058. RESEARCH AND INVESTIGATION. (a) An authority may

research, study, and experiment on the subject of housing in its

area of operation.

(b) An authority may investigate housing conditions and methods

of improving housing conditions in its area of operation.

shortage of decent, safe, and sanitary housing available to

persons of low income in its area of operation.

(d) An authority may make studies and recommendations relating

to the problems of clearing, replanning, and reconstructing slum

areas and of providing housing for persons of low income in its

area of operation.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 392.059. COOPERATION WITH OTHER GOVERNMENTAL ENTITIES OR

HOUSING AUTHORITIES. (a) An authority may cooperate with a

municipality, a county, another political subdivision of this

state, or the state in action taken in connection with the

problems of clearing, replanning, and reconstructing slum areas

and of providing housing for persons of low income in the area of

operation of the authority or within the boundaries of the

cooperating political subdivision.

(b) Housing authorities may cooperate in the exercise of a power

conferred by this chapter to finance, plan, undertake, construct,

or operate a housing project in the area of operation of one or

more of the cooperating authorities.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1989, 71st Leg., ch. 677, Sec. 5, eff. Aug. 28,

1989.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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