Tex. Gov't Code Ann. §§ 2306.185, 2306.186, 2306.269, 2306.358, 2306.6702, 2306.6713, 2306.6720, 2306.6722, 2306.6726, 2306.6728, 2306.6730, 2306.6735, 2306.6738, 2306.851–2306.853, 2306.921–2306.940 § 2306.851
APPLICATION.
Operative Text
Sec. 2306.851. APPLICATION. (a) This subchapter applies only to a property owner of a multifamily housing development that is insured or assisted under a program under Section 8, United States Housing Act of 1937 (42 U.S.C. Section 1437f), or that is:(1) insured or assisted under a program under:(A) Section 221(d)(3), National Housing Act (12 U.S.C. Section 1715l);(B) Section 236, National Housing Act (12 U.S.C. Section 1715z-1); or(C) Section 514, 515, or 516, Housing Act of 1949 (42 U.S.C. Section 1484, 1485, or 1486); and(2) financed by a mortgage that is eligible for prepayment at the option of the property owner.(b) This subchapter does not apply to the disposal of property because of:(1) a governmental taking by eminent domain or negotiated purchase;(2) a foreclosure action;(3) a transfer by gift, devise, or operation of law; or(4) a sale to a person who would be entitled to an interest in the property if the property owner died intestate.(c) This subchapter does not apply to property included in a restructuring program with a participating administrative entity designated by the United States Department of Housing and Urban Development. Added by Acts 2001, 77th Leg., ch. 1367, Sec. 3.07, eff. Sept. 1, 2001.
Section 2306.851 of the Texas Government Code defines the scope of the subchapter governing certain federally assisted multifamily housing properties. It applies specifically to property owners whose developments are insured or assisted under Section 8 of the United States Housing Act of 1937, or under certain other federal housing programs (Sections 221(d)(3) or 236 of the National Housing Act, or Sections 514, 515, or 516 of the Housing Act of 1949) where the underlying mortgage is eligible for prepayment at the owner's option. The subchapter explicitly does not apply to property disposals resulting from eminent domain, foreclosure, gifts or inheritances, or sales to heirs, nor does it apply to properties already enrolled in a HUD-designated restructuring program.
Plain English — not legal advice.
Property owners of federally assisted multifamily developments should first confirm whether their property falls within the scope of Tex. Gov't Code § 2306.851 before assuming the subchapter's requirements apply to them. Operators whose properties are covered under the listed federal programs and carry a prepayable mortgage generally review the remaining sections of this subchapter to understand their obligations. Those whose properties are subject to foreclosure, eminent domain, or certain inheritance-related transfers, or who are participating in a HUD restructuring program, should note that § 2306.851 expressly excludes those situations from the subchapter's reach.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants living in federally assisted multifamily housing in Texas may find that the protections established in this subchapter apply to their building, depending on whether it meets the criteria set out in Tex. Gov't Code § 2306.851. If a property qualifies under the listed federal programs, the remaining provisions of the subchapter may provide residents with certain rights related to ownership changes or prepayment of the mortgage. Tenants who are uncertain whether their building is covered can consult a tenant-rights organization or contact the Texas Department of Housing and Community Affairs for general information about which properties fall under this framework.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 28, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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