Tex. Prop. Code Ann. §§ 223.001–223.007 § 223.004
DISCRIMINATION PROHIBITED.
Operative Text
Sec. 223.004. DISCRIMINATION PROHIBITED. A managing entity may not take an action with respect to an interest in the entity in a manner that would be a violation of Chapter 301 if the interest in the entity were an interest in real property, including:(1) restricting the transfer of the interest;(2) imposing requirements to maintain the interest; or(3) refusing to grant an interest to an otherwise qualified person. Added by Acts 2025, 89th Leg., R.S., Ch. 1096 (H.B. 4211), Sec. 1, eff. June 20, 2025.
Section 223.004 of the Texas Property Code prohibits a managing entity from treating interests in the entity in ways that would constitute housing discrimination under Chapter 301 (the Texas Fair Housing Act) if those interests were direct interests in real property. This means the same anti-discrimination protections that apply to real estate transactions—covering protected characteristics such as race, color, national origin, religion, sex, disability, and familial status—extend to interests in managing entities. Specifically, the provision bars discriminatory restrictions on transferring such interests, discriminatory maintenance requirements, and outright refusals to grant interests to otherwise qualified persons.
Plain English — not legal advice.
Managing entities and property owners operating under Tex. Prop. Code § 223.004 generally ensure that their policies for granting, transferring, and maintaining entity interests are facially neutral and do not treat individuals differently based on characteristics protected under Chapter 301. Compliant operators typically review their governing documents, transfer procedures, and eligibility criteria to confirm that no rule would constitute unlawful discrimination if applied to a direct real-property transaction. Keeping records of how interest-related decisions are made and applied uniformly can support a showing of compliance with this provision.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under Tex. Prop. Code § 223.004, individuals who believe they have been denied, restricted from, or subjected to discriminatory conditions regarding an interest in a managing entity may have recourse under the same fair housing framework that applies to real property. A person who experiences such treatment can explore filing a complaint with the Texas Workforce Commission Civil Rights Division or the U.S. Department of Housing and Urban Development, or consult a tenant-rights organization familiar with Texas fair housing law. Raising a violation of § 223.004 may also be available as a defense or claim in relevant legal proceedings.
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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