(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. § 1437f), or that is:
(1) insured or assisted under a program under:
(A) Section 221(d)(3), National Housing Act (12 U.S.C. § 1715l);
(B) Section 236, National Housing Act (12 U.S.C. § 1715z-1); or
(C) Section 514, 515, or 516, Housing Act of 1949 (42 U.S.C. § 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.

Terms Used In Texas Government Code 2306.851

  • Devise: To gift property by will.
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • Intestate: Dying without leaving a will.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
  • Property: means real and personal property. See Texas Government Code 311.005
  • United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005

(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.

  Previous section
Next section  
 Subchapter II Contents