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 § 2306.852
PROPERTY OWNER RESTRICTION.
Operative Text
Sec. 2306.852. PROPERTY OWNER RESTRICTION. Except as provided by this subchapter, a property owner to whom this subchapter applies may not sell, lease, or otherwise dispose of a multifamily housing development described by Section 2306.851(a) or take any other action if that action will cause the disruption or discontinuance of:(1) the development's federal insurance or assistance; or(2) the provision of low income housing assistance to residents of the development. Added by Acts 2001, 77th Leg., ch. 1367, Sec. 3.07, eff. Sept. 1, 2001.
Section 2306.852 of the Texas Government Code restricts what property owners of certain multifamily housing developments can do with their properties. Specifically, it bars them from selling, leasing, or otherwise transferring the development—or taking any other action—if doing so would interrupt or end the development's federal insurance or assistance, or cut off low-income housing assistance to residents. The restriction applies to the category of owners defined elsewhere in the subchapter, and exceptions exist only as the subchapter itself provides.
Plain English — not legal advice.
Under Tex. Gov't Code § 2306.852, operators of covered multifamily housing developments generally review any proposed sale, lease, transfer, or other significant action to confirm it will not disrupt federal insurance, federal assistance, or low-income housing assistance flowing to residents. Compliant owners typically coordinate with relevant federal program administrators before executing transactions to verify that assistance streams remain intact. Maintaining documentation of that review process is a common practice among operators subject to this subchapter.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tex. Gov't Code § 2306.852 is designed to protect residents of covered multifamily developments from losing low-income housing assistance or federal program benefits because of an owner's transaction or other action. If you believe an owner's sale, lease, or other action has disrupted or is about to disrupt your housing assistance, you may have grounds to raise that concern with a tenant-rights organization, a legal aid office, or the relevant federal program administrator. Residents can also explore whether a complaint to a state or federal oversight body is appropriate given the nature of the assistance involved.
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.
Effective Timeline
References In
Rules and statutes that cite this regulation