Relating to the area of operations of and certain tax exemptions available to housing authorities.

SB 1454 modifies rules for municipal housing authorities in Texas. It requires housing authorities to have a written agreement with water/sewer districts to pay fees instead of receiving tax exemptions for multifamily developments served by those districts. The bill also restricts housing authorities to operate only within their municipality's boundaries (or within five miles, excluding other municipalities), and mandates joint approval from local governments for projects outside their primary area. These changes apply only to new housing contracts entered after the law takes effect, while existing projects remain under prior rules. The bill directly affects municipal housing authorities and service districts providing water, sewer, or drainage.