HB 2675 imposes new restrictions on housing finance corporations by limiting their area of operation to the jurisdictional boundaries of their sponsoring local government. If a corporation seeks to operate outside these limits, it must obtain approval from the governing body of each affected municipality and county. The bill also introduces audit requirements for multifamily residential developments owned by housing finance corporations that claim a property tax exemption. These corporations must submit an annual compliance audit to the Texas Department of Housing and Community Affairs and local appraisal districts to ensure adherence to exemption conditions. The department will review and publish audit findings, and failure to comply with the conditions could result in the loss of the tax exemption​.