HB 4589 revises the operations and functions of the Texas Department of Housing and Community Affairs (TDHCA). The bill updates the definition of a "contract for deed" by clarifying its legal status when recorded, granting it the same effect as a deed with a vendor’s lien, and specifying how ownership is determined for department loan programs. It modifies the project compliance assessment process by requiring the TDHCA to fully document and disclose any approvals granted to projects with compliance violations. The bill also strengthens restrictions on ex parte communications between TDHCA board members and project applicants to prevent conflicts of interest. Additionally, it revises application amendment rules for low-income housing tax credits by specifying what constitutes a material alteration of a development, requiring board approval for significant project modifications. The bill also expands housing tax credit ownership transfer rules, requiring 30-day tenant notification before a transfer is approved, and clarifies the conditions under which a housing tax credit development is subject to a right of first refusal. The changes apply to applications submitted on or after September 1, 2025​.