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HB 718

Relating to prohibiting a public institution of higher education from partnering with certain private entities for the construction of a student housing facility.

89th Legislature (2025) Introduced by Cecil Bell and 1 co-sponsor

Texas law now prohibits public universities from partnering with private entities to build student housing, potentially limiting funding sources and increasing costs for on-campus residential facilities.

Effective on 9/1/25
#contractors'liens(s0357) #education--higher--general(i0231) #housing--finance(i0407) #housing--general(i0405) #purchasing--general(i0642) #stateagencies #boards&commissions(i0749)
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Bill Summary · HB 718

Legislative bill overview

HB 718 prohibits Texas public universities from partnering with private entities to construct student housing facilities. The bill restricts the types of public-private partnerships (PPPs) that institutions can enter for residential infrastructure, effectively limiting financing and development models commonly used for on-campus housing projects.

Why is this important

Student housing is a significant revenue source and infrastructure priority for universities, with many institutions relying on private partnerships to fund modern facilities without depleting state budgets. This restriction could force universities to either use state funds for housing construction, delay facility improvements, or allow housing to deteriorate—directly affecting students' living conditions and institutional finances.

Potential points of contention

  • Funding constraints: Universities may lack sufficient state appropriations or bonding capacity to independently fund needed housing upgrades, potentially leading to deferred maintenance or reduced availability
  • Housing affordability impact: Private partners often provide capital that keeps student housing costs competitive; restrictions could increase costs to students or reduce available beds
  • Economic efficiency: Private partnerships typically transfer risk and operational expertise to experienced developers; the bill may force less efficient public management of complex construction projects

Compiled from official sources — confirm details with the bill’s official record.

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