🟡Relating to prohibiting a public institution of higher education from partnering with certain private entities for the construction of a student housing facility.
HB 718
🟡 HB 718: University housing partnerships with developer payment checks
What it says it does:
HB 718 tells Texas public universities they cannot sign partnership contracts with private companies to build student housing if those companies have unpaid bills to contractors, subcontractors, or vendors. It claims to protect schools from partnering with firms that don’t pay their workers.
What it actually changes:
The bill creates a new screening rule but adds two exceptions. A developer can still move forward if they post a payment bond covering the disputed amount, or if they are “contesting the claim in good faith.” That phrase is left undefined, giving each university discretion to decide when a dispute counts as “good faith.”
Who is pushing for it:
Authored by Rep. Cecil Bell Jr. and sponsored in the Senate by Sen. Parker. The Senate witness list shows Kerry Cammack supporting the bill for Greystar Construction and Development, one of the nation’s largest student housing builders.
Who benefits:
Large, well-capitalized developers who can easily post bonds or maintain legal documentation of disputes. Universities that want flexibility to keep projects moving. The rule filters out smaller firms but keeps doors open for those with deep pockets and strong legal teams.
Who gets left out or exposed:
Smaller or mid-size Texas developers with limited bonding capacity lose access to contracts. Subcontractors and vendors still have no guaranteed remedy if they remain unpaid, since the bill does not create penalties or public reporting when exceptions are used.
Why this matters long term:
This bill sets a pattern for “ban plus exception” laws, tough on paper, flexible in practice. It leaves enforcement to universities without a public audit trail. Over time, that could consolidate student housing development in the hands of a few large firms and weaken local competition.
What to watch next:
Watch whether universities disclose how many developers they screen out, how often exceptions are used, and whether any disputes continue after projects are approved. The term “good faith” could become a quiet loophole unless it’s defined in policy.
Bottom line:
HB 718 sounds like a fairness measure, but without definitions, audits, or transparency, it risks becoming another compliance box that benefits large developers while offering little real protection to contractors or taxpayers.
#HB718 #TexasPolicy #HigherEd #StudentHousing #WatchTheRules