Texas Attorney General Opinion: DM-485 Page: 4 of 4
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The Honorable Joe Rubio - Page 4
We also believe that the school district is subdividing land into "lots as part of a common
promotional plan in the ordinary course of business." Id. The statute defines a "common
promotional plan" as "any plan or scheme of operation undertaken by a ... subdivider ... to offer
for sale or lease lots when the land is . . . contiguous or part of the same area of land." Id.
232.021(3). You state that "the school district has rented out the manufactured homes as part of
a scheme to provide residential quarters for its employees." The manufactured homes are "situated
on school district property." Thus, the school district appears to have a "plan or scheme" to lease
lots that are "part of the same area of land." The phrase "in the ordinary course of business" is not
defined by the statute. The phrase may merely further refine the term "common promotional plan."
Alternatively, the language "in the ordinary course of business" may have been intended to except
certain gratuitous transfers from the scope of subchapter B. See id. 232.022(a) ("This subchapter
does not apply if the subdivision is incident to the conveyance of land as a gift between persons
related to each other ... ."). The leases at issue are part of teachers' compensation from the school
district and are not gratuitous." Furthermore, your letter states that the school district "has
traditionally provided housing for some of its teachers in manufactured homes situated on school
district property." Given that the school district provides housing to its employees as a fringe benefit
for rent pursuant to a form residential lease agreement, we believe that the school district's leases
are "part of a common promotional plan within the ordinary course of business," however one
defines the latter phrase.
SUMMARY
Local Government Code chapter 232, subchapter B, applies to the Webb
Consolidated Independent School District's lease of manufactured homes on
school grounds to teachers.
Yours very truly,
DAN MORALES
Attorney General of Texas
JORGE VEGA
First Assistant Attorney General
SARAH J. SHIRLEY
Chair, Opinion Committee
Prepared by Mary R. Crouter
Assistant Attorney General
'Your letter states that teachers living in the homes pay a nominal rental fee and also describes the housing as
a fringe benefit.p. 2755
(DM-485)
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Texas. Attorney-General's Office. Texas Attorney General Opinion: DM-485, text, November 9, 1998; (https://texashistory.unt.edu/ark:/67531/metapth274294/m1/4/: accessed April 26, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.