Enrolled Bill Summary

            House Bill 2577 amends Government Code provisions relating to the powers, functions, and duties of the Texas Department of Housing and Community Affairs and the renamed Texas State Affordable Housing Corporation. The act expands the purposes of the department to include preservation of subsidized housing occupied by very low and extremely low income families, adds a community development division to the department, and requires the department to administer federal funds to benefit the homeless. The annual report is renamed the annual low income housing report and is required to address housing activities and low income housing tax credits and to include recommendations regarding the Neighborhood Partnership Program. The department must meet certain requirements in preparing and adopting the annual plan and report and is required to make certain information available on the Internet.

            The act requires the department's housing finance division to administer all federal housing funds and makes changes to the duties of the department related to housing finance division programs. The act adds counties and for-profit corporations to the list of entities and organizations the housing finance division is required to work with, requires disclosure of fees and other information relating to loan, grant, or assistance applications, adds investment and other income to the housing trust fund, and adds requirements regarding the amounts of housing trust funds to be distributed among nonprofit, for-profit, and other entities.

            House Bill 2577 adds other obligations, including contracts for deeds, to those instruments the department is authorized to purchase, provides the department limited authority to reconstruct and manage real property, adds requirements for allocating bonding authority among types of projects and between rural and metropolitan areas, and establishes other requirements for qualified Section 501(c)(3) organizations regarding housing projects. The act requires the department to develop and implement a statewide homebuyer education program and a tenant services program.

            The act renames the Texas Housing Corporation the Texas State Affordable Housing Corporation, redefines its purposes, and establishes membership of the board of directors. The act specifies the corporation's powers, which include engaging in mortgage and lending transactions and holding property, and requires an annual audit. The board is required to provide the public with an opportunity to appear and speak on an issue, and the corporation is exempted from taxation.

            The act moves the temporary emergency relief program from the Human Resources Code to the Government Code. House Bill 2577 requires the department to administer a low income housing tax credit program and establishes program requirements. Finally, the act authorizes a municipality to issue notes and other obligations to further approved community development programs.