Enrolled Bill Summary

            Senate Bill 284 amends the Government Code to continue the Texas State Affordable Housing Corporation (TSAHC) until September 1, 2009, and to include and update standard sunset language. The bill redistributes the portion of the state ceiling on private activity bonds that is available for reservations by issuers of qualified residential rental project bonds by reducing the portion that is available exclusively to the Texas Department of Housing and Community Affairs from 25 percent to 20 percent, reducing the portion that is allocated to local housing finance corporations from 75 percent to 70 percent, and making the remaining 10 percent available exclusively to TSAHC for issuing bonds for multifamily affordable housing. The bill adds as a primary purpose of TSAHC the issuing of qualified 501(c)(3) bonds and qualified residential rental project bonds and provides that TSAHC must require a community housing development organization that receives qualified 501(c)(3) bonds from TSAHC to invest at least one dollar in projects and services that benefit income-eligible persons for each dollar's worth of abated property taxes. The bill also requires TSAHC to review its qualified 501(c)(3) bond issuance policies annually and to submit proposed revisions to the secretary of state for posting in the Texas Register.

            The bill modifies provisions relating to the Teacher Home Loan program by changing its name to the Professional Educators Home Loan Program; expanding the eligibility criteria to include a full-time paid teacher's aide and a full-time librarian, certified counselor, or school nurse; and eliminating the five-year residency and three-year work experience requirements. The bill also eliminates a requirement that TSAHC give priority to applications of teachers from areas of the state with a teacher shortage and stipulates that the portion of the state ceiling made available for the program be allotted annually until August 1. The bill requires TSAHC to recommend to the Bond Review Board which projects should be funded with TSAHC's share of private activity bonds and requires TSAHC's board of directors to adopt guidelines and criteria for each step of this process and hold public hearings before making final award recommendations to the Bond Review Board.

            The bill requires the department's director to provide TSAHC with needs assessment information and requires TSAHC to review that information and develop a low-income housing plan, which must include specific proposals to help serve rural and other underserved areas of the state. The bill requires the department to include TSAHC's low-income housing plan in the department's resource allocation plan and to consider and incorporate results of TSAHC's programs in the department's estimate and analysis of the housing supply in each uniform state service region. The bill requires TSAHC and the department to share project compliance information. TSAHC must consider the department's compliance information before approving a housing development application, and the department's governing board must also consider that information when assessing the compliance of a project, applicant, or affiliate. The bill replaces unlimited terms for TSAHC board members with staggered six-year terms and requires TSAHC to annually review its multifamily bond policies.