By: Ellis, West S.B. No. 991
A BILL TO BE ENTITLED
AN ACT
1-1 relating to a county housing trust fund for the construction,
1-2 preservation, or financing of low income and moderate income
1-3 housing.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle B, Title 12, Local Government Code, is
1-6 amended by adding Chapter 383 to read as follows:
1-7 CHAPTER 383. COUNTY HOUSING TRUST FUND
1-8 SUBCHAPTER A. GENERAL PROVISIONS
1-9 Sec. 383.001. DEFINITIONS. In this chapter:
1-10 (1) "Housing project" means a work or other
1-11 undertaking:
1-12 (A) to provide decent, safe, and sanitary urban
1-13 or rural housing for persons or families of moderate, low, or very
1-14 low income, including buildings, land, equipment, or facilities;
1-15 (B) for other purposes, including the support of
1-16 infrastructure improvement, acquisition of real property, grants,
1-17 or loans, related to housing for persons or families of moderate,
1-18 low, or very low income; or
1-19 (C) to provide service related to preserving,
1-20 maintaining, or encouraging the development of housing for persons
1-21 or families of moderate, low, or very low income.
1-22 (2) "Trust fund" means the county housing trust fund.
1-23 Sec. 383.002. RULES. The commissioners court of a county by
1-24 order may adopt any rules necessary to administer this chapter in
2-1 the county.
2-2 (Sections 383.003 to 383.020 reserved for expansion
2-3 SUBCHAPTER B. CREATION OF TRUST FUND
2-4 Sec. 383.021. COUNTY HOUSING TRUST FUND. (a) The
2-5 commissioners court may establish a county housing trust fund to be
2-6 used in accordance with this chapter.
2-7 (b) The trust fund shall be separate from other county
2-8 revenue and may be used only for the purposes set out in this
2-9 chapter.
2-10 (c) The commissioners court may establish a county housing
2-11 trust fund fee. The fee shall be assessed as a cost and must be
2-12 paid at the time of filing with the county clerk a document
2-13 relating to the transfer of real property in the county or the
2-14 issuance of a county building permit. The fee may not exceed $10.
2-15 The county clerk shall collect the fee and deposit the funds in the
2-16 county housing trust fund.
2-17 (d) In its discretion, the commissioners court may deposit
2-18 into the trust fund any other money that is not dedicated by law
2-19 for another purpose.
2-20 Sec. 383.022. RESTRICTIONS ON TRUST FUND USE. (a) The
2-21 commissioners court may use one percent or less of the revenue
2-22 deposited in the trust fund to offset any additional administrative
2-23 costs incurred in collecting the county housing trust fund fee.
2-24 (b) Except as otherwise provided by this chapter, the money
2-25 in the trust fund may be used only in connection with an eligible
2-26 housing project as provided under Subchapter D.
2-27 (c) The commissioners court may not encumber 50 percent or
3-1 more of the principal of the trust fund.
3-2 (d) The commissioners court may expend interest of the trust
3-3 fund within one year of the date of the accrual of the interest.
3-4 Interest not expended during the one-year period shall be
3-5 considered trust fund principal. On a finding of necessity, the
3-6 commissioners court annually may expend not more than 25 percent of
3-7 the principal of the trust fund.
3-8 (e) The operation of the trust fund shall be consistent with
3-9 accounting, reporting, and investment policies of the county.
3-10 (Sections 383.023 to 383.040 reserved for expansion
3-11 SUBCHAPTER C. ADMINISTRATION OF TRUST FUND
3-12 Sec. 383.041. OVERSIGHT OF TRUST FUND. (a) The
3-13 commissioners court of a county that has established a trust fund
3-14 is responsible for the oversight on the use of the money of the
3-15 trust fund.
3-16 (b) The commissioners court shall approve all expenditures
3-17 from the trust fund.
3-18 Sec. 383.042. ADVISORY COMMITTEE. (a) The commissioners
3-19 court may establish a trust fund advisory committee to advise the
3-20 county on housing needs and priorities and to develop guidelines
3-21 for eligible housing projects.
3-22 (b) The commissioners court may contract with nonprofit
3-23 organizations involved in housing issues or with a county housing
3-24 finance corporation to provide any services that would be provided
3-25 by a trust fund advisory committee.
3-26 Sec. 383.043. ADMINISTRATION OF FUNDS TO HOUSING PROGRAMS.
3-27 (a) The commissioners court shall designate a county department,
4-1 an employee of a county department, or another appropriate county
4-2 employee to administer the operations of the trust fund.
4-3 (b) The employee or department designated under Subsection
4-4 (a) shall:
4-5 (1) maintain all necessary records;
4-6 (2) assist applicants for grants from the trust fund;
4-7 (3) disburse, monitor, and report on the use of trust
4-8 fund proceeds;
4-9 (4) evaluate trust fund proposals;
4-10 (5) promulgate and enforce rules necessary for the
4-11 enforcement of this chapter; and
4-12 (6) recommend guidelines to the commissioners court
4-13 regarding the award of trust fund money for eligible housing
4-14 projects.
4-15 (c) The commissioners court may contract with a municipal,
4-16 county, or regional housing authority for the provision of all or
4-17 part of the functions described by Subsection (b).
4-18 (d) Ten percent or less of trust fund money disbursed in a
4-19 one-year period may be used to pay the operating expenses or staff
4-20 costs related to the provision of services under Subsection (b) or
4-21 the administration of trust funds as described by this chapter.
4-22 (Sections 383.044 to 383.060 reserved for expansion
4-23 SUBCHAPTER D. ELIGIBLE PROGRAMS
4-24 Sec. 383.061. ELIGIBLE PROJECTS. Money in the trust fund
4-25 may be used only for the following purposes:
4-26 (1) as a local match to state or federal grants
4-27 related to housing projects;
5-1 (2) to support the operation of a housing project by a
5-2 county or regional housing authority;
5-3 (3) to provide interim financing for housing projects;
5-4 (4) to renovate or upgrade existing substandard
5-5 housing projects in a county;
5-6 (5) to make a loan or grant to a person or family of
5-7 moderate, low, or very low income, unit of local government,
5-8 municipal, county, or regional housing authority, or nonprofit
5-9 housing organization for housing projects;
5-10 (6) to make a loan or grant to a nonprofit housing
5-11 organization to provide technical assistance on issues related to
5-12 housing projects; or
5-13 (7) to support an existing housing project.
5-14 Sec. 383.062. APPLICATION FOR TRUST FUNDS. (a) The trust
5-15 fund shall be disbursed through an open application process. The
5-16 commissioners court shall award the trust fund based on established
5-17 guidelines.
5-18 (b) Guidelines adopted by the commissioners court may favor
5-19 projects that serve the greatest number of moderate, low, or very
5-20 low income persons or families or that affect the greatest number
5-21 of moderate, low, or very low income housing units.
5-22 (c) Guidelines shall be adopted by the commissioners court
5-23 not later than the 60th day before applications for the award of
5-24 money from the trust fund are due.
5-25 Sec. 383.063. GUIDELINE REQUIREMENTS. (a) A project or
5-26 proposal for which trust fund money is granted must provide one or
5-27 more of the following purposes:
6-1 (1) targets households by incorporating specific
6-2 income limits for a household benefiting from a housing project and
6-3 provides funds for a housing project designed to make housing
6-4 affordable for persons or families with incomes at or below 120
6-5 percent, at or below 80 percent, or at or below 50 percent of the
6-6 median income of a county;
6-7 (2) targets certain geographic areas of a county,
6-8 including rural areas, urban renewal areas, or slum areas;
6-9 (3) targets a specific project or proposal determined
6-10 by the commissioners court to be of immediate need; or
6-11 (4) targets a project or proposal designed to retain
6-12 affordable housing for moderate, low, and very low income
6-13 households, including projects that guarantee the units of housing
6-14 will continue to remain as affordable housing.
6-15 (b) A project granted trust funds should attempt to avoid
6-16 directly or indirectly displacing moderate, low, or very low income
6-17 persons or families from housing.
6-18 (c) The commissioners court in awarding a project or
6-19 proposal shall state under which guideline the award was made.
6-20 SECTION 2. This Act takes effect September 1, 1993.
6-21 SECTION 3. The importance of this legislation and the
6-22 crowded condition of the calendars in both houses create an
6-23 emergency and an imperative public necessity that the
6-24 constitutional rule requiring bills to be read on three several
6-25 days in each house be suspended, and this rule is hereby suspended.