1-1 By: Ellis S.B. No. 991
1-2 (In the Senate - Filed March 12, 1993; March 15, 1993, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 29, 1993, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 6, Nays 0;
1-6 April 29, 1993, sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Armbrister x
1-10 Leedom x
1-11 Carriker x
1-12 Henderson x
1-13 Madla x
1-14 Moncrief x
1-15 Patterson x
1-16 Rosson x
1-17 Shapiro x
1-18 Wentworth x
1-19 Whitmire x
1-20 COMMITTEE SUBSTITUTE FOR S.B. No. 991 By: Whitmire
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to a county housing trust fund for the construction,
1-24 preservation, or financing of low income and moderate income
1-25 housing.
1-26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-27 SECTION 1. Subtitle B, Title 12, Local Government Code, is
1-28 amended by adding Chapter 383 to read as follows:
1-29 CHAPTER 383. COUNTY HOUSING TRUST FUND
1-30 SUBCHAPTER A. GENERAL PROVISIONS
1-31 Sec. 383.001. DEFINITIONS. In this chapter:
1-32 (1) "Housing project" means a work or other
1-33 undertaking:
1-34 (A) to provide decent, safe, and sanitary urban
1-35 or rural housing for persons or families of moderate, low, or very
1-36 low income, including buildings, land, equipment, or facilities;
1-37 (B) for other purposes, including the support of
1-38 infrastructure improvement, acquisition of real property, grants,
1-39 or loans, related to housing for persons or families of moderate,
1-40 low, or very low income; or
1-41 (C) to provide service related to preserving,
1-42 maintaining, or encouraging the development of housing for persons
1-43 or families of moderate, low, or very low income.
1-44 (2) "Trust fund" means the county housing trust fund.
1-45 Sec. 383.002. RULES. The commissioners court of a county by
1-46 order may adopt any rules necessary to administer this chapter in
1-47 the county.
1-48 (Sections 383.003 to 383.020 reserved for expansion
1-49 SUBCHAPTER B. CREATION OF TRUST FUND
1-50 Sec. 383.021. COUNTY HOUSING TRUST FUND. (a) The
1-51 commissioners court may establish a county housing trust fund to be
1-52 used in accordance with this chapter.
1-53 (b) The trust fund shall be separate from other county
1-54 revenue and may be used only for the purposes set out in this
1-55 chapter.
1-56 (c) The commissioners court may establish a county housing
1-57 trust fund fee. The fee shall be assessed as a cost and must be
1-58 paid at the time of filing with the county clerk a document
1-59 relating to the transfer of real property in the county or the
1-60 issuance of a county building permit. The fee may not exceed $10.
1-61 The county clerk shall collect the fee and deposit the funds in the
1-62 county housing trust fund.
1-63 (d) In its discretion, the commissioners court may deposit
1-64 into the trust fund any other money that is not dedicated by law
1-65 for another purpose.
1-66 Sec. 383.022. RESTRICTIONS ON TRUST FUND USE. (a) The
1-67 commissioners court may use one percent or less of the revenue
1-68 deposited in the trust fund to offset any additional administrative
2-1 costs incurred in collecting the county housing trust fund fee.
2-2 (b) Except as otherwise provided by this chapter, the money
2-3 in the trust fund may be used only in connection with an eligible
2-4 housing project as provided under Subchapter D.
2-5 (c) The commissioners court may not encumber 50 percent or
2-6 more of the principal of the trust fund.
2-7 (d) The commissioners court may expend interest of the trust
2-8 fund within one year of the date of the accrual of the interest.
2-9 Interest not expended during the one-year period shall be
2-10 considered trust fund principal. On a finding of necessity, the
2-11 commissioners court annually may expend not more than 25 percent of
2-12 the principal of the trust fund.
2-13 (e) The operation of the trust fund shall be consistent with
2-14 accounting, reporting, and investment policies of the county.
2-15 (Sections 383.023 to 383.040 reserved for expansion
2-16 SUBCHAPTER C. ADMINISTRATION OF TRUST FUND
2-17 Sec. 383.041. OVERSIGHT OF TRUST FUND. (a) The
2-18 commissioners court of a county that has established a trust fund
2-19 is responsible for the oversight on the use of the money of the
2-20 trust fund.
2-21 (b) The commissioners court shall approve all expenditures
2-22 from the trust fund.
2-23 Sec. 383.042. ADVISORY COMMITTEE. (a) The commissioners
2-24 court may establish a trust fund advisory committee to advise the
2-25 county on housing needs and priorities and to develop guidelines
2-26 for eligible housing projects.
2-27 (b) The commissioners court may contract with nonprofit
2-28 organizations involved in housing issues or with a county housing
2-29 finance corporation to provide any services that would be provided
2-30 by a trust fund advisory committee.
2-31 Sec. 383.043. ADMINISTRATION OF FUNDS TO HOUSING PROGRAMS.
2-32 (a) The commissioners court shall designate a county department,
2-33 an employee of a county department, or another appropriate county
2-34 employee to administer the operations of the trust fund.
2-35 (b) The employee or department designated under Subsection
2-36 (a) shall:
2-37 (1) maintain all necessary records;
2-38 (2) assist applicants for grants from the trust fund;
2-39 (3) disburse, monitor, and report on the use of trust
2-40 fund proceeds;
2-41 (4) evaluate trust fund proposals;
2-42 (5) promulgate and enforce rules necessary for the
2-43 enforcement of this chapter; and
2-44 (6) recommend guidelines to the commissioners court
2-45 regarding the award of trust fund money for eligible housing
2-46 projects.
2-47 (c) The commissioners court may contract with a municipal,
2-48 county, or regional housing authority for the provision of all or
2-49 part of the functions described by Subsection (b).
2-50 (d) Ten percent or less of trust fund money disbursed in a
2-51 one-year period may be used to pay the operating expenses or staff
2-52 costs related to the provision of services under Subsection (b) or
2-53 the administration of trust funds as described by this chapter.
2-54 (Sections 383.044 to 383.060 reserved for expansion
2-55 SUBCHAPTER D. ELIGIBLE PROGRAMS
2-56 Sec. 383.061. ELIGIBLE PROJECTS. Money in the trust fund
2-57 may be used only for the following purposes:
2-58 (1) as a local match to state or federal grants
2-59 related to housing projects;
2-60 (2) to support the operation of a housing project by a
2-61 county or regional housing authority;
2-62 (3) to provide interim financing for housing projects;
2-63 (4) to renovate or upgrade existing substandard
2-64 housing projects in a county;
2-65 (5) to make a loan or grant to a person or family of
2-66 moderate, low, or very low income, unit of local government,
2-67 municipal, county, or regional housing authority, or nonprofit
2-68 housing organization for housing projects;
2-69 (6) to make a loan or grant to a nonprofit housing
2-70 organization to provide technical assistance on issues related to
3-1 housing projects; or
3-2 (7) to support an existing housing project.
3-3 Sec. 383.062. APPLICATION FOR TRUST FUNDS. (a) The trust
3-4 fund shall be disbursed through an open application process. The
3-5 commissioners court shall award the trust fund based on established
3-6 guidelines.
3-7 (b) Guidelines adopted by the commissioners court may favor
3-8 projects that serve the greatest number of moderate, low, or very
3-9 low income persons or families or that affect the greatest number
3-10 of moderate, low, or very low income housing units.
3-11 (c) Guidelines shall be adopted by the commissioners court
3-12 not later than the 60th day before applications for the award of
3-13 money from the trust fund are due.
3-14 Sec. 383.063. GUIDELINE REQUIREMENTS. (a) A project or
3-15 proposal for which trust fund money is granted must provide one or
3-16 more of the following purposes:
3-17 (1) targets households by incorporating specific
3-18 income limits for a household benefiting from a housing project and
3-19 provides funds for a housing project designed to make housing
3-20 affordable for persons or families with incomes at or below 120
3-21 percent, at or below 80 percent, or at or below 50 percent of the
3-22 median income of a county;
3-23 (2) targets certain geographic areas of a county,
3-24 including rural areas, urban renewal areas, or slum areas;
3-25 (3) targets a specific project or proposal determined
3-26 by the commissioners court to be of immediate need; or
3-27 (4) targets a project or proposal designed to retain
3-28 affordable housing for moderate, low, and very low income
3-29 households, including projects that guarantee the units of housing
3-30 will continue to remain as affordable housing.
3-31 (b) A project granted trust funds should attempt to avoid
3-32 directly or indirectly displacing moderate, low, or very low income
3-33 persons or families from housing.
3-34 (c) The commissioners court in awarding a project or
3-35 proposal shall state under which guideline the award was made.
3-36 SECTION 2. This Act takes effect September 1, 1993.
3-37 SECTION 3. The importance of this legislation and the
3-38 crowded condition of the calendars in both houses create an
3-39 emergency and an imperative public necessity that the
3-40 constitutional rule requiring bills to be read on three several
3-41 days in each house be suspended, and this rule is hereby suspended.
3-42 * * * * *
3-43 Austin,
3-44 Texas
3-45 April 29, 1993
3-46 Hon. Bob Bullock
3-47 President of the Senate
3-48 Sir:
3-49 We, your Committee on Intergovernmental Relations to which was
3-50 referred S.B. No. 991, have had the same under consideration, and I
3-51 am instructed to report it back to the Senate with the
3-52 recommendation that it do not pass, but that the Committee
3-53 Substitute adopted in lieu thereof do pass and be printed.
3-54 Armbrister,
3-55 Chairman
3-56 * * * * *
3-57 WITNESSES
3-58 FOR AGAINST ON
3-59 ___________________________________________________________________
3-60 Name: Grady Prestage x
3-61 Representing: Fort Bend County Commissioner
3-62 City: Fresno
3-63 -------------------------------------------------------------------
3-64 Name: John Henneberger x
3-65 Representing: Texas Low Income Housing Coalit.
3-66 City: Austin
3-67 -------------------------------------------------------------------
3-68 Name: David Mintz x
3-69 Representing: Texas Apartment Association
3-70 City: Austin
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