By: Barrientos S.B. No. 1356
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the Texas Department of Housing and Community Affairs.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Subsection (b), Section 1.01, Article 4413(501),
1-4 Revised Statutes, is amended to read as follows:
1-5 (b) It is hereby declared:
1-6 (1) that it is a goal of the state that every Texan
1-7 should have a decent, safe, and affordable living environment;
1-8 (2) that government at all levels should be involved
1-9 in assisting persons and families of low income in obtaining
1-10 decent, safe, and affordable living environments;
1-11 (3) that there exists within both rural and urban
1-12 areas of this state a shortage of sanitary and safe residential
1-13 housing at prices or rentals which persons and families of low
1-14 income and families of moderate income can afford; that this
1-15 shortage has contributed to and will contribute to the creation and
1-16 persistence of substandard living conditions and is inimical to the
1-17 health, welfare, and prosperity of the residents and communities of
1-18 this state;
1-19 (4) that it is imperative that the supply of
1-20 affordable and standard condition residential housing for such
1-21 persons and families and for persons and families displaced by
1-22 public actions or natural disaster be increased;
1-23 (5) that private enterprise and investment are often
1-24 unable to provide in sufficient quantities the needed construction
2-1 or rehabilitation of sanitary and safe residential housing at
2-2 prices or rentals which persons and families of low income and
2-3 families of moderate income can afford and to provide sufficient
2-4 long-term mortgage financing for residential housing for occupancy
2-5 by such persons and families; <and>
2-6 (6) that for profit and nonprofit private enterprise
2-7 and investment should be encouraged to develop land and to build
2-8 and to rehabilitate residential housing for such persons and
2-9 families, and that private financing be supplemented by financing
2-10 as provided in this article in order to help prevent the creation
2-11 and recurrence of substandard living conditions and to assist in
2-12 their permanent elimination throughout this state; and
2-13 (7) that the development and diversification of the
2-14 economy, the elimination of unemployment or underemployment, and
2-15 the development or expansion of commerce in this state should be
2-16 encouraged.
2-17 SECTION 2. Subdivisions (6), (17), and (18), Section 1.02,
2-18 Article 4413(501), Revised Statutes, are amended to read as
2-19 follows:
2-20 (6) "Federal government" means the United States of
2-21 America or any department, division, agency, or instrumentality,
2-22 corporate or otherwise, of the United States of America, including
2-23 the Resolution Trust Corporation.
2-24 (17) "Persons and families of low income" means
2-25 persons and families earning not more than 80 percent of the area
2-26 median income or applicable federal poverty line, as determined
2-27 under Section 3.10 <3.13> of this article.
3-1 (18) "Persons and families of very low income" means
3-2 persons and families earning not more than 60 percent of the area
3-3 median income or applicable federal poverty line, as determined
3-4 under Section 3.10 <3.13> of this article.
3-5 SECTION 3. Subsection (n), Section 1.05, Article 4413(501),
3-6 Revised Statutes, is amended to read as follows:
3-7 (n) A person is not eligible for appointment as a public
3-8 member of the board if the person or the person's spouse:
3-9 (1) is employed by or participates in the management
3-10 of a business entity or other organization regulated by the
3-11 department or receiving funds from the department;
3-12 (2) owns or controls, directly or indirectly, more
3-13 than a 10 percent interest in a business entity or other
3-14 organization regulated by the department or receiving funds from
3-15 the department; or
3-16 (3) uses or receives a substantial amount of tangible
3-17 goods, services, or funds from the department, other than
3-18 compensation or reimbursement authorized by law for department
3-19 membership, attendance, or expenses <It shall be the duty of the
3-20 board to consult with and advise the director with respect to the
3-21 affairs and problems of local government and work of the
3-22 department. The board shall meet at least three times annually at
3-23 the call of the chairman and at such other times as the board shall
3-24 determine, the time and place of such other meetings to be fixed by
3-25 majority vote of the board. It shall be the responsibility of the
3-26 department to furnish such information, equipment and staff as is
3-27 necessary to implement the work of the board>.
4-1 SECTION 4. Section 1.06, Article 4413(501), Revised
4-2 Statutes, is amended by adding Subsection (g) to read as follows:
4-3 (g) The chairman may appoint committees composed of board
4-4 members as the chairman considers necessary to carry out the
4-5 board's duties. The board may take into account a recommendation
4-6 of a committee in making a decision under this article. A
4-7 committee is subject to the open meetings law, Chapter 271, Acts of
4-8 the 60th Legislature, Regular Session, 1967 (Article 6252-17,
4-9 Vernon's Texas Civil Statutes), and its subsequent amendments, and
4-10 the open records law, Chapter 424, Acts of the 63rd Legislature,
4-11 Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
4-12 Statutes), and its subsequent amendments.
4-13 SECTION 5. Section 1.07, Article 4413(501), Revised
4-14 Statutes, is amended to read as follows:
4-15 Sec. 1.07. General Powers of the Department. The department
4-16 is hereby granted, has, and may exercise all powers necessary or
4-17 appropriate to carry out, achieve, or effectuate the purposes of
4-18 this article, including without limitation the following powers:
4-19 (1) to sue and be sued and plead and be impleaded in
4-20 the name of the department; and it is specifically enacted that the
4-21 department is and constitutes a separate governmental agency and a
4-22 body politic and corporate of this state, acting for and on behalf
4-23 of this state;
4-24 (2) to adopt an official seal and alter same when
4-25 deemed advisable;
4-26 (3) to adopt and enforce bylaws and rules for the
4-27 conduct of its affairs not inconsistent with bylaws and this
5-1 article;
5-2 (4) to maintain an office or offices throughout the
5-3 state and appoint and determine the duties, tenure, qualifications,
5-4 and compensation of its agents, professional advisors, and
5-5 counselors, including without limitation financial consultants,
5-6 accountants, architects, engineers, real estate consultants,
5-7 appraisers, housing construction and financing experts, as are
5-8 determined necessary or advisable;
5-9 (5) to make, enter into, and enforce contracts and
5-10 agreements with the federal government, the state, any public
5-11 agency, or any person, firm, corporation, or other entity in
5-12 performing its duties and exercising its powers under this article;
5-13 to make and enter into all contracts, agreements, and other
5-14 arrangements with mortgage lenders; to designate mortgage lenders
5-15 to act for and in behalf of the department, with respect to
5-16 originating, servicing, and processing mortgage loans of the
5-17 department, under the terms and conditions agreed on between the
5-18 parties; and to provide, contract, or arrange for consolidated
5-19 processing of any aspect of a housing development in order to avoid
5-20 duplication;
5-21 (6) to do anything authorized by this article or by
5-22 contracts with the federal government, the state, any public
5-23 agency, or any person, firm, corporation, or other entity;
5-24 (7) to do all things necessary, convenient, or
5-25 desirable to carry out the powers expressly granted or necessarily
5-26 implied by this article; <and>
5-27 (8) to encourage homeless persons and persons of low
6-1 and very low income to attend educational programs of the
6-2 department and assist homeless persons and persons of low and very
6-3 low income in attending the programs;
6-4 (9) to administer federal housing, community affairs,
6-5 or community development programs, including the low income housing
6-6 tax credit program; and
6-7 (10) to establish eligibility criteria for persons and
6-8 families of low, very low, and moderate income to participate in
6-9 and benefit from programs administered by the department.
6-10 SECTION 6. Subsection (a), Section 1.09, Article 4413(501),
6-11 Revised Statutes, is amended to read as follows:
6-12 (a) The administrator and head of the department shall be
6-13 known as the executive director and shall be a person qualified by
6-14 training and experience to perform the duties of the office. The
6-15 director shall be appointed by the Governor with the advice and
6-16 consent of the Senate and shall serve at the pleasure of the
6-17 Governor during the Governor's terms of office. The director shall
6-18 receive a salary as provided by the Governor within authorized
6-19 appropriations. The director, as head of the department, shall:
6-20 (1) administer the work of the department;
6-21 (2) appoint and remove <officers and other> personnel
6-22 employed within the department <subject to the annual budget and
6-23 the provisions of any resolution authorizing the issuance of bonds
6-24 under this article>;
6-25 (3) submit through and with the approval of the
6-26 Governor requests for appropriations and other moneys to operate
6-27 the department;
7-1 (4) administer all moneys entrusted to the department;
7-2 (5) organize the work of the department consistent
7-3 with this article and with sound organizational management designed
7-4 to promote efficient and effective operation;
7-5 (6) administer all moneys and investments of the
7-6 department subject to department indentures and contracts, Section
7-7 3.06 of this article, and an action of the board taken under
7-8 Subdivision (4), Section 3.03, of this article <make an annual
7-9 report to the Governor and the Legislature of the department's
7-10 operations and provide such other reports as the Governor or the
7-11 Legislature shall require>; and
7-12 (7) perform such other functions as may be prescribed
7-13 by law or assigned by the Governor.
7-14 SECTION 7. Section 1.14, Article 4413(501), Revised
7-15 Statutes, is amended to read as follows:
7-16 Sec. 1.14. OFFICES AND DIVISIONS. (a) There shall be
7-17 established in the department:
7-18 (1) a community affairs division;
7-19 (2) a housing finance division; and
7-20 (3) any other divisions <division> established by the
7-21 director to carry out the duties of the department.
7-22 (b) The duties of the housing finance division shall be kept
7-23 separate and distinct from the duties of the community affairs
7-24 division and any other division established in the department. The
7-25 funds and revenues of the housing finance division shall be kept
7-26 separate from the funds and revenues of the community affairs
7-27 division and any other division, and the community affairs division
8-1 or any other division may <not> use funds or revenues of the
8-2 housing finance division only to administer housing-related
8-3 programs. The department is subject to the General Appropriations
8-4 Act <for any purpose>. Except for legislative appropriations,
8-5 funds necessary for the operation of the housing finance division,
8-6 and trustee-held funds of the department under a multifamily bond
8-7 indenture, all funds and revenue received by the housing finance
8-8 division are to be kept outside the state treasury. Legislative
8-9 appropriations to the housing finance division and operating funds
8-10 are to be deposited in the state treasury. Trustee-held funds of
8-11 the department under a multifamily bond indenture are held by the
8-12 trustee in accordance with the indenture.
8-13 (c) <In the community affairs division, the director may
8-14 establish such offices as are necessary to carry out the functions
8-15 of the department relating to community affairs, and these
8-16 functions shall include: intergovernmental cooperation, regional
8-17 and community services, rural community services, research,
8-18 economic opportunity, and education and training.>
8-19 <(d)> The director is authorized to assign functions and
8-20 duties to the various offices and divisions, to provide for
8-21 additional offices, and to reorganize the department when necessary
8-22 to improve efficiency or effectiveness.
8-23 (d) <(e)> The director may enter into reciprocal agreements
8-24 to loan or detail department employees to State agencies and
8-25 instrumentalities and to local governments.
8-26 (e) <(f)> The department shall maintain suitable
8-27 headquarters for the department and such other quarters as the
9-1 director shall deem necessary to the proper functioning of the
9-2 department.
9-3 SECTION 8. Subsection (a), Section 1.19, Article 4413(501),
9-4 Revised Statutes, is amended to read as follows:
9-5 (a) The department shall operate on a fiscal year beginning
9-6 September 1 and ending August 31. The department shall have an
9-7 audit of its books and accounts for each fiscal year by the state
9-8 auditor or by a certified public accountant. The cost of the audit
9-9 is an expense of the department. A copy of the audit shall be filed
9-10 with the governor and the legislature on or before March <January>
9-11 1 of each year, except if the audit is being made by the state
9-12 auditor and is not available by March <January> 1, it shall be
9-13 filed as soon as it is available. <Also, on or before January 1 of
9-14 each year, the department shall prepare a report of its activities
9-15 for the preceding fiscal year for the governor and the legislature.
9-16 The report shall set forth a complete operating and financial
9-17 statement.>
9-18 SECTION 9. Subsection (a), Section 1.20, Article 4413(501),
9-19 Revised Statutes, is amended to read as follows:
9-20 (a) The executive director, with the approval of the board,
9-21 shall appoint an internal auditor who reports directly to the board
9-22 and serves at the pleasure of the board <on housing finance matters
9-23 and on community affairs division matters or any other division
9-24 matters>.
9-25 SECTION 10. Section 1.21, Article 4413(501), Revised
9-26 Statutes, is amended to read as follows:
9-27 Sec. 1.21. <OUTSIDE> LEGAL COUNSEL. (a) The department
10-1 shall follow the requirements for hiring outside legal counsel that
10-2 are set out in the General Appropriations Act or in other law.
10-3 Before the department requests approval to hire outside legal
10-4 counsel from the attorney general, the department must obtain and
10-5 evaluate information regarding the affirmative action policies and
10-6 practices of proposed legal counsel. The evaluation must be
10-7 included by the department in any request made to the attorney
10-8 general for outside legal counsel.
10-9 (b) The department may hire its own in-house legal counsel.
10-10 The director shall prescribe the duties of legal counsel hired by
10-11 the department.
10-12 SECTION 11. Article 4413(501), Revised Statutes, is amended
10-13 by adding Sections 1.23 through 1.28 to read as follows:
10-14 Sec. 1.23. STATE LOW INCOME HOUSING PLAN. (a) Not later
10-15 than 100 days following the close of the fiscal year, the executive
10-16 director shall prepare and submit to the board an integrated state
10-17 low income housing plan for the upcoming year.
10-18 (b) Not later than the 30th day after the date the board
10-19 receives the plan, the board shall submit the plan to the governor
10-20 and legislature.
10-21 (c) The state low income housing plan must include:
10-22 (1) an estimate and analysis of the housing needs of
10-23 the following populations in the state:
10-24 (A) persons and families of moderate, low, and
10-25 very low income;
10-26 (B) persons with special needs; and
10-27 (C) the homeless;
11-1 (2) an annual plan for the use of all available
11-2 housing resources to address the housing needs of the populations
11-3 described by Subdivision (1) by establishing funding levels for all
11-4 housing-related programs;
11-5 (3) an estimate of the number of federally assisted
11-6 housing units available for persons and families of low and very
11-7 low income and persons with special needs in each uniform state
11-8 service region of the state;
11-9 (4) a program resource allocation plan and state rules
11-10 and policies that govern the use of all available housing resources
11-11 and target those resources to families of low and very low income
11-12 and persons with special needs;
11-13 (5) a report on the department's:
11-14 (A) monitoring of and recommendations for
11-15 further analysis by the department of the unused or underused
11-16 federal resources of other state agencies for the provision of
11-17 housing-related services and services for the homeless; and
11-18 (B) recommendations regarding the use of federal
11-19 resources by other state agencies for those services to ensure full
11-20 use by the state of all available federal resources for those
11-21 services; and
11-22 (6) strategies to provide housing for persons and
11-23 families with special needs.
11-24 Sec. 1.24. ANNUAL REPORT. (a) Not later than 100 days
11-25 following the close of the fiscal year, the executive director
11-26 shall prepare and submit to the board an annual report of the
11-27 department's activities for the preceding fiscal year.
12-1 (b) Not later than the 30th day after the date the board
12-2 receives the report, the board shall submit the report to the
12-3 governor and legislature.
12-4 (c) The report must contain:
12-5 (1) a complete operating and financial statement of
12-6 the department;
12-7 (2) a comprehensive statement of the activities of the
12-8 department over the preceding 12-month period in addressing the
12-9 needs identified in the state low income housing plan, including:
12-10 (A) a statistical and narrative analysis of the
12-11 department's performance in addressing the housing needs of persons
12-12 and families of low and very low income;
12-13 (B) the ethnic and racial composition of
12-14 families and individuals applying for and receiving assistance from
12-15 each housing-related program operated by the department; and
12-16 (C) the department's progress in meeting the
12-17 goals established in the previous housing plan;
12-18 (3) an explanation of the efforts made by the
12-19 department to ensure the participation of persons of low income and
12-20 their community-based institutions in every aspect of department
12-21 programs that affect them;
12-22 (4) evidence that the department has made an
12-23 affirmative effort in the allocation of funds and the planning
12-24 process to ensure the involvement of persons of low income and
12-25 their community-based institutions;
12-26 (5) a statistical report delineated according to each
12-27 ethnic and racial group served by the department that indicates the
13-1 progress made by the department in implementing the state low
13-2 income housing plan in each of the uniform state service regions;
13-3 and
13-4 (6) a report on fair housing opportunities in each
13-5 housing development that receives financial assistance from the
13-6 department that includes the following information for each housing
13-7 development that contains 20 or more living units:
13-8 (A) the street address and city or county where
13-9 the property is located;
13-10 (B) the total number of units broken down by
13-11 bedroom size;
13-12 (C) the total number of units designed for
13-13 persons who are physically challenged or who have special needs and
13-14 the number of such tenants served annually as reported by each
13-15 housing sponsor;
13-16 (D) a statistical analysis of average rents
13-17 reported by region as defined in the comprehensive housing
13-18 affordability strategy;
13-19 (E) the race or ethnic makeup of each project as
13-20 reported annually by each housing sponsor;
13-21 (F) the number of units occupied by tenants
13-22 receiving government-supported housing assistance as reported by
13-23 each housing sponsor;
13-24 (G) whether the department has been notified of
13-25 a violation of the fair housing law that has been filed with the
13-26 United States Department of Housing and Urban Development, the
13-27 Commission on Human Rights, or the United States Department of
14-1 Justice;
14-2 (H) whether the development has any instances of
14-3 material noncompliance with bond indentures or deed restrictions
14-4 discovered through the normal monitoring activities and procedures
14-5 which include meeting occupancy requirements or rent restrictions
14-6 imposed by deed restriction or financing agreements.
14-7 Sec. 1.25. PREPARATION OF PLAN AND REPORT. In preparing the
14-8 state low income housing plan and report under Sections 1.23 and
14-9 1.24 of this article, the director shall:
14-10 (1) coordinate local, state, and federal housing
14-11 resources, including tax exempt housing bond financing and low
14-12 income housing tax credits;
14-13 (2) prioritize the available housing resources to
14-14 those persons who are most in need;
14-15 (3) evaluate the success of publicly supported housing
14-16 programs;
14-17 (4) survey and identify the unmet housing needs of
14-18 persons the department is required to assist;
14-19 (5) ensure that housing programs benefit a person
14-20 regardless of the person's race, ethnicity, sex, or national
14-21 origin;
14-22 (6) develop housing opportunities for persons of low
14-23 and very low income and persons with special housing needs;
14-24 (7) develop housing programs through an open, fair,
14-25 and public process;
14-26 (8) prioritize assistance in a manner that is
14-27 appropriate and consistent with the housing needs of the
15-1 populations described by Section 1.23(c)(1) of this article; and
15-2 (9) incorporate the director's recommendations that
15-3 must be consistent with the comprehensive housing affordability
15-4 strategy and performance report submitted annually by the state to
15-5 the United States Department of Housing and Urban Development.
15-6 Sec. 1.26. PUBLIC HEARINGS. (a) Before the director
15-7 submits the state low income housing plan and annual report to the
15-8 board under Sections 1.23 and 1.24 of this article, the department
15-9 shall hold a public hearing on the plan and annual report.
15-10 (b) The board shall hold a public hearing on the state low
15-11 income housing plan before the board submits the plan to the
15-12 governor and legislature under Section 1.23 of this article.
15-13 (c) The board shall include with the plan the board submits
15-14 to the governor and legislature under Section 1.23 of this article
15-15 a written report of public comments on the plan.
15-16 Sec. 1.27. INSURANCE. The board may purchase from
15-17 department funds liability insurance for the coverage of the
15-18 director and board members and officers in amounts the board
15-19 considers reasonably necessary to insure against reasonably
15-20 foreseeable liabilities and to provide for all costs of defending
15-21 against those liabilities, including court costs and attorney fees.
15-22 Sec. 1.28. TEXAS HOUSING CORPORATION. (a) The Texas
15-23 Housing Corporation on behalf of the state shall carry out the
15-24 public purposes of this article. The creation of the corporation
15-25 does not limit or impair the rights, powers, and duties of the
15-26 department provided by this article. The corporate existence of
15-27 the Texas Housing Corporation, or any similarly named corporation,
16-1 begins on the issuance of a certificate of incorporation by the
16-2 secretary of state. The members of the board serve as the board of
16-3 directors of the corporation. The corporation has the powers and
16-4 is subject to the limitations provided for the department by this
16-5 article in carrying out the public purposes of this article. The
16-6 corporation has the rights and powers of a nonprofit corporation
16-7 incorporated under the Texas Non-Profit Corporation Act (Article
16-8 1396-1.01 et seq., Vernon's Texas Civil Statutes) except to the
16-9 extent inconsistent with this section. The corporation may
16-10 contract with the department and with bond counsel, financial
16-11 advisors, or underwriters as its board of directors considers
16-12 necessary.
16-13 (b) The corporation may engage exclusively in the
16-14 performance of charitable functions and is exempt from all taxation
16-15 by this state or a municipality or other political subdivision of
16-16 this state.
16-17 (c) The corporation is a nonprofit corporation, and no part
16-18 of its net earnings remaining after payment of its expenses may
16-19 inure to any individual, firm, or corporation, except that if the
16-20 corporation's board of directors determines that sufficient
16-21 provision has been made for the full payment of the expenses,
16-22 bonds, and other obligations of the corporation, the additional net
16-23 earnings of the corporation shall be deposited to the credit of the
16-24 general revenue fund for the benefit of the department.
16-25 (d) At any time the corporation's board of directors by
16-26 written resolution may alter the structure, organization, programs,
16-27 or activities of the corporation or terminate and dissolve the
17-1 corporation, subject only to any limitation provided by the law of
17-2 the state on the impairment of contracts of the corporation and
17-3 this section.
17-4 (e) If the corporation's board of directors by resolution
17-5 determines that the purposes for which the corporation was formed
17-6 have been substantially complied with and that all bonds issued by
17-7 the corporation have been fully paid, the corporation's board of
17-8 directors shall dissolve the corporation. On dissolution, the
17-9 title to funds and properties then owned by the corporation shall
17-10 be transferred to the department.
17-11 (f) The Texas Housing Corporation, and any other corporation
17-12 whose charter specifically dedicates the corporation's activities
17-13 to the benefit of the department, shall file with the department an
17-14 annual report of the financial activity of the corporation. The
17-15 annual report shall be filed prior to the 90th day after the last
17-16 day for the corporation's fiscal year and shall be prepared in
17-17 accordance with generally accepted accounting principles. The
17-18 report must include a statement of support, revenue, and expenses
17-19 and change in fund balances, a statement of functional expenses,
17-20 and balance sheets for all funds.
17-21 SECTION 12. Subsection (a), Section 2.01, Article 4413(501),
17-22 Revised Statutes, is amended to read as follows:
17-23 (a) The department shall, through the community affairs
17-24 division or any other division, and in addition to other powers and
17-25 duties invested in it by this article or by any other law:
17-26 (1) maintain communications with local governments and
17-27 serve as their advocate at the State and federal levels;
18-1 (2) assist local governments with advisory and
18-2 technical services;
18-3 (3) provide financial aid to local governments and
18-4 combinations of local governments for programs which are authorized
18-5 such assistance;
18-6 (4) act as an information center and referral agency
18-7 for information on State and federal services and programs
18-8 affecting local government;
18-9 (5) administer, conduct, or jointly sponsor
18-10 educational and training programs for local government officials;
18-11 (6) conduct research on problems of general concern to
18-12 local governments;
18-13 (7) collect, publish, and disseminate information
18-14 useful to local government including, but not limited to, data on
18-15 local governmental finances and employment, housing, population
18-16 characteristics, and land use patterns;
18-17 (8) encourage cooperative action by local governments
18-18 where appropriate;
18-19 (9) advise and inform the Governor and the Legislature
18-20 concerning the affairs of local government and make recommendations
18-21 for necessary action;
18-22 (10) assist the Governor in the coordination of
18-23 federal and State activities affecting local governments;
18-24 (11) administer, as appropriate, State
18-25 responsibilities for programs created under the Federal Economic
18-26 Opportunity Act of 1964, any programs which may be assigned to the
18-27 department in accordance with the Omnibus Budget Reconciliation Act
19-1 of 1981, and other federal acts creating economic opportunity
19-2 programs assigned to the department;
19-3 (12) promulgate and adopt such rules and regulations
19-4 as may be necessary and proper to carry out programs and
19-5 responsibilities assigned by the Legislature or the Governor; and
19-6 (13) perform any other duties concerning local
19-7 government which may be assigned by the Legislature or the
19-8 Governor.
19-9 SECTION 13. Section 2.02, Article 4413(501), Revised
19-10 Statutes, is amended to read as follows:
19-11 Sec. 2.02. SPECIAL ADVISORY COUNCILS. The Governor or
19-12 director may, <with the advice of the director,> from time to time,
19-13 appoint <other> special advisory councils to assist the department
19-14 <board> in basic policy formulation <for the community affairs
19-15 division> or to advise on technical aspects of certain programs
19-16 <the community affairs division may administer>. Special advisory
19-17 councils are dissolved automatically on completion of the council's
19-18 stated purpose unless continued by order of the Governor or
19-19 director.
19-20 SECTION 14. Section 2.03, Article 4413(501), Revised
19-21 Statutes, is amended to read as follows:
19-22 Sec. 2.03. TRANSFERS FROM GOVERNOR. The Governor is
19-23 authorized to transfer personnel, equipment, records, obligations,
19-24 appropriations, functions, and duties of <the Division of
19-25 State-Local Relations and of other> appropriate divisions of the
19-26 Governor's office to the community affairs division or any other
19-27 division.
20-1 SECTION 15. Section 2.05, Article 4413(501), Revised
20-2 Statutes, is amended to read as follows:
20-3 Sec. 2.05. Energy Services Program for Low-Income People.
20-4 There is created within the community affairs division an office,
20-5 to operate in conjunction with the community services <service>
20-6 block grant program, to be known as the Energy Services Program for
20-7 Low-Income People having jurisdiction and responsibility for
20-8 administration of the following elements of the State Low-Income
20-9 Energy Assistance Program:
20-10 (1) the Energy Crisis Intervention Program, from
20-11 whatever sources funded; <and>
20-12 (2) the weatherization program, from whatever sources
20-13 funded; and
20-14 (3) the Home Energy Assistance Program, from whatever
20-15 sources funded.
20-16 SECTION 16. Section 2.06, Article 4413(501), Revised
20-17 Statutes, is amended to read as follows:
20-18 Sec. 2.06. ADMINISTRATION OF COMMUNITY DEVELOPMENT BLOCK
20-19 GRANT PROGRAM. The department<, through the community affairs
20-20 division,> shall, under the federal Omnibus Budget Reconciliation
20-21 Act of 1981 (Pub.L. No. 97-35) and 24 CFR, Part 570, Subpart I,
20-22 administer the state's allocation of federal funds provided under
20-23 the community development block grant nonentitlement program
20-24 authorized by Title I of the Housing and Community Development Act
20-25 of 1974 (42 U.S.C. Section 5301 et seq.).
20-26 SECTION 17. Section 2.08, Article 4413(501), Revised
20-27 Statutes, is amended to read as follows:
21-1 Sec. 2.08. Allocation sharing. The department may enter
21-2 into interagency agreements with the Texas Department of Commerce
21-3 to reimburse the Texas Department of Commerce for providing on
21-4 behalf of the department marketing and underwriting services on the
21-5 portion of the federal funds allocated by the department for
21-6 economic development activities. The department shall allocate
21-7 <transfer> not more than 20 percent of the federal funds received
21-8 by the department to the Texas Department of Commerce to be used
21-9 for economic development activities. <The federal funds
21-10 transferred to the Texas Department of Commerce include the amount
21-11 of federal funds to be used for administrative expenses in
21-12 accordance with federal law. Any income generated from the
21-13 economic development programs of the Texas Department of Commerce
21-14 remain with that agency.> The activities undertaken by <use of
21-15 funds transferred to> the Texas Department of Commerce under this
21-16 section must be approved by the department<, and all rules of the
21-17 Texas Department of Commerce relating to the funds transferred
21-18 under this section must be approved by the department>.
21-19 SECTION 18. Subsection (b), Section 3.01, Article 4413(501),
21-20 Revised Statutes, is amended to read as follows:
21-21 (b) The department, through the housing finance division or
21-22 any other division established by the director, shall administer
21-23 the federal housing funds provided to the state under the
21-24 Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
21-25 Section 12704 et seq.). The housing finance division shall adopt a
21-26 goal to apply a minimum of 25 percent of the division's total
21-27 housing funds to provide housing assistance for persons and
22-1 families of very low income.
22-2 SECTION 19. Section 3.10, Article 4413(501), Revised
22-3 Statutes, is amended to read as follows:
22-4 Sec. 3.10. AREA MEDIAN INCOME AND FEDERAL POVERTY LINE.
22-5 (a) The department may determine the median income of a person or
22-6 family for an area by using any source or methodology acceptable
22-7 under federal law or rule.
22-8 (b) The department shall use the applicable federal poverty
22-9 line in determining eligibility for each federal or state program
22-10 administered by the department that requires poverty instead of
22-11 area median income to be used as a criterion of program
22-12 eligibility.
22-13 SECTION 20. Subsections (c) and (d), Section 3.17, Article
22-14 4413(501), Revised Statutes, is amended to read as follows:
22-15 (c) The department <housing finance division> may use money
22-16 from the housing trust fund, <or> unencumbered fund balances,
22-17 appropriations, allocations, grants, gifts, or donations from the
22-18 State of Texas, the federal government, or any source, public or
22-19 private, to purchase property under this section. The division may
22-20 not use more than 10 percent of the yearly balance of the housing
22-21 trust fund to acquire real property.
22-22 (d) If property has been acquired by the department under
22-23 this section, the department <housing finance division> shall have
22-24 an independent audit conducted annually to analyze the financial
22-25 stability of the property ownership program, the cost-effectiveness
22-26 of the program, and the effectiveness of the program in serving
22-27 persons of low and very low income.
23-1 SECTION 21. Sections 1.08 and 2.04, and Subsection (c),
23-2 Section 3.13, Article 4413(501), Revised Statutes, are repealed.
23-3 SECTION 22. The executive director of the Texas Department
23-4 of Housing and Community Affairs shall submit the initial report
23-5 and state low income housing plan required under Sections 1.23 and
23-6 1.24, Article 4413(501), Revised Statutes, as added by this Act, no
23-7 later than December 1, 1994.
23-8 SECTION 23. This Act takes effect September 1, 1993.
23-9 SECTION 24. The importance of this legislation and the
23-10 crowded condition of the calendars in both houses create an
23-11 emergency and an imperative public necessity that the
23-12 constitutional rule requiring bills to be read on three several
23-13 days in each house be suspended, and this rule is hereby suspended.