By: Barrientos S.B. No. 1356
73R7279 CLG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Texas Department of Housing and Community Affairs.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 1.01(b), Article 4413(501), Revised
1-5 Statutes, is amended to read as follows:
1-6 (b) It is hereby declared:
1-7 (1) that it is a goal of the state that every Texan
1-8 should have a decent, safe, and affordable living environment;
1-9 (2) that government at all levels should be involved
1-10 in assisting persons and families of low income in obtaining
1-11 decent, safe, and affordable living environments;
1-12 (3) that there exists within both rural and urban
1-13 areas of this state a shortage of sanitary and safe residential
1-14 housing at prices or rentals which persons and families of low
1-15 income and families of moderate income can afford; that this
1-16 shortage has contributed to and will contribute to the creation and
1-17 persistence of substandard living conditions and is inimical to the
1-18 health, welfare, and prosperity of the residents and communities of
1-19 this state;
1-20 (4) that it is imperative that the supply of
1-21 affordable and standard condition residential housing for such
1-22 persons and families and for persons and families displaced by
1-23 public actions or natural disaster be increased;
1-24 (5) that private enterprise and investment are often
2-1 unable to provide in sufficient quantities the needed construction
2-2 or rehabilitation of sanitary and safe residential housing at
2-3 prices or rentals which persons and families of low income and
2-4 families of moderate income can afford and to provide sufficient
2-5 long-term mortgage financing for residential housing for occupancy
2-6 by such persons and families; <and>
2-7 (6) that for profit and nonprofit private enterprise
2-8 and investment should be encouraged to develop land and to build
2-9 and to rehabilitate residential housing for such persons and
2-10 families, and that private financing be supplemented by financing
2-11 as provided in this article in order to help prevent the creation
2-12 and recurrence of substandard living conditions and to assist in
2-13 their permanent elimination throughout this state; and
2-14 (7) that the development and diversification of the
2-15 economy, the elimination of unemployment or underemployment, and
2-16 the development or expansion of commerce in this state should be
2-17 encouraged.
2-18 SECTION 2. Subdivisions (6), (17), and (18), Section 1.02,
2-19 Article 4413(501), Revised Statutes, are amended to read as
2-20 follows:
2-21 (6) "Federal government" means the United States of
2-22 America or any department, division, agency, or instrumentality,
2-23 corporate or otherwise, of the United States of America, including
2-24 the Resolution Trust Corporation.
2-25 (17) "Persons and families of low income" means
2-26 persons and families earning not more than 80 percent of the area
2-27 median income or applicable federal poverty line, as determined
3-1 under Section 3.10 <3.13> of this article.
3-2 (18) "Persons and families of very low income" means
3-3 persons and families earning not more than 60 percent of the area
3-4 median income or applicable federal poverty line, as determined
3-5 under Section 3.10 <3.13> of this article.
3-6 SECTION 3. Section 1.05(n), Article 4413(501), Revised
3-7 Statutes, is amended to read as follows:
3-8 (n) A person is not eligible for appointment as a public
3-9 member of the board if the person or the person's spouse:
3-10 (1) is employed by or participates in the management
3-11 of a business entity or other organization regulated by the
3-12 department or receiving funds from the department;
3-13 (2) owns or controls, directly or indirectly, more
3-14 than a 10 percent interest in a business entity or other
3-15 organization regulated by the department or receiving funds from
3-16 the department; or
3-17 (3) uses or receives a substantial amount of tangible
3-18 goods, services, or funds from the department, other than
3-19 compensation or reimbursement authorized by law for department
3-20 membership, attendance, or expenses <It shall be the duty of the
3-21 board to consult with and advise the director with respect to the
3-22 affairs and problems of local government and work of the
3-23 department. The board shall meet at least three times annually at
3-24 the call of the chairman and at such other times as the board shall
3-25 determine, the time and place of such other meetings to be fixed by
3-26 majority vote of the board. It shall be the responsibility of the
3-27 department to furnish such information, equipment and staff as is
4-1 necessary to implement the work of the board>.
4-2 SECTION 4. Section 1.06, Article 4413(501), Revised
4-3 Statutes, is amended by adding Subsection (g) to read as follows:
4-4 (g) The chairman may appoint committees composed of board
4-5 members as the chairman considers necessary to carry out the
4-6 board's duties. The board may take into account a recommendation
4-7 of a committee in making a decision under this article. A
4-8 committee is subject to the open meetings law, Chapter 271, Acts of
4-9 the 60th Legislature, Regular Session, 1967 (Article 6252-17,
4-10 Vernon's Texas Civil Statutes), and its subsequent amendments, and
4-11 the open records law, Chapter 424, Acts of the 63rd Legislature,
4-12 Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
4-13 Statutes), and its subsequent amendments.
4-14 SECTION 5. Section 1.07, Article 4413(501), Revised
4-15 Statutes, is amended to read as follows:
4-16 Sec. 1.07. General Powers of the Department. The department
4-17 is hereby granted, has, and may exercise all powers necessary or
4-18 appropriate to carry out, achieve, or effectuate the purposes of
4-19 this article, including without limitation the following powers:
4-20 (1) to sue and be sued and plead and be impleaded in
4-21 the name of the department; and it is specifically enacted that the
4-22 department is and constitutes a separate governmental agency and a
4-23 body politic and corporate of this state, acting for and on behalf
4-24 of this state;
4-25 (2) to adopt an official seal and alter same when
4-26 deemed advisable;
4-27 (3) to adopt and enforce bylaws and rules for the
5-1 conduct of its affairs not inconsistent with bylaws and this
5-2 article;
5-3 (4) to maintain an office or offices throughout the
5-4 state and appoint and determine the duties, tenure, qualifications,
5-5 and compensation of its agents, professional advisors, and
5-6 counselors, including without limitation financial consultants,
5-7 accountants, architects, engineers, real estate consultants,
5-8 appraisers, housing construction and financing experts, as are
5-9 determined necessary or advisable;
5-10 (5) to make, enter into, and enforce contracts and
5-11 agreements with the federal government, the state, any public
5-12 agency, or any person, firm, corporation, or other entity in
5-13 performing its duties and exercising its powers under this article;
5-14 to make and enter into all contracts, agreements, and other
5-15 arrangements with mortgage lenders; to designate mortgage lenders
5-16 to act for and in behalf of the department, with respect to
5-17 originating, servicing, and processing mortgage loans of the
5-18 department, under the terms and conditions agreed on between the
5-19 parties; and to provide, contract, or arrange for consolidated
5-20 processing of any aspect of a housing development in order to avoid
5-21 duplication;
5-22 (6) to do anything authorized by this article or by
5-23 contracts with the federal government, the state, any public
5-24 agency, or any person, firm, corporation, or other entity;
5-25 (7) to do all things necessary, convenient, or
5-26 desirable to carry out the powers expressly granted or necessarily
5-27 implied by this article; <and>
6-1 (8) to encourage homeless persons and persons of low
6-2 and very low income to attend educational programs of the
6-3 department and assist homeless persons and persons of low and very
6-4 low income in attending the programs;
6-5 (9) to administer federal housing or community
6-6 development programs, including the Low Income Housing Tax Credit
6-7 Program; and
6-8 (10) to establish eligibility criteria for persons and
6-9 families of low, very low, and moderate income to participate in
6-10 and benefit from programs administered by the housing finance
6-11 division.
6-12 SECTION 6. Section 1.09(a), Article 4413(501), Revised
6-13 Statutes, is amended to read as follows:
6-14 (a) The administrator and head of the department shall be
6-15 known as the executive director and shall be a person qualified by
6-16 training and experience to perform the duties of the office. The
6-17 director shall be appointed by the board <Governor with the advice
6-18 and consent of the Senate> and shall serve at the pleasure of the
6-19 board <Governor during the Governor's terms of office>. The
6-20 director shall receive a salary as provided by the board <Governor>
6-21 within authorized appropriations. The director, as head of the
6-22 department, shall:
6-23 (1) administer the work of the department;
6-24 (2) appoint and remove <officers and other> personnel
6-25 employed within the department <subject to the annual budget and
6-26 the provisions of any resolution authorizing the issuance of bonds
6-27 under this article>;
7-1 (3) submit through and with the approval of the board
7-2 <Governor> requests for appropriations and other moneys to operate
7-3 the department;
7-4 (4) administer all moneys entrusted to the department;
7-5 (5) organize the work of the department consistent
7-6 with this article and with sound organizational management designed
7-7 to promote efficient and effective operation;
7-8 (6) administer all money and investments of the
7-9 department subject to department indentures and contracts, Section
7-10 3.06 of this article, and an action of the board taken under
7-11 Subdivision (4), Section 3.03, of this article <make an annual
7-12 report to the Governor and the Legislature of the department's
7-13 operations and provide such other reports as the Governor or the
7-14 Legislature shall require>; and
7-15 (7) perform such other functions as may be prescribed
7-16 by law or assigned by the board <Governor>.
7-17 SECTION 7. Sections 1.14(a) and (b), Article 4413(501),
7-18 Revised Statutes, are amended to read as follows:
7-19 (a) There shall be established in the department:
7-20 (1) a community affairs division;
7-21 (2) a housing finance division; and
7-22 (3) any other divisions <division> established by the
7-23 director to carry out the duties of the department.
7-24 (b) The duties of the housing finance division shall be kept
7-25 separate and distinct from the duties of the community affairs
7-26 division and any other division established in the department. The
7-27 funds and revenues of the housing finance division shall be kept
8-1 separate from the funds and revenues of the community affairs
8-2 division and any other division, and the community affairs division
8-3 or any other division may <not> use funds or revenues of the
8-4 housing finance division only to administer housing-related
8-5 programs. The department is subject to the General Appropriations
8-6 Act <for any purpose>. Except for legislative appropriations and
8-7 trustee-held funds of the department under a multifamily bond
8-8 indenture, all funds and revenue received by the housing finance
8-9 division are to be kept outside the state treasury. Legislative
8-10 appropriations to the housing finance division are to be deposited
8-11 in the state treasury. Trustee-held funds of the department under
8-12 a multifamily bond indenture are held by the trustee in accordance
8-13 with the indenture.
8-14 SECTION 8. Section 1.19(a), Article 4413(501), Revised
8-15 Statutes, is amended to read as follows:
8-16 (a) The department shall operate on a fiscal year beginning
8-17 September 1 and ending August 31. The department shall have an
8-18 audit of its books and accounts for each fiscal year by the state
8-19 auditor or by a certified public accountant. The cost of the audit
8-20 is an expense of the department. A copy of the audit shall be
8-21 filed with the governor and the legislature on or before January 1
8-22 of each year, except if the audit is being made by the state
8-23 auditor and is not available by January 1, it shall be filed as
8-24 soon as it is available. <Also, on or before January 1 of each
8-25 year, the department shall prepare a report of its activities for
8-26 the preceding fiscal year for the governor and the legislature.
8-27 The report shall set forth a complete operating and financial
9-1 statement.>
9-2 SECTION 9. Section 1.20(a), Article 4413(501), Revised
9-3 Statutes, is amended to read as follows:
9-4 (a) The executive director, with the approval of the board,
9-5 shall appoint an internal auditor who reports directly to the board
9-6 and serves at the pleasure of the board <on housing finance matters
9-7 and on community affairs division matters or any other division
9-8 matters>.
9-9 SECTION 10. Section 1.21, Article 4413(501), Revised
9-10 Statutes, is amended to read as follows:
9-11 Sec. 1.21. <Outside> Legal Counsel. (a) The department
9-12 shall follow the requirements for hiring outside legal counsel that
9-13 are set out in the General Appropriations Act or in other law.
9-14 Before the department requests approval to hire outside legal
9-15 counsel from the attorney general, the department must obtain and
9-16 evaluate information regarding the affirmative action policies and
9-17 practices of proposed legal counsel. The evaluation must be
9-18 included by the department in any request made to the attorney
9-19 general for outside legal counsel.
9-20 (b) The department may hire its own in-house legal counsel.
9-21 The board shall prescribe the duties of the legal counsel hired by
9-22 the department.
9-23 SECTION 11. Article 4413(501), Revised Statutes, is amended
9-24 by adding Sections 1.23-1.27 to read as follows:
9-25 Sec. 1.23. STATE LOW INCOME HOUSING PLAN. (a) Not later
9-26 than December 1 of each year, the executive director shall prepare
9-27 and submit to the board an integrated state low income housing plan
10-1 for the upcoming year.
10-2 (b) Not later than the 30th day after the date the board
10-3 receives the plan, the board shall submit the plan to the governor
10-4 and legislature.
10-5 (c) The state low income housing plan must include:
10-6 (1) an estimate and analysis of the housing needs of
10-7 the following populations in the state:
10-8 (A) families of moderate, low, and very low
10-9 income and other low income families;
10-10 (B) persons with special needs; and
10-11 (C) the homeless;
10-12 (2) an annual plan for the use of all available
10-13 housing resources to address the housing needs of the populations
10-14 described by Subdivision (1) by establishing funding levels for all
10-15 housing-related programs;
10-16 (3) an estimate of the number of federally assisted
10-17 housing units available for low, very low, and other low income
10-18 families and persons with special needs in each uniform state
10-19 services region of the state;
10-20 (4) a program resource allocation plan and state rules
10-21 and policies that govern the use of all available housing resources
10-22 and to target those resources to families of low and very low
10-23 income, other low income families, and persons with special needs;
10-24 (5) a report on the department's:
10-25 (A) monitoring of and recommendations for
10-26 further analysis by the department of the unused or underused
10-27 federal resources of other state agencies for the provision of
11-1 housing-related services and services for the homeless; and
11-2 (B) recommendations regarding the use of federal
11-3 resources by other state agencies for those services to ensure full
11-4 use by the state of all available federal resources for those
11-5 services; and
11-6 (6) strategies to provide housing for persons and
11-7 families with special needs.
11-8 Sec. 1.24. ANNUAL REPORT. (a) Not later than December 1 of
11-9 each fiscal year, the executive director shall prepare and submit
11-10 to the board an annual report of the department's activities for
11-11 the preceding fiscal year.
11-12 (b) Not later than the 30th day after the date the board
11-13 receives the report, the board shall submit the report to the
11-14 governor and legislature.
11-15 (c) The report must contain:
11-16 (1) a complete operating and financial statement of
11-17 the department;
11-18 (2) a comprehensive statement of the activities of the
11-19 department over the preceding 12-month period in addressing the
11-20 needs identified in the state low income housing plan, including:
11-21 (A) a quantitative and qualitative analysis of
11-22 the department's performance in addressing the housing needs of
11-23 families of low and very low income and other low income families;
11-24 (B) the ethnic and racial composition of
11-25 families and individuals applying for and receiving assistance from
11-26 each housing-related program operated by the department; and
11-27 (C) the department's progress in meeting the
12-1 goals established in the previous housing plan;
12-2 (3) an explanation of the efforts made by the
12-3 department to ensure the participation of persons of low income and
12-4 their community-based institutions in every aspect of department
12-5 programs that affect them;
12-6 (4) evidence that the department has made an
12-7 affirmative effort in the allocation of funds and the planning
12-8 process to ensure the involvement of persons of low income and
12-9 their community-based institutions;
12-10 (5) a statistical report delineated according to each
12-11 ethnic and racial group served by the department that indicates the
12-12 progress made by the department in implementing the state low
12-13 income housing plan in each of the uniform state services regions;
12-14 (6) a statistical report, based on reports required to
12-15 be filed by local and regional bond issuers with the state, of
12-16 loans made through tax exempt mortgage revenue bonds by an entity
12-17 that issues those bonds under the authority of the state that
12-18 includes for each bond issued:
12-19 (A) the name of the issuing entity;
12-20 (B) the amount of and cost of the issuance;
12-21 (C) the number of loans and value of loans by
12-22 race or ethnic origin;
12-23 (D) the census tract in which the loans were
12-24 issued; and
12-25 (E) whether the loans were issued for the
12-26 purchase of housing units located in census tracts targeted for
12-27 assistance under rules of the United States Department of the
13-1 Treasury; and
13-2 (7) a report on fair housing opportunities in housing
13-3 developments that receive financial assistance from the department
13-4 that includes the following information for each housing unit in
13-5 each multifamily property that contains four or more living units
13-6 that receive financial assistance from the department:
13-7 (A) the street address and city or county where
13-8 the property is located;
13-9 (B) the number of bedrooms in the unit;
13-10 (C) whether the unit is accessible by a person
13-11 with a disability;
13-12 (D) the monthly rent charged by the owner of the
13-13 property and whether the rent includes the payment of utilities;
13-14 (E) the race or ethnic origin of the head of the
13-15 household who resides in the unit;
13-16 (F) the number of persons residing in the unit
13-17 who are younger than 18 years of age;
13-18 (G) whether the unit is occupied by a single
13-19 parent household;
13-20 (H) whether the unit is occupied by a person who
13-21 is physically or mentally disabled;
13-22 (I) whether the unit is occupied by a person or
13-23 family participating in the existing housing program, housing
13-24 voucher program, or other government-supported rent supplement
13-25 program;
13-26 (J) the source and amount of public financial
13-27 assistance provided by the department to a person in the unit;
14-1 (K) the name and ethnic or national origin of
14-2 the owner of the unit;
14-3 (L) whether a complaint of a violation of the
14-4 fair housing law has been filed with the United States Department
14-5 of Housing and Urban Development, the Texas Commission on Human
14-6 Rights, or the United States Department of Justice against the
14-7 owner of the unit or the owner's management agent during the
14-8 preceding year by a person who resides in or is seeking to reside
14-9 in the unit and the status or result of such complaints; and
14-10 (M) whether the unit is required to be reserved
14-11 or occupied by an individual or family with an income limited to a
14-12 certain level under the terms of the financial assistance provided
14-13 by the department to the owner of the unit and whether the unit
14-14 meets those restrictions.
14-15 Sec. 1.25. PREPARATION OF PLAN AND REPORT. In preparing the
14-16 state low income housing plan and report under Sections 1.23 and
14-17 1.24 of this article, the director shall:
14-18 (1) coordinate local, state, and federal housing
14-19 resources, including tax exempt housing bond financing and low
14-20 income housing tax credits;
14-21 (2) prioritize the available housing resources to
14-22 those persons who are most in need;
14-23 (3) evaluate the success of publicly supported housing
14-24 programs;
14-25 (4) survey and identify the unmet housing needs of
14-26 persons the department is required to assist;
14-27 (5) ensure that housing programs benefit a person
15-1 regardless of the person's race, ethnicity, sex, or national
15-2 origin;
15-3 (6) develop housing opportunities for persons of low
15-4 and very low income and persons with special housing needs;
15-5 (7) develop housing programs through an open, fair,
15-6 and public process;
15-7 (8) prioritize assistance in a manner that is
15-8 appropriate and consistent with the housing needs of the
15-9 populations described by Section 1.23(c)(1) of this article; and
15-10 (9) incorporate the director's recommendations that
15-11 must be consistent with the comprehensive housing affordability
15-12 strategy and performance report submitted annually by the state to
15-13 the United States Department of Housing and Urban Development.
15-14 Sec. 1.26. PUBLIC HEARINGS. (a) Before the director
15-15 submits the state low income housing plan and annual report to the
15-16 board under Sections 1.23 and 1.24 of this article, the department
15-17 shall hold a public hearing on the plan and annual report.
15-18 (b) The board shall hold a public hearing on the state low
15-19 income housing plan before the board submits the plan to the
15-20 governor and legislature under Section 1.23 of this article.
15-21 (c) The board shall include with the plan the board submits
15-22 to the governor and legislature under Section 1.23 of this article
15-23 a written report of public comments on the plan.
15-24 Sec. 1.27. INSURANCE. The board may purchase from
15-25 department funds liability insurance for the coverage of the
15-26 director and board members and officers in amounts the board
15-27 considers reasonably necessary to insure against reasonably
16-1 foreseeable liabilities and to provide for all costs of defending
16-2 against those liabilities, including court costs and attorney's
16-3 fees.
16-4 SECTION 12. Section 2.05, Article 4413(501), Revised
16-5 Statutes, is amended to read as follows:
16-6 Sec. 2.05. ENERGY SERVICES PROGRAM FOR LOW-INCOME PEOPLE.
16-7 There is created within the community affairs division an office,
16-8 to operate in conjunction with the community services <service>
16-9 block grant program, to be known as the Energy Services Program for
16-10 Low-Income People having jurisdiction and responsibility for
16-11 administration of the following elements of the State Low-Income
16-12 Energy Assistance Program:
16-13 (1) the Energy Crisis Intervention Program, from
16-14 whatever sources funded; <and>
16-15 (2) the weatherization program, from whatever sources
16-16 funded; and
16-17 (3) the Home Energy Assistance Program, from whatever
16-18 sources funded.
16-19 SECTION 13. Section 2.08, Article 4413(501), Revised
16-20 Statutes, is amended to read as follows:
16-21 Sec. 2.08. ALLOCATION SHARING. The department may enter
16-22 into interagency agreements with the Texas Department of Commerce
16-23 to reimburse the Texas Department of Commerce for providing on
16-24 behalf of the department marketing and underwriting services on the
16-25 portion of the federal funds allocated by the department for
16-26 economic development activities. The department shall allocate
16-27 <transfer> not more than 20 percent of the federal funds received
17-1 by the department to the Texas Department of Commerce to be used
17-2 for economic development activities. <The federal funds
17-3 transferred to the Texas Department of Commerce include the amount
17-4 of federal funds to be used for administrative expenses in
17-5 accordance with federal law. Any income generated from the
17-6 economic development programs of the Texas Department of Commerce
17-7 remain with that agency.> The activities undertaken by <use of
17-8 funds transferred to> the Texas Department of Commerce under this
17-9 section must be approved by the department<, and all rules of the
17-10 Texas Department of Commerce relating to the funds transferred
17-11 under this section must be approved by the department>.
17-12 SECTION 14. Section 3.01(b), Article 4413(501), Revised
17-13 Statutes, is amended to read as follows:
17-14 (b) The department, through the housing finance division or
17-15 any other division established by the director, shall administer
17-16 the federal housing funds provided to the state under the
17-17 Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
17-18 Section 12704 et seq.) <shall adopt a goal to apply a minimum of 25
17-19 percent of the division's total housing funds to provide housing
17-20 assistance for persons and families of very low income>.
17-21 SECTION 15. Section 3.10, Article 4413(501), Revised
17-22 Statutes, is amended to read as follows:
17-23 Sec. 3.10. AREA MEDIAN INCOME AND FEDERAL POVERTY LINE. (a)
17-24 The department may determine the median income of a person or
17-25 family for an area by using any source or methodology acceptable
17-26 under federal law or rule.
17-27 (b) The department shall use the applicable federal poverty
18-1 line in determining eligibility for each federal or state program
18-2 administered by the department that requires poverty instead of
18-3 area median income to be used as a criterion of program
18-4 eligibility.
18-5 SECTION 16. Sections 1.08 and 3.13(c), Article 4413(501),
18-6 Revised Statutes, are repealed.
18-7 SECTION 17. The executive director of the Texas Department
18-8 of Housing and Community Affairs who is serving on the effective
18-9 date of this Act is considered an appointee of the board of
18-10 directors of the Texas Department of Housing and Community Affairs.
18-11 SECTION 18. The executive director of the Texas Department
18-12 of Housing and Community Affairs shall submit the initial report
18-13 and state low income housing plan required under Sections 1.23 and
18-14 1.24, Article 4413(501), Revised Statutes, as added by this Act,
18-15 not later than December 1, 1994.
18-16 SECTION 19. This Act takes effect September 1, 1993.
18-17 SECTION 20. The importance of this legislation and the
18-18 crowded condition of the calendars in both houses create an
18-19 emergency and an imperative public necessity that the
18-20 constitutional rule requiring bills to be read on three several
18-21 days in each house be suspended, and this rule is hereby suspended.