1-1 By: Barrientos S.B. No. 1356
1-2 (In the Senate - Filed April 12, 1993; April 13, 1993, read
1-3 first time and referred to Committee on State Affairs; May 5, 1993,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 10, Nays 0; May 5, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Harris of Dallas x
1-9 Rosson x
1-10 Carriker x
1-11 Henderson x
1-12 Leedom x
1-13 Lucio x
1-14 Luna x
1-15 Nelson x
1-16 Patterson x
1-17 Shelley x
1-18 Sibley x
1-19 West x
1-20 Whitmire x
1-21 COMMITTEE SUBSTITUTE FOR S.B. No. 1356 By: Lucio
1-22 A BILL TO BE ENTITLED
1-23 AN ACT
1-24 relating to the Texas Department of Housing and Community Affairs.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. Subsection (b), Section 1.01, Article 4413(501),
1-27 Revised Statutes, is amended to read as follows:
1-28 (b) It is hereby declared:
1-29 (1) that it is a goal of the state that every Texan
1-30 should have a decent, safe, and affordable living environment;
1-31 (2) that government at all levels should be involved
1-32 in assisting persons and families of low income in obtaining
1-33 decent, safe, and affordable living environments;
1-34 (3) that there exists within both rural and urban
1-35 areas of this state a shortage of sanitary and safe residential
1-36 housing at prices or rentals which persons and families of low
1-37 income and families of moderate income can afford; that this
1-38 shortage has contributed to and will contribute to the creation and
1-39 persistence of substandard living conditions and is inimical to the
1-40 health, welfare, and prosperity of the residents and communities of
1-41 this state;
1-42 (4) that it is imperative that the supply of
1-43 affordable and standard condition residential housing for such
1-44 persons and families and for persons and families displaced by
1-45 public actions or natural disaster be increased;
1-46 (5) that private enterprise and investment are often
1-47 unable to provide in sufficient quantities the needed construction
1-48 or rehabilitation of sanitary and safe residential housing at
1-49 prices or rentals which persons and families of low income and
1-50 families of moderate income can afford and to provide sufficient
1-51 long-term mortgage financing for residential housing for occupancy
1-52 by such persons and families; <and>
1-53 (6) that for profit and nonprofit private enterprise
1-54 and investment should be encouraged to develop land and to build
1-55 and to rehabilitate residential housing for such persons and
1-56 families, and that private financing be supplemented by financing
1-57 as provided in this article in order to help prevent the creation
1-58 and recurrence of substandard living conditions and to assist in
1-59 their permanent elimination throughout this state; and
1-60 (7) that the development and diversification of the
1-61 economy, the elimination of unemployment or underemployment, and
1-62 the development or expansion of commerce in this state should be
1-63 encouraged.
1-64 SECTION 2. Subdivisions (6), (17), and (18), Section 1.02,
1-65 Article 4413(501), Revised Statutes, are amended to read as
1-66 follows:
1-67 (6) "Federal government" means the United States of
1-68 America or any department, division, agency, or instrumentality,
2-1 corporate or otherwise, of the United States of America, including
2-2 the Resolution Trust Corporation.
2-3 (17) "Persons and families of low income" means
2-4 persons and families earning not more than 80 percent of the area
2-5 median income or applicable federal poverty line, as determined
2-6 under Section 3.10 <3.13> of this article.
2-7 (18) "Persons and families of very low income" means
2-8 persons and families earning not more than 60 percent of the area
2-9 median income or applicable federal poverty line, as determined
2-10 under Section 3.10 <3.13> of this article.
2-11 SECTION 3. Subsection (n), Section 1.05, Article 4413(501),
2-12 Revised Statutes, is amended to read as follows:
2-13 (n) A person is not eligible for appointment as a public
2-14 member of the board if the person or the person's spouse:
2-15 (1) is employed by or participates in the management
2-16 of a business entity or other organization regulated by the
2-17 department or receiving funds from the department;
2-18 (2) owns or controls, directly or indirectly, more
2-19 than a 10 percent interest in a business entity or other
2-20 organization regulated by the department or receiving funds from
2-21 the department; or
2-22 (3) uses or receives a substantial amount of tangible
2-23 goods, services, or funds from the department, other than
2-24 compensation or reimbursement authorized by law for department
2-25 membership, attendance, or expenses <It shall be the duty of the
2-26 board to consult with and advise the director with respect to the
2-27 affairs and problems of local government and work of the
2-28 department. The board shall meet at least three times annually at
2-29 the call of the chairman and at such other times as the board shall
2-30 determine, the time and place of such other meetings to be fixed by
2-31 majority vote of the board. It shall be the responsibility of the
2-32 department to furnish such information, equipment and staff as is
2-33 necessary to implement the work of the board>.
2-34 SECTION 4. Section 1.06, Article 4413(501), Revised
2-35 Statutes, is amended by adding Subsection (g) to read as follows:
2-36 (g) The chairman may appoint committees composed of board
2-37 members as the chairman considers necessary to carry out the
2-38 board's duties. The board may take into account a recommendation
2-39 of a committee in making a decision under this article. A
2-40 committee is subject to the open meetings law, Chapter 271, Acts of
2-41 the 60th Legislature, Regular Session, 1967 (Article 6252-17,
2-42 Vernon's Texas Civil Statutes), and its subsequent amendments, and
2-43 the open records law, Chapter 424, Acts of the 63rd Legislature,
2-44 Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
2-45 Statutes), and its subsequent amendments.
2-46 SECTION 5. Section 1.07, Article 4413(501), Revised
2-47 Statutes, is amended to read as follows:
2-48 Sec. 1.07. General Powers of the Department. The department
2-49 is hereby granted, has, and may exercise all powers necessary or
2-50 appropriate to carry out, achieve, or effectuate the purposes of
2-51 this article, including without limitation the following powers:
2-52 (1) to sue and be sued and plead and be impleaded in
2-53 the name of the department; and it is specifically enacted that the
2-54 department is and constitutes a separate governmental agency and a
2-55 body politic and corporate of this state, acting for and on behalf
2-56 of this state;
2-57 (2) to adopt an official seal and alter same when
2-58 deemed advisable;
2-59 (3) to adopt and enforce bylaws and rules for the
2-60 conduct of its affairs not inconsistent with bylaws and this
2-61 article;
2-62 (4) to maintain an office or offices throughout the
2-63 state and appoint and determine the duties, tenure, qualifications,
2-64 and compensation of its agents, professional advisors, and
2-65 counselors, including without limitation financial consultants,
2-66 accountants, architects, engineers, real estate consultants,
2-67 appraisers, housing construction and financing experts, as are
2-68 determined necessary or advisable;
2-69 (5) to make, enter into, and enforce contracts and
2-70 agreements with the federal government, the state, any public
3-1 agency, or any person, firm, corporation, or other entity in
3-2 performing its duties and exercising its powers under this article;
3-3 to make and enter into all contracts, agreements, and other
3-4 arrangements with mortgage lenders; to designate mortgage lenders
3-5 to act for and in behalf of the department, with respect to
3-6 originating, servicing, and processing mortgage loans of the
3-7 department, under the terms and conditions agreed on between the
3-8 parties; and to provide, contract, or arrange for consolidated
3-9 processing of any aspect of a housing development in order to avoid
3-10 duplication;
3-11 (6) to do anything authorized by this article or by
3-12 contracts with the federal government, the state, any public
3-13 agency, or any person, firm, corporation, or other entity;
3-14 (7) to do all things necessary, convenient, or
3-15 desirable to carry out the powers expressly granted or necessarily
3-16 implied by this article; <and>
3-17 (8) to encourage homeless persons and persons of low
3-18 and very low income to attend educational programs of the
3-19 department and assist homeless persons and persons of low and very
3-20 low income in attending the programs;
3-21 (9) to administer federal housing, community affairs,
3-22 or community development programs, including the low income housing
3-23 tax credit program; and
3-24 (10) to establish eligibility criteria for persons and
3-25 families of low, very low, and moderate income to participate in
3-26 and benefit from programs administered by the department.
3-27 SECTION 6. Subsection (a), Section 109, Article 4413(501),
3-28 Revised Statutes, is amended to read as follows:
3-29 (a) The administrator and head of the department shall be
3-30 known as the executive director and shall be a person qualified by
3-31 training and experience to perform the duties of the office. The
3-32 director shall be appointed by the Governor with the advice and
3-33 consent of the Senate and shall serve at the pleasure of the
3-34 Governor during the Governor's terms of office. The director shall
3-35 receive a salary as provided by the Governor within authorized
3-36 appropriations. The director, as head of the department, shall:
3-37 (1) administer the work of the department;
3-38 (2) appoint and remove <officers and other> personnel
3-39 employed within the department <subject to the annual budget and
3-40 the provisions of any resolution authorizing the issuance of bonds
3-41 under this article>;
3-42 (3) submit through and with the approval of the
3-43 Governor requests for appropriations and other moneys to operate
3-44 the department;
3-45 (4) administer all moneys entrusted to the department;
3-46 (5) organize the work of the department consistent
3-47 with this article and with sound organizational management designed
3-48 to promote efficient and effective operation;
3-49 (6) administer all moneys and investments of the
3-50 department subject to department indentures and contracts, Section
3-51 3.06 of this article, and an action of the board taken under
3-52 Subdivision (4), Section 3.03, of this article <make an annual
3-53 report to the Governor and the Legislature of the department's
3-54 operations and provide such other reports as the Governor or the
3-55 Legislature shall require>; and
3-56 (7) perform such other functions as may be prescribed
3-57 by law or assigned by the Governor.
3-58 SECTION 7. Section 1.14, Article 4413(501), Revised
3-59 Statutes, is amended to read as follows:
3-60 Sec. 1.14. OFFICES AND DIVISIONS. (a) There shall be
3-61 established in the department:
3-62 (1) a community affairs division;
3-63 (2) a housing finance division; and
3-64 (3) any other divisions <division> established by the
3-65 director to carry out the duties of the department.
3-66 (b) The duties of the housing finance division shall be kept
3-67 separate and distinct from the duties of the community affairs
3-68 division and any other division established in the department. The
3-69 funds and revenues of the housing finance division shall be kept
3-70 separate from the funds and revenues of the community affairs
4-1 division and any other division, and the community affairs division
4-2 or any other division may <not> use funds or revenues of the
4-3 housing finance division only to administer housing-related
4-4 programs. The department is subject to the General Appropriations
4-5 Act <for any purpose>. Except for legislative appropriations,
4-6 funds necessary for the operation of the housing finance division,
4-7 and trustee-held funds of the department under a multifamily bond
4-8 indenture, all funds and revenue received by the housing finance
4-9 division are to be kept outside the state treasury. Legislative
4-10 appropriations to the housing finance division and operating funds
4-11 are to be deposited in the state treasury. Trustee-held funds of
4-12 the department under a multifamily bond indenture are held by the
4-13 trustee in accordance with the indenture.
4-14 (c) <In the community affairs division, the director may
4-15 establish such offices as are necessary to carry out the functions
4-16 of the department relating to community affairs, and these
4-17 functions shall include: intergovernmental cooperation, regional
4-18 and community services, rural community services, research,
4-19 economic opportunity, and education and training.>
4-20 <(d)> The director is authorized to assign functions and
4-21 duties to the various offices and divisions, to provide for
4-22 additional offices, and to reorganize the department when necessary
4-23 to improve efficiency or effectiveness.
4-24 (d) <(e)> The director may enter into reciprocal agreements
4-25 to loan or detail department employees to State agencies and
4-26 instrumentalities and to local governments.
4-27 (e) <(f)> The department shall maintain suitable
4-28 headquarters for the department and such other quarters as the
4-29 director shall deem necessary to the proper functioning of the
4-30 department.
4-31 SECTION 8. Subsection (a), Section 1.19, Article 4413(501),
4-32 Revised Statutes, is amended to read as follows:
4-33 (a) The department shall operate on a fiscal year beginning
4-34 September 1 and ending August 31. The department shall have an
4-35 audit of its books and accounts for each fiscal year by the state
4-36 auditor or by a certified public accountant. The cost of the audit
4-37 is an expense of the department. A copy of the audit shall be filed
4-38 with the governor and the legislature on or before March <January>
4-39 1 of each year, except if the audit is being made by the state
4-40 auditor and is not available by March <January> 1, it shall be
4-41 filed as soon as it is available. <Also, on or before January 1 of
4-42 each year, the department shall prepare a report of its activities
4-43 for the preceding fiscal year for the governor and the legislature.
4-44 The report shall set forth a complete operating and financial
4-45 statement.>
4-46 SECTION 9. Subsection (a), Section 1.20, Article 4413(501),
4-47 Revised Statutes, is amended to read as follows:
4-48 (a) The executive director, with the approval of the board,
4-49 shall appoint an internal auditor who reports directly to the board
4-50 and serves at the pleasure of the board <on housing finance matters
4-51 and on community affairs division matters or any other division
4-52 matters>.
4-53 SECTION 10. Section 1.21, Article 4413(501), Revised
4-54 Statutes, is amended to read as follows:
4-55 Sec. 1.21. <OUTSIDE> LEGAL COUNSEL. (a) The department
4-56 shall follow the requirements for hiring outside legal counsel that
4-57 are set out in the General Appropriations Act or in other law.
4-58 Before the department requests approval to hire outside legal
4-59 counsel from the attorney general, the department must obtain and
4-60 evaluate information regarding the affirmative action policies and
4-61 practices of proposed legal counsel. The evaluation must be
4-62 included by the department in any request made to the attorney
4-63 general for outside legal counsel.
4-64 (b) The department may hire its own in-house legal counsel.
4-65 The director shall prescribe the duties of legal counsel hired by
4-66 the department.
4-67 SECTION 11. Article 4413(501), Revised Statutes, is amended
4-68 by adding Sections 1.23 through 1.28 to read as follows:
4-69 Sec. 1.23. STATE LOW INCOME HOUSING PLAN. (a) Not later
4-70 than 100 days following the close of the fiscal year, the executive
5-1 director shall prepare and submit to the board an integrated state
5-2 low income housing plan for the upcoming year.
5-3 (b) Not later than the 30th day after the date the board
5-4 receives the plan, the board shall submit the plan to the governor
5-5 and legislature.
5-6 (c) The state low income housing plan must include:
5-7 (1) an estimate and analysis of the housing needs of
5-8 the following populations in the state:
5-9 (A) persons and families of moderate, low, and
5-10 very low income;
5-11 (B) persons with special needs; and
5-12 (C) the homeless;
5-13 (2) an annual plan for the use of all available
5-14 housing resources to address the housing needs of the populations
5-15 described by Subdivision (1) by establishing funding levels for all
5-16 housing-related programs;
5-17 (3) an estimate of the number of federally assisted
5-18 housing units available for persons and families of low and very
5-19 low income and persons with special needs in each uniform state
5-20 service region of the state;
5-21 (4) a program resource allocation plan and state rules
5-22 and policies that govern the use of all available housing resources
5-23 and target those resources to families of low and very low income
5-24 and persons with special needs;
5-25 (5) a report on the department's:
5-26 (A) monitoring of and recommendations for
5-27 further analysis by the department of the unused or underused
5-28 federal resources of other state agencies for the provision of
5-29 housing-related services and services for the homeless; and
5-30 (B) recommendations regarding the use of federal
5-31 resources by other state agencies for those services to ensure full
5-32 use by the state of all available federal resources for those
5-33 services; and
5-34 (6) strategies to provide housing for persons and
5-35 families with special needs.
5-36 Sec. 1.24. ANNUAL REPORT. (a) Not later than December 1 of
5-37 each fiscal year, the executive director shall prepare and submit
5-38 to the board an annual report of the department's activities for
5-39 the preceding fiscal year.
5-40 (b) Not later than the 30th day after the date the board
5-41 receives the report, the board shall submit the report to the
5-42 governor and legislature.
5-43 (c) The report must contain:
5-44 (1) a complete operating and financial statement of
5-45 the department;
5-46 (2) a comprehensive statement of the activities of the
5-47 department over the preceding 12-month period in addressing the
5-48 needs identified in the state low income housing plan, including:
5-49 (A) a statistical and narrative analysis of the
5-50 department's performance in addressing the housing needs of persons
5-51 and families of low and very low income;
5-52 (B) the ethnic and racial composition of
5-53 families and individuals applying for and receiving assistance from
5-54 each housing-related program operated by the department; and
5-55 (C) the department's progress in meeting the
5-56 goals established in the previous housing plan;
5-57 (3) an explanation of the efforts made by the
5-58 department to ensure the participation of persons of low income and
5-59 their community-based institutions in every aspect of department
5-60 programs that affect them;
5-61 (4) evidence that the department has made an
5-62 affirmative effort in the allocation of funds and the planning
5-63 process to ensure the involvement of persons of low income and
5-64 their community-based institutions;
5-65 (5) a statistical report delineated according to each
5-66 ethnic and racial group served by the department that indicates the
5-67 progress made by the department in implementing the state low
5-68 income housing plan in each of the uniform state service regions;
5-69 and
5-70 (6) a report on fair housing opportunities in each
6-1 housing development that receives financial assistance from the
6-2 department that includes the following information for each housing
6-3 development that contains 20 or more living units:
6-4 (A) the street address and city or county where
6-5 the property is located;
6-6 (B) the total number of units broken down by
6-7 bedroom size;
6-8 (C) the total number of units designed for
6-9 persons who are physically challenged or who have special needs and
6-10 the number of such tenants served annually as reported by each
6-11 housing sponsor;
6-12 (D) a statistical analysis of average rents
6-13 reported by region as defined in the comprehensive housing
6-14 affordability strategy;
6-15 (E) the race or ethnic makeup of each project as
6-16 reported annually by each housing sponsor;
6-17 (F) the number of units occupied by tenants
6-18 receiving government-supported housing assistance as reported by
6-19 each housing sponsor;
6-20 (G) whether the department has been notified of
6-21 a violation of the fair housing law that has been filed with the
6-22 United States Department of Housing and Urban Development, the
6-23 Commission on Human Rights, or the United States Department of
6-24 Justice;
6-25 (H) whether the development has any instances of
6-26 material noncompliance with bond indentures or deed restrictions
6-27 discovered through the normal monitoring activities and procedures
6-28 which include meeting occupancy requirements or rent restrictions
6-29 imposed by deed restriction or financing agreements.
6-30 Sec. 1.25. PREPARATION OF PLAN AND REPORT. In preparing the
6-31 state low income housing plan and report under Sections 1.23 and
6-32 1.24 of this article, the director shall:
6-33 (1) coordinate local, state, and federal housing
6-34 resources, including tax exempt housing bond financing and low
6-35 income housing tax credits;
6-36 (2) prioritize the available housing resources to
6-37 those persons who are most in need;
6-38 (3) evaluate the success of publicly supported housing
6-39 programs;
6-40 (4) survey and identify the unmet housing needs of
6-41 persons the department is required to assist;
6-42 (5) ensure that housing programs benefit a person
6-43 regardless of the person's race, ethnicity, sex, or national
6-44 origin;
6-45 (6) develop housing opportunities for persons of low
6-46 and very low income and persons with special housing needs;
6-47 (7) develop housing programs through an open, fair,
6-48 and public process;
6-49 (8) prioritize assistance in a manner that is
6-50 appropriate and consistent with the housing needs of the
6-51 populations described by Section 1.23(c)(1) of this article; and
6-52 (9) incorporate the director's recommendations that
6-53 must be consistent with the comprehensive housing affordability
6-54 strategy and performance report submitted annually by the state to
6-55 the United States Department of Housing and Urban Development.
6-56 Sec. 1.26. PUBLIC HEARINGS. (a) Before the director
6-57 submits the state low income housing plan and annual report to the
6-58 board under Sections 1.23 and 1.24 of this article, the department
6-59 shall hold a public hearing on the plan and annual report.
6-60 (b) The board shall hold a public hearing on the state low
6-61 income housing plan before the board submits the plan to the
6-62 governor and legislature under Section 1.23 of this article.
6-63 (c) The board shall include with the plan the board submits
6-64 to the governor and legislature under Section 1.23 of this article
6-65 a written report of public comments on the plan.
6-66 Sec. 1.27. INSURANCE. The board may purchase from
6-67 department funds liability insurance for the coverage of the
6-68 director and board members and officers in amounts the board
6-69 considers reasonably necessary to insure against reasonably
6-70 foreseeable liabilities and to provide for all costs of defending
7-1 against those liabilities, including court costs and attorney fees.
7-2 Sec. 1.28. TEXAS HOUSING CORPORATION. (a) The Texas
7-3 Housing Corporation on behalf of the state shall carry out the
7-4 public purposes of this article. The creation of the corporation
7-5 does not limit or impair the rights, powers, and duties of the
7-6 department provided by this article. The corporate existence of
7-7 the Texas Housing Corporation, or any similarly named corporation,
7-8 begins on the issuance of a certificate of incorporation by the
7-9 secretary of state. The members of the board serve as the board of
7-10 directors of the corporation. The corporation has the powers and
7-11 is subject to the limitations provided for the department by this
7-12 article in carrying out the public purposes of this article. The
7-13 corporation has the rights and powers of a nonprofit corporation
7-14 incorporated under the Texas Non-Profit Corporation Act (Article
7-15 1396-1.01 et seq., Vernon's Texas Civil Statutes) except to the
7-16 extent inconsistent with this section. The corporation may
7-17 contract with the department and with bond counsel, financial
7-18 advisors, or underwriters as its board of directors considers
7-19 necessary.
7-20 (b) The corporation may engage exclusively in the
7-21 performance of charitable functions and is exempt from all taxation
7-22 by this state or a municipality or other political subdivision of
7-23 this state.
7-24 (c) The corporation is a nonprofit corporation, and no part
7-25 of its net earnings remaining after payment of its expenses may
7-26 inure to any individual, firm, or corporation, except that if the
7-27 corporation's board of directors determines that sufficient
7-28 provision has been made for the full payment of the expenses,
7-29 bonds, and other obligations of the corporation, the additional net
7-30 earnings of the corporation shall be deposited to the credit of the
7-31 general revenue fund for the benefit of the department.
7-32 (d) At any time the corporation's board of directors by
7-33 written resolution may alter the structure, organization, programs,
7-34 or activities of the corporation or terminate and dissolve the
7-35 corporation, subject only to any limitation provided by the law of
7-36 the state on the impairment of contracts of the corporation and
7-37 this section.
7-38 (e) If the corporation's board of directors by resolution
7-39 determines that the purposes for which the corporation was formed
7-40 have been substantially complied with and that all bonds issued by
7-41 the corporation have been fully paid, the corporation's board of
7-42 directors shall dissolve the corporation. On dissolution, the
7-43 title to funds and properties then owned by the corporation shall
7-44 be transferred to the department.
7-45 (f) The Texas Housing Corporation, and any other corporation
7-46 whose charter specifically dedicates the corporation's activities
7-47 to the benefit of the department, shall file with the department an
7-48 annual report of the financial activity of the corporation. The
7-49 annual report shall be filed prior to the 90th day after the last
7-50 day for the corporation's fiscal year and shall be prepared in
7-51 accordance with generally accepted accounting principles. The
7-52 report must include a statement of support, revenue, and expenses
7-53 and change in fund balances, a statement of functional expenses,
7-54 and balance sheets for all funds.
7-55 SECTION 12. Subsection (a), Section 2.01, Article 4413(501),
7-56 Revised Statutes, is amended to read as follows:
7-57 (a) The department shall, through the community affairs
7-58 division or any other division, and in addition to other powers and
7-59 duties invested in it by this article or by any other law:
7-60 (1) maintain communications with local governments and
7-61 serve as their advocate at the State and federal levels;
7-62 (2) assist local governments with advisory and
7-63 technical services;
7-64 (3) provide financial aid to local governments and
7-65 combinations of local governments for programs which are authorized
7-66 such assistance;
7-67 (4) act as an information center and referral agency
7-68 for information on State and federal services and programs
7-69 affecting local government;
7-70 (5) administer, conduct, or jointly sponsor
8-1 educational and training programs for local government officials;
8-2 (6) conduct research on problems of general concern to
8-3 local governments;
8-4 (7) collect, publish, and disseminate information
8-5 useful to local government including, but not limited to, data on
8-6 local governmental finances and employment, housing, population
8-7 characteristics, and land use patterns;
8-8 (8) encourage cooperative action by local governments
8-9 where appropriate;
8-10 (9) advise and inform the Governor and the Legislature
8-11 concerning the affairs of local government and make recommendations
8-12 for necessary action;
8-13 (10) assist the Governor in the coordination of
8-14 federal and State activities affecting local governments;
8-15 (11) administer, as appropriate, State
8-16 responsibilities for programs created under the Federal Economic
8-17 Opportunity Act of 1964, any programs which may be assigned to the
8-18 department in accordance with the Omnibus Budget Reconciliation Act
8-19 of 1981, and other federal acts creating economic opportunity
8-20 programs assigned to the department;
8-21 (12) promulgate and adopt such rules and regulations
8-22 as may be necessary and proper to carry out programs and
8-23 responsibilities assigned by the Legislature or the Governor; and
8-24 (13) perform any other duties concerning local
8-25 government which may be assigned by the Legislature or the
8-26 Governor.
8-27 SECTION 13. Section 2.02, Article 4413(501), Revised
8-28 Statutes, is amended to read as follows:
8-29 Sec. 2.02. SPECIAL ADVISORY COUNCILS. The Governor or
8-30 director may, <with the advice of the director,> from time to time,
8-31 appoint <other> special advisory councils to assist the department
8-32 <board> in basic policy formulation <for the community affairs
8-33 division> or to advise on technical aspects of certain programs
8-34 <the community affairs division may administer>. Special advisory
8-35 councils are dissolved automatically on completion of the council's
8-36 stated purpose unless continued by order of the Governor or
8-37 director.
8-38 SECTION 14. Section 2.03, Article 4413(501), Revised
8-39 Statutes, is amended to read as follows:
8-40 Sec. 2.03. TRANSFERS FROM GOVERNOR. The Governor is
8-41 authorized to transfer personnel, equipment, records, obligations,
8-42 appropriations, functions, and duties of <the Division of
8-43 State-Local Relations and of other> appropriate divisions of the
8-44 Governor's office to the community affairs division or any other
8-45 division.
8-46 SECTION 15. Section 2.05, Article 4413(501), Revised
8-47 Statutes, is amended to read as follows:
8-48 Sec. 2.05. Energy Services Program for Low-Income People.
8-49 There is created within the community affairs division an office,
8-50 to operate in conjunction with the community services <service>
8-51 block grant program, to be known as the Energy Services Program for
8-52 Low-Income People having jurisdiction and responsibility for
8-53 administration of the following elements of the State Low-Income
8-54 Energy Assistance Program:
8-55 (1) the Energy Crisis Intervention Program, from
8-56 whatever sources funded; <and>
8-57 (2) the weatherization program, from whatever sources
8-58 funded; and
8-59 (3) the Home Energy Assistance Program, from whatever
8-60 sources funded.
8-61 SECTION 16. Section 2.06, Article 4413(501), Revised
8-62 Statutes, is amended to read as follows:
8-63 Sec. 2.06. ADMINISTRATION OF COMMUNITY DEVELOPMENT BLOCK
8-64 GRANT PROGRAM. The department<, through the community affairs
8-65 division,> shall, under the federal Omnibus Budget Reconciliation
8-66 Act of 1981 (Pub.L. No. 97-35) and 24 CFR, Part 570, Subpart I,
8-67 administer the state's allocation of federal funds provided under
8-68 the community development block grant nonentitlement program
8-69 authorized by Title I of the Housing and Community Development Act
8-70 of 1974 (42 U.S.C. Section 5301 et seq.).
9-1 SECTION 17. Section 2.08, Article 4413(501), Revised
9-2 Statutes, is amended to read as follows:
9-3 Sec. 2.08. Allocation sharing. The department may enter
9-4 into interagency agreements with the Texas Department of Commerce
9-5 to reimburse the Texas Department of Commerce for providing on
9-6 behalf of the department marketing and underwriting services on the
9-7 portion of the federal funds allocated by the department for
9-8 economic development activities. The department shall allocate
9-9 <transfer> not more than 20 percent of the federal funds received
9-10 by the department to the Texas Department of Commerce to be used
9-11 for economic development activities. <The federal funds
9-12 transferred to the Texas Department of Commerce include the amount
9-13 of federal funds to be used for administrative expenses in
9-14 accordance with federal law. Any income generated from the
9-15 economic development programs of the Texas Department of Commerce
9-16 remain with that agency.> The activities undertaken by <use of
9-17 funds transferred to> the Texas Department of Commerce under this
9-18 section must be approved by the department<, and all rules of the
9-19 Texas Department of Commerce relating to the funds transferred
9-20 under this section must be approved by the department>.
9-21 SECTION 18. Subsection (b), Section 3.01, Article 4413(501),
9-22 Revised Statutes, is amended to read as follows:
9-23 (b) The department, through the housing finance division or
9-24 any other division established by the director, shall administer
9-25 the federal housing funds provided to the state under the
9-26 Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
9-27 Section 12704 et seq.). The housing finance division shall adopt a
9-28 goal to apply a minimum of 25 percent of the division's total
9-29 housing funds to provide housing assistance for persons and
9-30 families of very low income.
9-31 SECTION 19. Section 3.10, Article 4413(501), Revised
9-32 Statutes, is amended to read as follows:
9-33 Sec. 3.10. AREA MEDIAN INCOME AND FEDERAL POVERTY LINE.
9-34 (a) The department may determine the median income of a person or
9-35 family for an area by using any source or methodology acceptable
9-36 under federal law or rule.
9-37 (b) The department shall use the applicable federal poverty
9-38 line in determining eligibility for each federal or state program
9-39 administered by the department that requires poverty instead of
9-40 area median income to be used as a criterion of program
9-41 eligibility.
9-42 SECTION 20. Subsections (c) and (d), Section 3.17, Article
9-43 4413(501), Revised Statutes, is amended to read as follows:
9-44 (c) The department <housing finance division> may use money
9-45 from the housing trust fund, <or> unencumbered fund balances,
9-46 appropriations, allocations, grants, gifts, or donations from the
9-47 State of Texas, the federal government, or any source, public or
9-48 private, to purchase property under this section. The division may
9-49 not use more than 10 percent of the yearly balance of the housing
9-50 trust fund to acquire real property.
9-51 (d) If property has been acquired by the department under
9-52 this section, the department <housing finance division> shall have
9-53 an independent audit conducted annually to analyze the financial
9-54 stability of the property ownership program, the cost-effectiveness
9-55 of the program, and the effectiveness of the program in serving
9-56 persons of low and very low income.
9-57 SECTION 21. Sections 1.08 and 2.04, and Subsection (c),
9-58 Section 3.13, Article 4413(501), Revised Statutes, are repealed.
9-59 SECTION 22. The executive director of the Texas Department
9-60 of Housing and Community Affairs shall submit the initial report
9-61 and state low income housing plan required under Sections 1.23 and
9-62 1.24, Article 4413(501), Revised Statutes, as added by this Act, no
9-63 later than December 1, 1994.
9-64 SECTION 23. This Act takes effect September 1, 1993.
9-65 SECTION 24. The importance of this legislation and the
9-66 crowded condition of the calendars in both houses create an
9-67 emergency and an imperative public necessity that the
9-68 constitutional rule requiring bills to be read on three several
9-69 days in each house be suspended, and this rule is hereby suspended.
9-70 * * * * *
10-1 Austin,
10-2 Texas
10-3 May 5, 1993
10-4 Hon. Bob Bullock
10-5 President of the Senate
10-6 Sir:
10-7 We, your Committee on State Affairs to which was referred S.B. No.
10-8 1356, have had the same under consideration, and I am instructed to
10-9 report it back to the Senate with the recommendation that it do not
10-10 pass, but that the Committee Substitute adopted in lieu thereof do
10-11 pass and be printed.
10-12 Harris of
10-13 Dallas, Chairman
10-14 * * * * *
10-15 WITNESSES
10-16 FOR AGAINST ON
10-17 ___________________________________________________________________
10-18 Name: Henry Flores x
10-19 Representing: Dept of Housing & Com Affairs
10-20 City: Austin
10-21 -------------------------------------------------------------------
10-22 Name: Ann Paddock x
10-23 Representing: Dept of Housing & Com Affairs
10-24 City: Austin
10-25 -------------------------------------------------------------------