By Thompson, Lewis of Tarrant H.B. No. 493
74R1658 DRH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a county housing trust fund for the construction,
1-3 preservation, or financing of low income and moderate income
1-4 housing.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle B, Title 12, Local Government Code, is
1-7 amended by adding Chapter 383 to read as follows:
1-8 CHAPTER 383. COUNTY HOUSING TRUST FUND
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 383.001. DEFINITIONS. In this chapter:
1-11 (1) "Housing project" means a work or other
1-12 undertaking:
1-13 (A) to provide decent, safe, and sanitary urban
1-14 or rural housing for persons or families of moderate, low, or very
1-15 low income, including buildings, land, equipment, or facilities;
1-16 (B) for other purposes, including the support of
1-17 infrastructure improvement, acquisition of real property, grants,
1-18 or loans, related to housing for persons or families of moderate,
1-19 low, or very low income; or
1-20 (C) to provide service related to preserving,
1-21 maintaining, or encouraging the development of housing for persons
1-22 or families of moderate, low, or very low income.
1-23 (2) "Trust fund" means the county housing trust fund.
1-24 Sec. 383.002. RULES. The commissioners court of a county by
2-1 order may adopt any rules necessary to administer this chapter in
2-2 the county.
2-3 (Sections 383.003-383.020 reserved for expansion
2-4 SUBCHAPTER B. CREATION OF TRUST FUND
2-5 Sec. 383.021. COUNTY HOUSING TRUST FUND. (a) The
2-6 commissioners court may establish a county housing trust fund to be
2-7 used in accordance with this chapter.
2-8 (b) The trust fund shall be separate from other county
2-9 revenue and may be used only for the purposes set out in this
2-10 chapter.
2-11 (c) The commissioners court may establish a county housing
2-12 trust fund fee. The fee shall be assessed as a cost and must be
2-13 paid at the time of filing with the county clerk a document
2-14 relating to the transfer of real property in the county or the
2-15 issuance of a county building permit. The fee may not exceed $10.
2-16 The county clerk shall collect the fee and deposit the funds in the
2-17 county housing trust fund.
2-18 (d) In its discretion, the commissioners court may deposit
2-19 into the trust fund any other money that is not dedicated by law
2-20 for another purpose.
2-21 Sec. 383.022. RESTRICTIONS ON TRUST FUND USE. (a) The
2-22 commissioners court may use one percent or less of the revenue
2-23 deposited in the trust fund to offset any additional administrative
2-24 costs incurred in collecting the county housing trust fund fee.
2-25 (b) Except as otherwise provided by this chapter, the money
2-26 in the trust fund may be used only in connection with an eligible
2-27 housing project as provided under Subchapter D.
3-1 (c) The commissioners court may not encumber 50 percent or
3-2 more of the principal of the trust fund.
3-3 (d) The commissioners court may expend interest of the trust
3-4 fund within one year of the date of the accrual of the interest.
3-5 Interest not expended during the one-year period shall be
3-6 considered trust fund principal. On a finding of necessity, the
3-7 commissioners court annually may expend not more than 25 percent of
3-8 the principal of the trust fund.
3-9 (e) The operation of the trust fund shall be consistent with
3-10 accounting, reporting, and investment policies of the county.
3-11 (Sections 383.023-383.040 reserved for expansion
3-12 SUBCHAPTER C. ADMINISTRATION OF TRUST FUND
3-13 Sec. 383.041. OVERSIGHT OF TRUST FUND. (a) The
3-14 commissioners court of a county that has established a trust fund
3-15 is responsible for the oversight on the use of the money of the
3-16 trust fund.
3-17 (b) The commissioners court shall approve all expenditures
3-18 from the trust fund.
3-19 Sec. 383.042. ADVISORY COMMITTEE. (a) The commissioners
3-20 court may establish a trust fund advisory committee to advise the
3-21 county on housing needs and priorities and to develop guidelines
3-22 for eligible housing projects.
3-23 (b) The commissioners court may contract with nonprofit
3-24 organizations involved in housing issues or with a county housing
3-25 finance corporation to provide any services that would be provided
3-26 by a trust fund advisory committee.
3-27 Sec. 383.043. ADMINISTRATION OF FUNDS TO HOUSING PROGRAMS.
4-1 (a) The commissioners court shall designate a county department,
4-2 an employee of a county department, or another appropriate county
4-3 employee to administer the operations of the trust fund.
4-4 (b) The employee or department designated under Subsection
4-5 (a) shall:
4-6 (1) maintain all necessary records;
4-7 (2) assist applicants for grants from the trust fund;
4-8 (3) disburse, monitor, and report on the use of trust
4-9 fund proceeds;
4-10 (4) evaluate trust fund proposals;
4-11 (5) prescribe and enforce rules necessary for the
4-12 enforcement of this chapter; and
4-13 (6) recommend guidelines to the commissioners court
4-14 regarding the award of trust fund money for eligible housing
4-15 projects.
4-16 (c) The commissioners court may contract with a municipal,
4-17 county, or regional housing authority for the provision of all or
4-18 part of the functions described by Subsection (b).
4-19 (d) Ten percent or less of trust fund money disbursed in a
4-20 one-year period may be used to pay the operating expenses or staff
4-21 costs related to the provision of services under Subsection (b) or
4-22 the administration of trust funds as described by this chapter.
4-23 (Sections 383.044-383.060 reserved for expansion
4-24 SUBCHAPTER D. ELIGIBLE PROGRAMS
4-25 Sec. 383.061. ELIGIBLE PROJECTS. Money in the trust fund
4-26 may be used only for the following purposes:
4-27 (1) as a local match to state or federal grants
5-1 related to housing projects;
5-2 (2) to support the operation of a housing project by a
5-3 county or regional housing authority;
5-4 (3) to provide interim financing for housing projects;
5-5 (4) to renovate or upgrade existing substandard
5-6 housing projects in a county;
5-7 (5) to make a loan or grant to a person or family of
5-8 moderate, low, or very low income, unit of local government,
5-9 municipal, county, or regional housing authority, or nonprofit
5-10 housing organization for housing projects;
5-11 (6) to make a loan or grant to a nonprofit housing
5-12 organization to provide technical assistance on issues related to
5-13 housing projects; or
5-14 (7) to support an existing housing project.
5-15 Sec. 383.062. APPLICATION FOR TRUST FUNDS. (a) The trust
5-16 fund shall be disbursed through an open application process. The
5-17 commissioners court shall award money from the trust fund based on
5-18 established guidelines.
5-19 (b) Guidelines adopted by the commissioners court may favor
5-20 projects that serve the greatest number of moderate, low, or very
5-21 low income persons or families or that affect the greatest number
5-22 of moderate, low, or very low income housing units.
5-23 (c) Guidelines shall be adopted by the commissioners court
5-24 not later than the 60th day before applications for the award of
5-25 money from the trust fund are due.
5-26 Sec. 383.063. GUIDELINE REQUIREMENTS. (a) A project or
5-27 proposal for which trust fund money is granted must provide one or
6-1 more of the following purposes:
6-2 (1) targets households by incorporating specific
6-3 income limits for a household benefiting from a housing project and
6-4 provides funds for a housing project designed to make housing
6-5 affordable for persons or families with incomes at or below 120
6-6 percent, at or below 80 percent, or at or below 50 percent of the
6-7 median income of a county;
6-8 (2) targets certain geographic areas of a county,
6-9 including rural areas, urban renewal areas, or slum areas;
6-10 (3) targets a specific project or proposal determined
6-11 by the commissioners court to be of immediate need; or
6-12 (4) targets a project or proposal designed to retain
6-13 affordable housing for moderate, low, and very low income
6-14 households, including projects that guarantee the units of housing
6-15 will continue to remain as affordable housing.
6-16 (b) A project granted trust funds should attempt to avoid
6-17 directly or indirectly displacing moderate, low, or very low income
6-18 persons or families from housing.
6-19 (c) The commissioners court in awarding a project or
6-20 proposal shall state under which guideline the award was made.
6-21 SECTION 2. This Act takes effect September 1, 1995.
6-22 SECTION 3. The importance of this legislation and the
6-23 crowded condition of the calendars in both houses create an
6-24 emergency and an imperative public necessity that the
6-25 constitutional rule requiring bills to be read on three several
6-26 days in each house be suspended, and this rule is hereby suspended.