By Rodriguez H.B. No. 1436
74R5981 CAG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the financing of certain residential developments by a
1-3 housing finance corporation.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 394.004, Local Government Code, is
1-6 amended to read as follows:
1-7 Sec. 394.004. Application of Chapter to Certain Residential
1-8 Developments. This chapter applies only to a residential
1-9 development:
1-10 (1) that is a qualified residential rental project as
1-11 defined by Section 142(d) of the Internal Revenue Code of 1986; or
1-12 (2) in which at least 90 percent of the development
1-13 <which> is for use by or is intended to be occupied by persons of
1-14 low and moderate income whose adjusted gross income, together with
1-15 the adjusted gross income of all persons who intend to reside with
1-16 those persons in one dwelling unit, did not for the preceding tax
1-17 year exceed the maximum amount constituting moderate income under
1-18 the housing finance corporation's rules, resolutions relating to
1-19 the issuance of bonds, or financing documents relating to the
1-20 issuance of bonds.
1-21 SECTION 2. Section 394.005, Local Government Code, is
1-22 amended to read as follows:
1-23 Sec. 394.005. APPLICATION OF CHAPTER TO PROPERTY IN CERTAIN
1-24 MUNICIPALITIES AND EXTRATERRITORIAL JURISDICTIONS. (a) This
2-1 chapter does not apply to residential developments or houses
2-2 located on property located within a municipality with a population
2-3 of 20,000 or more <more than 20,000 inhabitants as determined by
2-4 the housing finance corporation's rules, resolutions relating to
2-5 the issuance of bonds, or financing documents relating to the
2-6 issuance of bonds>, unless the governing body of the municipality
2-7 approves the application of the chapter to that property.
2-8 (b) A housing finance corporation incorporated to act on
2-9 behalf of a municipality is authorized to exercise all powers under
2-10 this chapter relating to property located in the municipality or
2-11 the municipality's extraterritorial jurisdiction, as defined by
2-12 Section 42.021.
2-13 SECTION 3. Section 394.902(b), Local Government Code, is
2-14 amended to read as follows:
2-15 (b) Instead of requiring a reservation of units as required
2-16 under Subsection (a), the housing finance corporation may collect a
2-17 fee equal to one-tenth percent of the total principal amount of the
2-18 loan made for the multifamily residential development. The
2-19 corporation shall collect the fee from the person who receives the
2-20 loan at the time the loan is delivered. Immediately after the
2-21 receipt of the fee, the corporation shall remit the fee to the
2-22 municipality in which the residential development is located, or if
2-23 the municipality does not have a housing program for elderly
2-24 persons, the Texas Department on Aging. Funds <The department
2-25 shall deposit all funds> received under this subsection by the
2-26 Texas Department on Aging shall be deposited to the credit of a
2-27 special account in the general revenue fund. Funds in the special
3-1 account or received by the municipality may be used only to assist
3-2 in obtaining housing for elderly persons or families in which an
3-3 elderly person is the head of a household.
3-4 SECTION 4. Subchapter P, Chapter 2306, Government Code, is
3-5 amended by adding Section 2306.358 to read as follows:
3-6 Sec. 2306.358. RESTRICTIONS ON ISSUANCE. The department may
3-7 not issue revenue bonds to provide money to carry out a purpose,
3-8 power, or duty of the housing finance division for a multifamily
3-9 residential development that is within the boundaries of a
3-10 municipality or county that incorporated a housing finance
3-11 corporation to act on the political subdivision's behalf under
3-12 Chapter 394, Local Government Code unless the governing body of the
3-13 political subdivision and the board of directors of the local
3-14 housing finance corporation adopt a resolution allowing the
3-15 department to exercise its powers within the boundaries of the
3-16 political subdivision.
3-17 SECTION 5. The importance of this legislation and the
3-18 crowded condition of the calendars in both houses create an
3-19 emergency and an imperative public necessity that the
3-20 constitutional rule requiring bills to be read on three several
3-21 days in each house be suspended, and this rule is hereby suspended,
3-22 and that this Act take effect and be in force from and after its
3-23 passage, and it is so enacted.