By Hill H.B. No. 2953
74R5916 MJW-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the operations, powers, and duties of the Texas
1-3 Department of Housing and Community Affairs.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2306.002, Government Code, is amended to
1-6 read as follows:
1-7 Sec. 2306.002. POLICY. (a) The legislature finds that:
1-8 (1) every resident of this state should have a decent,
1-9 safe, and affordable living environment; <and>
1-10 (2) government at all levels should be involved in
1-11 assisting individuals and families of low income in obtaining a
1-12 decent, safe, and affordable living environment; and
1-13 (3) the development and diversification of the
1-14 economy, the elimination of unemployment or underemployment, and
1-15 the development or expansion of commerce in this state should be
1-16 encouraged.
1-17 (b) The highest priority of the department is to provide
1-18 assistance to individuals and families of low and very low income
1-19 who are not adequately assisted by private enterprise or other
1-20 governmental programs so that they may obtain affordable housing or
1-21 other services and programs offered by the department.
1-22 SECTION 2. Section 2306.004, Government Code, is amended to
1-23 read as follows:
1-24 Sec. 2306.004. DEFINITIONS. In this chapter:
2-1 (1) "Board" means the governing board of the
2-2 department.
2-3 (2) "Bond" means an evidence of indebtedness or other
2-4 obligation, regardless of the source of payment, issued by the
2-5 department under Section 2306.351 et seq. <Subchapter P>, including
2-6 a bond, note, or bond or revenue anticipation note, regardless of
2-7 whether the obligation is general or special, negotiable or
2-8 nonnegotiable, in bearer or registered form, in certified or
2-9 book-entry form, in temporary or permanent form, or with or without
2-10 interest coupons.
2-11 (3) "Department" means the Texas Department of Housing
2-12 and Community Affairs.
2-13 (4) "Director" means the executive director of the
2-14 department.
2-15 (5) "Economically depressed or blighted area" means an
2-16 area:
2-17 (A) that has been determined by the department
2-18 <housing finance division> to be a qualified census tract or an
2-19 area of chronic economic distress under Section 103A, Internal
2-20 Revenue Code of 1954 (26 U.S.C. Section 103A); or
2-21 (B) established in a municipality that has a
2-22 substantial number of substandard, slum, deteriorated, or
2-23 deteriorating structures and that suffers from a high relative rate
2-24 of unemployment<; or>
2-25 <(C) that has been designed and included in a
2-26 tax increment district created under Chapter 695, Acts of the 66th
2-27 Legislature, Regular Session, 1979 (Article 1066d, Vernon's Texas
3-1 Civil Statutes)>.
3-2 (6) "Elderly individual" means an individual 60 years
3-3 of age or older.
3-4 (7) "Family <of moderate income>" means all
3-5 individuals living in the same household <a family:>
3-6 <(A) that is determined by the board to require
3-7 assistance, taking into account:>
3-8 <(i) the amount of the total income
3-9 available for housing needs of the individuals and families;>
3-10 <(ii) the size of the family;>
3-11 <(iii) the cost and condition of available
3-12 housing facilities;>
3-13 <(iv) the ability of the individuals and
3-14 families to compete successfully in the private housing market and
3-15 to pay the amounts required by private enterprise for sanitary,
3-16 decent, and safe housing; and>
3-17 <(v) standards established for various
3-18 federal programs determining eligibility based on income; and>
3-19 <(B) that does not qualify as a family of low
3-20 income>.
3-21 (8) "Federal government" means the United States of
3-22 America and includes any corporate or other instrumentality of the
3-23 United States of America, including the Resolution Trust
3-24 Corporation.
3-25 (9) "Federal mortgage" means a mortgage loan for
3-26 residential housing:
3-27 (A) that is made by the federal government; or
4-1 (B) for which a commitment to make has been
4-2 given by the federal government.
4-3 (10) "Federally assisted new communities" means
4-4 federally assisted areas that receive or will receive assistance in
4-5 the form of loan guarantees under Title X of the National Housing
4-6 Act (12 U.S.C. Section 1701 et seq.), and a portion of that
4-7 federally assisted area has received grants under Section 107(a)(1)
4-8 of the Housing and Community Development Act of 1974, as amended
4-9 (42 U.S.C. Section 5301 et seq.).
4-10 (11) "Federally insured mortgage" means a mortgage
4-11 loan for residential housing that:
4-12 (A) is insured or guaranteed by the federal
4-13 government; or
4-14 (B) the federal government has committed to
4-15 insure or guarantee.
4-16 (12) "Housing development" means a development that
4-17 may include:
4-18 (A) property or work or a project, building,
4-19 structure, facility, or undertaking, whether existing, new
4-20 construction, remodeling, improvement, or rehabilitation, that
4-21 meets or is designed to meet minimum property standards required by
4-22 the department and that is financed under the provisions of this
4-23 chapter for the primary purpose of providing sanitary, decent, and
4-24 safe dwelling accommodations for rent, lease, use, or purchase by
4-25 individuals and families of low and very low income and families of
4-26 moderate income in need of housing;
4-27 (B) <. The term includes:>
5-1 <(A)> buildings, structures, land, equipment,
5-2 facilities, or other real or personal properties that are
5-3 necessary, convenient, or desirable appurtenances, including
5-4 streets, water, sewers, utilities, parks, site preparation,
5-5 landscaping, stores, offices, and other nonhousing facilities, such
5-6 as administrative, community, and recreational facilities the
5-7 department determines to be necessary, convenient, or desirable
5-8 appurtenances; or <and>
5-9 (C) <(B)> single and multifamily dwellings in
5-10 rural and urban areas.
5-11 (13) "Housing sponsor" means:
5-12 (A) an individual, including an individual or
5-13 family of low and very low income or family of moderate income, a
5-14 local government, a public housing authority, a community action
5-15 agency, a joint venture, partnership, limited partnership, trust,
5-16 firm, corporation, or a cooperative that is approved by the
5-17 department as qualified to own, construct, acquire, rehabilitate,
5-18 operate, manage, or maintain a housing development, subject to the
5-19 regulatory powers of the department and other terms and conditions
5-20 in this chapter; or
5-21 (B) in an economically depressed or blighted
5-22 area, or in a federally assisted new community located within a
5-23 home-rule municipality, the term may include an individual or
5-24 family whose income exceeds the moderate income level if at least
5-25 90 percent of the total mortgage amount available under a mortgage
5-26 revenue bond issue is designated for individuals and families of
5-27 low income or families of moderate income.
6-1 (14) "Individuals and families of low income" means
6-2 individuals and families earning not more than 80 percent of the
6-3 area median income or applicable federal poverty line, as
6-4 determined under either Section 2306.123 or Section 2306.1231.
6-5 (15) "Individuals and families of very low income"
6-6 means individuals and families earning not more than 60 percent of
6-7 the area median income or applicable federal poverty line, as
6-8 determined under either Section 2306.123 or Section 2306.1231.
6-9 (16) "Land development" means:
6-10 (A) acquiring land for residential housing
6-11 construction; and
6-12 (B) making, installing, or constructing
6-13 nonresidential improvements that the department determines are
6-14 necessary or desirable for a housing development to be financed by
6-15 the department, including:
6-16 (i) waterlines and water supply
6-17 installations;
6-18 (ii) sewer lines and sewage disposal
6-19 installations;
6-20 (iii) steam, gas, and electric lines and
6-21 installations; and
6-22 (iv) roads, streets, curbs, gutters, and
6-23 sidewalks, whether on or off the site.
6-24 (17) "Local government" means a county, municipality,
6-25 special district, or any other political subdivision of the state,
6-26 a public, nonprofit housing finance corporation created under
6-27 Chapter 394, Local Government Code, or a combination of those
7-1 entities.
7-2 (18) "Moderate income" means the income level
7-3 specified by the applicable federal program or established by the
7-4 board.
7-5 (19) "Mortgage" means an <interest-bearing>
7-6 obligation, including a mortgage, mortgage deed, bond, note, deed
7-7 of trust, or other instrument, that is a lien:
7-8 (A) on real property; or
7-9 (B) on a leasehold under a lease having a
7-10 remaining term that, at the time the lien is acquired, does not
7-11 expire until after the maturity date of the <interest-bearing>
7-12 obligation secured by the lien.
7-13 (20) <(19)> "Mortgage lender" means a bank, trust
7-14 company, savings bank, mortgage company, mortgage banker, credit
7-15 union, national banking association, savings and loan association,
7-16 life insurance company, or other financial institution authorized
7-17 to transact business in this state and approved as a mortgage
7-18 lender by the department or a local government, public housing
7-19 authority, or nonprofit corporation.
7-20 (21) <(20)> "Mortgage loan" means an
7-21 <interest-bearing> obligation secured by a mortgage.
7-22 (22) <(21)> "Municipality" includes only a
7-23 municipality in this state.
7-24 (23) <(22)> "Public agency" means an agency, board,
7-25 authority, department, commission, political subdivision, municipal
7-26 corporation, district, public corporation, body politic, or
7-27 instrumentality of this state, including a county, municipality,
8-1 housing authority, state-supported institution of higher education,
8-2 school district, junior college, other district or authority, or
8-3 other type of governmental entity of this state.
8-4 (24) <(23)> "Real estate owned contractor" means a
8-5 person required to meet the obligations of a contract with the
8-6 department <housing finance division> for managing and marketing
8-7 foreclosed property.
8-8 (25) <(24)> "Real property" means land, including
8-9 improvements and fixtures on the land, property of any nature
8-10 appurtenant to the land or used in connection with the land, and a
8-11 legal or equitable estate, interest, or right in land, including
8-12 leasehold interests, terms for years, and a judgment, mortgage, or
8-13 other lien.
8-14 (26) <(25)> "Reserve fund" means the <housing finance
8-15 division's> reserve fund of the department's bond-financed
8-16 activities.
8-17 (27) <(26)> "Residential housing" means a specific
8-18 work or improvement undertaken primarily to provide dwelling
8-19 accommodations, including the acquisition, construction,
8-20 reconstruction, remodeling, improvement, or rehabilitation of land
8-21 and buildings and improvements to the buildings for residential
8-22 housing and other incidental or appurtenant nonhousing facilities.
8-23 (28) <(27)> "Servicer" means a person required to meet
8-24 contractual obligations with the department <housing finance
8-25 division> or with a mortgage lender relating to a loan financed
8-26 under Section 2306.221 et seq. <Subchapter J>, including:
8-27 (A) purchasing mortgage certificates backed by
9-1 mortgage loans;
9-2 (B) collecting principal and interest from the
9-3 borrower;
9-4 (C) sending principal and interest payments to
9-5 the department <division>;
9-6 (D) preparing periodic reports;
9-7 (E) notifying the primary mortgage and pool
9-8 insurers of delinquent and foreclosed loans; and
9-9 (F) filing insurance claims on foreclosed
9-10 property.
9-11 SECTION 3. Section 2306.021(b), Government Code, is amended
9-12 to read as follows:
9-13 (b) The department is composed of:
9-14 (1) the community affairs division;
9-15 (2) the housing finance division; <and>
9-16 (3) the community development division; and
9-17 (4) any other division created by the director.
9-18 SECTION 4. Section 2306.023, Government Code, is amended to
9-19 read as follows:
9-20 Sec. 2306.023. PERSONAL LIABILITY OF BOARD MEMBER OR
9-21 DIRECTOR <SEPARATION OF DIVISIONS>. A member of the board or the
9-22 director is not liable personally for bonds issued or contracts
9-23 executed by <The duties of the housing finance division shall be
9-24 kept separate from the duties of the community affairs division and
9-25 each other division established in> the department or for any other
9-26 action taken in accordance with the powers and duties authorized by
9-27 this chapter.
10-1 SECTION 5. Section 2306.030, Government Code, is amended by
10-2 amending Subsection (d) and by adding Subsection (e) to read as
10-3 follows:
10-4 (d) Officers of the board shall be elected <at the first
10-5 meeting of the board on or after January 31 of each odd-numbered
10-6 year and at any other time> as necessary to fill a vacancy.
10-7 (e) If neither the presiding officer or assistant presiding
10-8 officer is present or capable of performing the duties of presiding
10-9 officer, a majority of the members present may elect another member
10-10 of the board to perform the duties of presiding officer.
10-11 SECTION 6. Section 2306.032, Government Code, is amended to
10-12 read as follows:
10-13 Sec. 2306.032. BOARD MEETINGS. (a) <The board shall meet
10-14 at least three times annually at the call of the presiding officer
10-15 and other times the board determines are necessary. The time and
10-16 place of the other meetings are to be fixed by a majority vote of
10-17 the board.>
10-18 <(b)> The board may hold <special> meetings when called by
10-19 the presiding officer, the director, or three of the members.
10-20 (b) <(c)> The board shall keep complete minutes of board
10-21 meetings. The accounts, minutes, and other records shall be kept
10-22 at the principal office of the department.
10-23 SECTION 7. Subchapter C, Chapter 2306, Government Code, is
10-24 amended by amending Section 2306.051 and by adding Section
10-25 2306.0515 to read as follows:
10-26 Sec. 2306.051. BOARD DUTIES. (a) The board shall:
10-27 (1) adopt policies and procedures governing the
11-1 administration of the department's programs;
11-2 (2) approve program procedures to govern housing loans
11-3 made by the department under this chapter;
11-4 (3) adopt a target strategy for the percentage of
11-5 mortgage revenue bond proceeds to be made available to individuals
11-6 and families of low and very low income and families of moderate
11-7 income; and
11-8 (4) establish eligibility criteria for participation
11-9 in the department's programs for individuals and families of low
11-10 and very low income and families of moderate income.
11-11 (b) All bonds issued by the department must be authorized by
11-12 the board.
11-13 (c) By action of the board, each division shall have a goal
11-14 to apply a minimum of 25 percent of the division's housing-related
11-15 funds toward housing assistance for individuals and families of
11-16 very low income <consult with and advise the director on the
11-17 affairs and problems of local government and the work of the
11-18 department>.
11-19 Sec. 2306.0515. FEES; PENALTIES. (a) The board shall
11-20 establish a schedule of fees and penalties relating to the
11-21 operation of the department's programs, including fees for:
11-22 (1) applications, processing, loan commitments,
11-23 origination, servicing, insurance premiums, mortgage premiums,
11-24 housing developments, facilities and other services, compliance
11-25 costs, and other administrative costs;
11-26 (2) the cost of regulating housing sponsors, including
11-27 the cost of:
12-1 (A) examination;
12-2 (B) inspection;
12-3 (C) supervision; and
12-4 (D) auditing; and
12-5 (3) reimbursement of the department's financing costs.
12-6 (b) The department may assess and collect the fees described
12-7 by this section and use the funds received for the purposes
12-8 specified by this chapter.
12-9 SECTION 8. Section 2306.052(b), Government Code, is amended
12-10 to read as follows:
12-11 (b) The director shall:
12-12 (1) administer and organize the work of the department
12-13 consistent with this chapter and with sound organizational
12-14 management that promotes efficient and effective operation;
12-15 (2) appoint and remove <officers and other> personnel
12-16 employed by the department<, subject to the annual budget and any
12-17 resolution authorizing the issuance of bonds under this chapter>;
12-18 (3) submit, through and with the approval of the
12-19 governor, requests for appropriations and other money to operate
12-20 the department;
12-21 (4) administer all money entrusted to the department;
12-22 (5) administer all money and investments of the
12-23 department subject to:
12-24 (A) department indentures and contracts;
12-25 (B) Sections 2306.118-2306.120; and
12-26 (C) an action of the board under Section
12-27 2306.351 <make an annual report to the governor and the legislature
13-1 of the department's operations and provide other reports requested
13-2 by the governor or the legislature>; and
13-3 (6) perform other functions that may be assigned by
13-4 the governor.
13-5 SECTION 9. Section 2306.053, Government Code, is amended to
13-6 read as follows:
13-7 Sec. 2306.053. DEPARTMENT POWERS AND DUTIES. (a) The
13-8 department shall<:>
13-9 <(1)> maintain suitable headquarters and other offices
13-10 in this state that the director determines are necessary<; and>
13-11 <(2) furnish the information, equipment, and staff
13-12 necessary to implement the work of the board>.
13-13 (b) The department may:
13-14 (1) <sue and be sued, or plead and be impleaded;>
13-15 <(2)> act for and on behalf of this state;
13-16 (2) <(3)> adopt an official seal or alter it;
13-17 (3) <(4)> adopt and enforce bylaws and rules;
13-18 (4) <(5)> contract with the federal government, state,
13-19 any public agency, mortgage lender, person, or other entity;
13-20 (5) <(6)> designate mortgage lenders to act for the
13-21 department for the origination, processing, and servicing of the
13-22 department's mortgage loans under conditions agreed to by the
13-23 parties;
13-24 (6) <(7)> provide, contract, or arrange for
13-25 consolidated processing of a housing development to avoid
13-26 duplication;
13-27 (7) <(8)> encourage homeless individuals and
14-1 individuals of low or very low income to attend the department's
14-2 educational programs and assist those individuals in attending the
14-3 programs;
14-4 (8) <(9)> appoint and determine the qualifications,
14-5 duties, and tenure of its agents, counselors, and professional
14-6 advisors, including accountants, appraisers, architects, engineers,
14-7 financial consultants, housing construction and financing experts,
14-8 and real estate consultants;
14-9 (9) administer federal or state housing, community
14-10 affairs, or community development programs, including the low
14-11 income housing tax credit program; <and>
14-12 (10) establish eligibility criteria for individuals
14-13 and families of low and very low income and families of moderate
14-14 income to participate in and benefit from programs administered by
14-15 the department;
14-16 (11) adopt underwriting standards for loans made or
14-17 financed by the department;
14-18 (12) adopt minimum property standards for housing
14-19 developments financed or acquired under this chapter;
14-20 (13) compile a list of approved mortgage lenders;
14-21 (14) obtain, retain, and disseminate its records and
14-22 other documents in electronic form; and
14-23 (15) do all things necessary, convenient, or desirable
14-24 to carry out the powers expressly granted or necessarily implied by
14-25 this chapter.
14-26 SECTION 10. Section 2306.094, Government Code, is amended
14-27 and redesignated as Section 2306.054, Subchapter C, Chapter 2306,
15-1 Government Code, to read as follows:
15-2 Sec. 2306.054 <2306.094>. SPECIAL ADVISORY COUNCILS. (a)
15-3 The governor or director may<, with the advice of the director,>
15-4 appoint special advisory councils to:
15-5 (1) assist the department <board> in adopting basic
15-6 policy <for the community affairs division>; or
15-7 (2) offer advice on technical aspects of certain
15-8 programs <that the community affairs division administers>.
15-9 (b) A special advisory council is dissolved on completion of
15-10 its stated purpose unless continued by the governor or director.
15-11 SECTION 11. Section 2306.095, Government Code, is amended
15-12 and redesignated as Section 2306.055, Subchapter C, Chapter 2306,
15-13 Government Code, to read as follows:
15-14 Sec. 2306.055 <2306.095>. TRANSFERS FROM GOVERNOR. The
15-15 governor may transfer to any <the community affairs> division
15-16 personnel, equipment, records, obligations, appropriations,
15-17 functions, and duties of appropriate divisions of the governor's
15-18 office.
15-19 SECTION 12. Subchapter C, Chapter 2306, Government Code, is
15-20 amended by adding Section 2306.056 to read as follows:
15-21 Sec. 2306.056. COMMITTEES. (a) The presiding officer may
15-22 appoint a committee composed of board members to carry out the
15-23 board's duties.
15-24 (b) The board may consider a recommendation of a committee
15-25 in making a decision under this chapter.
15-26 (c) A committee established under this section is subject to
15-27 Chapters 551 and 552.
16-1 SECTION 13. Subchapter C, Chapter 2306, Government Code, is
16-2 amended by adding Sections 2306.057 and 2306.058 to read as
16-3 follows:
16-4 Sec. 2306.057. GENERAL DUTIES OF DEPARTMENT. The department
16-5 shall:
16-6 (1) develop policies and programs designed to increase
16-7 the number of individuals and families of low and very low income
16-8 and families of moderate income that participate in its programs;
16-9 (2) work with local governments, public agencies,
16-10 housing sponsors, and nonprofit corporations to provide:
16-11 (A) information on department programs; and
16-12 (B) technical assistance to local governments,
16-13 public agencies, and nonprofit corporations;
16-14 (3) encourage private and nonprofit corporations and
16-15 state organizations to match the department's funds to assist in
16-16 providing affordable housing to individuals and families of low and
16-17 very low income and families of moderate income;
16-18 (4) provide matching funds, as available, to local
16-19 governments, public agencies, housing sponsors, and nonprofit
16-20 developers who qualify under the department's programs; and
16-21 (5) administer the state's allocation of federal funds
16-22 provided under:
16-23 (A) the rental rehabilitation grant program
16-24 authorized by Section 17, Title I, Housing Act of 1937 (42 U.S.C.
16-25 Section 1437o);
16-26 (B) the Cranston-Gonzalez National Affordable
16-27 Housing Act (42 U.S.C. Section 14704 et seq.); and
17-1 (C) any other federally-established affordable
17-2 housing program.
17-3 Sec. 2306.058. PAYMENT OF DEPARTMENT OBLIGATIONS AND
17-4 EXPENSES. The department shall use available sources of revenue,
17-5 income, and receipts to:
17-6 (1) pay all expenses of the department's operation and
17-7 maintenance;
17-8 (2) pay the principal and interest on department
17-9 bonds; and
17-10 (3) create and maintain the reserves or funds provided
17-11 by each resolution authorizing the issuance of department bonds.
17-12 SECTION 14. Section 2306.065, Government Code, is amended to
17-13 read as follows:
17-14 Sec. 2306.065. DISCRIMINATION PROHIBITED. An individual may
17-15 not, because of that individual's race, color, national origin,
17-16 age, religion, disability, or sex, be excluded from participation,
17-17 be denied benefits, or be subjected to discrimination in any
17-18 program or activity funded in whole or in part with funds made
17-19 available under this chapter.
17-20 SECTION 15. Section 2306.067(a), Government Code, is amended
17-21 to read as follows:
17-22 (a) The director may enter into <reciprocal> agreements with
17-23 a state agency or instrumentality or local government to loan or
17-24 assign department employees to that entity.
17-25 SECTION 16. Section 2306.069, Government Code, is amended to
17-26 read as follows:
17-27 Sec. 2306.069. <OUTSIDE> LEGAL COUNSEL. (a) The department
18-1 shall obtain and evaluate information regarding the affirmative
18-2 action policies and practices of proposed outside legal counsel.
18-3 The department must include the evaluation in a request to the
18-4 attorney general for outside legal counsel.
18-5 (b) The department may hire in-house legal counsel. The
18-6 director shall prescribe the duties of the legal counsel.
18-7 SECTION 17. Section 2306.070, Government Code, is amended to
18-8 read as follows:
18-9 Sec. 2306.070. LEGISLATIVE APPROPRIATIONS REQUEST <BUDGET>.
18-10 In preparing the department's legislative appropriations request,
18-11 the department shall include, for informational purposes only, the
18-12 operating funds for the department's bond-financed activities <also
18-13 prepare an operating budget for the housing finance division. The
18-14 department shall submit the operating budget to the Legislative
18-15 Budget Board, the Senate Finance Committee, and the House
18-16 Appropriations Committee>.
18-17 SECTION 18. Subchapter D, Chapter 2306, Government Code, is
18-18 amended by adding Section 2306.0705 to read as follows:
18-19 Sec. 2306.0705. GENERAL APPROPRIATIONS ACT. Except as
18-20 specifically provided by this chapter, the department is subject to
18-21 the General Appropriations Act.
18-22 SECTION 19. Section 2306.071, Government Code, is amended to
18-23 read as follows:
18-24 Sec. 2306.071. FUNDS; LOCAL DEPOSITORY FUND. (a) The
18-25 department may request, contract for, receive, and spend for its
18-26 purposes an appropriation, grant, loan, allocation, subsidy, rent
18-27 supplement, guarantee, aid, contribution, gift, service, labor, or
19-1 material from this state, the federal government, or another public
19-2 or private source.
19-3 (b) The funds and revenues of the department's bond-financed
19-4 activities <housing finance division> shall be kept separate from
19-5 the department's other funds and revenues <of the other divisions>,
19-6 and the department <other divisions> may <not> use funds and
19-7 revenues of the department's bond-financed activities only to
19-8 administer housing-related programs <housing finance division for
19-9 any purpose>.
19-10 (c) Except for legislative appropriations, funds necessary
19-11 for the operation of the department's bond-financed activities, and
19-12 trustee-held funds of the department under a multifamily bond
19-13 indenture <which shall be kept in the state treasury>, all funds
19-14 and revenue of the department's bond-financed activities received
19-15 by the department <housing finance division> are to be kept outside
19-16 the state treasury.
19-17 (d) Legislative appropriations shall be kept in the state
19-18 treasury. Trustee-held funds of the department under a multifamily
19-19 bond indenture are held by the trustee as provided by the
19-20 indenture. Operating funds for bond-financed activities shall be
19-21 kept in the Texas housing local depository fund created under
19-22 Subsection (e). The operating funds may be transmitted to payee
19-23 accounts in financial institutions by electronic means or for
19-24 processing of state warrants. Unexpended operating funds shall be
19-25 reimbursed to the Texas housing local depository fund at the end of
19-26 each fiscal year.
19-27 (e) The Texas housing local depository fund is created as a
20-1 special fund in the state treasury. Interest earned on the fund
20-2 shall be credited to and retained by the fund for the benefit of
20-3 the fund. The fund is not subject to Section 403.094 or 403.095.
20-4 (f) All other revenue and funds of the department received
20-5 or payable through the bond-related programs and functions of the
20-6 department shall be deposited outside the state treasury with
20-7 either the Texas Treasury Safekeeping Trust Company or with any
20-8 other depository selected by the department in accordance with
20-9 Section 2306.119.
20-10 SECTION 20. Subchapter D, Government Code, is amended by
20-11 adding Sections 2306.0721, 2306.0722, and 2306.0723 to read as
20-12 follows:
20-13 Sec. 2306.0721. LOW INCOME HOUSING PLAN. (a) Not later
20-14 than April 1 of each year, the director shall prepare and submit to
20-15 the board an integrated state low income housing plan for the next
20-16 year.
20-17 (b) Not later than the 30th day after the date the board
20-18 receives the plan, the board shall submit the plan to the governor
20-19 and legislature.
20-20 (c) The plan must include:
20-21 (1) an estimate and analysis of the housing needs of
20-22 the following populations in the state:
20-23 (A) individuals and families of low and very low
20-24 income and families of moderate income;
20-25 (B) individuals and families with special needs;
20-26 and
20-27 (C) homeless individuals and families;
21-1 (2) a proposal to track all available housing
21-2 resources to address the housing needs of the populations described
21-3 by Subdivision (1) by reporting funding levels for all
21-4 housing-related programs;
21-5 (3) an estimate of the number of federally assisted
21-6 housing units available for individuals and families of low and
21-7 very low income and individuals with special needs in each uniform
21-8 state service region in the state;
21-9 (4) a description of state programs that govern the
21-10 use of all available housing resources;
21-11 (5) a resource allocation plan that targets all
21-12 available housing resources to individuals and families of low and
21-13 very low income, families of moderate income, individuals and
21-14 families with special needs, and homeless individuals and families;
21-15 (6) a description of the unused or underused federal
21-16 resources of other state agencies for housing-related services and
21-17 services for homeless individuals and the department's
21-18 recommendations to ensure the full use by the state of all
21-19 available federal resources for those services;
21-20 (7) strategies to provide housing for individuals and
21-21 families with special needs and homeless individuals and families;
21-22 (8) a comprehensive statement of the activities of the
21-23 department during the preceding fiscal year to address the needs
21-24 identified in the plan, including:
21-25 (A) a statistical and narrative analysis of the
21-26 department's performance in addressing the housing needs of
21-27 individuals and families of low and very low income and families of
22-1 moderate income;
22-2 (B) the ethnic or racial composition of
22-3 individuals and families receiving assistance from each housing
22-4 program administered by the department; and
22-5 (C) the department's progress in meeting the
22-6 goals established in the previous housing plan;
22-7 (9) an explanation of the efforts made by the
22-8 department to ensure the participation of individuals of low income
22-9 and their community-based institutions in department programs that
22-10 affect them;
22-11 (10) an explanation of the efforts that the department
22-12 has made to involve individuals of low income and their
22-13 community-based institutions in the allocation of funds and the
22-14 planning process;
22-15 (11) a statistical analysis, delineated according to
22-16 each ethnic and racial group served by the department, that
22-17 indicates the progress made by the department in implementing the
22-18 state low income housing plan in each of the uniform state service
22-19 regions; and
22-20 (12) a statistical analysis of each housing
22-21 development that receives financial assistance from the department
22-22 that includes the following information for each housing
22-23 development that contains 20 or more living units:
22-24 (A) the street address and municipality or
22-25 county in which the property is located;
22-26 (B) the total number of units reported by
22-27 bedroom size;
23-1 (C) the total number of units designed for
23-2 individuals who are physically disabled or who have special needs
23-3 and the number of these individuals served annually as reported by
23-4 each housing sponsor;
23-5 (D) average rents reported by region, as defined
23-6 in the comprehensive housing affordability strategy;
23-7 (E) the race or ethnic makeup of each project as
23-8 reported annually by each housing sponsor;
23-9 (F) the number of units occupied by individuals
23-10 receiving government-supported housing assistance as reported by
23-11 each housing sponsor;
23-12 (G) a statement as to whether the department has
23-13 been notified of a violation of the fair housing law that has been
23-14 filed with the United States Department of Housing and Urban
23-15 Development, the Commission on Human Rights, or the United States
23-16 Department of Justice;
23-17 (H) a statement as to whether the development
23-18 has any instances of material noncompliance with bond indentures or
23-19 financing agreements discovered through the normal monitoring
23-20 activities and procedures that include meeting occupancy
23-21 requirements or rent restrictions imposed by financing agreements;
23-22 and
23-23 (I) a statement as to whether the housing
23-24 development owner has an affirmative marketing plan in place.
23-25 Sec. 2306.0722. PREPARATION OF PLAN. In preparing the state
23-26 low income housing plan under Section 2306.0721, the director
23-27 shall:
24-1 (1) coordinate the department's housing resources,
24-2 including tax exempt housing bond financing and low income housing
24-3 tax credits;
24-4 (2) set priorities for the department's available
24-5 housing resources to help the neediest individuals;
24-6 (3) ensure that the department's housing programs
24-7 benefit an individual without regard to the individual's race,
24-8 ethnicity, sex, or national origin;
24-9 (4) develop housing opportunities for individuals and
24-10 families of low and very low income, families of moderate income,
24-11 and individuals with special housing needs;
24-12 (5) develop housing programs through an open, fair,
24-13 and public process;
24-14 (6) set priorities for assistance in a manner that is
24-15 appropriate and consistent with the housing needs of the
24-16 populations described by Section 2306.0721(c)(1); and
24-17 (7) incorporate recommendations that are consistent
24-18 with the comprehensive housing affordability strategy, or its
24-19 successor, submitted annually by the state to the United States
24-20 Department of Housing and Urban Development.
24-21 Sec. 2306.0723. PUBLIC HEARINGS. (a) The department shall
24-22 hold a public hearing on the state low income housing plan before
24-23 the director submits the plan to the board.
24-24 (b) The board shall hold a public hearing on the state low
24-25 income housing plan before the board submits the plan to the
24-26 governor and legislature.
24-27 (c) The board shall include with the plan the board submits
25-1 to the governor and legislature a written report of public comments
25-2 on the plan.
25-3 SECTION 21. Section 2306.073(a), Government Code, is amended
25-4 to read as follows:
25-5 (a) The director, with the approval of the board, shall
25-6 appoint an internal auditor who reports directly to the board and
25-7 serves at the pleasure of the board <on matters concerning housing
25-8 finance, the community affairs division, or any other division>.
25-9 SECTION 22. Section 2306.074, Government Code, is amended by
25-10 amending Subsection (a) and by adding Subsection (c) to read as
25-11 follows:
25-12 (a) The state auditor or a certified public accountant shall
25-13 audit the department's books and accounts each fiscal year and file
25-14 a copy of the audit with the governor and the legislature on or
25-15 before March <January> 1 of each year. If the state auditor is
25-16 conducting the audit and it is not available by March <January> 1,
25-17 it must be filed as soon as it is available.
25-18 (c) An independent auditor annually shall conduct an audit
25-19 of the department's bond-related activities to determine the amount
25-20 of unencumbered fund balances that is greater than the amount
25-21 required for the reserve fund. The independent auditor shall
25-22 submit the report to the board not later than December 31 of each
25-23 year.
25-24 SECTION 23. Section 2306.075, Government Code, is amended to
25-25 read as follows:
25-26 Sec. 2306.075. TAX EXEMPTION; OTHER PAYMENTS. (a) The
25-27 property of the department, its income, and its operations are
26-1 exempt from all taxes and assessments imposed by this state and all
26-2 public agencies on property acquired or used by the department
26-3 under this chapter.
26-4 (b) The department may, under its terms, conditions, and
26-5 procedures, pay public agencies in lieu of ad valorem taxes on
26-6 property that the department acquires through foreclosure or sale
26-7 under a deed of trust.
26-8 (c) The department shall make payments under this section
26-9 instead of paying taxes whenever practicable with money lawfully
26-10 available for this purpose, subject to the provisions of any bond
26-11 resolution.
26-12 SECTION 24. Subchapter D, Chapter 2306, Government Code, is
26-13 amended by adding Sections 2306.076-2306.089 to read as follows:
26-14 Sec. 2306.076. INSURANCE. (a) The board may purchase from
26-15 department funds liability insurance for the director and employees
26-16 and board members and officers.
26-17 (b) The board may purchase the insurance in an amount the
26-18 board considers reasonably necessary to:
26-19 (1) insure against reasonably foreseeable liabilities;
26-20 and
26-21 (2) provide for all costs of defending against those
26-22 liabilities, including court costs and attorney's fees.
26-23 (c) The department may obtain insurance coverage of any
26-24 kind, and pay premiums for that coverage, in amounts and from
26-25 insurers as the department considers necessary or advisable.
26-26 Sec. 2306.077. ACQUISITION AND USE OF MONEY; DEPOSITORIES.
26-27 The department may:
27-1 (1) acquire, hold, invest, deposit, use, and spend its
27-2 income and revenue, from whatever source; and
27-3 (2) select its depository or depositories, subject
27-4 only to the provisions of:
27-5 (A) this chapter; and
27-6 (B) a covenant relating to the department's
27-7 bonds.
27-8 Sec. 2306.078. INVESTMENTS. Subject to a resolution
27-9 authorizing issuance of department bonds, the department may:
27-10 (1) invest department money in bonds, obligations,
27-11 uncollateralized guaranteed investment agreements, or other
27-12 securities; or
27-13 (2) place department money in demand or time deposits,
27-14 whether or not evidenced by certificates of deposit.
27-15 Sec. 2306.079. HEARINGS. The department may:
27-16 (1) conduct hearings; and
27-17 (2) take testimony and proof, under oath, at public
27-18 hearings, on matters necessary to carry out the department's
27-19 purposes.
27-20 Sec. 2306.080. INVESTIGATIONS. The department may:
27-21 (1) investigate housing conditions and the means for
27-22 improving those conditions; and
27-23 (2) determine the location of slum or blighted areas.
27-24 Sec. 2306.081. ENCOURAGING HOME OWNERSHIP. The department
27-25 may encourage individual or cooperative home ownership among
27-26 individuals and families of low and very low income and families of
27-27 moderate income.
28-1 Sec. 2306.082. TARGETING BOND PROCEEDS. The department may
28-2 target the proceeds from housing bonds issued by the department to
28-3 a geographic area or areas of the state.
28-4 Sec. 2306.083. LOANS TO LENDERS. The department may make
28-5 loans to mortgage lenders, public agencies, or other housing
28-6 sponsors and use the proceeds to make loans for multifamily housing
28-7 developments to be substantially occupied by individuals and
28-8 families of low and very low income or families of moderate income.
28-9 Sec. 2306.084. NEEDS OF QUALIFYING INDIVIDUALS AND FAMILIES
28-10 IN RURAL AREAS AND SMALL MUNICIPALITIES. The department may adopt
28-11 a target strategy to ensure that the credit and housing needs of
28-12 qualifying individuals and families who reside in rural areas and
28-13 small municipalities are equitably served by the department.
28-14 Sec. 2306.085. ACQUISITION AND DISPOSITION OF CERTAIN
28-15 PROPERTY. In performing duties and exercising powers under this
28-16 chapter, the department may:
28-17 (1) acquire, own, rent, lease, accept, hold, or
28-18 dispose of any real, personal, or mixed property, or any interest
28-19 in property, including a right or easement, by purchase, exchange,
28-20 gift, assignment, transfer, foreclosure, sale, lease, or otherwise;
28-21 (2) hold, manage, operate, or improve real, personal,
28-22 or mixed property; or
28-23 (3) lease or rent land or a dwelling, house,
28-24 accommodation, building, structure, or facility from a private
28-25 entity.
28-26 Sec. 2306.086. TRANSFER AND DISPOSITION OF PROPERTY; MANNER
28-27 OF SALE. (a) The department may:
29-1 (1) sell, assign, lease, encumber, mortgage, or
29-2 otherwise dispose of real, personal, or mixed property, an interest
29-3 in property, or a deed of trust or mortgage lien interest owned by
29-4 the department or under its control, custody, or possession; and
29-5 (2) release or relinquish a right, title, claim, lien,
29-6 interest, easement, or demand acquired in any manner, including an
29-7 equity or right of redemption in property foreclosed by the
29-8 department.
29-9 (b) Notwithstanding any other law, the department may
29-10 conduct a public or private sale, with or without public bidding,
29-11 to implement its powers under this section.
29-12 Sec. 2306.087. POLICIES REGARDING HOUSING DEVELOPMENTS. The
29-13 department may adopt and publish policies and procedures regarding:
29-14 (1) the making of mortgage loans under this chapter;
29-15 (2) the regulation of borrowers;
29-16 (3) the construction of ancillary commercial
29-17 facilities; and
29-18 (4) resale and disposition of real property, or an
29-19 interest in the property, that is financed by the department.
29-20 Sec. 2306.088. COURT ACTIONS. (a) The department may
29-21 institute a court action under this chapter against a housing
29-22 sponsor who receives assistance or owns a housing development to:
29-23 (1) enforce this chapter;
29-24 (2) enforce the terms and provisions of an agreement
29-25 or contract between the department and the recipient of assistance
29-26 under this chapter, including provisions regarding rental or
29-27 carrying charges and income limits as applied to tenants or
30-1 occupants;
30-2 (3) foreclose its mortgage; or
30-3 (4) protect:
30-4 (A) the public interest;
30-5 (B) individuals and families of low and very low
30-6 income or families of moderate income;
30-7 (C) stockholders; or
30-8 (D) creditors of the housing sponsor.
30-9 (b) In a proceeding under this section, the department may
30-10 apply for the appointment of a trustee or receiver to assume the
30-11 management and operation of the affairs of a housing sponsor.
30-12 (c) The department, through its designated agent, may accept
30-13 appointment as trustee or receiver of a housing sponsor when
30-14 appointed by a court of competent jurisdiction.
30-15 Sec. 2306.089. INTEREST RATES. (a) The department shall
30-16 set the interest rates at which the department makes loans and loan
30-17 commitments.
30-18 (b) The interest rates shall be set to produce, when
30-19 combined with other available funds, at least the amounts required
30-20 to pay for the costs of operation of the department's bond-financed
30-21 activities and to meet its covenants with and responsibilities to
30-22 the holders of its bonds.
30-23 SECTION 25. The heading of Subchapter E, Chapter 2306,
30-24 Government Code, is amended to read as follows:
30-25 SUBCHAPTER E. COMMUNITY AFFAIRS AND COMMUNITY
30-26 DEVELOPMENT PROGRAMS <DIVISION>
30-27 SECTION 26. Section 2306.092, Government Code, is amended to
31-1 read as follows:
31-2 Sec. 2306.092. DUTIES. The department, through the
31-3 community affairs division or any other division, shall:
31-4 (1) maintain communication with local governments and
31-5 act as an advocate for local governments at the state and federal
31-6 levels;
31-7 (2) assist local governments with advisory and
31-8 technical services;
31-9 (3) provide financial aid to local governments and
31-10 combinations of local governments for programs that are authorized
31-11 to receive assistance;
31-12 (4) provide information about and referrals for state
31-13 and federal programs and services that affect local governments;
31-14 (5) administer, conduct, or jointly sponsor
31-15 educational and training programs for local government officials;
31-16 (6) conduct research on problems of general concern to
31-17 local governments;
31-18 (7) collect, publish, and distribute information
31-19 useful to local governments, including information on:
31-20 (A) local government finances and employment;
31-21 (B) housing;
31-22 (C) population characteristics; and
31-23 (D) land-use patterns;
31-24 (8) encourage cooperation among local governments as
31-25 appropriate;
31-26 (9) advise and inform the governor and the legislature
31-27 about the affairs of local governments and recommend necessary
32-1 action;
32-2 (10) assist the governor in coordinating federal and
32-3 state activities affecting local governments;
32-4 (11) administer, as appropriate:
32-5 (A) state responsibilities for programs created
32-6 under the federal Economic Opportunity Act of 1964 (42 U.S.C.
32-7 Section 2701 et seq.);
32-8 (B) programs assigned to the department under
32-9 the Omnibus Budget Reconciliation Act of 1981 (Pub.L. No. 97-35);
32-10 and
32-11 (C) other federal acts creating economic
32-12 opportunity programs assigned to the department;
32-13 (12) adopt rules that are necessary and proper to
32-14 carry out programs and responsibilities assigned by the legislature
32-15 or the governor; and
32-16 (13) perform other duties relating to local government
32-17 that are assigned by the legislature or the governor.
32-18 SECTION 27. Section 2306.096, Government Code, is amended to
32-19 read as follows:
32-20 Sec. 2306.096. SERVICES FOR HOMELESS <MULTIPURPOSE HUMAN
32-21 RESOURCE CENTERS>. The department shall administer the state's
32-22 allocation of federal funds provided under the Emergency Shelter
32-23 Grants Program (42 U.S.C. Section 11371 et seq.) or its successor
32-24 program, and any other federal funds provided for the benefit of
32-25 homeless individuals and families. <(a) To provide the most
32-26 effective and efficient delivery of human resource services to
32-27 individuals and families of low income, as well as the total
33-1 population, the department, through the community affairs division,
33-2 may establish multipurpose human resource centers in various
33-3 communities.>
33-4 <(b) The department, through the community affairs division,
33-5 may:>
33-6 <(1) locate and lease with state funds suitable office
33-7 space at the community level that is easily accessible to clients
33-8 of human resource service delivery agencies; and>
33-9 <(2) make the space available to those agencies.>
33-10 <(c) A state or local government agency or a private,
33-11 nonprofit human resource agency that has filed with the state a
33-12 state or regional plan for delivery of human resource services is
33-13 eligible to place staff in a community multipurpose human resource
33-14 service center.>
33-15 <(d) The department shall report annually to the governor
33-16 and the legislature the agencies that are and are not placing human
33-17 resource delivery staff in available community multipurpose human
33-18 resource service centers.>
33-19 <(e) The Community Multipurpose Human Resource Service
33-20 Center Fund is in the state treasury. The fund shall be used to
33-21 provide:>
33-22 <(1) the state's share of the rental costs for
33-23 community multipurpose human resource service centers; and>
33-24 <(2) the administrative costs of the centers'
33-25 operation.>
33-26 SECTION 28. Section 2306.097, Government Code, is amended to
33-27 read as follows:
34-1 Sec. 2306.097. ENERGY SERVICES PROGRAM FOR LOW-INCOME
34-2 INDIVIDUALS. <(a) The Energy Services Program for Low-Income
34-3 Individuals is in the community affairs division.>
34-4 <(b)> The program shall operate in conjunction with the
34-5 community services <service> block grant program and has
34-6 jurisdiction and responsibility for administration of the following
34-7 elements of the State Low-Income Energy Assistance Program, from
34-8 whatever sources funded:
34-9 (1) the Energy Crisis Intervention Program; <and>
34-10 (2) the weatherization program; and
34-11 (3) the Low-Income Home Energy Assistance Program.
34-12 SECTION 29. Section 2306.098(a), Government Code, is amended
34-13 to read as follows:
34-14 (a) The department<, through the community affairs
34-15 division,> shall, under the Omnibus Budget Reconciliation Act of
34-16 1981 (Pub.L. No. 97-35) and 24 CFR, Part 570, Subpart I, administer
34-17 the state's allocation of federal funds provided under the
34-18 community development block grant nonentitlement program authorized
34-19 by Title I of the Housing and Community Development Act of 1974 (42
34-20 U.S.C. Section 5301 et seq.).
34-21 SECTION 30. Section 2306.099, Government Code, is amended to
34-22 read as follows:
34-23 Sec. 2306.099. ECONOMIC DEVELOPMENT ACTIVITIES <TRANSFER OF
34-24 FEDERAL FUNDS>. (a) The department may enter into an interagency
34-25 agreement with the Texas Department of Commerce to reimburse the
34-26 Texas Department of Commerce for providing on behalf of the
34-27 department marketing and underwriting services on the portion of
35-1 the federal funds allocated by the department for economic
35-2 development activities.
35-3 (b) The department shall allocate <transfer> not more than
35-4 20 percent of the federal community development block grant funds
35-5 received by the department <to the Texas Department of Commerce to
35-6 be used> for economic development activities.
35-7 (c) The activities by <(b) Federal funds transferred under
35-8 this section include the amount of federal funds designated for
35-9 administrative expenses under federal law.>
35-10 <(c) Income received from economic development programs of
35-11 the Texas Department of Commerce remain with that agency.>
35-12 <(d) Use of funds transferred under this section must be
35-13 approved by the department.>
35-14 <(e) A rule of> the Texas Department of Commerce <relating
35-15 to funds transferred> under this section must be approved by the
35-16 department.
35-17 <(f) The Texas Department of Commerce shall return to the
35-18 department under an interagency agreement federal funds transferred
35-19 under this section that are not used in a timely manner under
35-20 federal guidelines.>
35-21 SECTION 31. The heading of Subchapter F, Chapter 2306,
35-22 Government Code, is amended to read as follows:
35-23 SUBCHAPTER F. BUDGET; FUNDS <HOUSING FINANCE DIVISION:
35-24 GENERAL PROVISIONS>
35-25 SECTION 32. Sections 2306.112(a) and (b), Government Code,
35-26 are amended to read as follows:
35-27 (a) On or before August 1 of each year, the director shall
36-1 file with the board a proposed annual budget for the department
36-2 <housing finance division> for the succeeding fiscal year.
36-3 (b) The budget shall state:
36-4 (1) the general categories of expected expenditures
36-5 from revenues and income of the department <housing finance
36-6 division>;
36-7 (2) the amount of expected expenditures for each
36-8 category;
36-9 (3) expected operating expenses of the department
36-10 <housing finance division>; and
36-11 (4) the proposed use of projected year-end
36-12 unencumbered balances.
36-13 SECTION 33. Section 2306.113, Government Code, is amended to
36-14 read as follows:
36-15 Sec. 2306.113. BOARD CONSIDERATION OF ANNUAL BUDGET. On or
36-16 before September 1 of each year, the board shall consider the
36-17 director's proposed annual budget for the department <housing
36-18 finance division> and shall approve or change the budget as the
36-19 board determines necessary or advisable.
36-20 SECTION 34. Section 2306.114(a), Government Code, is amended
36-21 to read as follows:
36-22 (a) Copies of the annual budget certified by the presiding
36-23 officer of the board shall be filed promptly with the governor <and
36-24 the legislature>.
36-25 SECTION 35. Section 2306.116(b), Government Code, is amended
36-26 to read as follows:
36-27 (b) An amended annual budget does not supersede a prior
37-1 budget until it is filed with the governor <and the legislature>.
37-2 SECTION 36. Section 2306.117, Government Code, is amended to
37-3 read as follows:
37-4 Sec. 2306.117. PAYMENT OF EXPENSES; INDEBTEDNESS. (a) The
37-5 expenses incurred in carrying out the functions of the department
37-6 relating to bond-financed activities <housing finance division> may
37-7 be paid only from revenues or funds provided under this chapter.
37-8 (b) This chapter does not authorize the department <housing
37-9 finance division> to incur debt or liability on behalf of or
37-10 payable by the state, except as provided by this chapter or other
37-11 law.
37-12 SECTION 37. Sections 2306.119(a), (b), (d), and (e),
37-13 Government Code, are amended to read as follows:
37-14 (a) The department shall choose a depository for the
37-15 <operating> funds described by Section 2306.071(f) <of the housing
37-16 finance division> after inviting bids for favorable interest rates.
37-17 (b) The department <housing finance division> shall publish
37-18 notice in at least one newspaper of general circulation in this
37-19 state no later than the 14th day before the last day set for the
37-20 receipt of the bids.
37-21 (d) Sealed bids must be:
37-22 (1) identified on the envelope as bids; and
37-23 (2) submitted to the department <housing finance
37-24 division> before the deadline for receiving bids.
37-25 (e) The department <housing finance division> shall provide
37-26 a tabulation of all submitted bids for public inspection.
37-27 SECTION 38. Section 2306.120, Government Code, is amended to
38-1 read as follows:
38-2 Sec. 2306.120. SELECTION OF DEPOSITORY UNDER COVENANTS OF
38-3 BONDS OR TRUST INDENTURES. <(a)> If covenants related to the
38-4 department's bonds or the trust indentures governing the bonds
38-5 specify one or more depositories or set out a method of selecting
38-6 depositories different from the method required by this subchapter,
38-7 the covenants prevail regarding the funds to which they apply <and
38-8 the funds are not required to be deposited with the Texas Treasury
38-9 Safekeeping Trust Company>.
38-10 <(b) Bonds of the housing finance division issued under
38-11 trust indentures executed or resolutions adopted on or after
38-12 September 1, 1991, may not include a covenant that interferes with
38-13 the deposit of funds in the Texas Treasury Safekeeping Trust
38-14 Company.>
38-15 SECTION 39. Section 2306.121, Government Code, is amended to
38-16 read as follows:
38-17 Sec. 2306.121. RECORDS. The department <housing finance
38-18 division> shall keep complete records and accounts of its business
38-19 transactions relating to the bond-financed activities of the
38-20 department according to generally accepted accounting principles.
38-21 SECTION 40. Subchapter F, Government Code, is amended by
38-22 adding Section 2306.1231 to read as follows:
38-23 Sec. 2306.1231. FEDERAL POVERTY LINE. The department shall
38-24 use the applicable federal poverty line in determining eligibility
38-25 for each federal or state program administered by the department
38-26 that requires poverty instead of area median income to be used as a
38-27 criterion of program eligibility.
39-1 SECTION 41. The heading to Subchapter I, Chapter 2306,
39-2 Government Code, is amended to read as follows:
39-3 SUBCHAPTER I. HOUSING TRUST FUND
39-4 <FINANCE DIVISION; FUNDS>
39-5 SECTION 42. Section 2306.201, Government Code, is amended to
39-6 read as follows:
39-7 Sec. 2306.201. HOUSING TRUST FUND. (a) The housing trust
39-8 fund is a fund<:>
39-9 <(1)> administered by the department. The fund may be
39-10 <through the housing finance division; and>
39-11 <(2)> placed with the Texas Treasury Safekeeping Trust
39-12 Company.
39-13 (b) The fund consists of:
39-14 (1) appropriations or transfers made to the fund;
39-15 (2) unencumbered fund balances; <and>
39-16 (3) public or private gifts or grants; and
39-17 (4) investment income.
39-18 SECTION 43. Section 2306.202, Government Code, is amended to
39-19 read as follows:
39-20 Sec. 2306.202. USE OF HOUSING TRUST FUND. (a) The
39-21 department<, through the housing finance division,> shall use the
39-22 housing trust fund to:
39-23 (1) provide loans, grants, or other comparable forms
39-24 of assistance to local units of government, public housing
39-25 authorities, nonprofit organizations, and income-eligible
39-26 individuals, families, and households to finance, acquire,
39-27 rehabilitate, and develop decent, safe, and sanitary housing; and
40-1 (2) acquire property to endow the fund.
40-2 (b) Use of the fund is limited to providing:
40-3 (1) assistance for individuals and families of low and
40-4 very low income in proportion to the source of funds; <and>
40-5 (2) technical assistance and capacity building to
40-6 nonprofit organizations engaged in developing housing for
40-7 individuals and families of low and very low income; and
40-8 (3) assistance to the department or to the corporation
40-9 established under Subchapter Y to acquire suitable headquarters or
40-10 other real property with which to capitalize the fund.
40-11 SECTION 44. Section 2306.203, Government Code, is amended to
40-12 read as follows:
40-13 Sec. 2306.203. RULES REGARDING ADMINISTRATION OF HOUSING
40-14 TRUST FUND. The department <board> shall adopt rules to administer
40-15 the housing trust fund, including rules providing:
40-16 (1) that <the division give> priority is given to
40-17 programs that maximize other <federal> resources;
40-18 (2) for a process to set priorities for use of the
40-19 fund, including the distribution of fund resources under a request
40-20 for a proposal process developed and approved by the board;
40-21 (3) that the criteria used to rank proposals will
40-22 include the:
40-23 (A) leveraging of other <federal> resources;
40-24 (B) cost-effectiveness of a proposed
40-25 development; and
40-26 (C) extent to which individuals and families of
40-27 very low income are served by the development;
41-1 (4) that funds may not be made available to a
41-2 development that permanently and involuntarily displaces
41-3 individuals and families of low income;
41-4 (5) that the board attempt to allocate funds to
41-5 achieve a broad geographical distribution with:
41-6 (A) special emphasis on equitably serving rural
41-7 and nonmetropolitan areas; and
41-8 (B) consideration of the number and percentage
41-9 of income-qualified families in different geographical areas; and
41-10 (6) that multifamily housing developed or
41-11 rehabilitated through the fund remain affordable to
41-12 income-qualified households for at least 20 years.
41-13 SECTION 45. Sections 2306.205(a), (c), (d), and (e),
41-14 Government Code, are amended to read as follows:
41-15 (a) Except as provided by Subsections (c), (d), and (e), not
41-16 later than January 10 of each year the department <housing finance
41-17 division> shall transfer to the housing trust fund an amount, as
41-18 determined by the audit report prepared under Section 2306.074(c)
41-19 <2306.204>, equal to one-half of the department's <housing finance
41-20 division's> unencumbered fund balances in excess of two percent of
41-21 the department's <division's> total bonded indebtedness that is not
41-22 rated on its own merits in the highest long-term debt rating
41-23 category by one or more nationally recognized rating agencies.
41-24 (c) If, at the time an annual audit required by Section
41-25 2306.074(c) <2306.204> is concluded, the department's <housing
41-26 finance division's> unencumbered fund balances exceed four percent
41-27 of its total bonded indebtedness that is not rated on its own
42-1 merits in the highest long-term debt rating category, the
42-2 department shall transfer not later than January 10 of the next
42-3 year all amounts in excess of that four percent.
42-4 (d) If, at the time an annual audit required by Section
42-5 2306.074(c) <2306.204> is concluded, a nationally recognized rating
42-6 agency has recommended that the department <housing finance
42-7 division> maintain unencumbered fund balances in excess of the
42-8 amount permitted by Subsection (a) to achieve or maintain a rating
42-9 of at least Aa/A+ on all or a portion of the bonded indebtedness of
42-10 the department <housing finance division> that is issued under an
42-11 open indenture or an open flow of funds, the department shall
42-12 transfer not later than January 10 of the next year all amounts in
42-13 excess of the amount required by the rating agency to be held as
42-14 unencumbered fund balances.
42-15 (e) If, at the time an annual audit required by Section
42-16 2306.074(c) <2306.204> is concluded, a nationally recognized rating
42-17 agency has recommended that the department <housing finance
42-18 division> increase the amount of its unencumbered fund balances to
42-19 achieve or maintain a financially sound condition or to prevent a
42-20 decrease in the long-term debt rating maintained on all or a
42-21 portion of the department's <housing finance division's> bonded
42-22 indebtedness, the department <housing finance division> may not
42-23 make further annual transfers to the housing trust fund until all
42-24 requirements and conditions of the rating agency have been met.
42-25 SECTION 46. Section 2306.207, Government Code, is amended to
42-26 read as follows:
42-27 Sec. 2306.207. RESERVE FUND. (a) The department <housing
43-1 finance division> may create a reserve fund with the state
43-2 treasurer out of:
43-3 (1) proceeds from the sale of the department's
43-4 <division's> bonds; or
43-5 (2) other resources.
43-6 (b) The reserve fund is additional security for the
43-7 department's <division's> bonds.
43-8 SECTION 47. The heading to Subchapter J, Chapter 2306,
43-9 Government Code, is amended to read as follows:
43-10 SUBCHAPTER J. HOUSING <FINANCE DIVISION:>
43-11 LOAN TERMS AND CONDITIONS
43-12 SECTION 48. Section 2306.223, Government Code, is amended to
43-13 read as follows:
43-14 Sec. 2306.223. CRITERIA FOR FINANCING HOUSING DEVELOPMENT OF
43-15 HOUSING SPONSOR. Notwithstanding any other provision of this
43-16 chapter, the department may not finance a housing development
43-17 undertaken by a housing sponsor under this chapter, unless the
43-18 department first determines that:
43-19 (1) the housing development is necessary to provide
43-20 needed decent, safe, and sanitary housing at rentals or prices that
43-21 individuals or families of low and very low income or families of
43-22 moderate income can afford;
43-23 (2) the housing sponsor undertaking the proposed
43-24 housing development will supply well-planned and well-designed
43-25 housing for individuals or families of low and very low income or
43-26 families of moderate income;
43-27 (3) the housing sponsor is financially responsible;
44-1 (4) the financing of the housing development is a
44-2 public purpose and will provide a public benefit; and
44-3 (5) the housing development will be undertaken within
44-4 the authority granted by this chapter to the department <housing
44-5 finance division> and the housing sponsor.
44-6 SECTION 49. Section 2306.224, Government Code, is amended to
44-7 read as follows:
44-8 Sec. 2306.224. HOUSING LOAN TERMS AND CONDITIONS. A housing
44-9 loan financed by the department <through a program of the housing
44-10 finance division> under this chapter <subchapter> is subject to the
44-11 terms and conditions provided by this chapter <subchapter>.
44-12 SECTION 50. Section 2306.227, Government Code, is amended to
44-13 read as follows:
44-14 Sec. 2306.227. PREPAYMENT OF MORTGAGE LOANS. A mortgage loan
44-15 made under this chapter may be prepaid to maturity after the period
44-16 of years and under the terms and conditions determined by the
44-17 department <board>.
44-18 SECTION 51. Section 2306.230, Government Code, is amended to
44-19 read as follows:
44-20 Sec. 2306.230. AGREEMENTS REGARDING CERTAIN LIMITATIONS ON
44-21 HOUSING SPONSORS. A housing development <mortgage loan> is subject
44-22 to an agreement between the department and the housing sponsor that
44-23 subjects the sponsor, including <and> its principals or
44-24 stockholders, if any, to limitations established by the department
44-25 regarding:
44-26 (1) rentals and other charges;
44-27 (2) builders' and developers' profits and fees;
45-1 (3) the disposition of its property; and
45-2 (4) the real property that constitutes the site of or
45-3 relates to the housing development.
45-4 SECTION 52. Section 2306.231, Government Code, is amended to
45-5 read as follows:
45-6 Sec. 2306.231. <LOAN> CONDITIONS RELATING TO FUNDING BY
45-7 DEPARTMENT <POWERS>. As a condition of funding <each loan>, the
45-8 department<, acting through the housing finance division,> may at
45-9 any time during the construction, rehabilitation, or operation of a
45-10 housing development:
45-11 (1) enter and inspect the housing development to:
45-12 (A) investigate the development's:
45-13 (i) physical and financial condition;
45-14 (ii) construction;
45-15 (iii) rehabilitation;
45-16 (iv) operation;
45-17 (v) management; <and>
45-18 (vi) maintenance; and
45-19 (vii) compliance with restrictive
45-20 covenants; and
45-21 (B) examine all books and records relating to:
45-22 (i) capitalization;
45-23 (ii) income and expenses; and
45-24 (iii) other matters regarding
45-25 capitalization or income and expenses;
45-26 (2) impose charges that are required to cover the cost
45-27 of inspections and examinations under Subdivision (1);
46-1 (3) order alterations, changes, or repairs necessary
46-2 to protect:
46-3 (A) the security of the department's investment
46-4 in a housing development; or
46-5 (B) the health, safety, and welfare of the
46-6 occupants of a housing development;
46-7 (4) order a managing agent, housing development
46-8 manager, or housing development owner to do whatever is necessary
46-9 to comply with or refrain from violating an applicable law,
46-10 ordinance, department rule, or term of an agreement regarding the
46-11 housing development; and
46-12 (5) file and prosecute a complaint against a managing
46-13 agent, housing development manager, or housing development owner
46-14 for a violation of any applicable law or ordinance.
46-15 SECTION 53. Section 2306.232, Government Code, is amended to
46-16 read as follows:
46-17 Sec. 2306.232. TEXAS HOUSING AGENCY LOAN OR GUARANTEE. A
46-18 loan or guarantee made by the Texas Housing Agency becomes a loan
46-19 or guarantee of the department <housing finance division>.
46-20 SECTION 54. The heading of Subchapter K, Chapter 2306,
46-21 Government Code, is amended to read as follows:
46-22 SUBCHAPTER K. PROPERTY OWNERSHIP AND
46-23 <HOUSING FINANCE DIVISION:> HOUSING PROGRAMS
46-24 SECTION 55. Section 2306.251, Government Code, is amended to
46-25 read as follows:
46-26 Sec. 2306.251. PROPERTY OWNERSHIP PROGRAM. (a) The
46-27 department may acquire and own real property on an interim basis
47-1 not to exceed five years for sale or rental to:
47-2 (1) individuals and families of low and very low
47-3 income; and
47-4 (2) nonprofit housing organizations and other housing
47-5 organizations to serve the needs of individuals and families of low
47-6 and very low income and families of moderate income.
47-7 (b) Property acquired by the department must qualify for
47-8 home mortgage insurance after rehabilitation.
47-9 (c) The department <housing finance division> may use money
47-10 from the housing trust fund, <or> unencumbered fund balances, or
47-11 appropriations, allocations, grants, or gifts from any public or
47-12 private source to purchase property under this section.
47-13 (d) The department <division> may <not> use money from <more
47-14 than 10 percent of the yearly balance of> the housing trust fund to
47-15 acquire real property and to endow the fund.
47-16 (e) <(d)> If the department acquires property under this
47-17 section, the department <housing finance division> shall submit an
47-18 annual report to the board <have an independent audit conducted
47-19 annually> to analyze the property ownership program's:
47-20 (1) financial stability;
47-21 (2) cost-effectiveness; and
47-22 (3) effectiveness in serving individuals of low and
47-23 very low income.
47-24 SECTION 56. Section 2306.252, Government Code, is amended to
47-25 read as follows:
47-26 Sec. 2306.252. LOW AND VERY LOW INCOME HOUSING RESOURCE
47-27 CENTER. (a) The department <board> shall establish a low and very
48-1 low income housing resource center <in the housing finance
48-2 division>.
48-3 (b) The center shall:
48-4 (1) provide research and educational material to
48-5 housing advocates, housing sponsors, borrowers, and tenants;
48-6 (2) provide training and technical assistance to
48-7 nonprofit housing sponsors; and
48-8 (3) <focus on marketing loans and other programs of
48-9 the housing finance division to individuals and families of low and
48-10 very low income; and>
48-11 <(4)> assist <lenders> in the development of housing
48-12 policy <marketing loans to individuals and families of low and very
48-13 low income>.
48-14 SECTION 57. The heading of Subchapter L, Chapter 2306,
48-15 Government Code, is amended to read as follows:
48-16 SUBCHAPTER L. <HOUSING FINANCE DIVISION:>
48-17 REGULATION OF HOUSING SPONSORS
48-18 SECTION 58. Section 2306.261, Government Code, is amended to
48-19 read as follows:
48-20 Sec. 2306.261. SUPERVISING HOUSING SPONSORS. The department
48-21 <housing finance division> may, as provided by this subchapter,
48-22 supervise:
48-23 (1) housing sponsors, including limited profit housing
48-24 sponsors, of housing developments that are financed under this
48-25 chapter and rented or leased to tenants; and
48-26 (2) real and personal property of sponsors.
48-27 SECTION 59. Section 2306.263, Government Code, is amended to
49-1 read as follows:
49-2 Sec. 2306.263. REPORTING. The department may require
49-3 housing sponsors to:
49-4 (1) make reports and certifications of their
49-5 operations and expenditures; and
49-6 (2) answer specific questions on forms whenever
49-7 necessary for the purposes of this chapter.
49-8 SECTION 60. Section 2306.264, Government Code, is amended to
49-9 read as follows:
49-10 Sec. 2306.264. INSPECTIONS AND EXAMINATIONS. The
49-11 department, through its agents or employees, may:
49-12 (1) enter and inspect, in whole or in part, the land,
49-13 buildings, and equipment of a housing sponsor; and
49-14 (2) examine all records showing the capital structure,
49-15 income, operations, expenditures, and other payments of a housing
49-16 sponsor.
49-17 SECTION 61. Section 2306.267, Government Code, is amended to
49-18 read as follows:
49-19 Sec. 2306.267. COMPLIANCE WITH APPLICABLE LAWS, RULES, AND
49-20 CONTRACT TERMS. The department may order a housing sponsor to
49-21 perform or refrain from performing certain acts in order to comply
49-22 with the law, department policies <housing finance division rules>,
49-23 or terms of a contract or agreement to which the housing sponsor is
49-24 a party.
49-25 SECTION 62. Section 2306.270, Government Code, is amended to
49-26 read as follows:
49-27 Sec. 2306.270. REGULATION OF RETIREMENT OF CAPITAL
50-1 INVESTMENT OR REDEMPTION OF STOCK. The department shall regulate
50-2 the retirement of a capital investment or the redemption of stock
50-3 of a limited profit housing sponsor if the retirement or
50-4 redemption, when added to a dividend or other distribution, exceeds
50-5 in any one fiscal year the permitted percentage, as allowed by the
50-6 department <housing finance division's rules>, of the original face
50-7 amount of the limited profit housing sponsor's investment or equity
50-8 in a housing development.
50-9 SECTION 63. Section 2306.271, Government Code, is amended to
50-10 read as follows:
50-11 Sec. 2306.271. COST CONTROLS. (a) The department <housing
50-12 finance division by rule> shall specify the categories of costs
50-13 allowable in the construction, reconstruction, remodeling,
50-14 improvement, or rehabilitation of a housing development.
50-15 (b) The department <housing finance division> shall require
50-16 a housing sponsor to certify the actual housing development costs
50-17 on completion of the housing development, subject to audit and
50-18 determination by the department.
50-19 (c) The department may accept, instead of certification of
50-20 housing development costs under Subsection (b), other assurances of
50-21 the costs, in any form, that will enable the department <housing
50-22 finance division> to determine with reasonable accuracy the amount
50-23 of the costs.
50-24 (d) In this section, "housing development costs" means the
50-25 total of all costs incurred in financing, creating, or purchasing a
50-26 housing development, including a single-family dwelling, approved
50-27 by the department as reasonable and necessary. The costs may
51-1 include:
51-2 (1) the value of land and buildings on the land owned
51-3 by the sponsor or the cost of acquiring land and buildings on the
51-4 land, including payments for options, deposits, or contracts to
51-5 purchase properties on the proposed housing site;
51-6 (2) costs of site preparation, demolition, and
51-7 development;
51-8 (3) expenses relating to the issuance of bonds;
51-9 (4) fees paid or payable in connection with the
51-10 planning, execution, and financing of the housing development,
51-11 including fees to:
51-12 (A) architects;
51-13 (B) engineers;
51-14 (C) attorneys;
51-15 (D) accountants; or
51-16 (E) the department <housing finance division on
51-17 the department's behalf>;
51-18 (5) costs of necessary studies, surveys, plans,
51-19 permits, insurance, interest, financing, tax and assessment costs,
51-20 and other operating and carrying costs during construction;
51-21 (6) costs of construction, rehabilitation,
51-22 reconstruction, fixtures, furnishings, equipment, machinery, and
51-23 apparatus related to the real property;
51-24 (7) costs of land improvements, including landscaping
51-25 and off-site improvements, whether or not the costs have been paid
51-26 in cash or in a form other than cash;
51-27 (8) necessary expenses for the initial occupancy of
52-1 the housing development;
52-2 (9) a reasonable profit and risk fee in addition to
52-3 job overhead to the general contractor or limited profit housing
52-4 sponsor;
52-5 (10) an allowance established by the department for
52-6 working capital and contingency reserves and reserves for
52-7 anticipated operating deficits during the first two years of
52-8 occupancy; and
52-9 (11) the cost of other items, including tenant
52-10 relocation if tenant relocation costs are not otherwise provided
52-11 for, that the department determines are reasonable and necessary
52-12 for the development of the housing development, less net rents and
52-13 other net revenues received from the operation of the real and
52-14 personal property on the development site during construction.
52-15 SECTION 64. Sections 2306.272(a) and (b), Government Code,
52-16 are amended to read as follows:
52-17 (a) A principal or stockholder of a housing sponsor may not
52-18 earn, accept, or receive a per annum return on an investment in a
52-19 housing development financed by the department greater than that
52-20 allowed the <by> department <rule>.
52-21 (b) A housing sponsor's equity in a housing development may
52-22 be either <is> the difference between the mortgage loan and the
52-23 total housing development cost or another amount determined by the
52-24 department.
52-25 SECTION 65. The heading of Subchapter M, Chapter 2306,
52-26 Government Code, is amended to read as follows:
52-27 SUBCHAPTER M. <HOUSING FINANCE DIVISION:>
53-1 PURCHASE AND SALE OF MORTGAGE LOANS
53-2 SECTION 66. Section 2306.291, Government Code, is amended by
53-3 amending Subsection (a) and by adding Subsection (c) to read as
53-4 follows:
53-5 (a) The department may purchase and take assignments from
53-6 mortgage lenders or the federal government of notes and other
53-7 obligations, including contracts for deed, mortgages, or other
53-8 obligations evidencing loans or interest in loans for the
53-9 construction, remodeling, improvement or rehabilitation, purchase,
53-10 leasing, or refinancing of housing developments for individuals and
53-11 families of low and very low income and families of moderate
53-12 income.
53-13 (c) In this section, "contract for deed" means a
53-14 seller-financed contract for the conveyance of land under which
53-15 legal title does not pass to the purchaser until consideration
53-16 under the contract is fully paid to the seller and the seller's
53-17 remedy for nonpayment is forfeiture rather than judicial or
53-18 nonjudicial foreclosure. The purchaser under a contract for deed
53-19 is not disqualified on that basis as a first time homebuyer.
53-20 SECTION 67. Section 2306.292, Government Code, is amended to
53-21 read as follows:
53-22 Sec. 2306.292. ELIGIBILITY OF MORTGAGE LOANS FOR PURCHASE.
53-23 A mortgage loan or interest in a mortgage loan is not eligible for
53-24 purchase by or on behalf of the department from a mortgage lender
53-25 unless the mortgage lender certifies that the mortgage loan or
53-26 interest in the mortgage loan is for a housing development that
53-27 includes benefits for individuals or families of low and very low
54-1 income or for families of moderate income.
54-2 SECTION 68. Section 2306.294, Government Code, is amended to
54-3 read as follows:
54-4 Sec. 2306.294. MORTGAGE LOAN PURCHASE PRICE. <(a)> On
54-5 purchasing a mortgage loan or interest in a mortgage loan from a
54-6 mortgage lender, the department may <shall> pay a purchase price
54-7 equal to the outstanding principal balance and accrued interest,
54-8 except that a discount <from the principal balance> or the payment
54-9 of a premium may be used to produce a fair rate of return
54-10 consistent with the obligations of the department and the purposes
54-11 of this chapter.
54-12 <(b) In addition to payment of the outstanding principal
54-13 balance, the department shall pay the accrued interest due to the
54-14 date on which the mortgage loan is delivered against payment.>
54-15 SECTION 69. Section 2306.295, Government Code, is amended to
54-16 read as follows:
54-17 Sec. 2306.295. POLICIES <RULES> GOVERNING PURCHASE AND SALE
54-18 OF MORTGAGE LOANS. The department shall adopt policies <rules>
54-19 governing the purchase and sale of mortgage loans and the
54-20 application of sale proceeds, including policies <rules> governing:
54-21 (1) procedures for submitting requests or inviting
54-22 proposals for the purchase and sale of mortgage loans or interest
54-23 in the mortgage loans;
54-24 (2) restrictions on the number of family units,
54-25 location, or other qualifications of residences to be financed by
54-26 residential mortgage loans;
54-27 (3) income limits of individuals and families of low
55-1 and very low income or families of moderate income occupying a
55-2 residence financed by a residential mortgage loan;
55-3 (4) restrictions relating to the interest rates on
55-4 mortgage loans or the return realized by mortgage lenders;
55-5 (5) requirements for commitments by mortgage lenders
55-6 relating to mortgage loans;
55-7 (6) schedules of fees and charges necessary for
55-8 expenses and reserves of the department <housing finance division>;
55-9 (7) resale of the housing development; and
55-10 (8) any other matter related to the power of the
55-11 department to purchase and sell mortgage loans or interests in
55-12 mortgage loans.
55-13 SECTION 70. Section 2306.296(a), Government Code, is amended
55-14 to read as follows:
55-15 (a) The department shall review each mortgage loan purchased
55-16 or financed by the department to determine if the loan meets:
55-17 (1) the conditions of this chapter; and
55-18 (2) <the department's rules; and>
55-19 <(3)> any commitment made with the mortgage lender to
55-20 purchase mortgage loans.
55-21 SECTION 71. Section 2306.297, Government Code, is amended to
55-22 read as follows:
55-23 Sec. 2306.297. APPLICATION OF PROVISIONS RELATING TO LOAN
55-24 TERMS AND CONDITIONS. Sections 2306.0515, 2306.089, 2306.225,
55-25 2306.227, and <through> 2306.229 apply to the purchase of mortgage
55-26 loans.
55-27 SECTION 72. The heading of Subchapter N, Chapter 2306,
56-1 Government Code, is amended to read as follows:
56-2 SUBCHAPTER N. <HOUSING FINANCE DIVISION;>
56-3 TENANTS OF HOUSING DEVELOPMENTS
56-4 SECTION 73. Section 2306.315, Government Code, is amended to
56-5 read as follows:
56-6 Sec. 2306.315. DISCHARGE FROM LIABILITY; REIMBURSEMENT. If
56-7 an individual or family who resides in a cooperative housing
56-8 development is required to move from the development because of
56-9 excessive income, the individual or family must be:
56-10 (1) discharged from liability for any note, bond, or
56-11 other evidence of indebtedness; and
56-12 (2) reimbursed, as required by the <under> department
56-13 <rules>, for all sums paid to the housing sponsor on account of
56-14 the:
56-15 (A) purchase of stock or debentures as a
56-16 condition of occupancy; or
56-17 (B) acquisition of title for that purpose.
56-18 SECTION 74. The heading of Subchapter O, Chapter 2306,
56-19 Government Code, is amended to read as follows:
56-20 SUBCHAPTER O. <HOUSING FINANCE DIVISION;> REGULATION OF
56-21 MORTGAGE LENDERS, SERVICERS, AND CONTRACTORS
56-22 SECTION 75. Section 2306.332, Government Code, is amended to
56-23 read as follows:
56-24 Sec. 2306.332. MONITORING MORTGAGE LENDERS. The department
56-25 shall develop a written plan to monitor and review <audit> the
56-26 performance of mortgage lenders. The plan must include a
56-27 requirement:
57-1 (1) that mortgage lenders comply with quality control
57-2 standards established by appropriate federal agencies;
57-3 (2) for a review <an audit> of mortgage lenders'
57-4 compliance with program guidelines to be conducted by random
57-5 selection of loans and associated paperwork for review;
57-6 (3) for monitoring delinquency and foreclosure rates
57-7 for currently participating mortgage lenders to identify
57-8 unfavorable trends;
57-9 (4) for an extensive review <audit> after a finding of
57-10 an unfavorable trend under Subdivision (3); and
57-11 (5) for reporting the information gathered under this
57-12 section to the director and the board.
57-13 SECTION 76. Section 2306.333, Government Code, is amended to
57-14 read as follows:
57-15 Sec. 2306.333. MONITORING MORTGAGE SERVICERS. The
57-16 department <housing finance division> shall develop a written plan
57-17 to monitor and review <audit> the performance of mortgage
57-18 servicers. The plan must include:
57-19 (1) a method of developing criteria to evaluate the
57-20 performance of servicers;
57-21 (2) a method of monitoring the performance of a
57-22 servicer under the criteria developed under Subdivision (1);
57-23 (3) a requirement for a review of the financial
57-24 statements of a servicer;
57-25 (4) a process for an extensive review <audit> of
57-26 servicers who repeatedly violate the terms of the servicers'
57-27 contracts with the department;
58-1 (5) the designation of a review <an audit> team
58-2 consisting of staff members from relevant areas of the department
58-3 <housing finance division>; and
58-4 (6) a method of reporting the information gathered
58-5 under this section to the director and the board.
58-6 SECTION 77. Section 2306.334, Government Code, is amended to
58-7 read as follows:
58-8 Sec. 2306.334. MONITORING CONTRACTORS. The department shall
58-9 develop a written plan to monitor and review <audit> the
58-10 performance of real estate owned contractors and other contractors.
58-11 The plan must include:
58-12 (1) a requirement for a periodic inspection of
58-13 foreclosed property;
58-14 (2) a method of monitoring contractors' performance of
58-15 contract requirements; and
58-16 (3) a requirement for a periodic review of
58-17 contractors' billing procedures.
58-18 SECTION 78. The heading of Subchapter P, Chapter 2306,
58-19 Government Code, is amended to read as follows:
58-20 SUBCHAPTER P. <HOUSING FINANCE DIVISION BONDS:>
58-21 ISSUANCE OF BONDS
58-22 SECTION 79. Sections 2306.353(a) and (c), Government Code,
58-23 are amended to read as follows:
58-24 Sec. 2306.353. REVENUE BONDS. (a) In addition to issuing
58-25 general obligation bonds under Section 2306.352, the department may
58-26 issue revenue bonds to provide money to carry out a purpose, power,
58-27 or duty of the department <housing finance division> under this
59-1 chapter.
59-2 (c) The bonds shall be payable as to principal, interest,
59-3 and redemption premium, if any, from, and secured by, a first or
59-4 subordinate lien on, and pledge of, all or part of the revenues,
59-5 income, or other resources of the department <housing finance
59-6 division>, including:
59-7 (1) the repayments of mortgage loans;
59-8 (2) the earnings from investment or deposit of the
59-9 reserve fund and other funds of the department <housing finance
59-10 division>;
59-11 (3) the fees, charges, and other amounts or payments
59-12 received under this chapter; and
59-13 (4) appropriations, grants, allocations, subsidies,
59-14 rent supplements, guaranties, aid, contribution, or donations.
59-15 SECTION 80. Section 2306.357, Government Code, is amended to
59-16 read as follows:
59-17 Sec. 2306.357. BONDS ISSUED BY TEXAS HOUSING AGENCY. A
59-18 general obligation or revenue bond issued by the Texas Housing
59-19 Agency becomes a general obligation or revenue bond of the
59-20 department <housing finance division>.
59-21 SECTION 81. The heading of Subchapter Q, Chapter 2306,
59-22 Government Code, is amended to read as follows:
59-23 SUBCHAPTER Q. <HOUSING FINANCE DIVISION BONDS:>
59-24 BOARD ACTION ON BONDS
59-25 SECTION 82. The heading of Subchapter R, Chapter 2306,
59-26 Government Code, is amended to read as follows:
59-27 SUBCHAPTER R. <HOUSING FINANCE DIVISION> BONDS: FORM; TERMS
60-1 SECTION 83. The heading of Subchapter S, Chapter 2306,
60-2 Government Code, is amended to read as follows:
60-3 SUBCHAPTER S. <HOUSING FINANCE DIVISION BONDS:>
60-4 SECURITY FOR BONDS
60-5 SECTION 84. Section 2306.411(a), Government Code, is amended
60-6 to read as follows:
60-7 (a) In addition to other security for the department's bonds
60-8 authorized by this chapter, payment of the principal and interest
60-9 and redemption premium, if any, on the department's bonds may be
60-10 secured by a first or subordinate lien on and pledge of all or part
60-11 of:
60-12 (1) the department's assets and real, personal, or
60-13 mixed property, including:
60-14 (A) mortgages or other obligations securing the
60-15 assets of property;
60-16 (B) investments; and
60-17 (C) trust agreements or trust indentures
60-18 administered by one or more corporate trustees as allowed by the
60-19 board; and
60-20 (2) the reserves or funds of the department <housing
60-21 finance division>.
60-22 SECTION 85. Section 2306.412(a), Government Code, is amended
60-23 to read as follows:
60-24 (a) A lien on or pledge of revenues, income, assets,
60-25 reserves, funds, or other resources of the department <housing
60-26 finance division>, as authorized by this chapter, is valid and
60-27 binding from the time of payment for and delivery of the bonds
61-1 authorized by the board resolution creating or confirming the lien
61-2 or pledge.
61-3 SECTION 86. The heading of Subchapter T, Chapter 2306,
61-4 Government Code, is amended to read as follows:
61-5 SUBCHAPTER T. <HOUSING FINANCE DIVISION BONDS:>
61-6 APPROVAL, REGISTRATION, AND EXECUTION OF BONDS
61-7 SECTION 87. The heading of Subchapter U, Chapter 2306,
61-8 Government Code, is amended to read as follows:
61-9 SUBCHAPTER U. <HOUSING FINANCE DIVISION BONDS:>
61-10 RIGHTS AND REMEDIES OF BOND HOLDERS AND PARTIES IN INTEREST
61-11 SECTION 88. The heading of Subchapter V, Chapter 2306,
61-12 Government Code, is amended to read as follows:
61-13 SUBCHAPTER V. DEPARTMENT <HOUSING FINANCE DIVISION> BONDS:
61-14 OBLIGATIONS OF DEPARTMENT AND STATE
61-15 SECTION 89. Section 2306.472, Government Code, is amended to
61-16 read as follows:
61-17 Sec. 2306.472. DEPARTMENT'S BONDS OTHER THAN GENERAL
61-18 OBLIGATION BONDS NOT OBLIGATIONS OF THE STATE. Except for bonds
61-19 authorized by the Texas Constitution and issued under Section
61-20 2306.352, the department's bonds:
61-21 (1) are solely obligations of the department and are
61-22 payable solely from funds of the department's bond-financed
61-23 activities <housing finance division>;
61-24 (2) are not an obligation, debt, or liability of the
61-25 state; and
61-26 (3) do not create or constitute a pledge, giving, or
61-27 lending of the faith, credit, or taxing power of the state.
62-1 SECTION 90. The heading of Subchapter W, Chapter 2306,
62-2 Government Code, is amended to read as follows:
62-3 SUBCHAPTER W. DEPARTMENT <HOUSING FINANCE DIVISION> BONDS:
62-4 MISCELLANEOUS PROVISIONS
62-5 SECTION 91. Section 2306.491, Government Code, is amended to
62-6 read as follows:
62-7 Sec. 2306.491. BONDS NEGOTIABLE INSTRUMENTS.
62-8 Notwithstanding any other statute, a bond and interest coupon
62-9 issued and delivered by the department <housing finance division>
62-10 is a negotiable instrument under the Uniform Commercial Code,
62-11 except that the bond may be registered or subject to registration
62-12 under this chapter.
62-13 SECTION 92. Section 2306.513, Government Code, is amended to
62-14 read as follows:
62-15 Sec. 2306.513. HOUSING FOR INDIVIDUALS WITH SPECIAL NEEDS.
62-16 (a) The board shall adopt policies <rules> to achieve occupancy by
62-17 individuals with special needs of at least five percent of the
62-18 units in each multifamily housing development.
62-19 (b) Subsection (a) applies only to a multifamily housing
62-20 development that contains at least 20 units and is financed by
62-21 bonds issued under this chapter.
62-22 (c) If a survey that is conducted by the housing sponsor and
62-23 verified by the department <housing finance division> reveals that
62-24 there is not sufficient need for housing for individuals with
62-25 special needs in the area in which the development will be built or
62-26 renovated to justify building or renovating and reserving at least
62-27 five percent of the units for individuals with special needs, the
63-1 department may, on a showing of good cause by the housing sponsor,
63-2 lower the requirements to correspond to the amount of need found by
63-3 the housing sponsor.
63-4 <(d) The housing finance division shall cooperate with the
63-5 Texas Department on Aging to implement this section and shall
63-6 reimburse the department for the costs of:>
63-7 <(1) assessing the need for housing for individuals
63-8 with special needs in different locations;>
63-9 <(2) setting standards relating to the design and
63-10 construction of housing for individuals with special needs;>
63-11 <(3) providing planning assistance to builders; and>
63-12 <(4) publicizing the availability of the housing
63-13 program to potential developers and residents.>
63-14 <(e) The department and the Texas Department on Aging shall
63-15 determine a procedure for paying for services provided by the Texas
63-16 Department on Aging.>
63-17 SECTION 93. Chapter 2306, Government Code, is amended by
63-18 adding Subchapter Y to read as follows:
63-19 SUBCHAPTER Y. TEXAS STATE AFFORDABLE HOUSING CORPORATION
63-20 Sec. 2306.551. DEFINITION. In this subchapter,
63-21 "corporation" means the Texas State Affordable Housing Corporation.
63-22 Sec. 2306.552. CREATION. (a) The existence of the Texas
63-23 State Affordable Housing Corporation, or any similarly named
63-24 corporation, begins on the date that the secretary of state issues
63-25 the certificate of incorporation.
63-26 (b) The charter of the corporation must establish the
63-27 corporation as nonprofit and specifically dedicate the
64-1 corporation's activities to the benefit of the department.
64-2 (c) The creation of the corporation does not limit or impair
64-3 the rights, powers, and duties of the department under this
64-4 chapter.
64-5 Sec. 2306.553. PURPOSES. (a) The corporation shall carry
64-6 out the public purposes of this chapter on behalf of the state.
64-7 (b) The corporation may engage only in the performance of
64-8 charitable functions.
64-9 Sec. 2306.554. BOARD OF DIRECTORS. The members of the board
64-10 serve as the board of directors of the corporation.
64-11 Sec. 2306.555. POWERS. (a) The corporation has the rights
64-12 and powers of a nonprofit corporation incorporated under the Texas
64-13 Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
64-14 Texas Civil Statutes).
64-15 (b) The corporation may contract with the department and
64-16 with bond counsel, financial advisors, or underwriters.
64-17 (c) A member of the board of directors or an officer or
64-18 employee of the corporation is not liable personally for bonds
64-19 issued or contracts executed by the corporation or for any other
64-20 action taken in accordance with the powers and duties authorized by
64-21 this subchapter.
64-22 Sec. 2306.556. TAX EXEMPT. The corporation is exempt from
64-23 all taxation by the state or a political subdivision of the state,
64-24 including a municipality.
64-25 Sec. 2306.557. DISTRIBUTION OF EARNINGS. Any part of
64-26 earnings remaining after payment of expenses may not inure to any
64-27 person except that the corporation shall deposit these earnings to
65-1 the credit of the general revenue fund for the benefit of the
65-2 department if the corporation's board of directors determines that
65-3 sufficient provision has been made for the full payment of the
65-4 expenses, bonds, and other obligations of the corporation.
65-5 Sec. 2306.558. ALTERATION AND TERMINATION. (a) Subject to
65-6 this subchapter and the prohibition on the impairment of contracts
65-7 in the law of this state, the corporation's board of directors by
65-8 written resolution may alter the structure, organization, programs,
65-9 or activities of the corporation or terminate and dissolve the
65-10 corporation.
65-11 (b) The corporation's board of directors shall dissolve the
65-12 corporation if the board by resolution determines that:
65-13 (1) the purposes for which the corporation was formed
65-14 have been substantially fulfilled; and
65-15 (2) all bonds issued by the corporation have been
65-16 fully paid.
65-17 (c) On dissolution, the title to funds and properties
65-18 previously owned by the corporation shall be transferred to the
65-19 department.
65-20 Sec. 2306.559. ANNUAL REPORT. (a) The corporation shall
65-21 file an annual report of the financial activity of the corporation
65-22 with the department.
65-23 (b) The corporation shall file the report before the 90th
65-24 day after the last day of the corporation's fiscal year.
65-25 (c) The corporation shall prepare the report in accordance
65-26 with generally accepted accounting principles.
65-27 (d) The report must include:
66-1 (1) a statement of support, revenue, and expenses and
66-2 change in fund balances;
66-3 (2) a statement of functional expenses; and
66-4 (3) balance sheets for all funds.
66-5 SECTION 94. Chapter 2306, Government Code, is amended by
66-6 adding Subchapter Z to read as follows:
66-7 SUBCHAPTER Z. EMERGENCY NUTRITION AND TEMPORARY
66-8 EMERGENCY RELIEF PROGRAM
66-9 Sec. 2306.601. PURPOSE. (a) The legislature finds that:
66-10 (1) economic and demographic changes have created
66-11 rapid increases in the number of needy persons who are homeless or
66-12 without other necessities of basic existence;
66-13 (2) local governments and nonprofit service
66-14 organizations are unable to meet the increased financial burden
66-15 caused by those changes in various areas of the state; and
66-16 (3) the dramatic nature of the emergency relief needs
66-17 in various localities has contributed to family instability and
66-18 threatened the social and economic stability of those communities.
66-19 (b) The intent of this subchapter is to serve a public
66-20 purpose and the goals of the state by providing state money to
66-21 supplement any local or federal money available to provide
66-22 emergency relief to needy persons.
66-23 Sec. 2306.602. DEFINITIONS. In this subchapter:
66-24 (1) "Applicant" means the commissioners court of a
66-25 county, the governing body of another political subdivision, or a
66-26 nonprofit organization.
66-27 (2) "Nonprofit organization" means a private,
67-1 nonprofit, tax-exempt corporation listed in Section 501(c)(3),
67-2 Internal Revenue Code (26 U.S.C. Section 501(c)(3)).
67-3 (3) "Program" means a system of providing temporary
67-4 emergency relief to needy persons.
67-5 Sec. 2306.603. TEMPORARY EMERGENCY RELIEF FUND. (a) The
67-6 department shall establish a temporary emergency relief fund from
67-7 money appropriated for that purpose in order to assist counties, in
67-8 cooperation with other public entities and nonprofit organizations,
67-9 in meeting the needs of individuals and families for temporary
67-10 emergency relief.
67-11 (b) The department shall establish the emergency nutrition
67-12 program as part of the temporary emergency relief program
67-13 established under this subchapter. The emergency nutrition program
67-14 may allocate money from the temporary emergency relief fund to meet
67-15 the unmet need for emergency food assistance. The money shall be
67-16 used as a grant to local communities. The department shall
67-17 administer the emergency nutrition program in the same fashion and
67-18 under the same procedures as used to govern the administration of
67-19 the temporary emergency relief program.
67-20 (c) Unobligated and unexpended money that remains in the
67-21 fund at the end of the fiscal biennium and that has not been
67-22 allocated or provided as a supplemental allocation to an applicant
67-23 reverts to the general revenue fund.
67-24 (d) The department may use not more than six percent of the
67-25 fund to pay costs incurred in administering the fund.
67-26 (e) The department shall deposit five percent of the money
67-27 appropriated to the department under this subchapter to the credit
68-1 of a special fund in the state treasury known as the emergency
68-2 contingency fund. The department may not spend the money in the
68-3 emergency contingency fund without the written approval of the
68-4 governor, lieutenant governor, and speaker of the house of
68-5 representatives. The department shall spend the money as directed
68-6 by a joint order of the governor, lieutenant governor, and speaker
68-7 of the house of representatives.
68-8 Sec. 2306.604. APPLICATION. (a) A county may apply to the
68-9 department for a grant-in-aid to establish and administer a program
68-10 under this subchapter.
68-11 (b) If a county declines to act, the department may accept
68-12 applications from other political subdivisions or from nonprofit
68-13 organizations. The political subdivision or nonprofit organization
68-14 must first notify the county judge of the intention to submit an
68-15 application for a grant-in-aid.
68-16 (c) An application submitted under this section must provide
68-17 evidence that a county requires assistance and that the applicant
68-18 has consulted with public entities, nonprofit organizations,
68-19 voluntary associations, representatives of low-income persons, and
68-20 other groups involved in providing assistance to needy persons.
68-21 The department may approve only one program for each county.
68-22 (d) A decision by a county to administer a program under
68-23 this subchapter remains in effect until the county notifies the
68-24 department that the county no longer wants to participate in the
68-25 program. If a county decides to discontinue its participation, the
68-26 department may choose an applicant as an alternative participant as
68-27 prescribed by Subsection (b).
69-1 (e) The department shall develop standards and procedures
69-2 for the program that permit all counties in the state to
69-3 participate.
69-4 Sec. 2306.605. LOCAL ALLOCATION. (a) State money provided
69-5 to a local applicant under this subchapter may not be used for
69-6 local administrative costs.
69-7 (b) An allocation to a county from the fund established by
69-8 Section 2306.603 shall be based on the county's demonstrated need
69-9 for the money. The formula used by the department to allocate the
69-10 money shall include:
69-11 (1) the number of unemployed persons in the county
69-12 during the most recent 12-month period for which data are available
69-13 compared to the number in the state for that period; and
69-14 (2) the number of persons in poverty in the county
69-15 during the most recent 12-month period for which data are available
69-16 compared to the number in the state for that period.
69-17 Sec. 2306.606. LOCAL PLAN; DISBURSEMENT. (a) An applicant
69-18 must submit to the department a plan for providing emergency
69-19 relief.
69-20 (b) The plan must contain a description of the target
69-21 population, the eligibility criteria for receipt of services, the
69-22 nature and scope of benefits to be provided, methods of
69-23 administration, and a budget. The plan must also show evidence of
69-24 consultation with the entities listed in Section 2306.604(c).
69-25 (c) On verification by the department that the applicant
69-26 qualifies under this subchapter, the department shall disburse
69-27 money from the fund to the applicant to be used to establish a
70-1 program in the affected county.
70-2 Sec. 2306.607. ELIGIBILITY AND PROVISION OF ASSISTANCE. (a)
70-3 Each county, political subdivision, or nonprofit organization
70-4 approved by the department for the establishment of a program shall
70-5 adopt its own criteria for persons eligible to receive benefits
70-6 under the program and shall include the criteria in the plan for
70-7 providing emergency relief submitted to the department.
70-8 (b) Before establishing eligibility and the frequency and
70-9 duration of benefits provided under the program, the county,
70-10 political subdivision, or nonprofit organization shall allow
70-11 adequate notice and opportunity for public comment, including
70-12 comments from entities listed in Section 2306.604(c).
70-13 (c) A county, political subdivision, or nonprofit
70-14 organization may not set the eligibility level at less than 75
70-15 percent of the federal poverty level based on the federal Office of
70-16 Management and Budget poverty index in effect at the time the plan
70-17 is submitted to the department.
70-18 (d) Assistance to persons eligible to participate in a
70-19 program authorized by this subchapter shall be provided through
70-20 vouchers and purchased services in accordance with the approved
70-21 plan submitted to the department. The assistance may include the
70-22 provision of utilities, food, housing, and clothing to needy
70-23 persons.
70-24 (e) Records relating to a program under this subchapter are
70-25 subject to audit by the department, an auditor approved by the
70-26 department, or the state auditor.
70-27 Sec. 2306.608. REPORTS; PUBLIC NOTICES. A county, political
71-1 subdivision, or nonprofit organization funded under this subchapter
71-2 shall provide information to the department as necessary to ensure
71-3 that information is provided to the public regarding eligibility
71-4 for and the nature of a program operated under this subchapter.
71-5 Sec. 2306.609. RELATIONSHIP TO FEDERAL LAW. (a) If a
71-6 federal law or regulation is changed without making provision for
71-7 temporary waivers to allow compliance with state law, and, as a
71-8 result of this change, there is insufficient time to comply with
71-9 all the procedures required by this subchapter, the agency or
71-10 entity affected may act so as to comply with federal law and shall
71-11 comply with the applicable procedures required by this subchapter
71-12 as soon as possible.
71-13 (b) If a federal statute or court order conflicts with this
71-14 subchapter, the federal law or court order prevails over this
71-15 subchapter.
71-16 SECTION 95. Section 5.13(a), State Purchasing and General
71-17 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
71-18 amended to read as follows:
71-19 (a) Except as otherwise provided by this article, this
71-20 article shall apply to all building construction projects as herein
71-21 defined which may be undertaken by the state, with the following
71-22 exceptions:
71-23 (1) all projects constructed by and for the Texas
71-24 <State> Department of <Highways and Public> Transportation;
71-25 (2) all projects constructed by and for state
71-26 institutions of higher education;
71-27 (3) pens, sheds, and ancillary buildings constructed
72-1 by and for the Texas Department of Agriculture for the processing
72-2 of livestock prior to export;
72-3 (4) all projects of repair and rehabilitation, except
72-4 major renovations, of buildings and grounds on the commission
72-5 inventory;
72-6 (5) all projects constructed by the Parks and Wildlife
72-7 Department; <and>
72-8 (6) all projects of repair, rehabilitation, and
72-9 construction on property owned by the Texas Department of Housing
72-10 and Community Affairs or the Texas State Affordable Housing
72-11 Corporation; and
72-12 (7) repair and rehabilitation projects of any other
72-13 using agency, provided all labor for such projects is provided by
72-14 the regular maintenance forces of the using agency under specific
72-15 legislative authorization, and provided further, that such projects
72-16 do not require the advance preparation of working plans and/or
72-17 drawings.
72-18 SECTION 96. Section 6.01, State Purchasing and General
72-19 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
72-20 amended to read as follows:
72-21 Sec. 6.01. DEFINITION. In this article, "space" means
72-22 office space, warehouse space, laboratory space, storage space
72-23 exceeding 1,000 gross square feet, or any combination of that
72-24 space. The term <thereof, but> does not include:
72-25 (1) aircraft hangar space;
72-26 (2) <,> radio antenna space;
72-27 (3) <,> boat storage space;
73-1 (4) <,> vehicle parking space;
73-2 (5) <,> residential space for a Texas Department of
73-3 Mental Health and Mental Retardation program;
73-4 (6) <,> residential space for a Texas Youth Commission
73-5 program;
73-6 (7) space acquired by the Texas Department of Housing
73-7 and Community Affairs or the Texas State Affordable Housing
73-8 Corporation with bond proceeds;<,> or
73-9 (8) space to be utilized for less than one month for
73-10 meetings, conferences, seminars, conventions, displays,
73-11 examinations, auctions, or other similar purposes.
73-12 SECTION 97. The following laws are repealed:
73-13 (1) Section 2306.029, Government Code;
73-14 (2) Section 2306.072, Government Code;
73-15 (3) Section 2306.091, Government Code;
73-16 (4) Section 2306.111, Government Code;
73-17 (5) Section 2306.118, Government Code;
73-18 (6) Section 2306.122, Government Code;
73-19 (7) Sections 2306.124-2306.126, Government Code;
73-20 (8) Subchapters G and H, Chapter 2306, Government
73-21 Code;
73-22 (9) Section 2306.204, Government Code;
73-23 (10) Section 2306.226, Government Code;
73-24 (11) Section 2306.266, Government Code;
73-25 (12) Sections 2306.313 and 2306.314, Government Code;
73-26 (13) Section 2306.375, Government Code; and
73-27 (14) Chapter 34, Human Resources Code.
74-1 SECTION 98. (a) In addition to the changes in law made by
74-2 this Act relating to the operations, powers, and duties of the
74-3 Texas Department of Housing and Community Affairs, this Act
74-4 conforms certain provisions of the Government Code regarding that
74-5 department to changes in law made by Chapter 725, Acts of the 73rd
74-6 Legislature, Regular Session, 1993.
74-7 (b) Chapter 725, Acts of the 73rd Legislature, Regular
74-8 Session, 1993, is repealed.
74-9 (c) To the extent of any conflict, this Act prevails over
74-10 another Act of the 74th Legislature, Regular Session, 1995,
74-11 relating to nonsubstantive additions to and corrections in enacted
74-12 codes.
74-13 SECTION 99. This Act takes effect September 1, 1995.
74-14 SECTION 100. The importance of this legislation and the
74-15 crowded condition of the calendars in both houses create an
74-16 emergency and an imperative public necessity that the
74-17 constitutional rule requiring bills to be read on three several
74-18 days in each house be suspended, and this rule is hereby suspended.