1-1 By: Ellis S.B. No. 631 1-2 (In the Senate - Filed February 17, 1995; February 20, 1995, 1-3 read first time and referred to Committee on Intergovernmental 1-4 Relations; April 20, 1995, reported adversely, with favorable 1-5 Committee Substitute by the following vote: Yeas 8, Nays 0; 1-6 April 20, 1995, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 631 By: Ellis 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the duties and assets of housing finance corporations. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Subsection (b), Section 394.023, Local Government 1-13 Code, is amended to read as follows: 1-14 (b) If the board of directors determines that sufficient 1-15 provision has been made for full payment of the expenses, bonds, 1-16 and other obligations of the corporation, any net corporate 1-17 earnings accruing after the determination shall be paid to the 1-18 local government. The local government may use amounts received 1-19 under this subsection only to provide for the housing needs of 1-20 individuals and families with incomes of less than 60 percent of 1-21 the local median family income as determined by the United States 1-22 Department of Housing and Urban Development and adjusted for the 1-23 size of the family. 1-24 SECTION 2. Subsection (b), Section 394.026, Local Government 1-25 Code, is amended to read as follows: 1-26 (b) On the filing of the certificate of dissolution, the 1-27 corporation is dissolved. The title to all funds and property 1-28 owned by the corporation at the time of dissolution vests in the 1-29 local government to be used exclusively by the local government to 1-30 provide for the housing needs of individuals and families with 1-31 incomes of less than 60 percent of the local median family income 1-32 as determined by the United States Department of Housing and Urban 1-33 Development and adjusted for the size of the family. The funds and 1-34 property shall be promptly delivered to the local government. 1-35 SECTION 3. Subchapter C, Chapter 394, Local Government Code, 1-36 is amended by adding Section 394.027 to read as follows: 1-37 Sec. 394.027. ANNUAL REPORT. (a) Before January 31 of each 1-38 year a housing finance corporation shall file with the Texas 1-39 Department of Housing and Community Affairs a report in accordance 1-40 with this section. The department by rule shall prescribe the form 1-41 of the report. 1-42 (b) The report must include for all single-family home 1-43 mortgage loans made by the housing finance corporation or made as a 1-44 result of the activities of the corporation during the preceding 1-45 calendar year: 1-46 (1) the number and total face value of the loans; 1-47 (2) the location by census tracts of the homes for 1-48 which the loans were made; 1-49 (3) the race or ethnicity and family size of the 1-50 borrowers of the loans; and 1-51 (4) the income of the borrowers of the loans. 1-52 (c) The report must include for persons residing in 1-53 multifamily housing units financed by the housing finance 1-54 corporation: 1-55 (1) the incomes and family sizes of the renters; 1-56 (2) the amounts of rent charged; and 1-57 (3) the number of persons, by race or ethnicity, 1-58 residing in the units. 1-59 SECTION 4. The changes in law made by this Act: 1-60 (1) to Sections 394.023 and 394.026, Local Government 1-61 Code, apply only to earnings that are received by and to funds and 1-62 property that vest in a local government on or after the effective 1-63 date of this Act; and 1-64 (2) by the addition of Section 394.027, Local 1-65 Government Code, apply beginning with the first full calendar year 1-66 that begins after the effective date of this Act. 1-67 SECTION 5. This Act takes effect September 1, 1995. 1-68 SECTION 6. The importance of this legislation and the 2-1 crowded condition of the calendars in both houses create an 2-2 emergency and an imperative public necessity that the 2-3 constitutional rule requiring bills to be read on three several 2-4 days in each house be suspended, and this rule is hereby suspended. 2-5 * * * * *