By: Barrientos S.B. No. 1333
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the operations, powers, and duties of the Texas
1-2 Department of Housing and Community Affairs.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2306.002, Government Code, is amended to
1-5 read as follows:
1-6 Sec. 2306.002. POLICY. (a) The legislature finds that:
1-7 (1) every resident of this state should have a decent,
1-8 safe, and affordable living environment; <and>
1-9 (2) government at all levels should be involved in
1-10 assisting individuals and families of low income in obtaining a
1-11 decent, safe, and affordable living environment; and
1-12 (3) the development and diversification of the
1-13 economy, the elimination of unemployment or underemployment, and
1-14 the development or expansion of commerce in this state should be
1-15 encouraged.
1-16 (b) The highest priority of the department is to provide
1-17 assistance to individuals and families of low and very low income
1-18 who are not adequately assisted by private enterprise or other
1-19 governmental programs so that they may obtain affordable housing or
1-20 other services and programs offered by the department.
1-21 SECTION 2. Section 2306.004, Government Code, is amended to
1-22 read as follows:
1-23 Sec. 2306.004. DEFINITIONS. In this chapter:
1-24 (1) "Board" means the governing board of the
2-1 department.
2-2 (2) "Bond" means an evidence of indebtedness or other
2-3 obligation, regardless of the source of payment, issued by the
2-4 department under Section 2306.351 et seq. <Subchapter P>, including
2-5 a bond, note, or bond or revenue anticipation note, regardless of
2-6 whether the obligation is general or special, negotiable or
2-7 nonnegotiable, in bearer or registered form, in certified or
2-8 book-entry form, in temporary or permanent form, or with or without
2-9 interest coupons.
2-10 (3) "Community action agency":
2-11 (A) means an organization:
2-12 (i) that:
2-13 (a) was officially designated as a
2-14 community action agency or a community action program under Section
2-15 210 of the Economic Opportunity Act of 1964 (42 U.S.C. Section
2-16 2790) for federal fiscal year 1981;
2-17 (b) came into existence during
2-18 federal fiscal year 1982 as a direct successor in interest to such
2-19 a community action agency or community action program; or
2-20 (c) is designated as a community
2-21 action agency by the governor in accordance with applicable federal
2-22 law; and
2-23 (ii) that meets all the requirements of 42
2-24 U.S.C. Section 9904(c)(3) with respect to the composition of the
2-25 board; and
2-26 (B) does not include an entity that lost its
2-27 designation as a community action agency or community action
3-1 program under Section 210 of the Economic Opportunity Act of 1964
3-2 (42 U.S.C. Section 2790) as a result of a failure to comply with
3-3 that Act.
3-4 (4) "Department" means the Texas Department of Housing
3-5 and Community Affairs.
3-6 (5) <(4)> "Director" means the executive director of
3-7 the department.
3-8 (6) <(5)> "Economically depressed or blighted area"
3-9 means an area:
3-10 (A) that has been determined by the department
3-11 <housing finance division> to be a qualified census tract or an
3-12 area of chronic economic distress under Section 103A, Internal
3-13 Revenue Code of 1954 (26 U.S.C. Section 103A); or
3-14 (B) established in a municipality that has a
3-15 substantial number of substandard, slum, deteriorated, or
3-16 deteriorating structures and that suffers from a high relative rate
3-17 of unemployment<; or>
3-18 <(C) that has been designed and included in a
3-19 tax increment district created under Chapter 695, Acts of the 66th
3-20 Legislature, Regular Session, 1979 (Article 1066d, Vernon's Texas
3-21 Civil Statutes)>.
3-22 (7) <(6)> "Elderly individual" means an individual 60
3-23 years of age or older.
3-24 <(7) "Family of moderate income" means a family:>
3-25 <(A) that is determined by the board to require
3-26 assistance, taking into account:>
3-27 <(i) the amount of the total income
4-1 available for housing needs of the individuals and families;>
4-2 <(ii) the size of the family;>
4-3 <(iii) the cost and condition of available
4-4 housing facilities;>
4-5 <(iv) the ability of the individuals and
4-6 families to compete successfully in the private housing market and
4-7 to pay the amounts required by private enterprise for sanitary,
4-8 decent, and safe housing; and>
4-9 <(v) standards established for various
4-10 federal programs determining eligibility based on income; and>
4-11 <(B) that does not qualify as a family of low
4-12 income.>
4-13 (8) "Federal government" means the United States of
4-14 America and includes any corporate or other instrumentality of the
4-15 United States of America, including the Resolution Trust
4-16 Corporation.
4-17 (9) "Federal mortgage" means a mortgage loan for
4-18 residential housing:
4-19 (A) that is made by the federal government; or
4-20 (B) for which a commitment to make has been
4-21 given by the federal government.
4-22 (10) "Federally assisted new communities" means
4-23 federally assisted areas that receive or will receive assistance in
4-24 the form of loan guarantees under Title X of the National Housing
4-25 Act (12 U.S.C. Section 1701 et seq.), and a portion of that
4-26 federally assisted area has received grants under Section 107(a)(1)
4-27 of the Housing and Community Development Act of 1974, as amended
5-1 (42 U.S.C. Section 5301 et seq.).
5-2 (11) "Federally insured mortgage" means a mortgage
5-3 loan for residential housing that:
5-4 (A) is insured or guaranteed by the federal
5-5 government; or
5-6 (B) the federal government has committed to
5-7 insure or guarantee.
5-8 (12) "Housing development" means a development that
5-9 may include:
5-10 (A) property or work or a project, building,
5-11 structure, facility, or undertaking, whether existing, new
5-12 construction, remodeling, improvement, or rehabilitation, that
5-13 meets or is designed to meet minimum property standards required by
5-14 the department and that is financed under the provisions of this
5-15 chapter for the primary purpose of providing sanitary, decent, and
5-16 safe dwelling accommodations for rent, lease, use, or purchase by
5-17 individuals and families of low and very low income and families of
5-18 moderate income in need of housing;
5-19 (B) <. The term includes:>
5-20 <(A)> buildings, structures, land, equipment,
5-21 facilities, or other real or personal properties that are
5-22 necessary, convenient, or desirable appurtenances, including
5-23 streets, water, sewers, utilities, parks, site preparation,
5-24 landscaping, stores, offices, and other nonhousing facilities, such
5-25 as administrative, community, and recreational facilities the
5-26 department determines to be necessary, convenient, or desirable
5-27 appurtenances; or <and>
6-1 (C) <(B)> single and multifamily dwellings in
6-2 rural and urban areas.
6-3 (13) "Housing sponsor" means:
6-4 (A) an individual, including an individual or
6-5 family of low and very low income or family of moderate income, a
6-6 local government, a public housing authority, a community action
6-7 agency, a joint venture, partnership, limited partnership, trust,
6-8 firm, corporation, or a cooperative that is approved by the
6-9 department as qualified to own, construct, acquire, rehabilitate,
6-10 operate, manage, or maintain a housing development, subject to the
6-11 regulatory powers of the department and other terms and conditions
6-12 in this chapter; or
6-13 (B) in an economically depressed or blighted
6-14 area, or in a federally assisted new community located within a
6-15 home-rule municipality, the term may include an individual or
6-16 family whose income exceeds the moderate income level if at least
6-17 90 percent of the total mortgage amount available under a mortgage
6-18 revenue bond issue is designated for individuals and families of
6-19 low income or families of moderate income.
6-20 (14) "Individuals and families of low income" means
6-21 individuals and families earning not more than 80 percent of the
6-22 area median income or applicable federal poverty line, as
6-23 determined under either Section 2306.123 or Section 2306.1231.
6-24 (15) "Individuals and families of very low income"
6-25 means individuals and families earning not more than 60 percent of
6-26 the area median income or applicable federal poverty line, as
6-27 determined under either Section 2306.123 or Section 2306.1231.
7-1 (16) "Land development" means:
7-2 (A) acquiring land for residential housing
7-3 construction; and
7-4 (B) making, installing, or constructing
7-5 nonresidential improvements that the department determines are
7-6 necessary or desirable for a housing development to be financed by
7-7 the department, including:
7-8 (i) waterlines and water supply
7-9 installations;
7-10 (ii) sewer lines and sewage disposal
7-11 installations;
7-12 (iii) steam, gas, and electric lines and
7-13 installations; and
7-14 (iv) roads, streets, curbs, gutters, and
7-15 sidewalks, whether on or off the site.
7-16 (17) "Local government" means a county, municipality,
7-17 special district, or any other political subdivision of the state,
7-18 a public, nonprofit housing finance corporation created under
7-19 Chapter 394, Local Government Code, or a combination of those
7-20 entities.
7-21 (18) "Moderate income" means the income level
7-22 specified by the applicable federal program.
7-23 (19) "Mortgage" means an <interest-bearing>
7-24 obligation, including a mortgage, mortgage deed, bond, note, deed
7-25 of trust, or other instrument, that is a lien:
7-26 (A) on real property; or
7-27 (B) on a leasehold under a lease having a
8-1 remaining term that, at the time the lien is acquired, does not
8-2 expire until after the maturity date of the <interest-bearing>
8-3 obligation secured by the lien.
8-4 (20) <(19)> "Mortgage lender" means a bank, trust
8-5 company, savings bank, mortgage company, mortgage banker, credit
8-6 union, national banking association, savings and loan association,
8-7 life insurance company, or other financial institution authorized
8-8 to transact business in this state and approved as a mortgage
8-9 lender by the department or a local government, public housing
8-10 authority, or nonprofit corporation.
8-11 (21) <(20)> "Mortgage loan" means an
8-12 <interest-bearing> obligation secured by a mortgage.
8-13 (22) <(21)> "Municipality" includes only a
8-14 municipality in this state.
8-15 (23) <(22)> "Public agency" means an agency, board,
8-16 authority, department, commission, political subdivision, municipal
8-17 corporation, district, public corporation, body politic, or
8-18 instrumentality of this state, including a county, municipality,
8-19 housing authority, state-supported institution of higher education,
8-20 school district, junior college, other district or authority, or
8-21 other type of governmental entity of this state.
8-22 (24) <(23)> "Real estate owned contractor" means a
8-23 person required to meet the obligations of a contract with the
8-24 department <housing finance division> for managing and marketing
8-25 foreclosed property.
8-26 (25) <(24)> "Real property" means land, including
8-27 improvements and fixtures on the land, property of any nature
9-1 appurtenant to the land or used in connection with the land, and a
9-2 legal or equitable estate, interest, or right in land, including
9-3 leasehold interests, terms for years, and a judgment, mortgage, or
9-4 other lien.
9-5 (26) <(25)> "Reserve fund" means the <housing finance
9-6 division's> reserve fund of the department's bond-financed
9-7 activities.
9-8 (27) <(26)> "Residential housing" means a specific
9-9 work or improvement undertaken primarily to provide dwelling
9-10 accommodations, including the acquisition, construction,
9-11 reconstruction, remodeling, improvement, or rehabilitation of land
9-12 and buildings and improvements to the buildings for residential
9-13 housing and other incidental or appurtenant nonhousing facilities.
9-14 (28) <(27)> "Servicer" means a person required to meet
9-15 contractual obligations with the department <housing finance
9-16 division> or with a mortgage lender relating to a loan financed
9-17 under Section 2306.221 et seq. <Subchapter J>, including:
9-18 (A) purchasing mortgage certificates backed by
9-19 mortgage loans;
9-20 (B) collecting principal and interest from the
9-21 borrower;
9-22 (C) sending principal and interest payments to
9-23 the department <division>;
9-24 (D) preparing periodic reports;
9-25 (E) notifying the primary mortgage and pool
9-26 insurers of delinquent and foreclosed loans; and
9-27 (F) filing insurance claims on foreclosed
10-1 property.
10-2 SECTION 3. Subsection (b), Section 2306.021, Government
10-3 Code, is amended to read as follows:
10-4 (b) The department is composed of:
10-5 (1) the community affairs division;
10-6 (2) the housing finance division; <and>
10-7 (3) the community development division; and
10-8 (4) any other division created by the director.
10-9 SECTION 4. Section 2306.023, Government Code, is amended to
10-10 read as follows:
10-11 Sec. 2306.023. PERSONAL LIABILITY OF BOARD MEMBER OR
10-12 DIRECTOR <SEPARATION OF DIVISIONS>. A member of the board or the
10-13 director is not liable personally for bonds issued or contracts
10-14 executed by <The duties of the housing finance division shall be
10-15 kept separate from the duties of the community affairs division and
10-16 each other division established in> the department or for any other
10-17 action taken in accordance with the powers and duties authorized by
10-18 this chapter.
10-19 SECTION 5. Section 2306.030, Government Code, is amended by
10-20 adding Subsection (e) to read as follows:
10-21 (e) If neither the presiding officer or assistant presiding
10-22 officer is present or capable of performing the duties of presiding
10-23 officer, a majority of the members present may elect another member
10-24 of the board to perform the duties of presiding officer.
10-25 SECTION 6. Section 2306.032, Government Code, is amended to
10-26 read as follows:
10-27 Sec. 2306.032. BOARD MEETINGS. (a) <The board shall meet
11-1 at least three times annually at the call of the presiding officer
11-2 and other times the board determines are necessary. The time and
11-3 place of the other meetings are to be fixed by a majority vote of
11-4 the board.>
11-5 <(b)> The board may hold <special> meetings when called by
11-6 the presiding officer, the director, or three of the members.
11-7 (b) <(c)> The board shall keep complete minutes of board
11-8 meetings. The accounts, minutes, and other records shall be kept
11-9 at the principal office of the department.
11-10 (c) The board is subject to the open meetings law, Chapter
11-11 551, except that the board is not required to conduct an open
11-12 meeting to discuss proprietary financial matters of a private
11-13 applicant, borrower, or other recipient of funds.
11-14 SECTION 7. Subchapter C, Chapter 2306, Government Code, is
11-15 amended by amending Section 2306.051 and by adding Section
11-16 2306.0515 to read as follows:
11-17 Sec. 2306.051. BOARD DUTIES. (a) The board shall:
11-18 (1) adopt policies and procedures governing the
11-19 administration of the department's programs;
11-20 (2) approve program procedures to govern housing loans
11-21 made by the department under this chapter;
11-22 (3) adopt a target strategy for the percentage of
11-23 mortgage revenue bond proceeds to be made available to individuals
11-24 and families of low and very low income and families of moderate
11-25 income;
11-26 (4) establish eligibility criteria for participation
11-27 in the department's programs for individuals and families of low
12-1 and very low income and families of moderate income; and
12-2 (5) approve the annual low income housing plan.
12-3 (b) All bonds issued by the department must be authorized by
12-4 the board.
12-5 (c) By action of the board, each division shall have a goal
12-6 to apply a minimum of 30 percent of the division's housing-related
12-7 funds toward housing assistance for individuals and families of
12-8 very low income <consult with and advise the director on the
12-9 affairs and problems of local government and the work of the
12-10 department>.
12-11 Sec. 2306.0515. FEES; PENALTIES. (a) The board shall
12-12 establish a schedule of fees and penalties relating to the
12-13 operation of the department's programs, including fees for:
12-14 (1) applications, processing, loan commitments,
12-15 origination, servicing, insurance premiums, mortgage premiums,
12-16 housing developments, facilities and other services, compliance
12-17 costs, and other administrative costs;
12-18 (2) the cost of regulating housing sponsors, including
12-19 the cost of:
12-20 (A) examination;
12-21 (B) inspection;
12-22 (C) supervision; and
12-23 (D) auditing; and
12-24 (3) reimbursement of the department's financing costs.
12-25 (b) The department may assess and collect the fees described
12-26 by this section and use the funds received for the purposes
12-27 specified by this chapter.
13-1 SECTION 8. Subsection (b), Section 2306.052, Government
13-2 Code, is amended to read as follows:
13-3 (b) The director shall:
13-4 (1) administer and organize the work of the department
13-5 consistent with this chapter and with sound organizational
13-6 management that promotes efficient and effective operation;
13-7 (2) appoint and remove <officers and other> personnel
13-8 employed by the department<, subject to the annual budget and any
13-9 resolution authorizing the issuance of bonds under this chapter>;
13-10 (3) submit, through and with the approval of the
13-11 governor and the board, requests for appropriations and other money
13-12 to operate the department;
13-13 (4) administer all money entrusted to the department;
13-14 (5) administer all money and investments of the
13-15 department subject to:
13-16 (A) department indentures and contracts;
13-17 (B) Sections 2306.118-2306.120; and
13-18 (C) an action of the board under Section
13-19 2306.351 <make an annual report to the governor and the legislature
13-20 of the department's operations and provide other reports requested
13-21 by the governor or the legislature>; and
13-22 (6) perform other functions that may be assigned by
13-23 the governor.
13-24 SECTION 9. Section 2306.053, Government Code, is amended to
13-25 read as follows:
13-26 Sec. 2306.053. DEPARTMENT POWERS AND DUTIES. (a) The
13-27 department shall<:>
14-1 <(1)> maintain suitable headquarters and other offices
14-2 in this state that the director determines are necessary<; and>
14-3 <(2) furnish the information, equipment, and staff
14-4 necessary to implement the work of the board>.
14-5 (b) The department may:
14-6 (1) <sue and be sued, or plead and be impleaded;>
14-7 <(2)> act for and on behalf of this state;
14-8 (2) <(3)> adopt an official seal or alter it;
14-9 (3) <(4)> adopt and enforce bylaws and rules;
14-10 (4) <(5)> contract with the federal government, state,
14-11 any public agency, mortgage lender, person, or other entity;
14-12 (5) <(6)> designate mortgage lenders to act for the
14-13 department for the origination, processing, and servicing of the
14-14 department's mortgage loans under conditions agreed to by the
14-15 parties;
14-16 (6) <(7)> provide, contract, or arrange for
14-17 consolidated processing of a housing development to avoid
14-18 duplication;
14-19 (7) <(8)> encourage homeless individuals and
14-20 individuals of low or very low income to attend the department's
14-21 educational programs and assist those individuals in attending the
14-22 programs;
14-23 (8) <(9)> appoint and determine the qualifications,
14-24 duties, and tenure of its agents, counselors, and professional
14-25 advisors, including accountants, appraisers, architects, engineers,
14-26 financial consultants, housing construction and financing experts,
14-27 and real estate consultants;
15-1 (9) administer federal or state housing, community
15-2 affairs, or community development programs, including the low
15-3 income housing tax credit program; <and>
15-4 (10) establish eligibility criteria for individuals
15-5 and families of low and very low income and families of moderate
15-6 income to participate in and benefit from programs administered by
15-7 the department;
15-8 (11) adopt underwriting standards for loans made or
15-9 financed by the department;
15-10 (12) adopt minimum property standards for housing
15-11 developments financed or acquired under this chapter;
15-12 (13) compile a list of approved mortgage lenders;
15-13 (14) obtain, retain, and disseminate its records and
15-14 other documents in electronic form; and
15-15 (15) do all things necessary, convenient, or desirable
15-16 to carry out the powers expressly granted or necessarily implied by
15-17 this chapter.
15-18 (c) The department is subject to the open records law,
15-19 Chapter 552, except that the proprietary financial records of a
15-20 private applicant, borrower, or other recipient of funds are not a
15-21 public record.
15-22 SECTION 10. Section 2306.094, Government Code, is amended
15-23 and redesignated as Section 2306.054, Subchapter C, Chapter 2306,
15-24 Government Code, to read as follows:
15-25 Sec. 2306.054 <2306.094>. SPECIAL ADVISORY COUNCILS.
15-26 (a) The governor or director may<, with the advice of the
15-27 director,> appoint special advisory councils to:
16-1 (1) assist the department <board> in adopting basic
16-2 policy <for the community affairs division>; or
16-3 (2) offer advice on technical aspects of certain
16-4 programs <that the community affairs division administers>.
16-5 (b) A special advisory council is dissolved on completion of
16-6 its stated purpose unless continued by the governor or director.
16-7 SECTION 11. Section 2306.095, Government Code, is amended
16-8 and redesignated as Section 2306.055, Subchapter C, Chapter 2306,
16-9 Government Code, to read as follows:
16-10 Sec. 2306.055 <2306.095>. TRANSFERS FROM GOVERNOR. The
16-11 governor may transfer to any <the community affairs> division
16-12 personnel, equipment, records, obligations, appropriations,
16-13 functions, and duties of appropriate divisions of the governor's
16-14 office.
16-15 SECTION 12. Subchapter C, Chapter 2306, Government Code, is
16-16 amended by adding Section 2306.056 to read as follows:
16-17 Sec. 2306.056. COMMITTEES. (a) The presiding officer may
16-18 appoint a committee composed of board members to carry out the
16-19 board's duties.
16-20 (b) The board may consider a recommendation of a committee
16-21 in making a decision under this chapter.
16-22 (c) A committee established under this section is subject to
16-23 Chapters 551 and 552.
16-24 SECTION 13. Subchapter C, Chapter 2306, Government Code, is
16-25 amended by adding Sections 2306.057 and 2306.058 to read as
16-26 follows:
16-27 Sec. 2306.057. GENERAL DUTIES OF DEPARTMENT. The department
17-1 shall:
17-2 (1) develop policies and programs designed to increase
17-3 the number of individuals and families of low and very low income
17-4 and families of moderate income that participate in its programs;
17-5 (2) work with local governments, public agencies,
17-6 housing sponsors, and nonprofit corporations to provide:
17-7 (A) information on department programs; and
17-8 (B) technical assistance to local governments,
17-9 public agencies, and nonprofit corporations;
17-10 (3) encourage private and nonprofit corporations and
17-11 state organizations to match the department's funds to assist in
17-12 providing affordable housing to individuals and families of low and
17-13 very low income and families of moderate income;
17-14 (4) provide matching funds, as available, to local
17-15 governments, public agencies, housing sponsors, and nonprofit
17-16 developers who qualify under the department's programs;
17-17 (5) administer the state's allocation of federal funds
17-18 provided under:
17-19 (A) the rental rehabilitation grant program
17-20 authorized by Section 17, Title I, United States Housing Act of
17-21 1937 (42 U.S.C. Section 1437o);
17-22 (B) the Cranston-Gonzalez National Affordable
17-23 Housing Act (42 U.S.C. Section 12704 et seq.); and
17-24 (C) any other federally established affordable
17-25 housing program; and
17-26 (6) administer the state's allocation of federal tax
17-27 credits provided under the low-income housing tax credit program,
18-1 under the requirements prescribed by Section 42, Internal Revenue
18-2 Code of 1986 (26 U.S.C. Section 42), and this chapter, including:
18-3 (A) adopting a qualified allocation plan for
18-4 each year not later than September 30 of the preceding year;
18-5 (B) adopting all rules governing an application
18-6 cycle or application cycles, including selection criteria, for any
18-7 given year not later than October 31 of the preceding year; and
18-8 (C) requiring that applications for a given
18-9 year's tax credits be received not later than February 1 of that
18-10 year, and awarding the credits not later than April 15 of that
18-11 year.
18-12 Sec. 2306.058. PAYMENT OF DEPARTMENT OBLIGATIONS AND
18-13 EXPENSES. The department shall use available sources of revenue,
18-14 income, and receipts to:
18-15 (1) pay all expenses of the department's operation and
18-16 maintenance;
18-17 (2) pay the principal and interest on department
18-18 bonds; and
18-19 (3) create and maintain the reserves or funds provided
18-20 by each resolution authorizing the issuance of department bonds.
18-21 SECTION 14. Section 2306.065, Government Code, is amended to
18-22 read as follows:
18-23 Sec. 2306.065. DISCRIMINATION PROHIBITED. An individual may
18-24 not, because of that individual's race, color, national origin,
18-25 age, religion, disability, or sex, be excluded from participation,
18-26 be denied benefits, or be subjected to discrimination in any
18-27 program or activity funded in whole or in part with funds made
19-1 available under this chapter.
19-2 SECTION 15. Subsection (a), Section 2306.067, Government
19-3 Code, is amended to read as follows:
19-4 (a) The director may enter into <reciprocal> agreements with
19-5 a state agency or instrumentality or local government to loan or
19-6 assign department employees to that entity.
19-7 SECTION 16. Section 2306.069, Government Code, is amended to
19-8 read as follows:
19-9 Sec. 2306.069. <OUTSIDE> LEGAL COUNSEL. (a) The department
19-10 shall obtain and evaluate information regarding the affirmative
19-11 action policies and practices of proposed outside legal counsel.
19-12 The department must include the evaluation in a request to the
19-13 attorney general for outside legal counsel.
19-14 (b) The department may hire in-house legal counsel. The
19-15 director shall prescribe the duties of the legal counsel.
19-16 SECTION 17. Section 2306.070, Government Code, is amended to
19-17 read as follows:
19-18 Sec. 2306.070. LEGISLATIVE APPROPRIATIONS REQUEST <BUDGET>.
19-19 In preparing the department's legislative appropriations request,
19-20 the department shall include, for informational purposes, the
19-21 operating funds for the department's bond-financed activities <also
19-22 prepare an operating budget for the housing finance division. The
19-23 department shall submit the operating budget to the Legislative
19-24 Budget Board, the Senate Finance Committee, and the House
19-25 Appropriations Committee>.
19-26 SECTION 18. Subchapter D, Chapter 2306, Government Code, is
19-27 amended by adding Section 2306.0705 to read as follows:
20-1 Sec. 2306.0705. GENERAL APPROPRIATIONS ACT. (a) Except as
20-2 specifically provided by this chapter, the department is subject to
20-3 the General Appropriations Act.
20-4 (b) The proceeds from bonds issued by the department and
20-5 enterprise funds are not subject to the General Appropriations Act.
20-6 (c) In this section, "enterprise funds" means funds used to
20-7 account for housing-related operations that are financed and
20-8 operated in a manner similar to a private business enterprise and
20-9 in which the costs of providing services on a continuing basis are
20-10 financed or recovered primarily through user charges.
20-11 SECTION 19. Section 2306.071, Government Code, is amended to
20-12 read as follows:
20-13 Sec. 2306.071. FUNDS; LOCAL DEPOSITORY FUND. (a) The
20-14 department may request, contract for, receive, and spend for its
20-15 purposes an appropriation, grant, loan, allocation, subsidy, rent
20-16 supplement, guarantee, aid, contribution, gift, service, labor, or
20-17 material from this state, the federal government, or another public
20-18 or private source.
20-19 (b) The funds and revenues of the department's bond-financed
20-20 activities <housing finance division> shall be kept separate from
20-21 the department's other funds and revenues <of the other divisions>,
20-22 and the department <other divisions> may <not> use funds and
20-23 revenues of the department's bond-financed activities only to
20-24 administer housing-related programs <housing finance division for
20-25 any purpose>.
20-26 (c) Except for legislative appropriations, funds necessary
20-27 for the operation of the department's bond-financed activities, and
21-1 trustee-held funds of the department under a multifamily bond
21-2 indenture <which shall be kept in the state treasury>, all funds
21-3 and revenue of the department's bond-financed activities received
21-4 by the department <housing finance division> are to be kept outside
21-5 the state treasury.
21-6 (d) Legislative appropriations shall be kept in the state
21-7 treasury. Trustee-held funds of the department under a multifamily
21-8 bond indenture are held by the trustee as provided by the
21-9 indenture. Operating funds for bond-financed activities shall be
21-10 kept in the Texas housing local depository fund created under
21-11 Subsection (e). The operating funds may be transmitted to payee
21-12 accounts in financial institutions by electronic means or for
21-13 processing of state warrants. Unexpended operating funds shall be
21-14 reimbursed to the Texas housing local depository fund at the end of
21-15 each fiscal year.
21-16 (e) The Texas housing local depository fund is created as a
21-17 special fund in the state treasury. Interest earned on the fund
21-18 shall be credited to and retained by the fund for the benefit of
21-19 the fund. The fund is not subject to Section 403.094 or 403.095.
21-20 (f) All other revenue and funds of the department received
21-21 or payable through the bond-related programs and functions of the
21-22 department shall be deposited outside the state treasury with
21-23 either the Texas Treasury Safekeeping Trust Company or with any
21-24 other depository selected by the department in accordance with
21-25 Section 2306.119.
21-26 SECTION 20. Subchapter D, Government Code, is amended by
21-27 adding Sections 2306.0721, 2306.0722, and 2306.0723 to read as
22-1 follows:
22-2 Sec. 2306.0721. LOW INCOME HOUSING PLAN. (a) Not later
22-3 than April 1 of each year, the director shall prepare and submit to
22-4 the board an integrated state low income housing plan for the next
22-5 year.
22-6 (b) Not later than the 30th day after the date the board
22-7 receives the plan, the board shall submit the plan to the governor
22-8 and legislature.
22-9 (c) The plan shall serve as the basis for the development of
22-10 any housing strategy to be implemented by the department and must
22-11 include:
22-12 (1) an estimate and analysis of the housing needs of
22-13 the following populations in the state:
22-14 (A) individuals and families of low and very low
22-15 income and families of moderate income;
22-16 (B) individuals and families with special needs;
22-17 (C) homeless individuals and families;
22-18 (D) individuals with disabilities;
22-19 (E) migrant farm workers;
22-20 (F) elderly individuals; and
22-21 (G) individuals living in colonias;
22-22 (2) a proposal to track all available housing
22-23 resources to address the housing needs of the populations described
22-24 by Subdivision (1) by reporting funding levels for all
22-25 housing-related programs;
22-26 (3) an estimate of the number of federally assisted
22-27 housing units available for individuals and families of low and
23-1 very low income and individuals with special needs in each uniform
23-2 state service region in the state;
23-3 (4) a description of state programs that govern the
23-4 use of all available housing resources;
23-5 (5) a resource allocation plan that targets all
23-6 available housing resources to individuals and families of low and
23-7 very low income, families of moderate income, individuals and
23-8 families with special needs, and homeless individuals and families;
23-9 (6) a description of the unused or underused federal
23-10 resources of other state agencies for housing-related services and
23-11 services for homeless individuals and the department's
23-12 recommendations to ensure the full use by the state of all
23-13 available federal resources for those services;
23-14 (7) strategies to provide housing for individuals and
23-15 families with special needs and homeless individuals and families;
23-16 (8) a comprehensive statement of the activities of the
23-17 department during the preceding fiscal year to address the needs
23-18 identified in the plan, including:
23-19 (A) a statistical and narrative analysis of the
23-20 department's performance in addressing the housing needs of
23-21 individuals and families of low and very low income and families of
23-22 moderate income;
23-23 (B) the ethnic or racial composition of
23-24 individuals and families applying for and receiving assistance from
23-25 each housing program administered by the department; and
23-26 (C) the department's progress in meeting the
23-27 goals established in the previous housing plan;
24-1 (9) an explanation of the efforts made by the
24-2 department to ensure the participation of individuals of low income
24-3 and their community-based institutions in department programs that
24-4 affect them;
24-5 (10) an explanation of the efforts that the department
24-6 has made to ensure that individuals of low income and their
24-7 community-based institutions are involved in the allocation of
24-8 funds and the planning process;
24-9 (11) a statistical analysis, delineated according to
24-10 each ethnic and racial group served by the department, that
24-11 indicates the progress made by the department in implementing the
24-12 state low income housing plan in each of the uniform state service
24-13 regions;
24-14 (12) a statistical analysis of each housing
24-15 development that receives financial assistance from the department
24-16 that includes the following information for each housing
24-17 development that contains 20 or more living units:
24-18 (A) the street address and municipality or
24-19 county in which the property is located;
24-20 (B) the total number of units reported by
24-21 bedroom size;
24-22 (C) the total number of units designed for
24-23 individuals who are physically disabled or who have special needs
24-24 and the number of these individuals served annually as reported by
24-25 each housing sponsor;
24-26 (D) average rents reported by region, as defined
24-27 in the comprehensive housing affordability strategy;
25-1 (E) the race or ethnic makeup of each project as
25-2 reported annually by each housing sponsor;
25-3 (F) the number of units occupied by individuals
25-4 receiving government-supported housing assistance as reported by
25-5 each housing sponsor;
25-6 (G) a statement as to whether the department has
25-7 been notified of a violation of the fair housing law that has been
25-8 filed with the United States Department of Housing and Urban
25-9 Development, the Commission on Human Rights, or the United States
25-10 Department of Justice;
25-11 (H) a statement as to whether the development
25-12 has any instances of material noncompliance with bond indentures or
25-13 financing agreements discovered through the normal monitoring
25-14 activities and procedures that include meeting occupancy
25-15 requirements or rent restrictions imposed by financing agreements;
25-16 and
25-17 (I) a statement as to whether the housing
25-18 development owner has an affirmative marketing program in place
25-19 that is effective in promoting fair housing;
25-20 (13) a description of the activities of the department
25-21 to increase the capacity of nonprofit organizations in this state
25-22 to provide housing; and
25-23 (14) a description of the activities of the department
25-24 to ensure that housing developments funded by the department
25-25 affirmatively further fair housing.
25-26 Sec. 2306.0722. PREPARATION OF PLAN. In preparing the state
25-27 low income housing plan under Section 2306.0721, the director
26-1 shall:
26-2 (1) coordinate the department's housing resources,
26-3 including tax exempt housing bond financing and low income housing
26-4 tax credits;
26-5 (2) in allocating the department's available housing
26-6 resources, give priority to helping the neediest individuals;
26-7 (3) ensure that the department's housing programs
26-8 benefit an individual without regard to the individual's race,
26-9 ethnicity, sex, or national origin;
26-10 (4) develop housing opportunities for individuals and
26-11 families of low and very low income, families of moderate income,
26-12 and individuals with special housing needs;
26-13 (5) develop housing programs through an open, fair,
26-14 and public process;
26-15 (6) set priorities for assistance in a manner that is
26-16 appropriate and consistent with the housing needs of the
26-17 populations described by Section 2306.0721(c)(1); and
26-18 (7) incorporate recommendations that are consistent
26-19 with the comprehensive housing affordability strategy, or its
26-20 successor, submitted annually by the state to the United States
26-21 Department of Housing and Urban Development.
26-22 Sec. 2306.0723. PUBLIC HEARINGS. (a) The department shall
26-23 hold a public hearing on the state low income housing plan before
26-24 the director submits the plan to the board.
26-25 (b) The board shall hold a public hearing on the state low
26-26 income housing plan before the board submits the plan to the
26-27 governor and legislature.
27-1 (c) The board shall include with the plan the board submits
27-2 to the governor and legislature a written report of public comments
27-3 on the plan.
27-4 SECTION 21. Subsection (a), Section 2306.073, Government
27-5 Code, is amended to read as follows:
27-6 (a) The director, with the approval of the board, shall
27-7 appoint an internal auditor who reports directly to the board and
27-8 serves at the pleasure of the board <on matters concerning housing
27-9 finance, the community affairs division, or any other division>.
27-10 SECTION 22. Section 2306.074, Government Code, is amended by
27-11 amending Subsection (a) and by adding Subsection (c) to read as
27-12 follows:
27-13 (a) The state auditor or a certified public accountant shall
27-14 audit the department's books and accounts each fiscal year and file
27-15 a copy of the audit with the governor and the legislature on or
27-16 before March <January> 1 of each year. If the state auditor is
27-17 conducting the audit and it is not available by March <January> 1,
27-18 it must be filed as soon as it is available.
27-19 (c) An independent auditor annually shall conduct an audit
27-20 of the department's bond-related activities to determine the amount
27-21 of unencumbered fund balances that is greater than the amount
27-22 required for the reserve fund. The independent auditor shall
27-23 submit the report to the board not later than December 31 of each
27-24 year.
27-25 SECTION 23. Section 2306.075, Government Code, is amended to
27-26 read as follows:
27-27 Sec. 2306.075. TAX EXEMPTION; OTHER PAYMENTS. (a) The
28-1 property of the department, its income, and its operations are
28-2 exempt from all taxes and assessments imposed by this state and all
28-3 public agencies on property acquired or used by the department
28-4 under this chapter.
28-5 (b) The department may, under its terms, conditions, and
28-6 procedures, pay public agencies in lieu of ad valorem taxes on
28-7 property that the department acquires through foreclosure or sale
28-8 under a deed of trust.
28-9 (c) The department shall make payments under this section
28-10 instead of paying taxes whenever practicable with money lawfully
28-11 available for this purpose, subject to the provisions of any bond
28-12 resolution.
28-13 SECTION 24. Subchapter D, Chapter 2306, Government Code, is
28-14 amended by adding Sections 2306.076 through 2306.089 to read as
28-15 follows:
28-16 Sec. 2306.076. INSURANCE. (a) The board may purchase from
28-17 department funds liability insurance for the director and employees
28-18 and board members and officers.
28-19 (b) The board may purchase the insurance in an amount the
28-20 board considers reasonably necessary to:
28-21 (1) insure against reasonably foreseeable liabilities;
28-22 and
28-23 (2) provide for all costs of defending against those
28-24 liabilities, including court costs and attorney's fees.
28-25 (c) The department may obtain insurance coverage of any
28-26 kind, and pay premiums for that coverage, in amounts and from
28-27 insurers as the department considers necessary or advisable.
29-1 Sec. 2306.077. ACQUISITION AND USE OF MONEY; DEPOSITORIES.
29-2 The department may:
29-3 (1) acquire, hold, invest, deposit, use, and spend its
29-4 income and revenue, from whatever source; and
29-5 (2) select its depository or depositories, subject
29-6 only to the provisions of:
29-7 (A) this chapter; and
29-8 (B) a covenant relating to the department's
29-9 bonds.
29-10 Sec. 2306.078. INVESTMENTS. Subject to a resolution
29-11 authorizing issuance of department bonds, the department may:
29-12 (1) invest department money in bonds, obligations,
29-13 uncollateralized guaranteed investment agreements, or other
29-14 securities; or
29-15 (2) place department money in demand or time deposits,
29-16 whether or not evidenced by certificates of deposit.
29-17 Sec. 2306.079. HEARINGS. The department may:
29-18 (1) conduct hearings; and
29-19 (2) take testimony and proof, under oath, at public
29-20 hearings, on matters necessary to carry out the department's
29-21 purposes.
29-22 Sec. 2306.080. INVESTIGATIONS. The department may:
29-23 (1) investigate housing conditions and the means for
29-24 improving those conditions; and
29-25 (2) determine the location of slum or blighted areas.
29-26 Sec. 2306.081. ENCOURAGING HOME OWNERSHIP. The department
29-27 may encourage individual or cooperative home ownership among
30-1 individuals and families of low and very low income and families of
30-2 moderate income.
30-3 Sec. 2306.082. TARGETING BOND PROCEEDS. The department may
30-4 target the proceeds from housing bonds issued by the department to:
30-5 (1) a geographic area or areas of the state;
30-6 (2) areas of special need; or
30-7 (3) subgroups of this state's population according to
30-8 income.
30-9 Sec. 2306.083. LOANS TO LENDERS. The department may make
30-10 loans to mortgage lenders, public agencies, or other housing
30-11 sponsors and use the proceeds to make loans for multifamily housing
30-12 developments to be substantially occupied by individuals and
30-13 families of low and very low income or families of moderate income.
30-14 Sec. 2306.084. NEEDS OF QUALIFYING INDIVIDUALS AND FAMILIES
30-15 IN RURAL AREAS AND SMALL MUNICIPALITIES. The department may adopt
30-16 a target strategy to ensure that the credit and housing needs of
30-17 qualifying individuals and families who reside in rural areas and
30-18 small municipalities are equitably served by the department.
30-19 Sec. 2306.085. ACQUISITION AND DISPOSITION OF REAL ESTATE
30-20 OWNED PROPERTY. In performing duties and exercising powers under
30-21 this chapter, the department may:
30-22 (1) acquire, own, rent, lease, accept, hold, or
30-23 dispose of any real, personal, or mixed property, or any interest
30-24 in property, including a right or easement, by purchase, exchange,
30-25 gift, assignment, transfer, foreclosure, sale, lease, or otherwise;
30-26 (2) hold, manage, operate, or improve real, personal,
30-27 or mixed property; or
31-1 (3) lease or rent land or a dwelling, house,
31-2 accommodation, building, structure, or facility from a private
31-3 entity.
31-4 Sec. 2306.086. TRANSFER AND DISPOSITION OF PROPERTY; MANNER
31-5 OF SALE. (a) The department may:
31-6 (1) sell, assign, lease, encumber, mortgage, or
31-7 otherwise dispose of real, personal, or mixed property, an interest
31-8 in property, or a deed of trust or mortgage lien interest owned by
31-9 the department or under its control, custody, or possession; and
31-10 (2) release or relinquish a right, title, claim, lien,
31-11 interest, easement, or demand acquired in any manner, including an
31-12 equity or right of redemption in property foreclosed by the
31-13 department.
31-14 (b) Notwithstanding any other law, the department may
31-15 conduct a public or private sale, with or without public bidding,
31-16 to implement its powers under this section.
31-17 Sec. 2306.087. POLICIES REGARDING HOUSING DEVELOPMENTS. The
31-18 department may adopt and publish policies and procedures regarding:
31-19 (1) the making of mortgage loans under this chapter;
31-20 (2) the regulation of borrowers;
31-21 (3) the construction of ancillary commercial
31-22 facilities; and
31-23 (4) resale and disposition of real property, or an
31-24 interest in the property, that is financed by the department.
31-25 Sec. 2306.088. COURT ACTIONS. (a) The department may
31-26 institute a court action under this chapter against a housing
31-27 sponsor who receives assistance or owns a housing development to:
32-1 (1) enforce this chapter;
32-2 (2) enforce the terms and provisions of an agreement
32-3 or contract between the department and the recipient of assistance
32-4 under this chapter, including provisions regarding rental or
32-5 carrying charges and income limits as applied to tenants or
32-6 occupants;
32-7 (3) foreclose its mortgage; or
32-8 (4) protect:
32-9 (A) the public interest;
32-10 (B) individuals and families of low and very low
32-11 income or families of moderate income;
32-12 (C) stockholders; or
32-13 (D) creditors of the housing sponsor.
32-14 (b) In a proceeding under this section, the department may
32-15 apply for the appointment of a trustee or receiver to assume the
32-16 management and operation of the affairs of a housing sponsor.
32-17 (c) The department, through its designated agent, may accept
32-18 appointment as trustee or receiver of a housing sponsor when
32-19 appointed by a court of competent jurisdiction.
32-20 Sec. 2306.089. INTEREST RATES. (a) The department shall
32-21 set the interest rates at which the department makes loans and loan
32-22 commitments.
32-23 (b) The interest rates shall be set to produce, when
32-24 combined with other available funds, at least the amounts required
32-25 to pay for the costs of operation of the department's bond-financed
32-26 activities and to meet its covenants with and responsibilities to
32-27 the holders of its bonds.
33-1 SECTION 25. The heading of Subchapter E, Chapter 2306,
33-2 Government Code, is amended to read as follows:
33-3 SUBCHAPTER E. COMMUNITY AFFAIRS AND COMMUNITY
33-4 DEVELOPMENT PROGRAMS <DIVISION>
33-5 SECTION 26. Section 2306.092, Government Code, is amended to
33-6 read as follows:
33-7 Sec. 2306.092. DUTIES. The department, through the
33-8 community affairs division or any other division, shall:
33-9 (1) maintain communication with local governments and
33-10 act as an advocate for local governments at the state and federal
33-11 levels;
33-12 (2) assist local governments with advisory and
33-13 technical services;
33-14 (3) provide financial aid to local governments and
33-15 combinations of local governments for programs that are authorized
33-16 to receive assistance;
33-17 (4) provide information about and referrals for state
33-18 and federal programs and services that affect local governments;
33-19 (5) administer, conduct, or jointly sponsor
33-20 educational and training programs for local government officials;
33-21 (6) conduct research on problems of general concern to
33-22 local governments;
33-23 (7) collect, publish, and distribute information
33-24 useful to local governments, including information on:
33-25 (A) local government finances and employment;
33-26 (B) housing;
33-27 (C) population characteristics; and
34-1 (D) land-use patterns;
34-2 (8) encourage cooperation among local governments as
34-3 appropriate;
34-4 (9) advise and inform the governor and the legislature
34-5 about the affairs of local governments and recommend necessary
34-6 action;
34-7 (10) assist the governor in coordinating federal and
34-8 state activities affecting local governments;
34-9 (11) administer, as appropriate:
34-10 (A) state responsibilities for programs created
34-11 under the federal Economic Opportunity Act of 1964 (42 U.S.C.
34-12 Section 2701 et seq.);
34-13 (B) programs assigned to the department under
34-14 the Omnibus Budget Reconciliation Act of 1981 (Pub.L. No. 97-35);
34-15 and
34-16 (C) other federal acts creating economic
34-17 opportunity programs assigned to the department;
34-18 (12) adopt rules that are necessary and proper to
34-19 carry out programs and responsibilities assigned by the legislature
34-20 or the governor; and
34-21 (13) perform other duties relating to local government
34-22 that are assigned by the legislature or the governor.
34-23 SECTION 27. Section 2306.096, Government Code, is amended to
34-24 read as follows:
34-25 Sec. 2306.096. SERVICES FOR HOMELESS <MULTIPURPOSE HUMAN
34-26 RESOURCE CENTERS>. The department shall administer the state's
34-27 allocation of federal funds provided under the Emergency Shelter
35-1 Grants Program (42 U.S.C. Section 11371 et seq.) or its successor
35-2 program, and any other federal funds provided for the benefit of
35-3 homeless individuals and families. <(a) To provide the most
35-4 effective and efficient delivery of human resource services to
35-5 individuals and families of low income, as well as the total
35-6 population, the department, through the community affairs division,
35-7 may establish multipurpose human resource centers in various
35-8 communities.>
35-9 <(b) The department, through the community affairs division,
35-10 may:>
35-11 <(1) locate and lease with state funds suitable office
35-12 space at the community level that is easily accessible to clients
35-13 of human resource service delivery agencies; and>
35-14 <(2) make the space available to those agencies.>
35-15 <(c) A state or local government agency or a private,
35-16 nonprofit human resource agency that has filed with the state a
35-17 state or regional plan for delivery of human resource services is
35-18 eligible to place staff in a community multipurpose human resource
35-19 service center.>
35-20 <(d) The department shall report annually to the governor
35-21 and the legislature the agencies that are and are not placing human
35-22 resource delivery staff in available community multipurpose human
35-23 resource service centers.>
35-24 <(e) The Community Multipurpose Human Resource Service
35-25 Center Fund is in the state treasury. The fund shall be used to
35-26 provide:>
35-27 <(1) the state's share of the rental costs for
36-1 community multipurpose human resource service centers; and>
36-2 <(2) the administrative costs of the centers'
36-3 operation.>
36-4 SECTION 28. Section 2306.097, Government Code, is amended to
36-5 read as follows:
36-6 Sec. 2306.097. ENERGY SERVICES PROGRAM FOR LOW-INCOME
36-7 INDIVIDUALS. (a) <The Energy Services Program for Low-Income
36-8 Individuals is in the community affairs division.>
36-9 <(b)> The program shall operate in conjunction with the
36-10 community services <service> block grant program and has
36-11 jurisdiction and responsibility for administration of the following
36-12 elements of the State Low-Income Energy Assistance Program, from
36-13 whatever sources funded:
36-14 (1) the Energy Crisis Intervention Program; <and>
36-15 (2) the weatherization program; and
36-16 (3) the Low-Income Home Energy Assistance Program.
36-17 (b) The energy services program for low-income individuals
36-18 may facilitate the development and implementation of partnerships,
36-19 agreements, or other arrangements with energy providers,
36-20 nongovernmental sector interests, and regulatory entities under
36-21 which nonfederal financial assistance may be made available to
36-22 support energy-related services for low-income energy consumers.
36-23 SECTION 29. Subsection (a), Section 2306.098, Government
36-24 Code, is amended to read as follows:
36-25 (a) The department<, through the community affairs
36-26 division,> shall, under the Omnibus Budget Reconciliation Act of
36-27 1981 (Pub.L. No. 97-35) and 24 CFR, Part 570, Subpart I, administer
37-1 the state's allocation of federal funds provided under the
37-2 community development block grant nonentitlement program authorized
37-3 by Title I of the Housing and Community Development Act of 1974 (42
37-4 U.S.C. Section 5301 et seq.).
37-5 SECTION 30. Section 2306.099, Government Code, is amended to
37-6 read as follows:
37-7 Sec. 2306.099. ECONOMIC DEVELOPMENT ACTIVITIES <TRANSFER OF
37-8 FEDERAL FUNDS>. (a) The department may enter into an interagency
37-9 agreement with the Texas Department of Commerce to reimburse the
37-10 Texas Department of Commerce for providing on behalf of the
37-11 department marketing, underwriting, and other services from the
37-12 portion of the federal funds allocated by the department for
37-13 economic development activities.
37-14 (b) The department shall allocate <transfer> not more than
37-15 20 percent of the federal community development block grant funds
37-16 received by the department <to the Texas Department of Commerce to
37-17 be used> for economic development activities.
37-18 (c) The activities by <(b) Federal funds transferred under
37-19 this section include the amount of federal funds designated for
37-20 administrative expenses under federal law.>
37-21 <(c) Income received from economic development programs of
37-22 the Texas Department of Commerce remain with that agency.>
37-23 <(d) Use of funds transferred under this section must be
37-24 approved by the department.>
37-25 <(e) A rule of> the Texas Department of Commerce <relating
37-26 to funds transferred> under this section must be approved by the
37-27 department.
38-1 <(f) The Texas Department of Commerce shall return to the
38-2 department under an interagency agreement federal funds transferred
38-3 under this section that are not used in a timely manner under
38-4 federal guidelines.>
38-5 SECTION 31. The heading of Subchapter F, Chapter 2306,
38-6 Government Code, is amended to read as follows:
38-7 SUBCHAPTER F. BUDGET; FUNDS <HOUSING FINANCE DIVISION:
38-8 GENERAL PROVISIONS>
38-9 SECTION 32. Subsections (a) and (b), Section 2306.112,
38-10 Government Code, are amended to read as follows:
38-11 (a) On or before August 1 of each year, the director shall
38-12 file with the board a proposed annual budget for the department
38-13 <housing finance division> for the succeeding fiscal year.
38-14 (b) The budget shall state:
38-15 (1) the general categories of expected expenditures
38-16 from revenues and income of the department <housing finance
38-17 division>;
38-18 (2) the amount of expected expenditures for each
38-19 category;
38-20 (3) expected operating expenses of the department
38-21 <housing finance division>; and
38-22 (4) the proposed use of projected year-end
38-23 unencumbered balances.
38-24 SECTION 33. Section 2306.113, Government Code, is amended to
38-25 read as follows:
38-26 Sec. 2306.113. BOARD CONSIDERATION OF ANNUAL BUDGET. On or
38-27 before September 1 of each year, the board shall consider the
39-1 director's proposed annual budget for the department <housing
39-2 finance division> and shall approve or change the budget as the
39-3 board determines necessary or advisable.
39-4 SECTION 34. Subsection (a), Section 2306.114, Government
39-5 Code, is amended to read as follows:
39-6 (a) Copies of the annual budget certified by the presiding
39-7 officer of the board shall be filed promptly with the governor <and
39-8 the legislature>.
39-9 SECTION 35. Subsection (b), Section 2306.116, Government
39-10 Code, is amended to read as follows:
39-11 (b) An amended annual budget does not supersede a prior
39-12 budget until it is filed with the governor <and the legislature>.
39-13 SECTION 36. Section 2306.117, Government Code, is amended to
39-14 read as follows:
39-15 Sec. 2306.117. PAYMENT OF EXPENSES; INDEBTEDNESS. (a) The
39-16 expenses incurred in carrying out the functions of the department
39-17 relating to bond-financed activities <housing finance division> may
39-18 be paid only from revenues or funds provided under this chapter.
39-19 (b) This chapter does not authorize the department <housing
39-20 finance division> to incur debt or liability on behalf of or
39-21 payable by the state, except as provided by this chapter or other
39-22 law.
39-23 SECTION 37. Subsections (a), (b), (d), and (e), Section
39-24 2306.119, Government Code, are amended to read as follows:
39-25 (a) The department shall choose a depository for the
39-26 <operating> funds described by Section 2306.071(f) <of the housing
39-27 finance division> after inviting bids for favorable interest rates.
40-1 (b) The department <housing finance division> shall publish
40-2 notice in at least one newspaper of general circulation in this
40-3 state no later than the 14th day before the last day set for the
40-4 receipt of the bids.
40-5 (d) Sealed bids must be:
40-6 (1) identified on the envelope as bids; and
40-7 (2) submitted to the department <housing finance
40-8 division> before the deadline for receiving bids.
40-9 (e) The department <housing finance division> shall provide
40-10 a tabulation of all submitted bids for public inspection.
40-11 SECTION 38. Section 2306.120, Government Code, is amended to
40-12 read as follows:
40-13 Sec. 2306.120. SELECTION OF DEPOSITORY UNDER COVENANTS OF
40-14 BONDS OR TRUST INDENTURES. <(a)> If covenants related to the
40-15 department's bonds or the trust indentures governing the bonds
40-16 specify one or more depositories or set out a method of selecting
40-17 depositories different from the method required by this subchapter,
40-18 the covenants prevail regarding the funds to which they apply <and
40-19 the funds are not required to be deposited with the Texas Treasury
40-20 Safekeeping Trust Company>.
40-21 <(b) Bonds of the housing finance division issued under
40-22 trust indentures executed or resolutions adopted on or after
40-23 September 1, 1991, may not include a covenant that interferes with
40-24 the deposit of funds in the Texas Treasury Safekeeping Trust
40-25 Company.>
40-26 SECTION 39. Section 2306.121, Government Code, is amended to
40-27 read as follows:
41-1 Sec. 2306.121. RECORDS. The department <housing finance
41-2 division> shall keep complete records and accounts of its business
41-3 transactions relating to the bond-financed activities of the
41-4 department according to generally accepted accounting principles.
41-5 SECTION 40. Subchapter F, Government Code, is amended by
41-6 adding Section 2306.1231 to read as follows:
41-7 Sec. 2306.1231. FEDERAL POVERTY LINE. The department shall
41-8 use the applicable federal poverty line in determining eligibility
41-9 for each federal or state program administered by the department
41-10 that requires poverty instead of area median income to be used as a
41-11 criterion of program eligibility.
41-12 SECTION 41. The heading to Subchapter I, Chapter 2306,
41-13 Government Code, is amended to read as follows:
41-14 SUBCHAPTER I. HOUSING TRUST FUND
41-15 <FINANCE DIVISION: FUNDS>
41-16 SECTION 42. Section 2306.201, Government Code, is amended to
41-17 read as follows:
41-18 Sec. 2306.201. HOUSING TRUST FUND. (a) The housing trust
41-19 fund is a fund<:>
41-20 <(1)> administered by the department. The fund may be
41-21 <through the housing finance division; and>
41-22 <(2)> placed with the Texas Treasury Safekeeping Trust
41-23 Company.
41-24 (b) The fund consists of:
41-25 (1) appropriations or transfers made to the fund;
41-26 (2) unencumbered fund balances; <and>
41-27 (3) public or private gifts or grants;
42-1 (4) investment income; and
42-2 (5) proceeds from real estate operations and
42-3 transactions.
42-4 SECTION 43. Section 2306.202, Government Code, is amended to
42-5 read as follows:
42-6 Sec. 2306.202. USE OF HOUSING TRUST FUND. (a) The
42-7 department<, through the housing finance division,> shall use the
42-8 housing trust fund to provide loans, grants, or other comparable
42-9 forms of assistance to local units of government, public housing
42-10 authorities, nonprofit organizations, and income-eligible
42-11 individuals, families, and households to finance, acquire,
42-12 rehabilitate, and develop decent, safe, and sanitary housing.
42-13 (b) Use of the fund is limited to providing:
42-14 (1) assistance for individuals and families of low and
42-15 very low income; and
42-16 (2) technical assistance and capacity building to
42-17 nonprofit organizations engaged in developing housing for
42-18 individuals and families of low and very low income.
42-19 SECTION 44. Section 2306.203, Government Code, is amended to
42-20 read as follows:
42-21 Sec. 2306.203. RULES REGARDING ADMINISTRATION OF HOUSING
42-22 TRUST FUND. The department <board> shall adopt rules to administer
42-23 the housing trust fund, including rules providing:
42-24 (1) that <the division give> priority is given to
42-25 programs that maximize other <federal> resources;
42-26 (2) for a process to set priorities for use of the
42-27 fund, including the distribution of fund resources under a request
43-1 for a proposal process developed and approved by the board;
43-2 (3) that the criteria used to rank proposals will
43-3 include the:
43-4 (A) leveraging of other <federal> resources;
43-5 (B) cost-effectiveness of a proposed
43-6 development; and
43-7 (C) extent to which individuals and families of
43-8 very low income are served by the development;
43-9 (4) that funds may not be made available to a
43-10 development that permanently and involuntarily displaces
43-11 individuals and families of low income;
43-12 (5) that the board attempt to allocate funds to
43-13 achieve a broad geographical distribution with:
43-14 (A) special emphasis on equitably serving rural
43-15 and nonmetropolitan areas; and
43-16 (B) consideration of the number and percentage
43-17 of income-qualified families in different geographical areas; and
43-18 (6) that multifamily housing developed or
43-19 rehabilitated through the fund remain affordable to
43-20 income-qualified households for at least 20 years.
43-21 SECTION 45. Subsections (a), (c), (d), and (e), Section
43-22 2306.205, Government Code, are amended to read as follows:
43-23 (a) Except as provided by Subsections (c), (d), and (e), not
43-24 later than January 10 of each year the department <housing finance
43-25 division> shall transfer to the housing trust fund an amount, as
43-26 determined by the audit report prepared under Section 2306.074(c)
43-27 <2306.204>, equal to one-half of the department's <housing finance
44-1 division's> unencumbered fund balances in excess of two percent of
44-2 the department's <division's> total bonded indebtedness that is not
44-3 rated on its own merits in the highest long-term debt rating
44-4 category by one or more nationally recognized rating agencies.
44-5 (c) If, at the time an annual audit required by Section
44-6 2306.074(c) <2306.204> is concluded, the department's <housing
44-7 finance division's> unencumbered fund balances exceed four percent
44-8 of its total bonded indebtedness that is not rated on its own
44-9 merits in the highest long-term debt rating category, the
44-10 department shall transfer not later than January 10 of the next
44-11 year all amounts in excess of that four percent.
44-12 (d) If, at the time an annual audit required by Section
44-13 2306.074(c) <2306.204> is concluded, a nationally recognized rating
44-14 agency has recommended that the department <housing finance
44-15 division> maintain unencumbered fund balances in excess of the
44-16 amount permitted by Subsection (a) to achieve or maintain a rating
44-17 of at least Aa/A+ on all or a portion of the bonded indebtedness of
44-18 the department <housing finance division> that is issued under an
44-19 open indenture or an open flow of funds, the department shall
44-20 transfer not later than January 10 of the next year all amounts in
44-21 excess of the amount required by the rating agency to be held as
44-22 unencumbered fund balances.
44-23 (e) If, at the time an annual audit required by Section
44-24 2306.074(c) <2306.204> is concluded, a nationally recognized rating
44-25 agency has recommended that the department <housing finance
44-26 division> increase the amount of its unencumbered fund balances to
44-27 achieve or maintain a financially sound condition or to prevent a
45-1 decrease in the long-term debt rating maintained on all or a
45-2 portion of the department's <housing finance division's> bonded
45-3 indebtedness, the department <housing finance division> may not
45-4 make further annual transfers to the housing trust fund until all
45-5 requirements and conditions of the rating agency have been met.
45-6 SECTION 46. Section 2306.207, Government Code, is amended to
45-7 read as follows:
45-8 Sec. 2306.207. RESERVE FUND. (a) The department <housing
45-9 finance division> may create a reserve fund with the state
45-10 treasurer out of:
45-11 (1) proceeds from the sale of the department's
45-12 <division's> bonds; or
45-13 (2) other resources.
45-14 (b) The reserve fund is additional security for the
45-15 department's <division's> bonds.
45-16 SECTION 47. The heading to Subchapter J, Chapter 2306,
45-17 Government Code, is amended to read as follows:
45-18 SUBCHAPTER J. HOUSING <FINANCE DIVISION:>
45-19 LOAN TERMS AND CONDITIONS
45-20 SECTION 48. Section 2306.223, Government Code, is amended to
45-21 read as follows:
45-22 Sec. 2306.223. CRITERIA FOR FINANCING HOUSING DEVELOPMENT OF
45-23 HOUSING SPONSOR. Notwithstanding any other provision of this
45-24 chapter, the department may not finance a housing development
45-25 undertaken by a housing sponsor under this chapter, unless the
45-26 department first determines that:
45-27 (1) the housing development is necessary to provide
46-1 needed decent, safe, and sanitary housing at rentals or prices that
46-2 individuals or families of low and very low income or families of
46-3 moderate income can afford;
46-4 (2) the housing sponsor undertaking the proposed
46-5 housing development will supply well-planned and well-designed
46-6 housing for individuals or families of low and very low income or
46-7 families of moderate income;
46-8 (3) the housing sponsor is financially responsible;
46-9 (4) the financing of the housing development is a
46-10 public purpose and will provide a public benefit; and
46-11 (5) the housing development will be undertaken within
46-12 the authority granted by this chapter to the department <housing
46-13 finance division> and the housing sponsor.
46-14 SECTION 49. Section 2306.224, Government Code, is amended to
46-15 read as follows:
46-16 Sec. 2306.224. HOUSING LOAN TERMS AND CONDITIONS. A housing
46-17 loan financed by the department <through a program of the housing
46-18 finance division> under this chapter <subchapter> is subject to the
46-19 terms and conditions provided by this chapter <subchapter>.
46-20 SECTION 50. Section 2306.227, Government Code, is amended to
46-21 read as follows:
46-22 Sec. 2306.227. PREPAYMENT OF MORTGAGE LOANS. A mortgage
46-23 loan made under this chapter may be prepaid to maturity after the
46-24 period of years and under the terms and conditions determined by
46-25 the department <board>.
46-26 SECTION 51. Section 2306.230, Government Code, is amended to
46-27 read as follows:
47-1 Sec. 2306.230. AGREEMENTS REGARDING CERTAIN LIMITATIONS ON
47-2 HOUSING SPONSORS. A housing development <mortgage loan> is subject
47-3 to an agreement between the department and the housing sponsor that
47-4 subjects the sponsor, including <and> its principals or
47-5 stockholders, if any, to limitations established by the department
47-6 regarding:
47-7 (1) rentals and other charges;
47-8 (2) builders' and developers' profits and fees;
47-9 (3) the disposition of its property; and
47-10 (4) the real property that constitutes the site of or
47-11 relates to the housing development.
47-12 SECTION 52. Section 2306.231, Government Code, is amended to
47-13 read as follows:
47-14 Sec. 2306.231. <LOAN> CONDITIONS RELATING TO FUNDING BY
47-15 DEPARTMENT <POWERS>. As a condition of funding <each loan>, the
47-16 department<, acting through the housing finance division,> may at
47-17 any time during the construction, rehabilitation, or operation of a
47-18 housing development:
47-19 (1) enter and inspect the housing development to:
47-20 (A) investigate the development's:
47-21 (i) physical and financial condition;
47-22 (ii) construction;
47-23 (iii) rehabilitation;
47-24 (iv) operation;
47-25 (v) management; <and>
47-26 (vi) maintenance; and
47-27 (vii) compliance with restrictive
48-1 covenants; and
48-2 (B) examine all books and records relating to:
48-3 (i) capitalization;
48-4 (ii) income and expenses; and
48-5 (iii) other matters regarding
48-6 capitalization or income and expenses;
48-7 (2) impose charges that are required to cover the cost
48-8 of inspections and examinations under Subdivision (1);
48-9 (3) order alterations, changes, or repairs necessary
48-10 to protect:
48-11 (A) the security of the department's investment
48-12 in a housing development; or
48-13 (B) the health, safety, and welfare of the
48-14 occupants of a housing development;
48-15 (4) order a managing agent, housing development
48-16 manager, or housing development owner to do whatever is necessary
48-17 to comply with or refrain from violating an applicable law,
48-18 ordinance, department rule, or term of an agreement regarding the
48-19 housing development; and
48-20 (5) file and prosecute a complaint against a managing
48-21 agent, housing development manager, or housing development owner
48-22 for a violation of any applicable law or ordinance.
48-23 SECTION 53. Section 2306.232, Government Code, is amended to
48-24 read as follows:
48-25 Sec. 2306.232. TEXAS HOUSING AGENCY LOAN OR GUARANTEE. A
48-26 loan or guarantee made by the Texas Housing Agency becomes a loan
48-27 or guarantee of the department <housing finance division>.
49-1 SECTION 54. The heading of Subchapter K, Chapter 2306,
49-2 Government Code, is amended to read as follows:
49-3 SUBCHAPTER K. PROPERTY OWNERSHIP AND
49-4 <HOUSING FINANCE DIVISION:> HOUSING PROGRAMS
49-5 SECTION 55. Section 2306.251, Government Code, is amended to
49-6 read as follows:
49-7 Sec. 2306.251. PROPERTY OWNERSHIP PROGRAM. (a) The
49-8 department may acquire and own real property on an interim basis
49-9 not to exceed five years for sale or rental to:
49-10 (1) individuals and families of low and very low
49-11 income; and
49-12 (2) nonprofit housing organizations and other housing
49-13 organizations to serve the needs of individuals and families of low
49-14 and very low income and families of moderate income.
49-15 (b) Property acquired by the department must qualify for
49-16 home mortgage insurance after rehabilitation.
49-17 (c) The department <housing finance division> may use money
49-18 from the housing trust fund, <or> unencumbered fund balances, or
49-19 appropriations, allocations, grants, or gifts from any public or
49-20 private source to purchase property under this section.
49-21 (d) The department <division> may not use more than 10
49-22 percent of the yearly balance of the housing trust fund to acquire
49-23 real property to endow the fund.
49-24 (e) <(d)> If the department acquires property under this
49-25 section, the department <housing finance division> shall submit an
49-26 annual report to the board <have an independent audit conducted
49-27 annually> to analyze the property ownership program's:
50-1 (1) financial stability;
50-2 (2) cost-effectiveness; and
50-3 (3) effectiveness in serving individuals of low and
50-4 very low income.
50-5 SECTION 56. Section 2306.252, Government Code, is amended to
50-6 read as follows:
50-7 Sec. 2306.252. LOW AND VERY LOW INCOME HOUSING RESOURCE
50-8 CENTER. (a) The department <board> shall establish a low and very
50-9 low income housing resource center <in the housing finance
50-10 division>.
50-11 (b) The center shall:
50-12 (1) provide research and educational material to
50-13 housing advocates, housing sponsors, borrowers, and tenants;
50-14 (2) provide training and technical assistance to
50-15 nonprofit housing sponsors; and
50-16 (3) <focus on marketing loans and other programs of
50-17 the housing finance division to individuals and families of low and
50-18 very low income; and>
50-19 <(4)> assist <lenders> in the development of housing
50-20 policy <marketing loans to individuals and families of low and very
50-21 low income>.
50-22 SECTION 57. The heading of Subchapter L, Chapter 2306,
50-23 Government Code, is amended to read as follows:
50-24 SUBCHAPTER L. <HOUSING FINANCE DIVISION:>
50-25 REGULATION OF HOUSING SPONSORS
50-26 SECTION 58. Section 2306.261, Government Code, is amended to
50-27 read as follows:
51-1 Sec. 2306.261. SUPERVISING HOUSING SPONSORS. The department
51-2 <housing finance division> may, as provided by this subchapter,
51-3 supervise:
51-4 (1) housing sponsors, including limited profit housing
51-5 sponsors, of housing developments that are financed under this
51-6 chapter and rented or leased to tenants; and
51-7 (2) real and personal property of sponsors.
51-8 SECTION 59. Section 2306.263, Government Code, is amended to
51-9 read as follows:
51-10 Sec. 2306.263. REPORTING. The department may require
51-11 housing sponsors to:
51-12 (1) make reports and certifications of their
51-13 operations and expenditures; and
51-14 (2) answer specific questions on forms whenever
51-15 necessary for the purposes of this chapter.
51-16 SECTION 60. Section 2306.264, Government Code, is amended to
51-17 read as follows:
51-18 Sec. 2306.264. INSPECTIONS AND EXAMINATIONS. The
51-19 department, through its agents or employees, may:
51-20 (1) enter and inspect, in whole or in part, the land,
51-21 buildings, and equipment of a housing sponsor; and
51-22 (2) examine all records showing the capital structure,
51-23 income, operations, expenditures, and other payments of a housing
51-24 sponsor.
51-25 SECTION 61. Section 2306.267, Government Code, is amended to
51-26 read as follows:
51-27 Sec. 2306.267. COMPLIANCE WITH APPLICABLE LAWS, RULES, AND
52-1 CONTRACT TERMS. The department may order a housing sponsor to
52-2 perform or refrain from performing certain acts in order to comply
52-3 with the law, department policies <housing finance division rules>,
52-4 or terms of a contract or agreement to which the housing sponsor is
52-5 a party.
52-6 SECTION 62. Section 2306.270, Government Code, is amended to
52-7 read as follows:
52-8 Sec. 2306.270. REGULATION OF RETIREMENT OF CAPITAL
52-9 INVESTMENT OR REDEMPTION OF STOCK. The department shall regulate
52-10 the retirement of a capital investment or the redemption of stock
52-11 of a limited profit housing sponsor if the retirement or
52-12 redemption, when added to a dividend or other distribution, exceeds
52-13 in any one fiscal year the permitted percentage, as allowed by the
52-14 department <housing finance division's rules>, of the original face
52-15 amount of the limited profit housing sponsor's investment or equity
52-16 in a housing development.
52-17 SECTION 63. Section 2306.271, Government Code, is amended to
52-18 read as follows:
52-19 Sec. 2306.271. COST CONTROLS. (a) The department <housing
52-20 finance division by rule> shall specify the categories of costs
52-21 allowable in the construction, reconstruction, remodeling,
52-22 improvement, or rehabilitation of a housing development.
52-23 (b) The department <housing finance division> shall require
52-24 a housing sponsor to certify the actual housing development costs
52-25 on completion of the housing development, subject to audit and
52-26 determination by the department.
52-27 (c) The department may accept, instead of certification of
53-1 housing development costs under Subsection (b), other assurances of
53-2 the costs, in any form, that will enable the department <housing
53-3 finance division> to determine with reasonable accuracy the amount
53-4 of the costs.
53-5 (d) In this section, "housing development costs" means the
53-6 total of all costs incurred in financing, creating, or purchasing a
53-7 housing development, including a single-family dwelling, approved
53-8 by the department as reasonable and necessary. The costs may
53-9 include:
53-10 (1) the value of land and buildings on the land owned
53-11 by the sponsor or the cost of acquiring land and buildings on the
53-12 land, including payments for options, deposits, or contracts to
53-13 purchase properties on the proposed housing site;
53-14 (2) costs of site preparation, demolition, and
53-15 development;
53-16 (3) expenses relating to the issuance of bonds;
53-17 (4) fees paid or payable in connection with the
53-18 planning, execution, and financing of the housing development,
53-19 including fees to:
53-20 (A) architects;
53-21 (B) engineers;
53-22 (C) attorneys;
53-23 (D) accountants; or
53-24 (E) the department <housing finance division on
53-25 the department's behalf>;
53-26 (5) costs of necessary studies, surveys, plans,
53-27 permits, insurance, interest, financing, tax and assessment costs,
54-1 and other operating and carrying costs during construction;
54-2 (6) costs of construction, rehabilitation,
54-3 reconstruction, fixtures, furnishings, equipment, machinery, and
54-4 apparatus related to the real property;
54-5 (7) costs of land improvements, including landscaping
54-6 and off-site improvements, whether or not the costs have been paid
54-7 in cash or in a form other than cash;
54-8 (8) necessary expenses for the initial occupancy of
54-9 the housing development;
54-10 (9) a reasonable profit and risk fee in addition to
54-11 job overhead to the general contractor or limited profit housing
54-12 sponsor;
54-13 (10) an allowance established by the department for
54-14 working capital and contingency reserves and reserves for
54-15 anticipated operating deficits during the first two years of
54-16 occupancy; and
54-17 (11) the cost of other items, including tenant
54-18 relocation if tenant relocation costs are not otherwise provided
54-19 for, that the department determines are reasonable and necessary
54-20 for the development of the housing development, less net rents and
54-21 other net revenues received from the operation of the real and
54-22 personal property on the development site during construction.
54-23 SECTION 64. Subsections (a) and (b), Section 2306.272,
54-24 Government Code, are amended to read as follows:
54-25 (a) A principal or stockholder of a housing sponsor may not
54-26 earn, accept, or receive a per annum return on an investment in a
54-27 housing development financed by the department greater than that
55-1 allowed the <by> department <rule>.
55-2 (b) A housing sponsor's equity in a housing development may
55-3 be either <is> the difference between the mortgage loan and the
55-4 total housing development cost or another amount determined by the
55-5 department.
55-6 SECTION 65. The heading of Subchapter M, Chapter 2306,
55-7 Government Code, is amended to read as follows:
55-8 SUBCHAPTER M. <HOUSING FINANCE DIVISION:>
55-9 PURCHASE AND SALE OF MORTGAGE LOANS
55-10 SECTION 66. Section 2306.291, Government Code, is amended by
55-11 amending Subsection (a) and by adding Subsection (c) to read as
55-12 follows:
55-13 (a) The department may purchase and take assignments from
55-14 mortgage lenders or the federal government of notes and other
55-15 obligations, including contracts for deed, mortgages, or other
55-16 obligations evidencing loans or interest in loans for the
55-17 construction, remodeling, improvement or rehabilitation, purchase,
55-18 leasing, or refinancing of housing developments for individuals and
55-19 families of low and very low income and families of moderate
55-20 income.
55-21 (c) In this section, "contract for deed" means a
55-22 seller-financed contract for the conveyance of land under which
55-23 legal title does not pass to the purchaser until consideration
55-24 under the contract is fully paid to the seller and the seller's
55-25 remedy for nonpayment is forfeiture rather than judicial or
55-26 nonjudicial foreclosure. The purchaser under a contract for deed
55-27 is not disqualified on that basis as a first time homebuyer.
56-1 SECTION 67. Section 2306.292, Government Code, is amended to
56-2 read as follows:
56-3 Sec. 2306.292. ELIGIBILITY OF MORTGAGE LOANS FOR PURCHASE.
56-4 A mortgage loan or interest in a mortgage loan is not eligible for
56-5 purchase by or on behalf of the department from a mortgage lender
56-6 unless the mortgage lender certifies that the mortgage loan or
56-7 interest in the mortgage loan is for a housing development that
56-8 includes benefits for individuals or families of low and very low
56-9 income or for families of moderate income.
56-10 SECTION 68. Section 2306.294, Government Code, is amended to
56-11 read as follows:
56-12 Sec. 2306.294. MORTGAGE LOAN PURCHASE PRICE. <(a)> On
56-13 purchasing a mortgage loan or interest in a mortgage loan from a
56-14 mortgage lender, the department may <shall> pay a purchase price
56-15 equal to the outstanding principal balance and accrued interest,
56-16 except that a discount <from the principal balance> or the payment
56-17 of a premium may be used to produce a fair rate of return
56-18 consistent with the obligations of the department and the purposes
56-19 of this chapter.
56-20 <(b) In addition to payment of the outstanding principal
56-21 balance, the department shall pay the accrued interest due to the
56-22 date on which the mortgage loan is delivered against payment.>
56-23 SECTION 69. Section 2306.295, Government Code, is amended to
56-24 read as follows:
56-25 Sec. 2306.295. POLICIES <RULES> GOVERNING PURCHASE AND SALE
56-26 OF MORTGAGE LOANS. The department shall adopt policies <rules>
56-27 governing the purchase and sale of mortgage loans and the
57-1 application of sale proceeds, including policies <rules> governing:
57-2 (1) procedures for submitting requests or inviting
57-3 proposals for the purchase and sale of mortgage loans or interest
57-4 in the mortgage loans;
57-5 (2) restrictions on the number of family units,
57-6 location, or other qualifications of residences to be financed by
57-7 residential mortgage loans;
57-8 (3) income limits of individuals and families of low
57-9 and very low income or families of moderate income occupying a
57-10 residence financed by a residential mortgage loan;
57-11 (4) restrictions relating to the interest rates on
57-12 mortgage loans or the return realized by mortgage lenders;
57-13 (5) requirements for commitments by mortgage lenders
57-14 relating to mortgage loans;
57-15 (6) schedules of fees and charges necessary for
57-16 expenses and reserves of the department <housing finance division>;
57-17 (7) resale of the housing development; and
57-18 (8) any other matter related to the power of the
57-19 department to purchase and sell mortgage loans or interests in
57-20 mortgage loans.
57-21 SECTION 70. Subsection (a), Section 2306.296, Government
57-22 Code, is amended to read as follows:
57-23 (a) The department shall review each mortgage loan purchased
57-24 or financed by the department to determine if the loan meets:
57-25 (1) the conditions of this chapter; and
57-26 (2) <the department's rules; and>
57-27 <(3)> any commitment made with the mortgage lender to
58-1 purchase mortgage loans.
58-2 SECTION 71. Section 2306.297, Government Code, is amended to
58-3 read as follows:
58-4 Sec. 2306.297. APPLICATION OF PROVISIONS RELATING TO LOAN
58-5 TERMS AND CONDITIONS. Sections 2306.0515, 2306.089, 2306.225,
58-6 2306.227, and <through> 2306.229 apply to the purchase of mortgage
58-7 loans.
58-8 SECTION 72. The heading of Subchapter N, Chapter 2306,
58-9 Government Code, is amended to read as follows:
58-10 SUBCHAPTER N. <HOUSING FINANCE DIVISION:>
58-11 TENANTS OF HOUSING DEVELOPMENTS
58-12 SECTION 73. Section 2306.315, Government Code, is amended to
58-13 read as follows:
58-14 Sec. 2306.315. DISCHARGE FROM LIABILITY; REIMBURSEMENT. If
58-15 an individual or family who resides in a cooperative housing
58-16 development is required to move from the development because of
58-17 excessive income, the individual or family must be:
58-18 (1) discharged from liability for any note, bond, or
58-19 other evidence of indebtedness; and
58-20 (2) reimbursed, as required by the <under> department
58-21 <rules>, for all sums paid to the housing sponsor on account of
58-22 the:
58-23 (A) purchase of stock or debentures as a
58-24 condition of occupancy; or
58-25 (B) acquisition of title for that purpose.
58-26 SECTION 74. The heading of Subchapter O, Chapter 2306,
58-27 Government Code, is amended to read as follows:
59-1 SUBCHAPTER O. <HOUSING FINANCE DIVISION:> REGULATION OF
59-2 MORTGAGE LENDERS, SERVICERS, AND CONTRACTORS
59-3 SECTION 75. Section 2306.332, Government Code, is amended to
59-4 read as follows:
59-5 Sec. 2306.332. MONITORING MORTGAGE LENDERS. The department
59-6 shall develop a written plan to monitor and review <audit> the
59-7 performance of mortgage lenders. The plan must include a
59-8 requirement:
59-9 (1) that mortgage lenders comply with quality control
59-10 standards established by appropriate federal agencies;
59-11 (2) for a review <an audit> of mortgage lenders'
59-12 compliance with program guidelines to be conducted by random
59-13 selection of loans and associated paperwork for review;
59-14 (3) for monitoring delinquency and foreclosure rates
59-15 for currently participating mortgage lenders to identify
59-16 unfavorable trends;
59-17 (4) for an extensive review <audit> after a finding of
59-18 an unfavorable trend under Subdivision (3); <and>
59-19 (5) for reporting the information gathered under this
59-20 section to the director and the board; and
59-21 (6) for monitoring mortgage lenders' performance in
59-22 providing access to mortgage credit through the department's
59-23 programs to meet the credit needs of families living in the
59-24 mortgage lenders' service areas without regard to race or
59-25 ethnicity.
59-26 SECTION 76. Section 2306.333, Government Code, is amended to
59-27 read as follows:
60-1 Sec. 2306.333. MONITORING MORTGAGE SERVICERS. The
60-2 department <housing finance division> shall develop a written plan
60-3 to monitor and review <audit> the performance of mortgage
60-4 servicers. The plan must include:
60-5 (1) a method of developing criteria to evaluate the
60-6 performance of servicers;
60-7 (2) a method of monitoring the performance of a
60-8 servicer under the criteria developed under Subdivision (1);
60-9 (3) a requirement for a review of the financial
60-10 statements of a servicer;
60-11 (4) a process for an extensive review <audit> of
60-12 servicers who repeatedly violate the terms of the servicers'
60-13 contracts with the department;
60-14 (5) the designation of a review <an audit> team
60-15 consisting of staff members from relevant areas of the department
60-16 <housing finance division>; and
60-17 (6) a method of reporting the information gathered
60-18 under this section to the director and the board.
60-19 SECTION 77. Section 2306.334, Government Code, is amended to
60-20 read as follows:
60-21 Sec. 2306.334. MONITORING CONTRACTORS. The department shall
60-22 develop a written plan to monitor and review <audit> the
60-23 performance of real estate owned contractors and other contractors.
60-24 The plan must include:
60-25 (1) a requirement for a periodic inspection of
60-26 foreclosed property;
60-27 (2) a method of monitoring contractors' performance of
61-1 contract requirements; and
61-2 (3) a requirement for a periodic review of
61-3 contractors' billing procedures.
61-4 SECTION 78. The heading of Subchapter P, Chapter 2306,
61-5 Government Code, is amended to read as follows:
61-6 SUBCHAPTER P. <HOUSING FINANCE DIVISION BONDS:>
61-7 ISSUANCE OF BONDS
61-8 SECTION 79. Subsections (a) and (c), Section 2306.353,
61-9 Government Code, are amended to read as follows:
61-10 (a) In addition to issuing general obligation bonds under
61-11 Section 2306.352, the department may issue revenue bonds to provide
61-12 money to carry out a purpose, power, or duty of the department
61-13 <housing finance division> under this chapter.
61-14 (c) The bonds shall be payable as to principal, interest,
61-15 and redemption premium, if any, from, and secured by, a first or
61-16 subordinate lien on, and pledge of, all or part of the revenues,
61-17 income, or other resources of the department <housing finance
61-18 division>, including:
61-19 (1) the repayments of mortgage loans;
61-20 (2) the earnings from investment or deposit of the
61-21 reserve fund and other funds of the department <housing finance
61-22 division>;
61-23 (3) the fees, charges, and other amounts or payments
61-24 received under this chapter; and
61-25 (4) appropriations, grants, allocations, subsidies,
61-26 rent supplements, guaranties, aid, contribution, or donations.
61-27 SECTION 80. Section 2306.357, Government Code, is amended to
62-1 read as follows:
62-2 Sec. 2306.357. BONDS ISSUED BY TEXAS HOUSING AGENCY. A
62-3 general obligation or revenue bond issued by the Texas Housing
62-4 Agency becomes a general obligation or revenue bond of the
62-5 department <housing finance division>.
62-6 SECTION 81. The heading of Subchapter Q, Chapter 2306,
62-7 Government Code, is amended to read as follows:
62-8 SUBCHAPTER Q. <HOUSING FINANCE DIVISION BONDS:>
62-9 BOARD ACTION ON BONDS
62-10 SECTION 82. The heading of Subchapter R, Chapter 2306,
62-11 Government Code, is amended to read as follows:
62-12 SUBCHAPTER R. <HOUSING FINANCE DIVISION> BONDS: FORM; TERMS
62-13 SECTION 83. The heading of Subchapter S, Chapter 2306,
62-14 Government Code, is amended to read as follows:
62-15 SUBCHAPTER S. <HOUSING FINANCE DIVISION BONDS:>
62-16 SECURITY FOR BONDS
62-17 SECTION 84. Subsection (a), Section 2306.411, Government
62-18 Code, is amended to read as follows:
62-19 (a) In addition to other security for the department's bonds
62-20 authorized by this chapter, payment of the principal and interest
62-21 and redemption premium, if any, on the department's bonds may be
62-22 secured by a first or subordinate lien on and pledge of all or part
62-23 of:
62-24 (1) the department's assets and real, personal, or
62-25 mixed property, including:
62-26 (A) mortgages or other obligations securing the
62-27 assets of property;
63-1 (B) investments; and
63-2 (C) trust agreements or trust indentures
63-3 administered by one or more corporate trustees as allowed by the
63-4 board; and
63-5 (2) the reserves or funds of the department <housing
63-6 finance division>.
63-7 SECTION 85. Subsection (a), Section 2306.412, Government
63-8 Code, is amended to read as follows:
63-9 (a) A lien on or pledge of revenues, income, assets,
63-10 reserves, funds, or other resources of the department <housing
63-11 finance division>, as authorized by this chapter, is valid and
63-12 binding from the time of payment for and delivery of the bonds
63-13 authorized by the board resolution creating or confirming the lien
63-14 or pledge.
63-15 SECTION 86. The heading of Subchapter T, Chapter 2306,
63-16 Government Code, is amended to read as follows:
63-17 SUBCHAPTER T. <HOUSING FINANCE DIVISION BONDS:>
63-18 APPROVAL, REGISTRATION, AND EXECUTION OF BONDS
63-19 SECTION 87. The heading of Subchapter U, Chapter 2306,
63-20 Government Code, is amended to read as follows:
63-21 SUBCHAPTER U. <HOUSING FINANCE DIVISION BONDS:>
63-22 RIGHTS AND REMEDIES OF BOND HOLDERS AND PARTIES IN INTEREST
63-23 SECTION 88. The heading of Subchapter V, Chapter 2306,
63-24 Government Code, is amended to read as follows:
63-25 SUBCHAPTER V. DEPARTMENT <HOUSING FINANCE DIVISION> BONDS:
63-26 OBLIGATIONS OF DEPARTMENT AND STATE
63-27 SECTION 89. Section 2306.472, Government Code, is amended to
64-1 read as follows:
64-2 Sec. 2306.472. DEPARTMENT'S BONDS OTHER THAN GENERAL
64-3 OBLIGATION BONDS NOT OBLIGATIONS OF THE STATE. Except for bonds
64-4 authorized by the Texas Constitution and issued under Section
64-5 2306.352, the department's bonds:
64-6 (1) are solely obligations of the department and are
64-7 payable solely from funds of the department's bond-financed
64-8 activities <housing finance division>;
64-9 (2) are not an obligation, debt, or liability of the
64-10 state; and
64-11 (3) do not create or constitute a pledge, giving, or
64-12 lending of the faith, credit, or taxing power of the state.
64-13 SECTION 90. The heading of Subchapter W, Chapter 2306,
64-14 Government Code, is amended to read as follows:
64-15 SUBCHAPTER W. DEPARTMENT <HOUSING FINANCE DIVISION> BONDS:
64-16 MISCELLANEOUS PROVISIONS
64-17 SECTION 91. Section 2306.491, Government Code, is amended to
64-18 read as follows:
64-19 Sec. 2306.491. BONDS NEGOTIABLE INSTRUMENTS.
64-20 Notwithstanding any other statute, a bond and interest coupon
64-21 issued and delivered by the department <housing finance division>
64-22 is a negotiable instrument under the Uniform Commercial Code,
64-23 except that the bond may be registered or subject to registration
64-24 under this chapter.
64-25 SECTION 92. Section 2306.513, Government Code, is amended to
64-26 read as follows:
64-27 Sec. 2306.513. HOUSING FOR INDIVIDUALS WITH SPECIAL NEEDS.
65-1 (a) The board shall adopt policies <rules> to achieve occupancy by
65-2 individuals with special needs of at least five percent of the
65-3 units in each multifamily housing development.
65-4 (b) Subsection (a) applies only to a multifamily housing
65-5 development that contains at least 20 units and is financed by
65-6 bonds issued under this chapter.
65-7 (c) If a survey that is conducted by the housing sponsor and
65-8 verified by the department <housing finance division> reveals that
65-9 there is not sufficient need for housing for individuals with
65-10 special needs in the area in which the development will be built or
65-11 renovated to justify building or renovating and reserving at least
65-12 five percent of the units for individuals with special needs, the
65-13 department may, on a showing of good cause by the housing sponsor,
65-14 lower the requirements to correspond to the amount of need found by
65-15 the housing sponsor.
65-16 <(d) The housing finance division shall cooperate with the
65-17 Texas Department on Aging to implement this section and shall
65-18 reimburse the department for the costs of:>
65-19 <(1) assessing the need for housing for individuals
65-20 with special needs in different locations;>
65-21 <(2) setting standards relating to the design and
65-22 construction of housing for individuals with special needs;>
65-23 <(3) providing planning assistance to builders; and>
65-24 <(4) publicizing the availability of the housing
65-25 program to potential developers and residents.>
65-26 <(e) The department and the Texas Department on Aging shall
65-27 determine a procedure for paying for services provided by the Texas
66-1 Department on Aging.>
66-2 SECTION 93. Chapter 2306, Government Code, is amended by
66-3 adding Subchapter Y to read as follows:
66-4 SUBCHAPTER Y. TEXAS STATE AFFORDABLE HOUSING CORPORATION
66-5 Sec. 2306.551. DEFINITION. In this subchapter,
66-6 "corporation" means the Texas State Affordable Housing Corporation.
66-7 Sec. 2306.552. CREATION. (a) The existence of the Texas
66-8 State Affordable Housing Corporation, or any similarly named
66-9 corporation, begins on the date that the secretary of state issues
66-10 the certificate of incorporation.
66-11 (b) The charter of the corporation must establish the
66-12 corporation as nonprofit and specifically dedicate the
66-13 corporation's activities to the benefit of the department.
66-14 (c) The creation of the corporation does not limit or impair
66-15 the rights, powers, and duties of the department under this
66-16 chapter.
66-17 Sec. 2306.553. PURPOSES. (a) The corporation shall carry
66-18 out the public purposes of this chapter on behalf of the state.
66-19 (b) The corporation may engage only in the performance of
66-20 charitable functions.
66-21 Sec. 2306.554. BOARD OF DIRECTORS. The members of the board
66-22 serve as the board of directors of the corporation.
66-23 Sec. 2306.555. POWERS. (a) The corporation has the rights
66-24 and powers of a nonprofit corporation incorporated under the Texas
66-25 Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
66-26 Texas Civil Statutes).
66-27 (b) The corporation may contract with the department and
67-1 with bond counsel, financial advisors, or underwriters.
67-2 (c) A member of the board of directors or an officer or
67-3 employee of the corporation is not liable personally for bonds
67-4 issued or contracts executed by the corporation or for any other
67-5 action taken in accordance with the powers and duties authorized by
67-6 this subchapter.
67-7 Sec. 2306.556. TAX EXEMPT. The corporation is exempt from
67-8 all taxation by the state or a political subdivision of the state,
67-9 including a municipality.
67-10 Sec. 2306.557. DISTRIBUTION OF EARNINGS. Any part of
67-11 earnings remaining after payment of expenses may not inure to any
67-12 person except that the corporation shall deposit these earnings to
67-13 the credit of the general revenue fund for the benefit of the
67-14 department if the corporation's board of directors determines that
67-15 sufficient provision has been made for the full payment of the
67-16 expenses, bonds, and other obligations of the corporation.
67-17 Sec. 2306.558. ALTERATION AND TERMINATION. (a) Subject to
67-18 this subchapter and the prohibition on the impairment of contracts
67-19 in the law of this state, the corporation's board of directors by
67-20 written resolution may alter the structure, organization, programs,
67-21 or activities of the corporation or terminate and dissolve the
67-22 corporation.
67-23 (b) The corporation's board of directors shall dissolve the
67-24 corporation if the board by resolution determines that:
67-25 (1) the purposes for which the corporation was formed
67-26 have been substantially fulfilled; and
67-27 (2) all bonds issued by the corporation have been
68-1 fully paid.
68-2 (c) On dissolution, the title to funds and properties
68-3 previously owned by the corporation shall be transferred to the
68-4 department.
68-5 Sec. 2306.559. ANNUAL REPORT. (a) The corporation shall
68-6 file an annual report of the financial activity of the corporation
68-7 with the department.
68-8 (b) The corporation shall file the report before the 90th
68-9 day after the last day of the corporation's fiscal year.
68-10 (c) The corporation shall prepare the report in accordance
68-11 with generally accepted accounting principles.
68-12 (d) The report must include:
68-13 (1) a statement of support, revenue, and expenses and
68-14 change in fund balances;
68-15 (2) a statement of functional expenses; and
68-16 (3) balance sheets for all funds.
68-17 Sec. 2306.560. APPLICATION OF OPEN RECORDS AND OPEN MEETINGS
68-18 LAWS. (a) The corporation is subject to the open records law,
68-19 Chapter 552, except that the proprietary financial records of a
68-20 private applicant, borrower, or other recipient of funds are not a
68-21 public record.
68-22 (b) The corporation is subject to the open meetings law,
68-23 Chapter 551, except that the board is not required to conduct an
68-24 open meeting to discuss proprietary financial matters of a private
68-25 applicant, borrower, or other recipient of funds.
68-26 SECTION 94. Chapter 2306, Government Code, is amended by
68-27 adding Subchapter Z to read as follows:
69-1 SUBCHAPTER Z. EMERGENCY NUTRITION AND TEMPORARY
69-2 EMERGENCY RELIEF PROGRAM
69-3 Sec. 2306.601. PURPOSE. (a) The legislature finds that:
69-4 (1) economic and demographic changes have created
69-5 rapid increases in the number of needy persons who are homeless or
69-6 without other necessities of basic existence;
69-7 (2) local governments and nonprofit service
69-8 organizations are unable to meet the increased financial burden
69-9 caused by those changes in various areas of the state; and
69-10 (3) the dramatic nature of the emergency relief needs
69-11 in various localities has contributed to family instability and
69-12 threatened the social and economic stability of those communities.
69-13 (b) The intent of this subchapter is to serve a public
69-14 purpose and the goals of the state by providing state money to
69-15 supplement any local or federal money available to provide
69-16 emergency relief to needy persons.
69-17 Sec. 2306.602. DEFINITIONS. In this subchapter:
69-18 (1) "Applicant" means the commissioners court of a
69-19 county, the governing body of another political subdivision, or a
69-20 nonprofit organization.
69-21 (2) "Nonprofit organization" means a private,
69-22 nonprofit, tax-exempt corporation listed in Section 501(c)(3),
69-23 Internal Revenue Code of 1986 (26 U.S.C. Section 501(c)(3)).
69-24 (3) "Program" means a system of providing temporary
69-25 emergency relief to needy persons.
69-26 Sec. 2306.603. TEMPORARY EMERGENCY RELIEF FUND. (a) The
69-27 department shall establish a temporary emergency relief fund from
70-1 money appropriated for that purpose in order to assist counties, in
70-2 cooperation with other public entities and nonprofit organizations,
70-3 in meeting the needs of individuals and families for temporary
70-4 emergency relief.
70-5 (b) The department shall establish the emergency nutrition
70-6 program as part of the temporary emergency relief program
70-7 established under this subchapter. The emergency nutrition program
70-8 may allocate money from the temporary emergency relief fund to meet
70-9 the unmet need for emergency food assistance. The money shall be
70-10 used as a grant to local communities. The department shall
70-11 administer the emergency nutrition program in the same fashion and
70-12 under the same procedures as used to govern the administration of
70-13 the temporary emergency relief program.
70-14 (c) Unobligated and unexpended money that remains in the
70-15 fund at the end of the fiscal biennium and that has not been
70-16 allocated or provided as a supplemental allocation to an applicant
70-17 reverts to the general revenue fund.
70-18 (d) The department may use not more than six percent of the
70-19 fund to pay costs incurred in administering the fund.
70-20 (e) The department shall deposit five percent of the money
70-21 appropriated to the department under this subchapter to the credit
70-22 of a special fund in the state treasury known as the emergency
70-23 contingency fund. The department may not spend the money in the
70-24 emergency contingency fund without the written approval of the
70-25 governor, lieutenant governor, and speaker of the house of
70-26 representatives. The department shall spend the money as directed
70-27 by a joint order of the governor, lieutenant governor, and speaker
71-1 of the house of representatives.
71-2 Sec. 2306.604. APPLICATION. (a) A county may apply to the
71-3 department for a grant-in-aid to establish and administer a program
71-4 under this subchapter.
71-5 (b) If a county declines to act, the department may accept
71-6 applications from other political subdivisions or from nonprofit
71-7 organizations. The political subdivision or nonprofit organization
71-8 must first notify the county judge of the intention to submit an
71-9 application for a grant-in-aid.
71-10 (c) An application submitted under this section must provide
71-11 evidence that a county requires assistance and that the applicant
71-12 has consulted with public entities, nonprofit organizations,
71-13 voluntary associations, representatives of low-income persons, and
71-14 other groups involved in providing assistance to needy persons.
71-15 The department may approve only one program for each county.
71-16 (d) A decision by a county to administer a program under
71-17 this subchapter remains in effect until the county notifies the
71-18 department that the county no longer wants to participate in the
71-19 program. If a county decides to discontinue its participation, the
71-20 department may choose an applicant as an alternative participant as
71-21 prescribed by Subsection (b).
71-22 (e) The department shall develop standards and procedures
71-23 for the program that permit all counties in the state to
71-24 participate.
71-25 Sec. 2306.605. LOCAL ALLOCATION. (a) State money provided
71-26 to a local applicant under this subchapter may not be used for
71-27 local administrative costs.
72-1 (b) An allocation to a county from the fund established by
72-2 Section 2306.603 shall be based on the county's demonstrated need
72-3 for the money. The formula used by the department to allocate the
72-4 money shall include:
72-5 (1) the number of unemployed persons in the county
72-6 during the most recent 12-month period for which data are available
72-7 compared to the number in the state for that period; and
72-8 (2) the number of persons in poverty in the county
72-9 during the most recent 12-month period for which data are available
72-10 compared to the number in the state for that period.
72-11 Sec. 2306.606. LOCAL PLAN; DISBURSEMENT. (a) An applicant
72-12 must submit to the department a plan for providing emergency
72-13 relief.
72-14 (b) The plan must contain a description of the target
72-15 population, the eligibility criteria for receipt of services, the
72-16 nature and scope of benefits to be provided, methods of
72-17 administration, and a budget. The plan must also show evidence of
72-18 consultation with the entities listed in Section 2306.604(c).
72-19 (c) On verification by the department that the applicant
72-20 qualifies under this subchapter, the department shall disburse
72-21 money from the fund to the applicant to be used to establish a
72-22 program in the affected county.
72-23 Sec. 2306.607. ELIGIBILITY AND PROVISION OF ASSISTANCE.
72-24 (a) Each county, political subdivision, or nonprofit organization
72-25 approved by the department for the establishment of a program shall
72-26 adopt its own criteria for persons eligible to receive benefits
72-27 under the program and shall include the criteria in the plan for
73-1 providing emergency relief submitted to the department.
73-2 (b) Before establishing eligibility and the frequency and
73-3 duration of benefits provided under the program, the county,
73-4 political subdivision, or nonprofit organization shall allow
73-5 adequate notice and opportunity for public comment, including
73-6 comments from entities listed in Section 2306.604(c).
73-7 (c) A county, political subdivision, or nonprofit
73-8 organization may not set the eligibility level at less than 75
73-9 percent of the federal poverty level based on the federal Office of
73-10 Management and Budget poverty index in effect at the time the plan
73-11 is submitted to the department.
73-12 (d) Assistance to persons eligible to participate in a
73-13 program authorized by this subchapter shall be provided through
73-14 vouchers and purchased services in accordance with the approved
73-15 plan submitted to the department. The assistance may include the
73-16 provision of utilities, food, housing, and clothing to needy
73-17 persons.
73-18 (e) Records relating to a program under this subchapter are
73-19 subject to audit by the department, an auditor approved by the
73-20 department, or the state auditor.
73-21 Sec. 2306.608. REPORTS; PUBLIC NOTICES. A county, political
73-22 subdivision, or nonprofit organization funded under this subchapter
73-23 shall provide information to the department as necessary to ensure
73-24 that information is provided to the public regarding eligibility
73-25 for and the nature of a program operated under this subchapter.
73-26 Sec. 2306.609. RELATIONSHIP TO FEDERAL LAW. (a) If a
73-27 federal law or regulation is changed without making provision for
74-1 temporary waivers to allow compliance with state law, and, as a
74-2 result of this change, there is insufficient time to comply with
74-3 all the procedures required by this subchapter, the agency or
74-4 entity affected may act so as to comply with federal law and shall
74-5 comply with the applicable procedures required by this subchapter
74-6 as soon as possible.
74-7 (b) If a federal statute or court order conflicts with this
74-8 subchapter, the federal law or court order prevails over this
74-9 subchapter.
74-10 SECTION 95. Subsection (a), Section 5.13, State Purchasing
74-11 and General Services Act (Article 601b, Vernon's Texas Civil
74-12 Statutes), is amended to read as follows:
74-13 (a) Except as otherwise provided by this article, this
74-14 article shall apply to all building construction projects as herein
74-15 defined which may be undertaken by the state, with the following
74-16 exceptions:
74-17 (1) all projects constructed by and for the Texas
74-18 <State> Department of <Highways and Public> Transportation;
74-19 (2) all projects constructed by and for state
74-20 institutions of higher education;
74-21 (3) pens, sheds, and ancillary buildings constructed
74-22 by and for the Texas Department of Agriculture for the processing
74-23 of livestock prior to export;
74-24 (4) all projects of repair and rehabilitation, except
74-25 major renovations, of buildings and grounds on the commission
74-26 inventory;
74-27 (5) all projects constructed by the Parks and Wildlife
75-1 Department; <and>
75-2 (6) all projects of repair, rehabilitation, and
75-3 construction on property owned by the Texas Department of Housing
75-4 and Community Affairs or the Texas State Affordable Housing
75-5 Corporation; and
75-6 (7) repair and rehabilitation projects of any other
75-7 using agency, provided all labor for such projects is provided by
75-8 the regular maintenance forces of the using agency under specific
75-9 legislative authorization, and provided further, that such projects
75-10 do not require the advance preparation of working plans and/or
75-11 drawings.
75-12 SECTION 96. Section 6.01, State Purchasing and General
75-13 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
75-14 amended to read as follows:
75-15 Sec. 6.01. DEFINITION. In this article, "space" means
75-16 office space, warehouse space, laboratory space, storage space
75-17 exceeding 1,000 gross square feet, or any combination of that
75-18 space. The term <thereof, but> does not include:
75-19 (1) aircraft hangar space;
75-20 (2) <,> radio antenna space;
75-21 (3) <,> boat storage space;
75-22 (4) <,> vehicle parking space;
75-23 (5) <,> residential space for a Texas Department of
75-24 Mental Health and Mental Retardation program;
75-25 (6) <,> residential space for a Texas Youth Commission
75-26 program;
75-27 (7) residential property acquired by the Texas
76-1 Department of Housing and Community Affairs or the Texas State
76-2 Affordable Housing Corporation with bond proceeds;<,> or
76-3 (8) space to be utilized for less than one month for
76-4 meetings, conferences, seminars, conventions, displays,
76-5 examinations, auctions, or other similar purposes.
76-6 SECTION 97. The following laws are repealed:
76-7 (1) Section 2306.029, Government Code;
76-8 (2) Section 2306.072, Government Code;
76-9 (3) Section 2306.091, Government Code;
76-10 (4) Section 2306.111, Government Code;
76-11 (5) Section 2306.118, Government Code;
76-12 (6) Section 2306.122, Government Code;
76-13 (7) Sections 2306.124, 2306.125, and 2306.126,
76-14 Government Code;
76-15 (8) Subchapters G and H, Chapter 2306, Government
76-16 Code;
76-17 (9) Section 2306.204, Government Code;
76-18 (10) Section 2306.226, Government Code;
76-19 (11) Section 2306.266, Government Code;
76-20 (12) Sections 2306.313 and 2306.314, Government Code;
76-21 (13) Section 2306.375, Government Code; and
76-22 (14) Chapter 34, Human Resources Code.
76-23 SECTION 98. (a) In addition to the changes in law made by
76-24 this Act relating to the operations, powers, and duties of the
76-25 Texas Department of Housing and Community Affairs, this Act
76-26 conforms certain provisions of the Government Code regarding that
76-27 department to changes in law made by Chapter 725, Acts of the 73rd
77-1 Legislature, 1993.
77-2 (b) Chapter 725, Acts of the 73rd Legislature, 1993, is
77-3 repealed.
77-4 (c) To the extent of any conflict, this Act prevails over
77-5 another Act of the 74th Legislature, Regular Session, 1995,
77-6 relating to nonsubstantive additions to and corrections in enacted
77-7 codes.
77-8 SECTION 99. This Act takes effect September 1, 1995.
77-9 SECTION 100. The importance of this legislation and the
77-10 crowded condition of the calendars in both houses create an
77-11 emergency and an imperative public necessity that the
77-12 constitutional rule requiring bills to be read on three several
77-13 days in each house be suspended, and this rule is hereby suspended.