1-1 By: Barrientos S.B. No. 1333
1-2 (In the Senate - Filed March 10, 1995; March 20, 1995, read
1-3 first time and referred to Committee on State Affairs;
1-4 April 28, 1995, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 8, Nays 0; April 28, 1995,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1333 By: Gallegos
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the operations, powers, and duties of the Texas
1-11 Department of Housing and Community Affairs.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 2306.002, Government Code, is amended to
1-14 read as follows:
1-15 Sec. 2306.002. POLICY. (a) The legislature finds that:
1-16 (1) every resident of this state should have a decent,
1-17 safe, and affordable living environment; <and>
1-18 (2) government at all levels should be involved in
1-19 assisting individuals and families of low income in obtaining a
1-20 decent, safe, and affordable living environment; and
1-21 (3) the development and diversification of the
1-22 economy, the elimination of unemployment or underemployment, and
1-23 the development or expansion of commerce in this state should be
1-24 encouraged.
1-25 (b) The highest priority of the department is to provide
1-26 assistance to individuals and families of low and very low income
1-27 who are not adequately assisted by private enterprise or other
1-28 governmental programs so that they may obtain affordable housing or
1-29 other services and programs offered by the department.
1-30 SECTION 2. Section 2306.004, Government Code, is amended to
1-31 read as follows:
1-32 Sec. 2306.004. DEFINITIONS. In this chapter:
1-33 (1) "Board" means the governing board of the
1-34 department.
1-35 (2) "Bond" means an evidence of indebtedness or other
1-36 obligation, regardless of the source of payment, issued by the
1-37 department under Section 2306.351 et seq. <Subchapter P>, including
1-38 a bond, note, or bond or revenue anticipation note, regardless of
1-39 whether the obligation is general or special, negotiable or
1-40 nonnegotiable, in bearer or registered form, in certified or
1-41 book-entry form, in temporary or permanent form, or with or without
1-42 interest coupons.
1-43 (3) "Community action agency":
1-44 (A) means an organization:
1-45 (i) that:
1-46 (a) was officially designated as a
1-47 community action agency or a community action program under Section
1-48 210 of the Economic Opportunity Act of 1964 (42 U.S.C. Section
1-49 2790) for federal fiscal year 1981;
1-50 (b) came into existence during
1-51 federal fiscal year 1982 as a direct successor in interest to such
1-52 a community action agency or community action program; or
1-53 (c) is designated as a community
1-54 action agency by the governor in accordance with applicable federal
1-55 law; and
1-56 (ii) that meets all the requirements of 42
1-57 U.S.C. Section 9904(c)(3) with respect to the composition of the
1-58 board; and
1-59 (B) does not include an entity that lost its
1-60 designation as a community action agency or community action
1-61 program under Section 210 of the Economic Opportunity Act of 1964
1-62 (42 U.S.C. Section 2790) as a result of a failure to comply with
1-63 that Act.
1-64 (4) "Department" means the Texas Department of Housing
1-65 and Community Affairs.
1-66 (5) <(4)> "Director" means the executive director of
1-67 the department.
1-68 (6) <(5)> "Economically depressed or blighted area"
2-1 means an area:
2-2 (A) that has been determined by the department
2-3 <housing finance division> to be a qualified census tract or an
2-4 area of chronic economic distress under Section 103A, Internal
2-5 Revenue Code of 1954 (26 U.S.C. Section 103A); or
2-6 (B) established in a municipality that has a
2-7 substantial number of substandard, slum, deteriorated, or
2-8 deteriorating structures and that suffers from a high relative rate
2-9 of unemployment<; or>
2-10 <(C) that has been designed and included in a
2-11 tax increment district created under Chapter 695, Acts of the 66th
2-12 Legislature, Regular Session, 1979 (Article 1066d, Vernon's Texas
2-13 Civil Statutes)>.
2-14 (7) <(6)> "Elderly individual" means an individual 60
2-15 years of age or older.
2-16 <(7) "Family of moderate income" means a family:>
2-17 <(A) that is determined by the board to require
2-18 assistance, taking into account:>
2-19 <(i) the amount of the total income
2-20 available for housing needs of the individuals and families;>
2-21 <(ii) the size of the family;>
2-22 <(iii) the cost and condition of available
2-23 housing facilities;>
2-24 <(iv) the ability of the individuals and
2-25 families to compete successfully in the private housing market and
2-26 to pay the amounts required by private enterprise for sanitary,
2-27 decent, and safe housing; and>
2-28 <(v) standards established for various
2-29 federal programs determining eligibility based on income; and>
2-30 <(B) that does not qualify as a family of low
2-31 income.>
2-32 (8) "Federal government" means the United States of
2-33 America and includes any corporate or other instrumentality of the
2-34 United States of America, including the Resolution Trust
2-35 Corporation.
2-36 (9) "Federal mortgage" means a mortgage loan for
2-37 residential housing:
2-38 (A) that is made by the federal government; or
2-39 (B) for which a commitment to make has been
2-40 given by the federal government.
2-41 (10) "Federally assisted new communities" means
2-42 federally assisted areas that receive or will receive assistance in
2-43 the form of loan guarantees under Title X of the National Housing
2-44 Act (12 U.S.C. Section 1701 et seq.), and a portion of that
2-45 federally assisted area has received grants under Section 107(a)(1)
2-46 of the Housing and Community Development Act of 1974, as amended
2-47 (42 U.S.C. Section 5301 et seq.).
2-48 (11) "Federally insured mortgage" means a mortgage
2-49 loan for residential housing that:
2-50 (A) is insured or guaranteed by the federal
2-51 government; or
2-52 (B) the federal government has committed to
2-53 insure or guarantee.
2-54 (12) "Housing development" means a development that
2-55 may include:
2-56 (A) property or work or a project, building,
2-57 structure, facility, or undertaking, whether existing, new
2-58 construction, remodeling, improvement, or rehabilitation, that
2-59 meets or is designed to meet minimum property standards required by
2-60 the department and that is financed under the provisions of this
2-61 chapter for the primary purpose of providing sanitary, decent, and
2-62 safe dwelling accommodations for rent, lease, use, or purchase by
2-63 individuals and families of low and very low income and families of
2-64 moderate income in need of housing;
2-65 (B) <. The term includes:>
2-66 <(A)> buildings, structures, land, equipment,
2-67 facilities, or other real or personal properties that are
2-68 necessary, convenient, or desirable appurtenances, including
2-69 streets, water, sewers, utilities, parks, site preparation,
2-70 landscaping, stores, offices, and other nonhousing facilities, such
3-1 as administrative, community, and recreational facilities the
3-2 department determines to be necessary, convenient, or desirable
3-3 appurtenances; or <and>
3-4 (C) <(B)> single and multifamily dwellings in
3-5 rural and urban areas.
3-6 (13) "Housing sponsor" means:
3-7 (A) an individual, including an individual or
3-8 family of low and very low income or family of moderate income, a
3-9 local government, a public housing authority, a community action
3-10 agency, a joint venture, partnership, limited partnership, trust,
3-11 firm, corporation, or a cooperative that is approved by the
3-12 department as qualified to own, construct, acquire, rehabilitate,
3-13 operate, manage, or maintain a housing development, subject to the
3-14 regulatory powers of the department and other terms and conditions
3-15 in this chapter; or
3-16 (B) in an economically depressed or blighted
3-17 area, or in a federally assisted new community located within a
3-18 home-rule municipality, the term may include an individual or
3-19 family whose income exceeds the moderate income level if at least
3-20 90 percent of the total mortgage amount available under a mortgage
3-21 revenue bond issue is designated for individuals and families of
3-22 low income or families of moderate income.
3-23 (14) "Individuals and families of low income" means
3-24 individuals and families earning not more than 80 percent of the
3-25 area median income or applicable federal poverty line, as
3-26 determined under either Section 2306.123 or Section 2306.1231.
3-27 (15) "Individuals and families of very low income"
3-28 means individuals and families earning not more than 60 percent of
3-29 the area median income or applicable federal poverty line, as
3-30 determined under either Section 2306.123 or Section 2306.1231.
3-31 (16) "Land development" means:
3-32 (A) acquiring land for residential housing
3-33 construction; and
3-34 (B) making, installing, or constructing
3-35 nonresidential improvements that the department determines are
3-36 necessary or desirable for a housing development to be financed by
3-37 the department, including:
3-38 (i) waterlines and water supply
3-39 installations;
3-40 (ii) sewer lines and sewage disposal
3-41 installations;
3-42 (iii) steam, gas, and electric lines and
3-43 installations; and
3-44 (iv) roads, streets, curbs, gutters, and
3-45 sidewalks, whether on or off the site.
3-46 (17) "Local government" means a county, municipality,
3-47 special district, or any other political subdivision of the state,
3-48 a public, nonprofit housing finance corporation created under
3-49 Chapter 394, Local Government Code, or a combination of those
3-50 entities.
3-51 (18) "Moderate income" means the income level
3-52 specified by the applicable federal program.
3-53 (19) "Mortgage" means an <interest-bearing>
3-54 obligation, including a mortgage, mortgage deed, bond, note, deed
3-55 of trust, or other instrument, that is a lien:
3-56 (A) on real property; or
3-57 (B) on a leasehold under a lease having a
3-58 remaining term that, at the time the lien is acquired, does not
3-59 expire until after the maturity date of the <interest-bearing>
3-60 obligation secured by the lien.
3-61 (20) <(19)> "Mortgage lender" means a bank, trust
3-62 company, savings bank, mortgage company, mortgage banker, credit
3-63 union, national banking association, savings and loan association,
3-64 life insurance company, or other financial institution authorized
3-65 to transact business in this state and approved as a mortgage
3-66 lender by the department or a local government, public housing
3-67 authority, or nonprofit corporation.
3-68 (21) <(20)> "Mortgage loan" means an
3-69 <interest-bearing> obligation secured by a mortgage.
3-70 (22) <(21)> "Municipality" includes only a
4-1 municipality in this state.
4-2 (23) <(22)> "Public agency" means an agency, board,
4-3 authority, department, commission, political subdivision, municipal
4-4 corporation, district, public corporation, body politic, or
4-5 instrumentality of this state, including a county, municipality,
4-6 housing authority, state-supported institution of higher education,
4-7 school district, junior college, other district or authority, or
4-8 other type of governmental entity of this state.
4-9 (24) <(23)> "Real estate owned contractor" means a
4-10 person required to meet the obligations of a contract with the
4-11 department <housing finance division> for managing and marketing
4-12 foreclosed property.
4-13 (25) <(24)> "Real property" means land, including
4-14 improvements and fixtures on the land, property of any nature
4-15 appurtenant to the land or used in connection with the land, and a
4-16 legal or equitable estate, interest, or right in land, including
4-17 leasehold interests, terms for years, and a judgment, mortgage, or
4-18 other lien.
4-19 (26) <(25)> "Reserve fund" means the <housing finance
4-20 division's> reserve fund of the department's bond-financed
4-21 activities.
4-22 (27) <(26)> "Residential housing" means a specific
4-23 work or improvement undertaken primarily to provide dwelling
4-24 accommodations, including the acquisition, construction,
4-25 reconstruction, remodeling, improvement, or rehabilitation of land
4-26 and buildings and improvements to the buildings for residential
4-27 housing and other incidental or appurtenant nonhousing facilities.
4-28 (28) <(27)> "Servicer" means a person required to meet
4-29 contractual obligations with the department <housing finance
4-30 division> or with a mortgage lender relating to a loan financed
4-31 under Section 2306.221 et seq. <Subchapter J>, including:
4-32 (A) purchasing mortgage certificates backed by
4-33 mortgage loans;
4-34 (B) collecting principal and interest from the
4-35 borrower;
4-36 (C) sending principal and interest payments to
4-37 the department <division>;
4-38 (D) preparing periodic reports;
4-39 (E) notifying the primary mortgage and pool
4-40 insurers of delinquent and foreclosed loans; and
4-41 (F) filing insurance claims on foreclosed
4-42 property.
4-43 SECTION 3. Subsection (b), Section 2306.021, Government
4-44 Code, is amended to read as follows:
4-45 (b) The department is composed of:
4-46 (1) the community affairs division;
4-47 (2) the housing finance division; <and>
4-48 (3) the community development division; and
4-49 (4) any other division created by the director.
4-50 SECTION 4. Section 2306.023, Government Code, is amended to
4-51 read as follows:
4-52 Sec. 2306.023. PERSONAL LIABILITY OF BOARD MEMBER OR
4-53 DIRECTOR <SEPARATION OF DIVISIONS>. A member of the board or the
4-54 director is not liable personally for bonds issued or contracts
4-55 executed by <The duties of the housing finance division shall be
4-56 kept separate from the duties of the community affairs division and
4-57 each other division established in> the department or for any other
4-58 action taken in accordance with the powers and duties authorized by
4-59 this chapter.
4-60 SECTION 5. Section 2306.030, Government Code, is amended by
4-61 adding Subsection (e) to read as follows:
4-62 (e) If neither the presiding officer or assistant presiding
4-63 officer is present or capable of performing the duties of presiding
4-64 officer, a majority of the members present may elect another member
4-65 of the board to perform the duties of presiding officer.
4-66 SECTION 6. Section 2306.032, Government Code, is amended to
4-67 read as follows:
4-68 Sec. 2306.032. BOARD MEETINGS. (a) <The board shall meet
4-69 at least three times annually at the call of the presiding officer
4-70 and other times the board determines are necessary. The time and
5-1 place of the other meetings are to be fixed by a majority vote of
5-2 the board.>
5-3 <(b)> The board may hold <special> meetings when called by
5-4 the presiding officer, the director, or three of the members.
5-5 (b) <(c)> The board shall keep complete minutes of board
5-6 meetings. The accounts, minutes, and other records shall be kept
5-7 at the principal office of the department.
5-8 (c) The board is subject to the open meetings law, Chapter
5-9 551, except that the board is not required to conduct an open
5-10 meeting to discuss proprietary financial matters of a private
5-11 applicant, borrower, or other recipient of funds.
5-12 SECTION 7. Subchapter C, Chapter 2306, Government Code, is
5-13 amended by amending Section 2306.051 and by adding Section
5-14 2306.0515 to read as follows:
5-15 Sec. 2306.051. BOARD DUTIES. (a) The board shall:
5-16 (1) adopt policies and procedures governing the
5-17 administration of the department's programs;
5-18 (2) approve program procedures to govern housing loans
5-19 made by the department under this chapter;
5-20 (3) adopt a target strategy for the percentage of
5-21 mortgage revenue bond proceeds to be made available to individuals
5-22 and families of low and very low income and families of moderate
5-23 income;
5-24 (4) establish eligibility criteria for participation
5-25 in the department's programs for individuals and families of low
5-26 and very low income and families of moderate income; and
5-27 (5) approve the annual low income housing plan.
5-28 (b) All bonds issued by the department must be authorized by
5-29 the board.
5-30 (c) By action of the board, each division shall have a goal
5-31 to apply a minimum of 30 percent of the division's housing-related
5-32 funds toward housing assistance for individuals and families of
5-33 very low income <consult with and advise the director on the
5-34 affairs and problems of local government and the work of the
5-35 department>.
5-36 Sec. 2306.0515. FEES; PENALTIES. (a) The board shall
5-37 establish a schedule of fees and penalties relating to the
5-38 operation of the department's programs, including fees for:
5-39 (1) applications, processing, loan commitments,
5-40 origination, servicing, insurance premiums, mortgage premiums,
5-41 housing developments, facilities and other services, compliance
5-42 costs, and other administrative costs;
5-43 (2) the cost of regulating housing sponsors, including
5-44 the cost of:
5-45 (A) examination;
5-46 (B) inspection;
5-47 (C) supervision; and
5-48 (D) auditing; and
5-49 (3) reimbursement of the department's financing costs.
5-50 (b) The department may assess and collect the fees described
5-51 by this section and use the funds received for the purposes
5-52 specified by this chapter.
5-53 SECTION 8. Subsection (b), Section 2306.052, Government
5-54 Code, is amended to read as follows:
5-55 (b) The director shall:
5-56 (1) administer and organize the work of the department
5-57 consistent with this chapter and with sound organizational
5-58 management that promotes efficient and effective operation;
5-59 (2) appoint and remove <officers and other> personnel
5-60 employed by the department<, subject to the annual budget and any
5-61 resolution authorizing the issuance of bonds under this chapter>;
5-62 (3) submit, through and with the approval of the
5-63 governor and the board, requests for appropriations and other money
5-64 to operate the department;
5-65 (4) administer all money entrusted to the department;
5-66 (5) administer all money and investments of the
5-67 department subject to:
5-68 (A) department indentures and contracts;
5-69 (B) Sections 2306.118-2306.120; and
5-70 (C) an action of the board under Section
6-1 2306.351 <make an annual report to the governor and the legislature
6-2 of the department's operations and provide other reports requested
6-3 by the governor or the legislature>; and
6-4 (6) perform other functions that may be assigned by
6-5 the governor.
6-6 SECTION 9. Section 2306.053, Government Code, is amended to
6-7 read as follows:
6-8 Sec. 2306.053. DEPARTMENT POWERS AND DUTIES. (a) The
6-9 department shall<:>
6-10 <(1)> maintain suitable headquarters and other offices
6-11 in this state that the director determines are necessary<; and>
6-12 <(2) furnish the information, equipment, and staff
6-13 necessary to implement the work of the board>.
6-14 (b) The department may:
6-15 (1) <sue and be sued, or plead and be impleaded;>
6-16 <(2)> act for and on behalf of this state;
6-17 (2) <(3)> adopt an official seal or alter it;
6-18 (3) <(4)> adopt and enforce bylaws and rules;
6-19 (4) <(5)> contract with the federal government, state,
6-20 any public agency, mortgage lender, person, or other entity;
6-21 (5) <(6)> designate mortgage lenders to act for the
6-22 department for the origination, processing, and servicing of the
6-23 department's mortgage loans under conditions agreed to by the
6-24 parties;
6-25 (6) <(7)> provide, contract, or arrange for
6-26 consolidated processing of a housing development to avoid
6-27 duplication;
6-28 (7) <(8)> encourage homeless individuals and
6-29 individuals of low or very low income to attend the department's
6-30 educational programs and assist those individuals in attending the
6-31 programs;
6-32 (8) <(9)> appoint and determine the qualifications,
6-33 duties, and tenure of its agents, counselors, and professional
6-34 advisors, including accountants, appraisers, architects, engineers,
6-35 financial consultants, housing construction and financing experts,
6-36 and real estate consultants;
6-37 (9) administer federal or state housing, community
6-38 affairs, or community development programs, including the low
6-39 income housing tax credit program; <and>
6-40 (10) establish eligibility criteria for individuals
6-41 and families of low and very low income and families of moderate
6-42 income to participate in and benefit from programs administered by
6-43 the department;
6-44 (11) adopt underwriting standards for loans made or
6-45 financed by the department;
6-46 (12) adopt minimum property standards for housing
6-47 developments financed or acquired under this chapter;
6-48 (13) compile a list of approved mortgage lenders;
6-49 (14) obtain, retain, and disseminate its records and
6-50 other documents in electronic form; and
6-51 (15) do all things necessary, convenient, or desirable
6-52 to carry out the powers expressly granted or necessarily implied by
6-53 this chapter.
6-54 (c) The department is subject to the open records law,
6-55 Chapter 552, except that the proprietary financial records of a
6-56 private applicant, borrower, or other recipient of funds are not a
6-57 public record.
6-58 SECTION 10. Section 2306.094, Government Code, is amended
6-59 and redesignated as Section 2306.054, Subchapter C, Chapter 2306,
6-60 Government Code, to read as follows:
6-61 Sec. 2306.054 <2306.094>. SPECIAL ADVISORY COUNCILS.
6-62 (a) The governor or director may<, with the advice of the
6-63 director,> appoint special advisory councils to:
6-64 (1) assist the department <board> in adopting basic
6-65 policy <for the community affairs division>; or
6-66 (2) offer advice on technical aspects of certain
6-67 programs <that the community affairs division administers>.
6-68 (b) A special advisory council is dissolved on completion of
6-69 its stated purpose unless continued by the governor or director.
6-70 SECTION 11. Section 2306.095, Government Code, is amended
7-1 and redesignated as Section 2306.055, Subchapter C, Chapter 2306,
7-2 Government Code, to read as follows:
7-3 Sec. 2306.055 <2306.095>. TRANSFERS FROM GOVERNOR. The
7-4 governor may transfer to any <the community affairs> division
7-5 personnel, equipment, records, obligations, appropriations,
7-6 functions, and duties of appropriate divisions of the governor's
7-7 office.
7-8 SECTION 12. Subchapter C, Chapter 2306, Government Code, is
7-9 amended by adding Section 2306.056 to read as follows:
7-10 Sec. 2306.056. COMMITTEES. (a) The presiding officer may
7-11 appoint a committee composed of board members to carry out the
7-12 board's duties.
7-13 (b) The board may consider a recommendation of a committee
7-14 in making a decision under this chapter.
7-15 (c) A committee established under this section is subject to
7-16 Chapters 551 and 552.
7-17 SECTION 13. Subchapter C, Chapter 2306, Government Code, is
7-18 amended by adding Sections 2306.057 and 2306.058 to read as
7-19 follows:
7-20 Sec. 2306.057. GENERAL DUTIES OF DEPARTMENT. The department
7-21 shall:
7-22 (1) develop policies and programs designed to increase
7-23 the number of individuals and families of low and very low income
7-24 and families of moderate income that participate in its programs;
7-25 (2) work with local governments, public agencies,
7-26 housing sponsors, and nonprofit corporations to provide:
7-27 (A) information on department programs; and
7-28 (B) technical assistance to local governments,
7-29 public agencies, and nonprofit corporations;
7-30 (3) encourage private and nonprofit corporations and
7-31 state organizations to match the department's funds to assist in
7-32 providing affordable housing to individuals and families of low and
7-33 very low income and families of moderate income;
7-34 (4) provide matching funds, as available, to local
7-35 governments, public agencies, housing sponsors, and nonprofit
7-36 developers who qualify under the department's programs;
7-37 (5) administer the state's allocation of federal funds
7-38 provided under:
7-39 (A) the rental rehabilitation grant program
7-40 authorized by Section 17, Title I, United States Housing Act of
7-41 1937 (42 U.S.C. Section 1437o);
7-42 (B) the Cranston-Gonzalez National Affordable
7-43 Housing Act (42 U.S.C. Section 12704 et seq.); and
7-44 (C) any other federally established affordable
7-45 housing program; and
7-46 (6) administer the state's allocation of federal tax
7-47 credits provided under the low-income housing tax credit program,
7-48 under the requirements prescribed by Section 42, Internal Revenue
7-49 Code of 1986 (26 U.S.C. Section 42), and this chapter, including:
7-50 (A) adopting a qualified allocation plan for
7-51 each year not later than September 30 of the preceding year;
7-52 (B) adopting all rules governing an application
7-53 cycle or application cycles, including selection criteria, for any
7-54 given year not later than October 31 of the preceding year; and
7-55 (C) requiring that applications for a given
7-56 year's tax credits be received not later than February 1 of that
7-57 year, and awarding the credits not later than April 15 of that
7-58 year.
7-59 Sec. 2306.058. PAYMENT OF DEPARTMENT OBLIGATIONS AND
7-60 EXPENSES. The department shall use available sources of revenue,
7-61 income, and receipts to:
7-62 (1) pay all expenses of the department's operation and
7-63 maintenance;
7-64 (2) pay the principal and interest on department
7-65 bonds; and
7-66 (3) create and maintain the reserves or funds provided
7-67 by each resolution authorizing the issuance of department bonds.
7-68 SECTION 14. Section 2306.065, Government Code, is amended to
7-69 read as follows:
7-70 Sec. 2306.065. DISCRIMINATION PROHIBITED. An individual may
8-1 not, because of that individual's race, color, national origin,
8-2 age, religion, disability, or sex, be excluded from participation,
8-3 be denied benefits, or be subjected to discrimination in any
8-4 program or activity funded in whole or in part with funds made
8-5 available under this chapter.
8-6 SECTION 15. Subsection (a), Section 2306.067, Government
8-7 Code, is amended to read as follows:
8-8 (a) The director may enter into <reciprocal> agreements with
8-9 a state agency or instrumentality or local government to loan or
8-10 assign department employees to that entity.
8-11 SECTION 16. Section 2306.069, Government Code, is amended to
8-12 read as follows:
8-13 Sec. 2306.069. <OUTSIDE> LEGAL COUNSEL. (a) The department
8-14 shall obtain and evaluate information regarding the affirmative
8-15 action policies and practices of proposed outside legal counsel.
8-16 The department must include the evaluation in a request to the
8-17 attorney general for outside legal counsel.
8-18 (b) The department may hire in-house legal counsel. The
8-19 director shall prescribe the duties of the legal counsel.
8-20 SECTION 17. Section 2306.070, Government Code, is amended to
8-21 read as follows:
8-22 Sec. 2306.070. LEGISLATIVE APPROPRIATIONS REQUEST <BUDGET>.
8-23 In preparing the department's legislative appropriations request,
8-24 the department shall include, for informational purposes, the
8-25 operating funds for the department's bond-financed activities <also
8-26 prepare an operating budget for the housing finance division. The
8-27 department shall submit the operating budget to the Legislative
8-28 Budget Board, the Senate Finance Committee, and the House
8-29 Appropriations Committee>.
8-30 SECTION 18. Subchapter D, Chapter 2306, Government Code, is
8-31 amended by adding Section 2306.0705 to read as follows:
8-32 Sec. 2306.0705. GENERAL APPROPRIATIONS ACT. (a) Except as
8-33 specifically provided by this chapter, the department is subject to
8-34 the General Appropriations Act.
8-35 (b) The proceeds from bonds issued by the department and
8-36 enterprise funds are not subject to the General Appropriations Act.
8-37 (c) In this section, "enterprise funds" means funds used to
8-38 account for housing-related operations that are financed and
8-39 operated in a manner similar to a private business enterprise and
8-40 in which the costs of providing services on a continuing basis are
8-41 financed or recovered primarily through user charges.
8-42 SECTION 19. Section 2306.071, Government Code, is amended to
8-43 read as follows:
8-44 Sec. 2306.071. FUNDS; LOCAL DEPOSITORY FUND. (a) The
8-45 department may request, contract for, receive, and spend for its
8-46 purposes an appropriation, grant, loan, allocation, subsidy, rent
8-47 supplement, guarantee, aid, contribution, gift, service, labor, or
8-48 material from this state, the federal government, or another public
8-49 or private source.
8-50 (b) The funds and revenues of the department's bond-financed
8-51 activities <housing finance division> shall be kept separate from
8-52 the department's other funds and revenues <of the other divisions>,
8-53 and the department <other divisions> may <not> use funds and
8-54 revenues of the department's bond-financed activities only to
8-55 administer housing-related programs <housing finance division for
8-56 any purpose>.
8-57 (c) Except for legislative appropriations, funds necessary
8-58 for the operation of the department's bond-financed activities, and
8-59 trustee-held funds of the department under a multifamily bond
8-60 indenture <which shall be kept in the state treasury>, all funds
8-61 and revenue of the department's bond-financed activities received
8-62 by the department <housing finance division> are to be kept outside
8-63 the state treasury.
8-64 (d) Legislative appropriations shall be kept in the state
8-65 treasury. Trustee-held funds of the department under a multifamily
8-66 bond indenture are held by the trustee as provided by the
8-67 indenture. Operating funds for bond-financed activities shall be
8-68 kept in the Texas housing local depository fund created under
8-69 Subsection (e). The operating funds may be transmitted to payee
8-70 accounts in financial institutions by electronic means or for
9-1 processing of state warrants. Unexpended operating funds shall be
9-2 reimbursed to the Texas housing local depository fund at the end of
9-3 each fiscal year.
9-4 (e) The Texas housing local depository fund is created as a
9-5 special fund in the state treasury. Interest earned on the fund
9-6 shall be credited to and retained by the fund for the benefit of
9-7 the fund. The fund is not subject to Section 403.094 or 403.095.
9-8 (f) All other revenue and funds of the department received
9-9 or payable through the bond-related programs and functions of the
9-10 department shall be deposited outside the state treasury with
9-11 either the Texas Treasury Safekeeping Trust Company or with any
9-12 other depository selected by the department in accordance with
9-13 Section 2306.119.
9-14 SECTION 20. Subchapter D, Government Code, is amended by
9-15 adding Sections 2306.0721, 2306.0722, and 2306.0723 to read as
9-16 follows:
9-17 Sec. 2306.0721. LOW INCOME HOUSING PLAN. (a) Not later
9-18 than April 1 of each year, the director shall prepare and submit to
9-19 the board an integrated state low income housing plan for the next
9-20 year.
9-21 (b) Not later than the 30th day after the date the board
9-22 receives the plan, the board shall submit the plan to the governor
9-23 and legislature.
9-24 (c) The plan shall serve as the basis for the development of
9-25 any housing strategy to be implemented by the department and must
9-26 include:
9-27 (1) an estimate and analysis of the housing needs of
9-28 the following populations in the state:
9-29 (A) individuals and families of low and very low
9-30 income and families of moderate income;
9-31 (B) individuals and families with special needs;
9-32 (C) homeless individuals and families;
9-33 (D) individuals with disabilities;
9-34 (E) migrant farm workers;
9-35 (F) elderly individuals; and
9-36 (G) individuals living in colonias;
9-37 (2) a proposal to track all available housing
9-38 resources to address the housing needs of the populations described
9-39 by Subdivision (1) by reporting funding levels for all
9-40 housing-related programs;
9-41 (3) an estimate of the number of federally assisted
9-42 housing units available for individuals and families of low and
9-43 very low income and individuals with special needs in each uniform
9-44 state service region in the state;
9-45 (4) a description of state programs that govern the
9-46 use of all available housing resources;
9-47 (5) a resource allocation plan that targets all
9-48 available housing resources to individuals and families of low and
9-49 very low income, families of moderate income, individuals and
9-50 families with special needs, and homeless individuals and families;
9-51 (6) a description of the unused or underused federal
9-52 resources of other state agencies for housing-related services and
9-53 services for homeless individuals and the department's
9-54 recommendations to ensure the full use by the state of all
9-55 available federal resources for those services;
9-56 (7) strategies to provide housing for individuals and
9-57 families with special needs and homeless individuals and families;
9-58 (8) a comprehensive statement of the activities of the
9-59 department during the preceding fiscal year to address the needs
9-60 identified in the plan, including:
9-61 (A) a statistical and narrative analysis of the
9-62 department's performance in addressing the housing needs of
9-63 individuals and families of low and very low income and families of
9-64 moderate income;
9-65 (B) the ethnic or racial composition of
9-66 individuals and families applying for and receiving assistance from
9-67 each housing program administered by the department; and
9-68 (C) the department's progress in meeting the
9-69 goals established in the previous housing plan;
9-70 (9) an explanation of the efforts made by the
10-1 department to ensure the participation of individuals of low income
10-2 and their community-based institutions in department programs that
10-3 affect them;
10-4 (10) an explanation of the efforts that the department
10-5 has made to ensure that individuals of low income and their
10-6 community-based institutions are involved in the allocation of
10-7 funds and the planning process;
10-8 (11) a statistical analysis, delineated according to
10-9 each ethnic and racial group served by the department, that
10-10 indicates the progress made by the department in implementing the
10-11 state low income housing plan in each of the uniform state service
10-12 regions;
10-13 (12) a statistical analysis of each housing
10-14 development that receives financial assistance from the department
10-15 that includes the following information for each housing
10-16 development that contains 20 or more living units:
10-17 (A) the street address and municipality or
10-18 county in which the property is located;
10-19 (B) the total number of units reported by
10-20 bedroom size;
10-21 (C) the total number of units designed for
10-22 individuals who are physically disabled or who have special needs
10-23 and the number of these individuals served annually as reported by
10-24 each housing sponsor;
10-25 (D) average rents reported by region, as defined
10-26 in the comprehensive housing affordability strategy;
10-27 (E) the race or ethnic makeup of each project as
10-28 reported annually by each housing sponsor;
10-29 (F) the number of units occupied by individuals
10-30 receiving government-supported housing assistance as reported by
10-31 each housing sponsor;
10-32 (G) a statement as to whether the department has
10-33 been notified of a violation of the fair housing law that has been
10-34 filed with the United States Department of Housing and Urban
10-35 Development, the Commission on Human Rights, or the United States
10-36 Department of Justice;
10-37 (H) a statement as to whether the development
10-38 has any instances of material noncompliance with bond indentures or
10-39 financing agreements discovered through the normal monitoring
10-40 activities and procedures that include meeting occupancy
10-41 requirements or rent restrictions imposed by financing agreements;
10-42 and
10-43 (I) a statement as to whether the housing
10-44 development owner has an affirmative marketing program in place
10-45 that is effective in promoting fair housing;
10-46 (13) a description of the activities of the department
10-47 to increase the capacity of nonprofit organizations in this state
10-48 to provide housing; and
10-49 (14) a description of the activities of the department
10-50 to ensure that housing developments funded by the department
10-51 affirmatively further fair housing.
10-52 Sec. 2306.0722. PREPARATION OF PLAN. In preparing the state
10-53 low income housing plan under Section 2306.0721, the director
10-54 shall:
10-55 (1) coordinate the department's housing resources,
10-56 including tax exempt housing bond financing and low income housing
10-57 tax credits;
10-58 (2) in allocating the department's available housing
10-59 resources, give priority to helping the neediest individuals;
10-60 (3) ensure that the department's housing programs
10-61 benefit an individual without regard to the individual's race,
10-62 ethnicity, sex, or national origin;
10-63 (4) develop housing opportunities for individuals and
10-64 families of low and very low income, families of moderate income,
10-65 and individuals with special housing needs;
10-66 (5) develop housing programs through an open, fair,
10-67 and public process;
10-68 (6) set priorities for assistance in a manner that is
10-69 appropriate and consistent with the housing needs of the
10-70 populations described by Section 2306.0721(c)(1); and
11-1 (7) incorporate recommendations that are consistent
11-2 with the comprehensive housing affordability strategy, or its
11-3 successor, submitted annually by the state to the United States
11-4 Department of Housing and Urban Development.
11-5 Sec. 2306.0723. PUBLIC HEARINGS. (a) The department shall
11-6 hold a public hearing on the state low income housing plan before
11-7 the director submits the plan to the board.
11-8 (b) The board shall hold a public hearing on the state low
11-9 income housing plan before the board submits the plan to the
11-10 governor and legislature.
11-11 (c) The board shall include with the plan the board submits
11-12 to the governor and legislature a written report of public comments
11-13 on the plan.
11-14 SECTION 21. Subsection (a), Section 2306.073, Government
11-15 Code, is amended to read as follows:
11-16 (a) The director, with the approval of the board, shall
11-17 appoint an internal auditor who reports directly to the board and
11-18 serves at the pleasure of the board <on matters concerning housing
11-19 finance, the community affairs division, or any other division>.
11-20 SECTION 22. Section 2306.074, Government Code, is amended by
11-21 amending Subsection (a) and by adding Subsection (c) to read as
11-22 follows:
11-23 (a) The state auditor or a certified public accountant shall
11-24 audit the department's books and accounts each fiscal year and file
11-25 a copy of the audit with the governor and the legislature on or
11-26 before March <January> 1 of each year. If the state auditor is
11-27 conducting the audit and it is not available by March <January> 1,
11-28 it must be filed as soon as it is available.
11-29 (c) An independent auditor annually shall conduct an audit
11-30 of the department's bond-related activities to determine the amount
11-31 of unencumbered fund balances that is greater than the amount
11-32 required for the reserve fund. The independent auditor shall
11-33 submit the report to the board not later than December 31 of each
11-34 year.
11-35 SECTION 23. Section 2306.075, Government Code, is amended to
11-36 read as follows:
11-37 Sec. 2306.075. TAX EXEMPTION; OTHER PAYMENTS. (a) The
11-38 property of the department, its income, and its operations are
11-39 exempt from all taxes and assessments imposed by this state and all
11-40 public agencies on property acquired or used by the department
11-41 under this chapter.
11-42 (b) The department may, under its terms, conditions, and
11-43 procedures, pay public agencies in lieu of ad valorem taxes on
11-44 property that the department acquires through foreclosure or sale
11-45 under a deed of trust.
11-46 (c) The department shall make payments under this section
11-47 instead of paying taxes whenever practicable with money lawfully
11-48 available for this purpose, subject to the provisions of any bond
11-49 resolution.
11-50 SECTION 24. Subchapter D, Chapter 2306, Government Code, is
11-51 amended by adding Sections 2306.076, 2306.077, 2306.078, and
11-52 2306.089 to read as follows:
11-53 Sec. 2306.076. INSURANCE. (a) The board may purchase from
11-54 department funds liability insurance for the director and employees
11-55 and board members and officers.
11-56 (b) The board may purchase the insurance in an amount the
11-57 board considers reasonably necessary to:
11-58 (1) insure against reasonably foreseeable liabilities;
11-59 and
11-60 (2) provide for all costs of defending against those
11-61 liabilities, including court costs and attorney's fees.
11-62 (c) The department may obtain insurance coverage of any
11-63 kind, and pay premiums for that coverage, in amounts and from
11-64 insurers as the department considers necessary or advisable.
11-65 Sec. 2306.077. ACQUISITION AND USE OF MONEY; DEPOSITORIES.
11-66 The department may:
11-67 (1) acquire, hold, invest, deposit, use, and spend its
11-68 income and revenue, from whatever source; and
11-69 (2) select its depository or depositories, subject
11-70 only to the provisions of:
12-1 (A) this chapter; and
12-2 (B) a covenant relating to the department's
12-3 bonds.
12-4 Sec. 2306.078. INVESTMENTS. Subject to a resolution
12-5 authorizing issuance of department bonds, the department may:
12-6 (1) invest department money in bonds, obligations,
12-7 uncollateralized guaranteed investment agreements, or other
12-8 securities; or
12-9 (2) place department money in demand or time deposits,
12-10 whether or not evidenced by certificates of deposit.
12-11 Sec. 2306.079. HEARINGS. The department may:
12-12 (1) conduct hearings; and
12-13 (2) take testimony and proof, under oath, at public
12-14 hearings, on matters necessary to carry out the department's
12-15 purposes.
12-16 Sec. 2306.080. INVESTIGATIONS. The department may:
12-17 (1) investigate housing conditions and the means for
12-18 improving those conditions; and
12-19 (2) determine the location of slum or blighted areas.
12-20 Sec. 2306.081. ENCOURAGING HOME OWNERSHIP. The department
12-21 may encourage individual or cooperative home ownership among
12-22 individuals and families of low and very low income and families of
12-23 moderate income.
12-24 Sec. 2306.082. TARGETING BOND PROCEEDS. The department may
12-25 target the proceeds from housing bonds issued by the department to:
12-26 (1) a geographic area or areas of the state;
12-27 (2) areas of special need; or
12-28 (3) subgroups of this state's population according to
12-29 income.
12-30 Sec. 2306.083. LOANS TO LENDERS. The department may make
12-31 loans to mortgage lenders, public agencies, or other housing
12-32 sponsors and use the proceeds to make loans for multifamily housing
12-33 developments to be substantially occupied by individuals and
12-34 families of low and very low income or families of moderate income.
12-35 Sec. 2306.084. NEEDS OF QUALIFYING INDIVIDUALS AND FAMILIES
12-36 IN RURAL AREAS AND SMALL MUNICIPALITIES. The department may adopt
12-37 a target strategy to ensure that the credit and housing needs of
12-38 qualifying individuals and families who reside in rural areas and
12-39 small municipalities are equitably served by the department.
12-40 Sec. 2306.085. ACQUISITION AND DISPOSITION OF REAL ESTATE
12-41 OWNED PROPERTY. In performing duties and exercising powers under
12-42 this chapter, the department may:
12-43 (1) acquire, own, rent, lease, accept, hold, or
12-44 dispose of any real, personal, or mixed property, or any interest
12-45 in property, including a right or easement, by purchase, exchange,
12-46 gift, assignment, transfer, foreclosure, sale, lease, or otherwise;
12-47 (2) hold, manage, operate, or improve real, personal,
12-48 or mixed property; or
12-49 (3) lease or rent land or a dwelling, house,
12-50 accommodation, building, structure, or facility from a private
12-51 entity.
12-52 Sec. 2306.086. TRANSFER AND DISPOSITION OF PROPERTY; MANNER
12-53 OF SALE. (a) The department may:
12-54 (1) sell, assign, lease, encumber, mortgage, or
12-55 otherwise dispose of real, personal, or mixed property, an interest
12-56 in property, or a deed of trust or mortgage lien interest owned by
12-57 the department or under its control, custody, or possession; and
12-58 (2) release or relinquish a right, title, claim, lien,
12-59 interest, easement, or demand acquired in any manner, including an
12-60 equity or right of redemption in property foreclosed by the
12-61 department.
12-62 (b) Notwithstanding any other law, the department may
12-63 conduct a public or private sale, with or without public bidding,
12-64 to implement its powers under this section.
12-65 Sec. 2306.087. POLICIES REGARDING HOUSING DEVELOPMENTS. The
12-66 department may adopt and publish policies and procedures regarding:
12-67 (1) the making of mortgage loans under this chapter;
12-68 (2) the regulation of borrowers;
12-69 (3) the construction of ancillary commercial
12-70 facilities; and
13-1 (4) resale and disposition of real property, or an
13-2 interest in the property, that is financed by the department.
13-3 Sec. 2306.088. COURT ACTIONS. (a) The department may
13-4 institute a court action under this chapter against a housing
13-5 sponsor who receives assistance or owns a housing development to:
13-6 (1) enforce this chapter;
13-7 (2) enforce the terms and provisions of an agreement
13-8 or contract between the department and the recipient of assistance
13-9 under this chapter, including provisions regarding rental or
13-10 carrying charges and income limits as applied to tenants or
13-11 occupants;
13-12 (3) foreclose its mortgage; or
13-13 (4) protect:
13-14 (A) the public interest;
13-15 (B) individuals and families of low and very low
13-16 income or families of moderate income;
13-17 (C) stockholders; or
13-18 (D) creditors of the housing sponsor.
13-19 (b) In a proceeding under this section, the department may
13-20 apply for the appointment of a trustee or receiver to assume the
13-21 management and operation of the affairs of a housing sponsor.
13-22 (c) The department, through its designated agent, may accept
13-23 appointment as trustee or receiver of a housing sponsor when
13-24 appointed by a court of competent jurisdiction.
13-25 Sec. 2306.089. INTEREST RATES. (a) The department shall
13-26 set the interest rates at which the department makes loans and loan
13-27 commitments.
13-28 (b) The interest rates shall be set to produce, when
13-29 combined with other available funds, at least the amounts required
13-30 to pay for the costs of operation of the department's bond-financed
13-31 activities and to meet its covenants with and responsibilities to
13-32 the holders of its bonds.
13-33 SECTION 25. The heading of Subchapter E, Chapter 2306,
13-34 Government Code, is amended to read as follows:
13-35 SUBCHAPTER E. COMMUNITY AFFAIRS AND COMMUNITY
13-36 DEVELOPMENT PROGRAMS <DIVISION>
13-37 SECTION 26. Section 2306.092, Government Code, is amended to
13-38 read as follows:
13-39 Sec. 2306.092. DUTIES. The department, through the
13-40 community affairs division or any other division, shall:
13-41 (1) maintain communication with local governments and
13-42 act as an advocate for local governments at the state and federal
13-43 levels;
13-44 (2) assist local governments with advisory and
13-45 technical services;
13-46 (3) provide financial aid to local governments and
13-47 combinations of local governments for programs that are authorized
13-48 to receive assistance;
13-49 (4) provide information about and referrals for state
13-50 and federal programs and services that affect local governments;
13-51 (5) administer, conduct, or jointly sponsor
13-52 educational and training programs for local government officials;
13-53 (6) conduct research on problems of general concern to
13-54 local governments;
13-55 (7) collect, publish, and distribute information
13-56 useful to local governments, including information on:
13-57 (A) local government finances and employment;
13-58 (B) housing;
13-59 (C) population characteristics; and
13-60 (D) land-use patterns;
13-61 (8) encourage cooperation among local governments as
13-62 appropriate;
13-63 (9) advise and inform the governor and the legislature
13-64 about the affairs of local governments and recommend necessary
13-65 action;
13-66 (10) assist the governor in coordinating federal and
13-67 state activities affecting local governments;
13-68 (11) administer, as appropriate:
13-69 (A) state responsibilities for programs created
13-70 under the federal Economic Opportunity Act of 1964 (42 U.S.C.
14-1 Section 2701 et seq.);
14-2 (B) programs assigned to the department under
14-3 the Omnibus Budget Reconciliation Act of 1981 (Pub.L. No. 97-35);
14-4 and
14-5 (C) other federal acts creating economic
14-6 opportunity programs assigned to the department;
14-7 (12) adopt rules that are necessary and proper to
14-8 carry out programs and responsibilities assigned by the legislature
14-9 or the governor; and
14-10 (13) perform other duties relating to local government
14-11 that are assigned by the legislature or the governor.
14-12 SECTION 27. Section 2306.096, Government Code, is amended to
14-13 read as follows:
14-14 Sec. 2306.096. SERVICES FOR HOMELESS <MULTIPURPOSE HUMAN
14-15 RESOURCE CENTERS>. The department shall administer the state's
14-16 allocation of federal funds provided under the Emergency Shelter
14-17 Grants Program (42 U.S.C. Section 11371 et seq.) or its successor
14-18 program, and any other federal funds provided for the benefit of
14-19 homeless individuals and families. <(a) To provide the most
14-20 effective and efficient delivery of human resource services to
14-21 individuals and families of low income, as well as the total
14-22 population, the department, through the community affairs division,
14-23 may establish multipurpose human resource centers in various
14-24 communities.>
14-25 <(b) The department, through the community affairs division,
14-26 may:>
14-27 <(1) locate and lease with state funds suitable office
14-28 space at the community level that is easily accessible to clients
14-29 of human resource service delivery agencies; and>
14-30 <(2) make the space available to those agencies.>
14-31 <(c) A state or local government agency or a private,
14-32 nonprofit human resource agency that has filed with the state a
14-33 state or regional plan for delivery of human resource services is
14-34 eligible to place staff in a community multipurpose human resource
14-35 service center.>
14-36 <(d) The department shall report annually to the governor
14-37 and the legislature the agencies that are and are not placing human
14-38 resource delivery staff in available community multipurpose human
14-39 resource service centers.>
14-40 <(e) The Community Multipurpose Human Resource Service
14-41 Center Fund is in the state treasury. The fund shall be used to
14-42 provide:>
14-43 <(1) the state's share of the rental costs for
14-44 community multipurpose human resource service centers; and>
14-45 <(2) the administrative costs of the centers'
14-46 operation.>
14-47 SECTION 28. Section 2306.097, Government Code, is amended to
14-48 read as follows:
14-49 Sec. 2306.097. ENERGY SERVICES PROGRAM FOR LOW-INCOME
14-50 INDIVIDUALS. (a) <The Energy Services Program for Low-Income
14-51 Individuals is in the community affairs division.>
14-52 <(b)> The program shall operate in conjunction with the
14-53 community services <service> block grant program and has
14-54 jurisdiction and responsibility for administration of the following
14-55 elements of the State Low-Income Energy Assistance Program, from
14-56 whatever sources funded:
14-57 (1) the Energy Crisis Intervention Program; <and>
14-58 (2) the weatherization program; and
14-59 (3) the Low-Income Home Energy Assistance Program.
14-60 (b) The energy services program for low-income individuals
14-61 may facilitate the development and implementation of partnerships,
14-62 agreements, or other arrangements with energy providers,
14-63 nongovernmental sector interests, and regulatory entities under
14-64 which nonfederal financial assistance may be made available to
14-65 support energy-related services for low-income energy consumers.
14-66 SECTION 29. Subsection (a), Section 2306.098, Government
14-67 Code, is amended to read as follows:
14-68 (a) The department<, through the community affairs
14-69 division,> shall, under the Omnibus Budget Reconciliation Act of
14-70 1981 (Pub.L. No. 97-35) and 24 CFR, Part 570, Subpart I, administer
15-1 the state's allocation of federal funds provided under the
15-2 community development block grant nonentitlement program authorized
15-3 by Title I of the Housing and Community Development Act of 1974 (42
15-4 U.S.C. Section 5301 et seq.).
15-5 SECTION 30. Section 2306.099, Government Code, is amended to
15-6 read as follows:
15-7 Sec. 2306.099. ECONOMIC DEVELOPMENT ACTIVITIES <TRANSFER OF
15-8 FEDERAL FUNDS>. (a) The department may enter into an interagency
15-9 agreement with the Texas Department of Commerce to reimburse the
15-10 Texas Department of Commerce for providing on behalf of the
15-11 department marketing, underwriting, and other services from the
15-12 portion of the federal funds allocated by the department for
15-13 economic development activities.
15-14 (b) The department shall allocate <transfer> not more than
15-15 20 percent of the federal community development block grant funds
15-16 received by the department <to the Texas Department of Commerce to
15-17 be used> for economic development activities.
15-18 (c) The activities by <(b) Federal funds transferred under
15-19 this section include the amount of federal funds designated for
15-20 administrative expenses under federal law.>
15-21 <(c) Income received from economic development programs of
15-22 the Texas Department of Commerce remain with that agency.>
15-23 <(d) Use of funds transferred under this section must be
15-24 approved by the department.>
15-25 <(e) A rule of> the Texas Department of Commerce <relating
15-26 to funds transferred> under this section must be approved by the
15-27 department.
15-28 <(f) The Texas Department of Commerce shall return to the
15-29 department under an interagency agreement federal funds transferred
15-30 under this section that are not used in a timely manner under
15-31 federal guidelines.>
15-32 SECTION 31. The heading of Subchapter F, Chapter 2306,
15-33 Government Code, is amended to read as follows:
15-34 SUBCHAPTER F. BUDGET; FUNDS <HOUSING FINANCE DIVISION:
15-35 GENERAL PROVISIONS>
15-36 SECTION 32. Subsections (a) and (b), Section 2306.112,
15-37 Government Code, are amended to read as follows:
15-38 (a) On or before August 1 of each year, the director shall
15-39 file with the board a proposed annual budget for the department
15-40 <housing finance division> for the succeeding fiscal year.
15-41 (b) The budget shall state:
15-42 (1) the general categories of expected expenditures
15-43 from revenues and income of the department <housing finance
15-44 division>;
15-45 (2) the amount of expected expenditures for each
15-46 category;
15-47 (3) expected operating expenses of the department
15-48 <housing finance division>; and
15-49 (4) the proposed use of projected year-end
15-50 unencumbered balances.
15-51 SECTION 33. Section 2306.113, Government Code, is amended to
15-52 read as follows:
15-53 Sec. 2306.113. BOARD CONSIDERATION OF ANNUAL BUDGET. On or
15-54 before September 1 of each year, the board shall consider the
15-55 director's proposed annual budget for the department <housing
15-56 finance division> and shall approve or change the budget as the
15-57 board determines necessary or advisable.
15-58 SECTION 34. Subsection (a), Section 2306.114, Government
15-59 Code, is amended to read as follows:
15-60 (a) Copies of the annual budget certified by the presiding
15-61 officer of the board shall be filed promptly with the governor <and
15-62 the legislature>.
15-63 SECTION 35. Subsection (b), Section 2306.116, Government
15-64 Code, is amended to read as follows:
15-65 (b) An amended annual budget does not supersede a prior
15-66 budget until it is filed with the governor <and the legislature>.
15-67 SECTION 36. Section 2306.117, Government Code, is amended to
15-68 read as follows:
15-69 Sec. 2306.117. PAYMENT OF EXPENSES; INDEBTEDNESS. (a) The
15-70 expenses incurred in carrying out the functions of the department
16-1 relating to bond-financed activities <housing finance division> may
16-2 be paid only from revenues or funds provided under this chapter.
16-3 (b) This chapter does not authorize the department <housing
16-4 finance division> to incur debt or liability on behalf of or
16-5 payable by the state, except as provided by this chapter or other
16-6 law.
16-7 SECTION 37. Subsections (a), (b), (d), and (e), Section
16-8 2306.119, Government Code, are amended to read as follows:
16-9 (a) The department shall choose a depository for the
16-10 <operating> funds described by Section 2306.071(f) <of the housing
16-11 finance division> after inviting bids for favorable interest rates.
16-12 (b) The department <housing finance division> shall publish
16-13 notice in at least one newspaper of general circulation in this
16-14 state no later than the 14th day before the last day set for the
16-15 receipt of the bids.
16-16 (d) Sealed bids must be:
16-17 (1) identified on the envelope as bids; and
16-18 (2) submitted to the department <housing finance
16-19 division> before the deadline for receiving bids.
16-20 (e) The department <housing finance division> shall provide
16-21 a tabulation of all submitted bids for public inspection.
16-22 SECTION 38. Section 2306.120, Government Code, is amended to
16-23 read as follows:
16-24 Sec. 2306.120. SELECTION OF DEPOSITORY UNDER COVENANTS OF
16-25 BONDS OR TRUST INDENTURES. <(a)> If covenants related to the
16-26 department's bonds or the trust indentures governing the bonds
16-27 specify one or more depositories or set out a method of selecting
16-28 depositories different from the method required by this subchapter,
16-29 the covenants prevail regarding the funds to which they apply <and
16-30 the funds are not required to be deposited with the Texas Treasury
16-31 Safekeeping Trust Company>.
16-32 <(b) Bonds of the housing finance division issued under
16-33 trust indentures executed or resolutions adopted on or after
16-34 September 1, 1991, may not include a covenant that interferes with
16-35 the deposit of funds in the Texas Treasury Safekeeping Trust
16-36 Company.>
16-37 SECTION 39. Section 2306.121, Government Code, is amended to
16-38 read as follows:
16-39 Sec. 2306.121. RECORDS. The department <housing finance
16-40 division> shall keep complete records and accounts of its business
16-41 transactions relating to the bond-financed activities of the
16-42 department according to generally accepted accounting principles.
16-43 SECTION 40. Subchapter F, Government Code, is amended by
16-44 adding Section 2306.1231 to read as follows:
16-45 Sec. 2306.1231. FEDERAL POVERTY LINE. The department shall
16-46 use the applicable federal poverty line in determining eligibility
16-47 for each federal or state program administered by the department
16-48 that requires poverty instead of area median income to be used as a
16-49 criterion of program eligibility.
16-50 SECTION 41. The heading to Subchapter I, Chapter 2306,
16-51 Government Code, is amended to read as follows:
16-52 SUBCHAPTER I. HOUSING TRUST FUND
16-53 <FINANCE DIVISION: FUNDS>
16-54 SECTION 42. Section 2306.201, Government Code, is amended to
16-55 read as follows:
16-56 Sec. 2306.201. HOUSING TRUST FUND. (a) The housing trust
16-57 fund is a fund<:>
16-58 <(1)> administered by the department. The fund may be
16-59 <through the housing finance division; and>
16-60 <(2)> placed with the Texas Treasury Safekeeping Trust
16-61 Company.
16-62 (b) The fund consists of:
16-63 (1) appropriations or transfers made to the fund;
16-64 (2) unencumbered fund balances; <and>
16-65 (3) public or private gifts or grants;
16-66 (4) investment income; and
16-67 (5) proceeds from real estate operations and
16-68 transactions.
16-69 SECTION 43. Section 2306.202, Government Code, is amended to
16-70 read as follows:
17-1 Sec. 2306.202. USE OF HOUSING TRUST FUND. (a) The
17-2 department<, through the housing finance division,> shall use the
17-3 housing trust fund to provide loans, grants, or other comparable
17-4 forms of assistance to local units of government, public housing
17-5 authorities, nonprofit organizations, and income-eligible
17-6 individuals, families, and households to finance, acquire,
17-7 rehabilitate, and develop decent, safe, and sanitary housing.
17-8 (b) Use of the fund is limited to providing:
17-9 (1) assistance for individuals and families of low and
17-10 very low income; and
17-11 (2) technical assistance and capacity building to
17-12 nonprofit organizations engaged in developing housing for
17-13 individuals and families of low and very low income.
17-14 SECTION 44. Section 2306.203, Government Code, is amended to
17-15 read as follows:
17-16 Sec. 2306.203. RULES REGARDING ADMINISTRATION OF HOUSING
17-17 TRUST FUND. The department <board> shall adopt rules to administer
17-18 the housing trust fund, including rules providing:
17-19 (1) that <the division give> priority is given to
17-20 programs that maximize other <federal> resources;
17-21 (2) for a process to set priorities for use of the
17-22 fund, including the distribution of fund resources under a request
17-23 for a proposal process developed and approved by the board;
17-24 (3) that the criteria used to rank proposals will
17-25 include the:
17-26 (A) leveraging of other <federal> resources;
17-27 (B) cost-effectiveness of a proposed
17-28 development; and
17-29 (C) extent to which individuals and families of
17-30 very low income are served by the development;
17-31 (4) that funds may not be made available to a
17-32 development that permanently and involuntarily displaces
17-33 individuals and families of low income;
17-34 (5) that the board attempt to allocate funds to
17-35 achieve a broad geographical distribution with:
17-36 (A) special emphasis on equitably serving rural
17-37 and nonmetropolitan areas; and
17-38 (B) consideration of the number and percentage
17-39 of income-qualified families in different geographical areas; and
17-40 (6) that multifamily housing developed or
17-41 rehabilitated through the fund remain affordable to
17-42 income-qualified households for at least 20 years.
17-43 SECTION 45. Subsections (a), (c), (d), and (e), Section
17-44 2306.205, Government Code, are amended to read as follows:
17-45 (a) Except as provided by Subsections (c), (d), and (e), not
17-46 later than January 10 of each year the department <housing finance
17-47 division> shall transfer to the housing trust fund an amount, as
17-48 determined by the audit report prepared under Section 2306.074(c)
17-49 <2306.204>, equal to one-half of the department's <housing finance
17-50 division's> unencumbered fund balances in excess of two percent of
17-51 the department's <division's> total bonded indebtedness that is not
17-52 rated on its own merits in the highest long-term debt rating
17-53 category by one or more nationally recognized rating agencies.
17-54 (c) If, at the time an annual audit required by Section
17-55 2306.074(c) <2306.204> is concluded, the department's <housing
17-56 finance division's> unencumbered fund balances exceed four percent
17-57 of its total bonded indebtedness that is not rated on its own
17-58 merits in the highest long-term debt rating category, the
17-59 department shall transfer not later than January 10 of the next
17-60 year all amounts in excess of that four percent.
17-61 (d) If, at the time an annual audit required by Section
17-62 2306.074(c) <2306.204> is concluded, a nationally recognized rating
17-63 agency has recommended that the department <housing finance
17-64 division> maintain unencumbered fund balances in excess of the
17-65 amount permitted by Subsection (a) to achieve or maintain a rating
17-66 of at least Aa/A+ on all or a portion of the bonded indebtedness of
17-67 the department <housing finance division> that is issued under an
17-68 open indenture or an open flow of funds, the department shall
17-69 transfer not later than January 10 of the next year all amounts in
17-70 excess of the amount required by the rating agency to be held as
18-1 unencumbered fund balances.
18-2 (e) If, at the time an annual audit required by Section
18-3 2306.074(c) <2306.204> is concluded, a nationally recognized rating
18-4 agency has recommended that the department <housing finance
18-5 division> increase the amount of its unencumbered fund balances to
18-6 achieve or maintain a financially sound condition or to prevent a
18-7 decrease in the long-term debt rating maintained on all or a
18-8 portion of the department's <housing finance division's> bonded
18-9 indebtedness, the department <housing finance division> may not
18-10 make further annual transfers to the housing trust fund until all
18-11 requirements and conditions of the rating agency have been met.
18-12 SECTION 46. Section 2306.207, Government Code, is amended to
18-13 read as follows:
18-14 Sec. 2306.207. RESERVE FUND. (a) The department <housing
18-15 finance division> may create a reserve fund with the state
18-16 treasurer out of:
18-17 (1) proceeds from the sale of the department's
18-18 <division's> bonds; or
18-19 (2) other resources.
18-20 (b) The reserve fund is additional security for the
18-21 department's <division's> bonds.
18-22 SECTION 47. The heading to Subchapter J, Chapter 2306,
18-23 Government Code, is amended to read as follows:
18-24 SUBCHAPTER J. HOUSING <FINANCE DIVISION:>
18-25 LOAN TERMS AND CONDITIONS
18-26 SECTION 48. Section 2306.223, Government Code, is amended to
18-27 read as follows:
18-28 Sec. 2306.223. CRITERIA FOR FINANCING HOUSING DEVELOPMENT OF
18-29 HOUSING SPONSOR. Notwithstanding any other provision of this
18-30 chapter, the department may not finance a housing development
18-31 undertaken by a housing sponsor under this chapter, unless the
18-32 department first determines that:
18-33 (1) the housing development is necessary to provide
18-34 needed decent, safe, and sanitary housing at rentals or prices that
18-35 individuals or families of low and very low income or families of
18-36 moderate income can afford;
18-37 (2) the housing sponsor undertaking the proposed
18-38 housing development will supply well-planned and well-designed
18-39 housing for individuals or families of low and very low income or
18-40 families of moderate income;
18-41 (3) the housing sponsor is financially responsible;
18-42 (4) the financing of the housing development is a
18-43 public purpose and will provide a public benefit; and
18-44 (5) the housing development will be undertaken within
18-45 the authority granted by this chapter to the department <housing
18-46 finance division> and the housing sponsor.
18-47 SECTION 49. Section 2306.224, Government Code, is amended to
18-48 read as follows:
18-49 Sec. 2306.224. HOUSING LOAN TERMS AND CONDITIONS. A housing
18-50 loan financed by the department <through a program of the housing
18-51 finance division> under this chapter <subchapter> is subject to the
18-52 terms and conditions provided by this chapter <subchapter>.
18-53 SECTION 50. Section 2306.227, Government Code, is amended to
18-54 read as follows:
18-55 Sec. 2306.227. PREPAYMENT OF MORTGAGE LOANS. A mortgage
18-56 loan made under this chapter may be prepaid to maturity after the
18-57 period of years and under the terms and conditions determined by
18-58 the department <board>.
18-59 SECTION 51. Section 2306.230, Government Code, is amended to
18-60 read as follows:
18-61 Sec. 2306.230. AGREEMENTS REGARDING CERTAIN LIMITATIONS ON
18-62 HOUSING SPONSORS. A housing development <mortgage loan> is subject
18-63 to an agreement between the department and the housing sponsor that
18-64 subjects the sponsor, including <and> its principals or
18-65 stockholders, if any, to limitations established by the department
18-66 regarding:
18-67 (1) rentals and other charges;
18-68 (2) builders' and developers' profits and fees;
18-69 (3) the disposition of its property; and
18-70 (4) the real property that constitutes the site of or
19-1 relates to the housing development.
19-2 SECTION 52. Section 2306.231, Government Code, is amended to
19-3 read as follows:
19-4 Sec. 2306.231. <LOAN> CONDITIONS RELATING TO FUNDING BY
19-5 DEPARTMENT <POWERS>. As a condition of funding <each loan>, the
19-6 department<, acting through the housing finance division,> may at
19-7 any time during the construction, rehabilitation, or operation of a
19-8 housing development:
19-9 (1) enter and inspect the housing development to:
19-10 (A) investigate the development's:
19-11 (i) physical and financial condition;
19-12 (ii) construction;
19-13 (iii) rehabilitation;
19-14 (iv) operation;
19-15 (v) management; <and>
19-16 (vi) maintenance; and
19-17 (vii) compliance with restrictive
19-18 covenants; and
19-19 (B) examine all books and records relating to:
19-20 (i) capitalization;
19-21 (ii) income and expenses; and
19-22 (iii) other matters regarding
19-23 capitalization or income and expenses;
19-24 (2) impose charges that are required to cover the cost
19-25 of inspections and examinations under Subdivision (1);
19-26 (3) order alterations, changes, or repairs necessary
19-27 to protect:
19-28 (A) the security of the department's investment
19-29 in a housing development; or
19-30 (B) the health, safety, and welfare of the
19-31 occupants of a housing development;
19-32 (4) order a managing agent, housing development
19-33 manager, or housing development owner to do whatever is necessary
19-34 to comply with or refrain from violating an applicable law,
19-35 ordinance, department rule, or term of an agreement regarding the
19-36 housing development; and
19-37 (5) file and prosecute a complaint against a managing
19-38 agent, housing development manager, or housing development owner
19-39 for a violation of any applicable law or ordinance.
19-40 SECTION 53. Section 2306.232, Government Code, is amended to
19-41 read as follows:
19-42 Sec. 2306.232. TEXAS HOUSING AGENCY LOAN OR GUARANTEE. A
19-43 loan or guarantee made by the Texas Housing Agency becomes a loan
19-44 or guarantee of the department <housing finance division>.
19-45 SECTION 54. The heading of Subchapter K, Chapter 2306,
19-46 Government Code, is amended to read as follows:
19-47 SUBCHAPTER K. PROPERTY OWNERSHIP AND
19-48 <HOUSING FINANCE DIVISION:> HOUSING PROGRAMS
19-49 SECTION 55. Section 2306.251, Government Code, is amended to
19-50 read as follows:
19-51 Sec. 2306.251. PROPERTY OWNERSHIP PROGRAM. (a) The
19-52 department may acquire and own real property on an interim basis
19-53 not to exceed five years for sale or rental to:
19-54 (1) individuals and families of low and very low
19-55 income; and
19-56 (2) nonprofit housing organizations and other housing
19-57 organizations to serve the needs of individuals and families of low
19-58 and very low income and families of moderate income.
19-59 (b) Property acquired by the department must qualify for
19-60 home mortgage insurance after rehabilitation.
19-61 (c) The department <housing finance division> may use money
19-62 from the housing trust fund, <or> unencumbered fund balances, or
19-63 appropriations, allocations, grants, or gifts from any public or
19-64 private source to purchase property under this section.
19-65 (d) The department <division> may not use more than 10
19-66 percent of the yearly balance of the housing trust fund to acquire
19-67 real property to endow the fund.
19-68 (e) <(d)> If the department acquires property under this
19-69 section, the department <housing finance division> shall submit an
19-70 annual report to the board <have an independent audit conducted
20-1 annually> to analyze the property ownership program's:
20-2 (1) financial stability;
20-3 (2) cost-effectiveness; and
20-4 (3) effectiveness in serving individuals of low and
20-5 very low income.
20-6 SECTION 56. Section 2306.252, Government Code, is amended to
20-7 read as follows:
20-8 Sec. 2306.252. LOW AND VERY LOW INCOME HOUSING RESOURCE
20-9 CENTER. (a) The department <board> shall establish a low and very
20-10 low income housing resource center <in the housing finance
20-11 division>.
20-12 (b) The center shall:
20-13 (1) provide research and educational material to
20-14 housing advocates, housing sponsors, borrowers, and tenants;
20-15 (2) provide training and technical assistance to
20-16 nonprofit housing sponsors; and
20-17 (3) <focus on marketing loans and other programs of
20-18 the housing finance division to individuals and families of low and
20-19 very low income; and>
20-20 <(4)> assist <lenders> in the development of housing
20-21 policy <marketing loans to individuals and families of low and very
20-22 low income>.
20-23 SECTION 57. The heading of Subchapter L, Chapter 2306,
20-24 Government Code, is amended to read as follows:
20-25 SUBCHAPTER L. <HOUSING FINANCE DIVISION:>
20-26 REGULATION OF HOUSING SPONSORS
20-27 SECTION 58. Section 2306.261, Government Code, is amended to
20-28 read as follows:
20-29 Sec. 2306.261. SUPERVISING HOUSING SPONSORS. The department
20-30 <housing finance division> may, as provided by this subchapter,
20-31 supervise:
20-32 (1) housing sponsors, including limited profit housing
20-33 sponsors, of housing developments that are financed under this
20-34 chapter and rented or leased to tenants; and
20-35 (2) real and personal property of sponsors.
20-36 SECTION 59. Section 2306.263, Government Code, is amended to
20-37 read as follows:
20-38 Sec. 2306.263. REPORTING. The department may require
20-39 housing sponsors to:
20-40 (1) make reports and certifications of their
20-41 operations and expenditures; and
20-42 (2) answer specific questions on forms whenever
20-43 necessary for the purposes of this chapter.
20-44 SECTION 60. Section 2306.264, Government Code, is amended to
20-45 read as follows:
20-46 Sec. 2306.264. INSPECTIONS AND EXAMINATIONS. The
20-47 department, through its agents or employees, may:
20-48 (1) enter and inspect, in whole or in part, the land,
20-49 buildings, and equipment of a housing sponsor; and
20-50 (2) examine all records showing the capital structure,
20-51 income, operations, expenditures, and other payments of a housing
20-52 sponsor.
20-53 SECTION 61. Section 2306.267, Government Code, is amended to
20-54 read as follows:
20-55 Sec. 2306.267. COMPLIANCE WITH APPLICABLE LAWS, RULES, AND
20-56 CONTRACT TERMS. The department may order a housing sponsor to
20-57 perform or refrain from performing certain acts in order to comply
20-58 with the law, department policies <housing finance division rules>,
20-59 or terms of a contract or agreement to which the housing sponsor is
20-60 a party.
20-61 SECTION 62. Section 2306.270, Government Code, is amended to
20-62 read as follows:
20-63 Sec. 2306.270. REGULATION OF RETIREMENT OF CAPITAL
20-64 INVESTMENT OR REDEMPTION OF STOCK. The department shall regulate
20-65 the retirement of a capital investment or the redemption of stock
20-66 of a limited profit housing sponsor if the retirement or
20-67 redemption, when added to a dividend or other distribution, exceeds
20-68 in any one fiscal year the permitted percentage, as allowed by the
20-69 department <housing finance division's rules>, of the original face
20-70 amount of the limited profit housing sponsor's investment or equity
21-1 in a housing development.
21-2 SECTION 63. Section 2306.271, Government Code, is amended to
21-3 read as follows:
21-4 Sec. 2306.271. COST CONTROLS. (a) The department <housing
21-5 finance division by rule> shall specify the categories of costs
21-6 allowable in the construction, reconstruction, remodeling,
21-7 improvement, or rehabilitation of a housing development.
21-8 (b) The department <housing finance division> shall require
21-9 a housing sponsor to certify the actual housing development costs
21-10 on completion of the housing development, subject to audit and
21-11 determination by the department.
21-12 (c) The department may accept, instead of certification of
21-13 housing development costs under Subsection (b), other assurances of
21-14 the costs, in any form, that will enable the department <housing
21-15 finance division> to determine with reasonable accuracy the amount
21-16 of the costs.
21-17 (d) In this section, "housing development costs" means the
21-18 total of all costs incurred in financing, creating, or purchasing a
21-19 housing development, including a single-family dwelling, approved
21-20 by the department as reasonable and necessary. The costs may
21-21 include:
21-22 (1) the value of land and buildings on the land owned
21-23 by the sponsor or the cost of acquiring land and buildings on the
21-24 land, including payments for options, deposits, or contracts to
21-25 purchase properties on the proposed housing site;
21-26 (2) costs of site preparation, demolition, and
21-27 development;
21-28 (3) expenses relating to the issuance of bonds;
21-29 (4) fees paid or payable in connection with the
21-30 planning, execution, and financing of the housing development,
21-31 including fees to:
21-32 (A) architects;
21-33 (B) engineers;
21-34 (C) attorneys;
21-35 (D) accountants; or
21-36 (E) the department <housing finance division on
21-37 the department's behalf>;
21-38 (5) costs of necessary studies, surveys, plans,
21-39 permits, insurance, interest, financing, tax and assessment costs,
21-40 and other operating and carrying costs during construction;
21-41 (6) costs of construction, rehabilitation,
21-42 reconstruction, fixtures, furnishings, equipment, machinery, and
21-43 apparatus related to the real property;
21-44 (7) costs of land improvements, including landscaping
21-45 and off-site improvements, whether or not the costs have been paid
21-46 in cash or in a form other than cash;
21-47 (8) necessary expenses for the initial occupancy of
21-48 the housing development;
21-49 (9) a reasonable profit and risk fee in addition to
21-50 job overhead to the general contractor or limited profit housing
21-51 sponsor;
21-52 (10) an allowance established by the department for
21-53 working capital and contingency reserves and reserves for
21-54 anticipated operating deficits during the first two years of
21-55 occupancy; and
21-56 (11) the cost of other items, including tenant
21-57 relocation if tenant relocation costs are not otherwise provided
21-58 for, that the department determines are reasonable and necessary
21-59 for the development of the housing development, less net rents and
21-60 other net revenues received from the operation of the real and
21-61 personal property on the development site during construction.
21-62 SECTION 64. Subsections (a) and (b), Section 2306.272,
21-63 Government Code, are amended to read as follows:
21-64 (a) A principal or stockholder of a housing sponsor may not
21-65 earn, accept, or receive a per annum return on an investment in a
21-66 housing development financed by the department greater than that
21-67 allowed the <by> department <rule>.
21-68 (b) A housing sponsor's equity in a housing development may
21-69 be either <is> the difference between the mortgage loan and the
21-70 total housing development cost or another amount determined by the
22-1 department.
22-2 SECTION 65. The heading of Subchapter M, Chapter 2306,
22-3 Government Code, is amended to read as follows:
22-4 SUBCHAPTER M. <HOUSING FINANCE DIVISION:>
22-5 PURCHASE AND SALE OF MORTGAGE LOANS
22-6 SECTION 66. Section 2306.291, Government Code, is amended by
22-7 amending Subsection (a) and by adding Subsection (c) to read as
22-8 follows:
22-9 (a) The department may purchase and take assignments from
22-10 mortgage lenders or the federal government of notes and other
22-11 obligations, including contracts for deed, mortgages, or other
22-12 obligations evidencing loans or interest in loans for the
22-13 construction, remodeling, improvement or rehabilitation, purchase,
22-14 leasing, or refinancing of housing developments for individuals and
22-15 families of low and very low income and families of moderate
22-16 income.
22-17 (c) In this section, "contract for deed" means a
22-18 seller-financed contract for the conveyance of land under which
22-19 legal title does not pass to the purchaser until consideration
22-20 under the contract is fully paid to the seller and the seller's
22-21 remedy for nonpayment is forfeiture rather than judicial or
22-22 nonjudicial foreclosure. The purchaser under a contract for deed
22-23 is not disqualified on that basis as a first time homebuyer.
22-24 SECTION 67. Section 2306.292, Government Code, is amended to
22-25 read as follows:
22-26 Sec. 2306.292. ELIGIBILITY OF MORTGAGE LOANS FOR PURCHASE.
22-27 A mortgage loan or interest in a mortgage loan is not eligible for
22-28 purchase by or on behalf of the department from a mortgage lender
22-29 unless the mortgage lender certifies that the mortgage loan or
22-30 interest in the mortgage loan is for a housing development that
22-31 includes benefits for individuals or families of low and very low
22-32 income or for families of moderate income.
22-33 SECTION 68. Section 2306.294, Government Code, is amended to
22-34 read as follows:
22-35 Sec. 2306.294. MORTGAGE LOAN PURCHASE PRICE. <(a)> On
22-36 purchasing a mortgage loan or interest in a mortgage loan from a
22-37 mortgage lender, the department may <shall> pay a purchase price
22-38 equal to the outstanding principal balance and accrued interest,
22-39 except that a discount <from the principal balance> or the payment
22-40 of a premium may be used to produce a fair rate of return
22-41 consistent with the obligations of the department and the purposes
22-42 of this chapter.
22-43 <(b) In addition to payment of the outstanding principal
22-44 balance, the department shall pay the accrued interest due to the
22-45 date on which the mortgage loan is delivered against payment.>
22-46 SECTION 69. Section 2306.295, Government Code, is amended to
22-47 read as follows:
22-48 Sec. 2306.295. POLICIES <RULES> GOVERNING PURCHASE AND SALE
22-49 OF MORTGAGE LOANS. The department shall adopt policies <rules>
22-50 governing the purchase and sale of mortgage loans and the
22-51 application of sale proceeds, including policies <rules> governing:
22-52 (1) procedures for submitting requests or inviting
22-53 proposals for the purchase and sale of mortgage loans or interest
22-54 in the mortgage loans;
22-55 (2) restrictions on the number of family units,
22-56 location, or other qualifications of residences to be financed by
22-57 residential mortgage loans;
22-58 (3) income limits of individuals and families of low
22-59 and very low income or families of moderate income occupying a
22-60 residence financed by a residential mortgage loan;
22-61 (4) restrictions relating to the interest rates on
22-62 mortgage loans or the return realized by mortgage lenders;
22-63 (5) requirements for commitments by mortgage lenders
22-64 relating to mortgage loans;
22-65 (6) schedules of fees and charges necessary for
22-66 expenses and reserves of the department <housing finance division>;
22-67 (7) resale of the housing development; and
22-68 (8) any other matter related to the power of the
22-69 department to purchase and sell mortgage loans or interests in
22-70 mortgage loans.
23-1 SECTION 70. Subsection (a), Section 2306.296, Government
23-2 Code, is amended to read as follows:
23-3 (a) The department shall review each mortgage loan purchased
23-4 or financed by the department to determine if the loan meets:
23-5 (1) the conditions of this chapter; and
23-6 (2) <the department's rules; and>
23-7 <(3)> any commitment made with the mortgage lender to
23-8 purchase mortgage loans.
23-9 SECTION 71. Section 2306.297, Government Code, is amended to
23-10 read as follows:
23-11 Sec. 2306.297. APPLICATION OF PROVISIONS RELATING TO LOAN
23-12 TERMS AND CONDITIONS. Sections 2306.0515, 2306.089, 2306.225,
23-13 2306.227, and <through> 2306.229 apply to the purchase of mortgage
23-14 loans.
23-15 SECTION 72. The heading of Subchapter N, Chapter 2306,
23-16 Government Code, is amended to read as follows:
23-17 SUBCHAPTER N. <HOUSING FINANCE DIVISION:>
23-18 TENANTS OF HOUSING DEVELOPMENTS
23-19 SECTION 73. Section 2306.315, Government Code, is amended to
23-20 read as follows:
23-21 Sec. 2306.315. DISCHARGE FROM LIABILITY; REIMBURSEMENT. If
23-22 an individual or family who resides in a cooperative housing
23-23 development is required to move from the development because of
23-24 excessive income, the individual or family must be:
23-25 (1) discharged from liability for any note, bond, or
23-26 other evidence of indebtedness; and
23-27 (2) reimbursed, as required by the <under> department
23-28 <rules>, for all sums paid to the housing sponsor on account of
23-29 the:
23-30 (A) purchase of stock or debentures as a
23-31 condition of occupancy; or
23-32 (B) acquisition of title for that purpose.
23-33 SECTION 74. The heading of Subchapter O, Chapter 2306,
23-34 Government Code, is amended to read as follows:
23-35 SUBCHAPTER O. <HOUSING FINANCE DIVISION:> REGULATION OF
23-36 MORTGAGE LENDERS, SERVICERS, AND CONTRACTORS
23-37 SECTION 75. Section 2306.332, Government Code, is amended to
23-38 read as follows:
23-39 Sec. 2306.332. MONITORING MORTGAGE LENDERS. The department
23-40 shall develop a written plan to monitor and review <audit> the
23-41 performance of mortgage lenders. The plan must include a
23-42 requirement:
23-43 (1) that mortgage lenders comply with quality control
23-44 standards established by appropriate federal agencies;
23-45 (2) for a review <an audit> of mortgage lenders'
23-46 compliance with program guidelines to be conducted by random
23-47 selection of loans and associated paperwork for review;
23-48 (3) for monitoring delinquency and foreclosure rates
23-49 for currently participating mortgage lenders to identify
23-50 unfavorable trends;
23-51 (4) for an extensive review <audit> after a finding of
23-52 an unfavorable trend under Subdivision (3); <and>
23-53 (5) for reporting the information gathered under this
23-54 section to the director and the board; and
23-55 (6) for monitoring mortgage lenders' performance in
23-56 providing access to mortgage credit through the department's
23-57 programs to meet the credit needs of families living in the
23-58 mortgage lenders' service areas without regard to race or
23-59 ethnicity.
23-60 SECTION 76. Section 2306.333, Government Code, is amended to
23-61 read as follows:
23-62 Sec. 2306.333. MONITORING MORTGAGE SERVICERS. The
23-63 department <housing finance division> shall develop a written plan
23-64 to monitor and review <audit> the performance of mortgage
23-65 servicers. The plan must include:
23-66 (1) a method of developing criteria to evaluate the
23-67 performance of servicers;
23-68 (2) a method of monitoring the performance of a
23-69 servicer under the criteria developed under Subdivision (1);
23-70 (3) a requirement for a review of the financial
24-1 statements of a servicer;
24-2 (4) a process for an extensive review <audit> of
24-3 servicers who repeatedly violate the terms of the servicers'
24-4 contracts with the department;
24-5 (5) the designation of a review <an audit> team
24-6 consisting of staff members from relevant areas of the department
24-7 <housing finance division>; and
24-8 (6) a method of reporting the information gathered
24-9 under this section to the director and the board.
24-10 SECTION 77. Section 2306.334, Government Code, is amended to
24-11 read as follows:
24-12 Sec. 2306.334. MONITORING CONTRACTORS. The department shall
24-13 develop a written plan to monitor and review <audit> the
24-14 performance of real estate owned contractors and other contractors.
24-15 The plan must include:
24-16 (1) a requirement for a periodic inspection of
24-17 foreclosed property;
24-18 (2) a method of monitoring contractors' performance of
24-19 contract requirements; and
24-20 (3) a requirement for a periodic review of
24-21 contractors' billing procedures.
24-22 SECTION 78. The heading of Subchapter P, Chapter 2306,
24-23 Government Code, is amended to read as follows:
24-24 SUBCHAPTER P. <HOUSING FINANCE DIVISION BONDS:>
24-25 ISSUANCE OF BONDS
24-26 SECTION 79. Subsections (a) and (c), Section 2306.353,
24-27 Government Code, are amended to read as follows:
24-28 (a) In addition to issuing general obligation bonds under
24-29 Section 2306.352, the department may issue revenue bonds to provide
24-30 money to carry out a purpose, power, or duty of the department
24-31 <housing finance division> under this chapter.
24-32 (c) The bonds shall be payable as to principal, interest,
24-33 and redemption premium, if any, from, and secured by, a first or
24-34 subordinate lien on, and pledge of, all or part of the revenues,
24-35 income, or other resources of the department <housing finance
24-36 division>, including:
24-37 (1) the repayments of mortgage loans;
24-38 (2) the earnings from investment or deposit of the
24-39 reserve fund and other funds of the department <housing finance
24-40 division>;
24-41 (3) the fees, charges, and other amounts or payments
24-42 received under this chapter; and
24-43 (4) appropriations, grants, allocations, subsidies,
24-44 rent supplements, guaranties, aid, contribution, or donations.
24-45 SECTION 80. Section 2306.357, Government Code, is amended to
24-46 read as follows:
24-47 Sec. 2306.357. BONDS ISSUED BY TEXAS HOUSING AGENCY. A
24-48 general obligation or revenue bond issued by the Texas Housing
24-49 Agency becomes a general obligation or revenue bond of the
24-50 department <housing finance division>.
24-51 SECTION 81. The heading of Subchapter Q, Chapter 2306,
24-52 Government Code, is amended to read as follows:
24-53 SUBCHAPTER Q. <HOUSING FINANCE DIVISION BONDS:>
24-54 BOARD ACTION ON BONDS
24-55 SECTION 82. The heading of Subchapter R, Chapter 2306,
24-56 Government Code, is amended to read as follows:
24-57 SUBCHAPTER R. <HOUSING FINANCE DIVISION> BONDS: FORM; TERMS
24-58 SECTION 83. The heading of Subchapter S, Chapter 2306,
24-59 Government Code, is amended to read as follows:
24-60 SUBCHAPTER S. <HOUSING FINANCE DIVISION BONDS:>
24-61 SECURITY FOR BONDS
24-62 SECTION 84. Subsection (a), Section 2306.411, Government
24-63 Code, is amended to read as follows:
24-64 (a) In addition to other security for the department's bonds
24-65 authorized by this chapter, payment of the principal and interest
24-66 and redemption premium, if any, on the department's bonds may be
24-67 secured by a first or subordinate lien on and pledge of all or part
24-68 of:
24-69 (1) the department's assets and real, personal, or
24-70 mixed property, including:
25-1 (A) mortgages or other obligations securing the
25-2 assets of property;
25-3 (B) investments; and
25-4 (C) trust agreements or trust indentures
25-5 administered by one or more corporate trustees as allowed by the
25-6 board; and
25-7 (2) the reserves or funds of the department <housing
25-8 finance division>.
25-9 SECTION 85. Subsection (a), Section 2306.412, Government
25-10 Code, is amended to read as follows:
25-11 (a) A lien on or pledge of revenues, income, assets,
25-12 reserves, funds, or other resources of the department <housing
25-13 finance division>, as authorized by this chapter, is valid and
25-14 binding from the time of payment for and delivery of the bonds
25-15 authorized by the board resolution creating or confirming the lien
25-16 or pledge.
25-17 SECTION 86. The heading of Subchapter T, Chapter 2306,
25-18 Government Code, is amended to read as follows:
25-19 SUBCHAPTER T. <HOUSING FINANCE DIVISION BONDS:>
25-20 APPROVAL, REGISTRATION, AND EXECUTION OF BONDS
25-21 SECTION 87. The heading of Subchapter U, Chapter 2306,
25-22 Government Code, is amended to read as follows:
25-23 SUBCHAPTER U. <HOUSING FINANCE DIVISION BONDS:>
25-24 RIGHTS AND REMEDIES OF BOND HOLDERS AND PARTIES IN INTEREST
25-25 SECTION 88. The heading of Subchapter V, Chapter 2306,
25-26 Government Code, is amended to read as follows:
25-27 SUBCHAPTER V. DEPARTMENT <HOUSING FINANCE DIVISION> BONDS:
25-28 OBLIGATIONS OF DEPARTMENT AND STATE
25-29 SECTION 89. Section 2306.472, Government Code, is amended to
25-30 read as follows:
25-31 Sec. 2306.472. DEPARTMENT'S BONDS OTHER THAN GENERAL
25-32 OBLIGATION BONDS NOT OBLIGATIONS OF THE STATE. Except for bonds
25-33 authorized by the Texas Constitution and issued under Section
25-34 2306.352, the department's bonds:
25-35 (1) are solely obligations of the department and are
25-36 payable solely from funds of the department's bond-financed
25-37 activities <housing finance division>;
25-38 (2) are not an obligation, debt, or liability of the
25-39 state; and
25-40 (3) do not create or constitute a pledge, giving, or
25-41 lending of the faith, credit, or taxing power of the state.
25-42 SECTION 90. The heading of Subchapter W, Chapter 2306,
25-43 Government Code, is amended to read as follows:
25-44 SUBCHAPTER W. DEPARTMENT <HOUSING FINANCE DIVISION> BONDS:
25-45 MISCELLANEOUS PROVISIONS
25-46 SECTION 91. Section 2306.491, Government Code, is amended to
25-47 read as follows:
25-48 Sec. 2306.491. BONDS NEGOTIABLE INSTRUMENTS.
25-49 Notwithstanding any other statute, a bond and interest coupon
25-50 issued and delivered by the department <housing finance division>
25-51 is a negotiable instrument under the Uniform Commercial Code,
25-52 except that the bond may be registered or subject to registration
25-53 under this chapter.
25-54 SECTION 92. Section 2306.513, Government Code, is amended to
25-55 read as follows:
25-56 Sec. 2306.513. HOUSING FOR INDIVIDUALS WITH SPECIAL NEEDS.
25-57 (a) The board shall adopt policies <rules> to achieve occupancy by
25-58 individuals with special needs of at least five percent of the
25-59 units in each multifamily housing development.
25-60 (b) Subsection (a) applies only to a multifamily housing
25-61 development that contains at least 20 units and is financed by
25-62 bonds issued under this chapter.
25-63 (c) If a survey that is conducted by the housing sponsor and
25-64 verified by the department <housing finance division> reveals that
25-65 there is not sufficient need for housing for individuals with
25-66 special needs in the area in which the development will be built or
25-67 renovated to justify building or renovating and reserving at least
25-68 five percent of the units for individuals with special needs, the
25-69 department may, on a showing of good cause by the housing sponsor,
25-70 lower the requirements to correspond to the amount of need found by
26-1 the housing sponsor.
26-2 <(d) The housing finance division shall cooperate with the
26-3 Texas Department on Aging to implement this section and shall
26-4 reimburse the department for the costs of:>
26-5 <(1) assessing the need for housing for individuals
26-6 with special needs in different locations;>
26-7 <(2) setting standards relating to the design and
26-8 construction of housing for individuals with special needs;>
26-9 <(3) providing planning assistance to builders; and>
26-10 <(4) publicizing the availability of the housing
26-11 program to potential developers and residents.>
26-12 <(e) The department and the Texas Department on Aging shall
26-13 determine a procedure for paying for services provided by the Texas
26-14 Department on Aging.>
26-15 SECTION 93. Chapter 2306, Government Code, is amended by
26-16 adding Subchapter Y to read as follows:
26-17 SUBCHAPTER Y. TEXAS STATE AFFORDABLE HOUSING CORPORATION
26-18 Sec. 2306.551. DEFINITION. In this subchapter,
26-19 "corporation" means the Texas State Affordable Housing Corporation.
26-20 Sec. 2306.552. CREATION. (a) The existence of the Texas
26-21 State Affordable Housing Corporation, or any similarly named
26-22 corporation, begins on the date that the secretary of state issues
26-23 the certificate of incorporation.
26-24 (b) The charter of the corporation must establish the
26-25 corporation as nonprofit and specifically dedicate the
26-26 corporation's activities to the benefit of the department.
26-27 (c) The creation of the corporation does not limit or impair
26-28 the rights, powers, and duties of the department under this
26-29 chapter.
26-30 Sec. 2306.553. PURPOSES. (a) The corporation shall carry
26-31 out the public purposes of this chapter on behalf of the state.
26-32 (b) The corporation may engage only in the performance of
26-33 charitable functions.
26-34 Sec. 2306.554. BOARD OF DIRECTORS. The members of the board
26-35 serve as the board of directors of the corporation.
26-36 Sec. 2306.555. POWERS. (a) The corporation has the rights
26-37 and powers of a nonprofit corporation incorporated under the Texas
26-38 Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
26-39 Texas Civil Statutes).
26-40 (b) The corporation may contract with the department and
26-41 with bond counsel, financial advisors, or underwriters.
26-42 (c) A member of the board of directors or an officer or
26-43 employee of the corporation is not liable personally for bonds
26-44 issued or contracts executed by the corporation or for any other
26-45 action taken in accordance with the powers and duties authorized by
26-46 this subchapter.
26-47 Sec. 2306.556. TAX EXEMPT. The corporation is exempt from
26-48 all taxation by the state or a political subdivision of the state,
26-49 including a municipality.
26-50 Sec. 2306.557. DISTRIBUTION OF EARNINGS. Any part of
26-51 earnings remaining after payment of expenses may not inure to any
26-52 person except that the corporation shall deposit these earnings to
26-53 the credit of the general revenue fund for the benefit of the
26-54 department if the corporation's board of directors determines that
26-55 sufficient provision has been made for the full payment of the
26-56 expenses, bonds, and other obligations of the corporation.
26-57 Sec. 2306.558. ALTERATION AND TERMINATION. (a) Subject to
26-58 this subchapter and the prohibition on the impairment of contracts
26-59 in the law of this state, the corporation's board of directors by
26-60 written resolution may alter the structure, organization, programs,
26-61 or activities of the corporation or terminate and dissolve the
26-62 corporation.
26-63 (b) The corporation's board of directors shall dissolve the
26-64 corporation if the board by resolution determines that:
26-65 (1) the purposes for which the corporation was formed
26-66 have been substantially fulfilled; and
26-67 (2) all bonds issued by the corporation have been
26-68 fully paid.
26-69 (c) On dissolution, the title to funds and properties
26-70 previously owned by the corporation shall be transferred to the
27-1 department.
27-2 Sec. 2306.559. ANNUAL REPORT. (a) The corporation shall
27-3 file an annual report of the financial activity of the corporation
27-4 with the department.
27-5 (b) The corporation shall file the report before the 90th
27-6 day after the last day of the corporation's fiscal year.
27-7 (c) The corporation shall prepare the report in accordance
27-8 with generally accepted accounting principles.
27-9 (d) The report must include:
27-10 (1) a statement of support, revenue, and expenses and
27-11 change in fund balances;
27-12 (2) a statement of functional expenses; and
27-13 (3) balance sheets for all funds.
27-14 Sec. 2306.560. APPLICATION OF OPEN RECORDS AND OPEN MEETINGS
27-15 LAWS. (a) The corporation is subject to the open records law,
27-16 Chapter 552, except that the proprietary financial records of a
27-17 private applicant, borrower, or other recipient of funds are not a
27-18 public record.
27-19 (b) The corporation is subject to the open meetings law,
27-20 Chapter 551, except that the board is not required to conduct an
27-21 open meeting to discuss proprietary financial matters of a private
27-22 applicant, borrower, or other recipient of funds.
27-23 SECTION 94. Chapter 2306, Government Code, is amended by
27-24 adding Subchapter Z to read as follows:
27-25 SUBCHAPTER Z. EMERGENCY NUTRITION AND TEMPORARY
27-26 EMERGENCY RELIEF PROGRAM
27-27 Sec. 2306.601. PURPOSE. (a) The legislature finds that:
27-28 (1) economic and demographic changes have created
27-29 rapid increases in the number of needy persons who are homeless or
27-30 without other necessities of basic existence;
27-31 (2) local governments and nonprofit service
27-32 organizations are unable to meet the increased financial burden
27-33 caused by those changes in various areas of the state; and
27-34 (3) the dramatic nature of the emergency relief needs
27-35 in various localities has contributed to family instability and
27-36 threatened the social and economic stability of those communities.
27-37 (b) The intent of this subchapter is to serve a public
27-38 purpose and the goals of the state by providing state money to
27-39 supplement any local or federal money available to provide
27-40 emergency relief to needy persons.
27-41 Sec. 2306.602. DEFINITIONS. In this subchapter:
27-42 (1) "Applicant" means the commissioners court of a
27-43 county, the governing body of another political subdivision, or a
27-44 nonprofit organization.
27-45 (2) "Nonprofit organization" means a private,
27-46 nonprofit, tax-exempt corporation listed in Section 501(c)(3),
27-47 Internal Revenue Code of 1986 (26 U.S.C. Section 501(c)(3)).
27-48 (3) "Program" means a system of providing temporary
27-49 emergency relief to needy persons.
27-50 Sec. 2306.603. TEMPORARY EMERGENCY RELIEF FUND. (a) The
27-51 department shall establish a temporary emergency relief fund from
27-52 money appropriated for that purpose in order to assist counties, in
27-53 cooperation with other public entities and nonprofit organizations,
27-54 in meeting the needs of individuals and families for temporary
27-55 emergency relief.
27-56 (b) The department shall establish the emergency nutrition
27-57 program as part of the temporary emergency relief program
27-58 established under this subchapter. The emergency nutrition program
27-59 may allocate money from the temporary emergency relief fund to meet
27-60 the unmet need for emergency food assistance. The money shall be
27-61 used as a grant to local communities. The department shall
27-62 administer the emergency nutrition program in the same fashion and
27-63 under the same procedures as used to govern the administration of
27-64 the temporary emergency relief program.
27-65 (c) Unobligated and unexpended money that remains in the
27-66 fund at the end of the fiscal biennium and that has not been
27-67 allocated or provided as a supplemental allocation to an applicant
27-68 reverts to the general revenue fund.
27-69 (d) The department may use not more than six percent of the
27-70 fund to pay costs incurred in administering the fund.
28-1 (e) The department shall deposit five percent of the money
28-2 appropriated to the department under this subchapter to the credit
28-3 of a special fund in the state treasury known as the emergency
28-4 contingency fund. The department may not spend the money in the
28-5 emergency contingency fund without the written approval of the
28-6 governor, lieutenant governor, and speaker of the house of
28-7 representatives. The department shall spend the money as directed
28-8 by a joint order of the governor, lieutenant governor, and speaker
28-9 of the house of representatives.
28-10 Sec. 2306.604. APPLICATION. (a) A county may apply to the
28-11 department for a grant-in-aid to establish and administer a program
28-12 under this subchapter.
28-13 (b) If a county declines to act, the department may accept
28-14 applications from other political subdivisions or from nonprofit
28-15 organizations. The political subdivision or nonprofit organization
28-16 must first notify the county judge of the intention to submit an
28-17 application for a grant-in-aid.
28-18 (c) An application submitted under this section must provide
28-19 evidence that a county requires assistance and that the applicant
28-20 has consulted with public entities, nonprofit organizations,
28-21 voluntary associations, representatives of low-income persons, and
28-22 other groups involved in providing assistance to needy persons.
28-23 The department may approve only one program for each county.
28-24 (d) A decision by a county to administer a program under
28-25 this subchapter remains in effect until the county notifies the
28-26 department that the county no longer wants to participate in the
28-27 program. If a county decides to discontinue its participation, the
28-28 department may choose an applicant as an alternative participant as
28-29 prescribed by Subsection (b).
28-30 (e) The department shall develop standards and procedures
28-31 for the program that permit all counties in the state to
28-32 participate.
28-33 Sec. 2306.605. LOCAL ALLOCATION. (a) State money provided
28-34 to a local applicant under this subchapter may not be used for
28-35 local administrative costs.
28-36 (b) An allocation to a county from the fund established by
28-37 Section 2306.603 shall be based on the county's demonstrated need
28-38 for the money. The formula used by the department to allocate the
28-39 money shall include:
28-40 (1) the number of unemployed persons in the county
28-41 during the most recent 12-month period for which data are available
28-42 compared to the number in the state for that period; and
28-43 (2) the number of persons in poverty in the county
28-44 during the most recent 12-month period for which data are available
28-45 compared to the number in the state for that period.
28-46 Sec. 2306.606. LOCAL PLAN; DISBURSEMENT. (a) An applicant
28-47 must submit to the department a plan for providing emergency
28-48 relief.
28-49 (b) The plan must contain a description of the target
28-50 population, the eligibility criteria for receipt of services, the
28-51 nature and scope of benefits to be provided, methods of
28-52 administration, and a budget. The plan must also show evidence of
28-53 consultation with the entities listed in Section 2306.604(c).
28-54 (c) On verification by the department that the applicant
28-55 qualifies under this subchapter, the department shall disburse
28-56 money from the fund to the applicant to be used to establish a
28-57 program in the affected county.
28-58 Sec. 2306.607. ELIGIBILITY AND PROVISION OF ASSISTANCE.
28-59 (a) Each county, political subdivision, or nonprofit organization
28-60 approved by the department for the establishment of a program shall
28-61 adopt its own criteria for persons eligible to receive benefits
28-62 under the program and shall include the criteria in the plan for
28-63 providing emergency relief submitted to the department.
28-64 (b) Before establishing eligibility and the frequency and
28-65 duration of benefits provided under the program, the county,
28-66 political subdivision, or nonprofit organization shall allow
28-67 adequate notice and opportunity for public comment, including
28-68 comments from entities listed in Section 2306.604(c).
28-69 (c) A county, political subdivision, or nonprofit
28-70 organization may not set the eligibility level at less than 75
29-1 percent of the federal poverty level based on the federal Office of
29-2 Management and Budget poverty index in effect at the time the plan
29-3 is submitted to the department.
29-4 (d) Assistance to persons eligible to participate in a
29-5 program authorized by this subchapter shall be provided through
29-6 vouchers and purchased services in accordance with the approved
29-7 plan submitted to the department. The assistance may include the
29-8 provision of utilities, food, housing, and clothing to needy
29-9 persons.
29-10 (e) Records relating to a program under this subchapter are
29-11 subject to audit by the department, an auditor approved by the
29-12 department, or the state auditor.
29-13 Sec. 2306.608. REPORTS; PUBLIC NOTICES. A county, political
29-14 subdivision, or nonprofit organization funded under this subchapter
29-15 shall provide information to the department as necessary to ensure
29-16 that information is provided to the public regarding eligibility
29-17 for and the nature of a program operated under this subchapter.
29-18 Sec. 2306.609. RELATIONSHIP TO FEDERAL LAW. (a) If a
29-19 federal law or regulation is changed without making provision for
29-20 temporary waivers to allow compliance with state law, and, as a
29-21 result of this change, there is insufficient time to comply with
29-22 all the procedures required by this subchapter, the agency or
29-23 entity affected may act so as to comply with federal law and shall
29-24 comply with the applicable procedures required by this subchapter
29-25 as soon as possible.
29-26 (b) If a federal statute or court order conflicts with this
29-27 subchapter, the federal law or court order prevails over this
29-28 subchapter.
29-29 SECTION 95. Subsection (a), Section 5.13, State Purchasing
29-30 and General Services Act (Article 601b, Vernon's Texas Civil
29-31 Statutes), is amended to read as follows:
29-32 (a) Except as otherwise provided by this article, this
29-33 article shall apply to all building construction projects as herein
29-34 defined which may be undertaken by the state, with the following
29-35 exceptions:
29-36 (1) all projects constructed by and for the Texas
29-37 <State> Department of <Highways and Public> Transportation;
29-38 (2) all projects constructed by and for state
29-39 institutions of higher education;
29-40 (3) pens, sheds, and ancillary buildings constructed
29-41 by and for the Texas Department of Agriculture for the processing
29-42 of livestock prior to export;
29-43 (4) all projects of repair and rehabilitation, except
29-44 major renovations, of buildings and grounds on the commission
29-45 inventory;
29-46 (5) all projects constructed by the Parks and Wildlife
29-47 Department; <and>
29-48 (6) all projects of repair, rehabilitation, and
29-49 construction on property owned by the Texas Department of Housing
29-50 and Community Affairs or the Texas State Affordable Housing
29-51 Corporation; and
29-52 (7) repair and rehabilitation projects of any other
29-53 using agency, provided all labor for such projects is provided by
29-54 the regular maintenance forces of the using agency under specific
29-55 legislative authorization, and provided further, that such projects
29-56 do not require the advance preparation of working plans and/or
29-57 drawings.
29-58 SECTION 96. Section 6.01, State Purchasing and General
29-59 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
29-60 amended to read as follows:
29-61 Sec. 6.01. DEFINITION. In this article, "space" means
29-62 office space, warehouse space, laboratory space, storage space
29-63 exceeding 1,000 gross square feet, or any combination of that
29-64 space. The term <thereof, but> does not include:
29-65 (1) aircraft hangar space;
29-66 (2) <,> radio antenna space;
29-67 (3) <,> boat storage space;
29-68 (4) <,> vehicle parking space;
29-69 (5) <,> residential space for a Texas Department of
29-70 Mental Health and Mental Retardation program;
30-1 (6) <,> residential space for a Texas Youth Commission
30-2 program;
30-3 (7) residential property acquired by the Texas
30-4 Department of Housing and Community Affairs or the Texas State
30-5 Affordable Housing Corporation with bond proceeds;<,> or
30-6 (8) space to be utilized for less than one month for
30-7 meetings, conferences, seminars, conventions, displays,
30-8 examinations, auctions, or other similar purposes.
30-9 SECTION 97. The following laws are repealed:
30-10 (1) Section 2306.029, Government Code;
30-11 (2) Section 2306.072, Government Code;
30-12 (3) Section 2306.091, Government Code;
30-13 (4) Section 2306.111, Government Code;
30-14 (5) Section 2306.118, Government Code;
30-15 (6) Section 2306.122, Government Code;
30-16 (7) Sections 2306.124, 2306.125, and 2306.126,
30-17 Government Code;
30-18 (8) Subchapters G and H, Chapter 2306, Government
30-19 Code;
30-20 (9) Section 2306.204, Government Code;
30-21 (10) Section 2306.226, Government Code;
30-22 (11) Section 2306.266, Government Code;
30-23 (12) Sections 2306.313 and 2306.314, Government Code;
30-24 (13) Section 2306.375, Government Code; and
30-25 (14) Chapter 34, Human Resources Code.
30-26 SECTION 98. (a) In addition to the changes in law made by
30-27 this Act relating to the operations, powers, and duties of the
30-28 Texas Department of Housing and Community Affairs, this Act
30-29 conforms certain provisions of the Government Code regarding that
30-30 department to changes in law made by Chapter 725, Acts of the 73rd
30-31 Legislature, 1993.
30-32 (b) Chapter 725, Acts of the 73rd Legislature, 1993, is
30-33 repealed.
30-34 (c) To the extent of any conflict, this Act prevails over
30-35 another Act of the 74th Legislature, Regular Session, 1995,
30-36 relating to nonsubstantive additions to and corrections in enacted
30-37 codes.
30-38 SECTION 99. This Act takes effect September 1, 1995.
30-39 SECTION 100. The importance of this legislation and the
30-40 crowded condition of the calendars in both houses create an
30-41 emergency and an imperative public necessity that the
30-42 constitutional rule requiring bills to be read on three several
30-43 days in each house be suspended, and this rule is hereby suspended.
30-44 * * * * *