1-1 By: Zaffirini, et al. S.B. No. 1509 1-2 (In the Senate - Filed March 13, 1995; March 22, 1995, read 1-3 first time and referred to Committee on International Relations, 1-4 Trade, and Technology; April 19, 1995, reported adversely, with 1-5 favorable Committee Substitute by the following vote: Yeas 7, Nays 1-6 1; April 19, 1995, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1509 By: Truan 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the establishment of colonia self-help centers in 1-11 certain counties. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Chapter 2306, Government Code, is amended by 1-14 adding Subchapter Z to read as follows: 1-15 SUBCHAPTER Z. COLONIA SELF-HELP CENTERS 1-16 Sec. 2306.581. DEFINITION. In this subchapter: 1-17 (1) "Colonia" means a geographic area located in a 1-18 county some part of which is within 150 miles of the international 1-19 border of this state and that: 1-20 (A) has a majority population composed of 1-21 individuals and families of low income and very low income, based 1-22 on the federal Office of Management and Budget poverty index, and 1-23 meets the qualifications of an economically distressed area under 1-24 Section 17.921, Water Code; or 1-25 (B) has the physical and economic 1-26 characteristics of a colonia, as determined by the department. 1-27 (2) "Community action agency" means a political 1-28 subdivision, combination of political subdivisions, or nonprofit 1-29 organization that qualifies as an eligible entity under 42 U.S.C. 1-30 Section 9902. 1-31 Sec. 2306.582. COLONIA SELF-HELP CENTERS: ESTABLISHMENT. 1-32 (a) The department shall establish colonia self-help centers in El 1-33 Paso, Hidalgo, Starr, and Webb counties, and in Cameron County to 1-34 serve Cameron and Willacy counties. If the department determines 1-35 it necessary and appropriate, the department may establish a 1-36 self-help center in any other county if the county is designated as 1-37 an economically distressed area under Chapter 17, Water Code, for 1-38 purposes of eligibility to receive funds from the Texas Water 1-39 Development Board. 1-40 (b) The department shall attempt to secure contributions, 1-41 services, facilities, or operating support from the commissioners 1-42 court of the county in which the self-help center is located to 1-43 support the operation of the self-help center. 1-44 Sec. 2306.583. SELF-HELP CENTERS: DESIGNATION. (a) The 1-45 department shall designate: 1-46 (1) a geographic area for the services provided by 1-47 each self-help center; and 1-48 (2) five colonias in each service area to receive 1-49 concentrated attention from that center. 1-50 (b) The department may change the designation of colonias 1-51 made under Subsection (a)(2). 1-52 Sec. 2306.584. COLONIA ADVISORY COMMITTEE. (a) The 1-53 department shall appoint not fewer than five persons who are 1-54 residents of colonias to serve as an advisory committee for each 1-55 self-help center. The members of the advisory committee shall be 1-56 selected from lists of candidates submitted to the department by 1-57 local nonprofit organizations and the commissioners court of a 1-58 county that the self-help center serves. 1-59 (b) The department shall appoint one committee member to 1-60 represent each colonia in each of the counties in which self-help 1-61 centers are located. A committee member: 1-62 (1) must be a resident of a colonia in the county the 1-63 member represents; and 1-64 (2) may not be affiliated with an entity that is 1-65 awarded a contract under this subchapter. 1-66 Sec. 2306.585. DUTIES OF COMMITTEE. (a) The committee 1-67 shall advise the department regarding: 1-68 (1) the needs of colonia residents; 2-1 (2) appropriate and effective programs that are 2-2 proposed or are operated through the self-help centers; and 2-3 (3) activities that may be undertaken through the 2-4 self-help centers to better serve the needs of colonia residents. 2-5 (b) The committee shall meet before the 30th day preceding 2-6 the date on which a contract is scheduled to be awarded for the 2-7 operation of a self-help center and may meet at other times. 2-8 Sec. 2306.586. SELF-HELP CENTER: PURPOSE AND SERVICES. 2-9 (a) The purpose of a self-help center is to assist individuals and 2-10 families of low income and very low income to finance, refinance, 2-11 construct, improve, or maintain a safe, suitable home in the 2-12 colonias' designated service area or in another area the department 2-13 has determined is suitable. 2-14 (b) A self-help center shall set a goal to improve the 2-15 living conditions of residents in the colonias designated under 2-16 Section 2306.583(a)(2) within a two-year period after a contract is 2-17 awarded under this subchapter. 2-18 (c) A self-help center may serve individuals and families of 2-19 low income and very low income by: 2-20 (1) providing assistance in obtaining loans or grants 2-21 to build a home; 2-22 (2) teaching construction skills necessary to repair 2-23 or build a home; 2-24 (3) providing model home plans; 2-25 (4) operating a program to rent or provide tools for 2-26 home construction and improvement for the benefit of property 2-27 owners in colonias who are building or repairing a residence or 2-28 installing necessary residential infrastructure; 2-29 (5) helping to obtain, construct, access, or improve 2-30 the service and utility infrastructure designed to service 2-31 residences in a colonia, including potable water, wastewater 2-32 disposal, drainage, streets, and utilities; 2-33 (6) surveying or platting residential property that an 2-34 individual purchased without the benefit of a legal survey, plat, 2-35 or record; 2-36 (7) providing credit and debt counseling related to 2-37 home purchase and finance; 2-38 (8) applying for grants and loans to provide housing 2-39 and other needed community improvements; 2-40 (9) providing other services that the self-help 2-41 center, with the approval of the department, determines are 2-42 necessary to assist colonia residents in improving their physical 2-43 living conditions, including help in obtaining suitable alternative 2-44 housing outside of a colonia's area; and 2-45 (10) providing assistance in obtaining loans or grants 2-46 to enable an individual or a family to acquire fee simple title to 2-47 property that originally was purchased under a contract for a deed, 2-48 contract for sale, or other executory contract. 2-49 (d) A self-help center may not provide grants, financing, or 2-50 mortgage loan services to purchase, build, rehabilitate, or finance 2-51 construction or improvements to a home in a colonia if water 2-52 service and suitable wastewater disposal are not available. 2-53 Sec. 2306.587. OPERATION OF SELF-HELP CENTER. The 2-54 department shall contract for the operation of a self-help center 2-55 with a local nonprofit organization, local community action agency, 2-56 or local housing authority that has demonstrated the ability to 2-57 carry out the functions of a self-help center under this 2-58 subchapter. 2-59 (b) The department and the self-help centers may apply for 2-60 and receive public or private gifts or grants to enable the centers 2-61 to achieve their purpose. 2-62 Sec. 2306.588. DEPARTMENT LIAISON TO SELF-HELP CENTERS. 2-63 (a) The department shall designate appropriate staff in the 2-64 department to act as liaison to the self-help centers to assist the 2-65 centers in obtaining funding to enable the centers to carry out the 2-66 centers' programs. 2-67 (b) The department shall make a reasonable effort to secure 2-68 an adequate level of funding to provide the self-help centers with 2-69 funds for low-interest mortgage financing, grants for self-help 2-70 programs, a revolving loan fund for septic tanks, a tool-lending 3-1 program, and other activities the department determines are 3-2 necessary. 3-3 Sec. 2306.589. COLONIA SET-ASIDE FUND. (a) The department 3-4 shall establish a fund in the department designated as the colonia 3-5 set-aside fund. 3-6 (b) The department may use money in the colonia set-aside 3-7 fund for specific activities that assist colonias, including: 3-8 (1) the operation and activities of the self-help 3-9 centers established under this subchapter; or 3-10 (2) reimbursement of colonia advisory committee 3-11 members for their reasonable expenses in the manner provided by 3-12 Article 6252-33, Revised Statutes, or the General Appropriations 3-13 Act. 3-14 (c) The department may review and approve an application for 3-15 funding from the colonia set-aside fund that advances the policy 3-16 and goals of the state in addressing problems in the colonias. 3-17 SECTION 2. The Texas Department of Housing and Community 3-18 Affairs shall allocate not less than 12.5 percent of the yearly 3-19 allocation of community development block grant funds received from 3-20 the United States Department of Housing and Urban Development to 3-21 the colonia set-aside fund to achieve the purposes of Subchapter Z, 3-22 Chapter 2306, Government Code, as added by this Act. The 3-23 department shall allocate an amount from the colonia set-aside fund 3-24 that is not less than two and one-half percent of the yearly 3-25 allocation of community development block grant funds received from 3-26 the United States Department of Housing and Urban Development for 3-27 funding the operation of the colonia self-help centers. 3-28 SECTION 3. This Act takes effect September 1, 1995. 3-29 SECTION 4. The importance of this legislation and the 3-30 crowded condition of the calendars in both houses create an 3-31 emergency and an imperative public necessity that the 3-32 constitutional rule requiring bills to be read on three several 3-33 days in each house be suspended, and this rule is hereby suspended. 3-34 * * * * *