Amend HB 2798 by adding the following SECTIONS 10, 11, 12,
13, 14, and 15 and renumber accordingly:
      SECTION 10.  Subdivision (13), Section 394.003, Local
Government Code, is amended to read as follows:
            (13)  "Residential development" means the acquisition,
construction, reconstruction, rehabilitation, repair, alteration,
improvement, or extension of any of the following items or any
combination of the following items for the purpose of providing
decent, safe, and sanitary housing and nonhousing facilities that
are an integral part of or are functionally related to any
affordable housing project whether in one or multiple locations
<the housing>:
                  (A)  land, an interest in land, a building or
other structure, facility, system, fixture, improvement, addition,
appurtenance, or machinery or other equipment;
                  (B)  real or personal property considered
necessary in connection with an item described by Paragraph (A); or
                  (C)  real or personal property or improvements
functionally related and subordinate to an item described by
Paragraph (A).
      SECTION 11.  Subsection (h), Section 394.012, Local
Government Code, is amended to read as follows:
      (h)  For the purposes of determining the applicable
population for Section 3b, Chapter 1092, Acts of the 70th
Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's Texas
Civil Statutes), the <The> joint housing finance corporation may
only consider areas in its own <not operate in more than one> state
planning region.
      SECTION 12.  Section 394.032, Local Government Code, is
amended by adding Subsection (e) to read as follows:
      (e)  A housing finance corporation may delegate to the Texas
Department of Housing and Community Affairs the authority to act on
its behalf in the financing, refinancing, acquisition, leasing,
ownership, improvement, and disposal of home mortgages or
residential developments, within and outside the jurisdiction of
the housing finance corporation, including its authority to issue
bonds for such purposes.
      SECTION 13.  Subsection (a), Section 394.037, Local
Government Code, is amended to read as follows:
      (a)  A housing finance corporation may issue bonds to defray,
in whole or in part:
            (1)  the development costs of a residential
development; or
            (2)  the costs of purchasing or funding the making of
home mortgages, either on a first come, first served basis or by
selling lender commitments, including the costs of studies and
surveys, insurance premiums, financial advisory services, mortgage
banking services, administrative services, underwriting fees, legal
services, accounting services, and marketing services incurred in
connection with the issuance and sale of the bonds, including bond
and interest reserve accounts, capitalized interest accounts, and
trustee, custodian, and rating agency fees.
      SECTION 14.  Subsection (a), Section 394.040, Local
Government Code, is amended to read as follows:
      (a)  A housing finance corporation may make, contract to
make, but is in no way required to make, and enter into advance
commitments to make home mortgages originated, administered, and
serviced by lending institutions.  It may pay the reasonable value
of services rendered under those contracts.  It may acquire,
contract to acquire, and enter into advance commitments to acquire,
by assignment or other means, home mortgages owned by lending
institutions at purchase prices and on other terms determined by
the corporation or its agent.
      SECTION 15.  Section 394.051, Local Government Code, is
amended by adding Subsection (h) to read as follows:
      (h)  The housing finance corporation is not required to sell
commitments to lenders to originate home mortgages.  A housing
finance corporation may establish a program so that lenders will
utilize the proceeds of the bonds to originate home mortgages on a
first come, first served basis.