By Farrar                                        H.B. No. 420

      75R1568 KKA-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to mortgage loans for very low income first-time home

 1-3     buyers funded through general obligation bonds.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 2306.352, Government Code, is amended by

 1-6     amending Subsection (a) and adding Subsections (d) and (e) to read

 1-7     as follows:

 1-8           (a)  The board by resolution may provide for the issuance of

 1-9     negotiable general obligation bonds as authorized by the Texas

1-10     Constitution.

1-11           (d)  Proceeds from the sale of the bonds shall be used to

1-12     provide mortgage loans for the purchase of a home in this state to

1-13     individuals and families of very low income who have not previously

1-14     owned a home.  A portion of the proceeds may be used in accordance

1-15     with Section 2306.373 or to pay costs associated with administering

1-16     the mortgage loans.

1-17           (e)  In this section, "home" means real property and

1-18     improvements on that property consisting of not more than four

1-19     dwelling units, including a condominium unit, in which a person

1-20     intends to reside as the person's principal residence.

1-21           SECTION 2.  This Act takes effect January 1, 1998, but only

1-22     if the constitutional amendment proposed by the 75th Legislature,

1-23     Regular Session, 1997, providing for the issuance of general

1-24     obligation bonds to finance mortgage loans for certain persons of

 2-1     low or very low income is approved by the voters.  If that

 2-2     amendment is not approved by the voters, this Act has no effect.

 2-3           SECTION 3.  The importance of this legislation and the

 2-4     crowded condition of the calendars in both houses create an

 2-5     emergency and an imperative public necessity that the

 2-6     constitutional rule requiring bills to be read on three several

 2-7     days in each house be suspended, and this rule is hereby suspended,

 2-8     and that this Act take effect and be in force from and after its

 2-9     passage, and it is so enacted.