Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Ehrhardt H.B. No. 1666
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the operation of the Texas Department of Housing and
1-3 Community Affairs and the availability of affordable housing;
1-4 providing for the issuance of revenue bonds.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 2306.001, Government Code, is amended to
1-7 read as follows:
1-8 Sec. 2306.001. Purposes. The purposes of the department are
1-9 to:
1-10 (1) assist local governments in:
1-11 (A) providing essential public services for
1-12 their residents; and
1-13 (B) overcoming financial, social, and
1-14 environmental problems;
1-15 (2) provide for the housing needs of individuals and
1-16 families of low, very low, and extremely low income and families of
1-17 moderate income;
1-18 (3) contribute to the preservation, development, and
1-19 redevelopment of neighborhoods and communities, including the
1-20 preservation of government-assisted housing occupied by individuals
1-21 and families of very low and extremely low income;
1-22 (4) assist the governor and the legislature in
1-23 coordinating federal and state programs affecting local government;
1-24 [and]
2-1 (5) inform state officials and the public of the needs
2-2 of local government; and
2-3 (6) assist public housing authorities by using
2-4 available financing mechanisms to refinance, rehabilitate, and
2-5 construct decent, safe, and affordable housing projects.
2-6 SECTION 2. Section 2306.002, Government Code, is amended to
2-7 read as follows:
2-8 Sec. 2306.002. Policy. (a) The legislature finds that:
2-9 (1) every resident of this state should have a decent,
2-10 safe, and affordable living environment;
2-11 (2) government at all levels should be involved in
2-12 assisting individuals and families of low, very low, and extremely
2-13 low income in obtaining a decent, safe, and affordable living
2-14 environment; and
2-15 (3) the development and diversification of the
2-16 economy, the elimination of unemployment or underemployment, and
2-17 the development or expansion of commerce in this state should be
2-18 encouraged.
2-19 (b) The highest priority of the department is to provide
2-20 assistance to individuals and families of low, [and] very low, and
2-21 extremely low income who are not assisted by private enterprise or
2-22 other governmental programs so that they may obtain affordable
2-23 housing or other services and programs offered by the department.
2-24 SECTION 3. Section 2306.004, Government Code, is amended to
2-25 read as follows:
2-26 Sec. 2306.004. Definitions. In this chapter:
2-27 (1) "Board" means the governing board of the
2-28 department.
2-29 (2) "Bond" means an evidence of indebtedness or other
2-30 obligation, regardless of the source of payment, issued by the
3-1 department under Subchapter P, including a bond, note, or bond or
3-2 revenue anticipation note, regardless of whether the obligation is
3-3 general or special, negotiable or nonnegotiable, in bearer or
3-4 registered form, in certified or book-entry form, in temporary or
3-5 permanent form, or with or without interest coupons.
3-6 (3) "Department" means the Texas Department of Housing
3-7 and Community Affairs.
3-8 (4) "Director" means the executive director of the
3-9 department.
3-10 (5) "Economically depressed or blighted area" means an
3-11 area:
3-12 (A) that has been determined by the housing
3-13 finance division to be a qualified census tract or an area of
3-14 chronic economic distress under Section 103A, Internal Revenue Code
3-15 of 1954 (26 U.S.C. Section 103A);
3-16 (B) established in a municipality that has a
3-17 substantial number of substandard, slum, deteriorated, or
3-18 deteriorating structures and that suffers from a high relative rate
3-19 of unemployment; or
3-20 (C) that has been designed and included in a tax
3-21 increment district created under Chapter 695, Acts of the 66th
3-22 Legislature, Regular Session, 1979 (Article 1066d, Vernon's Texas
3-23 Civil Statutes).
3-24 (6) "Elderly individual" means an individual 60 years
3-25 of age or older.
3-26 (8) "Family of moderate income" means a family:
3-27 (A) that is determined by the board to require
3-28 assistance, taking into account:
3-29 (i) the amount of the total income
3-30 available for housing needs of the individuals and families;
4-1 (ii) the size of the family;
4-2 (iii) the cost and condition of available
4-3 housing facilities;
4-4 (iv) the ability of the individuals and
4-5 families to compete successfully in the private housing market and
4-6 to pay the amounts required by private enterprise for sanitary,
4-7 decent, and safe housing; and
4-8 (v) standards established for various
4-9 federal programs determining eligibility based on income;
4-10 (B) that does not qualify as a family of low,
4-11 very low, or extremely low income.
4-12 (8) "Federal government" means the United States of
4-13 America and includes any corporate or other instrumentality of the
4-14 United States of America, including the Resolution Trust
4-15 Corporation.
4-16 (9) "Federal mortgage" means a mortgage loan for
4-17 residential housing:
4-18 (A) that is made by the federal government; or
4-19 (B) for which a commitment to make has been
4-20 given by the federal government.
4-21 (10) "Federally assisted new communities" means
4-22 federally assisted areas that receive or will receive assistance in
4-23 the form of loan guarantees under Title X of the National Housing
4-24 Act (12 U.S.C. Section 1701 et seq.), and a portion of that
4-25 federally assisted area has received grants under Section 107(a)(1)
4-26 of the Housing and Community Development Act of 1974, as amended
4-27 (42 U.S.C. Section 5301 et seq.).
4-28 (11) "Federally insured mortgage" means a mortgage
4-29 loan for residential housing that:
4-30 (A) is insured or guaranteed by the federal
5-1 government; or
5-2 (B) the federal government has committed to
5-3 insure or guarantee.
5-4 (12) "Housing development" means property or work or a
5-5 project, building, structure, facility, or undertaking, whether
5-6 existing, new construction, remodeling, improvement, or
5-7 rehabilitation, that meets or is designed to meet minimum property
5-8 standards required by the department and that is financed under the
5-9 provisions of this chapter for the primary purpose of providing
5-10 sanitary, decent, and safe dwelling accommodations for rent, lease,
5-11 use, or purchase by individuals and families of low, [and] very
5-12 low, and extremely low income and families of moderate income in
5-13 need of housing. The term includes:
5-14 (A) buildings, structures, land, equipment,
5-15 facilities, or other real or personal properties that are
5-16 necessary, convenient, or desirable appurtenances, including
5-17 streets, water, sewers, utilities, parks, site preparation,
5-18 landscaping, stores, offices, and other nonhousing facilities, such
5-19 as administrative, community, and recreational facilities the
5-20 department determines to be necessary, convenient, or desirable
5-21 appurtenances; and
5-22 (B) single and multifamily dwellings in rural
5-23 and urban areas.
5-24 (13) "Housing sponsor" means:
5-25 (A) an individual, including an individual or
5-26 family of low, [and] very low, or extremely low income or family of
5-27 moderate income, joint venture, partnership, limited partnership,
5-28 trust, firm, corporation, or cooperative that is approved by the
5-29 department as qualified to own, construct, acquire, rehabilitate,
5-30 operate, manage, or maintain a housing development, subject to the
6-1 regulatory powers of the department and other terms and conditions
6-2 in this chapter; or
6-3 (B) in an economically depressed or blighted
6-4 area, or in a federally assisted new community located within a
6-5 home-rule municipality, the term may include an individual or
6-6 family whose income exceeds the moderate income level if at least
6-7 90 percent of the total mortgage amount available under a mortgage
6-8 revenue bond issue is designated for individuals and families of
6-9 low, very low, and extremely low income or families of moderate
6-10 income.
6-11 (14) "Individuals and families of low income" means
6-12 individuals and families earning not more than 80 percent of the
6-13 area median income or applicable federal poverty line, as
6-14 determined under Section 2306.123.
6-15 (15) "Individuals and families of very low income"
6-16 means individuals and families earning not more than 50 [60]
6-17 percent of the area median income or applicable federal poverty
6-18 line, as determined under Section 2306.123.
6-19 (16) "Individuals and families of extremely low
6-20 income" means individuals and families earning not more than 30
6-21 percent of the area median income or applicable federal poverty
6-22 line, as determined under Section 2306.123.
6-23 (17) [(16)] "Land development" means:
6-24 (A) acquiring land for residential housing
6-25 construction; and
6-26 (B) making, installing, or constructing
6-27 nonresidential improvements that the department determines are
6-28 necessary or desirable for a housing development to be financed by
6-29 the department, including:
6-30 (i) waterlines and water supply
7-1 installations;
7-2 (ii) sewer lines and sewage disposal
7-3 installations;
7-4 (iii) steam, gas, and electric lines and
7-5 installations; and
7-6 (iv) roads, streets, curbs, gutters, and
7-7 sidewalks, whether on or off the site.
7-8 (18) [(17)] "Local government" means a county,
7-9 municipality, special district, or any other political subdivision
7-10 of the state, a public, nonprofit housing finance corporation
7-11 created under Chapter 394, Local Government Code, or a combination
7-12 of those entities.
7-13 (19) [(18)] "Mortgage" means an interest-bearing
7-14 obligation, including a mortgage, mortgage deed, bond, note, deed
7-15 of trust, or other instrument, that is a lien:
7-16 (A) on real property; or
7-17 (B) on a leasehold under a lease having a
7-18 remaining term that, at the time the lien is acquired, does not
7-19 expire until after the maturity date of the interest-bearing
7-20 obligation secured by the lien.
7-21 (20) [(19)] "Mortgage lender" means a bank, trust
7-22 company, savings bank, mortgage company, mortgage banker, credit
7-23 union, national banking association, savings and loan association,
7-24 life insurance company, or other financial institution authorized
7-25 to transact business in this state and approved as a mortgage
7-26 lender by the department.
7-27 (21) [(20)] "Mortgage loan" means an interest-bearing
7-28 obligation secured by a mortgage.
7-29 (22) [(21)] "Municipality" includes only a
7-30 municipality in this state.
8-1 (23) [(22)] "Public agency" means an agency, board,
8-2 authority, department, commission, political subdivision, municipal
8-3 corporation, district, public corporation, body politic, or
8-4 instrumentality of this state, including a county, municipality,
8-5 housing authority, state-supported institution of higher education,
8-6 school district, junior college, other district or authority, or
8-7 other type of governmental entity of this state.
8-8 (24) [(23)] "Real estate owned contractor" means a
8-9 person required to meet the obligations of a contract with the
8-10 housing finance division for managing and marketing foreclosed
8-11 property.
8-12 (25) [(24)] "Real property" means land, including
8-13 improvements and fixtures on the land, property of any nature
8-14 appurtenant to the land or used in connection with the land, and a
8-15 legal or equitable estate, interest, or right in land, including
8-16 leasehold interests, terms for years, and a judgment, mortgage, or
8-17 other lien.
8-18 (26) [(25)] "Reserve fund" means the housing finance
8-19 division's reserve fund.
8-20 (27) [(26)] "Residential housing" means a specific
8-21 work or improvement undertaken primarily to provide dwelling
8-22 accommodations, including the acquisition, construction,
8-23 reconstruction, remodeling, improvement, or rehabilitation of land
8-24 and buildings and improvements to the buildings for residential
8-25 housing and other incidental or appurtenant nonhousing facilities.
8-26 (28) [(27)] "Servicer" means a person required to meet
8-27 contractual obligations with the housing finance division or with a
8-28 mortgage lender relating to a loan financed under Subchapter J,
8-29 including:
8-30 (A) purchasing mortgage certificates backed by
9-1 mortgage loans;
9-2 (B) collecting principal and interest from the
9-3 borrower;
9-4 (C) sending principal and interest payments to
9-5 the division;
9-6 (D) preparing periodic reports;
9-7 (E) notifying the primary mortgage and pool
9-8 insurers of delinquent and foreclosed loans; and
9-9 (F) filing insurance claims on foreclosed
9-10 property.
9-11 (29) "State low income housing plan" means the
9-12 comprehensive and integrated plan for the state assessment of
9-13 housing needs and allocation of housing resources.
9-14 SECTION 4. Section 2306.027(a), Government Code, is amended
9-15 to read as follows:
9-16 (a) The governor shall make appointments to the board as
9-17 follows:
9-18 (1) Place 1: an individual representing lending
9-19 institutions;
9-20 (2) Place 2: an individual representing local
9-21 government;
9-22 (3) Place 3: an individual representing housing
9-23 construction;
9-24 (4) Place 4: an individual representing
9-25 community-based nonprofit housing organizations;
9-26 (5) Place 5: an individual representing realtors or
9-27 housing developers;
9-28 (6) Place 6: an individual representing individuals
9-29 and families of low, [or] very low,and extremely low income; and
9-30 (7) Places 7 through 9: public members.
10-1 SECTION 5. Section 2306.053(b), Government Code, is amended
10-2 to read as follows:
10-3 (b) The department may:
10-4 (1) sue and be sued, or plead and be impleaded;
10-5 (2) act for and on behalf of this state;
10-6 (3) adopt an official seal or alter it;
10-7 (4) adopt and enforce bylaws and rules;
10-8 (5) contract with the federal government, state, any
10-9 public agency, mortgage lender, person, or other entity;
10-10 (6) designate mortgage lenders to act for the
10-11 department for the origination, processing, and servicing of the
10-12 department's mortgage loans under conditions agreed to by the
10-13 parties;
10-14 (7) provide, contract, or arrange for consolidated
10-15 processing of a housing development to avoid duplication;
10-16 (8) encourage homeless individuals and individuals of
10-17 low, [or] very low, and extremely low income to attend the
10-18 department's educational programs and assist those individuals in
10-19 attending the programs;
10-20 (9) appoint and determine the qualifications, duties,
10-21 and tenure of its agents, counselors, and professional advisors,
10-22 including accountants, appraisers, architects, engineers, financial
10-23 consultants, housing construction and financing experts, and real
10-24 estate consultants;
10-25 (10) administer federal housing, community affairs, or
10-26 community development programs, including the low income housing
10-27 tax credit program;
10-28 (11) establish eligibility criteria for individuals
10-29 and families of low, very low, and extremely low income and
10-30 families of moderate income to participate in and benefit from
11-1 programs administered by the department; and
11-2 (12) do all things necessary, convenient, or desirable
11-3 to carry out the powers expressly granted or necessarily implied by
11-4 this chapter.
11-5 SECTION 6. Subchapter C, Chapter 2306, Government Code, is
11-6 amended by adding Sections 2306.057 and 2306.058 to read as
11-7 follows:
11-8 Sec. 2306.057. LOW INCOME HOUSING TAX CREDIT PROGRAM. (a)
11-9 Not later than January 15 of each year, the department shall
11-10 prepare and submit to the board for adoption the qualified
11-11 allocation plan required by federal law for use by the department
11-12 in setting certain criteria and priorities for the allocation of
11-13 tax credits under the low income housing tax credit program.
11-14 (b) The board shall adopt and submit to the governor the
11-15 qualified allocation plan not later than February 15th.
11-16 (c) The governor shall approve, reject, or modify and
11-17 approve the qualified allocation plan not later than March 15th.
11-18 (d) The deadline for applicants to submit an application to
11-19 the department for low income housing tax credits shall be June
11-20 1st.
11-21 (e) The board shall allocate low income housing tax credits
11-22 each year in accordance with the qualified allocation plan not
11-23 later than August 31st.
11-24 (f) The department shall provide a preference in the
11-25 allocation of low income housing tax credits to applicants that:
11-26 (1) meet the department's application scoring and
11-27 underwriting criteria; and
11-28 (2) agree to sell the properties receiving the
11-29 allocation of low income housing tax credits at the end of the
11-30 statutory compliance period to a qualified nonprofit corporation or
12-1 to the department in accordance with Section 42 (I)(7), Internal
12-2 Revenue Code of 1886 (26 U.S.C. Section 42 (i)(7)). The department
12-3 shall administer the sale of the property.
12-4 (g) Not later than two years before the expiration of the
12-5 15-year compliance period, a recipient of a low income housing tax
12-6 credit that signed an agreement under Subsection (e) shall notify
12-7 the department of the recipient's intent to sell the property in
12-8 compliance with the agreement. The recipient may:
12-9 (1) during the first six month period after notifying
12-10 the department, negotiate or enter into a purchase agreement only
12-11 with a qualified nonprofit organization that is also a community
12-12 housing development organization as defined by the federal home
12-13 investment partnership program (HOME);
12-14 (2) during the second six month period after notifying
12-15 the department, negotiate or enter into a purchase agreement with
12-16 any qualified nonprofit organization; and
12-17 (3) during the year before the expiration of the
12-18 15-year compliance period, negotiate or enter into a purchase
12-19 agreement with the department or a qualified nonprofit organization
12-20 approved by the department.
12-21 (h) The board by rule shall develop and implement a program
12-22 to purchase low income housing tax credit property that is not
12-23 purchased by a qualified nonprofit organization. The department
12-24 may not purchase low income housing tax credit property if the
12-25 board finds that the purchase is not in the best interests of the
12-26 state.
12-27 (i) A recipient of a low income housing tax credit is not
12-28 prohibited by this section from selling property to which the tax
12-29 credit applies to any purchaser after the expiration of the
12-30 compliance period if a qualified nonprofit organization does not
13-1 make a reasonable offer and the department declines to purchase the
13-2 property.
13-3 Sec. 2306.058. PUBLIC INFORMATION AND HEARINGS ON LOW INCOME
13-4 HOUSING TAX CREDIT PROGRAM. (a) The department shall provide
13-5 information regarding the low income housing tax credit program,
13-6 including notice of public hearings, meetings, and opening and
13-7 closing dates for applications for a low income housing tax credit,
13-8 to local housing departments, newspapers, churches, nonprofit
13-9 organizations, residents of projects that are the subject of tax
13-10 credit applications, and other interested persons who request the
13-11 information.
13-12 (b) The department shall hold at least three public hearings
13-13 in different regions of the state to receive public comments on low
13-14 income housing tax credit applications. The department shall make
13-15 copies of submitted applications for low income housing tax credits
13-16 available to the public at least 30 days before the date of each
13-17 public hearing.
13-18 SECTION 7. Subchapter D, Chapter 2306, Government Code, is
13-19 amended by adding Section 2306.0661 to read as follows:
13-20 Sec. 2306.0661. PUBLIC HEARINGS. (a) The department shall
13-21 encourage informed and effective public participation in the
13-22 department's programs and operations through holding public
13-23 hearings and soliciting and accepting public comments during those
13-24 hearings. In holding a public hearing, the department shall ensure
13-25 that:
13-26 (1) the location of the hearing is:
13-27 (A) in a public building or facility;
13-28 (B) accessible to persons with disabilities; and
13-29 (C) reasonably accessible by public
13-30 transportation;
14-1 (2) the hearing is scheduled at a time that does not
14-2 conflict with the ordinary work day so that more persons are able
14-3 to attend; and
14-4 (3) child care is provided during the hearing if the
14-5 department anticipates more than 50 persons in attendance.
14-6 (b) In scheduling a public hearing, the department shall:
14-7 (1) publish notice of the time, place, and subject of
14-8 the hearing in a newspaper of general circulation in the community
14-9 in which the hearing is to be held not later than the 21st day
14-10 before the date of the hearing;
14-11 (2) provide notice of the hearing to each public
14-12 library in the community in which the hearing is to be held for
14-13 posting in a public area of the library;
14-14 (3) provide notice of the hearing to:
14-15 (A) each member of the board; and
14-16 (B) each member of an advisory committee
14-17 consulted by the department during preparation of the state low
14-18 income housing plan;
14-19 (4) make a reasonable effort to inform interested
14-20 persons and organizations of the hearing;
14-21 (5) make information about the hearing, including
14-22 documents, proposals, and plans to be discussed at the hearing,
14-23 available through the Internet in accordance with Section 2306.077;
14-24 and
14-25 (6) provide an opportunity for persons to transmit
14-26 comments on the subject of the hearing through the Internet, in
14-27 accordance with rules adopted by the board.
14-28 SECTION 8. Section 2306.068, Government Code, is amended to
14-29 read as follows:
14-30 Sec. 2306.068. Interagency Cooperation. An agency or
15-1 institution of the state shall cooperate with the department by
15-2 providing personnel, information, and technical advice as the
15-3 department assists the governor in:
15-4 (1) the coordination of federal and state activities
15-5 affecting local government; and
15-6 (2) providing affordable housing for individuals and
15-7 families of low, [and] very low, and extremely low income and
15-8 families of moderate income.
15-9 SECTION 9. Section 2306.072, Government Code, is amended by
15-10 amending Subsections (a) and (c) and adding Subsection (d) to read
15-11 as follows:
15-12 (a) Not later than March 1 of each year [the 100th day after
15-13 the last day of the fiscal year], the director shall prepare and
15-14 submit to the board an annual report of the department's activities
15-15 for the preceding fiscal year.
15-16 (c) The report must include:
15-17 (1) a complete operating and financial statement of
15-18 the department;
15-19 (2) a comprehensive statement of the activities of the
15-20 department during the preceding fiscal year to address the needs
15-21 identified in the state low income housing plan prepared as
15-22 required by Section 2306.0721, including:
15-23 (A) a statistical and narrative analysis of the
15-24 department's performance in addressing the housing needs of
15-25 individuals and families of low, [and] very low, and extremely low
15-26 income;
15-27 (B) the ethnic and racial composition of
15-28 individuals and families applying for and receiving assistance from
15-29 each housing-related program operated by the department; and
15-30 (C) the department's progress in meeting the
16-1 goals established in the previous housing plan;
16-2 (3) an explanation of the efforts made by the
16-3 department to ensure the participation of individuals of low, very
16-4 low, and extremely low income and their community-based
16-5 institutions in every aspect of department programs that affect
16-6 them;
16-7 (4) a statement of the evidence that the department
16-8 has made an affirmative effort to ensure the involvement of
16-9 individuals of low, very low, and extremely low income and their
16-10 community-based institutions in the allocation of funds and the
16-11 planning process;
16-12 (5) a statistical analysis, delineated according to
16-13 each ethnic and racial group served by the department, that
16-14 indicates the progress made by the department in implementing the
16-15 state low income housing plan in each of the uniform state service
16-16 regions; and
16-17 (6) an analysis of fair housing opportunities in each
16-18 housing development that receives financial assistance from the
16-19 department that includes the following information for each housing
16-20 development that contains 20 or more living units:
16-21 (A) the street address and municipality or
16-22 county in which the property is located;
16-23 (B) the total number of units reported by
16-24 bedroom size;
16-25 (C) the total number of units designed for
16-26 individuals who are physically challenged or who have special needs
16-27 and the number of these individuals served annually as reported by
16-28 each housing sponsor;
16-29 (D) a statistical analysis of average rents
16-30 reported by region, as defined in the comprehensive housing
17-1 affordability strategy;
17-2 (E) the race or ethnic makeup of each project as
17-3 reported annually by each housing sponsor;
17-4 (F) the number of units occupied by individuals
17-5 receiving government-supported housing assistance as reported by
17-6 each housing sponsor;
17-7 (G) a statement as to whether the department has
17-8 been notified of a violation of the fair housing law that has been
17-9 filed with the United States Department of Housing and Urban
17-10 Development, the Commission on Human Rights, or the United States
17-11 Department of Justice; and
17-12 (H) a statement as to whether the development
17-13 has any instances of material noncompliance with bond indentures or
17-14 deed restrictions discovered through the normal monitoring
17-15 activities and procedures that include meeting occupancy
17-16 requirements or rent restrictions imposed by deed restriction or
17-17 financing agreements.
17-18 (d) A report submitted to the governor and the legislature
17-19 in each even-numbered year must:
17-20 (1) include recommendations designed to strengthen and
17-21 support the Neighborhood Partnership Program in providing home
17-22 ownership opportunities to individuals and families of low, very
17-23 low, and extremely low income; and
17-24 (2) describe in detail actions the department has
17-25 taken to assist small municipalities and rural areas in obtaining
17-26 matching funds from public and private sources for participation in
17-27 the Neighborhood Partnership Program.
17-28 SECTION 10. Section 2306.0721, Government Code, is amended
17-29 by amending Subsections (a) and (c) and adding Subsections (d) and
17-30 (e) to read as follows:
18-1 (a) Not later than March 1 of each year [the 100th day after
18-2 the last day of the fiscal year], the director shall prepare and
18-3 submit to the board an integrated state low income housing plan for
18-4 the next fiscal year.
18-5 (c) The plan must include:
18-6 (1) an estimate and analysis of the housing needs of
18-7 the following populations in the state:
18-8 (A) individuals and families of moderate, low,
18-9 [and] very low, and extremely low income;
18-10 (B) individuals with special needs; and
18-11 (C) homeless individuals;
18-12 (2) a proposal to use all available housing resources
18-13 to address the housing needs of the populations described by
18-14 Subdivision (1) by establishing funding levels for all
18-15 housing-related programs;
18-16 (3) an estimate of the number of federally assisted
18-17 housing units available for individuals and families of low, [and]
18-18 very low, and extremely low income and individuals with special
18-19 needs in each uniform state service region in the state;
18-20 (4) a description of state rules and policies that
18-21 govern the use of all available housing resources;
18-22 (5) a resource allocation plan that targets all
18-23 available housing resources to individuals and families of low,
18-24 [and] very low, and extremely low income and individuals with
18-25 special needs;
18-26 (6) a description of the department's efforts to
18-27 monitor and analyze the unused or underused federal resources of
18-28 other state agencies for housing-related services and services for
18-29 homeless individuals and the department's recommendations to ensure
18-30 the full use by the state of all available federal resources for
19-1 those services; [and]
19-2 (7) strategies to provide housing for individuals and
19-3 families with special needs;
19-4 (8) a description of the department's efforts to
19-5 encourage the construction of housing units that incorporate energy
19-6 efficient construction and appliances; and
19-7 (9) other information that the state is required to
19-8 include in the annual consolidated plan submitted to the United
19-9 States Department of Housing and Urban Development.
19-10 (d) The priorities and policies in another plan adopted by
19-11 the department must be consistent with the priorities and policies
19-12 established in the state low income housing plan.
19-13 (e) The department shall submit the plan as the annual
19-14 consolidated plan required by the United States Department of
19-15 Housing and Urban Development.
19-16 SECTION 11. Section 2306.0722, Government Code, is amended
19-17 to read as follows:
19-18 Sec. 2306.0722. Preparation of Plan and Report. (a) Before
19-19 preparing the annual report under Section 2306.072 and the state
19-20 low income housing plan under Section 2306.0721, the director shall
19-21 meet with representatives of groups with an interest in low income
19-22 housing, nonprofit housing organizations, local government
19-23 officials, residents of low income housing, and other individuals
19-24 of low, very low, and extremely low income. The director shall
19-25 obtain the representatives' comments and suggestions related to the
19-26 prioritization and allocation of the department's resources related
19-27 to housing.
19-28 (b) In preparing the annual report under Section 2306.072
19-29 and the state low income housing plan under Section 2306.0721, the
19-30 director shall:
20-1 (1) coordinate local, state, and federal housing
20-2 resources, including tax exempt housing bond financing and low
20-3 income housing tax credits;
20-4 (2) set priorities for the available housing resources
20-5 to help the neediest individuals;
20-6 (3) evaluate the success of publicly supported housing
20-7 programs;
20-8 (4) survey and identify the unmet housing needs of
20-9 individuals the department is required to assist;
20-10 (5) ensure that housing programs benefit an individual
20-11 without regard to the individual's race, ethnicity, sex, or
20-12 national origin;
20-13 (6) develop housing opportunities for individuals of
20-14 low, [and] very low, and extremely low income and individuals with
20-15 special housing needs;
20-16 (7) develop housing programs through an open, fair,
20-17 and public process;
20-18 (8) set priorities for assistance in a manner that is
20-19 appropriate and consistent with the housing needs of the
20-20 populations described by Section 2306.0721(c)(1); [and]
20-21 (9) incorporate recommendations that are consistent
20-22 with the comprehensive housing affordability strategy and
20-23 performance report submitted annually by the state to the United
20-24 States Department of Housing and Urban Development; and
20-25 (10) identify the organizations and individuals
20-26 consulted by the department in preparing the annual report and
20-27 state low income housing plan and summarize and incorporate
20-28 comments and suggestions provided under Subsection (a).
20-29 SECTION 12. Section 2306.0723, Government Code, is amended
20-30 to read as follows:
21-1 Sec. 2306.0723. PUBLIC HEARINGS ON ANNUAL REPORT AND STATE
21-2 LOW INCOME HOUSING PLAN. (a) The department shall hold [a] public
21-3 hearings [hearing] on the annual report and the state low income
21-4 housing plan before the director submits the report and the plan to
21-5 the board. A public hearing shall be held in Dallas, El Paso,
21-6 Houston, and San Antonio and in at least three additional
21-7 municipalities selected by the department to represent
21-8 geographically diverse communities.
21-9 (b) In addition to any other necessary topics relating to
21-10 the annual report and the state low income housing plan, each
21-11 hearing must address:
21-12 (1) infrastructure needs;
21-13 (2) home ownership programs;
21-14 (3) rental housing programs;
21-15 (4) housing repair programs; and
21-16 (5) the concerns of individuals with special needs, as
21-17 defined by Section 2306.511.
21-18 (c) In addition to the notice required by Section
21-19 2306.0661(b), the department shall provide notice of each public
21-20 hearing required by Subsection (a) to:
21-21 (1) members of the legislature; and
21-22 (2) members of the advisory committee formed to assist
21-23 the department in developing the annual consolidated plan required
21-24 by the United States Department of Housing and Urban Development.
21-25 (d) The board shall hold a public hearing on the state low
21-26 income housing plan before the board submits the plan to the
21-27 governor and legislature.
21-28 (e) [(c)] The board shall include with the plan the board
21-29 submits to the governor and legislature a written report of public
21-30 comments on the plan.
22-1 SECTION 13. Subchapter D, Chapter 2306, Government Code, is
22-2 amended by adding Section 2306.077 to read as follows:
22-3 Sec. 2306.077. ELECTRONIC AVAILABILITY OF INFORMATION
22-4 THROUGH THE INTERNET. (a) In this section, "Internet" means the
22-5 largest nonproprietary nonprofit cooperative public computer
22-6 network, popularly known as the Internet.
22-7 (b) The department, to the extent it considers it to be
22-8 feasible and appropriate, shall make information on the
22-9 department's programs, public hearings, and scheduled public
22-10 meetings available to the public through the Internet.
22-11 (c) The access to information allowed by this section:
22-12 (1) is in addition to the public's free access to the
22-13 information through other electronic or print distribution of the
22-14 information; and
22-15 (2) does not alter, diminish, or relinquish any
22-16 copyright or other proprietary interest or entitlement of this
22-17 state or a private entity under contract with the state.
22-18 SECTION 14. Section 2306.093, Government Code, is amended to
22-19 read as follows:
22-20 Sec. 2306.093. Housing Assistance Goal. By action of
22-21 the board the community affairs division shall have a goal to apply
22-22 a minimum of 25 percent of the division's total housing-related
22-23 funds toward housing assistance for individuals and families of
22-24 very low and extremely low income.
22-25 SECTION 15. Section 2306.111(b), Government Code, is amended
22-26 to read as follows:
22-27 (b) The housing finance division shall adopt a goal to apply
22-28 a minimum of 25 percent of the division's total housing funds
22-29 toward housing assistance for individuals and families of very low
22-30 income and a minimum of 15 percent of the division's total housing
23-1 funds toward housing assistance for individuals and families of
23-2 extremely low income.
23-3 SECTION 16. Section 2306.125(a), Government Code, is amended
23-4 to read as follows:
23-5 (a) The department may institute a judicial action or
23-6 proceeding against a housing sponsor receiving a loan or owning a
23-7 housing development under this chapter to:
23-8 (1) enforce this chapter;
23-9 (2) enforce the terms and provisions of an agreement
23-10 or contract between the department and the recipient of a loan
23-11 under this chapter, including provisions regarding rental or
23-12 carrying charges and income limits as applied to tenants or
23-13 occupants;
23-14 (3) foreclose its mortgage; or
23-15 (4) protect:
23-16 (A) the public interest;
23-17 (B) individuals and families of low, [and] very
23-18 low, and extremely low income or families of moderate income;
23-19 (C) stockholders; or
23-20 (D) creditors of the sponsor.
23-21 SECTION 17. Section 2306.151, Government Code, is amended to
23-22 read as follows:
23-23 Sec. 2306.151. Target Strategy for Bond Proceeds. The board
23-24 shall have the specific duty and power to adopt a target strategy
23-25 for the percentage of mortgage revenue bond proceeds to be made
23-26 available to individuals and families of low, [and] very low, and
23-27 extremely low income.
23-28 SECTION 18. Section 2306.152, Government Code, is amended to
23-29 read as follows:
23-30 Sec. 2306.152. Eligibility Criteria. The board shall have
24-1 the specific duty and power to establish eligibility criteria for
24-2 participation in the housing finance division's programs for
24-3 individuals and families of low, [and] very low, and extremely low
24-4 income and families of middle and moderate income.
24-5 SECTION 19. Section 2306.171, Government Code, is amended to
24-6 read as follows:
24-7 Sec. 2306.171. General Duties of Department Relating to
24-8 Purposes of Housing Finance Division. The department shall:
24-9 (1) develop policies and programs designed to increase
24-10 the number of individuals and families of low, [and] very low, and
24-11 extremely low income that participate in the housing finance
24-12 division's programs;
24-13 (2) work with municipalities, public agencies, housing
24-14 sponsors, and nonprofit corporations to provide:
24-15 (A) information on division programs; and
24-16 (B) technical assistance to municipalities and
24-17 nonprofit corporations;
24-18 (3) encourage private and nonprofit corporations and
24-19 state organizations to match the division's funds to assist in
24-20 providing affordable housing to individuals and families of low,
24-21 [and] very low, and extremely low income and families of middle and
24-22 moderate income;
24-23 (4) provide matching funds to municipalities, public
24-24 agencies, housing sponsors, and nonprofit developers who qualify
24-25 under the division's programs; and
24-26 (5) administer the state's allocation of federal funds
24-27 provided under the rental rehabilitation grant program authorized
24-28 by Section 17, Title I, of the United States Housing Act of 1937
24-29 (42 U.S.C. Section 1437o).
24-30 SECTION 20. Section 2306.180, Government Code, is amended to
25-1 read as follows:
25-2 Sec. 2306.180. Encouraging Home Ownership. The department
25-3 may encourage individual or cooperative home ownership among
25-4 individuals and families of low, [and] very low, and extremely low
25-5 income and families of moderate income.
25-6 SECTION 21. Section 2306.182, Government Code, is amended to
25-7 read as follows:
25-8 Sec. 2306.182. Loans to Lenders. The department may make
25-9 loans to mortgage lenders, public agencies, or other housing
25-10 sponsors and use the proceeds to make loans for multifamily housing
25-11 developments that will be substantially occupied by individuals and
25-12 families of low, [and] very low, and extremely low income or
25-13 families of moderate income.
25-14 SECTION 22. Section 2306.202(b), Government Code, is amended
25-15 to read as follows:
25-16 (b) Use of the fund is limited to providing:
25-17 (1) assistance for individuals and families of low,
25-18 [and] very low, and extremely low income; and
25-19 (2) technical assistance and capacity building to
25-20 nonprofit organizations engaged in developing housing for
25-21 individuals and families of low, [and] very low, and extremely low
25-22 income.
25-23 SECTION 23. Section 2306.203, Government Code, is amended to
25-24 read as follows:
25-25 Sec. 2306.203. Rules Regarding Administration of Housing
25-26 Trust Fund. The board shall adopt rules to administer the housing
25-27 trust fund, including rules providing:
25-28 (1) that the division give priority to programs that
25-29 maximize federal resources;
25-30 (2) for a process to set priorities for use of the
26-1 fund, including the distribution of fund resources under a request
26-2 for a proposal process developed and approved by the board;
26-3 (3) that the criteria used to rank proposals will
26-4 include the:
26-5 (A) leveraging of federal resources;
26-6 (B) cost-effectiveness of a proposed
26-7 development; and
26-8 (C) extent to which individuals and families of
26-9 very low and extremely low income are served by the development;
26-10 (4) that funds may not be made available to a
26-11 development that permanently and involuntarily displaces
26-12 individuals and families of low, very low, and extremely low
26-13 income;
26-14 (5) that the board attempt to allocate funds to
26-15 achieve a broad geographical distribution with:
26-16 (A) special emphasis on equitably serving rural
26-17 and nonmetropolitan areas; and
26-18 (B) consideration of the number and percentage
26-19 of income-qualified families in different geographical areas; and
26-20 (6) that multifamily housing developed or
26-21 rehabilitated through the fund remain affordable to
26-22 income-qualified households for at least 20 years.
26-23 SECTION 24. Section 2306.221, Government Code, is amended to
26-24 read as follows:
26-25 Sec. 2306.221. Housing Development Loans. To finance the
26-26 purchase, construction, remodeling, improvement, or rehabilitation
26-27 of housing developments for residential housing designed and
26-28 planned for individuals and families of low, [and] very low, and
26-29 extremely low income and families of moderate income, the
26-30 department, on the terms and conditions stated in this chapter,
27-1 may:
27-2 (1) make, commit to make, and participate in the
27-3 making of mortgage loans, including federally insured loans to
27-4 housing sponsors; and
27-5 (2) make temporary loans and advances in anticipation
27-6 of permanent mortgage loans.
27-7 SECTION 25. Section 2306.222, Government Code, is amended to
27-8 read as follows:
27-9 Sec. 2306.222. Contracts and Agreements Regarding Housing
27-10 Developments. The department may enter into agreements and
27-11 contracts with housing sponsors and mortgage lenders under this
27-12 chapter to make or participate in mortgage loans for residential
27-13 housing for individuals and families of low, [and] very low, and
27-14 extremely low income and families of moderate income.
27-15 SECTION 26. Section 2306.223, Government Code, is amended to
27-16 read as follows:
27-17 Sec. 2306.223. Criteria for Financing Housing Development of
27-18 Housing Sponsor. Notwithstanding any other provision of this
27-19 chapter, the department may not finance a housing development
27-20 undertaken by a housing sponsor under this chapter, unless the
27-21 department first determines that:
27-22 (1) the housing development is necessary to provide
27-23 needed decent, safe, and sanitary housing at rentals or prices that
27-24 individuals or families of low, [and] very low, and extremely low
27-25 income or families of moderate income can afford;
27-26 (2) the housing sponsor undertaking the proposed
27-27 housing development will supply well-planned and well-designed
27-28 housing for individuals or families of low, [and] very low, and
27-29 extremely low income or families of moderate income;
27-30 (3) the housing sponsor is financially responsible;
28-1 (4) the financing of the housing development is a
28-2 public purpose and will provide a public benefit; and
28-3 (5) the housing development will be undertaken within
28-4 the authority granted by this chapter to the housing finance
28-5 division and the housing sponsor.
28-6 SECTION 27. Sections 2306.251(a) and (e), Government Code,
28-7 are amended to read as follows:
28-8 (a) The department may acquire and own real property on an
28-9 interim basis for sale or rental to:
28-10 (1) individuals and families of low, [and] very low,
28-11 and extremely low income; and
28-12 (2) nonprofit housing organizations and other housing
28-13 organizations to serve the needs of individuals and families of
28-14 low, [and] very low, and extremely low income.
28-15 (e) If the department acquires property under this section,
28-16 the department shall have an independent audit conducted annually
28-17 to analyze the property ownership program's:
28-18 (1) financial stability;
28-19 (2) cost-effectiveness; and
28-20 (3) effectiveness in serving individuals of low, [and]
28-21 very low, and extremely low income.
28-22 SECTION 28. Section 2306.252, Government Code, is amended to
28-23 read as follows.
28-24 Sec. 2306.252. [LOW AND VERY LOW INCOME] HOUSING RESOURCE
28-25 CENTER. (a) The board shall establish a [low and very low income]
28-26 housing resource center in the housing finance division.
28-27 (b) The center shall:
28-28 (1) provide educational material to housing advocates,
28-29 housing sponsors, borrowers, and tenants;
28-30 (2) provide technical assistance to nonprofit housing
29-1 sponsors;
29-2 (3) focus on marketing loans and other programs of the
29-3 housing finance division to individuals and families of low, [and]
29-4 very low, and extremely low income; and
29-5 (4) assist lenders in marketing loans to individuals
29-6 and families of low, [and] very low, and extremely low income.
29-7 (c) The primary mission of the housing resource center is to
29-8 assist individuals, local organizations, and local governments in
29-9 providing for the housing needs of individuals and families in
29-10 their communities by providing information to housing contractors,
29-11 nonprofit housing sponsors, and local governments on:
29-12 (1) local housing needs;
29-13 (2) housing programs;
29-14 (3) available funding sources; and
29-15 (4) laws that affect the creation, improvement, or
29-16 preservation of housing affordable to individuals and families of
29-17 low, very low, and extremely low income.
29-18 SECTION 29. Section 2306.273, Government Code, is amended to
29-19 read as follows:
29-20 Sec. 2306.273. Limitation on Application of Certain
29-21 Provisions of Subchapter. Sections 2306.261 through 2306.271 do
29-22 not apply to a housing development:
29-23 (1) for which individuals or families of low, [and]
29-24 very low, and extremely low income or families of moderate income
29-25 receive a mortgage loan under this chapter; and
29-26 (2) that initially is intended for occupancy by those
29-27 individuals or families.
29-28 SECTION 30. Section 2306.291(a), Government Code, is amended
29-29 to read as follows:
29-30 (a) The department may purchase and take assignments from
30-1 mortgage lenders or the federal government of notes and mortgages
30-2 evidencing loans or interest in loans for the construction,
30-3 remodeling, improvement or rehabilitation, purchase, leasing, or
30-4 refinancing of housing developments for individuals and families of
30-5 low, [and] very low, and extremely low income and families of
30-6 moderate income.
30-7 SECTION 31. Section 2306.292, Government Code, is amended to
30-8 read as follows:
30-9 Sec. 2306.292. Eligibility of Mortgage Loans for Purchase.
30-10 A mortgage loan or interest in a mortgage loan is not eligible for
30-11 purchase by or on behalf of the department from a mortgage lender
30-12 unless the mortgage lender certifies that the mortgage loan or
30-13 interest in the mortgage loan is for a housing development for
30-14 individuals or families of low, [and] very low, and extremely low
30-15 income or for families of moderate income.
30-16 SECTION 32. Section 2306.295, Government Code, is amended to
30-17 read as follows:
30-18 Sec. 2306.295. Rules Governing Purchase and Sale of Mortgage
30-19 Loans. The department shall adopt rules governing the purchase and
30-20 sale of mortgage loans and the application of sale proceeds,
30-21 including rules governing:
30-22 (1) procedures for submitting requests or inviting
30-23 proposals for the purchase and sale of mortgage loans or interest
30-24 in the mortgage loans;
30-25 (2) restrictions on the number of family units,
30-26 location, or other qualifications of residences to be financed by
30-27 residential mortgage loans;
30-28 (3) income limits of individuals and families of low,
30-29 [and] very low, and extremely low income or families of middle and
30-30 moderate income occupying a residence financed by a residential
31-1 mortgage loan;
31-2 (4) restrictions relating to the interest rates on
31-3 mortgage loans or the return realized by mortgage lenders;
31-4 (5) requirements for commitments by mortgage lenders
31-5 relating to mortgage loans;
31-6 (6) schedules of fees and charges necessary for
31-7 expenses and reserves of the housing finance division;
31-8 (7) resale of the housing development; and
31-9 (8) any other matter related to the power of the
31-10 department to purchase and sell mortgage loans or interests in
31-11 mortgage loans.
31-12 SECTION 33. Section 2306.311, Government Code, is amended to
31-13 read as follows:
31-14 Sec. 2306.311. Admission to Housing Developments. Admission
31-15 to a housing development financed under this chapter that is leased
31-16 to tenants is limited to individuals or families of low, [and] very
31-17 low, and extremely low income and families of moderate income.
31-18 SECTION 34. Section 2306.316, Government Code, is amended to
31-19 read as follows:
31-20 Sec. 2306.316. Limitation on Application of Subchapter.
31-21 This subchapter does not apply to a housing development:
31-22 (1) for which individuals or families of low, [and]
31-23 very low, and extremely low income or families of moderate income
31-24 receive a mortgage loan under this chapter; and
31-25 (2) that initially is intended for occupancy by those
31-26 persons or families.
31-27 SECTION 35. Subchapter P, Chapter 2306, Government Code, is
31-28 amended by adding Sections 2306.358 and 2306.359 to read as
31-29 follows:
31-30 Sec. 2306.358. ISSUANCE OF BONDS TO CERTAIN TAX EXEMPT
32-1 ORGANIZATIONS. (a) The department may issue revenue bonds and
32-2 shall use the proceeds of those bonds to lend money for a project
32-3 described by Subsection (b) of an organization that:
32-4 (1) is exempt from federal income tax under Section
32-5 501(a) of the Internal Revenue Code of 1986 by being listed as an
32-6 exempt organization in Section 501(c)(3) of that code (26 U.S.C.
32-7 Sections 501(a) and 501(c)(3)); and
32-8 (2) uses the money for a project that will provide
32-9 affordable housing to individuals and families of low, very low,
32-10 and extremely low income.
32-11 (b) To receive a loan under this section for a project, an
32-12 eligible organization must:
32-13 (1) demonstrate to the department that the project is
32-14 carefully and conservatively underwritten to:
32-15 (A) ensure that the project is well run, well
32-16 maintained, and financially viable; and
32-17 (B) minimize the risk of the organization's
32-18 default;
32-19 (2) ensure that at least 70 percent of the housing to
32-20 be provided under the project is affordable housing provided to
32-21 individuals and families of low, very low, and extremely low
32-22 income; and
32-23 (3) enter into an agreement with the department in
32-24 which the organization:
32-25 (A) agrees during the term of the agreement to
32-26 reserve at least 70 percent of the housing to be provided under the
32-27 project for individuals and families of low, very low, and
32-28 extremely low income;
32-29 (B) ensures that the reserved housing will
32-30 remain affordable to individuals and families of low, very low, and
33-1 extremely low income during the term of the agreement;
33-2 (C) agrees to not discriminate against a tenant
33-3 applicant solely because the applicant receives public rental
33-4 assistance payments, unless at least 25 percent of the housing
33-5 units provided under the project are occupied by tenants who
33-6 receive public rental assistance payments; and
33-7 (D) agrees to adhere to the income occupancy and
33-8 rent limitations that apply to projects under the low income
33-9 housing tax credit program.
33-10 (c) The agreement may provide for the lease or sale of the
33-11 project to a nonprofit corporation approved by the department
33-12 subject to the conditions specified in Subsection (b)(3).
33-13 (d) The department or the Texas Housing Corporation may not
33-14 use state or federal money or another resource to provide for
33-15 credit enhancement of a bond issued under this section unless the
33-16 money or resource is used to subsidize housing units, or the
33-17 prorated share of the units' amenities and common areas, that are
33-18 reserved exclusively for occupancy by individuals and families of
33-19 very low and extremely low income who are not required to pay more
33-20 than 33 percent of their income for rent.
33-21 Sec. 2306.359. TRANSFER OF CERTAIN FEES TO HOUSING TRUST
33-22 FUND. (a) Not later than August 31 of each year, the comptroller
33-23 shall:
33-24 (1) determine the amount of fees sufficient to cover
33-25 the reasonable costs and expenses of issuing bonds described by
33-26 Section 2306.358; and
33-27 (2) subtract that amount from the amount of fees the
33-28 department collects in connection with the issuance of those bonds.
33-29 (b) If a positive amount results from the computation under
33-30 Subsection (a), the comptroller shall transfer the computed amount
34-1 from the fund in which the fees are deposited to the housing trust
34-2 fund established under Subchapter I.
34-3 SECTION 36. Section 2306.581(1), Government Code, is amended
34-4 to read as follows:
34-5 (1) "Colonia" means a geographic area located in a
34-6 county some part of which is within 150 miles of the international
34-7 border of this state and that:
34-8 (A) has a majority population composed of
34-9 individuals and families of low, [income and] very low, and
34-10 extremely low income, based on the federal Office of Management and
34-11 Budget poverty index, and meets the qualifications of an
34-12 economically distressed area under Section 17.921, Water Code; or
34-13 (B) has the physical and economic
34-14 characteristics of a colonia, as determined by the department.
34-15 SECTION 37. Sections 2306.586(a) and (c), Government Code,
34-16 are amended to read as follows:
34-17 (a) The purpose of a self-help center is to assist
34-18 individuals and families of low, [income and] very low, and
34-19 extremely low income to finance, refinance, construct, improve, or
34-20 maintain a safe, suitable home in the colonias' designated service
34-21 area or in another area the department has determined is suitable.
34-22 (c) A self-help center may serve individuals and families of
34-23 low, [income and] very low, and extremely low income by:
34-24 (1) providing assistance in obtaining loans or grants
34-25 to build a home;
34-26 (2) teaching construction skills necessary to repair
34-27 or build a home;
34-28 (3) providing model home plans;
34-29 (4) operating a program to rent or provide tools for
34-30 home construction and improvement for the benefit of property
35-1 owners in colonias who are building or repairing a residence or
35-2 installing necessary residential infrastructure;
35-3 (5) helping to obtain, construct, access, or improve
35-4 the service and utility infrastructure designed to service
35-5 residences in a colonia, including potable water, wastewater
35-6 disposal, drainage, streets, and utilities;
35-7 (6) surveying or platting residential property that an
35-8 individual purchased without the benefit of a legal survey, plat,
35-9 or record;
35-10 (7) providing credit and debt counseling related to
35-11 home purchase and finance;
35-12 (8) applying for grants and loans to provide housing
35-13 and other needed community improvements;
35-14 (9) providing other services that the self-help
35-15 center, with the approval of the department, determines are
35-16 necessary to assist colonia residents in improving their physical
35-17 living conditions, including help in obtaining suitable alternative
35-18 housing outside of a colonia's area; and
35-19 (10) providing assistance in obtaining loans or grants
35-20 to enable an individual or a family to acquire fee simple title to
35-21 property that originally was purchased under a contract for a deed,
35-22 contract for sale, or other executory contract.
35-23 SECTION 38. Section 2306.605, Government Code, is amended to
35-24 read as follows:
35-25 Sec. 2306.605. Acceptance of Donations. The department may
35-26 accept gifts and grants of money or property under this chapter and
35-27 shall spend the money and use the property for the purpose for
35-28 which the donation was made, except that the expenditure of money
35-29 or use of property must promote the acceptance of HUD-Code
35-30 manufactured homes as a viable source of housing for extremely low,
36-1 very low, low, and moderate income families.
36-2 SECTION 39. Sections (7)(a) and (c), Chapter 1092, Acts of
36-3 the 70th Legislature, Regular Session, 1987 (Article 5190.9a,
36-4 Vernon's Texas Civil Statutes), are amended to read as follows:
36-5 (a) Except as provided in Subsection (b) of this section,
36-6 the issuer shall close on the bonds for which a reservation has
36-7 been granted not later than the 150th [90th] day after the
36-8 reservation date.
36-9 (c) If the issuer does not timely close on the bonds, the
36-10 issue's reservation is canceled and during the 180-day [120-day]
36-11 period beginning on the reservation date of the canceled
36-12 reservation:
36-13 (1) the issuer or any other issuer may not submit an
36-14 application for a reservation for the same project; and
36-15 (2) the issuer is eligible for a carryforward
36-16 designation for the project only as provided by Section 9 of this
36-17 Act.
36-18 SECTION 40. Section 2306.027(a)(6), Government Code, as
36-19 amended by this Act, does not apply to a person appointed to the
36-20 board of the Texas Department of Housing and Community Affairs
36-21 before the effective date of this Act.
36-22 SECTION 41. The changes in law made by Section 39 of this
36-23 Act apply to a bond issue the reservation date for which is after
36-24 the 90th day before the effective date of this Act.
36-25 SECTION 42. This Act does not affect the validity of any
36-26 type of assistance, including loans and grants, provided by the
36-27 Texas Department of Housing and Community Affairs before the
36-28 effective date of this Act.
36-29 SECTION 43. (a) Except as otherwise provided by this Act,
36-30 this Act takes effect immediately.
37-1 (b) Section 35 of this Act takes effect September 1, 1997.
37-2 SECTION 44. The importance of this legislation and the
37-3 crowded condition of the calendars in both houses create an
37-4 emergency and an imperative public necessity that the
37-5 constitutional rule requiring bills to be read on three several
37-6 days in each house be suspended, and this rule is hereby suspended,
37-7 and that this Act take effect and be in force according to its
37-8 terms, and it is so enacted.