1-1 AN ACT
1-2 relating to the Texas Department of Housing and Community Affairs
1-3 and to low income and affordable housing.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2166.003(a), Government Code, is amended
1-6 to read as follows:
1-7 (a) Unless otherwise provided, this chapter does not apply
1-8 to:
1-9 (1) a project constructed by and for the Texas
1-10 Department of Transportation;
1-11 (2) a project constructed by and for a state
1-12 institution of higher education;
1-13 (3) a pen, shed, or ancillary building constructed by
1-14 and for the Department of Agriculture for the processing of
1-15 livestock before export;
1-16 (4) a project constructed by the Parks and Wildlife
1-17 Department;
1-18 (5) a repair or rehabilitation project, except a major
1-19 renovation, of buildings and grounds on the commission inventory;
1-20 (6) a repair and rehabilitation project of another
1-21 using agency, if all labor for the project is provided by the
1-22 regular maintenance force of the using agency under specific
1-23 legislative authorization and the project does not require the
1-24 advance preparation of working plans or drawings; [or]
2-1 (7) a repair and rehabilitation project involving the
2-2 use of contract labor, if the project has been excluded from this
2-3 chapter by commission rule and does not require the advance
2-4 preparation of working plans or drawings; or
2-5 (8) a repair, rehabilitation, or construction project
2-6 on property owned by the Texas Department of Housing and Community
2-7 Affairs or the Texas State Affordable Housing Corporation.
2-8 SECTION 2. Section 2167.001(b), Government Code, is amended
2-9 to read as follows:
2-10 (b) This chapter does not apply to:
2-11 (1) aircraft hangar space;
2-12 (2) radio antenna space;
2-13 (3) boat storage space;
2-14 (4) vehicle parking space;
2-15 (5) residential space for a Texas Department of Mental
2-16 Health and Mental Retardation program;
2-17 (6) residential space for a Texas Youth Commission
2-18 program;
2-19 (7) space to be used for less than one month for
2-20 meetings, conferences, conventions, seminars, displays,
2-21 examinations, auctions, or similar purposes;
2-22 (8) district office space for members of the
2-23 legislature; [or]
2-24 (9) space used by the Texas Employment Commission; or
2-25 (10) residential property acquired by the Texas
2-26 Department of Housing and Community Affairs or the Texas State
2-27 Affordable Housing Corporation that is offered for sale or rental
3-1 to individuals and families of low or very low income or families
3-2 of moderate income.
3-3 SECTION 3. Section 2305.033(a), Government Code, is amended
3-4 to read as follows:
3-5 (a) The Texas Department of Housing and Community Affairs is
3-6 the supervising state agency for the emergency nutrition and
3-7 temporary emergency relief program established under Subchapter AA,
3-8 Chapter 2306 [Chapter 34, Human Resources Code].
3-9 SECTION 4. Section 2306.001, Government Code, is amended to
3-10 read as follows:
3-11 Sec. 2306.001. Purposes. The purposes of the department are
3-12 to:
3-13 (1) assist local governments in:
3-14 (A) providing essential public services for
3-15 their residents; and
3-16 (B) overcoming financial, social, and
3-17 environmental problems;
3-18 (2) provide for the housing needs of individuals and
3-19 families of low and very low income and families of moderate
3-20 income;
3-21 (3) contribute to the preservation, development, and
3-22 redevelopment of neighborhoods and communities, including
3-23 cooperation in the preservation of government-assisted housing
3-24 occupied by individuals and families of very low and extremely low
3-25 income;
3-26 (4) assist the governor and the legislature in
3-27 coordinating federal and state programs affecting local government;
4-1 and
4-2 (5) inform state officials and the public of the needs
4-3 of local government.
4-4 SECTION 5. Section 2306.004, Government Code, is amended to
4-5 read as follows:
4-6 Sec. 2306.004. DEFINITIONS. In this chapter:
4-7 (1) "Board" means the governing board of the
4-8 department.
4-9 (2) "Bond" means an evidence of indebtedness or other
4-10 obligation, regardless of the source of payment, issued by the
4-11 department under Subchapter P, including a bond, note, or bond or
4-12 revenue anticipation note, regardless of whether the obligation is
4-13 general or special, negotiable or nonnegotiable, in bearer or
4-14 registered form, in certified or book-entry form, in temporary or
4-15 permanent form, or with or without interest coupons.
4-16 (3) "Contract for Deed" means a seller-financed
4-17 contract for the conveyance of real property under which:
4-18 (A) legal title does not pass to the purchaser
4-19 until the consideration of the contract is fully paid to the
4-20 seller; and
4-21 (B) the seller's remedy for nonpayment is
4-22 recision or forfeiture or acceleration of any remaining payments
4-23 rather than judicial or nonjudicial foreclosure.
4-24 (4) "Department" means the Texas Department of Housing
4-25 and Community Affairs.
4-26 (5) [(4)] "Director" means the executive director of
4-27 the department.
5-1 (6) [(5)] "Economically depressed or blighted area"
5-2 means an area:
5-3 (A) that is a qualified census tract as defined
5-4 by Section 143(j), Internal Revenue Code of 1986 (26 U.S.C. Section
5-5 143(j)) or has been determined by the housing finance division to
5-6 be [a qualified census tract or] an area of chronic economic
5-7 distress under Section 143 [103A], Internal Revenue Code of 1986
5-8 [1954] (26 U.S.C. Section 143 [103A]);
5-9 (B) established in a municipality that has a
5-10 substantial number of substandard, slum, deteriorated, or
5-11 deteriorating structures and that suffers from a high relative rate
5-12 of unemployment; or
5-13 (C) that has been designated as [designed and
5-14 included in] a reinvestment zone [tax increment district created]
5-15 under Chapter 311, Tax Code [695, Acts of the 66th Legislature,
5-16 Regular Session, 1979 (Article 1066d, Vernon's Texas Civil
5-17 Statutes)].
5-18 (7) [(6)] "Elderly individual" means an individual 60
5-19 years of age or older or of an age specified by the applicable
5-20 federal program.
5-21 (8) [(7)] "Family of moderate income" means a family:
5-22 (A) that is determined by the board to require
5-23 assistance, taking into account:
5-24 (i) the amount of the total income
5-25 available for housing needs of the individuals and families;
5-26 (ii) the size of the family;
5-27 (iii) the cost and condition of available
6-1 housing facilities;
6-2 (iv) the ability of the individuals and
6-3 families to compete successfully in the private housing market and
6-4 to pay the amounts required by private enterprise for sanitary,
6-5 decent, and safe housing; and
6-6 (v) standards established for various
6-7 federal programs determining eligibility based on income; and
6-8 (B) that does not qualify as a family of low
6-9 income.
6-10 (9) [(8)] "Federal government" means the United States
6-11 of America and includes any corporate or other instrumentality of
6-12 the United States of America, including the Resolution Trust
6-13 Corporation.
6-14 (10) [(9)] "Federal mortgage" means a mortgage loan
6-15 for residential housing:
6-16 (A) that is made by the federal government; or
6-17 (B) for which a commitment to make has been
6-18 given by the federal government.
6-19 (11) [(10)] "Federally assisted new communities" means
6-20 federally assisted areas that receive or will receive assistance in
6-21 the form of loan guarantees under Title X of the National Housing
6-22 Act (12 U.S.C. Section 1701 et seq.), and a portion of that
6-23 federally assisted area has received grants under Section 107(a)(1)
6-24 of the Housing and Community Development Act of 1974, as amended
6-25 (42 U.S.C. Section 5301 et seq.).
6-26 (12) [(11)] "Federally insured mortgage" means a
6-27 mortgage loan for residential housing that:
7-1 (A) is insured or guaranteed by the federal
7-2 government; or
7-3 (B) the federal government has committed to
7-4 insure or guarantee.
7-5 (13) [(12)] "Housing development" means property or
7-6 work or a project, building, structure, facility, or undertaking,
7-7 whether existing, new construction, remodeling, improvement, or
7-8 rehabilitation, that meets or is designed to meet minimum property
7-9 standards required by the department and that is financed under the
7-10 provisions of this chapter for the primary purpose of providing
7-11 sanitary, decent, and safe dwelling accommodations for rent, lease,
7-12 use, or purchase by individuals and families of low and very low
7-13 income and families of moderate income in need of housing. The
7-14 term includes:
7-15 (A) buildings, structures, land, equipment,
7-16 facilities, or other real or personal properties that are
7-17 necessary, convenient, or desirable appurtenances, including
7-18 streets, water, sewers, utilities, parks, site preparation,
7-19 landscaping, stores, offices, and other nonhousing facilities, such
7-20 as administrative, community, and recreational facilities the
7-21 department determines to be necessary, convenient, or desirable
7-22 appurtenances; and
7-23 (B) single and multifamily dwellings in rural
7-24 and urban areas.
7-25 (14) [(13)] "Housing sponsor" means:
7-26 (A) an individual, including an individual or
7-27 family of low and very low income or family of moderate income,
8-1 joint venture, partnership, limited partnership, trust, firm,
8-2 corporation, or cooperative that is approved by the department as
8-3 qualified to own, construct, acquire, rehabilitate, operate,
8-4 manage, or maintain a housing development, subject to the
8-5 regulatory powers of the department and other terms and conditions
8-6 in this chapter; or
8-7 (B) in an economically depressed or blighted
8-8 area, or in a federally assisted new community located within a
8-9 home-rule municipality, the term may include an individual or
8-10 family whose income exceeds the moderate income level if at least
8-11 90 percent of the total mortgage amount available under a mortgage
8-12 revenue bond issue is designated for individuals and families of
8-13 low income or families of moderate income.
8-14 (15) [(14)] "Individuals and families of low income"
8-15 means individuals and families earning not more than 80 percent of
8-16 the area median income or applicable federal poverty line, as
8-17 determined under Section 2306.123 or Section 2306.1231.
8-18 (16) [(15)] "Individuals and families of very low
8-19 income" means individuals and families earning not more than 60
8-20 percent of the area median income or applicable federal poverty
8-21 line, as determined under Section 2306.123 or Section 2306.1231.
8-22 (17) "Individuals and families of extremely low
8-23 income" means individuals and families earning not more than 30
8-24 percent of the area median income or applicable federal poverty
8-25 line, as determined under Section 2306.123 or Section 2306.1231.
8-26 (18) [(16)] "Land development" means:
8-27 (A) acquiring land for residential housing
9-1 construction; and
9-2 (B) making, installing, or constructing
9-3 nonresidential improvements that the department determines are
9-4 necessary or desirable for a housing development to be financed by
9-5 the department, including:
9-6 (i) waterlines and water supply
9-7 installations;
9-8 (ii) sewer lines and sewage disposal
9-9 installations;
9-10 (iii) steam, gas, and electric lines and
9-11 installations; and
9-12 (iv) roads, streets, curbs, gutters, and
9-13 sidewalks, whether on or off the site.
9-14 (19) [(17)] "Local government" means a county,
9-15 municipality, special district, or any other political subdivision
9-16 of the state, a public, nonprofit housing finance corporation
9-17 created under Chapter 394, Local Government Code, or a combination
9-18 of those entities.
9-19 (20) [(18)] "Mortgage" means an [interest-bearing]
9-20 obligation, including a mortgage, mortgage deed, bond, note, deed
9-21 of trust, or other instrument, that is a lien:
9-22 (A) on real property; or
9-23 (B) on a leasehold under a lease having a
9-24 remaining term that, at the time the lien is acquired, does not
9-25 expire until after the maturity date of the [interest-bearing]
9-26 obligation secured by the lien.
9-27 (21) [(19)] "Mortgage lender" means a bank, trust
10-1 company, savings bank, mortgage company, mortgage banker, credit
10-2 union, national banking association, savings and loan association,
10-3 life insurance company, or other financial institution authorized
10-4 to transact business in this state and approved as a mortgage
10-5 lender by the department.
10-6 (22) [(20)] "Mortgage loan" means an
10-7 [interest-bearing] obligation secured by a mortgage.
10-8 (23) [(21)] "Municipality" includes only a
10-9 municipality in this state.
10-10 (24) [(22)] "Public agency" means the department or
10-11 any [an] agency, board, authority, department, commission,
10-12 political subdivision, municipal corporation, district, public
10-13 corporation, body politic, or instrumentality of this state,
10-14 including a county, municipality, housing authority,
10-15 state-supported institution of higher education, school district,
10-16 junior college, other district or authority, or other type of
10-17 governmental entity of this state.
10-18 (25) [(23)] "Real estate owned contractor" means a
10-19 person required to meet the obligations of a contract with the
10-20 department [housing finance division] for managing and marketing
10-21 foreclosed property.
10-22 (26) [(24)] "Real property" means land, including
10-23 improvements and fixtures on the land, property of any nature
10-24 appurtenant to the land or used in connection with the land, and a
10-25 legal or equitable estate, interest, or right in land, including
10-26 leasehold interests, terms for years, and a judgment, mortgage, or
10-27 other lien.
11-1 (27) [(25)] "Reserve fund" means any [the housing
11-2 finance division's] reserve fund established by the department.
11-3 (28) [(26)] "Residential housing" means a specific
11-4 work or improvement undertaken primarily to provide dwelling
11-5 accommodations, including the acquisition, construction,
11-6 reconstruction, remodeling, improvement, or rehabilitation of land
11-7 and buildings and improvements to the buildings for residential
11-8 housing and other incidental or appurtenant nonhousing facilities.
11-9 (29) [(27)] "Servicer" means a person required to meet
11-10 contractual obligations with the housing finance division or with a
11-11 mortgage lender relating to a loan financed under Subchapter J,
11-12 including:
11-13 (A) purchasing mortgage certificates backed by
11-14 mortgage loans;
11-15 (B) collecting principal and interest from the
11-16 borrower;
11-17 (C) sending principal and interest payments to
11-18 the division;
11-19 (D) preparing periodic reports;
11-20 (E) notifying the primary mortgage and pool
11-21 insurers of delinquent and foreclosed loans; and
11-22 (F) filing insurance claims on foreclosed
11-23 property.
11-24 (30) "State low income housing plan" means the
11-25 comprehensive and integrated plan for the state assessment of
11-26 housing needs and allocation of housing resources.
11-27 SECTION 6. Section 2306.007(a), Government Code, is amended
12-1 to read as follows:
12-2 (a) To establish an economically depressed or blighted area
12-3 under Section 2306.004(6)(B) [2306.004(5)(B)] or (C), the governing
12-4 body of a municipality must hold a public hearing and find that the
12-5 area:
12-6 (1) substantially impairs or arrests the sound growth
12-7 of the municipality; or
12-8 (2) is an economic or social liability and is a menace
12-9 to the public health, safety, morals, or welfare in its present
12-10 condition and use.
12-11 SECTION 7. Section 2306.021(b), Government Code, is amended
12-12 to read as follows:
12-13 (b) The department is composed of:
12-14 (1) the community affairs division;
12-15 (2) the housing finance division;
12-16 (3) the manufactured housing division; [and]
12-17 (4) the community development division; and
12-18 (5) any other division created by the director.
12-19 SECTION 8. Section 2306.032(b), Government Code, is amended
12-20 to read as follows:
12-21 (b) The board shall keep complete minutes of board meetings.
12-22 The accounts, minutes, and other records shall be maintained by
12-23 [kept at the principal office of] the department.
12-24 SECTION 9. Section 2306.033, Government Code, is amended by
12-25 amending Subsection (a) to read as follows:
12-26 (a) It is a ground for removal from the board that a member:
12-27 (1) does not have at the time of appointment the
13-1 qualifications required by Section 2306.026, 2306.027, or 2306.028
13-2 for appointment to the board;
13-3 (2) does not maintain during the service on the board
13-4 the qualifications required by Section 2306.026, 2306.027, or
13-5 2306.028 for appointment to the board;
13-6 (3) violates a prohibition established by Section
13-7 2306.034 or 2306.035;
13-8 (4) cannot discharge the member's duties for a
13-9 substantial part of the term for which the member is appointed
13-10 because of illness or disability; [or]
13-11 (5) is absent from more than half of the regularly
13-12 scheduled meetings of the board that the member is eligible to
13-13 attend during a calendar year unless the absence is excused by
13-14 majority vote of the board; or
13-15 (6) engages in misconduct or unethical or criminal
13-16 behavior.
13-17 SECTION 10. Subchapter B, Chapter 2306, Government Code, is
13-18 amended by adding Section 2306.039 to read as follows:
13-19 Sec. 2306.039. OPEN MEETINGS AND OPEN RECORDS. (a) Except
13-20 as provided by Subsection (b), the department and the Texas State
13-21 Affordable Housing Corporation are subject to Chapters 551 and 552.
13-22 (b) This section does not apply to the personal financial
13-23 information submitted by an individual or family for a loan, grant,
13-24 or other housing assistance under a program administered by the
13-25 department or the Texas State Affordable Housing Corporation or
13-26 from bonds issued by the department, except that the department and
13-27 the corporation are permitted to disclose information about any
14-1 applicant in a form that does not reveal the identity of the
14-2 individual or family for purposes of determining eligibility for
14-3 programs and in preparing reports required under this chapter.
14-4 SECTION 11. Section 2306.053(b), Government Code, is amended
14-5 to read as follows:
14-6 (b) The department may:
14-7 (1) sue and be sued, or plead and be impleaded;
14-8 (2) act for and on behalf of this state;
14-9 (3) adopt an official seal or alter it;
14-10 (4) adopt and enforce bylaws and rules;
14-11 (5) contract with the federal government, state, any
14-12 public agency, mortgage lender, person, or other entity;
14-13 (6) designate mortgage lenders to act for the
14-14 department for the origination, processing, and servicing of the
14-15 department's mortgage loans under conditions agreed to by the
14-16 parties;
14-17 (7) provide, contract, or arrange for consolidated
14-18 processing of a housing development to avoid duplication;
14-19 (8) encourage homeless individuals and individuals of
14-20 low or very low income to attend the department's educational
14-21 programs and assist those individuals in attending the programs;
14-22 (9) appoint and determine the qualifications, duties,
14-23 and tenure of its agents, counselors, and professional advisors,
14-24 including accountants, appraisers, architects, engineers, financial
14-25 consultants, housing construction and financing experts, and real
14-26 estate consultants;
14-27 (10) administer federal housing, community affairs, or
15-1 community development programs, including the low income housing
15-2 tax credit program;
15-3 (11) establish eligibility criteria for individuals
15-4 and families of low, very low, and families of moderate income to
15-5 participate in and benefit from programs administered by the
15-6 department;
15-7 (12) execute funding agreements;
15-8 (13) obtain, retain, and disseminate records and other
15-9 documents in electronic form; and
15-10 (14) [(12)] do all things necessary, convenient, or
15-11 desirable to carry out the powers expressly granted or necessarily
15-12 implied by this chapter.
15-13 SECTION 12. Subchapter D, Chapter 2306, Government Code, is
15-14 amended by adding Section 2306.0661 to read as follows:
15-15 Sec. 2306.0661. PUBLIC HEARINGS. (a) This section applies
15-16 only to state-funded housing programs, programs funded with bond
15-17 proceeds, the low income housing tax credit program, and the state
15-18 low income housing plan. Federally funded programs shall comply
15-19 with the federal public participation requirements and Chapter
15-20 2105, if applicable.
15-21 (b) The department shall encourage informed and effective
15-22 public participation in the department's programs and plans through
15-23 holding public hearings and soliciting and accepting public
15-24 comments during those hearings. In holding a public hearing, the
15-25 department shall ensure that:
15-26 (1) the location of the hearing is:
15-27 (A) in a public building or facility accessible
16-1 to the public;
16-2 (B) accessible to persons with disabilities; and
16-3 (C) reasonably accessible by public
16-4 transportation, if available;
16-5 (2) hearings are scheduled at times when working and
16-6 nonworking people can attend; and
16-7 (3) child care is provided where practical.
16-8 (c) In scheduling a public hearing, the department shall:
16-9 (1) publish notice of the time, place, and subject of
16-10 the hearing in the Texas Register and a newspaper of general
16-11 circulation in the community in which the hearing is to be held at
16-12 least seven days before the date of the hearing. Whenever
16-13 practical, the department shall publish notice of the time, place,
16-14 and subject of the hearing in the Texas Register and a newspaper of
16-15 general circulation in the community in which the hearing is to be
16-16 held at least thirty days before the date of the hearing;
16-17 (2) provide notice of the hearing to each public
16-18 library, in the community in which the hearing is to be held, for
16-19 posting in a public area of the library;
16-20 (3) provide notice of the hearing to:
16-21 (A) each member of the board;
16-22 (B) each member of the advisory committee
16-23 consulted by the department during preparation of the state low
16-24 income housing plan; and
16-25 (C) each member of the legislature;
16-26 (4) make a reasonable effort to inform interested
16-27 persons and organizations of the hearing;
17-1 (5) make information about the hearing, including, if
17-2 appropriate, the qualified allocation plan, application forms for a
17-3 low income housing tax credit, and the state low income housing
17-4 plan, available on the Internet in accordance with Section
17-5 2306.077; and
17-6 (6) provide an opportunity for persons to transmit on
17-7 the Internet written testimony or comments on a subject of a
17-8 hearing in accordance with rules adopted by the board.
17-9 SECTION 13. Section 2306.072, Government Code, is amended to
17-10 read as follows:
17-11 Sec. 2306.072. ANNUAL LOW INCOME HOUSING REPORT. (a) Not
17-12 later than March 1 [the 100th day after the last day] of each [the
17-13 fiscal] year, the director shall prepare and submit to the board an
17-14 annual report of the department's housing activities for the
17-15 preceding [fiscal] year.
17-16 (b) Not later than the 30th day after the date the board
17-17 receives the report, the board shall submit the report to the
17-18 governor, lieutenant governor, speaker of the house of
17-19 representatives, and members of any legislative oversight committee
17-20 [legislature].
17-21 (c) The report must include:
17-22 (1) a complete operating and financial statement of
17-23 the department;
17-24 (2) a comprehensive statement of the activities of the
17-25 department during the preceding [fiscal] year to address the needs
17-26 identified in the state low income housing plan prepared as
17-27 required by Section 2306.0721, including:
18-1 (A) a statistical and narrative analysis of the
18-2 department's performance in addressing the housing needs of
18-3 individuals and families of low and very low income;
18-4 (B) the ethnic and racial composition of
18-5 individuals and families applying for and receiving assistance from
18-6 each housing-related program operated by the department; and
18-7 (C) the department's progress in meeting the
18-8 goals established in the previous housing plan;
18-9 (3) an explanation of the efforts made by the
18-10 department to ensure the participation of individuals of low income
18-11 and their community-based institutions in [every aspect of]
18-12 department programs that affect them;
18-13 (4) a statement of the evidence that the department
18-14 has made an affirmative effort to ensure the involvement of
18-15 individuals of low income and their community-based institutions in
18-16 the allocation of funds and the planning process;
18-17 (5) a statistical analysis, delineated according to
18-18 each ethnic and racial group served by the department, that
18-19 indicates the progress made by the department in implementing the
18-20 state low income housing plan in each of the uniform state service
18-21 regions; [and]
18-22 (6) an analysis of fair housing opportunities in each
18-23 housing development that receives financial assistance from the
18-24 department that includes the following information for each housing
18-25 development that contains 20 or more living units:
18-26 (A) the street address and municipality or
18-27 county in which the property is located;
19-1 (B) the total number of units reported by
19-2 bedroom size;
19-3 (C) the total number of units designed for
19-4 individuals who are physically challenged or who have special needs
19-5 and the number of these individuals served annually as reported by
19-6 each housing sponsor;
19-7 (D) a statistical analysis of average rents
19-8 reported by county [region, as defined in the comprehensive housing
19-9 affordability strategy];
19-10 (E) the race or ethnic makeup of each project as
19-11 reported annually by each housing sponsor;
19-12 (F) the number of units occupied by individuals
19-13 receiving government-supported housing assistance as reported by
19-14 each housing sponsor;
19-15 (G) a statement as to whether the department has
19-16 been notified of a violation of the fair housing law that has been
19-17 filed with the United States Department of Housing and Urban
19-18 Development, the Commission on Human Rights, or the United States
19-19 Department of Justice; and
19-20 (H) a statement as to whether the development
19-21 has any instances of material noncompliance with bond indentures or
19-22 deed restrictions discovered through the normal monitoring
19-23 activities and procedures that include meeting occupancy
19-24 requirements or rent restrictions imposed by deed restriction or
19-25 financing agreements; and
19-26 (7) a report on the geographic distribution of low
19-27 income housing tax credits, the amount of unused low income housing
20-1 tax credits, and the amount of low income housing tax credits
20-2 received from the federal pool of unused funds from other states.
20-3 (d) The annual report submitted in each even-numbered year
20-4 must:
20-5 (1) include recommendations designed to strengthen and
20-6 support the Neighborhood Partnership Program in providing home
20-7 ownership opportunities to individuals and families of low and very
20-8 low income; and
20-9 (2) describe in detail actions the department has
20-10 taken to assist small municipalities and rural areas in obtaining
20-11 matching funds from public and private sources for participation in
20-12 the Neighborhood Partnership Program.
20-13 SECTION 14. Section 2306.0721, Government Code, is amended
20-14 to read as follows:
20-15 Sec. 2306.0721. LOW INCOME HOUSING PLAN. (a) Not later
20-16 than March 1 [the 100th day after the last day] of each [the
20-17 fiscal] year, the director shall prepare and submit to the board an
20-18 integrated state low income housing plan for the next year.
20-19 (b) Not later than the 30th day after the date the board
20-20 receives the plan, the board shall submit the plan to the governor,
20-21 lieutenant governor, and the speaker of the house of
20-22 representatives [legislature].
20-23 (c) The plan must include:
20-24 (1) an estimate and analysis of the housing needs of
20-25 the following populations in the state:
20-26 (A) individuals and families of moderate, low,
20-27 and very low income;
21-1 (B) individuals with special needs; and
21-2 (C) homeless individuals;
21-3 (2) a proposal to use all available housing resources
21-4 to address the housing needs of the populations described by
21-5 Subdivision (1) by establishing funding levels for all
21-6 housing-related programs;
21-7 (3) an estimate of the number of federally assisted
21-8 housing units available for individuals and families of low and
21-9 very low income and individuals with special needs in each county
21-10 [uniform state service region in the state];
21-11 (4) a description of state programs [rules and
21-12 policies] that govern the use of all available housing resources;
21-13 (5) a resource allocation plan that targets all
21-14 available housing resources to individuals and families of low and
21-15 very low income and individuals with special needs;
21-16 (6) a description of the department's efforts to
21-17 monitor and analyze the unused or underused federal resources of
21-18 other state agencies for housing-related services and services for
21-19 homeless individuals and the department's recommendations to ensure
21-20 the full use by the state of all available federal resources for
21-21 those services; [and]
21-22 (7) strategies to provide housing for individuals and
21-23 families with special needs;
21-24 (8) a description of the department's efforts to
21-25 encourage the construction of housing units that incorporate energy
21-26 efficient construction and appliances; and
21-27 (9) any other housing-related information that the
22-1 state is required to include in the one-year action plan of the
22-2 consolidated plan submitted annually to the United States
22-3 Department of Housing and Urban Development.
22-4 (d) The priorities and policies in another plan adopted by
22-5 the department must be consistent to the extent practical with the
22-6 priorities and policies established in the state low income housing
22-7 plan.
22-8 (e) To the extent consistent with federal law, the
22-9 preparation and publication of the state low income housing plan
22-10 shall be consistent with the filing and publication deadlines
22-11 required of the department for the consolidated plan.
22-12 SECTION 15. Section 2306.0722, Government Code, is amended
22-13 to read as follows:
22-14 Sec. 2306.0722. PREPARATION OF PLAN AND REPORT. (a) Before
22-15 preparing the annual low income housing report under Section
22-16 2306.072 and the state low income housing plan under Section
22-17 2306.0721, the department shall meet with representatives of groups
22-18 with an interest in low income housing, nonprofit housing
22-19 organizations, managers, owners, and developers of affordable
22-20 housing, local government officials, and residents of low income
22-21 housing. The department shall obtain the comments and suggestions
22-22 of the representatives, officials, and residents about the
22-23 prioritization and allocation of the department's resources in
22-24 regard to housing.
22-25 (b) In preparing the annual report under Section 2306.072
22-26 and the state low income housing plan under Section 2306.0721, the
22-27 director shall:
23-1 (1) coordinate local, state, and federal housing
23-2 resources, including tax exempt housing bond financing and low
23-3 income housing tax credits;
23-4 (2) set priorities for the available housing resources
23-5 to help the neediest individuals;
23-6 (3) evaluate the success of publicly supported housing
23-7 programs;
23-8 (4) survey and identify the unmet housing needs of
23-9 individuals the department is required to assist;
23-10 (5) ensure that housing programs benefit an individual
23-11 without regard to the individual's race, ethnicity, sex, or
23-12 national origin;
23-13 (6) develop housing opportunities for individuals and
23-14 families of low and very low income and individuals with special
23-15 housing needs;
23-16 (7) develop housing programs through an open, fair,
23-17 and public process;
23-18 (8) set priorities for assistance in a manner that is
23-19 appropriate and consistent with the housing needs of the
23-20 populations described by Section 2306.0721(c)(1); [and]
23-21 (9) incorporate recommendations that are consistent
23-22 with the consolidated plan [comprehensive housing affordability
23-23 strategy and performance report] submitted annually by the state to
23-24 the United States Department of Housing and Urban Development;
23-25 (10) identify the organizations and individuals
23-26 consulted by the department in preparing the annual report and
23-27 state low income housing plan and summarize and incorporate
24-1 comments and suggestions provided under Subsection (a) as the board
24-2 determines to be appropriate;
24-3 (11) develop a plan to respond to changes in federal
24-4 funding and programs for the provision of affordable housing; and
24-5 (12) use the following standardized categories to
24-6 describe the income of program applicants and beneficiaries:
24-7 (A) 0 to 30 percent of area median income
24-8 adjusted for family size;
24-9 (B) more than 30 to 60 percent of area median
24-10 income adjusted for family size;
24-11 (C) more than 60 to 80 percent of area median
24-12 income adjusted for family size;
24-13 (D) more than 80 to 115 percent of area median
24-14 income adjusted for family size; or
24-15 (E) more than 115 percent of area median income
24-16 adjusted for family size.
24-17 SECTION 16. Section 2306.0723, Government Code, is amended
24-18 to read as follows:
24-19 Sec. 2306.0723. PUBLIC PARTICIPATION REQUIREMENTS
24-20 [HEARINGS]. (a) The department shall hold [a] public hearings
24-21 [hearing] on [the annual report and] the annual state low income
24-22 housing plan and report before the director submits the report and
24-23 the plan to the board. Public hearings shall be held in Dallas or
24-24 Fort Worth, El Paso, Houston, San Antonio, the Lower Rio Grande
24-25 Valley, and at least two additional municipalities selected by the
24-26 department to represent geographically diverse communities. The
24-27 department shall provide notice of the public hearings as required
25-1 by Section 2306.0661. The published notice must include a summary
25-2 of the report and plan. The department shall accept comments on
25-3 the report and plan at the public hearings and for at least 30 days
25-4 after the date of the publication of the notice of the hearings.
25-5 (b) In addition to any other necessary topics relating to
25-6 the report and the plan, each public hearing required by Subsection
25-7 (a) must address:
25-8 (1) infrastructure needs;
25-9 (2) home ownership programs;
25-10 (3) rental housing programs;
25-11 (4) housing repair programs; and
25-12 (5) the concerns of individuals with special needs, as
25-13 defined by Section 2306.511.
25-14 (c) The board shall hold a public hearing on the state low
25-15 income housing report and plan before the board submits the report
25-16 and the plan to the governor, lieutenant governor, speaker of the
25-17 house of representatives, and members of the legislature.
25-18 (d) [(c)] The board shall include with the report and the
25-19 plan the board submits to the governor, lieutenant governor,
25-20 speaker of the house of representatives, members of the [and]
25-21 legislature, and members of the advisory board formed by the
25-22 department to advise on the consolidated plan a written summary
25-23 [report] of public comments on the report and the plan.
25-24 SECTION 17. Section 2306.076(a), Government Code, is amended
25-25 to read as follows:
25-26 (a) The board may purchase from department funds liability
25-27 insurance for the director, [and] board members, [and] officers,
26-1 and employees of the department.
26-2 SECTION 18. Subchapter D, Chapter 2306, Government Code, is
26-3 amended by adding Section 2306.077 to read as follows:
26-4 Sec. 2306.077. INTERNET AVAILABILITY. (a) In this section,
26-5 "Internet" means the largest, nonproprietary, nonprofit,
26-6 cooperative, public computer network, popularly known as the
26-7 Internet.
26-8 (b) The department, to the extent it considers it to be
26-9 feasible and appropriate, shall make information on the
26-10 department's programs, public hearings, and scheduled public
26-11 meetings available to the public on the Internet.
26-12 (c) The access to information allowed by this section is in
26-13 addition to the public's free access to the information through
26-14 other electronic or print distribution of the information and does
26-15 not alter, diminish, or relinquish any copyright or other
26-16 proprietary interest or entitlement of this state or a private
26-17 entity under contract with this state.
26-18 SECTION 19. The heading of Subchapter E, Chapter 2306,
26-19 Government Code, is amended to read as follows:
26-20 SUBCHAPTER E. COMMUNITY AFFAIRS AND COMMUNITY
26-21 DEVELOPMENT PROGRAMS
26-22 SECTION 20. Subchapter E, Chapter 2306, Government Code, is
26-23 amended by adding Section 2306.094 to read as follows:
26-24 Sec. 2306.094. SERVICES FOR THE HOMELESS. The department
26-25 shall administer the state's allocation of federal funds provided
26-26 under the Emergency Shelter Grants Program (42 U.S.C. Section 11371
26-27 et seq.), as amended, or its successor program, and any other
27-1 federal funds provided for the benefit of homeless individuals and
27-2 families.
27-3 SECTION 21. Section 2306.097, Government Code, is amended to
27-4 read as follows:
27-5 Sec. 2306.097. ENERGY SERVICES PROGRAM FOR LOW-INCOME
27-6 INDIVIDUALS. [(a)] The Energy Services Program for Low-Income
27-7 Individuals [is in the community affairs division.]
27-8 [(b) The program] shall operate in conjunction with the
27-9 community services block grant program and has jurisdiction and
27-10 responsibility for administration of the following elements of the
27-11 State Low-Income Energy Assistance Program, from whatever sources
27-12 funded:
27-13 (1) the Energy Crisis Intervention Program;
27-14 (2) the weatherization program; and
27-15 (3) the Low-Income Home Energy Assistance Program.
27-16 SECTION 22. Section 2306.099, Government Code, is amended to
27-17 read as follows:
27-18 Sec. 2306.099. TRANSFER OF FEDERAL FUNDS. (a) The
27-19 department may enter into an interagency agreement with the Texas
27-20 Department of Commerce to reimburse the Texas Department of
27-21 Commerce for providing on behalf of the department marketing, [and]
27-22 underwriting, and any other services on the portion of the federal
27-23 community development block grant funds allocated by the
27-24 department for economic development activities.
27-25 (b) The department shall allocate not more than 20 percent
27-26 of the federal funds received by the department to the Texas
27-27 Department of Commerce to be used for economic development
28-1 activities.
28-2 (c) The activities undertaken by the Texas Department of
28-3 Commerce under this section must be monitored [approved] by the
28-4 department.
28-5 SECTION 23. Section 2306.111, Government Code, is amended to
28-6 read as follows:
28-7 Sec. 2306.111. HOUSING FUNDS. (a) The department, through
28-8 the housing finance [any] division, shall administer all [the]
28-9 federal housing funds provided to the state under the
28-10 Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
28-11 Section 12704 et seq.) or any other affordable housing program.
28-12 (b) The housing finance division shall adopt a goal to apply
28-13 an aggregate [a] minimum of 25 percent of the division's total
28-14 housing funds toward housing assistance for individuals and
28-15 families of extremely low and very low income.
28-16 (c) In administering federal housing funds provided to the
28-17 state under the Cranston-Gonzalez National Affordable Housing Act
28-18 (42 U.S.C. Section 12701 et seq.), the department shall give the
28-19 highest priority to utilizing these funds for the benefit of
28-20 non-participating small cities and rural areas that do not qualify
28-21 to receive funds under the Cranston-Gonzalez National Affordable
28-22 Housing Act directly from the United States Department of Housing
28-23 and Urban Development unless the department finds there is
28-24 insufficient need and demand for housing funds within these areas.
28-25 SECTION 24. Section 2306.142, Government Code, is amended to
28-26 read as follows:
28-27 Sec. 2306.142. AUTHORIZATION OF BONDS. In its discretion,
29-1 the board shall authorize all bonds issued by the department
29-2 [housing finance division].
29-3 SECTION 25. Section 2306.147, Government Code, is amended to
29-4 read as follows:
29-5 Sec. 2306.147. Fees and Penalties. (a) The board shall
29-6 have the specific duty and power to establish a schedule of fees
29-7 and penalties relating to the operation of the housing finance
29-8 division and authorized by this chapter, including application,
29-9 processing, loan commitment, origination, servicing, and
29-10 administrative fees.
29-11 (b) The department shall waive grant application fees for
29-12 nonprofit organizations that offer expanded services such as child
29-13 care, nutrition programs, job training assistance, health services,
29-14 or human services.
29-15 SECTION 26. Section 2306.171, Government Code, is amended to
29-16 read as follows:
29-17 Sec. 2306.171. GENERAL DUTIES OF DEPARTMENT RELATING TO
29-18 PURPOSES OF HOUSING FINANCE DIVISION. The department shall:
29-19 (1) develop policies and programs designed to increase
29-20 the number of individuals and families of extremely low, [and] very
29-21 low, and low income and families of moderate income that
29-22 participate in the housing finance division's programs;
29-23 (2) work with municipalities, counties, public
29-24 agencies, housing sponsors, and nonprofit and for profit
29-25 corporations to provide:
29-26 (A) information on division programs; and
29-27 (B) technical assistance to municipalities,
30-1 counties, and nonprofit corporations;
30-2 (3) encourage private for profit and nonprofit
30-3 corporations and state organizations to match the division's funds
30-4 to assist in providing affordable housing to individuals and
30-5 families of low and very low income and families of moderate
30-6 income;
30-7 (4) provide matching funds to municipalities,
30-8 counties, public agencies, housing sponsors, and nonprofit
30-9 developers who qualify under the division's programs; and
30-10 (5) administer the state's allocation of federal funds
30-11 provided under the rental rehabilitation grant program authorized
30-12 by Section 17, Title I, of the United States Housing Act of 1937
30-13 (42 U.S.C. Section 1437o).
30-14 SECTION 27. Section 2306.177, Government Code, is amended to
30-15 read as follows:
30-16 Sec. 2306.177. HEARINGS. The department may:
30-17 (1) conduct hearings; and
30-18 (2) take testimony and proof, under oath, at public
30-19 hearings, on matters necessary to carry out the department's
30-20 [housing finance division's] purposes.
30-21 SECTION 28. Subchapter H, Chapter 2306, Government Code, is
30-22 amended by adding Section 2306.184 to read as follows:
30-23 Sec. 2306.184. DISCLOSURE OF FEES. (a) This section does
30-24 not apply to an application submitted by an individual or family
30-25 for a loan, grant, or other assistance under a program administered
30-26 by the department or the Texas State Affordable Housing Corporation
30-27 or from bonds issued by the department.
31-1 (b) An application for a loan, grant, or other assistance
31-2 for an eligible affordable housing project or activity under a
31-3 program administered by the department or the Texas State
31-4 Affordable Housing Corporation or from bonds issued by the
31-5 department must include:
31-6 (1) the name of each person expected to charge the
31-7 applicant a project development fee or project operation fee;
31-8 (2) the nature and amount of each project development
31-9 fee and project operation fee the applicant is expected to pay; and
31-10 (3) any interlocking interests of persons listed under
31-11 Subdivision (1).
31-12 (c) On completion of the project, the applicant shall cost
31-13 certify the project and include the following:
31-14 (1) the name of each person to whom the recipient paid
31-15 a project development fee or project operation fee during the term
31-16 of the project;
31-17 (2) the nature and amount of each project development
31-18 fee and project operation fee paid by the recipient during the term
31-19 of the project; and
31-20 (3) any interlocking interests of persons listed under
31-21 Subdivision (1).
31-22 (d) The department shall adopt rules governing penalties and
31-23 sanctions under this section for a person who:
31-24 (1) does not provide the information required by this
31-25 section; or
31-26 (2) knowingly discloses false information.
31-27 (e) In this section:
32-1 (1) "Project development fee" means a fee charged in
32-2 connection with the planning, design, or development of an
32-3 affordable housing project, including an application fee, tax
32-4 credit consulting fee, development consulting fee, mortgage
32-5 brokerage fee, and financial advising fee.
32-6 (2) "Project operation fee" means a fee charged in
32-7 connection with the operation, construction, management, or
32-8 administration of an affordable housing project, including a
32-9 management fee, asset management fee, incentive management fee,
32-10 general partner fee, construction supervision fee, and construction
32-11 management fee.
32-12 SECTION 29. Section 2306.201(b), Government Code, is amended
32-13 to read as follows:
32-14 (b) The fund consists of:
32-15 (1) appropriations or transfers made to the fund;
32-16 (2) unencumbered fund balances; [and]
32-17 (3) public or private gifts or grants;
32-18 (4) investment income; and
32-19 (5) funds from any other source.
32-20 SECTION 30. Section 2306.202, Government Code, is amended to
32-21 read as follows:
32-22 Sec. 2306.202. USE OF HOUSING TRUST FUND. (a) The
32-23 department, through the housing finance division, shall use the
32-24 housing trust fund to provide loans, grants, or other comparable
32-25 forms of assistance to local units of government, public housing
32-26 authorities, nonprofit organizations, and income-eligible
32-27 individuals, families, and households to finance, acquire,
33-1 rehabilitate, and develop decent, safe, and sanitary housing. In
33-2 each biennium the first $2.6 million available through the housing
33-3 trust fund for loans, grants, or other comparable forms of
33-4 assistance shall be set aside and made available exclusively for
33-5 local units of government, public housing authorities, and
33-6 nonprofit organizations. Any additional funds may also be made
33-7 available to for-profit organizations so long as at least 45
33-8 percent of available funds in excess of the first $2.6 million
33-9 shall be made available to nonprofit organizations for the purpose
33-10 of acquiring, rehabilitating, and developing decent, safe, and
33-11 sanitary housing. The remaining portion shall be competed for by
33-12 nonprofit organizations, for-profit organizations, and other
33-13 eligible entities. Notwithstanding any other section of this
33-14 chapter, but subject to the limitations in Section 2306.251(c), the
33-15 department may also use the fund to acquire property to endow the
33-16 fund.
33-17 (b) Use of the fund is limited to providing:
33-18 (1) assistance for individuals and families of low and
33-19 very low income; [and]
33-20 (2) technical assistance and capacity building to
33-21 nonprofit organizations engaged in developing housing for
33-22 individuals and families of low and very low income; and
33-23 (3) security for repayment of revenue bonds issued to
33-24 finance housing for individuals and families of low and very low
33-25 income.
33-26 SECTION 31. Section 2306.205, Government Code, is amended by
33-27 adding Subsection (f) to read as follows:
34-1 (f) In addition to the money transferred into the housing
34-2 trust fund under this section, and subject to Subsection (e), the
34-3 department shall transfer into the fund the amount of any
34-4 origination fee, asset oversight fee, and servicing fee the
34-5 department or the Texas State Affordable Housing Corporation
34-6 receives in relation to the administration of its 501(c)(3) bond
34-7 program established pursuant to Section 2306.358 that exceeds the
34-8 amount needed by the department or the Texas State Affordable
34-9 Housing Corporation to pay its operating and overhead costs and
34-10 fund reserves, including an insurance reserve or credit enhancement
34-11 reserve established by the board in administering the program.
34-12 SECTION 32. Section 2306.207(a), Government Code, is amended
34-13 to read as follows:
34-14 (a) The department [housing finance division] may create a
34-15 reserve fund with the comptroller [state treasurer] out of:
34-16 (1) proceeds from the sale of the department's
34-17 [division's] bonds; or
34-18 (2) other resources.
34-19 SECTION 33. Section 2306.232, Government Code, is amended to
34-20 read as follows:
34-21 Sec. 2306.232. TEXAS HOUSING AGENCY LOAN OR GUARANTEE. A
34-22 loan or guarantee made by the Texas Housing Agency becomes a loan
34-23 or guarantee of the department [housing finance division].
34-24 SECTION 34. Section 2306.251, Government Code, is amended as
34-25 follows:
34-26 Sec. 2306.251. PROPERTY OWNERSHIP PROGRAM. (a) While it is
34-27 not the intent of the legislature that the department compete with
35-1 the private sector by becoming a long-term owner of real property
35-2 merely for the purpose of owning, managing, and operating tenant
35-3 properties, the [The] department may acquire, [and] own,
35-4 reconstruct, rehabilitate, manage, or operate real property:
35-5 (1) on an interim basis for sale or rental to:
35-6 (A) [(1)] individuals and families of low and
35-7 very low income and families of moderate income; and
35-8 (B) [(2)] nonprofit housing organizations and
35-9 other housing organizations to serve the needs of individuals and
35-10 families of low and very low income and families of moderate
35-11 income;
35-12 (2) for a period of time not to exceed 10 years for
35-13 the purposes of:
35-14 (A) preserving publicly financed or subsidized
35-15 housing; or
35-16 (B) participating in a risk-sharing program
35-17 entered into with the United States Department of Housing and Urban
35-18 Development, any other insurer or guarantor of any United States
35-19 Department of Housing and Urban Development-related indebtedness, a
35-20 government sponsored enterprise, a housing finance agency or
35-21 corporation, or a public housing authority.
35-22 (b) [Property acquired by the department must qualify for
35-23 home mortgage insurance after rehabilitation.]
35-24 [(c)] The department may use money from the housing trust
35-25 fund, unencumbered fund balances, fees received by the housing
35-26 finance division, proceeds from the sale or rental of real
35-27 property, distribution of earnings under Section 2306.557, or
36-1 appropriations, allocations, grants, or gifts from any public or
36-2 private source to purchase property under this section.
36-3 (c) If the department uses the housing trust fund to finance
36-4 real property acquisitions, it [(d) The housing finance division]
36-5 may not use more than 10 percent of the yearly balance of the
36-6 [housing trust] fund to acquire the real property.
36-7 (d) [(e)] If the department acquires property under this
36-8 section, the department shall submit an annual report to the board
36-9 that includes an analysis of [have an independent audit conducted
36-10 annually to analyze] the property ownership program's:
36-11 (1) financial stability;
36-12 (2) cost-effectiveness; and
36-13 (3) effectiveness in serving individuals and families
36-14 of low and very low income and families of moderate income.
36-15 SECTION 35. Section 2306.252, Government Code, is amended to
36-16 read as follows:
36-17 Sec. 2306.252. [LOW AND VERY LOW INCOME] HOUSING RESOURCE
36-18 CENTER. (a) The board shall establish a [low and very low income]
36-19 housing resource center in the housing finance division.
36-20 (b) The center shall:
36-21 (1) provide educational material to housing advocates,
36-22 housing sponsors, borrowers, and tenants;
36-23 (2) provide technical assistance to nonprofit housing
36-24 sponsors; and
36-25 (3) [focus on marketing loans and other programs of
36-26 the housing finance division to individuals and families of low and
36-27 very low income; and]
37-1 [(4)] assist [lenders] in the development of housing
37-2 policy, including the annual state low income housing plan and
37-3 report and the consolidated plan [marketing loans to individuals
37-4 and families of low and very low income].
37-5 (c) The housing resource center is intended to assist
37-6 individuals, local organizations, and local governments in
37-7 providing for the housing needs of individuals and families in
37-8 their communities by providing information available to the center
37-9 to housing contractors, nonprofit housing sponsors, community-based
37-10 organizations, and local governments on:
37-11 (1) local housing needs;
37-12 (2) housing programs;
37-13 (3) available funding sources; and
37-14 (4) programs that affect the creation, improvement, or
37-15 preservation of housing affordable to individuals and families of
37-16 low and very low income.
37-17 SECTION 36. Subchapter K, Chapter 2306, Government Code, is
37-18 amended by adding Sections 2306.253 and 2306.254 to read as
37-19 follows:
37-20 Sec. 2306.253. HOMEBUYER EDUCATION PROGRAM. (a) The
37-21 department shall develop and implement a statewide homebuyer
37-22 education program designed to provide information and counseling to
37-23 prospective homebuyers about the home buying process.
37-24 (b) The department shall develop the program in cooperation
37-25 with the Texas Agricultural Extension Service, the Texas Department
37-26 of Human Services, the Real Estate Research Center at Texas A&M
37-27 University, the Texas Workforce Commission, experienced homebuyer
38-1 education providers, community-based organizations, and advocates
38-2 of affordable housing. The department shall implement the program
38-3 through self-help centers when feasible.
38-4 (c) The department shall make full use of existing training
38-5 and informational materials available from sources such as the
38-6 United States Department of Housing and Urban Development, the
38-7 cooperative extension system, the Neighborhood Reinvestment
38-8 Corporation, and existing homebuyer education providers.
38-9 (d) In order to implement this section, the department may
38-10 use money available to the department for housing purposes that the
38-11 department is not prohibited from spending on the homebuyer
38-12 education program, including:
38-13 (1) the amount of administrative or service fees the
38-14 department receives from the issuance or refunding of bonds that
38-15 exceeds the amount the department needs to pay its overhead costs
38-16 in administering its bond programs; and
38-17 (2) money the department receives from other entities
38-18 by gift or grant under a contract.
38-19 Sec. 2306.254. TENANT SERVICES PROGRAM. (a) In this
38-20 section, "tenant services" means social services, including child
38-21 care, transportation, and basic adult education, that are provided
38-22 to individuals residing in low income housing under Title IV-A,
38-23 Social Security Act (42 U.S.C. Section 601 et seq.), and other
38-24 similar services.
38-25 (b) The department shall structure the requirements for the
38-26 provision of tenant services so that tenant services provided
38-27 through housing programs are coordinated with similar services
39-1 provided through state workforce development and welfare programs.
39-2 The department shall emphasize tenant services that are eligible
39-3 for additional federal matching funds through workforce development
39-4 or welfare-related programs.
39-5 (c) The department shall designate a department employee as
39-6 the tenant services program coordinator. The coordinator shall
39-7 serve as a liaison to the Texas Workforce Commission, the Texas
39-8 Department of Human Services, the Department of Protective and
39-9 Regulatory Services, and the Legislative Budget Board on matters
39-10 relating to the coordination of tenant services programs.
39-11 (d) The coordinator shall meet in Austin at least quarterly
39-12 with representatives of the Texas Workforce Commission, the Texas
39-13 Department of Human Services, the Department of Protective and
39-14 Regulatory Services, and the Legislative Budget Board to:
39-15 (1) update coordination of tenant services with
39-16 workforce development and welfare-related programs;
39-17 (2) discuss funding sources for tenant services
39-18 programs; and
39-19 (3) report on the status of tenant services programs,
39-20 including reporting on the number of clients and types of services
39-21 offered.
39-22 (e) Not later than December 1 preceding a regular session of
39-23 the legislature, the department shall file with the appropriate
39-24 state agencies and legislative committees a report discussing the
39-25 results of the department's program under this section.
39-26 SECTION 37. Section 2306.267, Government Code, is amended to
39-27 read as follows:
40-1 Sec. 2306.267. COMPLIANCE WITH APPLICABLE LAWS, RULES, AND
40-2 CONTRACT TERMS. The department may order a housing sponsor to
40-3 perform or refrain from performing certain acts in order to comply
40-4 with the law, department [housing finance division] rules, or terms
40-5 of a contract or agreement to which the housing sponsor is a party.
40-6 SECTION 38. Section 2306.270, Government Code, is amended to
40-7 read as follows:
40-8 Sec. 2306.270. REGULATION OF RETIREMENT OF CAPITAL
40-9 INVESTMENT OR REDEMPTION OF STOCK. The department shall regulate
40-10 the retirement of a capital investment or the redemption of stock
40-11 of a limited profit housing sponsor if the retirement or
40-12 redemption, when added to a dividend or other distribution, exceeds
40-13 in any one fiscal year the permitted percentage, as allowed by the
40-14 department [housing finance division's rules], of the original face
40-15 amount of the limited profit housing sponsor's investment or equity
40-16 in a housing development.
40-17 SECTION 39. Section 2306.291(a), Government Code, is amended
40-18 to read as follows:
40-19 (a) The department may purchase and take assignments from
40-20 mortgage lenders or the federal government of notes and other
40-21 obligations, including contracts for deed and mortgages, evidencing
40-22 loans or interest in loans for the construction, remodeling,
40-23 improvement, [or] rehabilitation, purchase, leasing, or refinancing
40-24 of housing developments for individuals and families of low and
40-25 very low income and families of moderate income.
40-26 SECTION 40. Section 2306.351(a), Government Code, is amended
40-27 to read as follows:
41-1 (a) The department may issue bonds under this chapter,
41-2 including qualified 501(c)(3) bonds under Section 145, Internal
41-3 Revenue Code of 1986 (26 U.S.C. Section 145), and may:
41-4 (1) provide for and secure payment of the bonds;
41-5 (2) provide for the rights of the holders of the
41-6 bonds, as permitted by this chapter and the Texas Constitution; and
41-7 (3) purchase, hold, cancel, resell, or otherwise
41-8 dispose of its bonds, subject to restrictions in a resolution
41-9 authorizing issuance of its bonds.
41-10 SECTION 41. Section 2306.357, Government Code, is amended to
41-11 read as follows:
41-12 Sec. 2306.357. BONDS ISSUED BY TEXAS HOUSING AGENCY. A
41-13 general obligation or revenue bond issued by the Texas Housing
41-14 Agency becomes a general obligation or revenue bond of the
41-15 department [housing finance division].
41-16 SECTION 42. Subchapter P, Chapter 2306, Government Code, is
41-17 amended by adding Section 2306.358 to read as follows:
41-18 Sec. 2306.358. ISSUANCE OF QUALIFIED 501(c)(3) BONDS. (a)
41-19 Of the total qualified 501(c)(3) bonds issued under Section 145 of
41-20 the Internal Revenue Code of 1986 (26 U.S.C. Section 145) in each
41-21 fiscal year, it is the express intent of the legislature that the
41-22 department shall allocate qualified 501(c)(3) bonding authority as
41-23 follows:
41-24 (1) at least 50 percent of the total annual issuance
41-25 amount authorized through the memorandum of understanding provided
41-26 for in Subsection (b) of this section is reserved for the purposes
41-27 of new construction or acquisition with substantial rehabilitation;
42-1 (2) not more than 25 percent of the total annual
42-2 issuance amount authorized through the memorandum of understanding
42-3 provided for in Subsection (b) of this section may be used for
42-4 projects in any one metropolitan area; and
42-5 (3) at least 15 percent of the annual issuance amount
42-6 authorized through the memorandum of understanding provided for in
42-7 Subsection (b) of this section is reserved for projects in rural
42-8 areas.
42-9 (a-1) For the purposes of Subsection (a):
42-10 (1) "Rural area" and "metropolitan area" shall be
42-11 defined through the memorandum of understanding provided for in
42-12 Subsection (b) of this section.
42-13 (2) "Substantial rehabilitation" means rehabilitation
42-14 of a project with a minimum of $5,000 of rehabilitation cost per
42-15 unit.
42-16 (b) A qualified 501(c)(3) bond may not be issued unless
42-17 approved by the Bond Review Board. In addition, the Bond Review
42-18 Board shall enter into a memorandum of understanding with the
42-19 department specifying the amount of bonds to be issued in each
42-20 fiscal year. The Bond Review Board may not approve a proposal to
42-21 issue qualified 501(c)(3) bonds unless they meet the requirements
42-22 of this section, including the memorandum of understanding, and all
42-23 other laws that may apply.
42-24 (c) In addition to the requirements of Section 145 of the
42-25 Internal Revenue Code of 1986 (26 U.S.C. Section 145), a qualified
42-26 501(c)(3) organization must:
42-27 (1) demonstrate to the department that the project is
43-1 carefully and conservatively underwritten to:
43-2 (A) ensure that the project is well run, well
43-3 maintained, and financially viable; and
43-4 (B) minimize the risk of the organization's
43-5 default;
43-6 (2) ensure that at least 60 percent of the housing to
43-7 be provided under the project is affordable housing provided to
43-8 individuals and families of low and very low income and:
43-9 (A) at least 40 percent of the units in a
43-10 multifamily development are affordable to individuals and families
43-11 with incomes at or below 60 percent of the median family income,
43-12 adjusted for family size; or
43-13 (B) at least 20 percent of the units in a
43-14 multifamily development are affordable to individuals and families
43-15 with incomes at or below 50 percent of the median family income,
43-16 adjusted for family size; and
43-17 (3) enter into an agreement with the department in
43-18 which the 501(c)(3) organization:
43-19 (A) agrees during the term of the agreement to
43-20 reserve at least 60 percent of the housing to be provided under the
43-21 project for individuals and families of low and very low income;
43-22 (B) ensures that the reserved housing will
43-23 remain affordable to individuals and families of low and very low
43-24 income during the term of the agreement;
43-25 (C) agrees to not discriminate against a tenant
43-26 applicant solely because the applicant receives public rental
43-27 assistance payments, except if at least 15 percent of the housing
44-1 units provided under the project are occupied by tenants who
44-2 receive public rental assistance payments; and
44-3 (D) agrees to restrict the rents charged on
44-4 those units reserved for individuals and families of low and very
44-5 low income at 30 percent of the area median income adjusted for
44-6 family size and utility allowance, unless this requirement is
44-7 waived or modified on a case-by-case basis by the board, and
44-8 approved by the Bond Review Board, if both boards determine that
44-9 the waiver or modification is necessary for an area of the state
44-10 because the area's median income would prevent the construction of
44-11 new affordable projects.
44-12 (d) Subsection (c)(3)(C) does not prohibit an organization
44-13 from requiring a tenant applicant who receives public assistance to
44-14 meet the organization's standard criteria for occupancy, including
44-15 such criteria as satisfactory creditworthiness and lack of criminal
44-16 history.
44-17 (e) The agreement provided for in Subsection (c)(3) may
44-18 provide for the lease or sale of the project to a nonprofit
44-19 corporation approved by the department subject to the conditions
44-20 specified in Subsection (c).
44-21 (f) Neither the department nor the Texas State Affordable
44-22 Housing Corporation may use state or federal money to provide for
44-23 credit enhancement of a bond issued under this section unless the
44-24 credit enhancement would facilitate the issuance of bonds for the
44-25 purpose of financing the creation or preservation of affordable
44-26 housing by 501(c)(3) nonprofit entities.
44-27 (g) In lieu of complying with the set-aside requirements
45-1 specified in Subsection (c)(2), a qualified 501(c)(3) organization
45-2 may comply with such other set-asides or restrictions as are
45-3 approved by the Internal Revenue Service as a basis for the
45-4 determination letter addressed to the qualified 501(c)(3)
45-5 organization.
45-6 (h) For purposes of this section, "rural area" and
45-7 "metropolitan area" shall be defined through the memorandum of
45-8 understanding provided for in Subsection (b) of this section.
45-9 SECTION 43. Section 2306.375, Government Code, is amended to
45-10 read as follows:
45-11 Sec. 2306.375. PERSONAL LIABILITY OF BOARD MEMBER OR
45-12 DIRECTOR. A member of the board or the director is not liable
45-13 personally for bonds issued or contracts executed by the department
45-14 or for any other action taken in accordance with the powers and
45-15 duties authorized by this chapter [housing finance division].
45-16 SECTION 44. Section 2306.411(a), Government Code, is amended
45-17 to read as follows:
45-18 (a) In addition to other security for the department's bonds
45-19 authorized by this chapter, payment of the principal and interest
45-20 and redemption premium, if any, on the department's bonds may be
45-21 secured by a first or subordinate lien on and pledge of all or part
45-22 of:
45-23 (1) the department's assets and real, personal, or
45-24 mixed property, including:
45-25 (A) mortgages or other obligations securing the
45-26 assets of property;
45-27 (B) investments; and
46-1 (C) trust agreements or trust indentures
46-2 administered by one or more corporate trustees as allowed by the
46-3 board; and
46-4 (2) the reserves or funds of the department [housing
46-5 finance division].
46-6 SECTION 45. Section 2306.412(a), Government Code, is amended
46-7 to read as follows:
46-8 (a) A lien on or pledge of revenues, income, assets,
46-9 reserves, funds, or other resources of the department [housing
46-10 finance division], as authorized by this chapter, is valid and
46-11 binding from the time of payment for and delivery of the bonds
46-12 authorized by the board resolution creating or confirming the lien
46-13 or pledge.
46-14 SECTION 46. Section 2306.491, Government Code, is amended to
46-15 read as follows:
46-16 Sec. 2306.491. BONDS NEGOTIABLE INSTRUMENTS.
46-17 Notwithstanding any other statute, a bond and interest coupon
46-18 issued and delivered by the department [housing finance division]
46-19 is a negotiable instrument under the Uniform Commercial Code,
46-20 except that the bond may be registered or subject to registration
46-21 under this chapter.
46-22 SECTION 47. Subchapter Y, Chapter 2306, Government Code, as
46-23 added by Chapter 76, Acts of the 74th Legislature, Regular Session,
46-24 1995, is amended to read as follows:
46-25 SUBCHAPTER Y. TEXAS STATE AFFORDABLE HOUSING CORPORATION
46-26 Sec. 2306.551. DEFINITION. In this subchapter,
46-27 "corporation" means the Texas State Affordable Housing Corporation.
47-1 Sec. 2306.552. CREATION. (a) The existence of the Texas
47-2 State Affordable Housing Corporation, or any similarly named
47-3 corporation, begins on the date that the secretary of state issues
47-4 the certificate of incorporation.
47-5 (b) The charter of the corporation must establish the
47-6 corporation as nonprofit and specifically dedicate the
47-7 corporation's activities to the public purpose authorized by this
47-8 subchapter [benefit of the department].
47-9 (c) The creation of the corporation does not limit or impair
47-10 the rights, powers, and duties of the department under this
47-11 chapter.
47-12 Sec. 2306.553. PURPOSES. (a) The public purpose of the
47-13 corporation is to perform activities and services that the
47-14 corporation's board of directors determines will promote the public
47-15 health, safety, and welfare through the provision of adequate,
47-16 safe, and sanitary housing for individuals and families of low and
47-17 very low income and families of moderate income. The activities
47-18 and services shall include engaging in mortgage banking activities
47-19 and lending transactions and acquiring, holding, selling, or
47-20 leasing real or personal property [corporation shall carry out the
47-21 public purposes of this chapter on behalf of the state].
47-22 (b) The corporation's primary public purpose is to
47-23 facilitate the provision of housing and the making of affordable
47-24 loans to individuals and families of low and very low income and
47-25 families of moderate income. The corporation may make loans for
47-26 single family homes only to individuals and families of low and
47-27 very low income and families of moderate income. The corporation
48-1 may make loans for multifamily developments if:
48-2 (1) at least 40 percent of the units in a multifamily
48-3 development are affordable to individuals and families with incomes
48-4 at or below 60 percent of the median family income, adjusted for
48-5 family size; or
48-6 (2) at least 20 percent of the units in a multifamily
48-7 development are affordable to individuals and families with incomes
48-8 at or below 50 percent of the median family income, adjusted for
48-9 family size [corporation may engage only in the performance of
48-10 charitable functions].
48-11 (c) To the extent reasonably practicable, the corporation
48-12 shall use the services of banks, community banks, savings banks,
48-13 thrifts, savings and loan associations, private mortgage companies,
48-14 nonprofit organizations, and other lenders for the origination of
48-15 all loans contemplated by this subchapter and assist the lenders in
48-16 providing credit to individuals and families of low and very low
48-17 income and families of moderate income.
48-18 Sec. 2306.554. BOARD OF DIRECTORS AND OFFICERS.
48-19 (a) The [members of the board serve as the]
48-20 board of directors of the corporation consists of six members as
48-21 follows:
48-22 (1) the presiding officer of the board of directors of
48-23 the department;
48-24 (2) the presiding officer of the programs committee of
48-25 the board of directors of the department; and
48-26 (3) four members of the board of directors of the
48-27 corporation shall be appointed by the governor and shall represent
49-1 any of the following areas:
49-2 (A) state or federal savings banks or savings
49-3 and loan associations;
49-4 (B) community banks with assets of $200 million
49-5 or less;
49-6 (C) large metropolitan banks with assets of more
49-7 than $1 billion;
49-8 (D) asset management companies;
49-9 (E) mortgage servicing companies;
49-10 (F) builders;
49-11 (G) real estate developers;
49-12 (H) real estate brokers;
49-13 (I) community or economic development
49-14 organizations;
49-15 (J) private mortgage companies;
49-16 (K) nonprofit housing development companies;
49-17 (L) attorneys;
49-18 (M) investment bankers;
49-19 (N) underwriters;
49-20 (O) private mortgage insurance companies;
49-21 (P) appraisers;
49-22 (Q) property management companies;
49-23 (R) financial advisors;
49-24 (S) nonprofit foundations;
49-25 (T) financial advisors; or
49-26 (U) any other area of expertise that the
49-27 governor finds necessary for the successful operation of the
50-1 corporation.
50-2 (b) The governor shall appoint a presiding officer from the
50-3 members who are not also serving as members of the board of
50-4 directors of the department.
50-5 (c) A member of the corporation's board of directors is not
50-6 entitled to compensation, except for the members who are also
50-7 members of the department's board of directors, but is entitled to
50-8 reimbursement of travel expenses incurred by the member while
50-9 conducting the business of the board, as provided by the General
50-10 Appropriations Act.
50-11 (d) The director of the department shall serve ex officio as
50-12 president of the corporation. The president is not entitled to
50-13 compensation, unless the president is not also the executive
50-14 director of the department, but is entitled to reimbursement from
50-15 the corporation of travel expenses incurred by the member while
50-16 conducting the business of the board, as provided by the General
50-17 Appropriations Act. The director of the department shall serve as
50-18 president of the corporation only if the director has experience in
50-19 the field of mortgage banking or residential lending as
50-20 demonstrated by:
50-21 (1) employment in one or more middle or upper level
50-22 management positions for at least two years with a mortgage bank,
50-23 commercial bank, thrift, savings and loan association, private
50-24 mortgage company, mortgage servicing entity, or other financial
50-25 institution; or
50-26 (2) employment in a position of providing legal or
50-27 consulting services related to mortgage banking or residential
51-1 lending to any one of the type of entities listed in Subsection
51-2 (d)(1) for at least five years.
51-3 (e) If the director does not satisfy the requirements of
51-4 Subsection (d)(1) or (2), the corporation shall employ, for
51-5 compensation to be determined by the corporation's board of
51-6 directors, an individual that satisfies the requirements of
51-7 Subsection (d)(1) or (2) to serve as president of the corporation.
51-8 (f) The corporation may purchase, with corporation funds,
51-9 liability insurance for each of the members of the corporation's
51-10 board of directors, officers, and other employees of the
51-11 corporation in an amount that the corporation's board of directors
51-12 considers reasonably necessary to:
51-13 (1) insure against foreseeable liabilities; and
51-14 (2) provide for all costs of defending against those
51-15 liabilities, including, without limitation, court costs and
51-16 attorney's fees.
51-17 Sec. 2306.5545. CONFLICT OF INTEREST POLICIES. The board of
51-18 directors of the corporation shall develop and implement policies
51-19 relating to employee conflicts of interest that are substantially
51-20 similar to comparable policies that govern state employees.
51-21 Sec. 2306.555. POWERS. (a) The corporation has the powers
51-22 [and is subject to the limitations] provided for the department
51-23 under this chapter.
51-24 (b) In addition to the powers granted by Subsection (a), the
51-25 corporation has all rights and powers necessary to accomplish its
51-26 public purpose, including the powers to:
51-27 (1) purchase, service, sell, lend on the security of,
52-1 or otherwise transact in:
52-2 (A) mortgages, including federal mortgages and
52-3 federally insured mortgages;
52-4 (B) mortgage loans;
52-5 (C) deeds of trust; and
52-6 (D) loans or other advances of credit secured by
52-7 liens against manufactured housing;
52-8 (2) guarantee or insure timely payment of mortgage
52-9 loans and loans or other advances of credit secured by liens
52-10 against manufactured housing, provided that the corporation's
52-11 liability on that guaranty or insurance is limited to the assets of
52-12 a guaranty fund or self-insurance fund established and maintained
52-13 by the corporation;
52-14 (3) make mortgage loans and loans or other advances of
52-15 credit secured by liens against manufactured housing to individuals
52-16 and families of low to moderate income;
52-17 (4) make mortgage loans to provide temporary or
52-18 permanent financing or refinancing for housing or land
52-19 developments, including refunding outstanding obligations,
52-20 mortgages, or advances issued for those purposes;
52-21 (5) borrow, give security, pay interest or other
52-22 return, or issue bonds or other obligations, including notes,
52-23 debentures, or mortgage-backed securities, provided that each bond
52-24 or other obligation issued by the corporation must contain a
52-25 statement that the state is not obligated to pay the principal of
52-26 or any premium or interest on the bond or other obligation and that
52-27 the full faith and credit and the taxing power of the state are not
53-1 pledged, given, or loaned to the payment;
53-2 (6) acquire, hold, invest, use, pledge, reserve, and
53-3 dispose of its assets, revenues, income, receipts, funds, and money
53-4 from every source and to select one or more depositories, inside or
53-5 outside the state, subject to the terms of any resolution,
53-6 indenture, or other contract under which any bonds or other
53-7 obligations are issued or any guaranty or insurance is provided;
53-8 (7) establish, charge, and collect fees, charges, and
53-9 penalties in connection with the programs, services, and activities
53-10 of the corporation;
53-11 (8) procure insurance and pay premiums on insurance of
53-12 any type, in amounts, and from insurers as the corporation's board
53-13 of directors considers necessary and advisable to further the
53-14 corporation's public purpose, including, subject to Section
53-15 2306.554(f), liability insurance for the members of the
53-16 corporation's board of directors and the officers and other
53-17 employees of the corporation;
53-18 (9) make, enter into, and enforce contracts,
53-19 agreements, leases, indentures, mortgages, deeds, deeds of trust,
53-20 security agreements, pledge agreements, credit agreements, and
53-21 other instruments with any person, including a mortgage lender,
53-22 servicer, housing sponsor, the federal government, or any public
53-23 agency, on terms the corporation determines may be acceptable;
53-24 (10) own, rent, lease, or otherwise acquire, accept,
53-25 or hold real, personal, or mixed property, or any interest in
53-26 property, by purchase, exchange, gift, assignment, transfer,
53-27 foreclosure, mortgage, sale, lease, or otherwise and hold, manage,
54-1 operate, or improve real, personal, or mixed property, regardless
54-2 of location;
54-3 (11) sell, lease, encumber, mortgage, exchange,
54-4 donate, convey, or otherwise dispose of any or all of its
54-5 properties or any interest in its properties, deeds of trust, or
54-6 mortgage lien interest owned by it or under its control or custody,
54-7 or in its possession, and release or relinquish any right, title,
54-8 claim, lien, interest, easement, or demand, however acquired,
54-9 including any equity or right of redemption in property foreclosed
54-10 by it, by public or private sale, with or without public bidding;
54-11 (12) lease or rent any improvements, lands, or
54-12 facilities from any person;
54-13 (13) request, accept, and use gifts, loans, donations,
54-14 aid, guaranties, allocations, subsidies, grants, or contributions
54-15 of any item of value to further its public purpose; and
54-16 (14) exercise [Except as specifically provided by this
54-17 subchapter, the corporation has] the rights and powers of a
54-18 nonprofit corporation incorporated under the Texas Non-Profit
54-19 Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
54-20 Statutes).
54-21 (c) In exercising the foregoing powers granted to it under
54-22 this chapter, the corporation shall not compete with private
54-23 lenders and shall not originate or make any loan that can or would
54-24 be made at the same time by a private lender on substantially the
54-25 same or better terms within the submarket in which the loan is
54-26 proposed to be made, and, to the extent practical, the corporation
54-27 shall rely on private mortgage companies, banks, savings banks,
55-1 thrifts, savings and loan associations, or other similar loan
55-2 originating entities to originate loans. The corporation may act
55-3 as co-originator in a loan where the funding resources emanate from
55-4 the corporation.
55-5 (d) All of the mortgage banking operations shall be
55-6 dedicated to the furtherance of facilitating affordable housing
55-7 finance for the ultimate benefit of individuals and families of low
55-8 and very low income and families of moderate income who, generally,
55-9 are not afforded housing finance options through conventional
55-10 lending channels.
55-11 (e) The corporation may contract with the department and
55-12 with bond counsel, financial advisors, [or] underwriters, or other
55-13 providers of professional or consulting services.
55-14 (f) The corporation shall pay its expenses from any
55-15 available fund without resort to the general revenues of the state,
55-16 except as specifically appropriated by the legislature.
55-17 (g) The department may not transfer any funds to the
55-18 corporation to support the administration of the corporation or to
55-19 subsidize its operations in any way. The department shall be fully
55-20 compensated by the corporation for any property or employees that
55-21 are shared by the corporation and the department, and it is the
55-22 intent of the legislature that no employees be shared beyond the
55-23 time at which such sharing is absolutely necessary. This
55-24 subsection does not prohibit the corporation from receiving grants,
55-25 loans, or other program funds of a kind that are available to other
55-26 nonprofit corporations, or from using that portion of the program
55-27 funds that are allowed for administration of the program for
56-1 administrative purposes.
56-2 (h) Transfers of property from the department to the
56-3 corporation shall be fully compensated.
56-4 Sec. 2306.5555. PUBLIC ACCESS. The board of directors of
56-5 the corporation shall develop and implement policies that provide
56-6 the public with a reasonable opportunity to appear before the board
56-7 of directors and to speak on any issue under the jurisdiction of
56-8 the corporation.
56-9 Sec. 2306.556. [TAX] EXEMPT FROM TAXATION AND REGISTRATION.
56-10 (a) The corporation is exempt from all taxation by the state or a
56-11 political subdivision of the state, including a municipality.
56-12 (b) A bond or other obligation issued by the corporation is
56-13 an exempt security under The Securities Act (Article 581-1 et seq.,
56-14 Vernon's Texas Civil Statutes), and unless specifically provided
56-15 otherwise, under any subsequently enacted securities act. Any
56-16 contract, guaranty, or other document executed in connection with
56-17 the issuance of the bond or other obligation is not an exempt
56-18 security under that Act, and unless specifically provided
56-19 otherwise, under any subsequently enacted securities act.
56-20 Sec. 2306.557. DISTRIBUTION OF EARNINGS. Any part of
56-21 earnings remaining after payment of expenses and any establishment
56-22 of reserves by the corporation's board of directors may not inure
56-23 to any person except that the corporation shall deposit these
56-24 excess earnings with the department to the credit of the housing
56-25 trust [general revenue] fund established by Section 2306.201 [for
56-26 the benefit of the department] if the corporation's board of
56-27 directors determines that sufficient provision has been made for
57-1 the full payment of the expenses, bonds, and other obligations of
57-2 the corporation and for any establishment of reserves by the
57-3 corporation's board of directors.
57-4 Sec. 2306.558. ALTERATION AND TERMINATION. (a) Subject to
57-5 this subchapter and the prohibition on the impairment of contracts
57-6 in the law of this state, the corporation's board of directors by
57-7 written resolution may alter the structure, organization, programs,
57-8 or activities of the corporation or terminate and dissolve the
57-9 corporation.
57-10 (b) The corporation's board of directors shall dissolve the
57-11 corporation if the board by resolution determines that:
57-12 (1) the purposes for which the corporation was formed
57-13 have been substantially fulfilled; and
57-14 (2) all bonds and other obligations issued by the
57-15 corporation and all guaranties and insurance and other contractual
57-16 obligations have been fully paid or provision for that payment has
57-17 been made.
57-18 (c) On dissolution, the title to funds and properties
57-19 previously owned by the corporation shall be transferred to the
57-20 department.
57-21 Sec. 2306.559. REPORTING REQUIREMENTS [ANNUAL REPORT]. (a)
57-22 The corporation shall file an annual report of the financial
57-23 activity of the corporation with the department. The corporation's
57-24 board of directors shall submit the report to the governor,
57-25 lieutenant governor, speaker of the house of representatives,
57-26 comptroller, and Legislative Budget Board.
57-27 (b) The corporation shall file the report by the date
58-1 established in the General Appropriations Act [before the 90th day
58-2 after the last day of the corporation's fiscal year].
58-3 (c) The corporation shall prepare the report in accordance
58-4 with generally accepted accounting principles.
58-5 (d) The report must include:
58-6 (1) a statement of support, revenue, and expenses and
58-7 change in fund balances;
58-8 (2) a statement of functional expenses; and
58-9 (3) balance sheets for all funds.
58-10 (e) The corporation shall file quarterly performance reports
58-11 with the department.
58-12 (f) Promptly on receipt, the corporation shall file with the
58-13 Bond Review Board a report for the preceding fiscal year. The
58-14 report must contain the status of all outstanding debts and
58-15 obligations of the corporation, the status of collateral pledged as
58-16 security for those debts and obligations, and a maturity and
58-17 payment schedule for those debts and obligations.
58-18 Sec. 2306.560. AUDIT. (a) The corporation shall hire an
58-19 independent certified public accountant to audit the corporation's
58-20 books and accounts for each fiscal year. The corporation shall
58-21 file a copy of the audit with the department and shall submit the
58-22 audit report to the governor, lieutenant governor, speaker of the
58-23 house of representatives, comptroller, Bond Review Board, State
58-24 Auditor's Office, and Legislative Budget Board not later than the
58-25 30th day after the submission date established in the General
58-26 Appropriations Act for the annual financial report.
58-27 (b) The corporation is subject to audit by the state
59-1 auditor.
59-2 (c) The corporation shall submit budget and financial
59-3 information to the legislative budget office as required by the
59-4 director of the legislative budget office.
59-5 (d) All transfers of funds, personnel, or in-kind
59-6 contributions from the department to the corporation must be
59-7 reported to the Legislative Budget Board.
59-8 Sec. 2306.561. LIABILITY. (a) The directors, officers, and
59-9 employees of the corporation are not personally liable for bonds or
59-10 other obligations issued or contracts, guaranties, or insurance
59-11 executed by the corporation, or for any other action taken in
59-12 accordance with the powers and duties authorized by this subchapter
59-13 or in the good faith belief that that action was taken in
59-14 accordance with the powers and duties authorized by this
59-15 subchapter.
59-16 (b) The directors and officers of the corporation are immune
59-17 from civil liability to the same extent that a volunteer who serves
59-18 as an officer, director, or trustee of a charitable organization is
59-19 immune from civil liability under Chapter 84, Civil Practice and
59-20 Remedies Code.
59-21 (c) The civil liability of an employee of the corporation is
59-22 limited to the same extent that the civil liability of an employee
59-23 of a charitable organization is limited under Chapter 84, Civil
59-24 Practice and Remedies Code.
59-25 (d) The limitations on liability contained in this section
59-26 do not limit or impair the limitations on liability otherwise
59-27 available to the corporation's directors, officers, and employees.
60-1 SECTION 48. Chapter 2306, Government Code, is amended by
60-2 adding Subchapter AA to read as follows:
60-3 SUBCHAPTER AA. EMERGENCY NUTRITION AND TEMPORARY EMERGENCY
60-4 RELIEF PROGRAM
60-5 Sec. 2306.651. DEFINITIONS. In this subchapter:
60-6 (1) "Applicant" means the commissioners court of a
60-7 county, the governing body of another political subdivision, or a
60-8 nonprofit organization.
60-9 (2) "Nonprofit organization" means a private,
60-10 nonprofit, tax-exempt corporation under Section 501(c)(3), Internal
60-11 Revenue Code of 1986 (26 U.S.C. Section 501(c)(3)).
60-12 (3) "Program" means a system of providing temporary
60-13 emergency relief to needy persons.
60-14 Sec. 2306.652. TEMPORARY EMERGENCY RELIEF PROGRAM. (a) The
60-15 department shall establish a temporary emergency relief program to
60-16 assist counties, in cooperation with other public entities and
60-17 nonprofit organizations, in meeting the needs of individuals and
60-18 families for temporary emergency relief.
60-19 (b) The department shall establish the emergency nutrition
60-20 program as part of the temporary emergency relief program
60-21 established under this subchapter to meet the unmet need for
60-22 emergency food assistance. The department shall administer the
60-23 emergency nutrition program in the same fashion and under the same
60-24 procedures as govern the administration of the temporary emergency
60-25 relief program.
60-26 Sec. 2306.653. APPLICATION. (a) A county may apply to the
60-27 department for a grant-in-aid to establish and administer a program
61-1 under this subchapter.
61-2 (b) If a county declines to act, the department may accept
61-3 applications from other political subdivisions or from nonprofit
61-4 organizations. The political subdivision or nonprofit organization
61-5 must first notify the county judge of its intention to submit an
61-6 application for a grant-in-aid.
61-7 (c) An application submitted under this section must provide
61-8 evidence that a county requires assistance and that the applicant
61-9 has consulted with public entities, nonprofit organizations,
61-10 voluntary associations, representatives of low-income persons, and
61-11 other groups involved in providing assistance to needy persons.
61-12 (d) The department shall adopt rules establishing the
61-13 criteria for determining whether an applicant qualifies under this
61-14 subchapter. The department may approve only one program for each
61-15 county.
61-16 (e) A decision by a county to administer a program under
61-17 this subchapter remains in effect until the county notifies the
61-18 department that the county no longer wants to participate in the
61-19 program. If a county decides to discontinue its participation, the
61-20 department may choose an applicant as an alternative participant as
61-21 prescribed by Subsection (b) of this section and by department
61-22 rules.
61-23 (f) The department shall develop standards and procedures
61-24 for the program that permit all counties in the state to
61-25 participate.
61-26 Sec. 2306.654. LOCAL ALLOCATION. (a) State funds provided
61-27 to a local applicant under this subchapter may not be used for
62-1 local administrative costs.
62-2 (b) An allocation to a county from the program established
62-3 by Section 2306.652 shall be based on the county's demonstrated
62-4 need for the money. The formula used by the department to allocate
62-5 the money shall include:
62-6 (1) the number of unemployed persons in the county
62-7 during the most recent 12-month period for which data is available
62-8 compared to the number of unemployed people in the state during
62-9 that same 12-month period; and
62-10 (2) the number of people at or below the poverty line
62-11 in the county during the most recent 12-month period for which data
62-12 is available compared to the number of people at or below the
62-13 poverty line in the state during that same 12-month period.
62-14 Sec. 2306.655. LOCAL PLAN; DISBURSEMENT. (a) An applicant
62-15 must submit to the department a plan for providing emergency
62-16 relief.
62-17 (b) The plan must contain a description of the target
62-18 population, the eligibility criteria for receipt of services, the
62-19 nature and scope of benefits to be provided, methods of
62-20 administration, and a budget.
62-21 (c) The plan must also show evidence of consultation with
62-22 the entities listed in Section 2306.653(c).
62-23 (d) On certification by the department that the applicant
62-24 qualifies under this subchapter, the department shall disburse
62-25 money available for that purpose to the applicant to be used to
62-26 establish a program in the affected county.
62-27 Sec. 2306.656. ELIGIBILITY FOR ASSISTANCE. (a) Each
63-1 county, political subdivision, or nonprofit organization approved
63-2 by the department for establishing a program shall establish its
63-3 own criteria for persons eligible to receive benefits under the
63-4 program and shall include the criteria in the plan for providing
63-5 emergency relief submitted to the department.
63-6 (b) Before establishing eligibility and the frequency and
63-7 duration of benefits provided under the program, the county,
63-8 political subdivision, or nonprofit organization shall allow
63-9 adequate notice and opportunity for public comment, including
63-10 comments from entities listed in Section 2306.653(c).
63-11 (c) A county, political subdivision, or nonprofit
63-12 organization may not set the eligibility level at less than 75
63-13 percent of the federal poverty level based on the federal Office of
63-14 Management and Budget poverty index in effect at the time the plan
63-15 is submitted to the department.
63-16 (d) Assistance to persons eligible to participate in a
63-17 program authorized by this subchapter shall be provided through
63-18 vouchers and purchased services in accordance with the approved
63-19 plan submitted to the department. The assistance may include the
63-20 provision of utilities, food, housing, and clothing to needy
63-21 persons.
63-22 (e) Records pertaining to a program under this subchapter
63-23 are subject to audit by the department, an auditor approved by the
63-24 department, or the state auditor.
63-25 Sec. 2306.657. REPORTS AND PUBLIC NOTICES. (a) As part of
63-26 the annual report required by Section 2306.072, Government Code,
63-27 the director shall include a written report describing and
64-1 analyzing the operation of programs under this subchapter.
64-2 (b) A county, political subdivision, or nonprofit
64-3 organization funded under this subchapter shall assure the
64-4 department that information is provided to the public regarding
64-5 eligibility for and the nature of a program operated under this
64-6 subchapter.
64-7 Sec. 2306.658. RELATIONSHIP TO FEDERAL LAW. (a) If a
64-8 federal law or regulation is changed without making a provision for
64-9 temporary waivers to allow compliance with state law and, as a
64-10 result of this change, there is insufficient time to comply with
64-11 all the procedures required by this subchapter, the agency or
64-12 entity affected may act so as to comply with federal law and shall
64-13 comply with the applicable procedures required by this subchapter
64-14 as soon as possible.
64-15 (b) If a federal statute or court order conflicts with this
64-16 subchapter, the federal law or court order prevails over this
64-17 subchapter.
64-18 SECTION 49. Chapter 2306, Government Code, is amended by
64-19 adding Subchapter BB to read as follows:
64-20 SUBCHAPTER BB. LOW INCOME HOUSING TAX CREDIT PROGRAM
64-21 Sec. 2306.671. DEADLINES FOR ALLOCATION OF LOW INCOME
64-22 HOUSING TAX CREDITS. (a) Not later than November 15 of each year,
64-23 the department shall prepare and submit to the board for adoption
64-24 the qualified allocation plan required by federal law for use by
64-25 the department in setting criteria and priorities for the
64-26 allocation of tax credits under the low income housing tax credit
64-27 program.
65-1 (b) The board shall adopt and submit to the governor the
65-2 qualified allocation plan not later than January 31.
65-3 (c) The governor shall approve, reject, or modify and
65-4 approve the qualified allocation plan not later than February 28.
65-5 (d) An applicant for a low income housing tax credit to be
65-6 issued a commitment during the initial allocation cycle in a
65-7 calendar year must submit an application to the department not
65-8 later than May 15.
65-9 (e) The board shall issue a commitment for allocation for
65-10 the initial cycle of low income housing tax credits each year in
65-11 accordance with the qualified allocation plan not later than July
65-12 31.
65-13 Sec. 2306.672. SCORING OF APPLICATIONS. (a) The goal of
65-14 the low income housing tax credit program is to provide permanent
65-15 affordable housing. In allocating low income housing tax credits,
65-16 the department shall score each application using a point system
65-17 based on criteria adopted by the department that are consistent
65-18 with the department's housing goals. The department shall publish
65-19 in the qualified allocation plan any discretionary factor that the
65-20 department will consider in scoring an application.
65-21 (b) If an applicant meets the department's scoring and
65-22 underwriting criteria, the department shall add:
65-23 (1) five bonus points to the applicant's score if the
65-24 applicant agrees to provide to a qualified nonprofit organization
65-25 or tenant organization a right of first refusal to purchase the
65-26 property to which the tax credit applies at the minimum price
65-27 provided in, and in accordance with the requirements of, Section
66-1 42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
66-2 42(i)(7)); and
66-3 (2) two bonus points to the applicant's score if the
66-4 application is received within the first 10 days of the application
66-5 acceptance period.
66-6 (c) The department shall provide the score of each
66-7 application on each criterion to the board and the governor. The
66-8 results of the scoring shall be available to the public.
66-9 (d) Upon awarding tax credit allocations, the board shall
66-10 document the reasons for each project's selection, including an
66-11 explanation of all discretionary factors used in making its
66-12 determination.
66-13 Sec. 2306.673. SALE OF CERTAIN LOW INCOME HOUSING TAX CREDIT
66-14 PROPERTY. (a) Not later than two years before the expiration of
66-15 the compliance period, a recipient of a low income housing tax
66-16 credit who agreed to provide a right of first refusal under Section
66-17 2306.672(b)(1) and who intends to sell the property shall notify
66-18 the department of the recipient's intent to sell. The recipient
66-19 shall notify qualified nonprofit organizations and tenant
66-20 organizations of the opportunity to purchase the property.
66-21 (b) The recipient may:
66-22 (1) during the first six-month period after notifying
66-23 the department, negotiate or enter into a purchase agreement only
66-24 with a qualified nonprofit organization that is also a community
66-25 housing development organization as defined by the federal home
66-26 investment partnership program;
66-27 (2) during the second six-month period after notifying
67-1 the department, negotiate or enter into a purchase agreement with
67-2 any qualified nonprofit organization or tenant organization; and
67-3 (3) during the year before the expiration of the
67-4 compliance period, negotiate or enter into a purchase agreement
67-5 with the department or any qualified nonprofit organization or
67-6 tenant organization approved by the department.
67-7 (c) Notwithstanding an agreement under Section
67-8 2306.672(b)(1), a recipient of a low income housing tax credit may
67-9 sell property to which the tax credit applies to any purchaser
67-10 after the expiration of the compliance period if a qualified
67-11 nonprofit organization or tenant organization does not offer to
67-12 purchase the property at the minimum price provided by Section
67-13 42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
67-14 42(i)(7)), and the department declines to purchase the property.
67-15 (d) In this section, "compliance period" has the meaning
67-16 assigned by Section 42(i)(1), Internal Revenue Code of 1986 (26
67-17 U.S.C. Section 42(i)(1)).
67-18 Sec. 2306.674. DEPARTMENT PURCHASE OF LOW INCOME HOUSING TAX
67-19 CREDIT PROPERTY. The board by rule may develop and implement a
67-20 program to purchase low income housing tax credit property that is
67-21 not purchased by a qualified nonprofit organization or tenant
67-22 organization. The department may not purchase low income housing
67-23 tax credit property if the board finds that the purchase is not in
67-24 the best interest of the state.
67-25 Sec. 2306.675. ALLOCATION OF LOW INCOME HOUSING TAX CREDIT.
67-26 (a) Department staff shall provide recommendations to the board
67-27 concerning the financial or programmatic viability of each
68-1 application for a low income housing tax credit before the board
68-2 makes a decision relating to the allocation of tax credits.
68-3 (b) Not later than the deadline specified in Section
68-4 2306.671(e), the board shall issue a commitment for tax credits
68-5 available to the department. Concurrently with the issuance of a
68-6 commitment for initial tax credits, the board shall establish a
68-7 waiting list of additional applications, ranked in descending order
68-8 of priority, to be issued a commitment for tax credits if
68-9 additional credits become available.
68-10 Sec. 2306.676. EQUAL ACCESS TO PROGRAM. The department
68-11 shall establish procedures through the qualified allocation plan to
68-12 ensure that each applicant for a low income housing tax credit has
68-13 a fair and equal opportunity to submit or resubmit an application
68-14 and submit for consideration any authorized supplementary materials
68-15 and information.
68-16 Sec. 2306.677. FEES. (a) A fee charged by the department
68-17 to an applicant for a low income housing tax credit may not be
68-18 excessive and must reflect the department's actual costs in
68-19 processing applications and providing copies of documents in
68-20 connection with the allocation process.
68-21 (b) The department shall refund a fee charged to an
68-22 applicant if the department does not score the applicant's
68-23 application, except the department may retain a reasonable portion
68-24 of the fee to compensate the department for costs associated with
68-25 the application.
68-26 Sec. 2306.678. PUBLIC INFORMATION AND HEARINGS ON PROGRAM.
68-27 (a) The department shall provide information regarding the low
69-1 income housing tax credit program, including notices of public
69-2 hearings, meetings, and opening and closing dates for applications
69-3 for a low income housing tax credit, to local housing departments,
69-4 newspapers, nonprofit organizations, on-site property managers of
69-5 occupied projects that are the subject of tax credit applications
69-6 for posting in prominent locations at those projects, and other
69-7 interested persons and community groups, who request the
69-8 information.
69-9 (b) The department shall hold at least three public hearings
69-10 in different regions of the state to receive public comments on low
69-11 income housing tax credit applications.
69-12 SECTION 50. Section 11.001, Human Resources Code, is amended
69-13 to read as follows:
69-14 Sec. 11.001. Definitions. Except as provided by Section
69-15 [34.002 or] 40.001, in this title:
69-16 (1) "Board" means the Texas Board of Human Services.
69-17 (2) "Department" means the Texas Department of Human
69-18 Services.
69-19 (3) "Commissioner" means the Commissioner of Human
69-20 Services.
69-21 (4) "Assistance" means all forms of assistance and
69-22 services for needy persons authorized by Subtitle C.
69-23 (5) "Financial assistance" means money payments for
69-24 needy persons authorized by Chapter 31.
69-25 (6) "Medical assistance" means assistance for needy
69-26 persons authorized by Chapter 32.
69-27 SECTION 51. Section 373.005, Local Government Code, is
70-1 amended by adding Subsection (d) to read as follows:
70-2 (d) A municipality may issue notes or other obligations
70-3 guaranteed by the secretary of housing and urban development under
70-4 Section 108, Housing and Community Development Act of 1974 (42
70-5 U.S.C. Section 5308), as amended, for the purpose of providing
70-6 financing for those activities described in Section 108, Housing
70-7 and Community Development Act (42 U.S.C. Section 5308), as amended,
70-8 in furtherance of an approved community development program. The
70-9 Section 108 guaranteed notes additionally may be secured by and
70-10 made payable from the same sources as obligations issued under
70-11 Subchapter C, Chapter 271, Local Government Code, subject to the
70-12 notice provisions set forth therein. The Section 108 guaranteed
70-13 notes or other obligations may be issued in such form,
70-14 denominations, manner, terms, and conditions, bear interest at such
70-15 rates, be interim or permanent notes or obligations, be subject to
70-16 transfer, exchange, change, conversion, or replacement, and be sold
70-17 in such manner, at such price, and under such terms, all as
70-18 provided in the ordinance or resolution authorizing the issuance of
70-19 such Section 108 guaranteed notes or obligations.
70-20 SECTION 52. Section 395.016, Local Government Code, is
70-21 amended by adding Subsection (g) to read as follows:
70-22 (g) Notwithstanding Subsections (a)-(e) and Section 395.017,
70-23 the political subdivision may reduce or waive an impact fee for any
70-24 service unit that would qualify as affordable housing under 42
70-25 U.S.C. Section 12745, as amended, once the service unit is
70-26 constructed. If affordable housing as defined by 42 U.S.C. Section
70-27 12745, as amended, is not constructed, the political subdivision
71-1 may reverse its decision to waive or reduce the impact fee, and the
71-2 political subdivision may assess an impact fee at any time during
71-3 the development approval or building process or after the building
71-4 process if an impact fee was not already assessed.
71-5 SECTION 53. Effective January 1, 1998, Subchapter B, Chapter
71-6 23, Tax Code, is amended by adding Section 23.21 to read as
71-7 follows:
71-8 Sec. 23.21. PROPERTY USED TO PROVIDE AFFORDABLE HOUSING. In
71-9 appraising real property that is rented or leased to a low-income
71-10 individual or family meeting income-eligibility standards
71-11 established by the owner of the property under regulations or
71-12 restrictions limiting to a percentage of the individual's or the
71-13 family's income the amount that the individual or family may be
71-14 required to pay for the rental or lease of the property, the chief
71-15 appraiser shall take into account the extent to which that use and
71-16 limitation reduce the market value of the property.
71-17 SECTION 54. The following laws are repealed:
71-18 (1) Sections 2306.122, 2306.143, and 2306.513(e),
71-19 Government Code; and
71-20 (2) Chapter 34, Human Resources Code.
71-21 SECTION 55. Section 395.016(g), Local Government Code, as
71-22 added by this Act, applies to any assessed or unassessed impact fee
71-23 that is not collected before the effective date of this Act. An
71-24 impact fee that is collected before the effective date of this Act
71-25 is governed by the law in effect on the day it was collected, and
71-26 the former law is continued in effect for that purpose.
71-27 SECTION 56. The Texas Department of Housing and Community
72-1 Affairs shall begin to implement Section 2306.253, Government Code,
72-2 as added by this Act, as soon as possible and shall fully implement
72-3 the homebuyer education program with educational materials
72-4 available in all counties not later than September 1, 1998.
72-5 SECTION 57. This Act takes effect September 1, 1997.
72-6 SECTION 58. The change in law made to Section 2306.053,
72-7 Government Code, by this Act applies to a cause of action filed on
72-8 or after the effective date of this Act. A cause of action filed
72-9 before the effective date of this Act is governed by the law in
72-10 existence when the cause of action was filed, and that law is
72-11 continued in effect for that purpose.
72-12 SECTION 59. The importance of this legislation and the
72-13 crowded condition of the calendars in both houses create an
72-14 emergency and an imperative public necessity that the
72-15 constitutional rule requiring bills to be read on three several
72-16 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2577 was passed by the House on May
9, 1997, by a non-record vote; that the House refused to concur in
Senate amendments to H.B. No. 2577 on May 28, 1997, and requested
the appointment of a conference committee to consider the
differences between the two houses; and that the House adopted the
conference committee report on H.B. No. 2577 on June 1, 1997, by a
non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2577 was passed by the Senate, with
amendments, on May 24, 1997, by a viva-voce vote; at the request of
the House, the Senate appointed a conference committee to consider
the differences between the two houses; and that the Senate adopted
the conference committee report on H.B. No. 2577 on June 1, 1997,
by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor