75R13782 E
By Hill H.B. No. 2577
Substitute the following for H.B. No. 2577:
By Hill C.S.H.B. No. 2577
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Texas Department of Housing and Community Affairs.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2166.003(a), Government Code, is amended
1-5 to read as follows:
1-6 (a) Unless otherwise provided, this chapter does not apply
1-7 to:
1-8 (1) a project constructed by and for the Texas
1-9 Department of Transportation;
1-10 (2) a project constructed by and for a state
1-11 institution of higher education;
1-12 (3) a pen, shed, or ancillary building constructed by
1-13 and for the Department of Agriculture for the processing of
1-14 livestock before export;
1-15 (4) a project constructed by the Parks and Wildlife
1-16 Department;
1-17 (5) a repair or rehabilitation project, except a major
1-18 renovation, of buildings and grounds on the commission inventory;
1-19 (6) a repair and rehabilitation project of another
1-20 using agency, if all labor for the project is provided by the
1-21 regular maintenance force of the using agency under specific
1-22 legislative authorization and the project does not require the
1-23 advance preparation of working plans or drawings; [or]
1-24 (7) a repair and rehabilitation project involving the
2-1 use of contract labor, if the project has been excluded from this
2-2 chapter by commission rule and does not require the advance
2-3 preparation of working plans or drawings; or
2-4 (8) a repair, rehabilitation, or construction project
2-5 on property owned by the Texas Department of Housing and Community
2-6 Affairs or the Texas State Affordable Housing Corporation.
2-7 SECTION 2. Section 2167.001(b), Government Code, is amended
2-8 to read as follows:
2-9 (b) This chapter does not apply to:
2-10 (1) aircraft hangar space;
2-11 (2) radio antenna space;
2-12 (3) boat storage space;
2-13 (4) vehicle parking space;
2-14 (5) residential space for a Texas Department of Mental
2-15 Health and Mental Retardation program;
2-16 (6) residential space for a Texas Youth Commission
2-17 program;
2-18 (7) space to be used for less than one month for
2-19 meetings, conferences, conventions, seminars, displays,
2-20 examinations, auctions, or similar purposes;
2-21 (8) district office space for members of the
2-22 legislature; [or]
2-23 (9) space used by the Texas Employment Commission; or
2-24 (10) residential property acquired by the Texas
2-25 Department of Housing and Community Affairs or the Texas State
2-26 Affordable Housing Corporation that is offered for sale or rental
2-27 to individuals and families of low or very low income or families
3-1 of moderate income.
3-2 SECTION 3. Section 2305.033(a), Government Code, is amended
3-3 to read as follows:
3-4 (a) The Texas Department of Housing and Community Affairs is
3-5 the supervising state agency for the emergency nutrition and
3-6 temporary emergency relief program established under Subchapter AA,
3-7 Chapter 2306 [Chapter 34, Human Resources Code].
3-8 SECTION 4. Section 2306.001, Government Code, is amended to
3-9 read as follows:
3-10 Sec. 2306.001. Purposes. The purposes of the department are
3-11 to:
3-12 (1) assist local governments in:
3-13 (A) providing essential public services for
3-14 their residents; and
3-15 (B) overcoming financial, social, and
3-16 environmental problems;
3-17 (2) provide for the housing needs of individuals and
3-18 families of low and very low income and families of moderate
3-19 income;
3-20 (3) contribute to the preservation, development, and
3-21 redevelopment of neighborhoods and communities, including
3-22 cooperation in the preservation of government-assisted housing
3-23 occupied by individuals and families of very low and extremely low
3-24 income;
3-25 (4) assist the governor and the legislature in
3-26 coordinating federal and state programs affecting local government;
3-27 and
4-1 (5) inform state officials and the public of the needs
4-2 of local government.
4-3 SECTION 5. Section 2306.004, Government Code, is amended to
4-4 read as follows:
4-5 Sec. 2306.004. DEFINITIONS. In this chapter:
4-6 (1) "Board" means the governing board of the
4-7 department.
4-8 (2) "Bond" means an evidence of indebtedness or other
4-9 obligation, regardless of the source of payment, issued by the
4-10 department under Subchapter P, including a bond, note, or bond or
4-11 revenue anticipation note, regardless of whether the obligation is
4-12 general or special, negotiable or nonnegotiable, in bearer or
4-13 registered form, in certified or book-entry form, in temporary or
4-14 permanent form, or with or without interest coupons.
4-15 (3) "Contract for Deed" means a seller-financed
4-16 contract for the conveyance of real property under which:
4-17 (A) legal title does not pass to the purchaser
4-18 until the consideration of the contract is fully paid to the
4-19 seller; and
4-20 (B) the seller's remedy for nonpayment is
4-21 recision or forfeiture or acceleration of any remaining payments
4-22 rather than judicial or nonjudicial foreclosure.
4-23 (4) "Department" means the Texas Department of Housing
4-24 and Community Affairs.
4-25 (5) [(4)] "Director" means the executive director of
4-26 the department.
4-27 (6) [(5)] "Economically depressed or blighted area"
5-1 means an area:
5-2 (A) that is a qualified census tract as defined
5-3 by Section 143(j), Internal Revenue Code of 1986 (26 U.S.C. Section
5-4 143(j)) or has been determined by the housing finance division to
5-5 be [a qualified census tract or] an area of chronic economic
5-6 distress under Section 143 [103A], Internal Revenue Code of 1986
5-7 [1954] (26 U.S.C. Section 143 [103A]);
5-8 (B) established in a municipality that has a
5-9 substantial number of substandard, slum, deteriorated, or
5-10 deteriorating structures and that suffers from a high relative rate
5-11 of unemployment; or
5-12 (C) that has been designated as [designed and
5-13 included in] a reinvestment zone [tax increment district created]
5-14 under Chapter 311, Tax Code [695, Acts of the 66th Legislature,
5-15 Regular Session, 1979 (Article 1066d, Vernon's Texas Civil
5-16 Statutes)].
5-17 (7) [(6)] "Elderly individual" means an individual [60
5-18 years] of an age specified by the board or by the applicable
5-19 federal program [or older].
5-20 (8) [(7)] "Family of moderate income" means a family:
5-21 (A) that is determined by the board to require
5-22 assistance, taking into account:
5-23 (i) the amount of the total income
5-24 available for housing needs of the individuals and families;
5-25 (ii) the size of the family;
5-26 (iii) the cost and condition of available
5-27 housing facilities;
6-1 (iv) the ability of the individuals and
6-2 families to compete successfully in the private housing market and
6-3 to pay the amounts required by private enterprise for sanitary,
6-4 decent, and safe housing; and
6-5 (v) standards established for various
6-6 federal programs determining eligibility based on income; and
6-7 (B) that does not qualify as a family of low
6-8 income.
6-9 (9) [(8)] "Federal government" means the United States
6-10 of America and includes any corporate or other instrumentality of
6-11 the United States of America, including the Resolution Trust
6-12 Corporation.
6-13 (10) [(9)] "Federal mortgage" means a mortgage loan
6-14 for residential housing:
6-15 (A) that is made by the federal government; or
6-16 (B) for which a commitment to make has been
6-17 given by the federal government.
6-18 (11) [(10)] "Federally assisted new communities" means
6-19 federally assisted areas that receive or will receive assistance in
6-20 the form of loan guarantees under Title X of the National Housing
6-21 Act (12 U.S.C. Section 1701 et seq.), and a portion of that
6-22 federally assisted area has received grants under Section 107(a)(1)
6-23 of the Housing and Community Development Act of 1974, as amended
6-24 (42 U.S.C. Section 5301 et seq.).
6-25 (12) [(11)] "Federally insured mortgage" means a
6-26 mortgage loan for residential housing that:
6-27 (A) is insured or guaranteed by the federal
7-1 government; or
7-2 (B) the federal government has committed to
7-3 insure or guarantee.
7-4 (13) [(12)] "Housing development" means property or
7-5 work or a project, building, structure, facility, or undertaking,
7-6 whether existing, new construction, remodeling, improvement, or
7-7 rehabilitation, that meets or is designed to meet minimum property
7-8 standards required by the department and that is financed under the
7-9 provisions of this chapter for the primary purpose of providing
7-10 sanitary, decent, and safe dwelling accommodations for rent, lease,
7-11 use, or purchase by individuals and families of low and very low
7-12 income and families of moderate income in need of housing. The
7-13 term includes:
7-14 (A) buildings, structures, land, equipment,
7-15 facilities, or other real or personal properties that are
7-16 necessary, convenient, or desirable appurtenances, including
7-17 streets, water, sewers, utilities, parks, site preparation,
7-18 landscaping, stores, offices, and other nonhousing facilities, such
7-19 as administrative, community, and recreational facilities the
7-20 department determines to be necessary, convenient, or desirable
7-21 appurtenances; and
7-22 (B) single and multifamily dwellings in rural
7-23 and urban areas.
7-24 (14) [(13)] "Housing sponsor" means:
7-25 (A) an individual, including an individual or
7-26 family of low and very low income or family of moderate income,
7-27 joint venture, partnership, limited partnership, trust, firm,
8-1 corporation, or cooperative that is approved by the department as
8-2 qualified to own, construct, acquire, rehabilitate, operate,
8-3 manage, or maintain a housing development, subject to the
8-4 regulatory powers of the department and other terms and conditions
8-5 in this chapter; or
8-6 (B) in an economically depressed or blighted
8-7 area, or in a federally assisted new community located within a
8-8 home-rule municipality, the term may include an individual or
8-9 family whose income exceeds the moderate income level if at least
8-10 90 percent of the total mortgage amount available under a mortgage
8-11 revenue bond issue is designated for individuals and families of
8-12 low income or families of moderate income.
8-13 (15) [(14)] "Individuals and families of low income"
8-14 means individuals and families earning not more than 80 percent of
8-15 the area median income or applicable federal poverty line, as
8-16 determined under Section 2306.123 or Section 2306.1231.
8-17 (16) [(15)] "Individuals and families of very low
8-18 income" means individuals and families earning not more than 60
8-19 percent of the area median income or applicable federal poverty
8-20 line, as determined under Section 2306.123 or Section 2306.1231.
8-21 (17) "Individuals and families of extremely low
8-22 income" means individuals and families earning not more than 30
8-23 percent of the area median income or applicable federal poverty
8-24 line, as determined under Section 2306.123 or Section 2306.1231.
8-25 (18) [(16)] "Land development" means:
8-26 (A) acquiring land for residential housing
8-27 construction; and
9-1 (B) making, installing, or constructing
9-2 nonresidential improvements that the department determines are
9-3 necessary or desirable for a housing development to be financed by
9-4 the department, including:
9-5 (i) waterlines and water supply
9-6 installations;
9-7 (ii) sewer lines and sewage disposal
9-8 installations;
9-9 (iii) steam, gas, and electric lines and
9-10 installations; and
9-11 (iv) roads, streets, curbs, gutters, and
9-12 sidewalks, whether on or off the site.
9-13 (19) [(17)] "Local government" means a county,
9-14 municipality, special district, or any other political subdivision
9-15 of the state, a public, nonprofit housing finance corporation
9-16 created under Chapter 394, Local Government Code, or a combination
9-17 of those entities.
9-18 (20) [(18)] "Mortgage" means an [interest-bearing]
9-19 obligation, including a mortgage, mortgage deed, bond, note, deed
9-20 of trust, or other instrument, that is a lien:
9-21 (A) on real property; or
9-22 (B) on a leasehold under a lease having a
9-23 remaining term that, at the time the lien is acquired, does not
9-24 expire until after the maturity date of the [interest-bearing]
9-25 obligation secured by the lien.
9-26 (21) [(19)] "Mortgage lender" means a bank, trust
9-27 company, savings bank, mortgage company, mortgage banker, credit
10-1 union, national banking association, savings and loan association,
10-2 life insurance company, or other financial institution authorized
10-3 to transact business in this state and approved as a mortgage
10-4 lender by the department.
10-5 (22) [(20)] "Mortgage loan" means an
10-6 [interest-bearing] obligation secured by a mortgage.
10-7 (23) [(21)] "Municipality" includes only a
10-8 municipality in this state.
10-9 (24) [(22)] "Public agency" means the department or
10-10 any [an] agency, board, authority, department, commission,
10-11 political subdivision, municipal corporation, district, public
10-12 corporation, body politic, or instrumentality of this state,
10-13 including a county, municipality, housing authority,
10-14 state-supported institution of higher education, school district,
10-15 junior college, other district or authority, or other type of
10-16 governmental entity of this state.
10-17 (25) [(23)] "Real estate owned contractor" means a
10-18 person required to meet the obligations of a contract with the
10-19 department [housing finance division] for managing and marketing
10-20 foreclosed property.
10-21 (26) [(24)] "Real property" means land, including
10-22 improvements and fixtures on the land, property of any nature
10-23 appurtenant to the land or used in connection with the land, and a
10-24 legal or equitable estate, interest, or right in land, including
10-25 leasehold interests, terms for years, and a judgment, mortgage, or
10-26 other lien.
10-27 (27) [(25)] "Reserve fund" means any [the housing
11-1 finance division's] reserve fund established by the department.
11-2 (28) [(26)] "Residential housing" means a specific
11-3 work or improvement undertaken primarily to provide dwelling
11-4 accommodations, including the acquisition, construction,
11-5 reconstruction, remodeling, improvement, or rehabilitation of land
11-6 and buildings and improvements to the buildings for residential
11-7 housing and other incidental or appurtenant nonhousing facilities.
11-8 (29) [(27)] "Servicer" means a person required to meet
11-9 contractual obligations with the housing finance division or with a
11-10 mortgage lender relating to a loan financed under Subchapter J,
11-11 including:
11-12 (A) purchasing mortgage certificates backed by
11-13 mortgage loans;
11-14 (B) collecting principal and interest from the
11-15 borrower;
11-16 (C) sending principal and interest payments to
11-17 the division;
11-18 (D) preparing periodic reports;
11-19 (E) notifying the primary mortgage and pool
11-20 insurers of delinquent and foreclosed loans; and
11-21 (F) filing insurance claims on foreclosed
11-22 property.
11-23 (30) "State low income housing plan" means the
11-24 comprehensive and integrated plan for the state assessment of
11-25 housing needs and allocation of housing resources.
11-26 SECTION 6. Section 2306.007(a), Government Code, is amended
11-27 to read as follows:
12-1 (a) To establish an economically depressed or blighted area
12-2 under Section 2306.004(6)(B) [2306.004(5)(B)] or (C), the governing
12-3 body of a municipality must hold a public hearing and find that the
12-4 area:
12-5 (1) substantially impairs or arrests the sound growth
12-6 of the municipality; or
12-7 (2) is an economic or social liability and is a menace
12-8 to the public health, safety, morals, or welfare in its present
12-9 condition and use.
12-10 SECTION 7. Section 2306.021(b), Government Code, is amended
12-11 to read as follows:
12-12 (b) The department is composed of:
12-13 (1) the community affairs division;
12-14 (2) the housing finance division;
12-15 (3) the manufactured housing division; [and]
12-16 (4) the community development division; and
12-17 (5) any other division created by the director.
12-18 SECTION 8. Section 2306.032(b), Government Code, is amended
12-19 to read as follows:
12-20 (b) The board shall keep complete minutes of board meetings.
12-21 The accounts, minutes, and other records shall be maintained by
12-22 [kept at the principal office of] the department.
12-23 SECTION 9. Section 2306.033, Government Code, is amended by
12-24 amending Subsection (a) and adding Subsection (d) to read as
12-25 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 (d) If a person has knowledge that a member of the board may
13-18 have engaged in criminal behavior or misconduct, the person shall
13-19 notify the presiding officer of the board. The presiding officer
13-20 shall refer the allegation to the Travis County district attorney
13-21 for investigation.
13-22 SECTION 10. Subchapter B, Chapter 2306, Government Code, is
13-23 amended by adding Section 2306.039 to read as follows:
13-24 Sec. 2306.039. OPEN MEETINGS AND OPEN RECORDS. (a) Except
13-25 as provided by Subsection (b), the department and the Texas State
13-26 Affordable Housing Corporation are subject to Chapters 551 and 552.
13-27 (b) This section does not apply to the personal financial
14-1 information submitted by an individual or family for a loan, grant,
14-2 or other housing assistance under a program administered by the
14-3 department or the Texas State Affordable Housing Corporation or
14-4 from bonds issued by the department, except that the department and
14-5 the corporation are permitted to disclose information about any
14-6 applicant in a form that does not reveal the identity of the
14-7 individual or family for purposes of determining eligibility for
14-8 programs and in preparing reports required under this chapter.
14-9 SECTION 11. Section 2306.053(b), Government Code, is amended
14-10 to read as follows:
14-11 (b) The department may:
14-12 (1) sue and be sued, or plead and be impleaded;
14-13 (2) act for and on behalf of this state;
14-14 (3) adopt an official seal or alter it;
14-15 (4) adopt and enforce bylaws and rules;
14-16 (5) contract with the federal government, state, any
14-17 public agency, mortgage lender, person, or other entity;
14-18 (6) designate mortgage lenders to act for the
14-19 department for the origination, processing, and servicing of the
14-20 department's mortgage loans under conditions agreed to by the
14-21 parties;
14-22 (7) provide, contract, or arrange for consolidated
14-23 processing of a housing development to avoid duplication;
14-24 (8) encourage homeless individuals and individuals of
14-25 low or very low income to attend the department's educational
14-26 programs and assist those individuals in attending the programs;
14-27 (9) appoint and determine the qualifications, duties,
15-1 and tenure of its agents, counselors, and professional advisors,
15-2 including accountants, appraisers, architects, engineers, financial
15-3 consultants, housing construction and financing experts, and real
15-4 estate consultants;
15-5 (10) administer federal housing, community affairs, or
15-6 community development programs, including the low income housing
15-7 tax credit program;
15-8 (11) establish eligibility criteria for individuals
15-9 and families of low, very low, and families of moderate income to
15-10 participate in and benefit from programs administered by the
15-11 department;
15-12 (12) execute funding agreements;
15-13 (13) obtain, retain, and disseminate records and other
15-14 documents in electronic form; and
15-15 (14) [(12)] do all things necessary, convenient, or
15-16 desirable to carry out the powers expressly granted or necessarily
15-17 implied by this chapter.
15-18 SECTION 12. Subchapter D, Chapter 2306, Government Code, is
15-19 amended by adding Section 2306.0661 to read as follows:
15-20 Sec. 2306.0661. PUBLIC HEARINGS. (a) This section applies
15-21 only to state-funded housing programs, programs funded with bond
15-22 proceeds, the low income housing tax credit program, and the state
15-23 low income housing plan. Federally funded programs shall comply
15-24 with the federal public participation requirements and Chapter
15-25 2105, if applicable.
15-26 (b) The department shall encourage informed and effective
15-27 public participation in the department's programs and plans through
16-1 holding public hearings and soliciting and accepting public
16-2 comments during those hearings. In holding a public hearing, the
16-3 department shall ensure that:
16-4 (1) the location of the hearing is:
16-5 (A) in a public building or facility accessible
16-6 to the public;
16-7 (B) accessible to persons with disabilities; and
16-8 (C) reasonably accessible by public
16-9 transportation, if available;
16-10 (2) hearings are scheduled at times when working and
16-11 nonworking people can attend; and
16-12 (3) child care is provided where practical.
16-13 (c) In scheduling a public hearing, the department shall:
16-14 (1) publish notice of the time, place, and subject of
16-15 the hearing in the Texas Register and a newspaper of general
16-16 circulation in the community in which the hearing is to be held at
16-17 least seven days before the date of the hearing. Whenever
16-18 practical, the department shall publish notice of the time, place,
16-19 and subject of the hearing in the Texas Register and a newspaper of
16-20 general circulation in the community in which the hearing is to be
16-21 held at least thirty days before the date of the hearing;
16-22 (2) provide notice of the hearing to each public
16-23 library, in the community in which the hearing is to be held, for
16-24 posting in a public area of the library;
16-25 (3) provide notice of the hearing to:
16-26 (A) each member of the board;
16-27 (B) each member of the advisory committee
17-1 consulted by the department during preparation of the state low
17-2 income housing plan; and
17-3 (C) each member of the legislature;
17-4 (4) make a reasonable effort to inform interested
17-5 persons and organizations of the hearing;
17-6 (5) make information about the hearing, including, if
17-7 appropriate, the qualified allocation plan, application forms for a
17-8 low income housing tax credit, and the state low income housing
17-9 plan, available on the Internet in accordance with Section
17-10 2306.077; and
17-11 (6) provide an opportunity for persons to transmit on
17-12 the Internet written testimony or comments on a subject of a
17-13 hearing in accordance with rules adopted by the board.
17-14 SECTION 13. Section 2306.072, Government Code, is amended to
17-15 read as follows:
17-16 Sec. 2306.072. ANNUAL LOW INCOME HOUSING REPORT. (a) Not
17-17 later than March 1 [the 100th day after the last day] of each [the
17-18 fiscal] year, the director shall prepare and submit to the board an
17-19 annual report of the department's housing activities for the
17-20 preceding [fiscal] year.
17-21 (b) Not later than the 30th day after the date the board
17-22 receives the report, the board shall submit the report to the
17-23 governor, lieutenant governor, speaker of the house of
17-24 representatives, and members of any legislative oversight committee
17-25 [legislature].
17-26 (c) The report must include:
17-27 (1) a complete operating and financial statement of
18-1 the department;
18-2 (2) a comprehensive statement of the activities of the
18-3 department during the preceding [fiscal] year to address the needs
18-4 identified in the state low income housing plan prepared as
18-5 required by Section 2306.0721, including:
18-6 (A) a statistical and narrative analysis of the
18-7 department's performance in addressing the housing needs of
18-8 individuals and families of low and very low income;
18-9 (B) the ethnic and racial composition of
18-10 individuals and families applying for and receiving assistance from
18-11 each housing-related program operated by the department; and
18-12 (C) the department's progress in meeting the
18-13 goals established in the previous housing plan;
18-14 (3) an explanation of the efforts made by the
18-15 department to ensure the participation of individuals of low income
18-16 and their community-based institutions in [every aspect of]
18-17 department programs that affect them;
18-18 (4) a statement of the evidence that the department
18-19 has made an affirmative effort to ensure the involvement of
18-20 individuals of low income and their community-based institutions in
18-21 the allocation of funds and the planning process;
18-22 (5) a statistical analysis, delineated according to
18-23 each ethnic and racial group served by the department, that
18-24 indicates the progress made by the department in implementing the
18-25 state low income housing plan in each of the uniform state service
18-26 regions; [and]
18-27 (6) an analysis of fair housing opportunities in each
19-1 housing development that receives financial assistance from the
19-2 department that includes the following information for each housing
19-3 development that contains 20 or more living units:
19-4 (A) the street address and municipality or
19-5 county in which the property is located;
19-6 (B) the total number of units reported by
19-7 bedroom size;
19-8 (C) the total number of units designed for
19-9 individuals who are physically challenged or who have special needs
19-10 and the number of these individuals served annually as reported by
19-11 each housing sponsor;
19-12 (D) a statistical analysis of average rents
19-13 reported by county [region, as defined in the comprehensive housing
19-14 affordability strategy];
19-15 (E) the race or ethnic makeup of each project as
19-16 reported annually by each housing sponsor;
19-17 (F) the number of units occupied by individuals
19-18 receiving government-supported housing assistance as reported by
19-19 each housing sponsor;
19-20 (G) a statement as to whether the department has
19-21 been notified of a violation of the fair housing law that has been
19-22 filed with the United States Department of Housing and Urban
19-23 Development, the Commission on Human Rights, or the United States
19-24 Department of Justice; and
19-25 (H) a statement as to whether the development
19-26 has any instances of material noncompliance with bond indentures or
19-27 deed restrictions discovered through the normal monitoring
20-1 activities and procedures that include meeting occupancy
20-2 requirements or rent restrictions imposed by deed restriction or
20-3 financing agreements; and
20-4 (7) a report on the geographic distribution of low
20-5 income housing tax credits, the amount of unused low income housing
20-6 tax credits, and the amount of low income housing tax credits
20-7 received from the federal pool of unused funds from other states.
20-8 (d) The annual report submitted in each even-numbered year
20-9 must:
20-10 (1) include recommendations designed to strengthen and
20-11 support the Neighborhood Partnership Program in providing home
20-12 ownership opportunities to individuals and families of low and very
20-13 low income; and
20-14 (2) describe in detail actions the department has
20-15 taken to assist small municipalities and rural areas in obtaining
20-16 matching funds from public and private sources for participation in
20-17 the Neighborhood Partnership Program.
20-18 SECTION 14. Section 2306.0721, Government Code, is amended
20-19 to read as follows:
20-20 Sec. 2306.0721. LOW INCOME HOUSING PLAN. (a) Not later
20-21 than March 1 [the 100th day after the last day] of each [the
20-22 fiscal] year, the director shall prepare and submit to the board an
20-23 integrated state low income housing plan for the next year.
20-24 (b) Not later than the 30th day after the date the board
20-25 receives the plan, the board shall submit the plan to the governor,
20-26 lieutenant governor, and the speaker of the house of
20-27 representatives [legislature].
21-1 (c) The plan must include:
21-2 (1) an estimate and analysis of the housing needs of
21-3 the following populations in the state:
21-4 (A) individuals and families of moderate, low,
21-5 and very low income;
21-6 (B) individuals with special needs; and
21-7 (C) homeless individuals;
21-8 (2) a proposal to use all available housing resources
21-9 to address the housing needs of the populations described by
21-10 Subdivision (1) by establishing funding levels for all
21-11 housing-related programs;
21-12 (3) an estimate of the number of federally assisted
21-13 housing units available for individuals and families of low and
21-14 very low income and individuals with special needs in each county
21-15 [uniform state service region in the state];
21-16 (4) a description of state programs [rules and
21-17 policies] that govern the use of all available housing resources;
21-18 (5) a resource allocation plan that targets all
21-19 available housing resources to individuals and families of low and
21-20 very low income and individuals with special needs;
21-21 (6) a description of the department's efforts to
21-22 monitor and analyze the unused or underused federal resources of
21-23 other state agencies for housing-related services and services for
21-24 homeless individuals and the department's recommendations to ensure
21-25 the full use by the state of all available federal resources for
21-26 those services; [and]
21-27 (7) strategies to provide housing for individuals and
22-1 families with special needs;
22-2 (8) a description of the department's efforts to
22-3 encourage the construction of housing units that incorporate energy
22-4 efficient construction and appliances; and
22-5 (9) any other housing-related information that the
22-6 state is required to include in the one-year action plan of the
22-7 consolidated plan submitted annually to the United States
22-8 Department of Housing and Urban Development.
22-9 (d) The priorities and policies in another plan adopted by
22-10 the department must be consistent to the extent practical with the
22-11 priorities and policies established in the state low income housing
22-12 plan.
22-13 (e) To the extent consistent with federal law, the
22-14 preparation and publication of the state low income housing plan
22-15 shall be consistent with the filing and publication deadlines
22-16 required of the department for the consolidated plan.
22-17 SECTION 15. Section 2306.0722, Government Code, is amended
22-18 to read as follows:
22-19 Sec. 2306.0722. PREPARATION OF PLAN AND REPORT. (a) Before
22-20 preparing the annual low income housing report under Section
22-21 2306.072 and the state low income housing plan under Section
22-22 2306.0721, the department shall meet with representatives of groups
22-23 with an interest in low income housing, nonprofit housing
22-24 organizations, managers, owners, and developers of affordable
22-25 housing, local government officials, and residents of low income
22-26 housing. The department shall obtain the comments and suggestions
22-27 of the representatives, officials, and residents about the
23-1 prioritization and allocation of the department's resources in
23-2 regard to housing.
23-3 (b) In preparing the annual report under Section 2306.072
23-4 and the state low income housing plan under Section 2306.0721, the
23-5 director shall:
23-6 (1) coordinate local, state, and federal housing
23-7 resources, including tax exempt housing bond financing and low
23-8 income housing tax credits;
23-9 (2) set priorities for the available housing resources
23-10 to help the neediest individuals;
23-11 (3) evaluate the success of publicly supported housing
23-12 programs;
23-13 (4) survey and identify the unmet housing needs of
23-14 individuals the department is required to assist;
23-15 (5) ensure that housing programs benefit an individual
23-16 without regard to the individual's race, ethnicity, sex, or
23-17 national origin;
23-18 (6) develop housing opportunities for individuals and
23-19 families of low and very low income and individuals with special
23-20 housing needs;
23-21 (7) develop housing programs through an open, fair,
23-22 and public process;
23-23 (8) set priorities for assistance in a manner that is
23-24 appropriate and consistent with the housing needs of the
23-25 populations described by Section 2306.0721(c)(1); [and]
23-26 (9) incorporate recommendations that are consistent
23-27 with the consolidated plan [comprehensive housing affordability
24-1 strategy and performance report] submitted annually by the state to
24-2 the United States Department of Housing and Urban Development;
24-3 (10) identify the organizations and individuals
24-4 consulted by the department in preparing the annual report and
24-5 state low income housing plan and summarize and incorporate
24-6 comments and suggestions provided under Subsection (a) as the board
24-7 determines to be appropriate;
24-8 (11) develop a plan to respond to changes in federal
24-9 funding and programs for the provision of affordable housing; and
24-10 (12) use the following standardized categories to
24-11 describe the income of program applicants and beneficiaries:
24-12 (A) 0 to 30 percent of area median income
24-13 adjusted for family size;
24-14 (B) more than 30 to 60 percent of area median
24-15 income adjusted for family size;
24-16 (C) more than 60 to 80 percent of area median
24-17 income adjusted for family size;
24-18 (D) more than 80 to 115 percent of area median
24-19 income adjusted for family size; or
24-20 (E) more than 115 percent of area median income
24-21 adjusted for family size.
24-22 SECTION 16. Section 2306.0723, Government Code, is amended
24-23 to read as follows:
24-24 Sec. 2306.0723. PUBLIC PARTICIPATION REQUIREMENTS
24-25 [HEARINGS]. (a) The department shall hold two [a] public hearings
24-26 [hearing] on [the annual report and] the annual state low income
24-27 housing plan and report before the director submits the report and
25-1 the plan to the board. Public hearings shall be held in Dallas or
25-2 Fort Worth, El Paso, Houston, San Antonio, and at least three
25-3 additional municipalities selected by the department to represent
25-4 geographically diverse communities. The department shall provide
25-5 notice of the public hearings as required by Section 2306.0661,
25-6 except that the department must publish notice of both hearings not
25-7 later than the 30th day before the date of the first public
25-8 hearing. The published notice must include a summary of the report
25-9 and plan. The department shall accept comments on the report and
25-10 plan at the public hearings and for at least 30 days after the date
25-11 of the publication of the notice of the hearings.
25-12 (b) In addition to any other necessary topics relating to
25-13 the report and the plan, each public hearing required by Subsection
25-14 (a) must address:
25-15 (1) infrastructure needs;
25-16 (2) home ownership programs;
25-17 (3) rental housing programs;
25-18 (4) housing repair programs; and
25-19 (5) the concerns of individuals with special needs, as
25-20 defined by Section 2306.511.
25-21 (c) The board shall hold a public hearing on the state low
25-22 income housing report and plan before the board submits the report
25-23 and the plan to the governor, lieutenant governor, speaker of the
25-24 house of representatives, and members of the legislature.
25-25 (d) [(c)] The board shall include with the report and the
25-26 plan the board submits to the governor, lieutenant governor,
25-27 speaker of the house of representatives, members of the [and]
26-1 legislature, and members of the advisory board formed by the
26-2 department to advise on the consolidated plan a written summary
26-3 [report] of public comments on the report and the plan.
26-4 SECTION 17. Section 2306.076(a), Government Code, is amended
26-5 to read as follows:
26-6 (a) The board may purchase from department funds liability
26-7 insurance for the director, [and] board members, [and] officers,
26-8 and employees of the department.
26-9 SECTION 18. Subchapter D, Chapter 2306, Government Code, is
26-10 amended by adding Section 2306.077 to read as follows:
26-11 Sec. 2306.077. INTERNET AVAILABILITY. (a) In this section,
26-12 "Internet" means the largest, nonproprietary, nonprofit,
26-13 cooperative, public computer network, popularly known as the
26-14 Internet.
26-15 (b) The department, to the extent it considers it to be
26-16 feasible and appropriate, shall make information on the
26-17 department's programs, public hearings, and scheduled public
26-18 meetings available to the public on the Internet.
26-19 (c) The access to information allowed by this section is in
26-20 addition to the public's free access to the information through
26-21 other electronic or print distribution of the information and does
26-22 not alter, diminish, or relinquish any copyright or other
26-23 proprietary interest or entitlement of this state or a private
26-24 entity under contract with this state.
26-25 SECTION 19. The heading of Subchapter E, Chapter 2306,
26-26 Government Code, is amended to read as follows:
26-27 SUBCHAPTER E. COMMUNITY AFFAIRS AND COMMUNITY
27-1 DEVELOPMENT PROGRAMS
27-2 SECTION 20. Subchapter E, Chapter 2306, Government Code, is
27-3 amended by adding Section 2306.094 to read as follows:
27-4 Sec. 2306.094. SERVICES FOR THE HOMELESS. The department
27-5 shall administer the state's allocation of federal funds provided
27-6 under the Emergency Shelter Grants Program (42 U.S.C. Section 11371
27-7 et seq.), as amended, or its successor program, and any other
27-8 federal funds provided for the benefit of homeless individuals and
27-9 families.
27-10 SECTION 21. Section 2306.097, Government Code, is amended to
27-11 read as follows:
27-12 Sec. 2306.097. ENERGY SERVICES PROGRAM FOR LOW-INCOME
27-13 INDIVIDUALS. [(a)] The Energy Services Program for Low-Income
27-14 Individuals [is in the community affairs division.]
27-15 [(b) The program] shall operate in conjunction with the
27-16 community services block grant program and has jurisdiction and
27-17 responsibility for administration of the following elements of the
27-18 State Low-Income Energy Assistance Program, from whatever sources
27-19 funded:
27-20 (1) the Energy Crisis Intervention Program;
27-21 (2) the weatherization program; and
27-22 (3) the Low-Income Home Energy Assistance Program.
27-23 SECTION 22. Section 2306.099, Government Code, is amended to
27-24 read as follows:
27-25 Sec. 2306.099. TRANSFER OF FEDERAL FUNDS. (a) The
27-26 department may enter into an interagency agreement with the Texas
27-27 Department of Commerce to reimburse the Texas Department of
28-1 Commerce for providing on behalf of the department marketing, [and]
28-2 underwriting, and any other services on the portion of the federal
28-3 community development block grant funds allocated by the
28-4 department for economic development activities.
28-5 (b) The department shall allocate not more than 20 percent
28-6 of the federal funds received by the department to the Texas
28-7 Department of Commerce to be used for economic development
28-8 activities.
28-9 (c) The activities undertaken by the Texas Department of
28-10 Commerce under this section must be monitored [approved] by the
28-11 department.
28-12 SECTION 23. Section 2306.111, Government Code, is amended to
28-13 read as follows:
28-14 Sec. 2306.111. HOUSING FUNDS. (a) The department, through
28-15 the housing finance [any] division, shall administer all [the]
28-16 federal housing funds provided to the state under the
28-17 Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
28-18 Section 12704 et seq.) or any other affordable housing program.
28-19 (b) The housing finance division shall adopt a goal to apply
28-20 an aggregate [a] minimum of 25 percent of the division's total
28-21 housing funds toward housing assistance for individuals and
28-22 families of extremely low and very low income.
28-23 SECTION 24. Section 2306.142, Government Code, is amended to
28-24 read as follows:
28-25 Sec. 2306.142. AUTHORIZATION OF BONDS. In its discretion,
28-26 the board shall authorize all bonds issued by the department
28-27 [housing finance division].
29-1 SECTION 25. Section 2306.171, Government Code, is amended to
29-2 read as follows:
29-3 Sec. 2306.171. GENERAL DUTIES OF DEPARTMENT RELATING TO
29-4 PURPOSES OF HOUSING FINANCE DIVISION. The department shall:
29-5 (1) develop policies and programs designed to increase
29-6 the number of individuals and families of extremely low, [and] very
29-7 low, and low income and families of moderate income that
29-8 participate in the housing finance division's programs;
29-9 (2) work with municipalities, counties, public
29-10 agencies, housing sponsors, and nonprofit and for profit
29-11 corporations to provide:
29-12 (A) information on division programs; and
29-13 (B) technical assistance to municipalities,
29-14 counties, and nonprofit corporations;
29-15 (3) encourage private for profit and nonprofit
29-16 corporations and state organizations to match the division's funds
29-17 to assist in providing affordable housing to individuals and
29-18 families of low and very low income and families of moderate
29-19 income;
29-20 (4) provide matching funds to municipalities,
29-21 counties, public agencies, housing sponsors, and nonprofit
29-22 developers who qualify under the division's programs; and
29-23 (5) administer the state's allocation of federal funds
29-24 provided under the rental rehabilitation grant program authorized
29-25 by Section 17, Title I, of the United States Housing Act of 1937
29-26 (42 U.S.C. Section 1437o).
29-27 SECTION 26. Section 2306.177, Government Code, is amended to
30-1 read as follows:
30-2 Sec. 2306.177. HEARINGS. The department may:
30-3 (1) conduct hearings; and
30-4 (2) take testimony and proof, under oath, at public
30-5 hearings, on matters necessary to carry out the department's
30-6 [housing finance division's] purposes.
30-7 SECTION 27. Subchapter H, Chapter 2306, Government Code, is
30-8 amended by adding Section 2306.184 to read as follows:
30-9 Sec. 2306.184. DISCLOSURE OF FEES. (a) This section does
30-10 not apply to an application submitted by an individual or family
30-11 for a loan, grant, or other assistance under a program administered
30-12 by the department or the Texas State Affordable Housing Corporation
30-13 or from bonds issued by the department.
30-14 (b) An application for a loan, grant, or other assistance
30-15 for an eligible affordable housing project or activity under a
30-16 program administered by the department or the Texas State
30-17 Affordable Housing Corporation or from bonds issued by the
30-18 department must include:
30-19 (1) the name of each person expected to charge the
30-20 applicant a project development fee or project operation fee;
30-21 (2) the nature and amount of each project development
30-22 fee and project operation fee the applicant is expected to pay; and
30-23 (3) any interlocking interests of persons listed under
30-24 Subdivision (1).
30-25 (c) Not later than the 30th day after the date the term of a
30-26 project for which an application was granted for a grant, loan, or
30-27 other assistance described by Subsection (b) expires, the recipient
31-1 must provide to the department a statement that includes:
31-2 (1) the name of each person to whom the recipient paid
31-3 a project development fee or project operation fee during the term
31-4 of the project;
31-5 (2) the nature and amount of each project development
31-6 fee and project operation fee paid by the recipient during the term
31-7 of the project; and
31-8 (3) any interlocking interests of persons listed under
31-9 Subdivision (1).
31-10 (d) The department shall adopt rules governing penalties and
31-11 sanctions under this section for a person who:
31-12 (1) does not provide the information required by this
31-13 section; or
31-14 (2) knowingly discloses false information.
31-15 (e) In this section:
31-16 (1) "Project development fee" means a fee charged in
31-17 connection with the planning, design, or development of an
31-18 affordable housing project, including an application fee, tax
31-19 credit consulting fee, development consulting fee, mortgage
31-20 brokerage fee, and financial advising fee.
31-21 (2) "Project operation fee" means a fee charged in
31-22 connection with the operation, construction, management, or
31-23 administration of an affordable housing project, including a
31-24 management fee, asset management fee, incentive management fee,
31-25 general partner fee, construction supervision fee, and construction
31-26 management fee.
31-27 SECTION 28. Section 2306.201(b), Government Code, is amended
32-1 to read as follows:
32-2 (b) The fund consists of:
32-3 (1) appropriations or transfers made to the fund;
32-4 (2) unencumbered fund balances; [and]
32-5 (3) public or private gifts or grants;
32-6 (4) investment income; and
32-7 (5) funds from any other source.
32-8 SECTION 29. Section 2306.202, Government Code, is amended to
32-9 read as follows:
32-10 Sec. 2306.202. USE OF HOUSING TRUST FUND. (a) The
32-11 department, through the housing finance division, shall use the
32-12 housing trust fund to provide loans, grants, or other comparable
32-13 forms of assistance to local units of government, public housing
32-14 authorities, nonprofit organizations, and income-eligible
32-15 individuals, families, and households to finance, acquire,
32-16 rehabilitate, and develop decent, safe, and sanitary housing. In
32-17 each biennium the first $2.6 million available through the housing
32-18 trust fund for loans, grants, or other comparable forms of
32-19 assistance shall be set aside and made available exclusively for
32-20 local units of government, public housing authorities, and
32-21 nonprofit organizations. Any additional funds may also be made
32-22 available to for-profit organizations so long as at least 45
32-23 percent of available funds in excess of the first $2.6 million
32-24 shall be made available to nonprofit organizations for the purpose
32-25 of acquiring, rehabilitating, and developing decent, safe, and
32-26 sanitary housing. The remaining portion shall be competed for by
32-27 nonprofit organizations, for-profit organizations, and other
33-1 eligible entities. Notwithstanding any other section of this
33-2 chapter, the department may also use the fund to acquire property
33-3 to endow the fund.
33-4 (b) Use of the fund is limited to providing:
33-5 (1) assistance for individuals and families of low and
33-6 very low income; [and]
33-7 (2) technical assistance and capacity building to
33-8 nonprofit organizations engaged in developing housing for
33-9 individuals and families of low and very low income; and
33-10 (3) security for repayment of revenue bonds issued to
33-11 finance housing for individuals and families of low and very low
33-12 income.
33-13 SECTION 30. Section 2306.205, Government Code, is amended by
33-14 adding Subsection (f) to read as follows:
33-15 (f) In addition to the money transferred into the housing
33-16 trust fund under this section, and subject to Subsection (e), the
33-17 department shall transfer into the fund the amount of any
33-18 origination fee, asset oversight fee, and servicing fee the
33-19 department or the Texas State Affordable Housing Corporation
33-20 receives in relation to the administration of its 501(c)(3) bond
33-21 program established pursuant to Section 2306.358 that exceeds the
33-22 amount needed by the department or the Texas State Affordable
33-23 Housing Corporation to pay its operating and overhead costs and
33-24 fund reserves, including an insurance reserve or credit enhancement
33-25 reserve established by the board in administering the program.
33-26 SECTION 31. Section 2306.207(a), Government Code, is amended
33-27 to read as follows:
34-1 (a) The department [housing finance division] may create a
34-2 reserve fund with the comptroller [state treasurer] out of:
34-3 (1) proceeds from the sale of the department's
34-4 [division's] bonds; or
34-5 (2) other resources.
34-6 SECTION 32. Section 2306.232, Government Code, is amended to
34-7 read as follows:
34-8 Sec. 2306.232. TEXAS HOUSING AGENCY LOAN OR GUARANTEE. A
34-9 loan or guarantee made by the Texas Housing Agency becomes a loan
34-10 or guarantee of the department [housing finance division].
34-11 SECTION 33. Section 2306.251, Government Code, is amended as
34-12 follows:
34-13 Sec. 2306.251. PROPERTY OWNERSHIP PROGRAM. (a) While it is
34-14 not the intent of the legislature that the department compete with
34-15 the private sector by becoming a long-term owner of real property
34-16 merely for the purpose of owning, managing, and operating tenant
34-17 properties, the [The] department may acquire, [and] own,
34-18 reconstruct, rehabilitate, manage, or operate real property:
34-19 (1) on an interim basis for sale or rental to:
34-20 (A) [(1)] individuals and families of low and
34-21 very low income and families of moderate income; and
34-22 (B) [(2)] nonprofit housing organizations and
34-23 other housing organizations to serve the needs of individuals and
34-24 families of low and very low income and families of moderate
34-25 income;
34-26 (2) for a period of time not to exceed 10 years for
34-27 the purposes of:
35-1 (A) preserving publicly financed or subsidized
35-2 housing; or
35-3 (B) participating in a risk-sharing program
35-4 entered into with the United States Department of Housing and Urban
35-5 Development, any other insurer or guarantor of any United States
35-6 Department of Housing and Urban Development-related indebtedness, a
35-7 government sponsored enterprise, a housing finance agency or
35-8 corporation, or a public housing authority.
35-9 (b) [Property acquired by the department must qualify for
35-10 home mortgage insurance after rehabilitation.]
35-11 [(c)] The department may use money from the housing trust
35-12 fund, unencumbered fund balances, fees received by the housing
35-13 finance division, proceeds from the sale or rental of real
35-14 property, distribution of earnings under Section 2306.557, or
35-15 appropriations, allocations, grants, or gifts from any public or
35-16 private source to purchase property under this section.
35-17 (c) If the department uses the housing trust fund to finance
35-18 real property acquisitions, it [(d) The housing finance division]
35-19 may not use more than 10 percent of the yearly balance of the
35-20 [housing trust] fund to acquire the real property.
35-21 (d) [(e)] If the department acquires property under this
35-22 section, the department shall submit an annual report to the board
35-23 that includes an analysis of [have an independent audit conducted
35-24 annually to analyze] the property ownership program's:
35-25 (1) financial stability;
35-26 (2) cost-effectiveness; and
35-27 (3) effectiveness in serving individuals and families
36-1 of low and very low income and families of moderate income.
36-2 SECTION 34. Section 2306.252, Government Code, is amended to
36-3 read as follows:
36-4 Sec. 2306.252. [LOW AND VERY LOW INCOME] HOUSING RESOURCE
36-5 CENTER. (a) The board shall establish a [low and very low income]
36-6 housing resource center in the housing finance division.
36-7 (b) The center shall:
36-8 (1) provide educational material to housing advocates,
36-9 housing sponsors, borrowers, and tenants;
36-10 (2) provide technical assistance to nonprofit housing
36-11 sponsors; and
36-12 (3) [focus on marketing loans and other programs of
36-13 the housing finance division to individuals and families of low and
36-14 very low income; and]
36-15 [(4)] assist [lenders] in the development of housing
36-16 policy, including the annual state low income housing plan and
36-17 report and the consolidated plan [marketing loans to individuals
36-18 and families of low and very low income].
36-19 (c) The housing resource center is intended to assist
36-20 individuals, local organizations, and local governments in
36-21 providing for the housing needs of individuals and families in
36-22 their communities by providing information available to the center
36-23 to housing contractors, nonprofit housing sponsors, community-based
36-24 organizations, and local governments on:
36-25 (1) local housing needs;
36-26 (2) housing programs;
36-27 (3) available funding sources; and
37-1 (4) programs that affect the creation, improvement, or
37-2 preservation of housing affordable to individuals and families of
37-3 low and very low income.
37-4 SECTION 35. Section 2306.267, Government Code, is amended to
37-5 read as follows:
37-6 Sec. 2306.267. COMPLIANCE WITH APPLICABLE LAWS, RULES, AND
37-7 CONTRACT TERMS. The department may order a housing sponsor to
37-8 perform or refrain from performing certain acts in order to comply
37-9 with the law, department [housing finance division] rules, or terms
37-10 of a contract or agreement to which the housing sponsor is a party.
37-11 SECTION 36. Section 2306.270, Government Code, is amended to
37-12 read as follows:
37-13 Sec. 2306.270. REGULATION OF RETIREMENT OF CAPITAL
37-14 INVESTMENT OR REDEMPTION OF STOCK. The department shall regulate
37-15 the retirement of a capital investment or the redemption of stock
37-16 of a limited profit housing sponsor if the retirement or
37-17 redemption, when added to a dividend or other distribution, exceeds
37-18 in any one fiscal year the permitted percentage, as allowed by the
37-19 department [housing finance division's rules], of the original face
37-20 amount of the limited profit housing sponsor's investment or equity
37-21 in a housing development.
37-22 SECTION 37. Section 2306.291(a), Government Code, is amended
37-23 to read as follows:
37-24 (a) The department may purchase and take assignments from
37-25 mortgage lenders or the federal government of notes and other
37-26 obligations, including contracts for deed and mortgages, evidencing
37-27 loans or interest in loans for the construction, remodeling,
38-1 improvement, [or] rehabilitation, purchase, leasing, or refinancing
38-2 of housing developments for individuals and families of low and
38-3 very low income and families of moderate income.
38-4 SECTION 38. Section 2306.351(a), Government Code, is amended
38-5 to read as follows:
38-6 (a) The department may issue bonds under this chapter,
38-7 including qualified 501(c)(3) bonds under Section 145, Internal
38-8 Revenue Code of 1986 (26 U.S.C. Section 145), and may:
38-9 (1) provide for and secure payment of the bonds;
38-10 (2) provide for the rights of the holders of the
38-11 bonds, as permitted by this chapter and the Texas Constitution; and
38-12 (3) purchase, hold, cancel, resell, or otherwise
38-13 dispose of its bonds, subject to restrictions in a resolution
38-14 authorizing issuance of its bonds.
38-15 SECTION 39. Section 2306.357, Government Code, is amended to
38-16 read as follows:
38-17 Sec. 2306.357. BONDS ISSUED BY TEXAS HOUSING AGENCY. A
38-18 general obligation or revenue bond issued by the Texas Housing
38-19 Agency becomes a general obligation or revenue bond of the
38-20 department [housing finance division].
38-21 SECTION 40. Subchapter P, Chapter 2306, Government Code, is
38-22 amended by adding Section 2306.358 to read as follows:
38-23 Sec. 2306.358. ISSUANCE OF QUALIFIED 501(c)(3) BONDS. (a)
38-24 Of the total qualified 501(c)(3) bonds issued under Section 145 of
38-25 the Internal Revenue Code of 1986 (26 U.S.C. Section 145) in each
38-26 fiscal year, it is the express intent of the legislature that the
38-27 department shall allocate qualified 501(c)(3) bonding authority as
39-1 follows:
39-2 (1) at least 50 percent of the total annual issuance
39-3 amount authorized through the memorandum of understanding provided
39-4 for in Subsection (b) of this section is reserved for the purposes
39-5 of new construction or acquisition with substantial rehabilitation;
39-6 (2) not more than 25 percent of the total annual
39-7 issuance amount authorized through the memorandum of understanding
39-8 provided for in Subsection (b) of this section may be used for
39-9 projects in any one metropolitan area; and
39-10 (3) at least 15 percent of the annual issuance amount
39-11 authorized through the memorandum of understanding provided for in
39-12 Subsection (b) of this section is reserved for projects in rural
39-13 areas.
39-14 (a-1) For the purposes of Subsection (a):
39-15 (1) "Rural area" and "metropolitan area" shall be
39-16 defined through the memorandum of understanding provided for in
39-17 Subsection (b) of this section.
39-18 (2) "Substantial rehabilitation" means rehabilitation
39-19 of a project with a minimum of $5,000 of rehabilitation cost per
39-20 unit.
39-21 (b) A qualified 501(c)(3) bond may not be issued unless
39-22 approved by the Bond Review Board. In addition, the Bond Review
39-23 Board shall enter into a memorandum of understanding with the
39-24 department specifying the amount of bonds to be issued in each
39-25 fiscal year. The Bond Review Board may not approve a proposal to
39-26 issue qualified 501(c)(3) bonds unless they meet the requirements
39-27 of this section, including the memorandum of understanding, and all
40-1 other laws that may apply.
40-2 (c) In addition to the requirements of Section 145 of the
40-3 Internal Revenue Code of 1986 (26 U.S.C. Section 145), a qualified
40-4 501(c)(3) organization must:
40-5 (1) demonstrate to the department that the project is
40-6 carefully and conservatively underwritten to:
40-7 (A) ensure that the project is well run, well
40-8 maintained, and financially viable; and
40-9 (B) minimize the risk of the organization's
40-10 default;
40-11 (2) ensure that at least 60 percent of the housing to
40-12 be provided under the project is affordable housing provided to
40-13 individuals and families of low and very low income and:
40-14 (A) at least 40 percent of the units in a
40-15 multifamily development are affordable to individuals and families
40-16 with incomes at or below 60 percent of the median family income,
40-17 adjusted for family size; or
40-18 (B) at least 20 percent of the units in a
40-19 multifamily development are affordable to individuals and families
40-20 with incomes at or below 50 percent of the median family income,
40-21 adjusted for family size; and
40-22 (3) enter into an agreement with the department in
40-23 which the 501(c)(3) organization:
40-24 (A) agrees during the term of the agreement to
40-25 reserve at least 60 percent of the housing to be provided under the
40-26 project for individuals and families of low and very low income;
40-27 (B) ensures that the reserved housing will
41-1 remain affordable to individuals and families of low and very low
41-2 income during the term of the agreement;
41-3 (C) agrees to not discriminate against a tenant
41-4 applicant solely because the applicant receives public rental
41-5 assistance payments, except if at least 15 percent of the housing
41-6 units provided under the project are occupied by tenants who
41-7 receive public rental assistance payments; and
41-8 (D) agrees to restrict the rents charged on
41-9 those units reserved for individuals and families of low and very
41-10 low income at 30 percent of the area median income adjusted for
41-11 family size and utility allowance, unless this requirement is
41-12 waived or modified on a case-by-case basis by the board, and
41-13 approved by the Bond Review Board, if both boards determine that
41-14 the waiver or modification is necessary for an area of the state
41-15 because the area's median income would prevent the construction of
41-16 new affordable projects.
41-17 (d) Subsection (c)(3)(C) does not prohibit an organization
41-18 from requiring a tenant applicant who receives public assistance to
41-19 meet the organization's standard criteria for occupancy, including
41-20 such criteria as satisfactory creditworthiness and lack of criminal
41-21 history.
41-22 (e) The agreement provided for in Subsection (c)(3) may
41-23 provide for the lease or sale of the project to a nonprofit
41-24 corporation approved by the department subject to the conditions
41-25 specified in Subsection (c).
41-26 (f) Neither the department nor the Texas State Affordable
41-27 Housing Corporation may use state or federal money to provide for
42-1 credit enhancement of a bond issued under this section unless the
42-2 credit enhancement would facilitate the issuance of bonds for the
42-3 purpose of financing the creation or preservation of affordable
42-4 housing by 501(c)(3) nonprofit entities.
42-5 (g) In lieu of complying with the set-aside requirements
42-6 specified in Subsection (c)(2), a qualified 501(c)(3) organization
42-7 may comply with such other set-asides or restrictions as are
42-8 approved by the Internal Revenue Service as a basis for the
42-9 determination letter addressed to the qualified 501(c)(3)
42-10 organization.
42-11 (h) For purposes of this section, "rural area" and
42-12 "metropolitan area" shall be defined through the memorandum of
42-13 understanding provided for in Subsection (b) of this section.
42-14 SECTION 41. Section 2306.375, Government Code, is amended to
42-15 read as follows:
42-16 Sec. 2306.375. PERSONAL LIABILITY OF BOARD MEMBER OR
42-17 DIRECTOR. A member of the board or the director is not liable
42-18 personally for bonds issued or contracts executed by the department
42-19 or for any other action taken in accordance with the powers and
42-20 duties authorized by this chapter [housing finance division].
42-21 SECTION 42. Section 2306.411(a), Government Code, is amended
42-22 to read as follows:
42-23 (a) In addition to other security for the department's bonds
42-24 authorized by this chapter, payment of the principal and interest
42-25 and redemption premium, if any, on the department's bonds may be
42-26 secured by a first or subordinate lien on and pledge of all or part
42-27 of:
43-1 (1) the department's assets and real, personal, or
43-2 mixed property, including:
43-3 (A) mortgages or other obligations securing the
43-4 assets of property;
43-5 (B) investments; and
43-6 (C) trust agreements or trust indentures
43-7 administered by one or more corporate trustees as allowed by the
43-8 board; and
43-9 (2) the reserves or funds of the department [housing
43-10 finance division].
43-11 SECTION 43. Section 2306.412(a), Government Code, is amended
43-12 to read as follows:
43-13 (a) A lien on or pledge of revenues, income, assets,
43-14 reserves, funds, or other resources of the department [housing
43-15 finance division], as authorized by this chapter, is valid and
43-16 binding from the time of payment for and delivery of the bonds
43-17 authorized by the board resolution creating or confirming the lien
43-18 or pledge.
43-19 SECTION 44. Section 2306.491, Government Code, is amended to
43-20 read as follows:
43-21 Sec. 2306.491. BONDS NEGOTIABLE INSTRUMENTS.
43-22 Notwithstanding any other statute, a bond and interest coupon
43-23 issued and delivered by the department [housing finance division]
43-24 is a negotiable instrument under the Uniform Commercial Code,
43-25 except that the bond may be registered or subject to registration
43-26 under this chapter.
43-27 SECTION 45. Subchapter Y, Chapter 2306, Government Code, as
44-1 added by Chapter 76, Acts of the 74th Legislature, Regular Session,
44-2 1995, is amended to read as follows:
44-3 SUBCHAPTER Y. TEXAS STATE AFFORDABLE HOUSING CORPORATION
44-4 Sec. 2306.551. DEFINITION. In this subchapter,
44-5 "corporation" means the Texas State Affordable Housing Corporation.
44-6 Sec. 2306.552. CREATION. (a) The existence of the Texas
44-7 State Affordable Housing Corporation, or any similarly named
44-8 corporation, begins on the date that the secretary of state issues
44-9 the certificate of incorporation.
44-10 (b) The charter of the corporation must establish the
44-11 corporation as nonprofit and specifically dedicate the
44-12 corporation's activities to the public purpose authorized by this
44-13 subchapter [benefit of the department].
44-14 (c) The creation of the corporation does not limit or impair
44-15 the rights, powers, and duties of the department under this
44-16 chapter.
44-17 Sec. 2306.553. PURPOSES. (a) The public purpose of the
44-18 corporation is to perform activities and services that the
44-19 corporation's board of directors determines will promote the public
44-20 health, safety, and welfare through the provision of adequate,
44-21 safe, and sanitary housing for individuals and families of low and
44-22 very low income and families of moderate income. The activities
44-23 and services shall include engaging in mortgage banking activities
44-24 and lending transactions, acquiring, holding, selling, or leasing
44-25 real or personal property [corporation shall carry out the public
44-26 purposes of this chapter on behalf of the state].
44-27 (b) The corporation's primary public purpose is to
45-1 facilitate the provision of housing and the making of affordable
45-2 loans to individuals and families of low and very low income and
45-3 families of moderate income. The corporation may make loans for
45-4 single family homes only to individuals and families of low and
45-5 very low income and families of moderate income. The corporation
45-6 may make loans for multifamily developments if:
45-7 (1) at least 40 percent of the units in a multifamily
45-8 development are affordable to individuals and families with incomes
45-9 at or below 60 percent of the median family income, adjusted for
45-10 family size; or
45-11 (2) at least 20 percent of the units in a multifamily
45-12 development are affordable to individuals and families with incomes
45-13 at or below 50 percent of the median family income, adjusted for
45-14 family size [corporation may engage only in the performance of
45-15 charitable functions].
45-16 (c) To the extent reasonably practicable, the corporation
45-17 shall use the services of banks, community banks, savings banks,
45-18 thrifts, savings and loan associations, private mortgage companies,
45-19 nonprofit organizations, and other lenders for the origination of
45-20 all loans contemplated by this subchapter and assist the lenders in
45-21 providing credit to individuals and families of low and very low
45-22 income and families of moderate income.
45-23 Sec. 2306.554. BOARD OF DIRECTORS AND OFFICERS.
45-24 (a) The [members of the board serve as the]
45-25 board of directors of the corporation consists of six members as
45-26 follows:
45-27 (1) the presiding officer of the board of directors of
46-1 the department;
46-2 (2) the presiding officer of the programs committee of
46-3 the board of directors of the department; and
46-4 (3) four members of the board of directors of the
46-5 corporation shall be appointed by the governor and shall represent
46-6 any of the following areas:
46-7 (A) state or federal savings banks or savings
46-8 and loan associations;
46-9 (B) community banks with assets of $200 million
46-10 or less;
46-11 (C) large metropolitan banks with assets of more
46-12 than $1 billion;
46-13 (D) asset management companies;
46-14 (E) mortgage servicing companies;
46-15 (F) builders;
46-16 (G) real estate developers;
46-17 (H) real estate brokers;
46-18 (I) community or economic development
46-19 organizations;
46-20 (J) private mortgage companies;
46-21 (K) nonprofit housing development companies;
46-22 (L) attorneys;
46-23 (M) investment bankers;
46-24 (N) underwriters;
46-25 (O) private mortgage insurance companies;
46-26 (P) appraisers;
46-27 (Q) property management companies;
47-1 (R) financial advisors;
47-2 (S) nonprofit foundations;
47-3 (T) financial advisors; or
47-4 (U) any other area of expertise that the
47-5 governor finds necessary for the successful operation of the
47-6 corporation.
47-7 (b) The governor shall appoint a presiding officer from the
47-8 members who are not also serving as members of the board of
47-9 directors of the department.
47-10 (c) A member of the corporation's board of directors is not
47-11 entitled to compensation, except for the members who are also
47-12 members of the department's board of directors, but is entitled to
47-13 reimbursement of travel expenses incurred by the member while
47-14 conducting the business of the board, as provided by the General
47-15 Appropriations Act.
47-16 (d) The director of the department shall serve ex officio as
47-17 president of the corporation. The president is not entitled to
47-18 compensation, unless the president is not also the executive
47-19 director of the department, but is entitled to reimbursement from
47-20 the corporation of travel expenses incurred by the member while
47-21 conducting the business of the board, as provided by the General
47-22 Appropriations Act. The director of the department shall serve as
47-23 president of the corporation only if the director has experience in
47-24 the field of mortgage banking or residential lending as
47-25 demonstrated by:
47-26 (1) employment in one or more middle or upper level
47-27 management positions for at least two years with a mortgage bank,
48-1 commercial bank, thrift, savings and loan association, private
48-2 mortgage company, mortgage servicing entity, or other financial
48-3 institution; or
48-4 (2) employment in a position of providing legal or
48-5 consulting services related to mortgage banking or residential
48-6 lending to any one of the type of entities listed in Subsection
48-7 (d)(1) for at least five years.
48-8 (e) If the director does not satisfy the requirements of
48-9 Subsection (d)(1) or (2), the corporation shall employ, for
48-10 compensation to be determined by the corporation's board of
48-11 directors, an individual that satisfies the requirements of
48-12 Subsection (d)(1) or (2) to serve as president of the corporation.
48-13 (f) The corporation may purchase, with corporation funds,
48-14 liability insurance for each of the members of the corporation's
48-15 board of directors, officers, and other employees of the
48-16 corporation in an amount that the corporation's board of directors
48-17 considers reasonably necessary to:
48-18 (1) insure against foreseeable liabilities; and
48-19 (2) provide for all costs of defending against those
48-20 liabilities, including, without limitation, court costs and
48-21 attorney's fees.
48-22 Sec. 2306.555. POWERS. (a) The corporation has the powers
48-23 [and is subject to the limitations] provided for the department
48-24 under this chapter.
48-25 (b) In addition to the powers granted by Subsection (a), the
48-26 corporation has all rights and powers necessary to accomplish its
48-27 public purpose, including the powers to:
49-1 (1) purchase, service, sell, lend on the security of,
49-2 or otherwise transact in:
49-3 (A) mortgages, including federal mortgages and
49-4 federally insured mortgages;
49-5 (B) mortgage loans;
49-6 (C) deeds of trust; and
49-7 (D) loans or other advances of credit secured by
49-8 liens against manufactured housing;
49-9 (2) guarantee or insure timely payment of mortgage
49-10 loans and loans or other advances of credit secured by liens
49-11 against manufactured housing, provided that the corporation's
49-12 liability on that guaranty or insurance is limited to the assets of
49-13 a guaranty fund or self-insurance fund established and maintained
49-14 by the corporation;
49-15 (3) make mortgage loans and loans or other advances of
49-16 credit secured by liens against manufactured housing to individuals
49-17 and families of low to moderate income;
49-18 (4) make mortgage loans to provide temporary or
49-19 permanent financing or refinancing for housing or land
49-20 developments, including refunding outstanding obligations,
49-21 mortgages, or advances issued for those purposes;
49-22 (5) borrow, give security, pay interest or other
49-23 return, or issue bonds or other obligations, including notes,
49-24 debentures, or mortgage-backed securities, provided that each bond
49-25 or other obligation issued by the corporation must contain a
49-26 statement that the state is not obligated to pay the principal of
49-27 or any premium or interest on the bond or other obligation and that
50-1 the full faith and credit and the taxing power of the state are not
50-2 pledged, given, or loaned to the payment;
50-3 (6) acquire, hold, invest, use, pledge, reserve, and
50-4 dispose of its assets, revenues, income, receipts, funds, and money
50-5 from every source and to select one or more depositories, inside or
50-6 outside the state, subject to the terms of any resolution,
50-7 indenture, or other contract under which any bonds or other
50-8 obligations are issued or any guaranty or insurance is provided;
50-9 (7) establish, charge, and collect fees, charges, and
50-10 penalties in connection with the programs, services, and activities
50-11 of the corporation;
50-12 (8) procure insurance and pay premiums on insurance of
50-13 any type, in amounts, and from insurers as the corporation's board
50-14 of directors considers necessary and advisable to further the
50-15 corporation's public purpose, including, subject to Section
50-16 2306.554(e), liability insurance for the members of the
50-17 corporation's board of directors and the officers and other
50-18 employees of the corporation;
50-19 (9) make, enter into, and enforce contracts,
50-20 agreements, leases, indentures, mortgages, deeds, deeds of trust,
50-21 security agreements, pledge agreements, credit agreements, and
50-22 other instruments with any person, including a mortgage lender,
50-23 servicer, housing sponsor, the federal government, or any public
50-24 agency, on terms the corporation determines may be acceptable;
50-25 (10) own, rent, lease, or otherwise acquire, accept,
50-26 or hold real, personal, or mixed property, or any interest in
50-27 property, by purchase, exchange, gift, assignment, transfer,
51-1 foreclosure, mortgage, sale, lease, or otherwise and to hold,
51-2 manage, operate, or improve real, personal, or mixed property,
51-3 regardless of location;
51-4 (11) sell, lease, encumber, mortgage, exchange,
51-5 donate, convey, or otherwise dispose of any or all of its
51-6 properties or any interest in its properties, deeds of trust, or
51-7 mortgage lien interest owned by it or under its control, custody,
51-8 or in its possession, and release or relinquish any right, title,
51-9 claim, lien, interest, easement, or demand, however acquired,
51-10 including any equity or right of redemption in property foreclosed
51-11 by it, by public or private sale, with or without public bidding;
51-12 (12) lease or rent any improvements, lands, or
51-13 facilities from any person;
51-14 (13) request, accept, and use gifts, loans, donations,
51-15 aid, guaranties, allocations, subsidies, grants, or contributions
51-16 of any item of value to further its public purpose; and
51-17 (14) exercise [Except as specifically provided by this
51-18 subchapter, the corporation has] the rights and powers of a
51-19 nonprofit corporation incorporated under the Texas Non-Profit
51-20 Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
51-21 Statutes).
51-22 (c) In exercising the foregoing powers granted to it under
51-23 this chapter, the corporation shall not compete with private
51-24 lenders and shall not originate or make any loan that can or would
51-25 be made at the same time by a private lender on substantially the
51-26 same or better terms within the submarket in which the loan is
51-27 proposed to be made, and, to the extent practical, the corporation
52-1 shall rely on private mortgage companies, banks, savings banks,
52-2 thrifts, savings and loan associations, or other similar loan
52-3 originating entities to originate loans. The corporation may act
52-4 as co-originator in a loan where the funding resources emanate from
52-5 the corporation.
52-6 (d) All of the mortgage banking operations shall be
52-7 dedicated to the furtherance of facilitating affordable housing
52-8 finance for the ultimate benefit of individuals and families of low
52-9 and very low income and families of moderate income who, generally,
52-10 are not afforded housing finance options through conventional
52-11 lending channels.
52-12 (e) The corporation may contract with the department and
52-13 with bond counsel, financial advisors, [or] underwriters, or other
52-14 providers of professional or consulting services.
52-15 (f) The corporation shall pay its expenses from any
52-16 available fund without resort to the general revenues of the state,
52-17 except as specifically appropriated by the legislature.
52-18 (g) The department may not transfer any funds to the
52-19 corporation to support the administration of the corporation or to
52-20 subsidize its operations in any way. The department shall be fully
52-21 compensated by the corporation for any property or employees that
52-22 are shared by the corporation and the department, and it is the
52-23 intent of the legislature that no employees be shared beyond the
52-24 time at which such sharing is absolutely necessary. This
52-25 subsection does not prohibit the corporation from receiving grants,
52-26 loans, or other program funds of a kind that are available to other
52-27 nonprofit corporations, or from using that portion of the program
53-1 funds that are allowed for administration of the program for
53-2 administrative purposes.
53-3 (h) Transfers of property from the department to the
53-4 corporation shall be fully compensated.
53-5 Sec. 2306.556. [TAX] EXEMPT FROM TAXATION AND REGISTRATION.
53-6 (a) The corporation is exempt from all taxation by the state or a
53-7 political subdivision of the state, including a municipality.
53-8 (b) A bond or other obligation issued by the corporation is
53-9 an exempt security under The Securities Act (Article 581-1, et
53-10 seq., Vernon's Texas Civil Statutes), and unless specifically
53-11 provided otherwise, under any subsequently enacted securities act.
53-12 Any contract, guaranty, or other document executed in connection
53-13 with the issuance of the bond or other obligation is not an exempt
53-14 security under that Act, and unless specifically provided
53-15 otherwise, under any subsequently enacted securities act.
53-16 Sec. 2306.557. DISTRIBUTION OF EARNINGS. Any part of
53-17 earnings remaining after payment of expenses and any establishment
53-18 of reserves by the corporation's board of directors may not inure
53-19 to any person except that the corporation shall deposit these
53-20 excess earnings with the department to the credit of the housing
53-21 trust [general revenue] fund established by Section 2306.201 [for
53-22 the benefit of the department] if the corporation's board of
53-23 directors determines that sufficient provision has been made for
53-24 the full payment of the expenses, bonds, and other obligations of
53-25 the corporation and for any establishment of reserves by the
53-26 corporation's board of directors.
53-27 Sec. 2306.558. ALTERATION AND TERMINATION. (a) Subject to
54-1 this subchapter and the prohibition on the impairment of contracts
54-2 in the law of this state, the corporation's board of directors by
54-3 written resolution may alter the structure, organization, programs,
54-4 or activities of the corporation or terminate and dissolve the
54-5 corporation.
54-6 (b) The corporation's board of directors shall dissolve the
54-7 corporation if the board by resolution determines that:
54-8 (1) the purposes for which the corporation was formed
54-9 have been substantially fulfilled; and
54-10 (2) all bonds and other obligations issued by the
54-11 corporation and all guaranties and insurance and other contractual
54-12 obligations have been fully paid or provision for that payment has
54-13 been made.
54-14 (c) On dissolution, the title to funds and properties
54-15 previously owned by the corporation shall be transferred to the
54-16 department.
54-17 Sec. 2306.559. REPORTING REQUIREMENTS [ANNUAL REPORT]. (a)
54-18 The corporation shall file an annual report of the financial
54-19 activity of the corporation with the department. Not later than
54-20 the 30th day after the date the corporation's board of directors
54-21 receives the report, the corporation's board of directors shall
54-22 submit the report to the governor, lieutenant governor, speaker of
54-23 the house of representatives, comptroller, and Legislative Budget
54-24 Board.
54-25 (b) The corporation shall file the report before the 90th
54-26 day after the last day of the corporation's fiscal year.
54-27 (c) The corporation shall prepare the report in accordance
55-1 with generally accepted accounting principles.
55-2 (d) The report must include:
55-3 (1) a statement of support, revenue, and expenses and
55-4 change in fund balances;
55-5 (2) a statement of functional expenses; and
55-6 (3) balance sheets for all funds.
55-7 (e) The corporation shall file quarterly performance reports
55-8 with the department.
55-9 (f) Promptly on receipt, the corporation shall file with the
55-10 Bond Review Board a report for the preceding fiscal year. The
55-11 report must contain the status of all outstanding debts and
55-12 obligations of the corporation, the status of collateral pledged as
55-13 security for those debts and obligations, and a maturity and
55-14 payment schedule for those debts and obligations.
55-15 Sec. 2306.560. AUDIT. (a) The corporation shall hire an
55-16 independent certified public accountant to audit the corporation's
55-17 books and accounts for each fiscal year. The corporation shall
55-18 file a copy of the audit with the department. Not later than the
55-19 30th day after the date the corporation's board of directors
55-20 receives the audit, the corporation's board of directors shall
55-21 submit the audit to the governor, lieutenant governor, speaker of
55-22 the house of representatives, comptroller, Bond Review Board, State
55-23 Auditor's Office, and Legislative Budget Board.
55-24 (b) The corporation is subject to audit by the state
55-25 auditor.
55-26 (c) The corporation shall submit budget and financial
55-27 information to the legislative budget office as required by the
56-1 director of the legislative budget office.
56-2 Sec. 2306.561. LIABILITY. (a) The directors, officers, and
56-3 employees of the corporation are not personally liable for bonds or
56-4 other obligations issued or contracts, guaranties, or insurance
56-5 executed by the corporation, or for any other action taken in
56-6 accordance with the powers and duties authorized by this subchapter
56-7 or in the good faith belief that that action was taken in
56-8 accordance with the powers and duties authorized by this
56-9 subchapter.
56-10 (b) The directors and officers of the corporation are immune
56-11 from civil liability to the same extent that a volunteer who serves
56-12 as an officer, director, or trustee of a charitable organization is
56-13 immune from civil liability under Chapter 84, Civil Practice and
56-14 Remedies Code.
56-15 (c) The civil liability of an employee of the corporation is
56-16 limited to the same extent that the civil liability of an employee
56-17 of a charitable organization is limited under Chapter 84, Civil
56-18 Practice and Remedies Code.
56-19 (d) The limitations on liability contained in this section
56-20 do not limit or impair the limitations on liability otherwise
56-21 available to the corporation's directors, officers, and employees.
56-22 SECTION 46. Chapter 2306, Government Code, is amended by
56-23 adding Subchapter AA to read as follows:
56-24 SUBCHAPTER AA. EMERGENCY NUTRITION AND TEMPORARY EMERGENCY
56-25 RELIEF PROGRAM
56-26 Sec. 2306.651. DEFINITIONS. In this subchapter:
56-27 (1) "Applicant" means the commissioners court of a
57-1 county, the governing body of another political subdivision, or a
57-2 nonprofit organization.
57-3 (2) "Nonprofit organization" means a private,
57-4 nonprofit, tax-exempt corporation under Section 501(c)(3), Internal
57-5 Revenue Code of 1986 (26 U.S.C. Section 501(c)(3)).
57-6 (3) "Program" means a system of providing temporary
57-7 emergency relief to needy persons.
57-8 Sec. 2306.652. TEMPORARY EMERGENCY RELIEF PROGRAM. (a) The
57-9 department shall establish a temporary emergency relief program to
57-10 assist counties, in cooperation with other public entities and
57-11 nonprofit organizations, in meeting the needs of individuals and
57-12 families for temporary emergency relief.
57-13 (b) The department shall establish the emergency nutrition
57-14 program as part of the temporary emergency relief program
57-15 established under this subchapter to meet the unmet need for
57-16 emergency food assistance. The department shall administer the
57-17 emergency nutrition program in the same fashion and under the same
57-18 procedures as govern the administration of the temporary emergency
57-19 relief program.
57-20 Sec. 2306.653. APPLICATION. (a) A county may apply to the
57-21 department for a grant-in-aid to establish and administer a program
57-22 under this subchapter.
57-23 (b) If a county declines to act, the department may accept
57-24 applications from other political subdivisions or from nonprofit
57-25 organizations. The political subdivision or nonprofit organization
57-26 must first notify the county judge of its intention to submit an
57-27 application for a grant-in-aid.
58-1 (c) An application submitted under this section must provide
58-2 evidence that a county requires assistance and that the applicant
58-3 has consulted with public entities, nonprofit organizations,
58-4 voluntary associations, representatives of low-income persons, and
58-5 other groups involved in providing assistance to needy persons.
58-6 (d) The department shall adopt rules establishing the
58-7 criteria for determining whether an applicant qualifies under this
58-8 subchapter. The department may approve only one program for each
58-9 county.
58-10 (e) A decision by a county to administer a program under
58-11 this subchapter remains in effect until the county notifies the
58-12 department that the county no longer wants to participate in the
58-13 program. If a county decides to discontinue its participation, the
58-14 department may choose an applicant as an alternative participant as
58-15 prescribed by Subsection (b) of this section and by department
58-16 rules.
58-17 (f) The department shall develop standards and procedures
58-18 for the program that permit all counties in the state to
58-19 participate.
58-20 Sec. 2306.654. LOCAL ALLOCATION. (a) State funds provided
58-21 to a local applicant under this subchapter may not be used for
58-22 local administrative costs.
58-23 (b) An allocation to a county from the program established
58-24 by Section 2306.652 shall be based on the county's demonstrated
58-25 need for the money. The formula used by the department to allocate
58-26 the money shall include:
58-27 (1) the number of unemployed persons in the county
59-1 during the most recent 12-month period for which data is available
59-2 compared to the number of unemployed people in the state during
59-3 that same 12-month period; and
59-4 (2) the number of people at or below the poverty line
59-5 in the county during the most recent 12-month period for which data
59-6 is available compared to the number of people at or below the
59-7 poverty line in the state during that same 12-month period.
59-8 Sec. 2306.655. LOCAL PLAN; DISBURSEMENT. (a) An applicant
59-9 must submit to the department a plan for providing emergency
59-10 relief.
59-11 (b) The plan must contain a description of the target
59-12 population, the eligibility criteria for receipt of services, the
59-13 nature and scope of benefits to be provided, methods of
59-14 administration, and a budget.
59-15 (c) The plan must also show evidence of consultation with
59-16 the entities listed in Section 2306.653(c).
59-17 (d) On certification by the department that the applicant
59-18 qualifies under this subchapter, the department shall disburse
59-19 money available for that purpose to the applicant to be used to
59-20 establish a program in the affected county.
59-21 Sec. 2306.656. ELIGIBILITY FOR ASSISTANCE. (a) Each
59-22 county, political subdivision, or nonprofit organization approved
59-23 by the department for establishing a program shall establish its
59-24 own criteria for persons eligible to receive benefits under the
59-25 program and shall include the criteria in the plan for providing
59-26 emergency relief submitted to the department.
59-27 (b) Before establishing eligibility and the frequency and
60-1 duration of benefits provided under the program, the county,
60-2 political subdivision, or nonprofit organization shall allow
60-3 adequate notice and opportunity for public comment, including
60-4 comments from entities listed in Section 2306.653(c).
60-5 (c) A county, political subdivision, or nonprofit
60-6 organization may not set the eligibility level at less than 75
60-7 percent of the federal poverty level based on the federal Office of
60-8 Management and Budget poverty index in effect at the time the plan
60-9 is submitted to the department.
60-10 (d) Assistance to persons eligible to participate in a
60-11 program authorized by this subchapter shall be provided through
60-12 vouchers and purchased services in accordance with the approved
60-13 plan submitted to the department. The assistance may include the
60-14 provision of utilities, food, housing, and clothing to needy
60-15 persons.
60-16 (e) Records pertaining to a program under this subchapter
60-17 are subject to audit by the department, an auditor approved by the
60-18 department, or the state auditor.
60-19 Sec. 2306.657. REPORTS AND PUBLIC NOTICES. (a) As part of
60-20 the annual report required by Section 2306.072, Government Code,
60-21 the director shall include a written report describing and
60-22 analyzing the operation of programs under this subchapter.
60-23 (b) A county, political subdivision, or nonprofit
60-24 organization funded under this subchapter shall assure the
60-25 department that information is provided to the public regarding
60-26 eligibility for and the nature of a program operated under this
60-27 subchapter.
61-1 Sec. 2306.658. RELATIONSHIP TO FEDERAL LAW. (a) If a
61-2 federal law or regulation is changed without making a provision for
61-3 temporary waivers to allow compliance with state law and, as a
61-4 result of this change, there is insufficient time to comply with
61-5 all the procedures required by this subchapter, the agency or
61-6 entity affected may act so as to comply with federal law and shall
61-7 comply with the applicable procedures required by this subchapter
61-8 as soon as possible.
61-9 (b) If a federal statute or court order conflicts with this
61-10 subchapter, the federal law or court order prevails over this
61-11 subchapter.
61-12 SECTION 47. Chapter 2306, Government Code, is amended by
61-13 adding Subchapter BB to read as follows:
61-14 SUBCHAPTER BB. LOW INCOME HOUSING TAX CREDIT PROGRAM
61-15 Sec. 2306.671. DEADLINES FOR ALLOCATION OF LOW INCOME
61-16 HOUSING TAX CREDITS. (a) Not later than November 15 of each year,
61-17 the department shall prepare and submit to the board for adoption
61-18 the qualified allocation plan required by federal law for use by
61-19 the department in setting criteria and priorities for the
61-20 allocation of tax credits under the low income housing tax credit
61-21 program.
61-22 (b) The board shall adopt and submit to the governor the
61-23 qualified allocation plan not later than January 31.
61-24 (c) The governor shall approve, reject, or modify and
61-25 approve the qualified allocation plan not later than February 28.
61-26 (d) An applicant for a low income housing tax credit to be
61-27 issued a commitment during the initial allocation cycle in a
62-1 calendar year must submit an application to the department not
62-2 later than May 15.
62-3 (e) The board shall issue a commitment for allocation for
62-4 the initial cycle of low income housing tax credits each year in
62-5 accordance with the qualified allocation plan not later than July
62-6 31.
62-7 Sec. 2306.672. SCORING OF APPLICATIONS. (a) The goal of
62-8 the low income housing tax credit program is to provide permanent
62-9 affordable housing. In allocating low income housing tax credits,
62-10 the department shall score each application using a point system
62-11 based on criteria adopted by the department that are consistent
62-12 with the department's housing goals. The department shall publish
62-13 in the qualified allocation plan any discretionary factor that the
62-14 department will consider in scoring an application.
62-15 (b) If an applicant meets the department's scoring and
62-16 underwriting criteria, the department shall add:
62-17 (1) five bonus points to the applicant's score if the
62-18 applicant agrees to provide to a qualified nonprofit organization
62-19 or tenant organization a right of first refusal to purchase the
62-20 property to which the tax credit applies at the minimum price
62-21 provided in, and in accordance with the requirements of, Section
62-22 42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
62-23 42(i)(7)); and
62-24 (2) two bonus points to the applicant's score if the
62-25 application is received within the first 10 days of the application
62-26 acceptance period.
62-27 (c) The department shall provide the score of each
63-1 application on each criterion to the board and the governor. The
63-2 results of the scoring shall be available to the public.
63-3 (d) Upon awarding tax credit allocations, the board shall
63-4 document the reasons for each project's selection, including an
63-5 explanation of all discretionary factors used in making its
63-6 determination.
63-7 Sec. 2306.673. SALE OF CERTAIN LOW INCOME HOUSING TAX CREDIT
63-8 PROPERTY. (a) Not later than two years before the expiration of
63-9 the compliance period, a recipient of a low income housing tax
63-10 credit who agreed to provide a right of first refusal under Section
63-11 2306.672(b)(1) and who intends to sell the property shall notify
63-12 the department of the recipient's intent to sell. The recipient
63-13 shall notify qualified nonprofit organizations and tenant
63-14 organizations of the opportunity to purchase the property.
63-15 (b) The recipient may:
63-16 (1) during the first six-month period after notifying
63-17 the department, negotiate or enter into a purchase agreement only
63-18 with a qualified nonprofit organization that is also a community
63-19 housing development organization as defined by the federal home
63-20 investment partnership program;
63-21 (2) during the second six-month period after notifying
63-22 the department, negotiate or enter into a purchase agreement with
63-23 any qualified nonprofit organization or tenant organization; and
63-24 (3) during the year before the expiration of the
63-25 compliance period, negotiate or enter into a purchase agreement
63-26 with the department or any qualified nonprofit organization or
63-27 tenant organization approved by the department.
64-1 (c) Notwithstanding an agreement under Section
64-2 2306.672(b)(1), a recipient of a low income housing tax credit may
64-3 sell property to which the tax credit applies to any purchaser
64-4 after the expiration of the compliance period if a qualified
64-5 nonprofit organization or tenant organization does not offer to
64-6 purchase the property at the minimum price provided by Section
64-7 42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
64-8 42(i)(7)), and the department declines to purchase the property.
64-9 (d) In this section, "compliance period" has the meaning
64-10 assigned by Section 42(i)(1), Internal Revenue Code of 1986 (26
64-11 U.S.C. Section 42(i)(1)).
64-12 Sec. 2306.674. DEPARTMENT PURCHASE OF LOW INCOME HOUSING TAX
64-13 CREDIT PROPERTY. The board by rule may develop and implement a
64-14 program to purchase low income housing tax credit property that is
64-15 not purchased by a qualified nonprofit organization or tenant
64-16 organization. The department may not purchase low income housing
64-17 tax credit property if the board finds that the purchase is not in
64-18 the best interest of the state.
64-19 Sec. 2306.675. ALLOCATION OF LOW INCOME HOUSING TAX CREDIT.
64-20 (a) Department staff shall provide recommendations to the board
64-21 concerning the financial or programmatic viability of each
64-22 application for a low income housing tax credit before the board
64-23 makes a decision relating to the allocation of tax credits.
64-24 (b) Not later than the deadline specified in Section
64-25 2306.671(e), the board shall issue a commitment for tax credits
64-26 available to the department. Concurrently with the issuance of a
64-27 commitment for initial tax credits, the board shall establish a
65-1 waiting list of additional applications, ranked in descending order
65-2 of priority, to be issued a commitment for tax credits if
65-3 additional credits become available.
65-4 Sec. 2306.676. EQUAL ACCESS TO PROGRAM. The department
65-5 shall establish procedures through the qualified allocation plan to
65-6 ensure that each applicant for a low income housing tax credit has
65-7 a fair and equal opportunity to submit or resubmit an application
65-8 and submit for consideration any authorized supplementary materials
65-9 and information.
65-10 Sec. 2306.677. BOARD INFLUENCE PROHIBITED. (a) A board
65-11 member may not contact department staff in any manner with the
65-12 intent to influence the processing of an application for a low
65-13 income housing tax credit.
65-14 (b) During the period between the department's initial
65-15 solicitation of applications for tax credits and the final issuance
65-16 of commitments of tax credits by the board, a member of the board
65-17 may not have contact with the department staff concerning an
65-18 application, other than written communications or public oral
65-19 communications during a public meeting of the department. A
65-20 written communication authorized by this subsection is subject to
65-21 disclosure as a public record.
65-22 Sec. 2306.678. FEES. (a) A fee charged by the department
65-23 to an applicant for a low income housing tax credit may not be
65-24 excessive, and must reflect the department's actual costs in
65-25 processing applications and providing copies of documents in
65-26 connection with the allocation process.
65-27 (b) The department shall refund a fee charged to an
66-1 applicant if the department does not score the applicant's
66-2 application, except the department may retain a reasonable portion
66-3 of the fee to compensate the department for costs associated with
66-4 the application.
66-5 Sec. 2306.679. PUBLIC INFORMATION AND HEARINGS ON PROGRAM.
66-6 (a) The department shall provide information regarding the low
66-7 income housing tax credit program, including notices of public
66-8 hearings, meetings, and opening and closing dates for applications
66-9 for a low income housing tax credit, to local housing departments,
66-10 newspapers, nonprofit organizations, on-site property managers of
66-11 occupied projects that are the subject of tax credit applications
66-12 for posting in prominent locations at those projects, and other
66-13 interested persons and community groups, who request the
66-14 information.
66-15 (b) The department shall hold at least three public hearings
66-16 in different regions of the state to receive public comments on low
66-17 income housing tax credit applications.
66-18 SECTION 48. Section 11.001, Human Resources Code, is amended
66-19 to read as follows:
66-20 Sec. 11.001. Definitions. Except as provided by Section
66-21 [34.002 or] 40.001, in this title:
66-22 (1) "Board" means the Texas Board of Human Services.
66-23 (2) "Department" means the Texas Department of Human
66-24 Services.
66-25 (3) "Commissioner" means the Commissioner of Human
66-26 Services.
66-27 (4) "Assistance" means all forms of assistance and
67-1 services for needy persons authorized by Subtitle C.
67-2 (5) "Financial assistance" means money payments for
67-3 needy persons authorized by Chapter 31.
67-4 (6) "Medical assistance" means assistance for needy
67-5 persons authorized by Chapter 32.
67-6 SECTION 49. Sections 7(a) and (c), Chapter 1092, Acts of the
67-7 70th Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's
67-8 Texas Civil Statutes), are amended to read as follows:
67-9 (a) Except as provided in Subsection (b) of this section,
67-10 the issuer shall close on the bonds for which a reservation has
67-11 been granted not later than the 150th [90th] day after the
67-12 reservation date.
67-13 (c) If the issuer does not timely close on the bonds, the
67-14 issue's reservation is canceled and during the 180-day [120-day]
67-15 period beginning on the reservation date of the canceled
67-16 reservation:
67-17 (1) the issuer or any other issuer may not submit an
67-18 application for a reservation for the same project; and
67-19 (2) the issuer is eligible for a carryforward
67-20 designation for the project only as provided by Section 9 of this
67-21 Act.
67-22 SECTION 50. The following laws are repealed:
67-23 (1) Sections 2306.122, 2306.143, and 2306.513(e),
67-24 Government Code; and
67-25 (2) Chapter 34, Human Resources Code.
67-26 SECTION 51. This Act takes effect September 1, 1997.
67-27 SECTION 52. The change in law made to Section 2306.053,
68-1 Government Code, by this Act applies to a cause of action filed on
68-2 or after the effective date of this Act. A cause of action filed
68-3 before the effective date of this Act is governed by the law in
68-4 existence when the cause of action was filed, and that law is
68-5 continued in effect for that purpose.
68-6 SECTION 53. The importance of this legislation and the
68-7 crowded condition of the calendars in both houses create an
68-8 emergency and an imperative public necessity that the
68-9 constitutional rule requiring bills to be read on three several
68-10 days in each house be suspended, and this rule is hereby suspended.