By Hill H.B. No. 2577
75R7230 GJH-F
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 Resouces Code].
3-8 SECTION 4. Section 2306.004, Government Code, is amended to
3-9 read as follows:
3-10 Sec. 2306.004. DEFINITIONS. In this chapter:
3-11 (1) "Board" means the governing board of the
3-12 department.
3-13 (2) "Bond" means an evidence of indebtedness or other
3-14 obligation, regardless of the source of payment, issued by the
3-15 department under Subchapter P, including a bond, note, or bond or
3-16 revenue anticipation note, regardless of whether the obligation is
3-17 general or special, negotiable or nonnegotiable, in bearer or
3-18 registered form, in certified or book-entry form, in temporary or
3-19 permanent form, or with or without interest coupons.
3-20 (3) "Contract for Deed" means a seller-financed
3-21 contract for the conveyance of real property under which:
3-22 (A) legal title does not pass to the purchaser
3-23 until the consideration of the contract is fully paid to the
3-24 seller; and
3-25 (B) the seller's remedy for nonpayment is
3-26 recision or forfeiture or acceleration of any remaining payments
3-27 rather than judicial or nonjudicial foreclosure.
4-1 (4) "Department" means the Texas Department of Housing
4-2 and Community Affairs.
4-3 (5) [(4)] "Director" means the executive director of
4-4 the department.
4-5 (6) [(5)] "Economically depressed or blighted area"
4-6 means an area:
4-7 (A) that is a qualified census tract as defined
4-8 by Section 143(j), Internal Revenue Code of 1986 (26 U.S.C. Section
4-9 143(j)) or has been determined by the housing finance division to
4-10 be [a qualified census tract or] an area of chronic economic
4-11 distress under Section 143 [103A], Internal Revenue Code of 1986
4-12 [1954] (26 U.S.C. Section 143 [103A]);
4-13 (B) established in a municipality that has a
4-14 substantial number of substandard, slum, deteriorated, or
4-15 deteriorating structures and that suffers from a high relative rate
4-16 of unemployment; or
4-17 (C) that has been designated as [designed and
4-18 included in] a reinvestment zone [tax increment district created]
4-19 under Chapter 311, Tax Code [695, Acts of the 66th Legislature,
4-20 Regular Session, 1979 (Article 1066d, Vernon's Texas Civil
4-21 Statutes)].
4-22 (7) [(6)] "Elderly individual" means an individual [60
4-23 years] of an age specified by the board or by the applicable
4-24 federal program [or older].
4-25 (8) [(7)] "Family of moderate income" means a family:
4-26 (A) that is determined by the board to require
4-27 assistance, taking into account:
5-1 (i) the amount of the total income
5-2 available for housing needs of the individuals and families;
5-3 (ii) the size of the family;
5-4 (iii) the cost and condition of available
5-5 housing facilities;
5-6 (iv) the ability of the individuals and
5-7 families to compete successfully in the private housing market and
5-8 to pay the amounts required by private enterprise for sanitary,
5-9 decent, and safe housing; and
5-10 (v) standards established for various
5-11 federal programs determining eligibility based on income; and
5-12 (B) that does not qualify as a family of low
5-13 income.
5-14 (9) [(8)] "Federal government" means the United States
5-15 of America and includes any corporate or other instrumentality of
5-16 the United States of America, including the Resolution Trust
5-17 Corporation.
5-18 (10) [(9)] "Federal mortgage" means a mortgage loan
5-19 for residential housing:
5-20 (A) that is made by the federal government; or
5-21 (B) for which a commitment to make has been
5-22 given by the federal government.
5-23 (11) [(10)] "Federally assisted new communities" means
5-24 federally assisted areas that receive or will receive assistance in
5-25 the form of loan guarantees under Title X of the National Housing
5-26 Act (12 U.S.C. Section 1701 et seq.), and a portion of that
5-27 federally assisted area has received grants under Section 107(a)(1)
6-1 of the Housing and Community Development Act of 1974, as amended
6-2 (42 U.S.C. Section 5301 et seq.).
6-3 (12) [(11)] "Federally insured mortgage" means a
6-4 mortgage loan for residential housing that:
6-5 (A) is insured or guaranteed by the federal
6-6 government; or
6-7 (B) the federal government has committed to
6-8 insure or guarantee.
6-9 (13) [(12)] "Housing development" means property or
6-10 work or a project, building, structure, facility, or undertaking,
6-11 whether existing, new construction, remodeling, improvement, or
6-12 rehabilitation, that meets or is designed to meet minimum property
6-13 standards required by the department and that is financed under the
6-14 provisions of this chapter for the primary purpose of providing
6-15 sanitary, decent, and safe dwelling accommodations for rent, lease,
6-16 use, or purchase by individuals and families of low and very low
6-17 income and families of moderate income in need of housing. The
6-18 term includes:
6-19 (A) buildings, structures, land, equipment,
6-20 facilities, or other real or personal properties that are
6-21 necessary, convenient, or desirable appurtenances, including
6-22 streets, water, sewers, utilities, parks, site preparation,
6-23 landscaping, stores, offices, and other nonhousing facilities, such
6-24 as administrative, community, and recreational facilities the
6-25 department determines to be necessary, convenient, or desirable
6-26 appurtenances; and
6-27 (B) single and multifamily dwellings in rural
7-1 and urban areas.
7-2 (14) [(13)] "Housing sponsor" means:
7-3 (A) an individual, including an individual or
7-4 family of low and very low income or family of moderate income,
7-5 joint venture, partnership, limited partnership, trust, firm,
7-6 corporation, or cooperative that is approved by the department as
7-7 qualified to own, construct, acquire, rehabilitate, operate,
7-8 manage, or maintain a housing development, subject to the
7-9 regulatory powers of the department and other terms and conditions
7-10 in this chapter; or
7-11 (B) in an economically depressed or blighted
7-12 area, or in a federally assisted new community located within a
7-13 home-rule municipality, the term may include an individual or
7-14 family whose income exceeds the moderate income level if at least
7-15 90 percent of the total mortgage amount available under a mortgage
7-16 revenue bond issue is designated for individuals and families of
7-17 low income or families of moderate income.
7-18 (15) [(14)] "Individuals and families of low income"
7-19 means individuals and families earning not more than 80 percent of
7-20 the area median income or applicable federal poverty line, as
7-21 determined under Section 2306.123 or Section 2306.1231.
7-22 (16) [(15)] "Individuals and families of very low
7-23 income" means individuals and families earning not more than 60
7-24 percent of the area median income or applicable federal poverty
7-25 line, as determined under Section 2306.123 or Section 2306.1231.
7-26 (17) [(16)] "Land development" means:
7-27 (A) acquiring land for residential housing
8-1 construction; and
8-2 (B) making, installing, or constructing
8-3 nonresidential improvements that the department determines are
8-4 necessary or desirable for a housing development to be financed by
8-5 the department, including:
8-6 (i) waterlines and water supply
8-7 installations;
8-8 (ii) sewer lines and sewage disposal
8-9 installations;
8-10 (iii) steam, gas, and electric lines and
8-11 installations; and
8-12 (iv) roads, streets, curbs, gutters, and
8-13 sidewalks, whether on or off the site.
8-14 (18) [(17)] "Local government" means a county,
8-15 municipality, special district, or any other political subdivision
8-16 of the state, a public, nonprofit housing finance corporation
8-17 created under Chapter 394, Local Government Code, or a combination
8-18 of those entities.
8-19 (19) [(18)] "Mortgage" means an [interest-bearing]
8-20 obligation, including a mortgage, mortgage deed, bond, note, deed
8-21 of trust, or other instrument, that is a lien:
8-22 (A) on real property; or
8-23 (B) on a leasehold under a lease having a
8-24 remaining term that, at the time the lien is acquired, does not
8-25 expire until after the maturity date of the [interest-bearing]
8-26 obligation secured by the lien.
8-27 (20) [(19)] "Mortgage lender" means a bank, trust
9-1 company, savings bank, mortgage company, mortgage banker, credit
9-2 union, national banking association, savings and loan association,
9-3 life insurance company, or other financial institution authorized
9-4 to transact business in this state and approved as a mortgage
9-5 lender by the department.
9-6 (21) [(20)] "Mortgage loan" means an
9-7 [interest-bearing] obligation secured by a mortgage.
9-8 (22) [(21)] "Municipality" includes only a
9-9 municipality in this state.
9-10 (23) [(22)] "Public agency" means the department or
9-11 any [an] agency, board, authority, department, commission,
9-12 political subdivision, municipal corporation, district, public
9-13 corporation, body politic, or instrumentality of this state,
9-14 including a county, municipality, housing authority,
9-15 state-supported institution of higher education, school district,
9-16 junior college, other district or authority, or other type of
9-17 governmental entity of this state.
9-18 (24) [(23)] "Real estate owned contractor" means a
9-19 person required to meet the obligations of a contract with the
9-20 department [housing finance division] for managing and marketing
9-21 foreclosed property.
9-22 (25) [(24)] "Real property" means land, including
9-23 improvements and fixtures on the land, property of any nature
9-24 appurtenant to the land or used in connection with the land, and a
9-25 legal or equitable estate, interest, or right in land, including
9-26 leasehold interests, terms for years, and a judgment, mortgage, or
9-27 other lien.
10-1 (26) [(25)] "Reserve fund" means any [the housing
10-2 finance division's] reserve fund established by the department.
10-3 (27) [(26)] "Residential housing" means a specific
10-4 work or improvement undertaken primarily to provide dwelling
10-5 accommodations, including the acquisition, construction,
10-6 reconstruction, remodeling, improvement, or rehabilitation of land
10-7 and buildings and improvements to the buildings for residential
10-8 housing and other incidental or appurtenant nonhousing facilities.
10-9 (28) [(27)] "Servicer" means a person required to meet
10-10 contractual obligations with the housing finance division or with a
10-11 mortgage lender relating to a loan financed under Subchapter J,
10-12 including:
10-13 (A) purchasing mortgage certificates backed by
10-14 mortgage loans;
10-15 (B) collecting principal and interest from the
10-16 borrower;
10-17 (C) sending principal and interest payments to
10-18 the division;
10-19 (D) preparing periodic reports;
10-20 (E) notifying the primary mortgage and pool
10-21 insurers of delinquent and foreclosed loans; and
10-22 (F) filing insurance claims on foreclosed
10-23 property.
10-24 SECTION 5. Section 2306.007(a), Government Code, is amended
10-25 to read as follows:
10-26 (a) To establish an economically depressed or blighted area
10-27 under Section 2306.004(6)(B) [2306.004(5)(B)] or (C), the governing
11-1 body of a municipality must hold a public hearing and find that the
11-2 area:
11-3 (1) substantially impairs or arrests the sound growth
11-4 of the municipality; or
11-5 (2) is an economic or social liability and is a menace
11-6 to the public health, safety, morals, or welfare in its present
11-7 condition and use.
11-8 SECTION 6. Section 2306.021(b), Government Code, is amended
11-9 to read as follows:
11-10 (b) The department is composed of:
11-11 (1) the community affairs division;
11-12 (2) the housing finance division;
11-13 (3) the manufactured housing division; [and]
11-14 (4) the community development division; and
11-15 (5) any other division created by the director.
11-16 SECTION 7. Section 2306.032, Government Code, is amended by
11-17 amending Subsection (b) and adding Subsection (c) to read as
11-18 follows:
11-19 (b) The board shall keep complete minutes of board meetings.
11-20 The accounts, minutes, and other records shall be maintained by
11-21 [kept at the principal office of] the department.
11-22 (c) The open meetings law, Chapter 551, applies to the
11-23 department. However, the department may conduct a closed meeting
11-24 to discuss proprietary, financial, or commercial affairs of a
11-25 private applicant, borrower, or other recipient of funds from the
11-26 department.
11-27 SECTION 8. Section 2306.053, Government Code, is amended by
12-1 amending Subsection (b) and by adding Subsections (c) and (d) to
12-2 read as follows:
12-3 (b) The department may:
12-4 (1) [sue and be sued, or plead and be impleaded;]
12-5 [(2)] act for and on behalf of this state;
12-6 (2) [(3)] adopt an official seal or alter it;
12-7 (3) [(4)] adopt and enforce bylaws and rules;
12-8 (4) [(5)] contract with the federal government, state,
12-9 any public agency, mortgage lender, person, or other entity;
12-10 (5) [(6)] designate mortgage lenders to act for the
12-11 department for the origination, processing, and servicing of the
12-12 department's mortgage loans under conditions agreed to by the
12-13 parties;
12-14 (6) [(7)] provide, contract, or arrange for
12-15 consolidated processing of a housing development to avoid
12-16 duplication;
12-17 (7) [(8)] encourage homeless individuals and
12-18 individuals of low or very low income to attend the department's
12-19 educational programs and assist those individuals in attending the
12-20 programs;
12-21 (8) [(9)] appoint and determine the qualifications,
12-22 duties, and tenure of its agents, counselors, and professional
12-23 advisors, including accountants, appraisers, architects, engineers,
12-24 financial consultants, housing construction and financing experts,
12-25 and real estate consultants;
12-26 (9) [(10)] administer federal housing, community
12-27 affairs, or community development programs, including the low
13-1 income housing tax credit program;
13-2 (10) [(11)] establish eligibility criteria for
13-3 individuals and families of low, very low, and moderate income to
13-4 participate in and benefit from programs administered by the
13-5 department;
13-6 (11) execute funding agreements; [and]
13-7 (12) obtain, retain, and disseminate records and other
13-8 documents in electronic form; and
13-9 (13) do all things necessary, convenient, or desirable
13-10 to carry out the powers expressly granted or necessarily implied by
13-11 this chapter.
13-12 (c) The department is subject to the open records law,
13-13 Chapter 552.
13-14 (d) Proprietary, financial, or commercial records of a
13-15 private applicant, borrower, or other recipient of funds from the
13-16 department are confidential and not subject to disclosure under
13-17 Chapter 552.
13-18 SECTION 9. Section 2306.072, Government Code, is amended to
13-19 read as follows:
13-20 Sec. 2306.072. ANNUAL LOW INCOME HOUSING REPORT. (a) Not
13-21 later than March 1 [the 100th day after the last day] of each [the
13-22 fiscal] year, the director shall prepare and submit to the board an
13-23 annual report of the department's housing activities for the
13-24 preceding [fiscal] year.
13-25 (b) Not later than the 30th day after the date the board
13-26 receives the report, the board shall submit the report to the
13-27 governor, lieutenant governor, and speaker of the house of
14-1 representatives [legislature].
14-2 (c) The report must include:
14-3 (1) [a complete operating and financial statement of
14-4 the department;]
14-5 [(2)] a comprehensive statement of the activities of
14-6 the department during the preceding [fiscal] year to address the
14-7 needs identified in the state low income housing plan prepared as
14-8 required by Section 2306.0721, including:
14-9 (A) an [a statistical and narrative] analysis of
14-10 the department's performance in addressing the housing needs of
14-11 individuals and families of low and very low income;
14-12 (B) the ethnic and racial composition of
14-13 individuals and families [applying for and] receiving assistance
14-14 from each housing-related program operated by the department; and
14-15 (C) the department's progress in meeting the
14-16 goals established in the previous housing plan;
14-17 (2) [(3)] an explanation of the efforts made by the
14-18 department to involve [ensure] the participation of individuals of
14-19 low income and their community-based institutions in [every aspect
14-20 of] department programs that affect them;
14-21 (3) [(4)] a statement of the evidence that the
14-22 department has made an affirmative effort to involve [ensure the
14-23 involvement of] individuals of low income and their community-based
14-24 institutions in the allocation of funds and the planning process;
14-25 (4) [(5)] a statistical analysis, delineated according
14-26 to each ethnic and racial group served by the department, that
14-27 indicates the progress made by the department in implementing the
15-1 state low income housing plan in each of the uniform state service
15-2 regions; and
15-3 (5) [(6)] an analysis of [fair housing opportunities
15-4 in] each housing development that receives financial assistance
15-5 from the department that includes the following information for
15-6 each housing development that contains 20 or more living units:
15-7 (A) the street address and municipality or
15-8 county in which the property is located;
15-9 (B) the total number of units reported by
15-10 bedroom size;
15-11 (C) the total number of units designed for
15-12 individuals who are physically challenged or who have special needs
15-13 and the number of these individuals served annually as reported by
15-14 each housing sponsor;
15-15 (D) a statistical analysis of average rents
15-16 reported by county [region, as defined in the comprehensive housing
15-17 affordability strategy];
15-18 (E) the race or ethnic makeup of each project as
15-19 reported annually by each housing sponsor;
15-20 (F) the number of units occupied by individuals
15-21 receiving government-supported housing assistance as reported by
15-22 each housing sponsor;
15-23 (G) a statement as to whether the department has
15-24 been notified of a violation of the fair housing law that has been
15-25 filed with the United States Department of Housing and Urban
15-26 Development, the Commission on Human Rights, or the United States
15-27 Department of Justice; and
16-1 (H) a statement as to whether the development
16-2 has any instances of material noncompliance with bond indentures or
16-3 deed restrictions discovered through the normal monitoring
16-4 activities and procedures that include meeting occupancy
16-5 requirements or rent restrictions imposed by deed restriction or
16-6 financing agreements.
16-7 SECTION 10. Section 2306.0721, Government Code, is amended
16-8 to read as follows:
16-9 Sec. 2306.0721. LOW INCOME HOUSING PLAN. (a) Not later
16-10 than March 1 [the 100th day after the last day] of each [the
16-11 fiscal] year, the director shall prepare and submit to the board an
16-12 integrated state low income housing plan for the next year.
16-13 (b) Not later than the 30th day after the date the board
16-14 receives the plan, the board shall submit the plan to the governor,
16-15 lieutenant governor, and the speaker of the house of
16-16 representatives [legislature].
16-17 (c) The plan must include:
16-18 (1) an estimate and analysis of the housing needs of
16-19 the following populations in the state:
16-20 (A) individuals and families of moderate, low,
16-21 and very low income;
16-22 (B) individuals with special needs; and
16-23 (C) homeless individuals;
16-24 (2) a proposal to use all available housing resources
16-25 to address the housing needs of the populations described by
16-26 Subdivision (1) by establishing funding levels for all
16-27 housing-related programs;
17-1 (3) an estimate of the number of [federally assisted]
17-2 housing units that have received assistance through department
17-3 funding and that are available for individuals and families of low
17-4 and very low income and individuals with special needs in each
17-5 county [uniform state service region in the state];
17-6 (4) a description of state programs [rules and
17-7 policies] that govern the use of all available housing resources;
17-8 (5) a resource allocation plan that targets all of the
17-9 department's available housing resources to individuals and
17-10 families of low and very low income and individuals with special
17-11 needs;
17-12 (6) a description of the department's efforts to
17-13 monitor and analyze the unused or underused federal resources of
17-14 other state agencies for housing-related services and services for
17-15 homeless individuals and the department's recommendations to ensure
17-16 the full use by the state of all available federal resources for
17-17 those services; and
17-18 (7) strategies to provide housing for individuals and
17-19 families with special needs.
17-20 SECTION 11. Section 2306.0722, Government Code, is amended
17-21 to read as follows:
17-22 Sec. 2306.0722. PREPARATION OF PLAN AND REPORT. In
17-23 preparing the annual report under Section 2306.072 and the state
17-24 low income housing plan under Section 2306.0721, the director
17-25 shall:
17-26 (1) coordinate local, state, and federal housing
17-27 resources, including tax exempt housing bond financing and low
18-1 income housing tax credits;
18-2 (2) set priorities for the available housing resources
18-3 to help the neediest individuals;
18-4 (3) evaluate the success of publicly supported housing
18-5 programs;
18-6 (4) survey and identify the unmet housing needs of
18-7 individuals the department is required to assist;
18-8 (5) ensure that housing programs benefit an individual
18-9 without regard to the individual's race, ethnicity, sex, or
18-10 national origin;
18-11 (6) develop housing opportunities for individuals and
18-12 families of low and very low income and individuals with special
18-13 housing needs;
18-14 (7) develop housing programs through an open, fair,
18-15 and public process;
18-16 (8) set priorities for assistance in a manner that is
18-17 appropriate and consistent with the housing needs of the
18-18 populations described by Section 2306.0721(c)(1); and
18-19 (9) incorporate recommendations that are consistent
18-20 with the consolidated plan [comprehensive housing affordability
18-21 strategy and performance report] submitted annually by the state to
18-22 the United States Department of Housing and Urban Development.
18-23 SECTION 12. Section 2306.0723, Government Code, is amended
18-24 to read as follows:
18-25 Sec. 2306.0723. PUBLIC PARTICIPATION REQUIREMENTS
18-26 [HEARINGS]. (a) The department shall hold two [a] public hearings
18-27 [hearing] on [the annual report and] the annual state low income
19-1 housing plan and report before the director submits the report and
19-2 the plan to the board. At least 14 days before the date of the
19-3 first public hearing, the department shall publish notice of both
19-4 hearings and a summary of the report and plan in the Texas Register
19-5 and in at least one newspaper with broad circulation in this state.
19-6 The department shall accept comments on the report and plan at the
19-7 two public hearings and for at least 30 days after the date of the
19-8 publication of the notice of the hearings.
19-9 (b) The board shall hold a public hearing on the state low
19-10 income housing report and plan before the board submits the report
19-11 and the plan to the governor, lieutenant governor, and speaker of
19-12 the house of representatives [legislature].
19-13 (c) The board shall include with the report and the plan the
19-14 board submits to the governor, lieutenant governor, and speaker of
19-15 the house of representatives [legislature] a written summary
19-16 [report] of public comments on the report and the plan.
19-17 SECTION 13. Section 2306.076(a), Government Code, is amended
19-18 to read as follows:
19-19 (a) The board may purchase from department funds liability
19-20 insurance for the director, [and] board members, [and] officers,
19-21 and employees of the department.
19-22 SECTION 14. The heading of Subchapter E, Chapter 2306,
19-23 Government Code, is amended to read as follows:
19-24 SUBCHAPTER E. COMMUNITY AFFAIRS AND COMMUNITY DEVELOPMENT
19-25 PROGRAMS
19-26 SECTION 15. Subchapter E, Chapter 2306, Government Code, is
19-27 amended by adding Section 2306.094 to read as follows:
20-1 Sec. 2306.094. SERVICES FOR THE HOMELESS. The department
20-2 shall administer the state's allocation of federal funds provided
20-3 under the Emergency Shelter Grants Program (42 U.S.C. Section 11371
20-4 et seq.), as amended, or its successor program, and any other
20-5 federal funds provided for the benefit of homeless individuals and
20-6 families.
20-7 SECTION 16. Section 2306.097, Government Code, is amended to
20-8 read as follows:
20-9 Sec. 2306.097. ENERGY SERVICES PROGRAM FOR LOW-INCOME
20-10 INDIVIDUALS. [(a)] The Energy Services Program for Low-Income
20-11 Individuals [is in the community affairs division.]
20-12 [(b) The program] shall operate in conjunction with the
20-13 community services block grant program and has jurisdiction and
20-14 responsibility for administration of the following elements of the
20-15 State Low-Income Energy Assistance Program, from whatever sources
20-16 funded:
20-17 (1) the Energy Crisis Intervention Program;
20-18 (2) the weatherization program; and
20-19 (3) the Low-Income Home Energy Assistance Program.
20-20 SECTION 17. Section 2306.099, Government Code, is amended to
20-21 read as follows:
20-22 Sec. 2306.099. TRANSFER OF FEDERAL FUNDS. (a) The
20-23 department may enter into an interagency agreement with the Texas
20-24 Department of Commerce to reimburse the Texas Department of
20-25 Commerce for providing on behalf of the department marketing, [and]
20-26 underwriting, and any other services on the portion of the federal
20-27 community development block grant funds allocated by the department
21-1 for economic development activities.
21-2 (b) The department shall allocate not more than 20 percent
21-3 of the federal funds received by the department [to the Texas
21-4 Department of Commerce to be used] for economic development
21-5 activities.
21-6 (c) The activities undertaken by the Texas Department of
21-7 Commerce under this section must be monitored [approved] by the
21-8 department.
21-9 SECTION 18. Section 2306.111(a), Government Code, is amended
21-10 to read as follows:
21-11 (a) The department, through the housing finance [any]
21-12 division, shall administer all [the] federal housing funds provided
21-13 to the state under the Cranston-Gonzalez National Affordable
21-14 Housing Act (42 U.S.C. Section 12704 et seq.) or any other
21-15 affordable housing program.
21-16 SECTION 19. Section 2306.142, Government Code, is amended to
21-17 read as follows:
21-18 Sec. 2306.142. AUTHORIZATION OF BONDS. In its discretion,
21-19 the board shall authorize all bonds issued by the department
21-20 [housing finance division].
21-21 SECTION 20. Section 2306.171, Government Code, is amended to
21-22 read as follows:
21-23 Sec. 2306.171. GENERAL DUTIES OF DEPARTMENT RELATING TO
21-24 PURPOSES OF HOUSING FINANCE DIVISION. The department shall:
21-25 (1) develop policies and programs designed to increase
21-26 the number of individuals and families of low and very low income
21-27 and families of moderate income that participate in the housing
22-1 finance division's programs;
22-2 (2) work with municipalities, counties, public
22-3 agencies, housing sponsors, and nonprofit and for profit
22-4 corporations to provide:
22-5 (A) information on division programs; and
22-6 (B) technical assistance to municipalities,
22-7 counties, and nonprofit corporations;
22-8 (3) encourage private for profit and nonprofit
22-9 corporations and state organizations to match the division's funds
22-10 to assist in providing affordable housing to individuals and
22-11 families of low and very low income and families of moderate
22-12 income;
22-13 (4) provide matching funds to municipalities,
22-14 counties, public agencies, housing sponsors, and nonprofit
22-15 developers who qualify under the division's programs; and
22-16 (5) administer the state's allocation of federal funds
22-17 provided under the rental rehabilitation grant program authorized
22-18 by Section 17, Title I, of the United States Housing Act of 1937
22-19 (42 U.S.C. Section 1437o).
22-20 SECTION 21. Section 2306.177, Government Code, is amended to
22-21 read as follows:
22-22 Sec. 2306.177. HEARINGS. The department may:
22-23 (1) conduct hearings; and
22-24 (2) take testimony and proof, under oath, at public
22-25 hearings, on matters necessary to carry out the department's
22-26 [housing finance division's] purposes.
22-27 SECTION 22. Section 2306.201(b), Government Code, is amended
23-1 to read as follows:
23-2 (b) The fund consists of:
23-3 (1) appropriations or transfers made to the fund;
23-4 (2) unencumbered fund balances; [and]
23-5 (3) public or private gifts or grants;
23-6 (4) investment income; and
23-7 (5) funds from any other source.
23-8 SECTION 23. Section 2306.202, Government Code, is amended to
23-9 read as follows:
23-10 Sec. 2306.202. USE OF HOUSING TRUST FUND. (a) The
23-11 department, through the housing finance division, shall use the
23-12 housing trust fund to provide loans, grants, or other comparable
23-13 forms of assistance to local units of government, public housing
23-14 authorities, nonprofit or for profit organizations, and
23-15 income-eligible individuals, families, and households to finance,
23-16 acquire, rehabilitate, and develop decent, safe, and sanitary
23-17 housing. Notwithstanding any other section of this chapter, the
23-18 department may also use the fund to acquire property to endow the
23-19 fund.
23-20 (b) Use of the fund is limited to providing:
23-21 (1) assistance for individuals and families of low and
23-22 very low income; [and]
23-23 (2) technical assistance and capacity building to
23-24 nonprofit organizations engaged in developing housing for
23-25 individuals and families of low and very low income; and
23-26 (3) security for repayment of revenue bonds issued to
23-27 finance housing for individuals and families of low and very low
24-1 income.
24-2 SECTION 24. Section 2306.207(a), Government Code, is amended
24-3 to read as follows:
24-4 (a) The department [housing finance division] may create a
24-5 reserve fund with the comptroller [state treasurer] out of:
24-6 (1) proceeds from the sale of the department's
24-7 [division's] bonds; or
24-8 (2) other resources.
24-9 SECTION 25. Section 2306.232, Government Code, is amended to
24-10 read as follows:
24-11 Sec. 2306.232. TEXAS HOUSING AGENCY LOAN OR GUARANTEE. A
24-12 loan or guarantee made by the Texas Housing Agency becomes a loan
24-13 or guarantee of the department [housing finance division].
24-14 SECTION 26. The heading of Subchapter K, Chapter 2306,
24-15 Government Code, is amended to read as follows:
24-16 SUBCHAPTER K. PROPERTY OWNERSHIP AND HOUSING PROGRAMS
24-17 SECTION 27. Section 2306.251, Government Code, is amended as
24-18 follows:
24-19 Sec. 2306.251. PROPERTY OWNERSHIP PROGRAM. (a) The
24-20 department may acquire, [and] own, reconstruct, rehabilitate,
24-21 manage, or operate real property:
24-22 (1) [on an interim basis] for sale or rental to:
24-23 (A) [(1)] individuals and families of low and
24-24 very low income and families of moderate income; and
24-25 (B) [(2)] nonprofit housing organizations and
24-26 other housing organizations to serve the needs of individuals and
24-27 families of low and very low income and families of moderate
25-1 income;
25-2 (2) to preserve publicly financed or subsidized
25-3 housing; or
25-4 (3) to participate in a risk-sharing program entered
25-5 into with the United States Department of Housing and Urban
25-6 Development, any other insurer or guarantor of any United States
25-7 Department of Housing and Urban Development-related indebtedness, a
25-8 government sponsored enterprise, a housing finance agency or
25-9 corporation, or a public housing authority.
25-10 (b) [Property acquired by the department must qualify for
25-11 home mortgage insurance after rehabilitation.]
25-12 [(c)] The department may use money from the housing trust
25-13 fund, unencumbered fund balances, fees received by the housing
25-14 finance division, proceeds from the sale or rental of real
25-15 property, distribution of earnings under Section 2306.557, or
25-16 appropriations, allocations, grants, or gifts from any public or
25-17 private source to purchase property under this section.
25-18 (c) If the department uses the housing trust fund to finance
25-19 real property acquisitions, it [(d) The housing finance division]
25-20 may not use more than 10 percent of the yearly balance of the
25-21 [housing trust] fund to acquire the real property.
25-22 (d) [(e)] If the department acquires property under this
25-23 section, the department shall submit an annual report to the board
25-24 that includes an analysis of [have an independent audit conducted
25-25 annually to analyze] the property ownership program's:
25-26 (1) financial stability;
25-27 (2) cost-effectiveness; and
26-1 (3) effectiveness in serving individuals and families
26-2 of low and very low income and families of moderate income.
26-3 SECTION 28. Section 2306.252(b), Government Code, is amended
26-4 to read as follows:
26-5 (b) The center shall:
26-6 (1) provide educational material to housing advocates,
26-7 housing sponsors, borrowers, and tenants;
26-8 (2) provide technical assistance to nonprofit housing
26-9 sponsors; and
26-10 (3) [focus on marketing loans and other programs of
26-11 the housing finance division to individuals and families of low and
26-12 very low income; and]
26-13 [(4)] assist [lenders] in the development of housing
26-14 policy, including the annual state low income housing plan and
26-15 report and the consolidated plan [marketing loans to individuals
26-16 and families of low and very low income].
26-17 SECTION 29. Section 2306.267, Government Code, is amended to
26-18 read as follows:
26-19 Sec. 2306.267. COMPLIANCE WITH APPLICABLE LAWS, RULES, AND
26-20 CONTRACT TERMS. The department may order a housing sponsor to
26-21 perform or refrain from performing certain acts in order to comply
26-22 with the law, department [housing finance division] rules, or terms
26-23 of a contract or agreement to which the housing sponsor is a party.
26-24 SECTION 30. Section 2306.270, Government Code, is amended to
26-25 read as follows:
26-26 Sec. 2306.270. REGULATION OF RETIREMENT OF CAPITAL
26-27 INVESTMENT OR REDEMPTION OF STOCK. The department shall regulate
27-1 the retirement of a capital investment or the redemption of stock
27-2 of a limited profit housing sponsor if the retirement or
27-3 redemption, when added to a dividend or other distribution, exceeds
27-4 in any one fiscal year the permitted percentage, as allowed by the
27-5 department [housing finance division's rules], of the original face
27-6 amount of the limited profit housing sponsor's investment or equity
27-7 in a housing development.
27-8 SECTION 31. Section 2306.291(a), Government Code, is amended
27-9 to read as follows:
27-10 (a) The department may purchase and take assignments from
27-11 mortgage lenders or the federal government of notes and other
27-12 obligations, including contracts for deed and mortgages, evidencing
27-13 loans or interest in loans for the construction, remodeling,
27-14 improvement, [or] rehabilitation, purchase, leasing, or refinancing
27-15 of housing developments for individuals and families of low and
27-16 very low income and families of moderate income.
27-17 SECTION 32. Section 2306.351(a), Government Code, is amended
27-18 to read as follows:
27-19 (a) The department may issue bonds under this chapter,
27-20 including qualified 501(c)(3) bonds under Section 145, Internal
27-21 Revenue Code of 1986 (26 U.S.C. Section 145), and may:
27-22 (1) provide for and secure payment of the bonds;
27-23 (2) provide for the rights of the holders of the
27-24 bonds, as permitted by this chapter and the Texas Constitution; and
27-25 (3) purchase, hold, cancel, resell, or otherwise
27-26 dispose of its bonds, subject to restrictions in a resolution
27-27 authorizing issuance of its bonds.
28-1 SECTION 33. Section 2306.357, Government Code, is amended to
28-2 read as follows:
28-3 Sec. 2306.357. BONDS ISSUED BY TEXAS HOUSING AGENCY. A
28-4 general obligation or revenue bond issued by the Texas Housing
28-5 Agency becomes a general obligation or revenue bond of the
28-6 department [housing finance division].
28-7 SECTION 34. Section 2306.375, Government Code, is amended to
28-8 read as follows:
28-9 Sec. 2306.375. PERSONAL LIABILITY OF BOARD MEMBER OR
28-10 DIRECTOR. A member of the board or the director is not liable
28-11 personally for bonds issued or contracts executed by the department
28-12 or for any other action taken in accordance with the powers and
28-13 duties authorized by this chapter [housing finance division].
28-14 SECTION 35. Section 2306.411(a), Government Code, is amended
28-15 to read as follows:
28-16 (a) In addition to other security for the department's bonds
28-17 authorized by this chapter, payment of the principal and interest
28-18 and redemption premium, if any, on the department's bonds may be
28-19 secured by a first or subordinate lien on and pledge of all or part
28-20 of:
28-21 (1) the department's assets and real, personal, or
28-22 mixed property, including:
28-23 (A) mortgages or other obligations securing the
28-24 assets of property;
28-25 (B) investments; and
28-26 (C) trust agreements or trust indentures
28-27 administered by one or more corporate trustees as allowed by the
29-1 board; and
29-2 (2) the reserves or funds of the department [housing
29-3 finance division].
29-4 SECTION 36. Section 2306.412(a), Government Code, is amended
29-5 to read as follows:
29-6 (a) A lien on or pledge of revenues, income, assets,
29-7 reserves, funds, or other resources of the department [housing
29-8 finance division], as authorized by this chapter, is valid and
29-9 binding from the time of payment for and delivery of the bonds
29-10 authorized by the board resolution creating or confirming the lien
29-11 or pledge.
29-12 SECTION 37. Section 2306.491, Government Code, is amended to
29-13 read as follows:
29-14 Sec. 2306.491. BONDS NEGOTIABLE INSTRUMENTS.
29-15 Notwithstanding any other statute, a bond and interest coupon
29-16 issued and delivered by the department [housing finance division]
29-17 is a negotiable instrument under the Uniform Commercial Code,
29-18 except that the bond may be registered or subject to registration
29-19 under this chapter.
29-20 SECTION 38. Chapter 2306, Government Code, is amended by
29-21 adding Subchapter AA to read as follows:
29-22 SUBCHAPTER AA. EMERGENCY NUTRITION AND TEMPORARY EMERGENCY
29-23 RELIEF PROGRAM
29-24 Sec. 2306.651. DEFINITIONS. In this subchapter:
29-25 (1) "Applicant" means the commissioners court of a
29-26 county, the governing body of another political subdivision, or a
29-27 nonprofit organization.
30-1 (2) "Nonprofit organization" means a private,
30-2 nonprofit, tax-exempt corporation under Section 501(c)(3), Internal
30-3 Revenue Code of 1986 (26 U.S.C. Section 501(c)(3)).
30-4 (3) "Program" means a system of providing temporary
30-5 emergency relief to needy persons.
30-6 Sec. 2306.652. TEMPORARY EMERGENCY RELIEF PROGRAM. (a) The
30-7 department shall establish a temporary emergency relief program to
30-8 assist counties, in cooperation with other public entities and
30-9 nonprofit organizations, in meeting the needs of individuals and
30-10 families for temporary emergency relief.
30-11 (b) The department shall establish the emergency nutrition
30-12 program as part of the temporary emergency relief program
30-13 established under this subchapter to meet the unmet need for
30-14 emergency food assistance. The department shall administer the
30-15 emergency nutrition program in the same fashion and under the same
30-16 procedures as govern the administration of the temporary emergency
30-17 relief program.
30-18 Sec. 2306.653. APPLICATION. (a) A county may apply to the
30-19 department for a grant-in-aid to establish and administer a program
30-20 under this subchapter.
30-21 (b) If a county declines to act, the department may accept
30-22 applications from other political subdivisions or from nonprofit
30-23 organizations. The political subdivision or nonprofit organization
30-24 must first notify the county judge of its intention to submit an
30-25 application for a grant-in-aid.
30-26 (c) An application submitted under this section must provide
30-27 evidence that a county requires assistance and that the applicant
31-1 has consulted with public entities, nonprofit organizations,
31-2 voluntary associations, representatives of low-income persons, and
31-3 other groups involved in providing assistance to needy persons.
31-4 (d) The department shall adopt rules establishing the
31-5 criteria for determining whether an applicant qualifies under this
31-6 subchapter. The department may approve only one program for each
31-7 county.
31-8 (e) A decision by a county to administer a program under
31-9 this subchapter remains in effect until the county notifies the
31-10 department that the county no longer wants to participate in the
31-11 program. If a county decides to discontinue its participation, the
31-12 department may choose an applicant as an alternative participant as
31-13 prescribed by Subsection (b) of this section and by department
31-14 rules.
31-15 (f) The department shall develop standards and procedures
31-16 for the program that permit all counties in the state to
31-17 participate.
31-18 Sec. 2306.654. LOCAL ALLOCATION. (a) State funds provided
31-19 to a local applicant under this subchapter may not be used for
31-20 local administrative costs.
31-21 (b) An allocation to a county from the program established
31-22 by Section 2306.652 shall be based on the county's demonstrated
31-23 need for the money. The formula used by the department to allocate
31-24 the money shall include:
31-25 (1) the number of unemployed persons in the county
31-26 during the most recent 12-month period for which data is available
31-27 compared to the number of unemployed people in the state during
32-1 that same 12-month period; and
32-2 (2) the number of people at or below the poverty line
32-3 in the county during the most recent 12-month period for which data
32-4 is available compared to the number of people at or below the
32-5 poverty line in the state during that same 12-month period.
32-6 Sec. 2306.655. LOCAL PLAN; DISBURSEMENT. (a) An applicant
32-7 must submit to the department a plan for providing emergency
32-8 relief.
32-9 (b) The plan must contain a description of the target
32-10 population, the eligibility criteria for receipt of services, the
32-11 nature and scope of benefits to be provided, methods of
32-12 administration, and a budget.
32-13 (c) The plan must also show evidence of consultation with
32-14 the entities listed in Section 2306.653(c).
32-15 (d) On certification by the department that the applicant
32-16 qualifies under this subchapter, the department shall disburse
32-17 money available for that purpose to the applicant to be used to
32-18 establish a program in the affected county.
32-19 Sec. 2306.656. ELIGIBILITY FOR ASSISTANCE. (a) Each
32-20 county, political subdivision, or nonprofit organization approved
32-21 by the department for establishing a program shall establish its
32-22 own criteria for persons eligible to receive benefits under the
32-23 program and shall include the criteria in the plan for providing
32-24 emergency relief submitted to the department.
32-25 (b) Before establishing eligibility and the frequency and
32-26 duration of benefits provided under the program, the county,
32-27 political subdivision, or nonprofit organization shall allow
33-1 adequate notice and opportunity for public comment, including
33-2 comments from entities listed in Section 2306.653(c).
33-3 (c) A county, political subdivision, or nonprofit
33-4 organization may not set the eligibility level at less than 75
33-5 percent of the federal poverty level based on the federal Office of
33-6 Management and Budget poverty index in effect at the time the plan
33-7 is submitted to the department.
33-8 (d) Assistance to persons eligible to participate in a
33-9 program authorized by this subchapter shall be provided through
33-10 vouchers and purchased services in accordance with the approved
33-11 plan submitted to the department. The assistance may include the
33-12 provision of utilities, food, housing, and clothing to needy
33-13 persons.
33-14 (e) Records pertaining to a program under this subchapter
33-15 are subject to audit by the department, an auditor approved by the
33-16 department, or the state auditor.
33-17 Sec. 2306.657. REPORTS AND PUBLIC NOTICES. (a) As part of
33-18 the annual report required by Section 2306.072, Government Code,
33-19 the director shall include a written report describing and
33-20 analyzing the operation of programs under this subchapter.
33-21 (b) A county, political subdivision, or nonprofit
33-22 organization funded under this subchapter shall assure the
33-23 department that information is provided to the public regarding
33-24 eligibility for and the nature of a program operated under this
33-25 subchapter.
33-26 Sec. 2306.658. RELATIONSHIP TO FEDERAL LAW. (a) If a
33-27 federal law or regulation is changed without making a provision for
34-1 temporary waivers to allow compliance with state law and, as a
34-2 result of this change, there is insufficient time to comply with
34-3 all the procedures required by this subchapter, the agency or
34-4 entity affected may act so as to comply with federal law and shall
34-5 comply with the applicable procedures required by this subchapter
34-6 as soon as possible.
34-7 (b) If a federal statute or court order conflicts with this
34-8 subchapter, the federal law or court order prevails over this
34-9 subchapter.
34-10 SECTION 39. Section 11.001, Human Resources Code, is amended
34-11 to read as follows:
34-12 Sec. 11.001. Definitions. Except as provided by Section
34-13 [34.002 or] 40.001, in this title:
34-14 (1) "Board" means the Texas Board of Human Services.
34-15 (2) "Department" means the Texas Department of Human
34-16 Services.
34-17 (3) "Commissioner" means the Commissioner of Human
34-18 Services.
34-19 (4) "Assistance" means all forms of assistance and
34-20 services for needy persons authorized by Subtitle C.
34-21 (5) "Financial assistance" means money payments for
34-22 needy persons authorized by Chapter 31.
34-23 (6) "Medical assistance" means assistance for needy
34-24 persons authorized by Chapter 32.
34-25 SECTION 40. The following laws are repealed:
34-26 (1) Sections 2306.122, 2306.143, and 2306.513(e),
34-27 Government Code; and
35-1 (2) Chapter 34, Human Resources Code.
35-2 SECTION 41. This Act takes effect September 1, 1997.
35-3 SECTION 42. The change in law made to Section 2306.053,
35-4 Government Code, by this Act applies to a cause of action filed on
35-5 or after the effective date of this Act. A cause of action filed
35-6 before the effective date of this Act is governed by the law in
35-7 existence when the cause of action was filed, and that law is
35-8 continued in effect for that purpose.
35-9 SECTION 43. The importance of this legislation and the
35-10 crowded condition of the calendars in both houses create an
35-11 emergency and an imperative public necessity that the
35-12 constitutional rule requiring bills to be read on three several
35-13 days in each house be suspended, and this rule is hereby suspended.