1-1 By: Hill, et al. (Senate Sponsor - Lucio) H.B. No. 2577
1-2 (In the Senate - Received from the House May 10, 1997;
1-3 May 13, 1997, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 16, 1997, reported favorably, as
1-5 amended, by the following vote: Yeas 11, Nays 0; May 16, 1997,
1-6 sent to printer.)
1-7 COMMITTEE AMENDMENT NO. 1 By: Lucio
1-8 Amend HB 2577 as follows:
1-9 1) DELETE SECTION 5, Sec. 2306.004 Government Code, Number (7) (On
1-10 Page 4, lines 35-37); and substitute the following:
1-11 (7) "Elderly individual" means an individual 60 years of age or
1-12 older.
1-13 2) ADD subsection (c) to: SECTION 47, Section 2306.678 (Page 28,
1-14 (b) after line 13). To read as follows:
1-15 (c) The department shall waive grant application fees for
1-16 non-profits that offer expanded services such as child care,
1-17 nutrition programs, job training assistance, health services, or
1-18 human services.
1-19 COMMITTEE AMENDMENT NO. 2 By: Lucio
1-20 Amend HB 2577 by adding a new appropriately numbered section to
1-21 read as follows, and renumbering existing sections accordingly:
1-22 SECTION ___. Section 373.005, Local Government Code, is amended by
1-23 adding a new subsection (d) to read as follows:
1-24 (d) A municipality may issue notes or other obligations guaranteed
1-25 by the Secretary of Housing and Urban Development under Section 108
1-26 of the Housing and Community Development Act of 1974 (42 U.S.C.
1-27 Section 5308), as amended, for the purpose of providing financing
1-28 for those activities described in Section 108 of the Housing and
1-29 Community Development Act (42 U.S.C. 5308), as amended, in
1-30 furtherance of an approved community development program. The
1-31 Section 108 guaranteed notes additionally may be secured by and
1-32 made payable from the same sources as obligations issued under
1-33 Subchapter C, Chapter 271, Local Government Code, subject to the
1-34 notice provisions set forth therein. The Section 108 guaranteed
1-35 notes or other obligations may be issued in such form,
1-36 denominations, manner, terms and conditions, bear interest at such
1-37 rates, be interim or permanent notes or obligations, be subject to
1-38 transfer, exchange, change, conversion, or replacement, and be sold
1-39 in such manner, at such price, and under such terms, all as
1-40 provided in the ordinance or resolution authorizing the issuance of
1-41 such Section 108 guaranteed notes or obligations.
1-42 COMMITTEE AMENDMENT NO. 3 By: Lucio
1-43 1. Amend HB 2577, SECTION 29, Sec. 2306.202 by adding on page 15,
1-44 line 17 after "Chapter," and before "the" but subject to the
1-45 limitations in Section 2306.251(c), Government Code,"
1-46 2. Amend HB 2577 by adding in SECTION 45, SUBCHAPTER Y, a new
1-47 Section 2306.5543 as follows:
1-48 Sec. 2306.5543. PERSONNEL POLICIES. The board of directors
1-49 of the corporation shall develop and implement personnel policies,
1-50 including policies relating to employee conflicts of interest, that
1-51 are substantially similar to comparable policies that govern state
1-52 employees.
1-53 3. Amend HB 2577 by adding in SECTION 45, SUBCHAPTER Y, a new
1-54 Section 2306.5555 as follows:
1-55 Sec. 2306.5555. PUBLIC ACCESS. The board of directors of
1-56 the corporation shall develop and implement policies that provide
1-57 the public with a reasonable opportunity to appear before the board
1-58 of directors and to speak on any issue under the jurisdiction of
1-59 the corporation.
1-60 COMMITTEE AMENDMENT NO. 4 By: Lucio
1-61 Amend H.B. 2577 as follows: Strike Section 49 of the bill
1-62 and renumber the subsequent sections appropriately.
1-63 COMMITTEE AMENDMENT NO. 5 By: Lucio
1-64 Amend House Bill 2577, SECTION 23, Section 2306.111, Government
2-1 Code, by adding on page 13, following line 40 the following:
2-2 (c) In administering federal housing funds provided to the state
2-3 under the Cranston-Gonzalez National Affordable Housing Act (42
2-4 U.S.C. Section 12704 et seq.) the department shall give the highest
2-5 priority to utilizing these funds for the benefit of
2-6 non-participating small cities and rural areas which do not qualify
2-7 to receive funds under the Cranston-Gonzalez National Affordable
2-8 Housing Act directly from the U.S. Department of Housing and Urban
2-9 Development unless the department finds there is insufficient need
2-10 and demand for housing funds within these areas.
2-11 COMMITTEE AMENDMENT NO. 6 By: Lucio
2-12 Amend HB 2577 as follows: 1) Amend SECTION 16, Section
2-13 2306.0723, Government Code (Page 12, line 8) by deleting the line
2-14 after the word "San Antonio", and substituting the following:
2-15 Lower Rio Grande Valley, and at least two
2-16 2) Amend SECTION 9, Section 2306.033, Government Code (d) (Page 7,
2-17 lines 44-46) as follows:
2-18 Strike on lines 44-45 after the word "board" the words "may have"
2-19 and substitute with "has";
2-20 ADD on line 46 after the word "board" , and provide to said officer
2-21 evidence of such criminal behavior or conduct.
2-22 A BILL TO BE ENTITLED
2-23 AN ACT
2-24 relating to the Texas Department of Housing and Community Affairs
2-25 and to low income and affordable housing.
2-26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
2-27 SECTION 1. Section 2166.003(a), Government Code, is amended
2-28 to read as follows:
2-29 (a) Unless otherwise provided, this chapter does not apply
2-30 to:
2-31 (1) a project constructed by and for the Texas
2-32 Department of Transportation;
2-33 (2) a project constructed by and for a state
2-34 institution of higher education;
2-35 (3) a pen, shed, or ancillary building constructed by
2-36 and for the Department of Agriculture for the processing of
2-37 livestock before export;
2-38 (4) a project constructed by the Parks and Wildlife
2-39 Department;
2-40 (5) a repair or rehabilitation project, except a major
2-41 renovation, of buildings and grounds on the commission inventory;
2-42 (6) a repair and rehabilitation project of another
2-43 using agency, if all labor for the project is provided by the
2-44 regular maintenance force of the using agency under specific
2-45 legislative authorization and the project does not require the
2-46 advance preparation of working plans or drawings; [or]
2-47 (7) a repair and rehabilitation project involving the
2-48 use of contract labor, if the project has been excluded from this
2-49 chapter by commission rule and does not require the advance
2-50 preparation of working plans or drawings; or
2-51 (8) a repair, rehabilitation, or construction project
2-52 on property owned by the Texas Department of Housing and Community
2-53 Affairs or the Texas State Affordable Housing Corporation.
2-54 SECTION 2. Section 2167.001(b), Government Code, is amended
2-55 to read as follows:
2-56 (b) This chapter does not apply to:
2-57 (1) aircraft hangar space;
2-58 (2) radio antenna space;
2-59 (3) boat storage space;
2-60 (4) vehicle parking space;
2-61 (5) residential space for a Texas Department of Mental
2-62 Health and Mental Retardation program;
2-63 (6) residential space for a Texas Youth Commission
2-64 program;
2-65 (7) space to be used for less than one month for
2-66 meetings, conferences, conventions, seminars, displays,
2-67 examinations, auctions, or similar purposes;
2-68 (8) district office space for members of the
2-69 legislature; [or]
3-1 (9) space used by the Texas Employment Commission; or
3-2 (10) residential property acquired by the Texas
3-3 Department of Housing and Community Affairs or the Texas State
3-4 Affordable Housing Corporation that is offered for sale or rental
3-5 to individuals and families of low or very low income or families
3-6 of moderate income.
3-7 SECTION 3. Section 2305.033(a), Government Code, is amended
3-8 to read as follows:
3-9 (a) The Texas Department of Housing and Community Affairs is
3-10 the supervising state agency for the emergency nutrition and
3-11 temporary emergency relief program established under Subchapter AA,
3-12 Chapter 2306 [Chapter 34, Human Resources Code].
3-13 SECTION 4. Section 2306.001, Government Code, is amended to
3-14 read as follows:
3-15 Sec. 2306.001. Purposes. The purposes of the department are
3-16 to:
3-17 (1) assist local governments in:
3-18 (A) providing essential public services for
3-19 their residents; and
3-20 (B) overcoming financial, social, and
3-21 environmental problems;
3-22 (2) provide for the housing needs of individuals and
3-23 families of low and very low income and families of moderate
3-24 income;
3-25 (3) contribute to the preservation, development, and
3-26 redevelopment of neighborhoods and communities, including
3-27 cooperation in the preservation of government-assisted housing
3-28 occupied by individuals and families of very low and extremely low
3-29 income;
3-30 (4) assist the governor and the legislature in
3-31 coordinating federal and state programs affecting local government;
3-32 and
3-33 (5) inform state officials and the public of the needs
3-34 of local government.
3-35 SECTION 5. Section 2306.004, Government Code, is amended to
3-36 read as follows:
3-37 Sec. 2306.004. DEFINITIONS. In this chapter:
3-38 (1) "Board" means the governing board of the
3-39 department.
3-40 (2) "Bond" means an evidence of indebtedness or other
3-41 obligation, regardless of the source of payment, issued by the
3-42 department under Subchapter P, including a bond, note, or bond or
3-43 revenue anticipation note, regardless of whether the obligation is
3-44 general or special, negotiable or nonnegotiable, in bearer or
3-45 registered form, in certified or book-entry form, in temporary or
3-46 permanent form, or with or without interest coupons.
3-47 (3) "Contract for Deed" means a seller-financed
3-48 contract for the conveyance of real property under which:
3-49 (A) legal title does not pass to the purchaser
3-50 until the consideration of the contract is fully paid to the
3-51 seller; and
3-52 (B) the seller's remedy for nonpayment is
3-53 recision or forfeiture or acceleration of any remaining payments
3-54 rather than judicial or nonjudicial foreclosure.
3-55 (4) "Department" means the Texas Department of Housing
3-56 and Community Affairs.
3-57 (5) [(4)] "Director" means the executive director of
3-58 the department.
3-59 (6) [(5)] "Economically depressed or blighted area"
3-60 means an area:
3-61 (A) that is a qualified census tract as defined
3-62 by Section 143(j), Internal Revenue Code of 1986 (26 U.S.C. Section
3-63 143(j)) or has been determined by the housing finance division to
3-64 be [a qualified census tract or] an area of chronic economic
3-65 distress under Section 143 [103A], Internal Revenue Code of 1986
3-66 [1954] (26 U.S.C. Section 143 [103A]);
3-67 (B) established in a municipality that has a
3-68 substantial number of substandard, slum, deteriorated, or
3-69 deteriorating structures and that suffers from a high relative rate
4-1 of unemployment; or
4-2 (C) that has been designated as [designed and
4-3 included in] a reinvestment zone [tax increment district created]
4-4 under Chapter 311, Tax Code [695, Acts of the 66th Legislature,
4-5 Regular Session, 1979 (Article 1066d, Vernon's Texas Civil
4-6 Statutes)].
4-7 (7) [(6)] "Elderly individual" means an individual [60
4-8 years] of an age specified by the board or by the applicable
4-9 federal program [or older].
4-10 (8) [(7)] "Family of moderate income" means a family:
4-11 (A) that is determined by the board to require
4-12 assistance, taking into account:
4-13 (i) the amount of the total income
4-14 available for housing needs of the individuals and families;
4-15 (ii) the size of the family;
4-16 (iii) the cost and condition of available
4-17 housing facilities;
4-18 (iv) the ability of the individuals and
4-19 families to compete successfully in the private housing market and
4-20 to pay the amounts required by private enterprise for sanitary,
4-21 decent, and safe housing; and
4-22 (v) standards established for various
4-23 federal programs determining eligibility based on income; and
4-24 (B) that does not qualify as a family of low
4-25 income.
4-26 (9) [(8)] "Federal government" means the United States
4-27 of America and includes any corporate or other instrumentality of
4-28 the United States of America, including the Resolution Trust
4-29 Corporation.
4-30 (10) [(9)] "Federal mortgage" means a mortgage loan
4-31 for residential housing:
4-32 (A) that is made by the federal government; or
4-33 (B) for which a commitment to make has been
4-34 given by the federal government.
4-35 (11) [(10)] "Federally assisted new communities" means
4-36 federally assisted areas that receive or will receive assistance in
4-37 the form of loan guarantees under Title X of the National Housing
4-38 Act (12 U.S.C. Section 1701 et seq.), and a portion of that
4-39 federally assisted area has received grants under Section 107(a)(1)
4-40 of the Housing and Community Development Act of 1974, as amended
4-41 (42 U.S.C. Section 5301 et seq.).
4-42 (12) [(11)] "Federally insured mortgage" means a
4-43 mortgage loan for residential housing that:
4-44 (A) is insured or guaranteed by the federal
4-45 government; or
4-46 (B) the federal government has committed to
4-47 insure or guarantee.
4-48 (13) [(12)] "Housing development" means property or
4-49 work or a project, building, structure, facility, or undertaking,
4-50 whether existing, new construction, remodeling, improvement, or
4-51 rehabilitation, that meets or is designed to meet minimum property
4-52 standards required by the department and that is financed under the
4-53 provisions of this chapter for the primary purpose of providing
4-54 sanitary, decent, and safe dwelling accommodations for rent, lease,
4-55 use, or purchase by individuals and families of low and very low
4-56 income and families of moderate income in need of housing. The
4-57 term includes:
4-58 (A) buildings, structures, land, equipment,
4-59 facilities, or other real or personal properties that are
4-60 necessary, convenient, or desirable appurtenances, including
4-61 streets, water, sewers, utilities, parks, site preparation,
4-62 landscaping, stores, offices, and other nonhousing facilities, such
4-63 as administrative, community, and recreational facilities the
4-64 department determines to be necessary, convenient, or desirable
4-65 appurtenances; and
4-66 (B) single and multifamily dwellings in rural
4-67 and urban areas.
4-68 (14) [(13)] "Housing sponsor" means:
4-69 (A) an individual, including an individual or
5-1 family of low and very low income or family of moderate income,
5-2 joint venture, partnership, limited partnership, trust, firm,
5-3 corporation, or cooperative that is approved by the department as
5-4 qualified to own, construct, acquire, rehabilitate, operate,
5-5 manage, or maintain a housing development, subject to the
5-6 regulatory powers of the department and other terms and conditions
5-7 in this chapter; or
5-8 (B) in an economically depressed or blighted
5-9 area, or in a federally assisted new community located within a
5-10 home-rule municipality, the term may include an individual or
5-11 family whose income exceeds the moderate income level if at least
5-12 90 percent of the total mortgage amount available under a mortgage
5-13 revenue bond issue is designated for individuals and families of
5-14 low income or families of moderate income.
5-15 (15) [(14)] "Individuals and families of low income"
5-16 means individuals and families earning not more than 80 percent of
5-17 the area median income or applicable federal poverty line, as
5-18 determined under Section 2306.123 or Section 2306.1231.
5-19 (16) [(15)] "Individuals and families of very low
5-20 income" means individuals and families earning not more than 60
5-21 percent of the area median income or applicable federal poverty
5-22 line, as determined under Section 2306.123 or Section 2306.1231.
5-23 (17) "Individuals and families of extremely low
5-24 income" means individuals and families earning not more than 30
5-25 percent of the area median income or applicable federal poverty
5-26 line, as determined under Section 2306.123 or Section 2306.1231.
5-27 (18) [(16)] "Land development" means:
5-28 (A) acquiring land for residential housing
5-29 construction; and
5-30 (B) making, installing, or constructing
5-31 nonresidential improvements that the department determines are
5-32 necessary or desirable for a housing development to be financed by
5-33 the department, including:
5-34 (i) waterlines and water supply
5-35 installations;
5-36 (ii) sewer lines and sewage disposal
5-37 installations;
5-38 (iii) steam, gas, and electric lines and
5-39 installations; and
5-40 (iv) roads, streets, curbs, gutters, and
5-41 sidewalks, whether on or off the site.
5-42 (19) [(17)] "Local government" means a county,
5-43 municipality, special district, or any other political subdivision
5-44 of the state, a public, nonprofit housing finance corporation
5-45 created under Chapter 394, Local Government Code, or a combination
5-46 of those entities.
5-47 (20) [(18)] "Mortgage" means an [interest-bearing]
5-48 obligation, including a mortgage, mortgage deed, bond, note, deed
5-49 of trust, or other instrument, that is a lien:
5-50 (A) on real property; or
5-51 (B) on a leasehold under a lease having a
5-52 remaining term that, at the time the lien is acquired, does not
5-53 expire until after the maturity date of the [interest-bearing]
5-54 obligation secured by the lien.
5-55 (21) [(19)] "Mortgage lender" means a bank, trust
5-56 company, savings bank, mortgage company, mortgage banker, credit
5-57 union, national banking association, savings and loan association,
5-58 life insurance company, or other financial institution authorized
5-59 to transact business in this state and approved as a mortgage
5-60 lender by the department.
5-61 (22) [(20)] "Mortgage loan" means an
5-62 [interest-bearing] obligation secured by a mortgage.
5-63 (23) [(21)] "Municipality" includes only a
5-64 municipality in this state.
5-65 (24) [(22)] "Public agency" means the department or
5-66 any [an] agency, board, authority, department, commission,
5-67 political subdivision, municipal corporation, district, public
5-68 corporation, body politic, or instrumentality of this state,
5-69 including a county, municipality, housing authority,
6-1 state-supported institution of higher education, school district,
6-2 junior college, other district or authority, or other type of
6-3 governmental entity of this state.
6-4 (25) [(23)] "Real estate owned contractor" means a
6-5 person required to meet the obligations of a contract with the
6-6 department [housing finance division] for managing and marketing
6-7 foreclosed property.
6-8 (26) [(24)] "Real property" means land, including
6-9 improvements and fixtures on the land, property of any nature
6-10 appurtenant to the land or used in connection with the land, and a
6-11 legal or equitable estate, interest, or right in land, including
6-12 leasehold interests, terms for years, and a judgment, mortgage, or
6-13 other lien.
6-14 (27) [(25)] "Reserve fund" means any [the housing
6-15 finance division's] reserve fund established by the department.
6-16 (28) [(26)] "Residential housing" means a specific
6-17 work or improvement undertaken primarily to provide dwelling
6-18 accommodations, including the acquisition, construction,
6-19 reconstruction, remodeling, improvement, or rehabilitation of land
6-20 and buildings and improvements to the buildings for residential
6-21 housing and other incidental or appurtenant nonhousing facilities.
6-22 (29) [(27)] "Servicer" means a person required to meet
6-23 contractual obligations with the housing finance division or with a
6-24 mortgage lender relating to a loan financed under Subchapter J,
6-25 including:
6-26 (A) purchasing mortgage certificates backed by
6-27 mortgage loans;
6-28 (B) collecting principal and interest from the
6-29 borrower;
6-30 (C) sending principal and interest payments to
6-31 the division;
6-32 (D) preparing periodic reports;
6-33 (E) notifying the primary mortgage and pool
6-34 insurers of delinquent and foreclosed loans; and
6-35 (F) filing insurance claims on foreclosed
6-36 property.
6-37 (30) "State low income housing plan" means the
6-38 comprehensive and integrated plan for the state assessment of
6-39 housing needs and allocation of housing resources.
6-40 SECTION 6. Section 2306.007(a), Government Code, is amended
6-41 to read as follows:
6-42 (a) To establish an economically depressed or blighted area
6-43 under Section 2306.004(6)(B) [2306.004(5)(B)] or (C), the governing
6-44 body of a municipality must hold a public hearing and find that the
6-45 area:
6-46 (1) substantially impairs or arrests the sound growth
6-47 of the municipality; or
6-48 (2) is an economic or social liability and is a menace
6-49 to the public health, safety, morals, or welfare in its present
6-50 condition and use.
6-51 SECTION 7. Section 2306.021(b), Government Code, is amended
6-52 to read as follows:
6-53 (b) The department is composed of:
6-54 (1) the community affairs division;
6-55 (2) the housing finance division;
6-56 (3) the manufactured housing division; [and]
6-57 (4) the community development division; and
6-58 (5) any other division created by the director.
6-59 SECTION 8. Section 2306.032(b), Government Code, is amended
6-60 to read as follows:
6-61 (b) The board shall keep complete minutes of board meetings.
6-62 The accounts, minutes, and other records shall be maintained by
6-63 [kept at the principal office of] the department.
6-64 SECTION 9. Section 2306.033, Government Code, is amended by
6-65 amending Subsection (a) and adding Subsection (d) to read as
6-66 follows:
6-67 (a) It is a ground for removal from the board that a member:
6-68 (1) does not have at the time of appointment the
6-69 qualifications required by Section 2306.026, 2306.027, or 2306.028
7-1 for appointment to the board;
7-2 (2) does not maintain during the service on the board
7-3 the qualifications required by Section 2306.026, 2306.027, or
7-4 2306.028 for appointment to the board;
7-5 (3) violates a prohibition established by Section
7-6 2306.034 or 2306.035;
7-7 (4) cannot discharge the member's duties for a
7-8 substantial part of the term for which the member is appointed
7-9 because of illness or disability; [or]
7-10 (5) is absent from more than half of the regularly
7-11 scheduled meetings of the board that the member is eligible to
7-12 attend during a calendar year unless the absence is excused by
7-13 majority vote of the board; or
7-14 (6) engages in misconduct or unethical or criminal
7-15 behavior.
7-16 (d) If a person has knowledge that a member of the board may
7-17 have engaged in criminal behavior or misconduct, the person shall
7-18 notify the presiding officer of the board. The presiding officer
7-19 shall refer the allegation to the Travis County district attorney
7-20 for investigation.
7-21 SECTION 10. Subchapter B, Chapter 2306, Government Code, is
7-22 amended by adding Section 2306.039 to read as follows:
7-23 Sec. 2306.039. OPEN MEETINGS AND OPEN RECORDS. (a) Except
7-24 as provided by Subsection (b), the department and the Texas State
7-25 Affordable Housing Corporation are subject to Chapters 551 and 552.
7-26 (b) This section does not apply to the personal financial
7-27 information submitted by an individual or family for a loan, grant,
7-28 or other housing assistance under a program administered by the
7-29 department or the Texas State Affordable Housing Corporation or
7-30 from bonds issued by the department, except that the department and
7-31 the corporation are permitted to disclose information about any
7-32 applicant in a form that does not reveal the identity of the
7-33 individual or family for purposes of determining eligibility for
7-34 programs and in preparing reports required under this chapter.
7-35 SECTION 11. Section 2306.053(b), Government Code, is amended
7-36 to read as follows:
7-37 (b) The department may:
7-38 (1) sue and be sued, or plead and be impleaded;
7-39 (2) act for and on behalf of this state;
7-40 (3) adopt an official seal or alter it;
7-41 (4) adopt and enforce bylaws and rules;
7-42 (5) contract with the federal government, state, any
7-43 public agency, mortgage lender, person, or other entity;
7-44 (6) designate mortgage lenders to act for the
7-45 department for the origination, processing, and servicing of the
7-46 department's mortgage loans under conditions agreed to by the
7-47 parties;
7-48 (7) provide, contract, or arrange for consolidated
7-49 processing of a housing development to avoid duplication;
7-50 (8) encourage homeless individuals and individuals of
7-51 low or very low income to attend the department's educational
7-52 programs and assist those individuals in attending the programs;
7-53 (9) appoint and determine the qualifications, duties,
7-54 and tenure of its agents, counselors, and professional advisors,
7-55 including accountants, appraisers, architects, engineers, financial
7-56 consultants, housing construction and financing experts, and real
7-57 estate consultants;
7-58 (10) administer federal housing, community affairs, or
7-59 community development programs, including the low income housing
7-60 tax credit program;
7-61 (11) establish eligibility criteria for individuals
7-62 and families of low, very low, and families of moderate income to
7-63 participate in and benefit from programs administered by the
7-64 department;
7-65 (12) execute funding agreements;
7-66 (13) obtain, retain, and disseminate records and other
7-67 documents in electronic form; and
7-68 (14) [(12)] do all things necessary, convenient, or
7-69 desirable to carry out the powers expressly granted or necessarily
8-1 implied by this chapter.
8-2 SECTION 12. Subchapter D, Chapter 2306, Government Code, is
8-3 amended by adding Section 2306.0661 to read as follows:
8-4 Sec. 2306.0661. PUBLIC HEARINGS. (a) This section applies
8-5 only to state-funded housing programs, programs funded with bond
8-6 proceeds, the low income housing tax credit program, and the state
8-7 low income housing plan. Federally funded programs shall comply
8-8 with the federal public participation requirements and Chapter
8-9 2105, if applicable.
8-10 (b) The department shall encourage informed and effective
8-11 public participation in the department's programs and plans through
8-12 holding public hearings and soliciting and accepting public
8-13 comments during those hearings. In holding a public hearing, the
8-14 department shall ensure that:
8-15 (1) the location of the hearing is:
8-16 (A) in a public building or facility accessible
8-17 to the public;
8-18 (B) accessible to persons with disabilities; and
8-19 (C) reasonably accessible by public
8-20 transportation, if available;
8-21 (2) hearings are scheduled at times when working and
8-22 nonworking people can attend; and
8-23 (3) child care is provided where practical.
8-24 (c) In scheduling a public hearing, the department shall:
8-25 (1) publish notice of the time, place, and subject of
8-26 the hearing in the Texas Register and a newspaper of general
8-27 circulation in the community in which the hearing is to be held at
8-28 least seven days before the date of the hearing. Whenever
8-29 practical, the department shall publish notice of the time, place,
8-30 and subject of the hearing in the Texas Register and a newspaper of
8-31 general circulation in the community in which the hearing is to be
8-32 held at least thirty days before the date of the hearing;
8-33 (2) provide notice of the hearing to each public
8-34 library, in the community in which the hearing is to be held, for
8-35 posting in a public area of the library;
8-36 (3) provide notice of the hearing to:
8-37 (A) each member of the board;
8-38 (B) each member of the advisory committee
8-39 consulted by the department during preparation of the state low
8-40 income housing plan; and
8-41 (C) each member of the legislature;
8-42 (4) make a reasonable effort to inform interested
8-43 persons and organizations of the hearing;
8-44 (5) make information about the hearing, including, if
8-45 appropriate, the qualified allocation plan, application forms for a
8-46 low income housing tax credit, and the state low income housing
8-47 plan, available on the Internet in accordance with Section
8-48 2306.077; and
8-49 (6) provide an opportunity for persons to transmit on
8-50 the Internet written testimony or comments on a subject of a
8-51 hearing in accordance with rules adopted by the board.
8-52 SECTION 13. Section 2306.072, Government Code, is amended to
8-53 read as follows:
8-54 Sec. 2306.072. ANNUAL LOW INCOME HOUSING REPORT. (a) Not
8-55 later than March 1 [the 100th day after the last day] of each [the
8-56 fiscal] year, the director shall prepare and submit to the board an
8-57 annual report of the department's housing activities for the
8-58 preceding [fiscal] year.
8-59 (b) Not later than the 30th day after the date the board
8-60 receives the report, the board shall submit the report to the
8-61 governor, lieutenant governor, speaker of the house of
8-62 representatives, and members of any legislative oversight committee
8-63 [legislature].
8-64 (c) The report must include:
8-65 (1) a complete operating and financial statement of
8-66 the department;
8-67 (2) a comprehensive statement of the activities of the
8-68 department during the preceding [fiscal] year to address the needs
8-69 identified in the state low income housing plan prepared as
9-1 required by Section 2306.0721, including:
9-2 (A) a statistical and narrative analysis of the
9-3 department's performance in addressing the housing needs of
9-4 individuals and families of low and very low income;
9-5 (B) the ethnic and racial composition of
9-6 individuals and families applying for and receiving assistance from
9-7 each housing-related program operated by the department; and
9-8 (C) the department's progress in meeting the
9-9 goals established in the previous housing plan;
9-10 (3) an explanation of the efforts made by the
9-11 department to ensure the participation of individuals of low income
9-12 and their community-based institutions in [every aspect of]
9-13 department programs that affect them;
9-14 (4) a statement of the evidence that the department
9-15 has made an affirmative effort to ensure the involvement of
9-16 individuals of low income and their community-based institutions in
9-17 the allocation of funds and the planning process;
9-18 (5) a statistical analysis, delineated according to
9-19 each ethnic and racial group served by the department, that
9-20 indicates the progress made by the department in implementing the
9-21 state low income housing plan in each of the uniform state service
9-22 regions; [and]
9-23 (6) an analysis of fair housing opportunities in each
9-24 housing development that receives financial assistance from the
9-25 department that includes the following information for each housing
9-26 development that contains 20 or more living units:
9-27 (A) the street address and municipality or
9-28 county in which the property is located;
9-29 (B) the total number of units reported by
9-30 bedroom size;
9-31 (C) the total number of units designed for
9-32 individuals who are physically challenged or who have special needs
9-33 and the number of these individuals served annually as reported by
9-34 each housing sponsor;
9-35 (D) a statistical analysis of average rents
9-36 reported by county [region, as defined in the comprehensive housing
9-37 affordability strategy];
9-38 (E) the race or ethnic makeup of each project as
9-39 reported annually by each housing sponsor;
9-40 (F) the number of units occupied by individuals
9-41 receiving government-supported housing assistance as reported by
9-42 each housing sponsor;
9-43 (G) a statement as to whether the department has
9-44 been notified of a violation of the fair housing law that has been
9-45 filed with the United States Department of Housing and Urban
9-46 Development, the Commission on Human Rights, or the United States
9-47 Department of Justice; and
9-48 (H) a statement as to whether the development
9-49 has any instances of material noncompliance with bond indentures or
9-50 deed restrictions discovered through the normal monitoring
9-51 activities and procedures that include meeting occupancy
9-52 requirements or rent restrictions imposed by deed restriction or
9-53 financing agreements; and
9-54 (7) a report on the geographic distribution of low
9-55 income housing tax credits, the amount of unused low income housing
9-56 tax credits, and the amount of low income housing tax credits
9-57 received from the federal pool of unused funds from other states.
9-58 (d) The annual report submitted in each even-numbered year
9-59 must:
9-60 (1) include recommendations designed to strengthen and
9-61 support the Neighborhood Partnership Program in providing home
9-62 ownership opportunities to individuals and families of low and very
9-63 low income; and
9-64 (2) describe in detail actions the department has
9-65 taken to assist small municipalities and rural areas in obtaining
9-66 matching funds from public and private sources for participation in
9-67 the Neighborhood Partnership Program.
9-68 SECTION 14. Section 2306.0721, Government Code, is amended
9-69 to read as follows:
10-1 Sec. 2306.0721. LOW INCOME HOUSING PLAN. (a) Not later
10-2 than March 1 [the 100th day after the last day] of each [the
10-3 fiscal] year, the director shall prepare and submit to the board an
10-4 integrated state low income housing plan for the next year.
10-5 (b) Not later than the 30th day after the date the board
10-6 receives the plan, the board shall submit the plan to the governor,
10-7 lieutenant governor, and the speaker of the house of
10-8 representatives [legislature].
10-9 (c) The plan must include:
10-10 (1) an estimate and analysis of the housing needs of
10-11 the following populations in the state:
10-12 (A) individuals and families of moderate, low,
10-13 and very low income;
10-14 (B) individuals with special needs; and
10-15 (C) homeless individuals;
10-16 (2) a proposal to use all available housing resources
10-17 to address the housing needs of the populations described by
10-18 Subdivision (1) by establishing funding levels for all
10-19 housing-related programs;
10-20 (3) an estimate of the number of federally assisted
10-21 housing units available for individuals and families of low and
10-22 very low income and individuals with special needs in each county
10-23 [uniform state service region in the state];
10-24 (4) a description of state programs [rules and
10-25 policies] that govern the use of all available housing resources;
10-26 (5) a resource allocation plan that targets all
10-27 available housing resources to individuals and families of low and
10-28 very low income and individuals with special needs;
10-29 (6) a description of the department's efforts to
10-30 monitor and analyze the unused or underused federal resources of
10-31 other state agencies for housing-related services and services for
10-32 homeless individuals and the department's recommendations to ensure
10-33 the full use by the state of all available federal resources for
10-34 those services; [and]
10-35 (7) strategies to provide housing for individuals and
10-36 families with special needs;
10-37 (8) a description of the department's efforts to
10-38 encourage the construction of housing units that incorporate energy
10-39 efficient construction and appliances; and
10-40 (9) any other housing-related information that the
10-41 state is required to include in the one-year action plan of the
10-42 consolidated plan submitted annually to the United States
10-43 Department of Housing and Urban Development.
10-44 (d) The priorities and policies in another plan adopted by
10-45 the department must be consistent to the extent practical with the
10-46 priorities and policies established in the state low income housing
10-47 plan.
10-48 (e) To the extent consistent with federal law, the
10-49 preparation and publication of the state low income housing plan
10-50 shall be consistent with the filing and publication deadlines
10-51 required of the department for the consolidated plan.
10-52 SECTION 15. Section 2306.0722, Government Code, is amended
10-53 to read as follows:
10-54 Sec. 2306.0722. PREPARATION OF PLAN AND REPORT. (a) Before
10-55 preparing the annual low income housing report under Section
10-56 2306.072 and the state low income housing plan under Section
10-57 2306.0721, the department shall meet with representatives of groups
10-58 with an interest in low income housing, nonprofit housing
10-59 organizations, managers, owners, and developers of affordable
10-60 housing, local government officials, and residents of low income
10-61 housing. The department shall obtain the comments and suggestions
10-62 of the representatives, officials, and residents about the
10-63 prioritization and allocation of the department's resources in
10-64 regard to housing.
10-65 (b) In preparing the annual report under Section 2306.072
10-66 and the state low income housing plan under Section 2306.0721, the
10-67 director shall:
10-68 (1) coordinate local, state, and federal housing
10-69 resources, including tax exempt housing bond financing and low
11-1 income housing tax credits;
11-2 (2) set priorities for the available housing resources
11-3 to help the neediest individuals;
11-4 (3) evaluate the success of publicly supported housing
11-5 programs;
11-6 (4) survey and identify the unmet housing needs of
11-7 individuals the department is required to assist;
11-8 (5) ensure that housing programs benefit an individual
11-9 without regard to the individual's race, ethnicity, sex, or
11-10 national origin;
11-11 (6) develop housing opportunities for individuals and
11-12 families of low and very low income and individuals with special
11-13 housing needs;
11-14 (7) develop housing programs through an open, fair,
11-15 and public process;
11-16 (8) set priorities for assistance in a manner that is
11-17 appropriate and consistent with the housing needs of the
11-18 populations described by Section 2306.0721(c)(1); [and]
11-19 (9) incorporate recommendations that are consistent
11-20 with the consolidated plan [comprehensive housing affordability
11-21 strategy and performance report] submitted annually by the state to
11-22 the United States Department of Housing and Urban Development;
11-23 (10) identify the organizations and individuals
11-24 consulted by the department in preparing the annual report and
11-25 state low income housing plan and summarize and incorporate
11-26 comments and suggestions provided under Subsection (a) as the board
11-27 determines to be appropriate;
11-28 (11) develop a plan to respond to changes in federal
11-29 funding and programs for the provision of affordable housing; and
11-30 (12) use the following standardized categories to
11-31 describe the income of program applicants and beneficiaries:
11-32 (A) 0 to 30 percent of area median income
11-33 adjusted for family size;
11-34 (B) more than 30 to 60 percent of area median
11-35 income adjusted for family size;
11-36 (C) more than 60 to 80 percent of area median
11-37 income adjusted for family size;
11-38 (D) more than 80 to 115 percent of area median
11-39 income adjusted for family size; or
11-40 (E) more than 115 percent of area median income
11-41 adjusted for family size.
11-42 SECTION 16. Section 2306.0723, Government Code, is amended
11-43 to read as follows:
11-44 Sec. 2306.0723. PUBLIC PARTICIPATION REQUIREMENTS
11-45 [HEARINGS]. (a) The department shall hold [a] public hearings
11-46 [hearing] on [the annual report and] the annual state low income
11-47 housing plan and report before the director submits the report and
11-48 the plan to the board. Public hearings shall be held in Dallas or
11-49 Fort Worth, El Paso, Houston, San Antonio, and at least three
11-50 additional municipalities selected by the department to represent
11-51 geographically diverse communities. The department shall provide
11-52 notice of the public hearings as required by Section 2306.0661,
11-53 except that the department must publish notice of both hearings not
11-54 later than the 30th day before the date of the first public
11-55 hearing. The published notice must include a summary of the report
11-56 and plan. The department shall accept comments on the report and
11-57 plan at the public hearings and for at least 30 days after the date
11-58 of the publication of the notice of the hearings.
11-59 (b) In addition to any other necessary topics relating to
11-60 the report and the plan, each public hearing required by Subsection
11-61 (a) must address:
11-62 (1) infrastructure needs;
11-63 (2) home ownership programs;
11-64 (3) rental housing programs;
11-65 (4) housing repair programs; and
11-66 (5) the concerns of individuals with special needs, as
11-67 defined by Section 2306.511.
11-68 (c) The board shall hold a public hearing on the state low
11-69 income housing report and plan before the board submits the report
12-1 and the plan to the governor, lieutenant governor, speaker of the
12-2 house of representatives, and members of the legislature.
12-3 (d) [(c)] The board shall include with the report and the
12-4 plan the board submits to the governor, lieutenant governor,
12-5 speaker of the house of representatives, members of the [and]
12-6 legislature, and members of the advisory board formed by the
12-7 department to advise on the consolidated plan a written summary
12-8 [report] of public comments on the report and the plan.
12-9 SECTION 17. Section 2306.076(a), Government Code, is amended
12-10 to read as follows:
12-11 (a) The board may purchase from department funds liability
12-12 insurance for the director, [and] board members, [and] officers,
12-13 and employees of the department.
12-14 SECTION 18. Subchapter D, Chapter 2306, Government Code, is
12-15 amended by adding Section 2306.077 to read as follows:
12-16 Sec. 2306.077. INTERNET AVAILABILITY. (a) In this section,
12-17 "Internet" means the largest, nonproprietary, nonprofit,
12-18 cooperative, public computer network, popularly known as the
12-19 Internet.
12-20 (b) The department, to the extent it considers it to be
12-21 feasible and appropriate, shall make information on the
12-22 department's programs, public hearings, and scheduled public
12-23 meetings available to the public on the Internet.
12-24 (c) The access to information allowed by this section is in
12-25 addition to the public's free access to the information through
12-26 other electronic or print distribution of the information and does
12-27 not alter, diminish, or relinquish any copyright or other
12-28 proprietary interest or entitlement of this state or a private
12-29 entity under contract with this state.
12-30 SECTION 19. The heading of Subchapter E, Chapter 2306,
12-31 Government Code, is amended to read as follows:
12-32 SUBCHAPTER E. COMMUNITY AFFAIRS AND COMMUNITY
12-33 DEVELOPMENT PROGRAMS
12-34 SECTION 20. Subchapter E, Chapter 2306, Government Code, is
12-35 amended by adding Section 2306.094 to read as follows:
12-36 Sec. 2306.094. SERVICES FOR THE HOMELESS. The department
12-37 shall administer the state's allocation of federal funds provided
12-38 under the Emergency Shelter Grants Program (42 U.S.C. Section 11371
12-39 et seq.), as amended, or its successor program, and any other
12-40 federal funds provided for the benefit of homeless individuals and
12-41 families.
12-42 SECTION 21. Section 2306.097, Government Code, is amended to
12-43 read as follows:
12-44 Sec. 2306.097. ENERGY SERVICES PROGRAM FOR LOW-INCOME
12-45 INDIVIDUALS. [(a)] The Energy Services Program for Low-Income
12-46 Individuals [is in the community affairs division.]
12-47 [(b) The program] shall operate in conjunction with the
12-48 community services block grant program and has jurisdiction and
12-49 responsibility for administration of the following elements of the
12-50 State Low-Income Energy Assistance Program, from whatever sources
12-51 funded:
12-52 (1) the Energy Crisis Intervention Program;
12-53 (2) the weatherization program; and
12-54 (3) the Low-Income Home Energy Assistance Program.
12-55 SECTION 22. Section 2306.099, Government Code, is amended to
12-56 read as follows:
12-57 Sec. 2306.099. TRANSFER OF FEDERAL FUNDS. (a) The
12-58 department may enter into an interagency agreement with the Texas
12-59 Department of Commerce to reimburse the Texas Department of
12-60 Commerce for providing on behalf of the department marketing, [and]
12-61 underwriting, and any other services on the portion of the federal
12-62 community development block grant funds allocated by the
12-63 department for economic development activities.
12-64 (b) The department shall allocate not more than 20 percent
12-65 of the federal funds received by the department to the Texas
12-66 Department of Commerce to be used for economic development
12-67 activities.
12-68 (c) The activities undertaken by the Texas Department of
12-69 Commerce under this section must be monitored [approved] by the
13-1 department.
13-2 SECTION 23. Section 2306.111, Government Code, is amended to
13-3 read as follows:
13-4 Sec. 2306.111. HOUSING FUNDS. (a) The department, through
13-5 the housing finance [any] division, shall administer all [the]
13-6 federal housing funds provided to the state under the
13-7 Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
13-8 Section 12704 et seq.) or any other affordable housing program.
13-9 (b) The housing finance division shall adopt a goal to apply
13-10 an aggregate [a] minimum of 25 percent of the division's total
13-11 housing funds toward housing assistance for individuals and
13-12 families of extremely low and very low income.
13-13 SECTION 24. Section 2306.142, Government Code, is amended to
13-14 read as follows:
13-15 Sec. 2306.142. AUTHORIZATION OF BONDS. In its discretion,
13-16 the board shall authorize all bonds issued by the department
13-17 [housing finance division].
13-18 SECTION 25. Section 2306.171, Government Code, is amended to
13-19 read as follows:
13-20 Sec. 2306.171. GENERAL DUTIES OF DEPARTMENT RELATING TO
13-21 PURPOSES OF HOUSING FINANCE DIVISION. The department shall:
13-22 (1) develop policies and programs designed to increase
13-23 the number of individuals and families of extremely low, [and] very
13-24 low, and low income and families of moderate income that
13-25 participate in the housing finance division's programs;
13-26 (2) work with municipalities, counties, public
13-27 agencies, housing sponsors, and nonprofit and for profit
13-28 corporations to provide:
13-29 (A) information on division programs; and
13-30 (B) technical assistance to municipalities,
13-31 counties, and nonprofit corporations;
13-32 (3) encourage private for profit and nonprofit
13-33 corporations and state organizations to match the division's funds
13-34 to assist in providing affordable housing to individuals and
13-35 families of low and very low income and families of moderate
13-36 income;
13-37 (4) provide matching funds to municipalities,
13-38 counties, public agencies, housing sponsors, and nonprofit
13-39 developers who qualify under the division's programs; and
13-40 (5) administer the state's allocation of federal funds
13-41 provided under the rental rehabilitation grant program authorized
13-42 by Section 17, Title I, of the United States Housing Act of 1937
13-43 (42 U.S.C. Section 1437o).
13-44 SECTION 26. Section 2306.177, Government Code, is amended to
13-45 read as follows:
13-46 Sec. 2306.177. HEARINGS. The department may:
13-47 (1) conduct hearings; and
13-48 (2) take testimony and proof, under oath, at public
13-49 hearings, on matters necessary to carry out the department's
13-50 [housing finance division's] purposes.
13-51 SECTION 27. Subchapter H, Chapter 2306, Government Code, is
13-52 amended by adding Section 2306.184 to read as follows:
13-53 Sec. 2306.184. DISCLOSURE OF FEES. (a) This section does
13-54 not apply to an application submitted by an individual or family
13-55 for a loan, grant, or other assistance under a program administered
13-56 by the department or the Texas State Affordable Housing Corporation
13-57 or from bonds issued by the department.
13-58 (b) An application for a loan, grant, or other assistance
13-59 for an eligible affordable housing project or activity under a
13-60 program administered by the department or the Texas State
13-61 Affordable Housing Corporation or from bonds issued by the
13-62 department must include:
13-63 (1) the name of each person expected to charge the
13-64 applicant a project development fee or project operation fee;
13-65 (2) the nature and amount of each project development
13-66 fee and project operation fee the applicant is expected to pay; and
13-67 (3) any interlocking interests of persons listed under
13-68 Subdivision (1).
13-69 (c) Not later than the 30th day after the date the term of a
14-1 project for which an application was granted for a grant, loan, or
14-2 other assistance described by Subsection (b) expires, the recipient
14-3 must provide to the department a statement that includes:
14-4 (1) the name of each person to whom the recipient paid
14-5 a project development fee or project operation fee during the term
14-6 of the project;
14-7 (2) the nature and amount of each project development
14-8 fee and project operation fee paid by the recipient during the term
14-9 of the project; and
14-10 (3) any interlocking interests of persons listed under
14-11 Subdivision (1).
14-12 (d) The department shall adopt rules governing penalties and
14-13 sanctions under this section for a person who:
14-14 (1) does not provide the information required by this
14-15 section; or
14-16 (2) knowingly discloses false information.
14-17 (e) In this section:
14-18 (1) "Project development fee" means a fee charged in
14-19 connection with the planning, design, or development of an
14-20 affordable housing project, including an application fee, tax
14-21 credit consulting fee, development consulting fee, mortgage
14-22 brokerage fee, and financial advising fee.
14-23 (2) "Project operation fee" means a fee charged in
14-24 connection with the operation, construction, management, or
14-25 administration of an affordable housing project, including a
14-26 management fee, asset management fee, incentive management fee,
14-27 general partner fee, construction supervision fee, and construction
14-28 management fee.
14-29 SECTION 28. Section 2306.201(b), Government Code, is amended
14-30 to read as follows:
14-31 (b) The fund consists of:
14-32 (1) appropriations or transfers made to the fund;
14-33 (2) unencumbered fund balances; [and]
14-34 (3) public or private gifts or grants;
14-35 (4) investment income; and
14-36 (5) funds from any other source.
14-37 SECTION 29. Section 2306.202, Government Code, is amended to
14-38 read as follows:
14-39 Sec. 2306.202. USE OF HOUSING TRUST FUND. (a) The
14-40 department, through the housing finance division, shall use the
14-41 housing trust fund to provide loans, grants, or other comparable
14-42 forms of assistance to local units of government, public housing
14-43 authorities, nonprofit organizations, and income-eligible
14-44 individuals, families, and households to finance, acquire,
14-45 rehabilitate, and develop decent, safe, and sanitary housing. In
14-46 each biennium the first $2.6 million available through the housing
14-47 trust fund for loans, grants, or other comparable forms of
14-48 assistance shall be set aside and made available exclusively for
14-49 local units of government, public housing authorities, and
14-50 nonprofit organizations. Any additional funds may also be made
14-51 available to for-profit organizations so long as at least 45
14-52 percent of available funds in excess of the first $2.6 million
14-53 shall be made available to nonprofit organizations for the purpose
14-54 of acquiring, rehabilitating, and developing decent, safe, and
14-55 sanitary housing. The remaining portion shall be competed for by
14-56 nonprofit organizations, for-profit organizations, and other
14-57 eligible entities. Notwithstanding any other section of this
14-58 chapter, the department may also use the fund to acquire property
14-59 to endow the fund.
14-60 (b) Use of the fund is limited to providing:
14-61 (1) assistance for individuals and families of low and
14-62 very low income; [and]
14-63 (2) technical assistance and capacity building to
14-64 nonprofit organizations engaged in developing housing for
14-65 individuals and families of low and very low income; and
14-66 (3) security for repayment of revenue bonds issued to
14-67 finance housing for individuals and families of low and very low
14-68 income.
14-69 SECTION 30. Section 2306.205, Government Code, is amended by
15-1 adding Subsection (f) to read as follows:
15-2 (f) In addition to the money transferred into the housing
15-3 trust fund under this section, and subject to Subsection (e), the
15-4 department shall transfer into the fund the amount of any
15-5 origination fee, asset oversight fee, and servicing fee the
15-6 department or the Texas State Affordable Housing Corporation
15-7 receives in relation to the administration of its 501(c)(3) bond
15-8 program established pursuant to Section 2306.358 that exceeds the
15-9 amount needed by the department or the Texas State Affordable
15-10 Housing Corporation to pay its operating and overhead costs and
15-11 fund reserves, including an insurance reserve or credit enhancement
15-12 reserve established by the board in administering the program.
15-13 SECTION 31. Section 2306.207(a), Government Code, is amended
15-14 to read as follows:
15-15 (a) The department [housing finance division] may create a
15-16 reserve fund with the comptroller [state treasurer] out of:
15-17 (1) proceeds from the sale of the department's
15-18 [division's] bonds; or
15-19 (2) other resources.
15-20 SECTION 32. Section 2306.232, Government Code, is amended to
15-21 read as follows:
15-22 Sec. 2306.232. TEXAS HOUSING AGENCY LOAN OR GUARANTEE. A
15-23 loan or guarantee made by the Texas Housing Agency becomes a loan
15-24 or guarantee of the department [housing finance division].
15-25 SECTION 33. Section 2306.251, Government Code, is amended as
15-26 follows:
15-27 Sec. 2306.251. PROPERTY OWNERSHIP PROGRAM. (a) While it is
15-28 not the intent of the legislature that the department compete with
15-29 the private sector by becoming a long-term owner of real property
15-30 merely for the purpose of owning, managing, and operating tenant
15-31 properties, the [The] department may acquire, [and] own,
15-32 reconstruct, rehabilitate, manage, or operate real property:
15-33 (1) on an interim basis for sale or rental to:
15-34 (A) [(1)] individuals and families of low and
15-35 very low income and families of moderate income; and
15-36 (B) [(2)] nonprofit housing organizations and
15-37 other housing organizations to serve the needs of individuals and
15-38 families of low and very low income and families of moderate
15-39 income;
15-40 (2) for a period of time not to exceed 10 years for
15-41 the purposes of:
15-42 (A) preserving publicly financed or subsidized
15-43 housing; or
15-44 (B) participating in a risk-sharing program
15-45 entered into with the United States Department of Housing and Urban
15-46 Development, any other insurer or guarantor of any United States
15-47 Department of Housing and Urban Development-related indebtedness, a
15-48 government sponsored enterprise, a housing finance agency or
15-49 corporation, or a public housing authority.
15-50 (b) [Property acquired by the department must qualify for
15-51 home mortgage insurance after rehabilitation.]
15-52 [(c)] The department may use money from the housing trust
15-53 fund, unencumbered fund balances, fees received by the housing
15-54 finance division, proceeds from the sale or rental of real
15-55 property, distribution of earnings under Section 2306.557, or
15-56 appropriations, allocations, grants, or gifts from any public or
15-57 private source to purchase property under this section.
15-58 (c) If the department uses the housing trust fund to finance
15-59 real property acquisitions, it [(d) The housing finance division]
15-60 may not use more than 10 percent of the yearly balance of the
15-61 [housing trust] fund to acquire the real property.
15-62 (d) [(e)] If the department acquires property under this
15-63 section, the department shall submit an annual report to the board
15-64 that includes an analysis of [have an independent audit conducted
15-65 annually to analyze] the property ownership program's:
15-66 (1) financial stability;
15-67 (2) cost-effectiveness; and
15-68 (3) effectiveness in serving individuals and families
15-69 of low and very low income and families of moderate income.
16-1 SECTION 34. Section 2306.252, Government Code, is amended to
16-2 read as follows:
16-3 Sec. 2306.252. [LOW AND VERY LOW INCOME] HOUSING RESOURCE
16-4 CENTER. (a) The board shall establish a [low and very low income]
16-5 housing resource center in the housing finance division.
16-6 (b) The center shall:
16-7 (1) provide educational material to housing advocates,
16-8 housing sponsors, borrowers, and tenants;
16-9 (2) provide technical assistance to nonprofit housing
16-10 sponsors; and
16-11 (3) [focus on marketing loans and other programs of
16-12 the housing finance division to individuals and families of low and
16-13 very low income; and]
16-14 [(4)] assist [lenders] in the development of housing
16-15 policy, including the annual state low income housing plan and
16-16 report and the consolidated plan [marketing loans to individuals
16-17 and families of low and very low income].
16-18 (c) The housing resource center is intended to assist
16-19 individuals, local organizations, and local governments in
16-20 providing for the housing needs of individuals and families in
16-21 their communities by providing information available to the center
16-22 to housing contractors, nonprofit housing sponsors, community-based
16-23 organizations, and local governments on:
16-24 (1) local housing needs;
16-25 (2) housing programs;
16-26 (3) available funding sources; and
16-27 (4) programs that affect the creation, improvement, or
16-28 preservation of housing affordable to individuals and families of
16-29 low and very low income.
16-30 SECTION 35. Section 2306.267, Government Code, is amended to
16-31 read as follows:
16-32 Sec. 2306.267. COMPLIANCE WITH APPLICABLE LAWS, RULES, AND
16-33 CONTRACT TERMS. The department may order a housing sponsor to
16-34 perform or refrain from performing certain acts in order to comply
16-35 with the law, department [housing finance division] rules, or terms
16-36 of a contract or agreement to which the housing sponsor is a party.
16-37 SECTION 36. Section 2306.270, Government Code, is amended to
16-38 read as follows:
16-39 Sec. 2306.270. REGULATION OF RETIREMENT OF CAPITAL
16-40 INVESTMENT OR REDEMPTION OF STOCK. The department shall regulate
16-41 the retirement of a capital investment or the redemption of stock
16-42 of a limited profit housing sponsor if the retirement or
16-43 redemption, when added to a dividend or other distribution, exceeds
16-44 in any one fiscal year the permitted percentage, as allowed by the
16-45 department [housing finance division's rules], of the original face
16-46 amount of the limited profit housing sponsor's investment or equity
16-47 in a housing development.
16-48 SECTION 37. Section 2306.291(a), Government Code, is amended
16-49 to read as follows:
16-50 (a) The department may purchase and take assignments from
16-51 mortgage lenders or the federal government of notes and other
16-52 obligations, including contracts for deed and mortgages, evidencing
16-53 loans or interest in loans for the construction, remodeling,
16-54 improvement, [or] rehabilitation, purchase, leasing, or refinancing
16-55 of housing developments for individuals and families of low and
16-56 very low income and families of moderate income.
16-57 SECTION 38. Section 2306.351(a), Government Code, is amended
16-58 to read as follows:
16-59 (a) The department may issue bonds under this chapter,
16-60 including qualified 501(c)(3) bonds under Section 145, Internal
16-61 Revenue Code of 1986 (26 U.S.C. Section 145), and may:
16-62 (1) provide for and secure payment of the bonds;
16-63 (2) provide for the rights of the holders of the
16-64 bonds, as permitted by this chapter and the Texas Constitution; and
16-65 (3) purchase, hold, cancel, resell, or otherwise
16-66 dispose of its bonds, subject to restrictions in a resolution
16-67 authorizing issuance of its bonds.
16-68 SECTION 39. Section 2306.357, Government Code, is amended to
16-69 read as follows:
17-1 Sec. 2306.357. BONDS ISSUED BY TEXAS HOUSING AGENCY. A
17-2 general obligation or revenue bond issued by the Texas Housing
17-3 Agency becomes a general obligation or revenue bond of the
17-4 department [housing finance division].
17-5 SECTION 40. Subchapter P, Chapter 2306, Government Code, is
17-6 amended by adding Section 2306.358 to read as follows:
17-7 Sec. 2306.358. ISSUANCE OF QUALIFIED 501(c)(3) BONDS. (a)
17-8 Of the total qualified 501(c)(3) bonds issued under Section 145 of
17-9 the Internal Revenue Code of 1986 (26 U.S.C. Section 145) in each
17-10 fiscal year, it is the express intent of the legislature that the
17-11 department shall allocate qualified 501(c)(3) bonding authority as
17-12 follows:
17-13 (1) at least 50 percent of the total annual issuance
17-14 amount authorized through the memorandum of understanding provided
17-15 for in Subsection (b) of this section is reserved for the purposes
17-16 of new construction or acquisition with substantial rehabilitation;
17-17 (2) not more than 25 percent of the total annual
17-18 issuance amount authorized through the memorandum of understanding
17-19 provided for in Subsection (b) of this section may be used for
17-20 projects in any one metropolitan area; and
17-21 (3) at least 15 percent of the annual issuance amount
17-22 authorized through the memorandum of understanding provided for in
17-23 Subsection (b) of this section is reserved for projects in rural
17-24 areas.
17-25 (a-1) For the purposes of Subsection (a):
17-26 (1) "Rural area" and "metropolitan area" shall be
17-27 defined through the memorandum of understanding provided for in
17-28 Subsection (b) of this section.
17-29 (2) "Substantial rehabilitation" means rehabilitation
17-30 of a project with a minimum of $5,000 of rehabilitation cost per
17-31 unit.
17-32 (b) A qualified 501(c)(3) bond may not be issued unless
17-33 approved by the Bond Review Board. In addition, the Bond Review
17-34 Board shall enter into a memorandum of understanding with the
17-35 department specifying the amount of bonds to be issued in each
17-36 fiscal year. The Bond Review Board may not approve a proposal to
17-37 issue qualified 501(c)(3) bonds unless they meet the requirements
17-38 of this section, including the memorandum of understanding, and all
17-39 other laws that may apply.
17-40 (c) In addition to the requirements of Section 145 of the
17-41 Internal Revenue Code of 1986 (26 U.S.C. Section 145), a qualified
17-42 501(c)(3) organization must:
17-43 (1) demonstrate to the department that the project is
17-44 carefully and conservatively underwritten to:
17-45 (A) ensure that the project is well run, well
17-46 maintained, and financially viable; and
17-47 (B) minimize the risk of the organization's
17-48 default;
17-49 (2) ensure that at least 60 percent of the housing to
17-50 be provided under the project is affordable housing provided to
17-51 individuals and families of low and very low income and:
17-52 (A) at least 40 percent of the units in a
17-53 multifamily development are affordable to individuals and families
17-54 with incomes at or below 60 percent of the median family income,
17-55 adjusted for family size; or
17-56 (B) at least 20 percent of the units in a
17-57 multifamily development are affordable to individuals and families
17-58 with incomes at or below 50 percent of the median family income,
17-59 adjusted for family size; and
17-60 (3) enter into an agreement with the department in
17-61 which the 501(c)(3) organization:
17-62 (A) agrees during the term of the agreement to
17-63 reserve at least 60 percent of the housing to be provided under the
17-64 project for individuals and families of low and very low income;
17-65 (B) ensures that the reserved housing will
17-66 remain affordable to individuals and families of low and very low
17-67 income during the term of the agreement;
17-68 (C) agrees to not discriminate against a tenant
17-69 applicant solely because the applicant receives public rental
18-1 assistance payments, except if at least 15 percent of the housing
18-2 units provided under the project are occupied by tenants who
18-3 receive public rental assistance payments; and
18-4 (D) agrees to restrict the rents charged on
18-5 those units reserved for individuals and families of low and very
18-6 low income at 30 percent of the area median income adjusted for
18-7 family size and utility allowance, unless this requirement is
18-8 waived or modified on a case-by-case basis by the board, and
18-9 approved by the Bond Review Board, if both boards determine that
18-10 the waiver or modification is necessary for an area of the state
18-11 because the area's median income would prevent the construction of
18-12 new affordable projects.
18-13 (d) Subsection (c)(3)(C) does not prohibit an organization
18-14 from requiring a tenant applicant who receives public assistance to
18-15 meet the organization's standard criteria for occupancy, including
18-16 such criteria as satisfactory creditworthiness and lack of criminal
18-17 history.
18-18 (e) The agreement provided for in Subsection (c)(3) may
18-19 provide for the lease or sale of the project to a nonprofit
18-20 corporation approved by the department subject to the conditions
18-21 specified in Subsection (c).
18-22 (f) Neither the department nor the Texas State Affordable
18-23 Housing Corporation may use state or federal money to provide for
18-24 credit enhancement of a bond issued under this section unless the
18-25 credit enhancement would facilitate the issuance of bonds for the
18-26 purpose of financing the creation or preservation of affordable
18-27 housing by 501(c)(3) nonprofit entities.
18-28 (g) In lieu of complying with the set-aside requirements
18-29 specified in Subsection (c)(2), a qualified 501(c)(3) organization
18-30 may comply with such other set-asides or restrictions as are
18-31 approved by the Internal Revenue Service as a basis for the
18-32 determination letter addressed to the qualified 501(c)(3)
18-33 organization.
18-34 (h) For purposes of this section, "rural area" and
18-35 "metropolitan area" shall be defined through the memorandum of
18-36 understanding provided for in Subsection (b) of this section.
18-37 SECTION 41. Section 2306.375, Government Code, is amended to
18-38 read as follows:
18-39 Sec. 2306.375. PERSONAL LIABILITY OF BOARD MEMBER OR
18-40 DIRECTOR. A member of the board or the director is not liable
18-41 personally for bonds issued or contracts executed by the department
18-42 or for any other action taken in accordance with the powers and
18-43 duties authorized by this chapter [housing finance division].
18-44 SECTION 42. Section 2306.411(a), Government Code, is amended
18-45 to read as follows:
18-46 (a) In addition to other security for the department's bonds
18-47 authorized by this chapter, payment of the principal and interest
18-48 and redemption premium, if any, on the department's bonds may be
18-49 secured by a first or subordinate lien on and pledge of all or part
18-50 of:
18-51 (1) the department's assets and real, personal, or
18-52 mixed property, including:
18-53 (A) mortgages or other obligations securing the
18-54 assets of property;
18-55 (B) investments; and
18-56 (C) trust agreements or trust indentures
18-57 administered by one or more corporate trustees as allowed by the
18-58 board; and
18-59 (2) the reserves or funds of the department [housing
18-60 finance division].
18-61 SECTION 43. Section 2306.412(a), Government Code, is amended
18-62 to read as follows:
18-63 (a) A lien on or pledge of revenues, income, assets,
18-64 reserves, funds, or other resources of the department [housing
18-65 finance division], as authorized by this chapter, is valid and
18-66 binding from the time of payment for and delivery of the bonds
18-67 authorized by the board resolution creating or confirming the lien
18-68 or pledge.
18-69 SECTION 44. Section 2306.491, Government Code, is amended to
19-1 read as follows:
19-2 Sec. 2306.491. BONDS NEGOTIABLE INSTRUMENTS.
19-3 Notwithstanding any other statute, a bond and interest coupon
19-4 issued and delivered by the department [housing finance division]
19-5 is a negotiable instrument under the Uniform Commercial Code,
19-6 except that the bond may be registered or subject to registration
19-7 under this chapter.
19-8 SECTION 45. Subchapter Y, Chapter 2306, Government Code, as
19-9 added by Chapter 76, Acts of the 74th Legislature, Regular Session,
19-10 1995, is amended to read as follows:
19-11 SUBCHAPTER Y. TEXAS STATE AFFORDABLE HOUSING CORPORATION
19-12 Sec. 2306.551. DEFINITION. In this subchapter,
19-13 "corporation" means the Texas State Affordable Housing Corporation.
19-14 Sec. 2306.552. CREATION. (a) The existence of the Texas
19-15 State Affordable Housing Corporation, or any similarly named
19-16 corporation, begins on the date that the secretary of state issues
19-17 the certificate of incorporation.
19-18 (b) The charter of the corporation must establish the
19-19 corporation as nonprofit and specifically dedicate the
19-20 corporation's activities to the public purpose authorized by this
19-21 subchapter [benefit of the department].
19-22 (c) The creation of the corporation does not limit or impair
19-23 the rights, powers, and duties of the department under this
19-24 chapter.
19-25 Sec. 2306.553. PURPOSES. (a) The public purpose of the
19-26 corporation is to perform activities and services that the
19-27 corporation's board of directors determines will promote the public
19-28 health, safety, and welfare through the provision of adequate,
19-29 safe, and sanitary housing for individuals and families of low and
19-30 very low income and families of moderate income. The activities
19-31 and services shall include engaging in mortgage banking activities
19-32 and lending transactions and acquiring, holding, selling, or
19-33 leasing real or personal property [corporation shall carry out the
19-34 public purposes of this chapter on behalf of the state].
19-35 (b) The corporation's primary public purpose is to
19-36 facilitate the provision of housing and the making of affordable
19-37 loans to individuals and families of low and very low income and
19-38 families of moderate income. The corporation may make loans for
19-39 single family homes only to individuals and families of low and
19-40 very low income and families of moderate income. The corporation
19-41 may make loans for multifamily developments if:
19-42 (1) at least 40 percent of the units in a multifamily
19-43 development are affordable to individuals and families with incomes
19-44 at or below 60 percent of the median family income, adjusted for
19-45 family size; or
19-46 (2) at least 20 percent of the units in a multifamily
19-47 development are affordable to individuals and families with incomes
19-48 at or below 50 percent of the median family income, adjusted for
19-49 family size [corporation may engage only in the performance of
19-50 charitable functions].
19-51 (c) To the extent reasonably practicable, the corporation
19-52 shall use the services of banks, community banks, savings banks,
19-53 thrifts, savings and loan associations, private mortgage companies,
19-54 nonprofit organizations, and other lenders for the origination of
19-55 all loans contemplated by this subchapter and assist the lenders in
19-56 providing credit to individuals and families of low and very low
19-57 income and families of moderate income.
19-58 Sec. 2306.554. BOARD OF DIRECTORS AND OFFICERS.
19-59 (a) The [members of the board serve as the]
19-60 board of directors of the corporation consists of six members as
19-61 follows:
19-62 (1) the presiding officer of the board of directors of
19-63 the department;
19-64 (2) the presiding officer of the programs committee of
19-65 the board of directors of the department; and
19-66 (3) four members of the board of directors of the
19-67 corporation shall be appointed by the governor and shall represent
19-68 any of the following areas:
19-69 (A) state or federal savings banks or savings
20-1 and loan associations;
20-2 (B) community banks with assets of $200 million
20-3 or less;
20-4 (C) large metropolitan banks with assets of more
20-5 than $1 billion;
20-6 (D) asset management companies;
20-7 (E) mortgage servicing companies;
20-8 (F) builders;
20-9 (G) real estate developers;
20-10 (H) real estate brokers;
20-11 (I) community or economic development
20-12 organizations;
20-13 (J) private mortgage companies;
20-14 (K) nonprofit housing development companies;
20-15 (L) attorneys;
20-16 (M) investment bankers;
20-17 (N) underwriters;
20-18 (O) private mortgage insurance companies;
20-19 (P) appraisers;
20-20 (Q) property management companies;
20-21 (R) financial advisors;
20-22 (S) nonprofit foundations;
20-23 (T) financial advisors; or
20-24 (U) any other area of expertise that the
20-25 governor finds necessary for the successful operation of the
20-26 corporation.
20-27 (b) The governor shall appoint a presiding officer from the
20-28 members who are not also serving as members of the board of
20-29 directors of the department.
20-30 (c) A member of the corporation's board of directors is not
20-31 entitled to compensation, except for the members who are also
20-32 members of the department's board of directors, but is entitled to
20-33 reimbursement of travel expenses incurred by the member while
20-34 conducting the business of the board, as provided by the General
20-35 Appropriations Act.
20-36 (d) The director of the department shall serve ex officio as
20-37 president of the corporation. The president is not entitled to
20-38 compensation, unless the president is not also the executive
20-39 director of the department, but is entitled to reimbursement from
20-40 the corporation of travel expenses incurred by the member while
20-41 conducting the business of the board, as provided by the General
20-42 Appropriations Act. The director of the department shall serve as
20-43 president of the corporation only if the director has experience in
20-44 the field of mortgage banking or residential lending as
20-45 demonstrated by:
20-46 (1) employment in one or more middle or upper level
20-47 management positions for at least two years with a mortgage bank,
20-48 commercial bank, thrift, savings and loan association, private
20-49 mortgage company, mortgage servicing entity, or other financial
20-50 institution; or
20-51 (2) employment in a position of providing legal or
20-52 consulting services related to mortgage banking or residential
20-53 lending to any one of the type of entities listed in Subsection
20-54 (d)(1) for at least five years.
20-55 (e) If the director does not satisfy the requirements of
20-56 Subsection (d)(1) or (2), the corporation shall employ, for
20-57 compensation to be determined by the corporation's board of
20-58 directors, an individual that satisfies the requirements of
20-59 Subsection (d)(1) or (2) to serve as president of the corporation.
20-60 (f) The corporation may purchase, with corporation funds,
20-61 liability insurance for each of the members of the corporation's
20-62 board of directors, officers, and other employees of the
20-63 corporation in an amount that the corporation's board of directors
20-64 considers reasonably necessary to:
20-65 (1) insure against foreseeable liabilities; and
20-66 (2) provide for all costs of defending against those
20-67 liabilities, including, without limitation, court costs and
20-68 attorney's fees.
20-69 Sec. 2306.555. POWERS. (a) The corporation has the powers
21-1 [and is subject to the limitations] provided for the department
21-2 under this chapter.
21-3 (b) In addition to the powers granted by Subsection (a), the
21-4 corporation has all rights and powers necessary to accomplish its
21-5 public purpose, including the powers to:
21-6 (1) purchase, service, sell, lend on the security of,
21-7 or otherwise transact in:
21-8 (A) mortgages, including federal mortgages and
21-9 federally insured mortgages;
21-10 (B) mortgage loans;
21-11 (C) deeds of trust; and
21-12 (D) loans or other advances of credit secured by
21-13 liens against manufactured housing;
21-14 (2) guarantee or insure timely payment of mortgage
21-15 loans and loans or other advances of credit secured by liens
21-16 against manufactured housing, provided that the corporation's
21-17 liability on that guaranty or insurance is limited to the assets of
21-18 a guaranty fund or self-insurance fund established and maintained
21-19 by the corporation;
21-20 (3) make mortgage loans and loans or other advances of
21-21 credit secured by liens against manufactured housing to individuals
21-22 and families of low to moderate income;
21-23 (4) make mortgage loans to provide temporary or
21-24 permanent financing or refinancing for housing or land
21-25 developments, including refunding outstanding obligations,
21-26 mortgages, or advances issued for those purposes;
21-27 (5) borrow, give security, pay interest or other
21-28 return, or issue bonds or other obligations, including notes,
21-29 debentures, or mortgage-backed securities, provided that each bond
21-30 or other obligation issued by the corporation must contain a
21-31 statement that the state is not obligated to pay the principal of
21-32 or any premium or interest on the bond or other obligation and that
21-33 the full faith and credit and the taxing power of the state are not
21-34 pledged, given, or loaned to the payment;
21-35 (6) acquire, hold, invest, use, pledge, reserve, and
21-36 dispose of its assets, revenues, income, receipts, funds, and money
21-37 from every source and to select one or more depositories, inside or
21-38 outside the state, subject to the terms of any resolution,
21-39 indenture, or other contract under which any bonds or other
21-40 obligations are issued or any guaranty or insurance is provided;
21-41 (7) establish, charge, and collect fees, charges, and
21-42 penalties in connection with the programs, services, and activities
21-43 of the corporation;
21-44 (8) procure insurance and pay premiums on insurance of
21-45 any type, in amounts, and from insurers as the corporation's board
21-46 of directors considers necessary and advisable to further the
21-47 corporation's public purpose, including, subject to Section
21-48 2306.554(f), liability insurance for the members of the
21-49 corporation's board of directors and the officers and other
21-50 employees of the corporation;
21-51 (9) make, enter into, and enforce contracts,
21-52 agreements, leases, indentures, mortgages, deeds, deeds of trust,
21-53 security agreements, pledge agreements, credit agreements, and
21-54 other instruments with any person, including a mortgage lender,
21-55 servicer, housing sponsor, the federal government, or any public
21-56 agency, on terms the corporation determines may be acceptable;
21-57 (10) own, rent, lease, or otherwise acquire, accept,
21-58 or hold real, personal, or mixed property, or any interest in
21-59 property, by purchase, exchange, gift, assignment, transfer,
21-60 foreclosure, mortgage, sale, lease, or otherwise and hold, manage,
21-61 operate, or improve real, personal, or mixed property, regardless
21-62 of location;
21-63 (11) sell, lease, encumber, mortgage, exchange,
21-64 donate, convey, or otherwise dispose of any or all of its
21-65 properties or any interest in its properties, deeds of trust, or
21-66 mortgage lien interest owned by it or under its control or custody,
21-67 or in its possession, and release or relinquish any right, title,
21-68 claim, lien, interest, easement, or demand, however acquired,
21-69 including any equity or right of redemption in property foreclosed
22-1 by it, by public or private sale, with or without public bidding;
22-2 (12) lease or rent any improvements, lands, or
22-3 facilities from any person;
22-4 (13) request, accept, and use gifts, loans, donations,
22-5 aid, guaranties, allocations, subsidies, grants, or contributions
22-6 of any item of value to further its public purpose; and
22-7 (14) exercise [Except as specifically provided by this
22-8 subchapter, the corporation has] the rights and powers of a
22-9 nonprofit corporation incorporated under the Texas Non-Profit
22-10 Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
22-11 Statutes).
22-12 (c) In exercising the foregoing powers granted to it under
22-13 this chapter, the corporation shall not compete with private
22-14 lenders and shall not originate or make any loan that can or would
22-15 be made at the same time by a private lender on substantially the
22-16 same or better terms within the submarket in which the loan is
22-17 proposed to be made, and, to the extent practical, the corporation
22-18 shall rely on private mortgage companies, banks, savings banks,
22-19 thrifts, savings and loan associations, or other similar loan
22-20 originating entities to originate loans. The corporation may act
22-21 as co-originator in a loan where the funding resources emanate from
22-22 the corporation.
22-23 (d) All of the mortgage banking operations shall be
22-24 dedicated to the furtherance of facilitating affordable housing
22-25 finance for the ultimate benefit of individuals and families of low
22-26 and very low income and families of moderate income who, generally,
22-27 are not afforded housing finance options through conventional
22-28 lending channels.
22-29 (e) The corporation may contract with the department and
22-30 with bond counsel, financial advisors, [or] underwriters, or other
22-31 providers of professional or consulting services.
22-32 (f) The corporation shall pay its expenses from any
22-33 available fund without resort to the general revenues of the state,
22-34 except as specifically appropriated by the legislature.
22-35 (g) The department may not transfer any funds to the
22-36 corporation to support the administration of the corporation or to
22-37 subsidize its operations in any way. The department shall be fully
22-38 compensated by the corporation for any property or employees that
22-39 are shared by the corporation and the department, and it is the
22-40 intent of the legislature that no employees be shared beyond the
22-41 time at which such sharing is absolutely necessary. This
22-42 subsection does not prohibit the corporation from receiving grants,
22-43 loans, or other program funds of a kind that are available to other
22-44 nonprofit corporations, or from using that portion of the program
22-45 funds that are allowed for administration of the program for
22-46 administrative purposes.
22-47 (h) Transfers of property from the department to the
22-48 corporation shall be fully compensated.
22-49 Sec. 2306.556. [TAX] EXEMPT FROM TAXATION AND REGISTRATION.
22-50 (a) The corporation is exempt from all taxation by the state or a
22-51 political subdivision of the state, including a municipality.
22-52 (b) A bond or other obligation issued by the corporation is
22-53 an exempt security under The Securities Act (Article 581-1 et seq.,
22-54 Vernon's Texas Civil Statutes), and unless specifically provided
22-55 otherwise, under any subsequently enacted securities act. Any
22-56 contract, guaranty, or other document executed in connection with
22-57 the issuance of the bond or other obligation is not an exempt
22-58 security under that Act, and unless specifically provided
22-59 otherwise, under any subsequently enacted securities act.
22-60 Sec. 2306.557. DISTRIBUTION OF EARNINGS. Any part of
22-61 earnings remaining after payment of expenses and any establishment
22-62 of reserves by the corporation's board of directors may not inure
22-63 to any person except that the corporation shall deposit these
22-64 excess earnings with the department to the credit of the housing
22-65 trust [general revenue] fund established by Section 2306.201 [for
22-66 the benefit of the department] if the corporation's board of
22-67 directors determines that sufficient provision has been made for
22-68 the full payment of the expenses, bonds, and other obligations of
22-69 the corporation and for any establishment of reserves by the
23-1 corporation's board of directors.
23-2 Sec. 2306.558. ALTERATION AND TERMINATION. (a) Subject to
23-3 this subchapter and the prohibition on the impairment of contracts
23-4 in the law of this state, the corporation's board of directors by
23-5 written resolution may alter the structure, organization, programs,
23-6 or activities of the corporation or terminate and dissolve the
23-7 corporation.
23-8 (b) The corporation's board of directors shall dissolve the
23-9 corporation if the board by resolution determines that:
23-10 (1) the purposes for which the corporation was formed
23-11 have been substantially fulfilled; and
23-12 (2) all bonds and other obligations issued by the
23-13 corporation and all guaranties and insurance and other contractual
23-14 obligations have been fully paid or provision for that payment has
23-15 been made.
23-16 (c) On dissolution, the title to funds and properties
23-17 previously owned by the corporation shall be transferred to the
23-18 department.
23-19 Sec. 2306.559. REPORTING REQUIREMENTS [ANNUAL REPORT]. (a)
23-20 The corporation shall file an annual report of the financial
23-21 activity of the corporation with the department. Not later than
23-22 the 30th day after the date the corporation's board of directors
23-23 receives the report, the corporation's board of directors shall
23-24 submit the report to the governor, lieutenant governor, speaker of
23-25 the house of representatives, comptroller, and Legislative Budget
23-26 Board.
23-27 (b) The corporation shall file the report before the 90th
23-28 day after the last day of the corporation's fiscal year.
23-29 (c) The corporation shall prepare the report in accordance
23-30 with generally accepted accounting principles.
23-31 (d) The report must include:
23-32 (1) a statement of support, revenue, and expenses and
23-33 change in fund balances;
23-34 (2) a statement of functional expenses; and
23-35 (3) balance sheets for all funds.
23-36 (e) The corporation shall file quarterly performance reports
23-37 with the department.
23-38 (f) Promptly on receipt, the corporation shall file with the
23-39 Bond Review Board a report for the preceding fiscal year. The
23-40 report must contain the status of all outstanding debts and
23-41 obligations of the corporation, the status of collateral pledged as
23-42 security for those debts and obligations, and a maturity and
23-43 payment schedule for those debts and obligations.
23-44 Sec. 2306.560. AUDIT. (a) The corporation shall hire an
23-45 independent certified public accountant to audit the corporation's
23-46 books and accounts for each fiscal year. The corporation shall
23-47 file a copy of the audit with the department. Not later than the
23-48 30th day after the date the corporation's board of directors
23-49 receives the audit, the corporation's board of directors shall
23-50 submit the audit to the governor, lieutenant governor, speaker of
23-51 the house of representatives, comptroller, Bond Review Board, State
23-52 Auditor's Office, and Legislative Budget Board.
23-53 (b) The corporation is subject to audit by the state
23-54 auditor.
23-55 (c) The corporation shall submit budget and financial
23-56 information to the legislative budget office as required by the
23-57 director of the legislative budget office.
23-58 Sec. 2306.561. LIABILITY. (a) The directors, officers, and
23-59 employees of the corporation are not personally liable for bonds or
23-60 other obligations issued or contracts, guaranties, or insurance
23-61 executed by the corporation, or for any other action taken in
23-62 accordance with the powers and duties authorized by this subchapter
23-63 or in the good faith belief that that action was taken in
23-64 accordance with the powers and duties authorized by this
23-65 subchapter.
23-66 (b) The directors and officers of the corporation are immune
23-67 from civil liability to the same extent that a volunteer who serves
23-68 as an officer, director, or trustee of a charitable organization is
23-69 immune from civil liability under Chapter 84, Civil Practice and
24-1 Remedies Code.
24-2 (c) The civil liability of an employee of the corporation is
24-3 limited to the same extent that the civil liability of an employee
24-4 of a charitable organization is limited under Chapter 84, Civil
24-5 Practice and Remedies Code.
24-6 (d) The limitations on liability contained in this section
24-7 do not limit or impair the limitations on liability otherwise
24-8 available to the corporation's directors, officers, and employees.
24-9 SECTION 46. Chapter 2306, Government Code, is amended by
24-10 adding Subchapter AA to read as follows:
24-11 SUBCHAPTER AA. EMERGENCY NUTRITION AND TEMPORARY EMERGENCY
24-12 RELIEF PROGRAM
24-13 Sec. 2306.651. DEFINITIONS. In this subchapter:
24-14 (1) "Applicant" means the commissioners court of a
24-15 county, the governing body of another political subdivision, or a
24-16 nonprofit organization.
24-17 (2) "Nonprofit organization" means a private,
24-18 nonprofit, tax-exempt corporation under Section 501(c)(3), Internal
24-19 Revenue Code of 1986 (26 U.S.C. Section 501(c)(3)).
24-20 (3) "Program" means a system of providing temporary
24-21 emergency relief to needy persons.
24-22 Sec. 2306.652. TEMPORARY EMERGENCY RELIEF PROGRAM. (a) The
24-23 department shall establish a temporary emergency relief program to
24-24 assist counties, in cooperation with other public entities and
24-25 nonprofit organizations, in meeting the needs of individuals and
24-26 families for temporary emergency relief.
24-27 (b) The department shall establish the emergency nutrition
24-28 program as part of the temporary emergency relief program
24-29 established under this subchapter to meet the unmet need for
24-30 emergency food assistance. The department shall administer the
24-31 emergency nutrition program in the same fashion and under the same
24-32 procedures as govern the administration of the temporary emergency
24-33 relief program.
24-34 Sec. 2306.653. APPLICATION. (a) A county may apply to the
24-35 department for a grant-in-aid to establish and administer a program
24-36 under this subchapter.
24-37 (b) If a county declines to act, the department may accept
24-38 applications from other political subdivisions or from nonprofit
24-39 organizations. The political subdivision or nonprofit organization
24-40 must first notify the county judge of its intention to submit an
24-41 application for a grant-in-aid.
24-42 (c) An application submitted under this section must provide
24-43 evidence that a county requires assistance and that the applicant
24-44 has consulted with public entities, nonprofit organizations,
24-45 voluntary associations, representatives of low-income persons, and
24-46 other groups involved in providing assistance to needy persons.
24-47 (d) The department shall adopt rules establishing the
24-48 criteria for determining whether an applicant qualifies under this
24-49 subchapter. The department may approve only one program for each
24-50 county.
24-51 (e) A decision by a county to administer a program under
24-52 this subchapter remains in effect until the county notifies the
24-53 department that the county no longer wants to participate in the
24-54 program. If a county decides to discontinue its participation, the
24-55 department may choose an applicant as an alternative participant as
24-56 prescribed by Subsection (b) of this section and by department
24-57 rules.
24-58 (f) The department shall develop standards and procedures
24-59 for the program that permit all counties in the state to
24-60 participate.
24-61 Sec. 2306.654. LOCAL ALLOCATION. (a) State funds provided
24-62 to a local applicant under this subchapter may not be used for
24-63 local administrative costs.
24-64 (b) An allocation to a county from the program established
24-65 by Section 2306.652 shall be based on the county's demonstrated
24-66 need for the money. The formula used by the department to allocate
24-67 the money shall include:
24-68 (1) the number of unemployed persons in the county
24-69 during the most recent 12-month period for which data is available
25-1 compared to the number of unemployed people in the state during
25-2 that same 12-month period; and
25-3 (2) the number of people at or below the poverty line
25-4 in the county during the most recent 12-month period for which data
25-5 is available compared to the number of people at or below the
25-6 poverty line in the state during that same 12-month period.
25-7 Sec. 2306.655. LOCAL PLAN; DISBURSEMENT. (a) An applicant
25-8 must submit to the department a plan for providing emergency
25-9 relief.
25-10 (b) The plan must contain a description of the target
25-11 population, the eligibility criteria for receipt of services, the
25-12 nature and scope of benefits to be provided, methods of
25-13 administration, and a budget.
25-14 (c) The plan must also show evidence of consultation with
25-15 the entities listed in Section 2306.653(c).
25-16 (d) On certification by the department that the applicant
25-17 qualifies under this subchapter, the department shall disburse
25-18 money available for that purpose to the applicant to be used to
25-19 establish a program in the affected county.
25-20 Sec. 2306.656. ELIGIBILITY FOR ASSISTANCE. (a) Each
25-21 county, political subdivision, or nonprofit organization approved
25-22 by the department for establishing a program shall establish its
25-23 own criteria for persons eligible to receive benefits under the
25-24 program and shall include the criteria in the plan for providing
25-25 emergency relief submitted to the department.
25-26 (b) Before establishing eligibility and the frequency and
25-27 duration of benefits provided under the program, the county,
25-28 political subdivision, or nonprofit organization shall allow
25-29 adequate notice and opportunity for public comment, including
25-30 comments from entities listed in Section 2306.653(c).
25-31 (c) A county, political subdivision, or nonprofit
25-32 organization may not set the eligibility level at less than 75
25-33 percent of the federal poverty level based on the federal Office of
25-34 Management and Budget poverty index in effect at the time the plan
25-35 is submitted to the department.
25-36 (d) Assistance to persons eligible to participate in a
25-37 program authorized by this subchapter shall be provided through
25-38 vouchers and purchased services in accordance with the approved
25-39 plan submitted to the department. The assistance may include the
25-40 provision of utilities, food, housing, and clothing to needy
25-41 persons.
25-42 (e) Records pertaining to a program under this subchapter
25-43 are subject to audit by the department, an auditor approved by the
25-44 department, or the state auditor.
25-45 Sec. 2306.657. REPORTS AND PUBLIC NOTICES. (a) As part of
25-46 the annual report required by Section 2306.072, Government Code,
25-47 the director shall include a written report describing and
25-48 analyzing the operation of programs under this subchapter.
25-49 (b) A county, political subdivision, or nonprofit
25-50 organization funded under this subchapter shall assure the
25-51 department that information is provided to the public regarding
25-52 eligibility for and the nature of a program operated under this
25-53 subchapter.
25-54 Sec. 2306.658. RELATIONSHIP TO FEDERAL LAW. (a) If a
25-55 federal law or regulation is changed without making a provision for
25-56 temporary waivers to allow compliance with state law and, as a
25-57 result of this change, there is insufficient time to comply with
25-58 all the procedures required by this subchapter, the agency or
25-59 entity affected may act so as to comply with federal law and shall
25-60 comply with the applicable procedures required by this subchapter
25-61 as soon as possible.
25-62 (b) If a federal statute or court order conflicts with this
25-63 subchapter, the federal law or court order prevails over this
25-64 subchapter.
25-65 SECTION 47. Chapter 2306, Government Code, is amended by
25-66 adding Subchapter BB to read as follows:
25-67 SUBCHAPTER BB. LOW INCOME HOUSING TAX CREDIT PROGRAM
25-68 Sec. 2306.671. DEADLINES FOR ALLOCATION OF LOW INCOME
25-69 HOUSING TAX CREDITS. (a) Not later than November 15 of each year,
26-1 the department shall prepare and submit to the board for adoption
26-2 the qualified allocation plan required by federal law for use by
26-3 the department in setting criteria and priorities for the
26-4 allocation of tax credits under the low income housing tax credit
26-5 program.
26-6 (b) The board shall adopt and submit to the governor the
26-7 qualified allocation plan not later than January 31.
26-8 (c) The governor shall approve, reject, or modify and
26-9 approve the qualified allocation plan not later than February 28.
26-10 (d) An applicant for a low income housing tax credit to be
26-11 issued a commitment during the initial allocation cycle in a
26-12 calendar year must submit an application to the department not
26-13 later than May 15.
26-14 (e) The board shall issue a commitment for allocation for
26-15 the initial cycle of low income housing tax credits each year in
26-16 accordance with the qualified allocation plan not later than July
26-17 31.
26-18 Sec. 2306.672. SCORING OF APPLICATIONS. (a) The goal of
26-19 the low income housing tax credit program is to provide permanent
26-20 affordable housing. In allocating low income housing tax credits,
26-21 the department shall score each application using a point system
26-22 based on criteria adopted by the department that are consistent
26-23 with the department's housing goals. The department shall publish
26-24 in the qualified allocation plan any discretionary factor that the
26-25 department will consider in scoring an application.
26-26 (b) If an applicant meets the department's scoring and
26-27 underwriting criteria, the department shall add:
26-28 (1) five bonus points to the applicant's score if the
26-29 applicant agrees to provide to a qualified nonprofit organization
26-30 or tenant organization a right of first refusal to purchase the
26-31 property to which the tax credit applies at the minimum price
26-32 provided in, and in accordance with the requirements of, Section
26-33 42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
26-34 42(i)(7)); and
26-35 (2) two bonus points to the applicant's score if the
26-36 application is received within the first 10 days of the application
26-37 acceptance period.
26-38 (c) The department shall provide the score of each
26-39 application on each criterion to the board and the governor. The
26-40 results of the scoring shall be available to the public.
26-41 (d) Upon awarding tax credit allocations, the board shall
26-42 document the reasons for each project's selection, including an
26-43 explanation of all discretionary factors used in making its
26-44 determination.
26-45 Sec. 2306.673. SALE OF CERTAIN LOW INCOME HOUSING TAX CREDIT
26-46 PROPERTY. (a) Not later than two years before the expiration of
26-47 the compliance period, a recipient of a low income housing tax
26-48 credit who agreed to provide a right of first refusal under Section
26-49 2306.672(b)(1) and who intends to sell the property shall notify
26-50 the department of the recipient's intent to sell. The recipient
26-51 shall notify qualified nonprofit organizations and tenant
26-52 organizations of the opportunity to purchase the property.
26-53 (b) The recipient may:
26-54 (1) during the first six-month period after notifying
26-55 the department, negotiate or enter into a purchase agreement only
26-56 with a qualified nonprofit organization that is also a community
26-57 housing development organization as defined by the federal home
26-58 investment partnership program;
26-59 (2) during the second six-month period after notifying
26-60 the department, negotiate or enter into a purchase agreement with
26-61 any qualified nonprofit organization or tenant organization; and
26-62 (3) during the year before the expiration of the
26-63 compliance period, negotiate or enter into a purchase agreement
26-64 with the department or any qualified nonprofit organization or
26-65 tenant organization approved by the department.
26-66 (c) Notwithstanding an agreement under Section
26-67 2306.672(b)(1), a recipient of a low income housing tax credit may
26-68 sell property to which the tax credit applies to any purchaser
26-69 after the expiration of the compliance period if a qualified
27-1 nonprofit organization or tenant organization does not offer to
27-2 purchase the property at the minimum price provided by Section
27-3 42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
27-4 42(i)(7)), and the department declines to purchase the property.
27-5 (d) In this section, "compliance period" has the meaning
27-6 assigned by Section 42(i)(1), Internal Revenue Code of 1986 (26
27-7 U.S.C. Section 42(i)(1)).
27-8 Sec. 2306.674. DEPARTMENT PURCHASE OF LOW INCOME HOUSING TAX
27-9 CREDIT PROPERTY. The board by rule may develop and implement a
27-10 program to purchase low income housing tax credit property that is
27-11 not purchased by a qualified nonprofit organization or tenant
27-12 organization. The department may not purchase low income housing
27-13 tax credit property if the board finds that the purchase is not in
27-14 the best interest of the state.
27-15 Sec. 2306.675. ALLOCATION OF LOW INCOME HOUSING TAX CREDIT.
27-16 (a) Department staff shall provide recommendations to the board
27-17 concerning the financial or programmatic viability of each
27-18 application for a low income housing tax credit before the board
27-19 makes a decision relating to the allocation of tax credits.
27-20 (b) Not later than the deadline specified in Section
27-21 2306.671(e), the board shall issue a commitment for tax credits
27-22 available to the department. Concurrently with the issuance of a
27-23 commitment for initial tax credits, the board shall establish a
27-24 waiting list of additional applications, ranked in descending order
27-25 of priority, to be issued a commitment for tax credits if
27-26 additional credits become available.
27-27 Sec. 2306.676. EQUAL ACCESS TO PROGRAM. The department
27-28 shall establish procedures through the qualified allocation plan to
27-29 ensure that each applicant for a low income housing tax credit has
27-30 a fair and equal opportunity to submit or resubmit an application
27-31 and submit for consideration any authorized supplementary materials
27-32 and information.
27-33 Sec. 2306.677. BOARD INFLUENCE PROHIBITED. (a) A board
27-34 member may not contact department staff in any manner with the
27-35 intent to influence the processing of an application for a low
27-36 income housing tax credit.
27-37 (b) During the period between the department's initial
27-38 solicitation of applications for tax credits and the final issuance
27-39 of commitments of tax credits by the board, a member of the board
27-40 may not have contact with the department staff concerning an
27-41 application, other than written communications or public oral
27-42 communications during a public meeting of the department. A
27-43 written communication authorized by this subsection is subject to
27-44 disclosure as a public record.
27-45 Sec. 2306.678. FEES. (a) A fee charged by the department
27-46 to an applicant for a low income housing tax credit may not be
27-47 excessive and must reflect the department's actual costs in
27-48 processing applications and providing copies of documents in
27-49 connection with the allocation process.
27-50 (b) The department shall refund a fee charged to an
27-51 applicant if the department does not score the applicant's
27-52 application, except the department may retain a reasonable portion
27-53 of the fee to compensate the department for costs associated with
27-54 the application.
27-55 Sec. 2306.679. PUBLIC INFORMATION AND HEARINGS ON PROGRAM.
27-56 (a) The department shall provide information regarding the low
27-57 income housing tax credit program, including notices of public
27-58 hearings, meetings, and opening and closing dates for applications
27-59 for a low income housing tax credit, to local housing departments,
27-60 newspapers, nonprofit organizations, on-site property managers of
27-61 occupied projects that are the subject of tax credit applications
27-62 for posting in prominent locations at those projects, and other
27-63 interested persons and community groups, who request the
27-64 information.
27-65 (b) The department shall hold at least three public hearings
27-66 in different regions of the state to receive public comments on low
27-67 income housing tax credit applications.
27-68 SECTION 48. Section 11.001, Human Resources Code, is amended
27-69 to read as follows:
28-1 Sec. 11.001. Definitions. Except as provided by Section
28-2 [34.002 or] 40.001, in this title:
28-3 (1) "Board" means the Texas Board of Human Services.
28-4 (2) "Department" means the Texas Department of Human
28-5 Services.
28-6 (3) "Commissioner" means the Commissioner of Human
28-7 Services.
28-8 (4) "Assistance" means all forms of assistance and
28-9 services for needy persons authorized by Subtitle C.
28-10 (5) "Financial assistance" means money payments for
28-11 needy persons authorized by Chapter 31.
28-12 (6) "Medical assistance" means assistance for needy
28-13 persons authorized by Chapter 32.
28-14 SECTION 49. Sections 7(a) and (c), Chapter 1092, Acts of the
28-15 70th Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's
28-16 Texas Civil Statutes), are amended to read as follows:
28-17 (a) Except as provided in Subsection (b) of this section,
28-18 the issuer shall close on the bonds for which a reservation has
28-19 been granted not later than the 150th [90th] day after the
28-20 reservation date.
28-21 (c) If the issuer does not timely close on the bonds, the
28-22 issue's reservation is canceled and during the 180-day [120-day]
28-23 period beginning on the reservation date of the canceled
28-24 reservation:
28-25 (1) the issuer or any other issuer may not submit an
28-26 application for a reservation for the same project; and
28-27 (2) the issuer is eligible for a carryforward
28-28 designation for the project only as provided by Section 9 of this
28-29 Act.
28-30 SECTION 50. Section 395.016, Local Government Code, is
28-31 amended by adding Subsection (g) to read as follows:
28-32 (g) Notwithstanding Subsections (a)-(e) and Section 395.017,
28-33 the political subdivision may reduce or waive an impact fee for any
28-34 service unit that would qualify as affordable housing under 42
28-35 U.S.C. Section 12745, as amended, once the service unit is
28-36 constructed. If affordable housing as defined by 42 U.S.C. Section
28-37 12745, as amended, is not constructed, the political subdivision
28-38 may reverse its decision to waive or reduce the impact fee, and the
28-39 political subdivision may assess an impact fee at any time during
28-40 the development approval or building process or after the building
28-41 process if an impact fee was not already assessed.
28-42 SECTION 51. Effective January 1, 1998, Subchapter B, Chapter
28-43 23, Tax Code, is amended by adding Section 23.21 to read as
28-44 follows:
28-45 Sec. 23.21. PROPERTY USED TO PROVIDE AFFORDABLE HOUSING. In
28-46 appraising real property that is rented or leased to a low-income
28-47 individual or family meeting income-eligibility standards
28-48 established by the owner of the property under regulations or
28-49 restrictions limiting to a percentage of the individual's or the
28-50 family's income the amount that the individual or family may be
28-51 required to pay for the rental or lease of the property, the chief
28-52 appraiser shall take into account the extent to which that use and
28-53 limitation reduce the market value of the property.
28-54 SECTION 52. The following laws are repealed:
28-55 (1) Sections 2306.122, 2306.143, and 2306.513(e),
28-56 Government Code; and
28-57 (2) Chapter 34, Human Resources Code.
28-58 SECTION 53. Section 395.016(g), Local Government Code, as
28-59 added by this Act, applies to any assessed or unassessed impact fee
28-60 that is not collected before the effective date of this Act. An
28-61 impact fee that is collected before the effective date of this Act
28-62 is governed by the law in effect on the day it was collected, and
28-63 the former law is continued in effect for that purpose.
28-64 SECTION 54. This Act takes effect September 1, 1997.
28-65 SECTION 55. The change in law made to Section 2306.053,
28-66 Government Code, by this Act applies to a cause of action filed on
28-67 or after the effective date of this Act. A cause of action filed
28-68 before the effective date of this Act is governed by the law in
28-69 existence when the cause of action was filed, and that law is
29-1 continued in effect for that purpose.
29-2 SECTION 56. The importance of this legislation and the
29-3 crowded condition of the calendars in both houses create an
29-4 emergency and an imperative public necessity that the
29-5 constitutional rule requiring bills to be read on three several
29-6 days in each house be suspended, and this rule is hereby suspended.
29-7 * * * * *