By Serna H.B. No. 2767
75R6991 CLG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, operation, and funding of an Emergency
1-3 Housing Assistance Program in the Texas Department of Housing and
1-4 Community Affairs.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter 2306, Government Code, is amended by
1-7 adding Subchapter AA to read as follows:
1-8 SUBCHAPTER AA. EMERGENCY HOUSING ASSISTANCE PROGRAM
1-9 Sec. 2306.621. DEFINITION. In this subchapter, "program"
1-10 means the emergency housing assistance program established under
1-11 this subchapter.
1-12 Sec. 2306.622. EMERGENCY HOUSING ASSISTANCE PROGRAM;
1-13 ADMINISTRATION. (a) The department by rule shall establish an
1-14 emergency housing assistance program to assist individuals and
1-15 families of low and very low income who are experiencing a housing
1-16 crisis.
1-17 (b) The department shall administer the program.
1-18 (c) The director may employ personnel as necessary to
1-19 administer the program.
1-20 Sec. 2306.623. EMERGENCY HOUSING ASSISTANCE FUND. (a) The
1-21 emergency housing assistance fund is a special account in the state
1-22 treasury.
1-23 (b) Appropriations for the implementation and administration
1-24 of this subchapter and any other amounts received by the state
2-1 under this subchapter shall be deposited in the fund.
2-2 (c) The comptroller shall deposit in the fund 65 percent of
2-3 the federal HOME block grant funds received by the state each year.
2-4 (d) Money in the fund may be appropriated only for use in
2-5 carrying out the purposes of this subchapter. The department may
2-6 not use money in the fund to pay a private consultant.
2-7 Sec. 2306.624. ADMINISTRATION OF GRANTS. (a) The
2-8 department may award grants in 1998 and 1999 to an eligible
2-9 individual or family for a project or activity that meets the
2-10 requirements of this subchapter.
2-11 (b) Using information from the state low income housing plan
2-12 under Section 2306.0721, the department shall compute the number of
2-13 persons who have a housing crisis, as defined by department rule,
2-14 in each of the uniform state service regions. The department shall
2-15 award grants under the program to individuals and families in each
2-16 region in accordance to the ratio that the number of persons in the
2-17 region who have a housing crisis has to the total number of those
2-18 persons in this state.
2-19 Sec. 2306.625. ELIGIBLE PERSONS. (a) To be eligible for an
2-20 emergency housing assistance grant, an individual or family must:
2-21 (1) reside in a small municipality or rural community
2-22 in the unincorporated area of a county;
2-23 (2) be an individual or family of low or very low
2-24 income; and
2-25 (3) establish that the individual or family is
2-26 experiencing one or more of the following housing crises:
2-27 (A) uses more than 50 percent of cash income to
3-1 pay for rent and utilities;
3-2 (B) does not have or has inadequate plumbing,
3-3 kitchen, or heating facilities as defined by standards of the
3-4 United States Department of Housing and Urban Development; or
3-5 (C) is homeless.
3-6 (b) The department shall adopt rules to implement this
3-7 section.
3-8 Sec. 2306.626. GRANT APPLICATION. (a) An individual or
3-9 family who is eligible to receive an emergency housing assistance
3-10 grant may file or grant application with the department in a form
3-11 prescribed by the department.
3-12 (b) An application must include:
3-13 (1) a statement of the amount of money requested, if
3-14 applicable; and
3-15 (2) a description of the proposed project or activity.
3-16 (c) The department shall act on an application not later
3-17 than the 14th day after the date on which the department receives
3-18 the application.
3-19 Sec. 2306.627. ELIGIBLE PROJECTS OR ACTIVITIES. A person
3-20 who is awarded a grant under this subchapter may use the money only
3-21 for:
3-22 (1) housing repair, construction, or replacement;
3-23 (2) rental and utility assistance payments; and
3-24 (3) the conversion of a contract for deed to a deed of
3-25 trust for purposes of lowering house payments.
3-26 Sec. 2306.628. TRAINING AND TECHNICAL ASSISTANCE; PROMOTION
3-27 OF PROGRAM. (a) The department shall promote the program
4-1 statewide to ensure that the maximum number of eligible individuals
4-2 and families are aware of the program.
4-3 (b) The department shall conduct a training session and
4-4 provide technical assistance to potential applicants in several
4-5 geographic regions of the state to enable those persons to apply
4-6 for and administer the amounts awarded under the program without
4-7 assistance.
4-8 Sec. 2306.629. CONTRACTS WITH COMMUNITY-BASED ENTITIES TO
4-9 PROVIDE ASSISTANCE. (a) The department shall contract with a
4-10 public agency, community action agency, community housing
4-11 development organization, or other community-based entity to
4-12 provide housing repair, construction, or replacement under the
4-13 program.
4-14 (b) An agreement entered into under Subsection (a) must
4-15 include a provision that the department will terminate the
4-16 agreement and collect any unspent amounts from a contractor who is
4-17 not performing the contractor's obligations under the agreement or
4-18 who is too slow in providing the housing assistance.
4-19 Sec. 2306.630. REPORTS. (a) The department shall require
4-20 an entity that contracts with the department under Section 2306.629
4-21 to submit to the department:
4-22 (1) photographs of the existing substandard conditions
4-23 at each housing unit provided assistance under the program; and
4-24 (2) a report of the income and demographic
4-25 characteristics of an individual or family receiving assistance
4-26 under the program.
4-27 (b) The department shall use the information submitted by
5-1 entities under this section to prepare a report on the program for
5-2 publication in the annual report under Section 2306.072. The
5-3 report on the program must include:
5-4 (1) the economic and demographic characteristics of
5-5 program recipients;
5-6 (2) the geographical distribution of grants awarded
5-7 under the program; and
5-8 (3) the rate of expenditure per application.
5-9 Sec. 2306.631. EXPIRATION DATE. This subchapter expires
5-10 September 1, 2001.
5-11 SECTION 2. Subchapter D, Chapter 2306, Government Code, is
5-12 amended by adding Section 2306.077 to read as follows:
5-13 Sec. 2306.077. ACCOUNT. (a) Except as provided by Sections
5-14 2306.118 and 2306.120, the department shall deposit all earnings
5-15 and revenues of the department in a special account in the general
5-16 revenue fund.
5-17 (b) After the legislature appropriates an amount sufficient
5-18 to pay the operating expenses and obligations of the department and
5-19 to repay bonds of the department, the comptroller periodically
5-20 shall transfer 65 percent of the amount, other than the
5-21 appropriated amount, credited to the account during a fiscal year
5-22 to the emergency housing assistance fund under Section 2306.623.
5-23 (c) This section expires September 1, 2001.
5-24 SECTION 3. Section 2306.557, Government Code, is amended to
5-25 read as follows:
5-26 Sec. 2306.557. DISTRIBUTION OF EARNINGS. (a) Any part of
5-27 earnings remaining after payment of expenses may not inure to any
6-1 person except that the corporation shall deposit these earnings to
6-2 the credit of the general revenue fund for the benefit of the
6-3 department [if the corporation's board of directors determines that
6-4 sufficient provision has been made for the full payment of the
6-5 expenses, bonds, and other obligations of the corporation].
6-6 (b) After the legislature appropriates an amount sufficient
6-7 to cover the expenses, bonds, and other obligations of the
6-8 corporation, the comptroller periodically shall transfer 65 percent
6-9 of the earnings, other than the appropriated amount, credited to
6-10 the account during a fiscal year to the emergency housing
6-11 assistance fund under Section 2306.623. This subsection expires
6-12 September 1, 2001.
6-13 SECTION 4. The Texas Department of Housing and Community
6-14 Affairs shall award the initial grants under the emergency housing
6-15 assistance program established under Section 2306.622, Government
6-16 Code, as added by this Act, not later than June 1, 1998.
6-17 SECTION 5. This Act takes effect September 1, 1997.
6-18 SECTION 6. The importance of this legislation and the
6-19 crowded condition of the calendars in both houses create an
6-20 emergency and an imperative public necessity that the
6-21 constitutional rule requiring bills to be read on three several
6-22 days in each house be suspended, and this rule is hereby suspended.