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.