By: Barrientos S.B. No. 1320
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the operation of the Texas Department of Housing and
1-2 Community Affairs and the availability of affordable housing;
1-3 providing for the issuance of revenue bonds.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2306.001, Government Code, is amended to
1-6 read as follows:
1-7 Sec. 2306.001. PURPOSES. The purposes of the department are
1-8 to:
1-9 (1) assist local governments in:
1-10 (A) providing essential public services for
1-11 their residents; and
1-12 (B) overcoming financial, social, and
1-13 environmental problems;
1-14 (2) provide for the housing needs of individuals and
1-15 families of low, very low, and extremely low income and families of
1-16 middle and moderate income;
1-17 (3) contribute to the preservation, development, and
1-18 redevelopment of neighborhoods and communities, including the
1-19 preservation of government-assisted housing occupied by individuals
1-20 and families of very low and extremely low income;
1-21 (4) assist the governor and the legislature in
2-1 coordinating federal and state programs affecting local government;
2-2 [and]
2-3 (5) inform state officials and the public of the needs
2-4 of local government; and
2-5 (6) assist public housing authorities by using
2-6 available financing mechanisms to refinance, rehabilitate, and
2-7 construct decent, safe, and affordable housing projects.
2-8 SECTION 2. Section 2306.002, Government Code, is amended to
2-9 read as follows:
2-10 Sec. 2306.002. POLICY. (a) The legislature finds that:
2-11 (1) every resident of this state should have a decent,
2-12 safe, and affordable living environment;
2-13 (2) government at all levels should be involved in
2-14 assisting individuals and families of low, very low, and extremely
2-15 low income in obtaining a decent, safe, and affordable living
2-16 environment; and
2-17 (3) the development and diversification of the
2-18 economy, the elimination of unemployment or underemployment, and
2-19 the development or expansion of commerce in this state should be
2-20 encouraged.
2-21 (b) The highest priority of the department is to provide
2-22 assistance to individuals and families of low, [and] very low, and
2-23 extremely low income who are not assisted by private enterprise or
2-24 other governmental programs so that they may obtain affordable
2-25 housing or other services and programs offered by the department.
3-1 SECTION 3. Section 2306.004, Government Code, is amended to
3-2 read as follows:
3-3 Sec. 2306.004. DEFINITIONS. In this chapter:
3-4 (1) "Board" means the governing board of the
3-5 department.
3-6 (2) "Bond" means an evidence of indebtedness or other
3-7 obligation, regardless of the source of payment, issued by the
3-8 department under Subchapter P, including a bond, note, or bond or
3-9 revenue anticipation note, regardless of whether the obligation is
3-10 general or special, negotiable or nonnegotiable, in bearer or
3-11 registered form, in certified or book-entry form, in temporary or
3-12 permanent form, or with or without interest coupons.
3-13 (3) "Department" means the Texas Department of Housing
3-14 and Community Affairs.
3-15 (4) "Director" means the executive director of the
3-16 department.
3-17 (5) "Economically depressed or blighted area" means an
3-18 area:
3-19 (A) that has been determined by the housing
3-20 finance division to be a qualified census tract or an area of
3-21 chronic economic distress under Section 103A, Internal Revenue Code
3-22 of 1954 (26 U.S.C. Section 103A);
3-23 (B) established in a municipality that has a
3-24 substantial number of substandard, slum, deteriorated, or
3-25 deteriorating structures and that suffers from a high relative rate
4-1 of unemployment; or
4-2 (C) that has been designed and included in a tax
4-3 increment district created under Chapter 695, Acts of the 66th
4-4 Legislature, Regular Session, 1979 (Article 1066d, Vernon's Texas
4-5 Civil Statutes).
4-6 (6) "Elderly individual" means an individual 60 years
4-7 of age or older.
4-8 (7) "Family of middle income" means a family earning
4-9 at least 95 percent and less than or equal to 115 percent of the
4-10 area median family income, as determined under Section 2306.123.
4-11 (8) "Family of moderate income" means a family:
4-12 (A) that is determined by the board to require
4-13 assistance, taking into account:
4-14 (i) the amount of the total income
4-15 available for housing needs of the individuals and families;
4-16 (ii) the size of the family;
4-17 (iii) the cost and condition of available
4-18 housing facilities;
4-19 (iv) the ability of the individuals and
4-20 families to compete successfully in the private housing market and
4-21 to pay the amounts required by private enterprise for sanitary,
4-22 decent, and safe housing; and
4-23 (v) standards established for various
4-24 federal programs determining eligibility based on income; [and]
4-25 (B) that earns less than a family of middle
5-1 income; and
5-2 (C) that does not qualify as a family of low,
5-3 very low, or extremely low income.
5-4 (9) [(8)] "Federal government" means the United States
5-5 of America and includes any corporate or other instrumentality of
5-6 the United States of America, including the Resolution Trust
5-7 Corporation.
5-8 (10) [(9)] "Federal mortgage" means a mortgage loan
5-9 for residential housing:
5-10 (A) that is made by the federal government; or
5-11 (B) for which a commitment to make has been
5-12 given by the federal government.
5-13 (11) [(10)] "Federally assisted new communities" means
5-14 federally assisted areas that receive or will receive assistance in
5-15 the form of loan guarantees under Title X of the National Housing
5-16 Act (12 U.S.C. Section 1701 et seq.), and a portion of that
5-17 federally assisted area has received grants under Section 107(a)(1)
5-18 of the Housing and Community Development Act of 1974, as amended
5-19 (42 U.S.C. Section 5301 et seq.).
5-20 (12) [(11)] "Federally insured mortgage" means a
5-21 mortgage loan for residential housing that:
5-22 (A) is insured or guaranteed by the federal
5-23 government; or
5-24 (B) the federal government has committed to
5-25 insure or guarantee.
6-1 (13) [(12)] "Housing development" means property or
6-2 work or a project, building, structure, facility, or undertaking,
6-3 whether existing, new construction, remodeling, improvement, or
6-4 rehabilitation, that meets or is designed to meet minimum property
6-5 standards required by the department and that is financed under the
6-6 provisions of this chapter for the primary purpose of providing
6-7 sanitary, decent, and safe dwelling accommodations for rent, lease,
6-8 use, or purchase by individuals and families of low, [and] very
6-9 low, and extremely low income and families of middle and moderate
6-10 income in need of housing. The term includes:
6-11 (A) buildings, structures, land, equipment,
6-12 facilities, or other real or personal properties that are
6-13 necessary, convenient, or desirable appurtenances, including
6-14 streets, water, sewers, utilities, parks, site preparation,
6-15 landscaping, stores, offices, and other nonhousing facilities, such
6-16 as administrative, community, and recreational facilities the
6-17 department determines to be necessary, convenient, or desirable
6-18 appurtenances; and
6-19 (B) single and multifamily dwellings in rural
6-20 and urban areas.
6-21 (14) [(13)] "Housing sponsor" means:
6-22 (A) an individual, including an individual or
6-23 family of low, [and] very low, or extremely low income or family of
6-24 middle or moderate income, joint venture, partnership, limited
6-25 partnership, trust, firm, corporation, or cooperative that is
7-1 approved by the department as qualified to own, construct, acquire,
7-2 rehabilitate, operate, manage, or maintain a housing development,
7-3 subject to the regulatory powers of the department and other terms
7-4 and conditions in this chapter; or
7-5 (B) in an economically depressed or blighted
7-6 area, or in a federally assisted new community located within a
7-7 home-rule municipality, the term may include an individual or
7-8 family whose income exceeds the middle or moderate income level if
7-9 at least 90 percent of the total mortgage amount available under a
7-10 mortgage revenue bond issue is designated for individuals and
7-11 families of low, very low, and extremely low income or families of
7-12 middle or moderate income.
7-13 (15) [(14)] "Individuals and families of low income"
7-14 means individuals and families earning not more than 80 percent of
7-15 the area median income or applicable federal poverty line, as
7-16 determined under Section 2306.123.
7-17 (16) [(15)] "Individuals and families of very low
7-18 income" means individuals and families earning not more than 50
7-19 [60] percent of the area median income or applicable federal
7-20 poverty line, as determined under Section 2306.123.
7-21 (17) "Individuals and families of extremely low
7-22 income" means individuals and families earning not more than 30
7-23 percent of the area median income or applicable federal poverty
7-24 line, as determined under Section 2306.123.
7-25 (18) [(16)] "Land development" means:
8-1 (A) acquiring land for residential housing
8-2 construction; and
8-3 (B) making, installing, or constructing
8-4 nonresidential improvements that the department determines are
8-5 necessary or desirable for a housing development to be financed by
8-6 the department, including:
8-7 (i) waterlines and water supply
8-8 installations;
8-9 (ii) sewer lines and sewage disposal
8-10 installations;
8-11 (iii) steam, gas, and electric lines and
8-12 installations; and
8-13 (iv) roads, streets, curbs, gutters, and
8-14 sidewalks, whether on or off the site.
8-15 (19) [(17)] "Local government" means a county,
8-16 municipality, special district, or any other political subdivision
8-17 of the state, a public, nonprofit housing finance corporation
8-18 created under Chapter 394, Local Government Code, or a combination
8-19 of those entities.
8-20 (20) [(18)] "Mortgage" means an interest-bearing
8-21 obligation, including a mortgage, mortgage deed, bond, note, deed
8-22 of trust, or other instrument, that is a lien:
8-23 (A) on real property; or
8-24 (B) on a leasehold under a lease having a
8-25 remaining term that, at the time the lien is acquired, does not
9-1 expire until after the maturity date of the interest-bearing
9-2 obligation secured by the lien.
9-3 (21) [(19)] "Mortgage lender" means a bank, trust
9-4 company, savings bank, mortgage company, mortgage banker, credit
9-5 union, national banking association, savings and loan association,
9-6 life insurance company, or other financial institution authorized
9-7 to transact business in this state and approved as a mortgage
9-8 lender by the department.
9-9 (22) [(20)] "Mortgage loan" means an interest-bearing
9-10 obligation secured by a mortgage.
9-11 (23) [(21)] "Municipality" includes only a
9-12 municipality in this state.
9-13 (24) [(22)] "Public agency" means an agency, board,
9-14 authority, department, commission, political subdivision, municipal
9-15 corporation, district, public corporation, body politic, or
9-16 instrumentality of this state, including a county, municipality,
9-17 housing authority, state-supported institution of higher education,
9-18 school district, junior college, other district or authority, or
9-19 other type of governmental entity of this state.
9-20 (25) [(23)] "Real estate owned contractor" means a
9-21 person required to meet the obligations of a contract with the
9-22 housing finance division for managing and marketing foreclosed
9-23 property.
9-24 (26) [(24)] "Real property" means land, including
9-25 improvements and fixtures on the land, property of any nature
10-1 appurtenant to the land or used in connection with the land, and a
10-2 legal or equitable estate, interest, or right in land, including
10-3 leasehold interests, terms for years, and a judgment, mortgage, or
10-4 other lien.
10-5 (27) [(25)] "Reserve fund" means the housing finance
10-6 division's reserve fund.
10-7 (28) [(26)] "Residential housing" means a specific
10-8 work or improvement undertaken primarily to provide dwelling
10-9 accommodations, including the acquisition, construction,
10-10 reconstruction, remodeling, improvement, or rehabilitation of land
10-11 and buildings and improvements to the buildings for residential
10-12 housing and other incidental or appurtenant nonhousing facilities.
10-13 (29) [(27)] "Servicer" means a person required to meet
10-14 contractual obligations with the housing finance division or with a
10-15 mortgage lender relating to a loan financed under Subchapter J,
10-16 including:
10-17 (A) purchasing mortgage certificates backed by
10-18 mortgage loans;
10-19 (B) collecting principal and interest from the
10-20 borrower;
10-21 (C) sending principal and interest payments to
10-22 the division;
10-23 (D) preparing periodic reports;
10-24 (E) notifying the primary mortgage and pool
10-25 insurers of delinquent and foreclosed loans; and
11-1 (F) filing insurance claims on foreclosed
11-2 property.
11-3 (30) "State low income housing plan" means the
11-4 comprehensive and integrated plan for the state assessment of
11-5 housing needs and allocation of housing resources.
11-6 SECTION 4. Section 2306.027(a), Government Code, is amended
11-7 to read as follows:
11-8 (a) The governor shall make appointments to the board as
11-9 follows:
11-10 (1) Place 1: an individual representing lending
11-11 institutions;
11-12 (2) Place 2: an individual representing local
11-13 government;
11-14 (3) Place 3: an individual representing housing
11-15 construction;
11-16 (4) Place 4: an individual representing
11-17 community-based nonprofit housing organizations;
11-18 (5) Place 5: an individual representing realtors or
11-19 housing developers;
11-20 (6) Place 6: an individual representing individuals
11-21 and families of low, [or] very low, and extremely low income; and
11-22 (7) Places 7 through 9: public members.
11-23 SECTION 5. Section 2306.053(b), Government Code, is amended
11-24 to read as follows:
11-25 (b) The department may:
12-1 (1) sue and be sued, or plead and be impleaded;
12-2 (2) act for and on behalf of this state;
12-3 (3) adopt an official seal or alter it;
12-4 (4) adopt and enforce bylaws and rules;
12-5 (5) contract with the federal government, state, any
12-6 public agency, mortgage lender, person, or other entity;
12-7 (6) designate mortgage lenders to act for the
12-8 department for the origination, processing, and servicing of the
12-9 department's mortgage loans under conditions agreed to by the
12-10 parties;
12-11 (7) provide, contract, or arrange for consolidated
12-12 processing of a housing development to avoid duplication;
12-13 (8) encourage homeless individuals and individuals of
12-14 low, [or] very low, and extremely low income to attend the
12-15 department's educational programs and assist those individuals in
12-16 attending the programs;
12-17 (9) appoint and determine the qualifications, duties,
12-18 and tenure of its agents, counselors, and professional advisors,
12-19 including accountants, appraisers, architects, engineers, financial
12-20 consultants, housing construction and financing experts, and real
12-21 estate consultants;
12-22 (10) administer federal housing, community affairs, or
12-23 community development programs, including the low income housing
12-24 tax credit program;
12-25 (11) establish eligibility criteria for individuals
13-1 and families of low, very low, and extremely low income and
13-2 families of middle and moderate income to participate in and
13-3 benefit from programs administered by the department; and
13-4 (12) do all things necessary, convenient, or desirable
13-5 to carry out the powers expressly granted or necessarily implied by
13-6 this chapter.
13-7 SECTION 6. Subchapter C, Chapter 2306, Government Code, is
13-8 amended by adding Sections 2306.057 and 2306.058 to read as
13-9 follows:
13-10 Sec. 2306.057. LOW INCOME HOUSING TAX CREDIT PROGRAM.
13-11 (a) Not later than March 15 of each year, the department shall
13-12 prepare and submit to the board for adoption the qualified
13-13 allocation plan required by federal law for use by the department
13-14 in setting certain criteria and priorities for the allocation of
13-15 tax credits under the low income housing tax credit program.
13-16 (b) The board shall adopt and submit to the governor the
13-17 qualified allocation plan not later than May 1st.
13-18 (c) The governor shall approve, reject, or modify and
13-19 approve the qualified allocation plan not later than June 1st.
13-20 (d) The board shall allocate low income housing tax credits
13-21 each year in accordance with the qualified allocation plan not
13-22 later than August 31st.
13-23 (e) As a condition of receiving a low income housing tax
13-24 credit, the department shall require an applicant for the tax
13-25 credit to sign an agreement to sell the property to which the tax
14-1 credit applies at the end of the 15-year compliance period under
14-2 the low income housing tax credit program. The applicant must
14-3 agree to sell the property at that time to a qualified nonprofit
14-4 organization or the department in accordance with Section 42(i)(7),
14-5 Internal Revenue Code of 1986 (26 U.S.C. Section 42(i)(7)). The
14-6 department shall administer the sale of the property.
14-7 (f) Not later than two years before the expiration of the
14-8 15-year compliance period, a recipient of a low income housing tax
14-9 credit that signed an agreement under Subsection (e) shall notify
14-10 the department of the recipient's intent to sell the property in
14-11 compliance with the agreement. The recipient may:
14-12 (1) during the first six month period after notifying
14-13 the department, negotiate or enter into a purchase agreement only
14-14 with a qualified nonprofit organization that is also a community
14-15 housing development organization as defined by the federal home
14-16 investment partnership program (HOME);
14-17 (2) during the second six month period after notifying
14-18 the department, negotiate or enter into a purchase agreement with
14-19 any qualified nonprofit organization; and
14-20 (3) during the year before the expiration of the
14-21 15-year compliance period, negotiate or enter into a purchase
14-22 agreement with the department or a qualified nonprofit organization
14-23 approved by the department.
14-24 (g) The board by rule shall develop and implement a program
14-25 to purchase low income housing tax credit property that is not
15-1 purchased by a qualified nonprofit organization. The department
15-2 may not purchase low income housing tax credit property if the
15-3 board finds that the purchase is not in the best interests of the
15-4 state.
15-5 (h) A recipient of a low income housing tax credit is not
15-6 prohibited by this section from selling property to which the tax
15-7 credit applies to any purchaser after the expiration of the
15-8 compliance period if a qualified nonprofit organization does not
15-9 make a reasonable offer and the department declines to purchase the
15-10 property.
15-11 Sec. 2306.058. PUBLIC INFORMATION AND HEARINGS ON LOW INCOME
15-12 HOUSING TAX CREDIT PROGRAM. (a) The department shall provide
15-13 information regarding the low income housing tax credit program,
15-14 including notice of public hearings, meetings, and opening and
15-15 closing dates for applications for a low income housing tax credit,
15-16 to local housing departments, newspapers, churches, nonprofit
15-17 organizations, residents of projects that are the subject of tax
15-18 credit applications, and other interested persons who request the
15-19 information.
15-20 (b) The department shall hold at least three public hearings
15-21 in different regions of the state to receive public comments on low
15-22 income housing tax credit applications. The department shall make
15-23 copies of submitted applications for low income housing tax credits
15-24 available to the public at least 30 days before the date of each
15-25 public hearing.
16-1 SECTION 7. Subchapter D, Chapter 2306, Government Code, is
16-2 amended by adding Section 2306.0661 to read as follows:
16-3 Sec. 2306.0661. PUBLIC HEARINGS. (a) The department shall
16-4 encourage informed and effective public participation in the
16-5 department's programs and operations through holding public
16-6 hearings and soliciting and accepting public comments during those
16-7 hearings. In holding a public hearing, the department shall ensure
16-8 that:
16-9 (1) the location of the hearing is:
16-10 (A) in a public building or facility;
16-11 (B) accessible to persons with disabilities; and
16-12 (C) reasonably accessible by public
16-13 transportation;
16-14 (2) the hearing is scheduled at a time that does not
16-15 conflict with the ordinary work day so that more persons are able
16-16 to attend; and
16-17 (3) child care is provided during the hearing if the
16-18 department anticipates more than 50 persons in attendance.
16-19 (b) In scheduling a public hearing, the department shall:
16-20 (1) publish notice of the time, place, and subject of
16-21 the hearing in a newspaper of general circulation in the community
16-22 in which the hearing is to be held not later than the 21st day
16-23 before the date of the hearing;
16-24 (2) provide notice of the hearing to each public
16-25 library in the community in which the hearing is to be held for
17-1 posting in a public area of the library;
17-2 (3) provide notice of the hearing to:
17-3 (A) each member of the board; and
17-4 (B) each member of an advisory committee
17-5 consulted by the department during preparation of the state low
17-6 income housing plan;
17-7 (4) make a reasonable effort to inform interested
17-8 persons and organizations of the hearing;
17-9 (5) make information about the hearing, including
17-10 documents, proposals, and plans to be discussed at the hearing,
17-11 available through the Internet in accordance with Section 2306.077;
17-12 and
17-13 (6) provide an opportunity for persons to transmit
17-14 comments on the subject of the hearing through the Internet, in
17-15 accordance with rules adopted by the board.
17-16 SECTION 8. Section 2306.068, Government Code, is amended to
17-17 read as follows:
17-18 Sec. 2306.068. INTERAGENCY COOPERATION. An agency or
17-19 institution of the state shall cooperate with the department by
17-20 providing personnel, information, and technical advice as the
17-21 department assists the governor in:
17-22 (1) the coordination of federal and state activities
17-23 affecting local government; and
17-24 (2) providing affordable housing for individuals and
17-25 families of low, [and] very low, and extremely low income and
18-1 families of middle and moderate income.
18-2 SECTION 9. Section 2306.072, Government Code, is amended by
18-3 amending Subsections (a) and (c) and adding Subsection (d) to read
18-4 as follows:
18-5 (a) Not later than March 1 of each year [the 100th day after
18-6 the last day of the fiscal year], the director shall prepare and
18-7 submit to the board an annual report of the department's activities
18-8 for the preceding fiscal year.
18-9 (c) The report must include:
18-10 (1) a complete operating and financial statement of
18-11 the department;
18-12 (2) a comprehensive statement of the activities of the
18-13 department during the preceding fiscal year to address the needs
18-14 identified in the state low income housing plan prepared as
18-15 required by Section 2306.0721, including:
18-16 (A) a statistical and narrative analysis of the
18-17 department's performance in addressing the housing needs of
18-18 individuals and families of low, [and] very low, and extremely low
18-19 income;
18-20 (B) the ethnic and racial composition of
18-21 individuals and families applying for and receiving assistance from
18-22 each housing-related program operated by the department; and
18-23 (C) the department's progress in meeting the
18-24 goals established in the previous housing plan;
18-25 (3) an explanation of the efforts made by the
19-1 department to ensure the participation of individuals of low, very
19-2 low, and extremely low income and their community-based
19-3 institutions in every aspect of department programs that affect
19-4 them;
19-5 (4) a statement of the evidence that the department
19-6 has made an affirmative effort to ensure the involvement of
19-7 individuals of low, very low, and extremely low income and their
19-8 community-based institutions in the allocation of funds and the
19-9 planning process;
19-10 (5) a statistical analysis, delineated according to
19-11 each ethnic and racial group served by the department, that
19-12 indicates the progress made by the department in implementing the
19-13 state low income housing plan in each of the uniform state service
19-14 regions; and
19-15 (6) an analysis of fair housing opportunities in each
19-16 housing development that receives financial assistance from the
19-17 department that includes the following information for each housing
19-18 development that contains 20 or more living units:
19-19 (A) the street address and municipality or
19-20 county in which the property is located;
19-21 (B) the total number of units reported by
19-22 bedroom size;
19-23 (C) the total number of units designed for
19-24 individuals who are physically challenged or who have special needs
19-25 and the number of these individuals served annually as reported by
20-1 each housing sponsor;
20-2 (D) a statistical analysis of average rents
20-3 reported by region, as defined in the comprehensive housing
20-4 affordability strategy;
20-5 (E) the race or ethnic makeup of each project as
20-6 reported annually by each housing sponsor;
20-7 (F) the number of units occupied by individuals
20-8 receiving government-supported housing assistance as reported by
20-9 each housing sponsor;
20-10 (G) a statement as to whether the department has
20-11 been notified of a violation of the fair housing law that has been
20-12 filed with the United States Department of Housing and Urban
20-13 Development, the Commission on Human Rights, or the United States
20-14 Department of Justice; and
20-15 (H) a statement as to whether the development
20-16 has any instances of material noncompliance with bond indentures or
20-17 deed restrictions discovered through the normal monitoring
20-18 activities and procedures that include meeting occupancy
20-19 requirements or rent restrictions imposed by deed restriction or
20-20 financing agreements.
20-21 (d) A report submitted to the governor and the legislature
20-22 in each even-numbered year must:
20-23 (1) include recommendations designed to strengthen and
20-24 support the Neighborhood Partnership Program in providing home
20-25 ownership opportunities to individuals and families of low, very
21-1 low, and extremely low income; and
21-2 (2) describe in detail actions the department has
21-3 taken to assist small municipalities and rural areas in obtaining
21-4 matching funds from public and private sources for participation in
21-5 the Neighborhood Partnership Program.
21-6 SECTION 10. Section 2306.0721, Government Code, is amended
21-7 by amending Subsections (a) and (c) and adding Subsections (d) and
21-8 (e) to read as follows:
21-9 (a) Not later than March 1 of each year [the 100th day after
21-10 the last day of the fiscal year], the director shall prepare and
21-11 submit to the board an integrated state low income housing plan for
21-12 the next fiscal year.
21-13 (c) The plan must include:
21-14 (1) an estimate and analysis of the housing needs of
21-15 the following populations in the state:
21-16 (A) individuals and families of middle,
21-17 moderate, low, [and] very low, and extremely low income;
21-18 (B) individuals with special needs; and
21-19 (C) homeless individuals;
21-20 (2) a proposal to use all available housing resources
21-21 to address the housing needs of the populations described by
21-22 Subdivision (1) by establishing funding levels for all
21-23 housing-related programs;
21-24 (3) an estimate of the number of federally assisted
21-25 housing units available for individuals and families of low, [and]
22-1 very low, and extremely low income and individuals with special
22-2 needs in each uniform state service region in the state;
22-3 (4) a description of state rules and policies that
22-4 govern the use of all available housing resources;
22-5 (5) a resource allocation plan that targets all
22-6 available housing resources to individuals and families of low,
22-7 [and] very low, and extremely low income and individuals with
22-8 special needs;
22-9 (6) a description of the department's efforts to
22-10 monitor and analyze the unused or underused federal resources of
22-11 other state agencies for housing-related services and services for
22-12 homeless individuals and the department's recommendations to ensure
22-13 the full use by the state of all available federal resources for
22-14 those services; [and]
22-15 (7) strategies to provide housing for individuals and
22-16 families with special needs;
22-17 (8) a description of the department's efforts to
22-18 encourage the construction of housing units that incorporate energy
22-19 efficient construction and appliances; and
22-20 (9) other information that the state is required to
22-21 include in the annual consolidated plan submitted to the United
22-22 States Department of Housing and Urban Development.
22-23 (d) The priorities and policies in another plan adopted by
22-24 the department must be consistent with the priorities and policies
22-25 established in the state low income housing plan.
23-1 (e) The department shall submit the plan as the annual
23-2 consolidated plan required by the United States Department of
23-3 Housing and Urban Development.
23-4 SECTION 11. Section 2306.0722, Government Code, is amended
23-5 to read as follows:
23-6 Sec. 2306.0722. PREPARATION OF PLAN AND REPORT. (a) Before
23-7 preparing the annual report under Section 2306.072 and the state
23-8 low income housing plan under Section 2306.0721, the director shall
23-9 meet with representatives of groups with an interest in low income
23-10 housing, nonprofit housing organizations, local government
23-11 officials, residents of low income housing, and other individuals
23-12 of low, very low, and extremely low income. The director shall
23-13 obtain the representatives' comments and suggestions related to the
23-14 prioritization and allocation of the department's resources related
23-15 to housing.
23-16 (b) In preparing the annual report under Section 2306.072
23-17 and the state low income housing plan under Section 2306.0721, the
23-18 director shall:
23-19 (1) coordinate local, state, and federal housing
23-20 resources, including tax exempt housing bond financing and low
23-21 income housing tax credits;
23-22 (2) set priorities for the available housing resources
23-23 to help the neediest individuals;
23-24 (3) evaluate the success of publicly supported housing
23-25 programs;
24-1 (4) survey and identify the unmet housing needs of
24-2 individuals the department is required to assist;
24-3 (5) ensure that housing programs benefit an individual
24-4 without regard to the individual's race, ethnicity, sex, or
24-5 national origin;
24-6 (6) develop housing opportunities for individuals of
24-7 low, [and] very low, and extremely low income and individuals with
24-8 special housing needs;
24-9 (7) develop housing programs through an open, fair,
24-10 and public process;
24-11 (8) set priorities for assistance in a manner that is
24-12 appropriate and consistent with the housing needs of the
24-13 populations described by Section 2306.0721(c)(1); [and]
24-14 (9) incorporate recommendations that are consistent
24-15 with the comprehensive housing affordability strategy and
24-16 performance report submitted annually by the state to the United
24-17 States Department of Housing and Urban Development; and
24-18 (10) identify the organizations and individuals
24-19 consulted by the department in preparing the annual report and
24-20 state low income housing plan and summarize and incorporate
24-21 comments and suggestions provided under Subsection (a).
24-22 SECTION 12. Section 2306.0723, Government Code, is amended
24-23 to read as follows:
24-24 Sec. 2306.0723. PUBLIC HEARINGS ON ANNUAL REPORT AND STATE
24-25 LOW INCOME HOUSING PLAN. (a) The department shall hold [a] public
25-1 hearings [hearing] on the annual report and the state low income
25-2 housing plan before the director submits the report and the plan to
25-3 the board. A public hearing shall be held in Dallas, El Paso,
25-4 Houston, and San Antonio and in at least three additional
25-5 municipalities selected by the department to represent
25-6 geographically diverse communities.
25-7 (b) In addition to any other necessary topics relating to
25-8 the annual report and the state low income housing plan, each
25-9 hearing must address:
25-10 (1) infrastructure needs;
25-11 (2) home ownership programs;
25-12 (3) rental housing programs;
25-13 (4) housing repair programs; and
25-14 (5) the concerns of individuals with special needs, as
25-15 defined by Section 2306.511.
25-16 (c) In addition to the notice required by Section
25-17 2306.0661(b), the department shall provide notice of each public
25-18 hearing required by Subsection (a) to:
25-19 (1) members of the legislature; and
25-20 (2) members of the advisory committee formed to assist
25-21 the department in developing the annual consolidated plan required
25-22 by the United States Department of Housing and Urban Development.
25-23 (d) The board shall hold a public hearing on the state low
25-24 income housing plan before the board submits the plan to the
25-25 governor and the legislature.
26-1 (e) [(c)] The board shall include with the plan the board
26-2 submits to the governor and legislature a written report of public
26-3 comments on the plan.
26-4 SECTION 13. Subchapter D, Chapter 2306, Government Code, is
26-5 amended by adding Section 2306.077 to read as follows:
26-6 Sec. 2306.077. ELECTRONIC AVAILABILITY OF INFORMATION
26-7 THROUGH THE INTERNET. (a) In this section, "Internet" means the
26-8 largest nonproprietary nonprofit cooperative public computer
26-9 network, popularly known as the Internet.
26-10 (b) The department, to the extent it considers it to be
26-11 feasible and appropriate, shall make information on the
26-12 department's programs, public hearings, and scheduled public
26-13 meetings available to the public through the Internet.
26-14 (c) The access to information allowed by this section:
26-15 (1) is in addition to the public's free access to the
26-16 information through other electronic or print distribution of the
26-17 information; and
26-18 (2) does not alter, diminish, or relinquish any
26-19 copyright or other proprietary interest or entitlement of this
26-20 state or a private entity under contract with the state.
26-21 SECTION 14. Section 2306.093, Government Code, is amended to
26-22 read as follows:
26-23 Sec. 2306.093. HOUSING ASSISTANCE GOAL. By action of the
26-24 board the community affairs division shall have a goal to apply a
26-25 minimum of 25 percent of the division's total housing-related funds
27-1 toward housing assistance for individuals and families of very low
27-2 and extremely low income.
27-3 SECTION 15. Section 2306.111(b), Government Code, is amended
27-4 to read as follows:
27-5 (b) The housing finance division shall adopt a goal to apply
27-6 a minimum of 25 percent of the division's total housing funds
27-7 toward housing assistance for individuals and families of very low
27-8 income and a minimum of 15 percent of the division's total housing
27-9 funds toward housing assistance for individuals and families of
27-10 extremely low income.
27-11 SECTION 16. Section 2306.125(a), Government Code, is amended
27-12 to read as follows:
27-13 (a) The department may institute a judicial action or
27-14 proceeding against a housing sponsor receiving a loan or owning a
27-15 housing development under this chapter to:
27-16 (1) enforce this chapter;
27-17 (2) enforce the terms and provisions of an agreement
27-18 or contract between the department and the recipient of a loan
27-19 under this chapter, including provisions regarding rental or
27-20 carrying charges and income limits as applied to tenants or
27-21 occupants;
27-22 (3) foreclose its mortgage; or
27-23 (4) protect:
27-24 (A) the public interest;
27-25 (B) individuals and families of low, [and] very
28-1 low, and extremely low income or families of middle and moderate
28-2 income;
28-3 (C) stockholders; or
28-4 (D) creditors of the sponsor.
28-5 SECTION 17. Section 2306.151, Government Code, is amended to
28-6 read as follows:
28-7 Sec. 2306.151. TARGET STRATEGY FOR BOND PROCEEDS. The board
28-8 shall have the specific duty and power to adopt a target strategy
28-9 for the percentage of mortgage revenue bond proceeds to be made
28-10 available to individuals and families of low, [and] very low, and
28-11 extremely low income.
28-12 SECTION 18. Section 2306.152, Government Code, is amended to
28-13 read as follows:
28-14 Sec. 2306.152. ELIGIBILITY CRITERIA. The board shall have
28-15 the specific duty and power to establish eligibility criteria for
28-16 participation in the housing finance division's programs for
28-17 individuals and families of low, [and] very low, and extremely low
28-18 income and families of middle and moderate income.
28-19 SECTION 19. Section 2306.171, Government Code, is amended to
28-20 read as follows:
28-21 Sec. 2306.171. GENERAL DUTIES OF DEPARTMENT RELATING TO
28-22 PURPOSES OF HOUSING FINANCE DIVISION. The department shall:
28-23 (1) develop policies and programs designed to increase
28-24 the number of individuals and families of low, [and] very low, and
28-25 extremely low income that participate in the housing finance
29-1 division's programs;
29-2 (2) work with municipalities, public agencies, housing
29-3 sponsors, and nonprofit corporations to provide:
29-4 (A) information on division programs; and
29-5 (B) technical assistance to municipalities and
29-6 nonprofit corporations;
29-7 (3) encourage private and nonprofit corporations and
29-8 state organizations to match the division's funds to assist in
29-9 providing affordable housing to individuals and families of low,
29-10 [and] very low, and extremely low income and families of middle and
29-11 moderate income;
29-12 (4) provide matching funds to municipalities, public
29-13 agencies, housing sponsors, and nonprofit developers who qualify
29-14 under the division's programs; and
29-15 (5) administer the state's allocation of federal funds
29-16 provided under the rental rehabilitation grant program authorized
29-17 by Section 17, Title I, of the United States Housing Act of 1937
29-18 (42 U.S.C. Section 1437o).
29-19 SECTION 20. Section 2306.180, Government Code, is amended to
29-20 read as follows:
29-21 Sec. 2306.180. ENCOURAGING HOME OWNERSHIP. The department
29-22 may encourage individual or cooperative home ownership among
29-23 individuals and families of low, [and] very low, and extremely low
29-24 income and families of middle and moderate income.
29-25 SECTION 21. Section 2306.182, Government Code, is amended to
30-1 read as follows:
30-2 Sec. 2306.182. LOANS TO LENDERS. The department may make
30-3 loans to mortgage lenders, public agencies, or other housing
30-4 sponsors and use the proceeds to make loans for multifamily housing
30-5 developments that will be substantially occupied by individuals and
30-6 families of low, [and] very low, and extremely low income or
30-7 families of middle and moderate income.
30-8 SECTION 22. Section 2306.202(b), Government Code, is amended
30-9 to read as follows:
30-10 (b) Use of the fund is limited to providing:
30-11 (1) assistance for individuals and families of low,
30-12 [and] very low, and extremely low income; and
30-13 (2) technical assistance and capacity building to
30-14 nonprofit organizations engaged in developing housing for
30-15 individuals and families of low, [and] very low, and extremely low
30-16 income.
30-17 SECTION 23. Section 2306.203, Government Code, is amended to
30-18 read as follows:
30-19 Sec. 2306.203. RULES REGARDING ADMINISTRATION OF HOUSING
30-20 TRUST FUND. The board shall adopt rules to administer the housing
30-21 trust fund, including rules providing:
30-22 (1) that the division give priority to programs that
30-23 maximize federal resources;
30-24 (2) for a process to set priorities for use of the
30-25 fund, including the distribution of fund resources under a request
31-1 for a proposal process developed and approved by the board;
31-2 (3) that the criteria used to rank proposals will
31-3 include the:
31-4 (A) leveraging of federal resources;
31-5 (B) cost-effectiveness of a proposed
31-6 development; and
31-7 (C) extent to which individuals and families of
31-8 very low and extremely low income are served by the development;
31-9 (4) that funds may not be made available to a
31-10 development that permanently and involuntarily displaces
31-11 individuals and families of low, very low, and extremely low
31-12 income;
31-13 (5) that the board attempt to allocate funds to
31-14 achieve a broad geographical distribution with:
31-15 (A) special emphasis on equitably serving rural
31-16 and nonmetropolitan areas; and
31-17 (B) consideration of the number and percentage
31-18 of income-qualified families in different geographical areas; and
31-19 (6) that multifamily housing developed or
31-20 rehabilitated through the fund remain affordable to
31-21 income-qualified households for at least 20 years.
31-22 SECTION 24. Section 2306.221, Government Code, is amended to
31-23 read as follows:
31-24 Sec. 2306.221. HOUSING DEVELOPMENT LOANS. To finance the
31-25 purchase, construction, remodeling, improvement, or rehabilitation
32-1 of housing developments for residential housing designed and
32-2 planned for individuals and families of low, [and] very low, and
32-3 extremely low income and families of middle and moderate income,
32-4 the department, on the terms and conditions stated in this chapter,
32-5 may:
32-6 (1) make, commit to make, and participate in the
32-7 making of mortgage loans, including federally insured loans to
32-8 housing sponsors; and
32-9 (2) make temporary loans and advances in anticipation
32-10 of permanent mortgage loans.
32-11 SECTION 25. Section 2306.222, Government Code, is amended to
32-12 read as follows:
32-13 Sec. 2306.222. CONTRACTS AND AGREEMENTS REGARDING HOUSING
32-14 DEVELOPMENTS. The department may enter into agreements and
32-15 contracts with housing sponsors and mortgage lenders under this
32-16 chapter to make or participate in mortgage loans for residential
32-17 housing for individuals and families of low, [and] very low, and
32-18 extremely low income and families of middle and moderate income.
32-19 SECTION 26. Section 2306.223, Government Code, is amended to
32-20 read as follows:
32-21 Sec. 2306.223. CRITERIA FOR FINANCING HOUSING DEVELOPMENT OF
32-22 HOUSING SPONSOR. Notwithstanding any other provision of this
32-23 chapter, the department may not finance a housing development
32-24 undertaken by a housing sponsor under this chapter, unless the
32-25 department first determines that:
33-1 (1) the housing development is necessary to provide
33-2 needed decent, safe, and sanitary housing at rentals or prices that
33-3 individuals or families of low, [and] very low, and extremely low
33-4 income or families of middle and moderate income can afford;
33-5 (2) the housing sponsor undertaking the proposed
33-6 housing development will supply well-planned and well-designed
33-7 housing for individuals or families of low, [and] very low, and
33-8 extremely low income or families of middle and moderate income;
33-9 (3) the housing sponsor is financially responsible;
33-10 (4) the financing of the housing development is a
33-11 public purpose and will provide a public benefit; and
33-12 (5) the housing development will be undertaken within
33-13 the authority granted by this chapter to the housing finance
33-14 division and the housing sponsor.
33-15 SECTION 27. Sections 2306.251(a) and (e), Government Code,
33-16 are amended to read as follows:
33-17 (a) The department may acquire and own real property on an
33-18 interim basis for sale or rental to:
33-19 (1) individuals and families of low, [and] very low,
33-20 and extremely low income; and
33-21 (2) nonprofit housing organizations and other housing
33-22 organizations to serve the needs of individuals and families of
33-23 low, [and] very low, and extremely low income.
33-24 (e) If the department acquires property under this section,
33-25 the department shall have an independent audit conducted annually
34-1 to analyze the property ownership program's:
34-2 (1) financial stability;
34-3 (2) cost-effectiveness; and
34-4 (3) effectiveness in serving individuals of low, [and]
34-5 very low, and extremely low income.
34-6 SECTION 28. Section 2306.252, Government Code, is amended to
34-7 read as follows:
34-8 Sec. 2306.252. [LOW AND VERY LOW INCOME] HOUSING RESOURCE
34-9 CENTER. (a) The board shall establish a [low and very low income]
34-10 housing resource center in the housing finance division.
34-11 (b) The center shall:
34-12 (1) provide educational material to housing advocates,
34-13 housing sponsors, borrowers, and tenants;
34-14 (2) provide technical assistance to nonprofit housing
34-15 sponsors;
34-16 (3) focus on marketing loans and other programs of the
34-17 housing finance division to individuals and families of low, [and]
34-18 very low, and extremely low income; and
34-19 (4) assist lenders in marketing loans to individuals
34-20 and families of low, [and] very low, and extremely low income.
34-21 (c) The primary mission of the housing resource center is to
34-22 assist individuals, local organizations, and local governments in
34-23 providing for the housing needs of individuals and families in
34-24 their communities by providing information to housing contractors,
34-25 nonprofit housing sponsors, and local governments on:
35-1 (1) local housing needs;
35-2 (2) housing programs;
35-3 (3) available funding sources; and
35-4 (4) laws that affect the creation, improvement, or
35-5 preservation of housing affordable to individuals and families of
35-6 low, very low, and extremely low income.
35-7 SECTION 29. Section 2306.273, Government Code, is amended to
35-8 read as follows:
35-9 Sec. 2306.273. LIMITATION ON APPLICATION OF CERTAIN
35-10 PROVISIONS OF SUBCHAPTER. Sections 2306.261 through 2306.271 do
35-11 not apply to a housing development:
35-12 (1) for which individuals or families of low, [and]
35-13 very low, and extremely low income or families of middle and
35-14 moderate income receive a mortgage loan under this chapter; and
35-15 (2) that initially is intended for occupancy by those
35-16 individuals or families.
35-17 SECTION 30. Section 2306.291(a), Government Code, is amended
35-18 to read as follows:
35-19 (a) The department may purchase and take assignments from
35-20 mortgage lenders or the federal government of notes and mortgages
35-21 evidencing loans or interest in loans for the construction,
35-22 remodeling, improvement or rehabilitation, purchase, leasing, or
35-23 refinancing of housing developments for individuals and families of
35-24 low, [and] very low, and extremely low income and families of
35-25 middle and moderate income.
36-1 SECTION 31. Section 2306.292, Government Code, is amended to
36-2 read as follows:
36-3 Sec. 2306.292. ELIGIBILITY OF MORTGAGE LOANS FOR PURCHASE.
36-4 A mortgage loan or interest in a mortgage loan is not eligible for
36-5 purchase by or on behalf of the department from a mortgage lender
36-6 unless the mortgage lender certifies that the mortgage loan or
36-7 interest in the mortgage loan is for a housing development for
36-8 individuals or families of low, [and] very low, and extremely low
36-9 income or for families of middle and moderate income.
36-10 SECTION 32. Section 2306.295, Government Code, is amended to
36-11 read as follows:
36-12 Sec. 2306.295. RULES GOVERNING PURCHASE AND SALE OF MORTGAGE
36-13 LOANS. The department shall adopt rules governing the purchase
36-14 and sale of mortgage loans and the application of sale proceeds,
36-15 including rules governing:
36-16 (1) procedures for submitting requests or inviting
36-17 proposals for the purchase and sale of mortgage loans or interest
36-18 in the mortgage loans;
36-19 (2) restrictions on the number of family units,
36-20 location, or other qualifications of residences to be financed by
36-21 residential mortgage loans;
36-22 (3) income limits of individuals and families of low,
36-23 [and] very low, and extremely low income or families of middle and
36-24 moderate income occupying a residence financed by a residential
36-25 mortgage loan;
37-1 (4) restrictions relating to the interest rates on
37-2 mortgage loans or the return realized by mortgage lenders;
37-3 (5) requirements for commitments by mortgage lenders
37-4 relating to mortgage loans;
37-5 (6) schedules of fees and charges necessary for
37-6 expenses and reserves of the housing finance division;
37-7 (7) resale of the housing development; and
37-8 (8) any other matter related to the power of the
37-9 department to purchase and sell mortgage loans or interests in
37-10 mortgage loans.
37-11 SECTION 33. Section 2306.311, Government Code, is amended to
37-12 read as follows:
37-13 Sec. 2306.311. ADMISSION TO HOUSING DEVELOPMENTS. Admission
37-14 to a housing development financed under this chapter that is leased
37-15 to tenants is limited to individuals or families of low, [and] very
37-16 low, and extremely low income and families of middle and moderate
37-17 income.
37-18 SECTION 34. Section 2306.316, Government Code, is amended to
37-19 read as follows:
37-20 Sec. 2306.316. LIMITATION ON APPLICATION OF SUBCHAPTER.
37-21 This subchapter does not apply to a housing development:
37-22 (1) for which individuals or families of low, [and]
37-23 very low, and extremely low income or families of middle and
37-24 moderate income receive a mortgage loan under this chapter; and
37-25 (2) that initially is intended for occupancy by those
38-1 persons or families.
38-2 SECTION 35. Subchapter P, Chapter 2306, Government Code, is
38-3 amended by adding Sections 2306.358 and 2306.359 to read as
38-4 follows:
38-5 Sec. 2306.358. ISSUANCE OF BONDS TO CERTAIN TAX-EXEMPT
38-6 ORGANIZATIONS. (a) The department may issue revenue bonds and
38-7 shall use the proceeds of those bonds to lend money for a project
38-8 described by Subsection (b) of an organization that:
38-9 (1) is exempt from federal income tax under Section
38-10 501(a) of the Internal Revenue Code of 1986 by being listed as an
38-11 exempt organization in Section 501(c)(3) of that code (26 U.S.C.
38-12 Sections 501(a) and 501(c)(3)); and
38-13 (2) uses the money for a project that will provide
38-14 affordable housing to individuals and families of low, very low,
38-15 and extremely low income.
38-16 (b) To receive a loan under this section for a project, an
38-17 eligible organization must:
38-18 (1) demonstrate to the department that the project is
38-19 carefully and conservatively underwritten to:
38-20 (A) ensure that the project is well run, well
38-21 maintained, and financially viable; and
38-22 (B) minimize the risk of the organization's
38-23 default;
38-24 (2) ensure that at least 70 percent of the housing to
38-25 be provided under the project is affordable housing provided to
39-1 individuals and families of low, very low, and extremely low
39-2 income; and
39-3 (3) enter into an agreement with the department in
39-4 which the organization:
39-5 (A) agrees during the term of the agreement to
39-6 reserve at least 70 percent of the housing to be provided under the
39-7 project for individuals and families of low, very low, and
39-8 extremely low income;
39-9 (B) ensures that the reserved housing will
39-10 remain affordable to individuals and families of low, very low, and
39-11 extremely low income during the term of the agreement;
39-12 (C) agrees to not discriminate against a tenant
39-13 applicant solely because the applicant receives public rental
39-14 assistance payments, unless at least 25 percent of the housing
39-15 units provided under the project are occupied by tenants who
39-16 receive public rental assistance payments; and
39-17 (D) agrees to adhere to the income occupancy and
39-18 rent limitations that apply to projects under the low income
39-19 housing tax credit program.
39-20 (c) The agreement may provide for the lease or sale of the
39-21 project to a nonprofit corporation approved by the department
39-22 subject to the conditions specified in Subsection (b)(3).
39-23 (d) The department or the Texas Housing Corporation may not
39-24 use state or federal money or another resource to provide for
39-25 credit enhancement of a bond issued under this section unless the
40-1 money or resource is used to subsidize housing units, or the
40-2 prorated share of the units' amenities and common areas, that are
40-3 reserved exclusively for occupancy by individuals and families of
40-4 very low and extremely low income who are not required to pay more
40-5 than 33 percent of their income for rent.
40-6 Sec. 2306.359. TRANSFER OF CERTAIN FEES TO HOUSING TRUST
40-7 FUND. (a) Not later than August 31 of each year, the comptroller
40-8 shall:
40-9 (1) determine the amount of fees sufficient to cover
40-10 the reasonable costs and expenses of issuing bonds described by
40-11 Section 2306.358; and
40-12 (2) subtract that amount from the amount of fees the
40-13 department collects in connection with the issuance of those bonds.
40-14 (b) If a positive amount results from the computation under
40-15 Subsection (a), the comptroller shall transfer the computed amount
40-16 from the fund in which the fees are deposited to the housing trust
40-17 fund established under Subchapter I.
40-18 SECTION 36. Section 2306.581(1), Government Code, is amended
40-19 to read as follows:
40-20 (1) "Colonia" means a geographic area located in a
40-21 county some part of which is within 150 miles of the international
40-22 border of this state and that:
40-23 (A) has a majority population composed of
40-24 individuals and families of low, [income and] very low, and
40-25 extremely low income, based on the federal Office of Management and
41-1 Budget poverty index, and meets the qualifications of an
41-2 economically distressed area under Section 17.921, Water Code; or
41-3 (B) has the physical and economic
41-4 characteristics of a colonia, as determined by the department.
41-5 SECTION 37. Sections 2306.586(a) and (c), Government Code,
41-6 are amended to read as follows:
41-7 (a) The purpose of a self-help center is to assist
41-8 individuals and families of low, [income and] very low, and
41-9 extremely low income to finance, refinance, construct, improve, or
41-10 maintain a safe, suitable home in the colonias' designated service
41-11 area or in another area the department has determined is suitable.
41-12 (c) A self-help center may serve individuals and families of
41-13 low, [income and] very low, and extremely low income by:
41-14 (1) providing assistance in obtaining loans or grants
41-15 to build a home;
41-16 (2) teaching construction skills necessary to repair
41-17 or build a home;
41-18 (3) providing model home plans;
41-19 (4) operating a program to rent or provide tools for
41-20 home construction and improvement for the benefit of property
41-21 owners in colonias who are building or repairing a residence or
41-22 installing necessary residential infrastructure;
41-23 (5) helping to obtain, construct, access, or improve
41-24 the service and utility infrastructure designed to service
41-25 residences in a colonia, including potable water, wastewater
42-1 disposal, drainage, streets, and utilities;
42-2 (6) surveying or platting residential property that an
42-3 individual purchased without the benefit of a legal survey, plat,
42-4 or record;
42-5 (7) providing credit and debt counseling related to
42-6 home purchase and finance;
42-7 (8) applying for grants and loans to provide housing
42-8 and other needed community improvements;
42-9 (9) providing other services that the self-help
42-10 center, with the approval of the department, determines are
42-11 necessary to assist colonia residents in improving their physical
42-12 living conditions, including help in obtaining suitable alternative
42-13 housing outside of a colonia's area; and
42-14 (10) providing assistance in obtaining loans or grants
42-15 to enable an individual or a family to acquire fee simple title to
42-16 property that originally was purchased under a contract for a deed,
42-17 contract for sale, or other executory contract.
42-18 SECTION 38. Section 2306.605, Government Code, is amended to
42-19 read as follows:
42-20 Sec. 2306.605. ACCEPTANCE OF DONATIONS. The department may
42-21 accept gifts and grants of money or property under this chapter and
42-22 shall spend the money and use the property for the purpose for
42-23 which the donation was made, except that the expenditure of money
42-24 or use of property must promote the acceptance of HUD-Code
42-25 manufactured homes as a viable source of housing for extremely low,
43-1 very low, low, [and] moderate, and middle income families.
43-2 SECTION 39. Sections 7(a) and (c), Chapter 1092, Acts of the
43-3 70th Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's
43-4 Texas Civil Statutes), are amended to read as follows:
43-5 (a) Except as provided in Subsection (b) of this section,
43-6 the issuer shall close on the bonds for which a reservation has
43-7 been granted not later than the 150th [90th] day after the
43-8 reservation date.
43-9 (c) If the issuer does not timely close on the bonds, the
43-10 issue's reservation is canceled and during the 180-day [120-day]
43-11 period beginning on the reservation date of the canceled
43-12 reservation:
43-13 (1) the issuer or any other issuer may not submit an
43-14 application for a reservation for the same project; and
43-15 (2) the issuer is eligible for a carryforward
43-16 designation for the project only as provided by Section 9 of this
43-17 Act.
43-18 SECTION 40. Section 2306.027(a)(6), Government Code, as
43-19 amended by this Act, does not apply to a person appointed to the
43-20 board of the Texas Department of Housing and Community Affairs
43-21 before the effective date of this Act.
43-22 SECTION 41. The changes in law made by Section 39 of this
43-23 Act apply to a bond issue the reservation date for which is after
43-24 the 90th day before the effective date of this Act.
43-25 SECTION 42. This Act does not affect the validity of any
44-1 type of assistance, including loans and grants, provided by the
44-2 Texas Department of Housing and Community Affairs before the
44-3 effective date of this Act.
44-4 SECTION 43. (a) Except as otherwise provided by this Act,
44-5 this Act takes effect immediately.
44-6 (b) Section 35 of this Act takes effect September 1, 1997.
44-7 SECTION 44. The importance of this legislation and the
44-8 crowded condition of the calendars in both houses create an
44-9 emergency and an imperative public necessity that the
44-10 constitutional rule requiring bills to be read on three several
44-11 days in each house be suspended, and this rule is hereby suspended,
44-12 and that this Act take effect and be in force according to its
44-13 terms, and it is so enacted.