Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By: Barrientos S.B. No. 1363
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the operations, powers, and duties of the Department of
1-2 Housing and Community Affairs.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2306.004, Government Code, is amended to
1-5 read as follows:
1-6 Sec. 2306.004. Definitions. In this chapter:
1-7 (1) "Board" means the governing board of the
1-8 department.
1-9 (2) "Bond" means an evidence of indebtedness or other
1-10 obligation, regardless of the source of payment, issued by the
1-11 department under Subchapter P, including a bond, note, or bond or
1-12 revenue anticipation note, regardless of whether the obligation is
1-13 general or special, negotiable or nonnegotiable, in bearer or
1-14 registered form, in certified or book-entry form, in temporary or
1-15 permanent form, or with or without interest coupons.
1-16 (3) "Contract for Deed" means a seller-financed
1-17 contract for the conveyance of real property under which legal
1-18 title does not pass to the purchaser until consideration under the
1-19 contract is fully paid to the seller and the seller's remedy for
1-20 nonpayment is recission or forfeiture and acceleration against a
1-21 purchaser rather than judicial or nonjudicial foreclosure.
1-22 (4) "Department" means the Texas Department of Housing
1-23 and Community Affairs.
2-1 (5) [(4)] "Director" means the executive director of
2-2 the department.
2-3 (6) [(5)] "Economically depressed or blighted area"
2-4 means an area:
2-5 (A) that is a qualified census tract as defined
2-6 in Section 143, Internal Revenue Code (26 U.S.C. Section 143) or
2-7 has been determined by the housing finance division to be [a
2-8 qualified census tract or] an area of chronic economic distress
2-9 under Section 143 [103A], Internal Revenue Code [of 1954] (26
2-10 U.S.C. Section 143 [103A)]; or
2-11 (B) established in a municipality that has a
2-12 substantial number of substandard, slum, deteriorated, or
2-13 deteriorating structures and that suffers from a high relative rate
2-14 of unemployment; or
2-15 (C) that has been designed and included in a
2-16 reinvestment zone [tax increment district] created under chapter
2-17 311, Tax Code [695, Acts of the 66th Legislature, Regular Session,
2-18 1979 (Article 1066d, Vernon's Texas Civil Statutes)].
2-19 (7) [(6)] "Elderly individual" means an individual of
2-20 the age specified by the applicable federal program or established
2-21 by the board [60 years of age or older].
2-22 (8) [(7)] "Family of moderate income" means a family:
2-23 (A) that is determined by the board to require
2-24 assistance, taking into account:
2-25 (i) the amount of the total income
3-1 available for housing needs of the individuals and families;
3-2 (ii) the size of the family;
3-3 (iii) the cost and condition of available
3-4 housing facilities;
3-5 (iv) the ability of the individuals and
3-6 families to compete successfully in the private housing market and
3-7 to pay the amounts required by private enterprise for sanitary,
3-8 decent, and safe housing; and
3-9 (v) standards established for various
3-10 federal programs determining eligibility based on income; and
3-11 (B) that does not qualify as a family of low
3-12 income.
3-13 (9) [(8)] "Federal government" means the United States
3-14 of America and includes any corporate or other instrumentality of
3-15 the United States of America, including the Resolution Trust
3-16 Corporation.
3-17 (10) [(9)] "Federal mortgage" means a mortgage loan
3-18 for residential housing:
3-19 (A) that is made by the federal government; or
3-20 (B) for which a commitment to make has been
3-21 given by the federal government.
3-22 (11) [(10)] "Federally assisted new communities" means
3-23 federally assisted areas that receive or will receive assistance in
3-24 the form of loan guarantees under Title X of the National Housing
3-25 Act (12 U.S.C. Section 1701 et seq.), and a portion of that
4-1 federally assisted area has received grants under Section 107(a)(1)
4-2 of the Housing and Community Development Act of 1974, as amended
4-3 (42 U.S.C. Section 5301 et seq.).
4-4 (12) [(11)] "Federally insured mortgage" means a
4-5 mortgage loan for residential housing that:
4-6 (A) is insured or guaranteed by the federal
4-7 government; or
4-8 (B) the federal government has committed to
4-9 insure or guarantee.
4-10 (13) [(12)] "Housing development" means property or
4-11 work or a project, building, structure, facility, or undertaking,
4-12 whether existing, new construction, remodeling, improvement, or
4-13 rehabilitation, that meets or is designed to meet minimum property
4-14 standards required by the department and that is financed under the
4-15 provisions of this chapter for the primary purpose of providing
4-16 sanitary, decent, and safe dwelling accommodations for rent, lease,
4-17 use, or purchase by individuals and families of low and very low
4-18 income and families of moderate income in need of housing. The
4-19 term includes:
4-20 (A) buildings, structures, land, equipment,
4-21 facilities, or other real or personal properties that are
4-22 necessary, convenient, or desirable appurtenances, including
4-23 streets, water, sewers, utilities, parks, site preparation,
4-24 landscaping, stores, offices, and other nonhousing facilities, such
4-25 as administrative, community, and recreational facilities the
5-1 department determines to be necessary, convenient, or desirable
5-2 appurtenances; and
5-3 (B) single and multifamily dwellings in rural
5-4 and urban areas.
5-5 (14) [(13)] "Housing sponsor" means:
5-6 (A) an individual, including an individual or
5-7 family of low and very low income or family of moderate income,
5-8 joint venture, partnership, limited partnership, trust, firm,
5-9 corporation, or cooperative that is approved by the department as
5-10 qualified to own, construct, acquire, rehabilitate, operate,
5-11 manage, or maintain a housing development, subject to the
5-12 regulatory powers of the department and other terms and conditions
5-13 in this chapter; or
5-14 (B) in an economically depressed or blighted
5-15 area, or in a federally assisted new community located within a
5-16 home-rule municipality, the term may include an individual or
5-17 family whose income exceeds the moderate income level if at least
5-18 90 percent of the total mortgage amount available under a mortgage
5-19 revenue bond issue is designated for individuals and families of
5-20 low income or families of moderate income.
5-21 (15) [(14)] "Individuals and families of low income"
5-22 means individuals and families earning not more than 80 percent of
5-23 the area median income or applicable federal poverty line, as
5-24 determined under either Section 2306.123 or Section 2306.1231.
5-25 (16) [(15)] "Individuals and families of very low
6-1 income" means individuals and families earning not more than 60
6-2 percent of the area median income or applicable federal poverty
6-3 line, as determined under either Section 2306.123 or Section
6-4 2306.1231.
6-5 (17) [(16)] "Land development" means:
6-6 (A) acquiring land for residential housing
6-7 construction; and
6-8 (B) making, installing, or constructing
6-9 nonresidential improvements that the department determines are
6-10 necessary or desirable for a housing development to be financed by
6-11 the department, including:
6-12 (i) waterlines and water supply
6-13 installations;
6-14 (ii) sewer lines and sewage disposal
6-15 installations;
6-16 (iii) steam, gas, and electric lines and
6-17 installations; and
6-18 (iv) roads, streets, curbs, gutters, and
6-19 sidewalks, whether on or off the site.
6-20 (18) [(17)] "Local government" means a county,
6-21 municipality, special district, or any other political subdivision
6-22 of the state, a public, nonprofit housing finance corporation
6-23 created under Chapter 394, Local Government Code, or a combination
6-24 of those entities.
6-25 (19) [(18)] "Mortgage" means an [interest-bearing]
7-1 obligation, including a mortgage, mortgage deed, bond, note, deed
7-2 of trust, or other instrument, that is a lien:
7-3 (A) on real property; or
7-4 (B) on a leasehold under a lease having a
7-5 remaining term that, at the time the lien is acquired, does not
7-6 expire until after the maturity date of the [interest-bearing]
7-7 obligation secured by the lien.
7-8 (20) [(19)] "Mortgage lender" means a bank, trust
7-9 company, savings bank, mortgage company, mortgage banker, credit
7-10 union, national banking association, savings and loan association,
7-11 life insurance company, or other financial institution authorized
7-12 to transact business in this state and approved as a mortgage
7-13 lender by the department.
7-14 (21) [(20)] "Mortgage loan" means an
7-15 [interest-bearing] obligation secured by a mortgage.
7-16 (22) [(21)] "Municipality" includes only a
7-17 municipality in this state.
7-18 (23) "Person" includes an individual, the department,
7-19 any corporation, organization, government or governmental
7-20 subdivision or agency, business trust, estate, trust, partnership,
7-21 association, joint venture, and any other legal entity.
7-22 (24) [(22)] "Public agency" means the department and
7-23 any [an] agency, board, authority, department, commission,
7-24 political subdivision, municipal corporation, district, public
7-25 corporation, body politic, or instrumentality of this state,
8-1 including a county, municipality, housing authority,
8-2 state-supported institution of higher education, school district,
8-3 junior college, other district or authority, or other type of
8-4 governmental entity of this state.
8-5 (25) [(23)] "Real estate owned contractor" means a
8-6 person required to meet the obligations of a contract with the
8-7 department [housing finance division] for managing and marketing
8-8 foreclosed property.
8-9 (26) [(24)] "Real property" means land, including
8-10 improvements and fixtures on the land, property of any nature
8-11 appurtenant to the land or used in connection with the land, and a
8-12 legal or equitable estate, interest, or right in land, including
8-13 leasehold interests, terms for years, and a judgment, mortgage, or
8-14 other lien.
8-15 (27) [(25)] "Reserve fund" means any [the housing
8-16 finance division's] reserve fund established by the department.
8-17 (28) [(26)] "Residential housing" means a specific
8-18 work or improvement undertaken primarily to provide dwelling
8-19 accommodations, including the acquisition, construction,
8-20 reconstruction, remodeling, improvement, or rehabilitation of land
8-21 and buildings and improvements to the buildings for residential
8-22 housing and other incidental or appurtenant nonhousing facilities.
8-23 (29) [(27)] "Servicer" means a person required to meet
8-24 contractual obligations with the housing finance division or with a
8-25 mortgage lender relating to a loan financed under Subchapter J,
9-1 including:
9-2 (A) purchasing mortgage certificates backed by
9-3 mortgage loans;
9-4 (B) collecting principal and interest from the
9-5 borrower;
9-6 (C) sending principal and interest payments to
9-7 the division;
9-8 (D) preparing periodic reports;
9-9 (E) notifying the primary mortgage and pool
9-10 insurers of delinquent and foreclosed loans; and
9-11 (F) filing insurance claims on foreclosed
9-12 property.
9-13 SECTION 2. Section 2306.021(b), Government Code, is amended
9-14 to read as follows:
9-15 (b) The department is composed of:
9-16 (1) the community affairs division;
9-17 (2) the housing finance division;
9-18 (3) the manufactured housing division; [and]
9-19 (4) the community development division; and
9-20 (5) any other division created by the director.
9-21 SECTION 3. Section 2306.032, Government Code, is amended to
9-22 read as follows:
9-23 Sec. 2306.032. Board Meetings. (a) The board may hold
9-24 meetings when called by the presiding officer, the director, or
9-25 three of the members.
10-1 (b) The board shall keep complete minutes of board meetings.
10-2 The accounts, minutes, and other records shall be maintained by
10-3 [kept at the principal office of] the department.
10-4 (c) Meetings of the board are subject to the open meetings
10-5 law, Chapter 551, except that discussions concerning the
10-6 proprietary financial or commercial affairs of a private applicant,
10-7 borrower, or other recipient of funds are not required to be held
10-8 in an open meeting.
10-9 SECTION 4. Section 2306.053, Government Code, is amended by
10-10 amending Subsection (b) and by adding Subsection (c) to read as
10-11 follows:
10-12 (b) The department may:
10-13 (1) [sue and be sued, or plead and be impleaded;]
10-14 [(2)] act for and on behalf of this state;
10-15 (2) [(3)] adopt an official seal or alter it;
10-16 (3) [(4)] adopt and enforce bylaws and rules;
10-17 (4) [(5)] contract with the federal government, state,
10-18 and any public agency, mortgage lender, person, or other entity;
10-19 (5) [(6)] designate mortgage lenders to act for the
10-20 department for the origination, processing, and servicing of the
10-21 department's mortgage loans under conditions agreed to by the
10-22 parties;
10-23 (6) [(7)] provide, contract, or arrange for
10-24 consolidated processing of a housing development to avoid
10-25 duplication;
11-1 (7) [(8)] encourage homeless individuals and
11-2 individuals of low or very low income to attend the department's
11-3 educational programs and assist those individuals in attending the
11-4 programs;
11-5 (8) [(9)] appoint and determine the qualifications,
11-6 duties, and tenure of its agents, counselors, and professional
11-7 advisors, including accountants, appraisers, architects, engineers,
11-8 financial consultants, housing construction and financing experts,
11-9 and real estate consultants;
11-10 (9) [(10)] administer federal and state housing,
11-11 community affairs, or community development programs, including the
11-12 low income housing tax credit program;
11-13 (10) [(11)] establish eligibility criteria for
11-14 individuals and families of low, very low, and moderate income to
11-15 participate in and benefit from programs administered by the
11-16 department; and
11-17 (11) execute funding agreements and obtain, retain,
11-18 and disseminate its records and other documents in electronic form;
11-19 and
11-20 (12) do all things necessary, convenient, or desirable
11-21 to carry out the powers expressly granted or necessarily implied by
11-22 this chapter.
11-23 (c) The department is subject to the public information law,
11-24 Chapter 552, except that the proprietary financial or commercial
11-25 records of a private applicant, borrower, or other recipient of
12-1 funds are not public information.
12-2 SECTION 5. Section 2306.072 is amended to read as follows:
12-3 Sec. 2306.072. ANNUAL STATE LOW INCOME HOUSING REPORT.
12-4 (a) Not later than March 1 [the 100th day after the last day] of
12-5 each [the fiscal] year, the director shall prepare and submit to
12-6 the board an annual report of the department's housing activities
12-7 for the preceding [fiscal] year.
12-8 (b) Not later than the 30th day after the date the board
12-9 receives the report, the board shall submit the report to the
12-10 governor, lieutenant governor, and speaker [legislature].
12-11 (c) The report must include:
12-12 (1) [a complete operating and financial statement of
12-13 the department;]
12-14 [(2)] a comprehensive statement of the activities of
12-15 the department during the preceding [fiscal] year to address the
12-16 needs identified in the state low income housing plan prepared as
12-17 required by Section 2306.0721, including:
12-18 (A) an [a statistical and narrative] analysis of
12-19 the department's performance in addressing the housing needs of
12-20 individuals and families of low and very low income;
12-21 (B) the ethnic and racial composition of
12-22 individuals and families [applying for and] receiving assistance
12-23 from each housing-related program operated by the department; and
12-24 (C) the department's progress in meeting the
12-25 goals established in the previous housing plan;
13-1 (2) [(3)] an explanation of the efforts made by the
13-2 department to involve [ensure] the participation of individuals of
13-3 low income and their community-based institutions in [every aspect
13-4 of] department programs that affect them;
13-5 (3) [(4)] a statement of the evidence that the
13-6 department has made an affirmative effort to involve [ensure the
13-7 involvement of] individuals of low income and their community-based
13-8 institutions in the allocation of funds and the planning process;
13-9 (4) [(5)] a statistical analysis, delineated according
13-10 to each ethnic and racial group served by the department, that
13-11 indicates the progress made by the department in implementing the
13-12 state low income housing plan in each of the uniform state service
13-13 regions; and
13-14 (5) [(6)] an analysis of [fair housing opportunities
13-15 in] each housing development that receives financial assistance
13-16 from the department that includes the following information for
13-17 each housing development that contains 20 or more living units:
13-18 (A) the street address and municipality or
13-19 county in which the property is located;
13-20 (B) the total number of units reported by
13-21 bedroom size;
13-22 (C) the total number of units designed for
13-23 individuals who are physically challenged or who have special needs
13-24 and the number of these individuals served annually as reported by
13-25 each housing sponsor;
14-1 (D) a statistical analysis of average rents
14-2 reported by county [region, as defined in the comprehensive housing
14-3 affordability strategy];
14-4 (E) the race or ethnic makeup of each project as
14-5 reported annually by each housing sponsor;
14-6 (F) the number of units occupied by individuals
14-7 receiving government-supported housing assistance as reported by
14-8 each housing sponsor;
14-9 (G) a statement as to whether the department has
14-10 been notified of a violation of the fair housing law that has been
14-11 filed with the United States Department of Housing and Urban
14-12 Development, the Commission on Human Rights, or the United States
14-13 Department of Justice; and
14-14 (H) a statement as to whether the development
14-15 has any instances of material noncompliance with bond indentures or
14-16 deed restrictions discovered through the normal monitoring
14-17 activities and procedures that include meeting occupancy
14-18 requirements or rent restrictions imposed by deed restriction or
14-19 financing agreements.
14-20 SECTION 6. Section 2306.0721 is amended to read as follows:
14-21 Sec. 2306.0721. Low Income Housing Plan. (a) Not later
14-22 than March 1 [the 100th day after the last day] of each [the
14-23 fiscal] year, the director shall prepare and submit to the board an
14-24 integrated state low income housing plan for the next year.
14-25 (b) Not later than the 30th day after the date the board
15-1 receives the plan, the board shall submit the plan to the governor,
15-2 lieutenant governor, and speaker [legislature].
15-3 (c) The plan must include:
15-4 (1) an estimate and analysis of the housing needs of
15-5 the following populations in the state:
15-6 (A) individuals and families of moderate, low,
15-7 and very low income;
15-8 (B) individuals with special needs; and
15-9 (C) homeless individuals;
15-10 (2) a proposal to use all available housing resources
15-11 to address the housing needs of the populations described by
15-12 Subdivision (1) by establishing funding levels for all
15-13 housing-related programs;
15-14 (3) an estimate of the number of [federally assisted]
15-15 housing units which have been assisted through department funding
15-16 and which are available for individuals and families of low and
15-17 very low income and individuals with special needs in each county
15-18 [uniform state service region] in the state;
15-19 (4) a description of state programs [rules and
15-20 policies] that govern the use of all available housing resources;
15-21 (5) a resource allocation plan that targets all of the
15-22 department's available housing resources to individuals and
15-23 families of low and very low income and individuals with special
15-24 needs;
15-25 (6) a description of the department's efforts to
16-1 monitor and analyze the unused or underused federal resources of
16-2 other state agencies for housing-related services and services for
16-3 homeless individuals and the department's recommendations to ensure
16-4 the full use by the state of all available resources for those
16-5 services; and
16-6 (7) strategies to provide housing for individuals and
16-7 families with special needs.
16-8 SECTION 7. Section 2306.0722, Government Code, is amended to
16-9 read as follows:
16-10 Sec. 2306.0722. Preparation of Plan and Report. In
16-11 preparing the annual report under Section 2306.072 and the state
16-12 low income housing plan under Section 2306.0721, the director
16-13 shall:
16-14 (1) coordinate local, state, and federal housing
16-15 resources, including tax exempt housing bond financing and low
16-16 income housing tax credits;
16-17 (2) set priorities for the available housing resources
16-18 to help the neediest individuals;
16-19 (3) evaluate the success of publicly supported housing
16-20 programs;
16-21 (4) survey and identify the unmet housing needs of
16-22 individuals the department is required to assist;
16-23 (5) ensure that housing programs benefit an individual
16-24 without regard to the individual's race, ethnicity, sex, or
16-25 national origin;
17-1 (6) develop housing opportunities for individuals and
17-2 families of low, and very low income, and individuals with special
17-3 needs;
17-4 (7) develop housing programs through an open, fair,
17-5 and public process;
17-6 (8) set priorities for assistance in a manner that is
17-7 appropriate and consistent with the housing needs of the
17-8 populations described by Section 2306.0721(c)(1); and
17-9 (9) incorporate recommendations that are consistent
17-10 with the consolidated plan [comprehensive housing affordability
17-11 strategy and performance report] submitted annually by the state to
17-12 the United States Department of Housing and Urban Development.
17-13 SECTION 8. Section 2306.073, Government Code, is amended to
17-14 read as follows:
17-15 Sec. 2306.073. PUBLIC PARTICIPATION REQUIREMENTS [HEARINGS].
17-16 (a) The department shall hold two [a] public hearings [hearing] on
17-17 [the annual report and] the annual state low income housing plan
17-18 and report before the director submits the report and the plan to
17-19 the board. At least two weeks prior to the first public hearing,
17-20 the department shall publish notice of the hearings and a summary
17-21 of the report and the plan in the Texas Register and in at least
17-22 one major newspaper of general circulation in the state. The
17-23 department shall accept comments on the report and the plan at the
17-24 public hearings and for at least thirty days after publication of
17-25 the notice of the hearings.
18-1 (b) The board shall hold a public hearing on the state low
18-2 income housing report and plan before the board submits the report
18-3 and the plan to the governor, lieutenant governor, and speaker
18-4 [legislature].
18-5 (c) The board shall include with the report and the plan the
18-6 board submits to the governor, lieutenant governor, and speaker
18-7 [legislature] a written summary [report] of public comments on the
18-8 report and the plan.
18-9 SECTION 9. Section 2306.076(a), Government Code, is amended
18-10 to read as follows:
18-11 Sec. 2306.076. Insurance. (a) The board may purchase from
18-12 department funds liability insurance for the director, board
18-13 members, [and] officers, and employees of the department.
18-14 SECTION 10. The heading of Subchapter E, Chapter 2306,
18-15 Government Code, is amended to read as follows:
18-16 SUBCHAPTER E. COMMUNITY AFFAIRS AND COMMUNITY DEVELOPMENT PROGRAMS
18-17 [DIVISION]
18-18 SECTION 11. Subchapter E, Government Code, is amended by
18-19 adding Section 2306.094 to read as follows:
18-20 Sec. 2306.094. SERVICES FOR THE HOMELESS. The department
18-21 shall administer the state's allocation of federal funds provided
18-22 under the Emergency Shelter Grants Program (42 U.S.C. Section 11371
18-23 et seq.) or its successor program, and any other federal funds
18-24 provided for the benefit of homeless individuals and families.
18-25 SECTION 12. Section 2306.097, Government Code, is amended to
19-1 read as follows:
19-2 Sec. 2306.097. Energy Services Program for Low-Income
19-3 Individuals. [(a)] The Energy Services Program for Low-Income
19-4 Individuals [is in the community affairs division. (b) The
19-5 program] shall operate in conjunction with the community services
19-6 block grant program and has jurisdiction and responsibility for
19-7 administration of the following elements of the State Low-Income
19-8 Energy Assistance Program, from whatever sources funded:
19-9 (1) the Energy Crisis Intervention Program;
19-10 (2) the weatherization program; and
19-11 (3) the Low-Income Home Energy Assistance Program.
19-12 SECTION 13. Section 2306.099, Government Code, is amended to
19-13 read as follows:
19-14 Sec. 2306.099. Transfer of Federal Funds. (a) The
19-15 department may enter into an interagency agreement with the Texas
19-16 Department of Commerce to reimburse the Texas Department of
19-17 Commerce for providing on behalf of the department marketing, [and]
19-18 underwriting, and any other services on the portion of the federal
19-19 community development block grant funds allocated by the department
19-20 for economic development activities.
19-21 (b) The department shall allocate not more than 20 percent
19-22 of the federal funds received by the department [to the Texas
19-23 Department of Commerce to be used] for economic development
19-24 activities.
19-25 (c) The activities undertaken by the Texas Department of
20-1 Commerce under this section must be monitored [approved] by the
20-2 department.
20-3 SECTION 14. Section 2306.111(a), Government Code, is amended
20-4 to read as follows:
20-5 (a) The department, through the [any] housing finance
20-6 division, shall administer all federal housing funds provided to
20-7 the state under the Cranston-Gonzales National Affordable Housing
20-8 Act (42 U.S.C. Section 12704 et seq.), or any other affordable
20-9 housing program.
20-10 SECTION 15. Section 2306.142, Government Code, is amended to
20-11 read as follows:
20-12 Sec. 2306.142. AUTHORIZATION OF BONDS. In its discretion,
20-13 the board shall authorize all bonds issued by the department
20-14 [housing finance division].
20-15 SECTION 16. Section 2306.171, Government Code, is amended to
20-16 read as follows:
20-17 Sec. 2306.171. General Duties of Department Relating to
20-18 Purposes of Housing Finance Division. The department shall:
20-19 (1) develop policies and programs designed to increase
20-20 the number of individuals and families of low, and very low income
20-21 and families of moderate income that participate in the housing
20-22 finance division's programs;
20-23 (2) work with municipalities, counties, public
20-24 agencies, housing sponsors, and nonprofit and for profit
20-25 corporations to provide:
21-1 (A) information on division programs; and
21-2 (B) technical assistance to municipalities,
21-3 counties, public agencies, and nonprofit corporations;
21-4 (3) encourage private [and] nonprofit and for profit
21-5 corporations and state organizations to match the division's funds
21-6 to assist in providing affordable housing to individuals and
21-7 families of low and very low income and families of moderate
21-8 income;
21-9 (4) provide matching funds to municipalities,
21-10 counties, public agencies, housing sponsors, and nonprofit
21-11 developers who qualify under the division's programs; and
21-12 (5) administer the state's allocation of federal funds
21-13 provided under the rental rehabilitation grant program authorized
21-14 by Section 17, Title I, of the United States Housing Act of 1937
21-15 (42 U.S.C. Section 1437o).
21-16 SECTION 17. Section 2306.177, Government Code, is amended to
21-17 read as follows:
21-18 Sec. 2306.177. Hearings. The department may:
21-19 (1) conduct hearings; and
21-20 (2) take testimony and proof, under oath, at public
21-21 hearings, on matters necessary to carry out the department's
21-22 [housing finance division's] purposes.
21-23 SECTION 18. Section 2306.201, Government Code, is amended to
21-24 read as follows:
21-25 Sec. 2306.201. Housing Trust Fund. (a) The housing trust
22-1 fund is a fund:
22-2 (1) administered by the department through the housing
22-3 finance division; and
22-4 (2) placed with the Texas Treasury Safekeeping Trust
22-5 Company.
22-6 (b) The fund consists of:
22-7 (1) appropriations or transfers made to the fund;
22-8 (2) unencumbered fund balances; [and]
22-9 (3) public or private gifts or grants;
22-10 (4) investment income; and
22-11 (5) funds from any other source.
22-12 SECTION 19. Section 2306.202, Government Code, is amended to
22-13 read as follows:
22-14 Sec. 2306.202. Use of Housing Trust Fund. (a) The
22-15 department, through the housing finance division, shall use the
22-16 housing trust fund to provide loans, grants, or other comparable
22-17 forms of assistance to local units of government, public housing
22-18 authorities, nonprofit and for-profit organizations, and
22-19 income-eligible individuals, families, and households to finance,
22-20 acquire, rehabilitate, and develop decent, safe, and sanitary
22-21 housing. Notwithstanding any other section of this chapter, the
22-22 department may also use the fund to acquire property to endow the
22-23 fund.
22-24 (b) Use of the fund is limited to providing:
22-25 (1) assistance for individuals and families of low and
23-1 very low income; [and]
23-2 (2) technical assistance and capacity building to
23-3 nonprofit organizations engaged in developing housing for
23-4 individuals and families of low and very low income; and
23-5 (3) security for repayment of revenue bonds issued to
23-6 provide financing for housing for individuals and families of low
23-7 and very low income.
23-8 SECTION 20. Section 2306.207(a), Government Code, is amended
23-9 to read as follows:
23-10 (a) The department [housing finance division] may create a
23-11 reserve fund with the state comptroller [treasurer] out of:
23-12 (1) proceeds from the sale of the department's
23-13 [division's] bonds; or
23-14 (2) other resources.
23-15 SECTION 21. Section 2306.232, Government Code, is amended to
23-16 read as follows:
23-17 Sec. 2306.232. Texas Housing Agency Loan or Guarantee. A
23-18 loan or guarantee made by the Texas Housing Agency becomes a loan
23-19 or guarantee of the department [housing finance division].
23-20 SECTION 22. The heading of Subchapter K, Chapter 2306,
23-21 Government Code, is amended to read as follows:
23-22 SUBCHAPTER K. PROPERTY OWNERSHIP AND HOUSING PROGRAMS
23-23 SECTION 23. Section 2306.251, Government Code, is amended to
23-24 read as follows:
23-25 Sec. 2306.251. Property Ownership Program. (a) The
24-1 department may acquire, [and] own, reconstruct, rehabilitate,
24-2 manage, or operate real property [on an interim basis];
24-3 (1) for sale or rental to:
24-4 (A) [(1)] individuals and families of low and
24-5 very low income and families of moderate income; and
24-6 (B) [(2)] nonprofit housing organizations and
24-7 other housing organizations to serve the needs of individuals and
24-8 families of low and very low income and families of moderate
24-9 income;
24-10 (2) [(b)] to preserve publicly financed or subsidized
24-11 housing;
24-12 (3) to participate in a risk sharing program entered
24-13 into with the United States Department of Housing and Urban
24-14 Development, any other insurer or guarantor of any United States
24-15 Department of Housing and Urban Development-related indebtedness,
24-16 any government sponsored enterprise, any housing finance agency or
24-17 corporation, or any public housing authority [Property acquired by
24-18 the department must qualify for home mortgage insurance after
24-19 rehabilitation].
24-20 (b) [(c)] The department may use money from the housing
24-21 trust fund, unencumbered fund balances, fees received by the
24-22 housing finance division, proceeds from the sale or rental of real
24-23 property, distribution of earnings under section 2306.557, or
24-24 appropriations, allocations, grants, or gifts from any public or
24-25 private source to purchase property under this section.
25-1 (c) [(d)] If the department [The housing finance division]
25-2 uses the housing trust fund to finance real property acquisitions,
25-3 it may not use more than 10 percent of the yearly balance of the
25-4 [housing trust] fund to acquire the real property.
25-5 (d) [(e)] If the department acquires property under this
25-6 section, the department shall submit an annual report to the board
25-7 [have an independent audit conducted annually] to analyze the
25-8 property ownership program's:
25-9 (1) financial stability;
25-10 (2) cost-effectiveness; and
25-11 (3) effectiveness in serving individuals and families
25-12 of low and very low income and families of moderate income.
25-13 SECTION 24. Section 2306.252, Government Code, is amended to
25-14 read as follows:
25-15 Sec. 2306.252. Low and Very Low Income Housing Resource
25-16 Center. (a) The board shall establish a low and very low income
25-17 housing resource center in the housing finance division.
25-18 (b) The center shall:
25-19 (1) provide educational material to housing advocates,
25-20 housing sponsors, borrowers, and tenants;
25-21 (2) provide technical assistance to nonprofit housing
25-22 sponsors; and
25-23 [(3) focus on marketing loans and other programs of
25-24 the housing finance division to individuals and families of low and
25-25 very low income].
26-1 (3) [(4)] assist [lenders] in the development of
26-2 housing policy, including the annual state low income housing plan
26-3 and report and the consolidated plan [marketing loans to
26-4 individuals and families of low and very low income].
26-5 SECTION 25. Section 2306.267, Government Code, is amended to
26-6 read as follows:
26-7 Sec. 2306.267. COMPLIANCE WITH APPLICABLE LAWS, RULES, AND
26-8 CONTRACT TERMS. The department may order a housing sponsor to
26-9 perform or refrain from performing certain acts in order to comply
26-10 with the law, department [housing finance division] rules, or terms
26-11 of a contract or agreement to which the housing sponsor is a party.
26-12 SECTION 26. Section 2306.270, Government Code, is amended to
26-13 read as follows:
26-14 Sec. 2306.270. Regulation of Retirement of Capital
26-15 Investment or Redemption of Stock. The department shall regulate
26-16 the retirement of a capital investment or the redemption of stock
26-17 of a limited profit housing sponsor if the retirement or
26-18 redemption, when added to a dividend or other distribution, exceeds
26-19 in any one fiscal year the permitted percentage, as allowed by the
26-20 department, [housing finance division's rules] of the original face
26-21 amount of the limited profit housing sponsor's investment or equity
26-22 in a housing development.
26-23 SECTION 27. Section 2306.291(a), Government Code, is amended
26-24 to read as follows:
26-25 (a) The department may purchase and take assignments from
27-1 mortgage lenders or the federal government of notes and other
27-2 obligations, including contracts for deed, mortgages, or other
27-3 obligations evidencing loans or interest in loans for the
27-4 construction, remodeling, improvement or rehabilitation, purchase,
27-5 leasing, or refinancing of housing developments for individuals and
27-6 families of low and very low income and families of moderate
27-7 income.
27-8 SECTION 28. Section 2306.351(a), Government Code, is amended
27-9 to read as follows:
27-10 (a) The department may issue bonds under this chapter,
27-11 including qualified 501(c)(3) bonds pursuant to Section 145 of the
27-12 Internal Revenue Code of 1986 (26 U.S.C. Section 145), and may:
27-13 (1) provide for and secure payment of the bonds;
27-14 (2) provide for the rights of the holders of the
27-15 bonds, as permitted by this chapter and the Texas Constitution; and
27-16 (3) purchase, hold, cancel, resell, or otherwise
27-17 dispose of its bonds, subject to restrictions in a resolution
27-18 authorizing issuance of its bonds.
27-19 SECTION 29. Section 2306.357, Government Code, is amended to
27-20 read as follows:
27-21 Sec. 2306.357. Bonds Issued by Texas Housing Agency. A
27-22 general obligation or revenue bond issued by the Texas Housing
27-23 Agency becomes a general obligation or revenue bond of the
27-24 department [housing finance division].
27-25 SECTION 30. Section 2306.375, Government Code, is amended to
28-1 read as follows:
28-2 Sec. 2306.375. Personal Liability of Board Member or
28-3 Director. A member of the board or the director is not liable
28-4 personally for bonds issued or contracts executed by the department
28-5 [housing finance division] or for any other action taken in
28-6 accordance with the powers and duties authorized by this chapter.
28-7 SECTION 31. Section 2306.411(a), Government Code, is amended
28-8 to read as follows:
28-9 (a) In addition to other security for the department's bonds
28-10 authorized by this chapter, payment of the principal and interest
28-11 and redemption premium, if any, on the department's bonds may be
28-12 secured by a first or subordinate lien on and pledge of all or part
28-13 of:
28-14 (1) the department's assets and real, personal, or
28-15 mixed property, including:
28-16 (A) mortgages or other obligations securing the
28-17 assets of property;
28-18 (B) investments; and
28-19 (C) trust agreements or trust indentures
28-20 administered by one or more corporate trustees as allowed by the
28-21 board; and
28-22 (2) the reserves or funds of the department [housing
28-23 finance division].
28-24 SECTION 32. Section 2306.412(a), Government Code, is amended
28-25 to read as follows:
29-1 (a) A lien on or pledge of revenues, income, assets,
29-2 reserves, funds, or other resources of the department, [housing
29-3 finance division] as authorized by this chapter, is valid and
29-4 binding from the time of payment for and delivery of the bonds
29-5 authorized by the board resolution creating or confirming the lien
29-6 or pledge.
29-7 SECTION 33. Section 2306.491, Government Code, is amended to
29-8 read as follows:
29-9 Sec. 2306.491. Bonds Negotiable Instruments.
29-10 Notwithstanding any other statute, a bond and interest coupon
29-11 issued and delivered by the department [housing finance division]
29-12 is a negotiable instrument under the Uniform Commercial Code,
29-13 except that the bond may be registered or subject to registration
29-14 under this chapter.
29-15 SECTION 34. Section 2306.513, Government Code, is amended to
29-16 read as follows:
29-17 Sec. 2306.513. Housing for Individuals with Special Needs.
29-18 (a) The board shall adopt rules to achieve occupancy by
29-19 individuals with special needs of at least five percent of the
29-20 units in each multifamily housing development.
29-21 (b) Subsection (a) applies only to a multifamily housing
29-22 development that contains at least 20 units and is financed by
29-23 bonds issued under this chapter.
29-24 (c) If a survey that is conducted by the housing sponsor and
29-25 verified by the housing finance division reveals that there is not
30-1 sufficient need for housing for individuals with special needs in
30-2 the area in which the development will be built or renovated to
30-3 justify building or renovating and reserving at least five percent
30-4 of the units for individuals with special needs, the department
30-5 may, on a showing of good cause by the housing sponsor, lower the
30-6 requirements to correspond to the amount of need found by the
30-7 housing sponsor.
30-8 [(e) The department and the Texas Department on Aging shall
30-9 determine a procedure for paying for services provided by the Texas
30-10 Department on Aging.]
30-11 SECTION 35. Chapter 2306, Government Code, is amended by
30-12 adding Subchapter BB to read as follows:
30-13 SUBCHAPTER BB. EMERGENCY NUTRITION AND TEMPORARY EMERGENCY
30-14 RELIEF PROGRAM
30-15 Sec. 2306.631. DECLARATION OF PUBLIC PURPOSE. (a) The
30-16 legislature finds that:
30-17 (1) economic and demographic changes have created
30-18 rapid increases in the number of needy persons who are homeless or
30-19 without other necessities of basic existence;
30-20 (2) local governments and nonprofit service
30-21 organizations are unable to meet the increased financial burden
30-22 caused by those changes in various areas of the state; and
30-23 (3) the dramatic nature of the emergency relief needs
30-24 in various localities has contributed to family instability and
30-25 threatened the social and economic stability of those communities.
31-1 (b) the intent of this subchapter is to serve a public
31-2 purpose and the goals of the state by providing state money to
31-3 supplement any local or federal money available to provide
31-4 emergency relief to needy persons.
31-5 Sec. 2306.632. DEFINITIONS. In this subchapter:
31-6 (1) "Applicant" means the commissioners court of a
31-7 county, the governing body of another political subdivision, or a
31-8 nonprofit organization.
31-9 (2) "Nonprofit organization" means a private,
31-10 nonprofit, tax-exempt corporation listed in Section 501(c)(3),
31-11 Internal Revenue Code (26 U.S.C. Section 501(c)(3)).
31-12 (3) "Program" means a system of providing temporary
31-13 emergency relief to needy persons.
31-14 Section 2306.633. TEMPORARY EMERGENCY RELIEF FUND. (a) The
31-15 department shall establish a temporary emergency relief fund from
31-16 money appropriated for that purpose in order to assist counties, in
31-17 cooperation with other public entities and nonprofit organizations,
31-18 in meeting the needs of individuals and families for temporary
31-19 emergency relief.
31-20 (b) The department shall establish the emergency nutrition
31-21 program as part of the temporary emergency relief program
31-22 established under this subchapter. The emergency nutrition program
31-23 may allocate funds from the temporary emergency relief fund to meet
31-24 the unmet need for emergency food assistance. The department shall
31-25 administer the emergency nutrition program in the same fashion and
32-1 under the same procedures as used to govern the administration of
32-2 the temporary emergency relief program.
32-3 (c) Unobligated and unexpended money that remains in the
32-4 fund at the end of the fiscal biennium and that has not been
32-5 allocated or provided as a supplemental allocation to an applicant
32-6 reverts to the general revenue fund.
32-7 (d) The department may use not more than six percent of the
32-8 fund to pay costs incurred in administering the fund.
32-9 (e) The department shall deposit five percent of the funds
32-10 appropriated to the department under this subchapter to the credit
32-11 of a special fund in the state treasury known as the emergency
32-12 contingency fund. The department may not spend the money in the
32-13 emergency contingency fund without the written approval of the
32-14 governor, lieutenant governor, and speaker of the house of
32-15 representatives. The department shall spend the money as directed
32-16 by a joint order of the governor, lieutenant governor, and speaker
32-17 of the house of representatives.
32-18 Sec. 2306.634. APPLICATION. (a) A county may apply to the
32-19 department for a grant-in-aid to establish and administer a program
32-20 under this subchapter.
32-21 (b) If a county declines to act, the department may accept
32-22 applications from other political subdivisions or from nonprofit
32-23 organizations. The political subdivision or nonprofit organization
32-24 must first notify the county judge of the intention to submit an
32-25 application for a grant-in-aid.
33-1 (c) An application submitted under this section must provide
33-2 evidence that a county requires assistance and that the applicant
33-3 has consulted with public entities, nonprofit organizations,
33-4 voluntary associations, representatives of low-income persons, and
33-5 other groups involved in providing assistance to needy persons.
33-6 (d) The department shall adopt rules establishing the
33-7 criteria for determining whether an applicant qualifies under this
33-8 subchapter. The department may approve only one program for each
33-9 county.
33-10 (e) A decision by a county to administer a program under
33-11 this subchapter remains in effect until the county notifies the
33-12 department that the county no longer wants to participate in the
33-13 program. If a county decides to discontinue its participation, the
33-14 department may choose an applicant as an alternative participant as
33-15 prescribed by Subsection (b) of this section and by department
33-16 rules.
33-17 (f) The department shall develop standards and procedures
33-18 for the program that permit all counties in the state to
33-19 participate.
33-20 Sec. 2306.635. LOCAL ALLOCATION. (a) State funds provided
33-21 to a local applicant under this subchapter may not be used for
33-22 local administrative costs.
33-23 (b) An allocation to a county from the fund established by
33-24 Section 2306.633 shall be based on the county's demonstrated need
33-25 for the money. The formula used by the department to allocate the
34-1 money shall include:
34-2 (1) the number of unemployed persons in the county
34-3 during the most recent 12-month period for which data are available
34-4 compared to the number in the state for that period; and
34-5 (2) the number of persons in poverty in the county
34-6 during the most recent 12-month period for which data are available
34-7 compared to the number in the state for that period.
34-8 Sec. 2306.636. LOCAL PLAN; DISBURSEMENT. (a) An applicant
34-9 must submit to the department a plan for providing emergency
34-10 relief.
34-11 (b) The plan must contain a description of the target
34-12 population, the eligibility criteria for receipt of services, the
34-13 nature and scope of benefits to be provided, methods of
34-14 administration, and a budget. The plan must also show evidence of
34-15 consultation with the entities listed in Section 2306.634(c).
34-16 (c) On certification by the department that the applicant
34-17 qualifies under this subchapter, the department shall disburse
34-18 money from the fund to the applicant to be used to establish a
34-19 program in the affected county.
34-20 Sec. 2306.637. ELIGIBILITY AND PROVISION OF ASSISTANCE.
34-21 (a) Each county, political subdivision, or nonprofit organization
34-22 approved by the department for the establishing a program shall
34-23 adopt its own criteria for persons eligible to receive benefits
34-24 under the program, and shall include the criteria in the plan for
34-25 providing emergency relief submitted to the department.
35-1 (b) Before establishing eligibility and the frequency and
35-2 duration of benefits provided under the program, the county,
35-3 political subdivision, or nonprofit organization shall allow
35-4 adequate notice and opportunity for public comment, including
35-5 comments from entities listed in Section 2306.634(c).
35-6 (c) A county, political subdivision, or nonprofit
35-7 organization may not set the eligibility level at less than 75
35-8 percent of the federal poverty level based on the federal Office of
35-9 Management and Budget poverty index in effect at the time the plan
35-10 is submitted to the department.
35-11 (d) Assistance to persons eligible to participate in a
35-12 program authorized by this subchapter shall be provided through
35-13 vouchers and purchased services in accordance with the approved
35-14 plan submitted to the department. The assistance may include the
35-15 provision of utilities, food, housing, and clothing to needy
35-16 persons.
35-17 (e) Records relating to a program under this subchapter are
35-18 subject to audit by the department, an auditor approved by the
35-19 department, or the state auditor.
35-20 Sec. 2306.638. REPORTS; PUBLIC NOTICES. (a) As part of the
35-21 annual report required by Section 2306.072, the department shall
35-22 include a written report describing and analyzing the operation of
35-23 programs under this subchapter.
35-24 (b) A county, political subdivision, or nonprofit
35-25 organization funded under this subchapter shall assure the
36-1 department that information is provided to the public regarding
36-2 eligibility for and the nature of a program operated under this
36-3 subchapter.
36-4 Sec. 2306.639. RELATIONSHIP TO FEDERAL LAW. (a) If a
36-5 federal law or regulation is changed without making provision for
36-6 temporary waivers to allow compliance with state law, and, as a
36-7 result of this change, there is insufficient time to comply with
36-8 all the procedures required by this subchapter, the agency or
36-9 entity affected may act so as to comply with federal law, and shall
36-10 comply with the applicable procedures required by the subchapter as
36-11 soon as possible.
36-12 (b) If a federal statute or court order conflicts with this
36-13 subchapter, the federal law or court order prevails over this
36-14 subchapter.
36-15 SECTION 36. Section 2166.003, Government Code, is amended to
36-16 read as follows:
36-17 Sec. 2166.003. Exceptions. (a) Unless otherwise provided,
36-18 this chapter does not apply to:
36-19 (1) a project constructed by and for the Texas
36-20 Department of Transportation;
36-21 (2) a project constructed by and for a state
36-22 institution of higher education;
36-23 (3) a pen, shed, or ancillary building constructed by
36-24 and for the Department of Agriculture for the processing of
36-25 livestock before export;
37-1 (4) a project constructed by the Parks and Wildlife
37-2 Department;
37-3 (5) a repair or rehabilitation project, except a major
37-4 renovation, of buildings and grounds on the commission inventory;
37-5 (6) a repair and rehabilitation project of another
37-6 using agency, if all labor for the project is provided by the
37-7 regular maintenance force of the using agency under specific
37-8 legislative authorization and the project does not require the
37-9 advance preparation of working plans or drawings; [or]
37-10 (7) a repair and rehabilitation project involving the
37-11 use of contract labor, if the project has been excluded from this
37-12 chapter by commission rule and does not require the advance
37-13 preparation of working plans or drawings; or
37-14 (8) a project of repair, rehabilitation, or
37-15 construction on property owned by the Texas Department of Housing
37-16 and Community Affairs or the Texas State Affordable Housing
37-17 Corporation.
37-18 SECTION 37. Section 2167.001, Government Code, is amended to
37-19 read as follows:
37-20 Sec. 2167.001. Applicability. (a) This chapter applies to:
37-21 (1) office space;
37-22 (2) warehouse space;
37-23 (3) laboratory space;
37-24 (4) storage space exceeding 1,000 gross square feet;
37-25 and
38-1 (5) a combination of those kinds of space.
38-2 (b) This chapter does not apply to:
38-3 (1) aircraft hangar space;
38-4 (2) radio antenna space;
38-5 (3) boat storage space;
38-6 (4) vehicle parking space;
38-7 (5) residential space for a Texas Department of Mental
38-8 Health and Mental Retardation program;
38-9 (6) residential space for a Texas Youth Commission
38-10 program;
38-11 (7) space to be used for less than one month for
38-12 meetings, conferences, conventions, seminars, displays,
38-13 examinations, auctions, or similar purposes;
38-14 (8) district office space for members of the
38-15 legislature; [or]
38-16 (9) space used by the Texas Employment Commission; or
38-17 (10) residential property acquired by the Texas
38-18 Department of Housing and Community Affairs or the Texas State
38-19 Affordable Housing Corporation for sale or rental to individuals
38-20 and families of low or very low income or families of moderate
38-21 income.
38-22 SECTION 38. The following laws are repealed:
38-23 (1) Section 2306.122, Government Code;
38-24 (2) Section 2306.143, Government Code; and
38-25 (3) Chapter 34, Human Resources Code.
39-1 SECTION 39. To the extent of any conflict, this Act prevails
39-2 over another Act of the 75th Legislature, Regular Session, 1997,
39-3 relating to nonsubstantive additions to and corrections in enacted
39-4 codes.
39-5 SECTION 40. This Act takes effect September 1, 1997.
39-6 SECTION 41. The importance of this legislation and the
39-7 crowded condition of the calendars in both houses create an
39-8 emergency and an imperative public necessity that the
39-9 constitutional rule requiring bills to be read on three several
39-10 days in each house be suspended, and this rule is hereby suspended.