1-1 By: Barrientos, Brown, Lucio S.B. No. 1365
1-2 (In the Senate - Filed March 13, 1997; March 18, 1997, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 27, 1997, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 9, Nays 2;
1-6 April 28, 1997, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1365 By: Lucio
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the operation of the Texas Department of Housing and
1-11 Community Affairs and the Texas Housing Corporation; authorizing
1-12 the issuance of bonds.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Subsection (b), Section 2306.111, Government
1-15 Code, is amended to read as follows:
1-16 (b) The housing finance division shall use:
1-17 (1) at least 15 percent of the division's total
1-18 housing funds to provide housing assistance for individuals and
1-19 families with incomes of 30 percent or less of the area median
1-20 family income, as defined by the United States Department of
1-21 Housing and Urban Development; and
1-22 (2) at least 25 percent of the division's total
1-23 housing funds to provide housing assistance for individuals and
1-24 families with incomes above 30 percent and less than or equal to 60
1-25 percent of the area median family income, as defined by the United
1-26 States Department of Housing and Urban Development [adopt a goal to
1-27 apply a minimum of 25 percent of the division's total housing funds
1-28 toward housing assistance for individuals and families of very low
1-29 income].
1-30 SECTION 2. Section 2306.202, Government Code, is amended by
1-31 adding Subsection (c) to read as follows:
1-32 (c) The department shall use at least 30 percent of money
1-33 expended from the housing trust fund each year to provide
1-34 assistance to individuals in households earning less than 30
1-35 percent of the area median family income, as defined by the United
1-36 States Department of Housing and Urban Development.
1-37 SECTION 3. Subchapter J, Chapter 2306, Government Code, is
1-38 amended by adding Section 2306.2211 to read as follows:
1-39 Sec. 2306.2211. LIMITATION ON LENDING ACTIVITIES. The
1-40 department may not service loans or provide secondary lending or
1-41 mortgage banking services unless expressly permitted by this
1-42 chapter.
1-43 SECTION 4. Subchapter Y, Chapter 2306, Government Code, as
1-44 added by Chapter 76, Acts of the 74th Legislature, 1995, is amended
1-45 by adding Section 2306.5521 to read as follows:
1-46 Sec. 2306.5521. SUNSET PROVISION. The Texas Housing
1-47 Corporation is subject to Chapter 325 (Texas Sunset Act). Unless
1-48 continued in existence as provided by that chapter, the corporation
1-49 is abolished and this subchapter expires September 1, 1999.
1-50 Reviews of the corporation under Chapter 325 shall be conducted in
1-51 conjunction with reviews under that chapter of the department.
1-52 SECTION 5. Subsection (a), Section 2306.553, Government
1-53 Code, is amended to read as follows:
1-54 (a) The purposes of the corporation are to:
1-55 (1) provide housing and financing and other financial
1-56 services relating to housing to individuals and families of
1-57 extremely low, very low, and low income and to families of moderate
1-58 income, with priority given to providing assistance to individuals
1-59 and families of extremely low and very low income who are unable to
1-60 obtain assistance from the private sector;
1-61 (2) provide a source of revenue for the housing trust
1-62 fund; and
1-63 (3) in appropriate cases, as determined by the board
1-64 of directors of the corporation, issue bonds as authorized by
2-1 Section 2306.555(e) [shall carry out the public purposes of this
2-2 chapter on behalf of the state].
2-3 SECTION 6. Section 2306.554, Government Code, is amended to
2-4 read as follows:
2-5 Sec. 2306.554. BOARD OF DIRECTORS. (a) The board of
2-6 directors is composed of:
2-7 (1) the governor;
2-8 (2) the lieutenant governor;
2-9 (3) the speaker of the house of representatives; and
2-10 (4) the comptroller.
2-11 (b) A member of the board of directors may designate another
2-12 person to act on the member's behalf.
2-13 (c) The governor is the presiding officer of the board of
2-14 directors.
2-15 (d) If the speaker of the house of representatives is not
2-16 permitted by the Texas Constitution to serve as a voting member of
2-17 the board of directors, the speaker serves as a nonvoting member of
2-18 the board. [The members of the board serve as the board of
2-19 directors of the corporation.]
2-20 SECTION 7. Subchapter Y, Chapter 2306, Government Code, as
2-21 added by Chapter 76, Acts of the 74th Legislature, 1995, is amended
2-22 by adding Sections 2306.5541, 2306.5542, and 2306.5543 to read as
2-23 follows:
2-24 Sec. 2306.5541. EXECUTIVE DIRECTOR. (a) The director of
2-25 the department serves as executive director of the corporation.
2-26 (b) The executive director shall submit monthly financial
2-27 statements to the board of directors of the corporation.
2-28 Sec. 2306.5542. CHIEF FINANCIAL OFFICER. The board of
2-29 directors of the corporation shall employ a chief financial officer
2-30 for the corporation.
2-31 Sec. 2306.5543. PERSONNEL POLICIES. The board of directors
2-32 of the corporation shall develop and implement personnel policies,
2-33 including policies relating to employee conflicts of interest, that
2-34 are substantially similar to comparable policies that govern state
2-35 employees.
2-36 SECTION 8. Section 2306.555, Government Code, is amended by
2-37 amending Subsection (a) and adding Subsections (d) and (e) to read
2-38 as follows:
2-39 (a) The corporation has the powers and is subject to the
2-40 limitations provided for the department under this chapter,
2-41 including provisions relating to property acquisition and
2-42 ownership.
2-43 (d) The corporation may apply for funding for special
2-44 programs from the department. In applying for funding, the
2-45 corporation is subject to all procedures and requirements
2-46 applicable to other applicants. Money received under this
2-47 subsection is not a loan of money subject to approval by the
2-48 Legislative Budget Board under Section 2306.560(d).
2-49 (e) The corporation may issue qualified 501(c)(3) bonds
2-50 under Section 145, Internal Revenue Code of 1986 (26 U.S.C. Section
2-51 145), to provide financing for the construction or rehabilitation
2-52 of affordable multifamily housing.
2-53 SECTION 9. Subchapter Y, Chapter 2306, Government Code, as
2-54 added by Chapter 76, Acts of the 74th Legislature, 1995, is amended
2-55 by adding Section 2306.5555 to read as follows:
2-56 Sec. 2306.5555. PUBLIC ACCESS. The board of directors of
2-57 the corporation shall develop and implement policies that provide
2-58 the public with a reasonable opportunity to appear before the board
2-59 of directors and to speak on any issue under the jurisdiction of
2-60 the corporation.
2-61 SECTION 10. Section 2306.557, Government Code, is amended to
2-62 read as follows:
2-63 Sec. 2306.557. DISTRIBUTION OF EARNINGS. All [Any part of]
2-64 earnings of the corporation, other than the amount necessary to
2-65 make loan repayments to the department and meet bond obligations,
2-66 shall be deposited [remaining after payment of expenses may not
2-67 inure to any person except that the corporation shall deposit these
2-68 earnings] to the credit of an account in the general revenue fund.
2-69 The legislature may appropriate money from the account only to the
3-1 corporation for the corporation's reasonable operating expenses.
3-2 The comptroller shall transfer to the housing trust fund all money
3-3 in the account that is not appropriated to [for the benefit of the
3-4 department if the corporation's board of directors determines that
3-5 sufficient provision has been made for the full payment of the
3-6 expenses, bonds, and other obligations of] the corporation.
3-7 SECTION 11. Subchapter Y, Chapter 2306, Government Code, as
3-8 added by Chapter 76, Acts of the 74th Legislature, 1995, is amended
3-9 by adding Sections 2306.560 through 2306.564 to read as follows:
3-10 Sec. 2306.560. FUNDING FROM DEPARTMENT. (a) The department
3-11 may loan the corporation not more than $1 million each fiscal year.
3-12 The department may not provide funding to the corporation in any
3-13 form other than a loan.
3-14 (b) The department may not use money in the housing trust
3-15 fund or money provided to the department through federal housing
3-16 block grants to fund a loan to the corporation.
3-17 (c) The department may not make in-kind contributions to the
3-18 corporation, except the department may loan personnel to the
3-19 corporation.
3-20 (d) All loans of money or personnel from the department to
3-21 the corporation must be approved by the Legislative Budget Board.
3-22 In connection with approving loans of money or personnel, the
3-23 Legislative Budget Board shall monitor and evaluate the
3-24 corporation's performance, budget, and staff size.
3-25 Sec. 2306.561. FINANCIAL MANAGEMENT SYSTEM; RESTRICTED
3-26 CAPITAL FUND. (a) The corporation shall establish and maintain a
3-27 financial management system in accordance with generally accepted
3-28 accounting principles, as prescribed by the Financial Accounting
3-29 Standards Board.
3-30 (b) The financial management system shall provide for the
3-31 separate accounting and reporting of:
3-32 (1) all money received by the corporation from the
3-33 department and all disbursements, receipts, interest earnings, and
3-34 other proceeds arising from money received from the department; and
3-35 (2) all other money held by the corporation.
3-36 (c) The corporation shall establish and maintain a
3-37 restricted capital fund for money provided by the department or
3-38 this state. The capital fund shall reflect the accumulated total
3-39 of department and state investment in the corporation.
3-40 Sec. 2306.562. AUDIT. (a) On or before March 1 of each
3-41 year, a certified public accountant with experience in auditing
3-42 mortgage firms and financial institutions shall audit the
3-43 corporation's books and accounts and file a copy of the audit with
3-44 the governor and the Legislative Budget Board.
3-45 (b) The state auditor shall review an audit after the audit
3-46 is completed by the certified public accountant.
3-47 (c) The corporation shall pay for the audit.
3-48 Sec. 2306.563. REPORT ON SERVICES. (a) The corporation
3-49 shall report to the department information on services provided by
3-50 the corporation. The information shall identify the:
3-51 (1) income, family size, race, and geographical
3-52 location of persons receiving services; and
3-53 (2) type and level of service provided to those
3-54 persons.
3-55 (b) The department shall include information provided under
3-56 Subsection (a) in the annual report required by Section 2306.072.
3-57 Sec. 2306.564. APPLICATION OF OTHER LAWS. The board of
3-58 directors of the corporation is subject to Chapter 551, and the
3-59 corporation is subject to Chapter 552.
3-60 SECTION 12. This Act takes effect September 1, 1997.
3-61 SECTION 13. The importance of this legislation and the
3-62 crowded condition of the calendars in both houses create an
3-63 emergency and an imperative public necessity that the
3-64 constitutional rule requiring bills to be read on three several
3-65 days in each house be suspended, and this rule is hereby suspended.
3-66 * * * * *