By Duncan S.B. No. 1635
75R9045 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to increasing the efficiency of the utilization of the
1-3 State ceiling for qualified mortgage bonds.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 3(c), Chapter 1092, Acts of the 70th
1-6 Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's Texas
1-7 Civil Statutes), is amended to read as follows:
1-8 (c) the board shall not grant a reservation of a portion of
1-9 the state ceiling to any issuer prior to January 10. If two or
1-10 more issuers apply for a reservation of state ceiling in a category
1-11 described in Subsections (b)(2), (b)(3), (b)(4), and (b)(5) of
1-12 Section 2 of this Act on or before January 10, reservations within
1-13 that category shall be granted from the state ceiling available in
1-14 that category in an order determined by the board by lot. If two
1-15 or more housing finance corporations apply for a reservation of
1-16 state ceiling in the category described by Section 2(b)(1) of this
1-17 Act on or before January 10, reservations within that category
1-18 shall be granted from the state ceiling available in that category
1-19 according to the following categories of priority: (1) the first
1-20 category of priority shall include those applications for a
1-21 reservation filed by housing finance corporations which filed an
1-22 application for a reservation on behalf of the same local
1-23 population prior to September 1 of the previous calendar year, but
1-24 which did not receive a reservation during such year; (2) the
2-1 second category of priority shall include those applications for a
2-2 reservation filed by housing finance corporations to which state
2-3 ceiling could not be made available by August 31 for that calendar
2-4 year because of the application of Section 4(b) of this Act; (3)
2-5 the third category of priority shall include those applications for
2-6 a reservation not included in the first and second categories of
2-7 priority; and (4) within each category or priority, reservations
2-8 shall be granted in reverse calendar year order of the most recent
2-9 closing of qualified mortgage bonds by each housing finance
2-10 corporation, with the most recent closing being the last to receive
2-11 a reservation and with those housing finance corporations that have
2-12 never received a reservation for mortgage revenue bonds being the
2-13 first to receive a reservation, and, in the case of closing
2-14 occurring on the same date, reservations shall be granted in an
2-15 order determined by the board by lot. All applications for a
2-16 reservation filed after January 10 by an issuer for the issuance of
2-17 bonds shall be accepted by the board in their order of receipt. A
2-18 priority under (1) of an issuer composed of more than one
2-19 jurisdiction is not affected by the issuer's loss of a sponsoring
2-20 governmental unit and that unit's population base if the dollar
2-21 amount of the application has not been increased. No governmental
2-22 unit shall join or separate from an issuer composed of more than
2-23 one jurisdiction simply for the purpose of obtaining a higher
2-24 priority. If a governmental unit chooses to separate from an
2-25 issuer composed of more than one jurisdiction, the departing
2-26 sponsoring governmental unit will have the same priority as the
2-27 issuer from which they separated. If a governmental unit chooses
3-1 to separate from an issuer composed of more than one jurisdiction
3-2 and joins a different issuer composed of more than one
3-3 jurisdiction, the issuer to which the governmental unit joins will
3-4 have a priority of the lower of the issuer to which they joined or
3-5 from which they separated. If several governmental units choose to
3-6 separate from one or more issuers composed of more than one
3-7 jurisdiction and collectively join a different issuer composed of
3-8 more than one jurisdiction, the issuer to which the governmental
3-9 units join will have a priority of the lowest of any of the issuers
3-10 from which they separated or the priority of the issuer to which
3-11 they joined which ever is lower.
3-12 SECTION 2. Section 7, Chapter 1092, Acts of the 70th
3-13 Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's Texas
3-14 Civil Statutes), is amended to read as follows:
3-15 Sec. 7. (a) Except as provided in Subsections (b) and (c)
3-16 of this section, the issuer shall close on the bonds for which a
3-17 reservation has been granted not later than the 90th day after the
3-18 reservation date.
3-19 (b) Issuers of qualified mortgage revenue bonds who receive
3-20 an allocation prior to June 1 have until July 31 or 90 days after
3-21 the reservation date, which ever is later.
3-22 (c) Regardless of the deadline provided by Subsection (a)
3-23 of this section, the issuer shall close on the bonds before
3-24 December 24.
3-25 (d) If the issuer does not timely close on the bonds, the
3-26 issue's reservation is canceled and during the 120-day period
3-27 beginning on the reservation date of the canceled reservation:
4-1 (1) the issuer or any other issuer may not submit an
4-2 application for a reservation for the same project; and
4-3 (2) the issuer is eligible for a carry forward
4-4 designation for the project only as provided by Section 9 of this
4-5 Act.
4-6 (e) Not later than the fifth business day after the day on
4-7 which the bonds are closed, the issuer shall submit to the board:
4-8 (1) a written notice stating the delivery date of the
4-9 bonds and the principal amount of the bonds issued; and
4-10 (2) a certified copy of the document authorizing the
4-11 bonds and other documents relating to the issuance of the bonds,
4-12 including a statement of the bonds:
4-13 (A) principal amount;
4-14 (B) interest rate or formula by which the
4-15 interest rate is calculated;
4-16 (C) maturity schedule; and
4-17 (D) purchaser or purchasers.
4-18 (f) The board shall adopt rules that require the payment of
4-19 closing fees simultaneously with the closing on the bonds.
4-20 SECTION 3. Section 394.003, Government code, is amended by
4-21 amending Subsection (13) to read as follows:
4-22 (13) "Residential development" means the acquisition,
4-23 construction, reconstruction, rehabilitation, repair, alteration,
4-24 improvement, or extension of any of the following items or any
4-25 combination of the following items for the purpose of providing
4-26 decent, safe, and sanitary housing and nonhousing facilities that
4-27 are an integral part of or are functionally related to any
5-1 affordable housing project whether in one or multiple locations:
5-2 (A) land, an interest in land, a building or
5-3 other structure, facility, system, fixture, improvement, addition,
5-4 appurtenance, or machinery or other equipment;
5-5 (B) real or personal property considered
5-6 necessary in connection with an item described by Paragraph (A); or
5-7 (C) real or personal property or improvements
5-8 functionally related and subordinate to an item described by
5-9 Paragraph (A).
5-10 SECTION 4. Section 394.012, Government code, is amended by
5-11 amending Subsection (h) to read as follows:
5-12 (h) For the purposes of determining the applicable
5-13 population for Article 5190.9a, Section 3(b), Vernon's Texas Civil
5-14 Statutes, the joint housing finance corporation may only consider
5-15 areas in their own state planning region.
5-16 SECTION 5. Section 394.032, Government code, is amended by
5-17 adding Subsection (e) to read as follows:
5-18 (e) A housing finance corporation may enter into
5-19 co-operative agreements with other housing finance corporations to
5-20 make home mortgages available in jurisdictions of other housing
5-21 finance corporations anywhere within the State.
5-22 SECTION 6. Section 394.037, Government code, is amended by
5-23 amending Subsection (a) to read as follows:
5-24 (a) A housing finance corporation may issue bonds to defray,
5-25 in whole or in part:
5-26 (1) the development costs of a residential
5-27 development; or
6-1 (2) the costs of purchasing or funding the making of
6-2 home mortgages, either on a first come first served basis or by
6-3 selling lender commitments, including the costs of studies and
6-4 surveys, insurance premiums, financial advisory services, mortgage
6-5 banking services, administrative services, underwriting fees, legal
6-6 services, accounting services, and marketing services incurred in
6-7 connection with the issuance and sale of bonds, including bond and
6-8 interest reserve accounts, capitalized interest accounts, and
6-9 trustee, custodian, and rating agency fees.
6-10 SECTION 7. Section 394.040, Government code, is amended by
6-11 amending Subsection (a) to read as follows:
6-12 (a) A housing finance corporation may make, contract to
6-13 make, but is in no way required to make, and enter into advance
6-14 commitments to make home mortgages originated, administered, and
6-15 serviced by lending institutions. It may pay the reasonable value
6-16 of services rendered under those contracts. It may acquire,
6-17 contract to acquire, and enter into advance commitments to acquire
6-18 by assignment or other means, home mortgages owned by lending
6-19 institutions at purchase prices and on other terms determined by
6-20 the corporation or its agent.
6-21 SECTION 8. Section 394.051, Government code, is amended by
6-22 adding Subsection (h) to read as follows:
6-23 (h) The housing finance corporation is not required to sell
6-24 commitments to lenders to originate home mortgages. A housing
6-25 finance corporation may establish a program so that lenders will
6-26 utilize the proceeds of the bonds to originate home mortgages on a
6-27 first come first served basis.