1-1 By: Duncan S.B. No. 1635
1-2 (In the Senate - Filed March 14, 1997; March 24, 1997, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 18, 1997, reported favorably, as amended, by the
1-5 following vote: Yeas 9, Nays 0; April 18, 1997, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Cain
1-7 Amend S.B. No. 1635 by adding SECTION 9 to read as follows:
1-8 SECTION 9. The importance of this legislation and the
1-9 crowded condition of the calendars in both houses create an
1-10 emergency and an imperative public necessity that the
1-11 constitutional rule requiring bills to be read on three several
1-12 days in each house be suspended, and this rule is hereby suspended,
1-13 and that this Act take effect and be in force from and after its
1-14 passage, and it is so enacted.
1-15 A BILL TO BE ENTITLED
1-16 AN ACT
1-17 relating to increasing the efficiency of the utilization of the
1-18 State ceiling for qualified mortgage bonds.
1-19 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-20 SECTION 1. Subsection (c), Section 3, Chapter 1092, Acts of
1-21 the 70th Legislature, Regular Session, 1987 (Article 5190.9a,
1-22 Vernon's Texas Civil Statutes), is amended to read as follows:
1-23 (c) The board shall not grant a reservation of a portion of
1-24 the state ceiling to any issuer prior to January 10. If two or
1-25 more issuers apply for a reservation of state ceiling in a category
1-26 described in Subsections (b)(2), (b)(3), (b)(4), and (b)(5) of
1-27 Section 2 of this Act on or before January 10, reservations within
1-28 that category shall be granted from the state ceiling available in
1-29 that category in an order determined by the board by lot. If two
1-30 or more housing finance corporations apply for a reservation of
1-31 state ceiling in the category described by Section 2(b)(1) of this
1-32 Act on or before January 10, reservations within that category
1-33 shall be granted from the state ceiling available in that category
1-34 according to the following categories of priority: (1) the first
1-35 category of priority shall include those applications for a
1-36 reservation filed by housing finance corporations which filed an
1-37 application for a reservation on behalf of the same local
1-38 population prior to September 1 of the previous calendar year, but
1-39 which did not receive a reservation during such year; (2) the
1-40 second category of priority shall include those applications for a
1-41 reservation filed by housing finance corporations to which state
1-42 ceiling could not be made available by August 31 for that calendar
1-43 year because of the application of Section 4(b) of this Act; (3)
1-44 the third category of priority shall include those applications for
1-45 a reservation not included in the first and second categories of
1-46 priority; and (4) within each category or priority, reservations
1-47 shall be granted in reverse calendar year order of the most recent
1-48 closing of qualified mortgage bonds by each housing finance
1-49 corporation, with the most recent closing being the last to receive
1-50 a reservation and with those housing finance corporations that have
1-51 never received a reservation for mortgage revenue bonds being the
1-52 first to receive a reservation, and, in the case of closings
1-53 occurring on the same date, reservations shall be granted in an
1-54 order determined by the board by lot. All applications for a
1-55 reservation filed after January 10 by any issuer for the issuance
1-56 of bonds shall be accepted by the board in their order of receipt.
1-57 A priority under (1) of an issuer composed of more than one
1-58 jurisdiction is not affected by the issuer's loss of a sponsoring
1-59 governmental unit and that unit's population base if the dollar
1-60 amount of the application has not increased. No governmental unit
1-61 shall join or separate from an issuer composed of more than one
1-62 jurisdiction simply for the purpose of obtaining a higher priority.
1-63 If a governmental unit chooses to separate from an issuer composed
1-64 of more than one jurisdiction, the departing sponsoring
2-1 governmental unit will have the same priority as the issuer from
2-2 which it separated. If a governmental unit chooses to separate
2-3 from an issuer composed of more than one jurisdiction and joins a
2-4 different issuer composed of more than one jurisdiction, the issuer
2-5 to which the governmental unit joins will have a priority of the
2-6 lower of the issuer to which they joined or from which they
2-7 separated. If several governmental units choose to separate from
2-8 one or more issuers composed of more than one jurisdiction and
2-9 collectively join a different issuer composed of more than one
2-10 jurisdiction, the issuer to which the governmental units join will
2-11 have a priority of the lowest of any of the issuers from which they
2-12 separated or the priority of the issuer to which they joined,
2-13 whichever is lower.
2-14 SECTION 2. Section 7, Chapter 1092, Acts of the 70th
2-15 Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's Texas
2-16 Civil Statutes), is amended to read as follows:
2-17 Sec. 7. ISSUANCE AND DELIVERY. (a) Except as provided in
2-18 Subsections [Subsection] (b) and (c) of this section, the issuer
2-19 shall close on the bonds for which a reservation has been granted
2-20 not later than the 90th day after the reservation date.
2-21 (b) Issuers of qualified mortgage revenue bonds who receive
2-22 an allocation prior to June 1 have until July 31 or 90 days after
2-23 the reservation date, whichever is later.
2-24 (c) Regardless of the deadline provided by Subsection (a) of
2-25 this section, the issuer shall close on the bonds before December
2-26 24.
2-27 (d) [(c)] If the issuer does not timely close on the bonds,
2-28 the issue's reservation is canceled and during the 120-day period
2-29 beginning on the reservation date of the canceled reservation:
2-30 (1) the issuer or any other issuer may not submit an
2-31 application for a reservation for the same project; and
2-32 (2) the issuer is eligible for a carryforward
2-33 designation for the project only as provided by Section 9 of this
2-34 Act.
2-35 (e) [(d)] Not later than the fifth business day after the
2-36 day on which the bonds are closed, the issuer shall submit to the
2-37 board:
2-38 (1) a written notice stating the delivery date of the
2-39 bonds and the principal amount of the bonds issued; and
2-40 (2) a certified copy of the document authorizing the
2-41 bonds and other documents relating to the issuance of the bonds,
2-42 including a statement of the bonds:
2-43 (A) principal amount;
2-44 (B) interest rate or formula by which the
2-45 interest rate is calculated;
2-46 (C) maturity schedule; and
2-47 (D) purchaser or purchasers.
2-48 (f) [(e)] The board shall adopt rules that require the
2-49 payment of closing fees simultaneously with the closing on the
2-50 bonds.
2-51 SECTION 3. Subdivision (13), Section 394.003, Local
2-52 Government Code, is amended to read as follows:
2-53 (13) "Residential development" means the acquisition,
2-54 construction, reconstruction, rehabilitation, repair, alteration,
2-55 improvement, or extension of any of the following items or any
2-56 combination of the following items for the purpose of providing
2-57 decent, safe, and sanitary housing and nonhousing facilities that
2-58 are an integral part of or are functionally related to any
2-59 affordable housing project whether in one or multiple locations
2-60 [the housing]:
2-61 (A) land, an interest in land, a building or
2-62 other structure, facility, system, fixture, improvement, addition,
2-63 appurtenance, or machinery or other equipment;
2-64 (B) real or personal property considered
2-65 necessary in connection with an item described by Paragraph (A); or
2-66 (C) real or personal property or improvements
2-67 functionally related and subordinate to an item described by
2-68 Paragraph (A).
2-69 SECTION 4. Subsection (h), Section 394.012, Local Government
3-1 Code, is amended to read as follows:
3-2 (h) For the purposes of determining the applicable
3-3 population for Section 3b, Chapter 1092, Acts of the 70th
3-4 Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's Texas
3-5 Civil Statutes), the [The] joint housing finance corporation may
3-6 only consider areas in its own [not operate in more than one] state
3-7 planning region.
3-8 SECTION 5. Section 394.032, Local Government Code, is
3-9 amended by adding Subsection (e) to read as follows:
3-10 (e) A housing finance corporation may enter into cooperative
3-11 agreements with other housing finance corporations to make home
3-12 mortgages available in jurisdictions of other housing finance
3-13 corporations anywhere within the state.
3-14 SECTION 6. Subsection (a), Section 394.037, Local Government
3-15 Code, is amended to read as follows:
3-16 (a) A housing finance corporation may issue bonds to defray,
3-17 in whole or in part:
3-18 (1) the development costs of a residential
3-19 development; or
3-20 (2) the costs of purchasing or funding the making of
3-21 home mortgages, either on a first come, first served basis or by
3-22 selling lender commitments, including the costs of studies and
3-23 surveys, insurance premiums, financial advisory services, mortgage
3-24 banking services, administrative services, underwriting fees, legal
3-25 services, accounting services, and marketing services incurred in
3-26 connection with the issuance and sale of bonds, including bond and
3-27 interest reserve accounts, capitalized interest accounts, and
3-28 trustee, custodian, and rating agency fees.
3-29 SECTION 7. Subsection (a), Section 394.040, Local Government
3-30 Code, is amended to read as follows:
3-31 (a) A housing finance corporation may make, contract to
3-32 make, but is in no way required to make, and enter into advance
3-33 commitments to make home mortgages originated, administered, and
3-34 serviced by lending institutions. It may pay the reasonable value
3-35 of services rendered under those contracts. It may acquire,
3-36 contract to acquire, and enter into advance commitments to acquire,
3-37 by assignment or other means, home mortgages owned by lending
3-38 institutions at purchase prices and on other terms determined by
3-39 the corporation or its agent.
3-40 SECTION 8. Section 394.051, Local Government Code, is
3-41 amended by adding Subsection (h) to read as follows:
3-42 (h) The housing finance corporation is not required to sell
3-43 commitments to lenders to originate home mortgages. A housing
3-44 finance corporation may establish a program so that lenders will
3-45 utilize the proceeds of the bonds to originate home mortgages on a
3-46 first come, first served basis.
3-47 * * * * *