1-1 AN ACT
1-2 relating to the ability of a public housing authority to use a
1-3 public facility corporation to promote development of residential
1-4 housing and accomplish other public purposes.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subchapter D, Chapter 392, Local Government Code,
1-7 is amended by adding Section 392.066 to read as follows:
1-8 Sec. 392.066. PUBLIC FACILITY CORPORATION. (a) An
1-9 authority that creates a public facility corporation under the
1-10 Public Facility Corporation Act (Article 717s, Revised Statutes)
1-11 may, with or without consideration, for the purpose of providing
1-12 affordable housing or housing assistance, enter into an agreement
1-13 with, make a contribution to, make an investment in, enter into a
1-14 lease or exchange with, or make a mortgage or loan to the
1-15 corporation to:
1-16 (1) acquire, construct, rehabilitate, renovate,
1-17 repair, equip, furnish, or provide assistance to a residential
1-18 development described by Section 394.004 or a housing project; or
1-19 (2) accomplish another public purpose authorized by
1-20 law.
1-21 (b) For the purpose of providing affordable housing or
1-22 housing assistance and for a purpose described by Subsection (a),
1-23 an authority described by Subsection (a) may also, with or without
1-24 consideration:
2-1 (1) transfer, convey, pledge, or otherwise use money,
2-2 personal or real property, or any other right or benefit to which
2-3 the authority is entitled under state or federal law; and
2-4 (2) pledge a right or benefit described by Subdivision
2-5 (1) to secure the payment of indebtedness issued by the public
2-6 facility corporation created by the authority.
2-7 (c) For the purpose of providing affordable housing or
2-8 housing assistance, an authority may exercise a power granted by
2-9 Subsection (a) as necessary to:
2-10 (1) develop or diversify the economy of this state;
2-11 (2) reduce unemployment or underemployment in this
2-12 state;
2-13 (3) develop or expand commerce in this state; or
2-14 (4) promote another public purpose.
2-15 (d) The powers granted by this section do not affect the
2-16 powers of an authority granted under the Public Facility
2-17 Corporation Act (Article 717s, Revised Statutes).
2-18 (e) A housing development project or other program that uses
2-19 funds provided by an authority under this section must benefit
2-20 individuals and families whose incomes are not more than 60 percent
2-21 of the area median family income, adjusted for family size, as
2-22 determined by the United States Department of Housing and Urban
2-23 Development, in the same proportion that the funds provided by the
2-24 authority under this section bear to the overall cost of the
2-25 housing development project or other program.
2-26 SECTION 2. The importance of this legislation and the
2-27 crowded condition of the calendars in both houses create an
3-1 emergency and an imperative public necessity that the
3-2 constitutional rule requiring bills to be read on three several
3-3 days in each house be suspended, and this rule is hereby suspended,
3-4 and that this Act take effect and be in force from and after its
3-5 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2209 was passed by the House on April
28, 1999, by the following vote: Yeas 136, Nays 5, 1 present, not
voting.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2209 was passed by the Senate on May
17, 1999, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor