1-1 By: McClendon (Senate Sponsor - Madla) H.B. No. 2209 1-2 (In the Senate - Received from the House April 29, 1999; 1-3 April 30, 1999, read first time and referred to Committee on 1-4 Intergovernmental Relations; May 6, 1999, reported favorably by the 1-5 following vote: Yeas 5, Nays 0; May 6, 1999, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the ability of a public housing authority to use a 1-9 public facility corporation to promote development of residential 1-10 housing and accomplish other public purposes. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Subchapter D, Chapter 392, Local Government Code, 1-13 is amended by adding Section 392.066 to read as follows: 1-14 Sec. 392.066. PUBLIC FACILITY CORPORATION. (a) An 1-15 authority that creates a public facility corporation under the 1-16 Public Facility Corporation Act (Article 717s, Revised Statutes) 1-17 may, with or without consideration, for the purpose of providing 1-18 affordable housing or housing assistance, enter into an agreement 1-19 with, make a contribution to, make an investment in, enter into a 1-20 lease or exchange with, or make a mortgage or loan to the 1-21 corporation to: 1-22 (1) acquire, construct, rehabilitate, renovate, 1-23 repair, equip, furnish, or provide assistance to a residential 1-24 development described by Section 394.004 or a housing project; or 1-25 (2) accomplish another public purpose authorized by 1-26 law. 1-27 (b) For the purpose of providing affordable housing or 1-28 housing assistance and for a purpose described by Subsection (a), 1-29 an authority described by Subsection (a) may also, with or without 1-30 consideration: 1-31 (1) transfer, convey, pledge, or otherwise use money, 1-32 personal or real property, or any other right or benefit to which 1-33 the authority is entitled under state or federal law; and 1-34 (2) pledge a right or benefit described by Subdivision 1-35 (1) to secure the payment of indebtedness issued by the public 1-36 facility corporation created by the authority. 1-37 (c) For the purpose of providing affordable housing or 1-38 housing assistance, an authority may exercise a power granted by 1-39 Subsection (a) as necessary to: 1-40 (1) develop or diversify the economy of this state; 1-41 (2) reduce unemployment or underemployment in this 1-42 state; 1-43 (3) develop or expand commerce in this state; or 1-44 (4) promote another public purpose. 1-45 (d) The powers granted by this section do not affect the 1-46 powers of an authority granted under the Public Facility 1-47 Corporation Act (Article 717s, Revised Statutes). 1-48 (e) A housing development project or other program that uses 1-49 funds provided by an authority under this section must benefit 1-50 individuals and families whose incomes are not more than 60 percent 1-51 of the area median family income, adjusted for family size, as 1-52 determined by the United States Department of Housing and Urban 1-53 Development, in the same proportion that the funds provided by the 1-54 authority under this section bear to the overall cost of the 1-55 housing development project or other program. 1-56 SECTION 2. The importance of this legislation and the 1-57 crowded condition of the calendars in both houses create an 1-58 emergency and an imperative public necessity that the 1-59 constitutional rule requiring bills to be read on three several 1-60 days in each house be suspended, and this rule is hereby suspended, 1-61 and that this Act take effect and be in force from and after its 1-62 passage, and it is so enacted. 1-63 * * * * *