By Ehrhardt H.B. No. 2339
76R8568 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Texas State Affordable Housing Corporation.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2306.553, Government Code, is amended to
1-5 read as follows:
1-6 Sec. 2306.553. PURPOSES. (a) The public purpose of the
1-7 corporation is to perform activities and services that the
1-8 corporation's board of directors determines will promote the public
1-9 health, safety, and welfare through the provision of adequate,
1-10 safe, and sanitary housing for individuals and families of [low and
1-11 very low income and families of moderate] low, very low and
1-12 extremely low income. The activities and services shall include
1-13 engaging in mortgage banking activities and lending transactions
1-14 and acquiring, holding, selling, or leasing real or personal
1-15 property.
1-16 (b) The corporation's primary public purpose is to
1-17 facilitate the provision of housing and the making of affordable
1-18 loans to individuals and families of [low and very low income and
1-19 families of moderate] low, very low and extremely low income. The
1-20 corporation may make loans for single family homes only to
1-21 individuals and families of [low and very low income and families
1-22 of moderate] low, very low and extremely low income. The
1-23 corporation may make loans for multifamily developments if:
1-24 (1) at least 40 percent of the units in a multifamily
2-1 development are affordable to individuals and families with incomes
2-2 at or below 60 percent of the median family income, adjusted for
2-3 family size; or
2-4 (2) at least 20 percent of the units in a multifamily
2-5 development are affordable to individuals and families with incomes
2-6 at or below 50 percent of the median family income, adjusted for
2-7 family size.
2-8 (c) To the extent reasonably practicable, the corporation
2-9 shall use the services of banks, community banks, savings banks,
2-10 thrifts, savings and loan associations, private mortgage companies,
2-11 nonprofit organizations, and other lenders for the origination of
2-12 all loans contemplated by this subchapter and assist the lenders in
2-13 providing credit to individuals and families of [low and very low
2-14 income and families of moderate] low, very low and extremely low
2-15 income.
2-16 SECTION 2. Subsections (a) and (d)-(f), Section 2306.554,
2-17 Government Code, are amended to read as follows:
2-18 (a) The board of directors of the corporation consists of
2-19 [six] five members as follows:
2-20 (1) [the presiding officer of] one member appointed by
2-21 the board of directors of the department;
2-22 (2) [the presiding officer of the programs committee
2-23 of the board of directors of the department] one member appointed
2-24 by the governor that shall represent Community Housing Development
2-25 Organizations (CHDO's as defined by HUD); and
2-26 (3) [four] three members of the board of directors of
2-27 the corporation shall be appointed by the governor and shall
3-1 represent any of the following areas:
3-2 (A) state or federal savings banks or savings
3-3 and loan associations;
3-4 (B) community banks with assets of $200 million
3-5 or less;
3-6 (C) large metropolitan banks with assets of more
3-7 than $1 billion;
3-8 (D) asset management companies;
3-9 (E) mortgage servicing companies;
3-10 (F) builders;
3-11 (G) real estate developers;
3-12 (H) real estate brokers;
3-13 (I) community or economic development
3-14 organizations;
3-15 (J) private mortgage companies;
3-16 (K) nonprofit housing development companies;
3-17 (L) attorneys;
3-18 (M) investment bankers;
3-19 (N) underwriters;
3-20 (O) private mortgage insurance companies;
3-21 (P) appraisers;
3-22 (Q) property management companies;
3-23 (R) financial advisors;
3-24 (S) nonprofit foundations;
3-25 (T) financial advisors; or
3-26 (U) any other area of expertise that the
3-27 governor finds necessary for the successful operation of the
4-1 corporation.
4-2 (d) [The director of the department shall serve ex officio
4-3 as president of the corporation. The president is not entitled to
4-4 compensation, unless the president is not also the executive
4-5 director of the department, but is entitled to reimbursement from
4-6 the corporation of travel expenses incurred by the member while
4-7 conducting the business of the board, as provided by the General
4-8 Appropriations Act. The director of the department shall serve as
4-9 president of the corporation only if the director has experience in
4-10 the field of mortgage banking or residential lending as
4-11 demonstrated by:]
4-12 [(1) employment in one or more middle or upper level
4-13 management positions for at least two years with a mortgage bank,
4-14 commercial bank, thrift, savings and loan association, private
4-15 mortgage company, mortgage servicing entity, or other financial
4-16 institution; or]
4-17 [(2) employment in a position of providing legal or
4-18 consulting services related to mortgage banking or residential
4-19 lending to any one of the type of entities listed in Subsection
4-20 (d)(1) for at least five years.]
4-21 [(e) If the director does not satisfy the requirements of
4-22 Subsection (d)(1) or (2), the] The corporation shall employ, for
4-23 compensation to be determined by the corporation's board of
4-24 directors, [an] a qualified individual [that satisfies the
4-25 requirements of Subsection (d)(1) or (2)] to serve as president of
4-26 the corporation.
4-27 (e) [(f)] The corporation may purchase, with corporation
5-1 funds, liability insurance for each of the members of the
5-2 corporation's board of directors, officers, and other employees of
5-3 the corporation in an amount that the corporation's board of
5-4 directors considers reasonably necessary to:
5-5 (1) insure against foreseeable liabilities; and
5-6 (2) provide for all costs of defending against those
5-7 liabilities, including, without limitation, court costs and
5-8 attorney's fees.
5-9 SECTION 3. Section 2306.555(d), Government Code, is amended
5-10 to read as follows:
5-11 (d) All of the mortgage banking operations shall be
5-12 dedicated to the furtherance of facilitating affordable housing
5-13 finance for the ultimate benefit of individuals and families of
5-14 [low and very low income and families of moderate] low, very low
5-15 and extremely low income who, generally, are not afforded housing
5-16 finance options through conventional lending channels.
5-17 SECTION 4. Section 2306.559(a), Government Code, is amended
5-18 to read as follows:
5-19 (a) The corporation shall file an annual report of the
5-20 financial activity of the corporation with the department. The
5-21 corporation's board of directors shall submit the report to the
5-22 governor, lieutenant governor, speaker of the house of
5-23 representatives, comptroller, [and] Legislative Budget Board, and
5-24 the Bond Review Board.
5-25 SECTION 5. This Act takes effect September 1, 1999.
5-26 SECTION 6. The importance of this legislation and the
5-27 crowded condition of the calendars in both houses create an
6-1 emergency and an imperative public necessity that the
6-2 constitutional rule requiring bills to be read on three several
6-3 days in each house be suspended, and this rule is hereby suspended,
6-4 and that this Act take effect and be in force from and after its
6-5 passage, and it is so enacted.