76R13830 E
By Burnam H.B. No. 3607
Substitute the following for H.B. No. 3607:
By Burnam C.S.H.B. No. 3607
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the preservation of long-term affordable housing.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 2306, Government Code, is amended by
1-5 adding Subchapter EE to read as follows:
1-6 SUBCHAPTER EE. AFFORDABLE HOUSING PRESERVATION
1-7 Sec. 2306.801. APPLICATION. (a) This subchapter applies
1-8 only to a property owner of a multifamily housing development that
1-9 is insured or assisted under a program under:
1-10 (1) Section 221(d)(3), National Housing Act (12 U.S.C.
1-11 Section 1715l);
1-12 (2) Section 236, National Housing Act (12 U.S.C.
1-13 Section 1715z-1);
1-14 (3) Section 515, Housing Act of 1949 (42 U.S.C.
1-15 Section 1485); or
1-16 (4) Section 8, United States Housing Act of 1937 (42
1-17 U.S.C. Section 1437f).
1-18 (b) This subchapter does not apply to a property owner of a
1-19 multifamily housing development that is insured or assisted under a
1-20 program described by Subsection (a)(1), (2), or (3) unless the
1-21 development is financed by a mortgage that is eligible for
1-22 prepayment at the option of the property owner.
1-23 (c) This subchapter does not apply to the disposal of
1-24 property because of:
2-1 (1) a governmental taking by eminent domain or
2-2 negotiated purchase;
2-3 (2) a foreclosure action;
2-4 (3) a transfer by gift, devise, or operation of law;
2-5 or
2-6 (4) a sale to a person who would be entitled to an
2-7 interest in the property if the property owner died intestate.
2-8 (d) This subchapter does not apply to property included in a
2-9 restructuring program with a participating administrative entity
2-10 designated by the United States Department of Housing and Urban
2-11 Development.
2-12 Sec. 2306.802. PROPERTY OWNER RESTRICTION. Except as
2-13 provided by this subchapter, a property owner under this subchapter
2-14 may not sell, lease, dispose of, or take any other action involving
2-15 a multifamily housing development that is insured or assisted under
2-16 a program described by Section 2306.801(a) if that action will
2-17 cause the disruption or discontinuance of:
2-18 (1) the federal insurance or assistance; or
2-19 (2) the provision of low income housing assistance to
2-20 residents of the development.
2-21 Sec. 2306.803. NOTICE OF INTENT. (a) A property owner of a
2-22 multifamily housing development subject to the restriction under
2-23 Section 2306.802 may sell, lease, or otherwise dispose of the
2-24 development if the property owner provides notice by mail of the
2-25 intent to sell, lease, or otherwise dispose of the development to:
2-26 (1) the residents of the development and the residents
2-27 association of the development;
3-1 (2) the local housing authority with jurisdiction over
3-2 the geographic area in which the development is located;
3-3 (3) the governing body of the municipality in which
3-4 the development is located; and
3-5 (4) the department.
3-6 (b) The property owner shall provide the notice required by
3-7 Subsection (a) at the time notice is required under federal law
3-8 that:
3-9 (1) the property owner intends to prepay a mortgage
3-10 under a program described by Section 2306.801(a)(1), (2), or (3);
3-11 or
3-12 (2) a contract concluded under a program described by
3-13 Section 2306.801(a)(4) will expire.
3-14 Sec. 2306.804. DEMONSTRATION PROGRAM. The department shall
3-15 develop a demonstration program to preserve housing described in
3-16 this subchapter in accordance with Section 2306.251. The
3-17 department may use existing funds that are not targeted for other
3-18 purposes to preserve such housing.
3-19 SECTION 2. Subchapter A, Chapter 2306, Government Code, is
3-20 amended by adding Section 2306.008 to read as follows:
3-21 Sec. 2306.008. FEDERAL MATCHING GRANTS. The department
3-22 shall emphasize the development of programs and policies under this
3-23 chapter in a manner that maximizes federal matching grants to
3-24 preserve long-term affordability for low income housing under
3-25 federal programs, including programs under:
3-26 (1) Section 221(d)(3), National Housing Act (12 U.S.C.
3-27 Section 1715l);
4-1 (2) Section 236, National Housing Act (12 U.S.C.
4-2 Section 1715z-1);
4-3 (3) Section 515, Housing Act of 1949 (42 U.S.C.
4-4 Section 1485); and
4-5 (4) Section 8, United States Housing Act of 1937 (42
4-6 U.S.C. Section 1437f).
4-7 SECTION 3. This Act takes effect September 1, 1999, and
4-8 applies to a multifamily housing development described by Section
4-9 2306.801, Government Code, as added by this Act, that a property
4-10 owner intends to sell, lease, dispose of, or take action involving
4-11 on or after January 1, 2000.
4-12 SECTION 4. The importance of this legislation and the
4-13 crowded condition of the calendars in both houses create an
4-14 emergency and an imperative public necessity that the
4-15 constitutional rule requiring bills to be read on three several
4-16 days in each house be suspended, and this rule is hereby suspended.