1-1     By:  Lucio                                             S.B. No. 867
 1-2           (In the Senate - Filed March 4, 1999; March 8, 1999, read
 1-3     first time and referred to Special Committee on Border Affairs;
 1-4     April 19, 1999, reported favorably, as amended, by the following
 1-5     vote:  Yeas 7, Nays 0; April 19, 1999, sent to printer.)
 1-6     COMMITTEE AMENDMENT NO. 1                                By:  Truan
 1-7           Amend S.B. No. 867 by striking the sentence that begins on
 1-8     page 1, line 41.
 1-9                            A BILL TO BE ENTITLED
1-10                                   AN ACT
1-11     relating to a loan guarantee to convert a contract for deed to a
1-12     warranty deed.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14           SECTION 1.  Subchapter K, Chapter 2306, Government Code, is
1-15     amended by adding Section 2306.255 to read as follows:
1-16           Sec. 2306.255.  CONTRACT FOR DEED CONVERSION PROGRAM.
1-17     (a)  In this section, "office" means the office established by the
1-18     department to promote initiatives for colonias.
1-19           (b)  The office shall establish a program to guarantee loans
1-20     made by private lenders to convert a contract for deed into a
1-21     warranty deed.
1-22           (c)  The office shall make agreements with private lenders
1-23     that will issue loans for contract conversions under the guarantee
1-24     of the department.  The office and the lender must agree on the
1-25     criteria for issuing a deed conversion loan, including the
1-26     percentage of the guarantee to be issued by the department.
1-27           (d)  The office may not make an agreement with a lender
1-28     unless the agreement allows the office to annually renegotiate the
1-29     guarantee percentage for a loan issued by the lender.  The office
1-30     shall renegotiate the terms of a guarantee when possible to obtain
1-31     a better guarantee percentage for the state from the lender.
1-32           (e)  The office may establish eligibility criteria for a
1-33     holder of a contract for deed who participates in this program.
1-34     The criteria must include a priority for homeowners and owners of
1-35     residential real property who are individuals or families of low,
1-36     very low, or extremely low income.
1-37           (f)  The office shall use funds allocated to the department
1-38     under the federal HOME Investment Partnerships program established
1-39     under Title II of the Cranston-Gonzalez National Affordable Housing
1-40     Act (42 U.S.C. Section 12701 et seq.) for a guarantee issued under
1-41     this section.  The office may not spend state money to fund a
1-42     guarantee for a loan under the program.
1-43           (g)  The office may use the services of the Texas State
1-44     Affordable Housing Corporation when necessary to accomplish the
1-45     purposes of this section.
1-46           (h)  The office shall:
1-47                 (1)  compose an annual report that evaluates the
1-48     repayment history and coinciding guarantee percentages for
1-49     guarantees issued under this section; and
1-50                 (2)  deliver a copy of the report to the governor, the
1-51     lieutenant governor, and the speaker of the house of
1-52     representatives.
1-53           (i)  The department may adopt rules necessary to accomplish
1-54     the purposes of this section.
1-55           SECTION 2.  (a)  This Act takes effect September 1, 1999.
1-56           (b)  The office established by the Texas Department of
1-57     Housing and Community Affairs to promote initiatives for colonias
1-58     shall deliver the first report required by Subsection (h), Section
1-59     2306.255, Government Code, as added by this Act, not later than
1-60     January 1, 2001.
1-61           SECTION 3.  The importance of this legislation and the
1-62     crowded condition of the calendars in both houses create an
1-63     emergency and an imperative public necessity that the
 2-1     constitutional rule requiring bills to be read on three several
 2-2     days in each house be suspended, and this rule is hereby suspended.
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