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. 2-3 * * * * *