By Ellis S.B. No. 1704 76R3561 KEL-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to down-payment assistance provided by and mortgage 1-3 lending programs administered by the Texas Department of Housing 1-4 and Community Affairs. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subchapter F, Chapter 2306, Government Code, is 1-7 amended by adding Section 2306.1115 to read as follows: 1-8 Sec. 2306.1115. HOUSING FUNDS USED FOR DOWN-PAYMENT 1-9 ASSISTANCE. The department may not use funds allocated to the 1-10 department under the federal HOME Investment Partnerships program 1-11 established under Title II of the Cranston-Gonzalez National 1-12 Affordable Housing Act (42 U.S.C. Section 12701 et seq.) to provide 1-13 down-payment assistance under this chapter in the form of a grant 1-14 or forgivable loan. 1-15 SECTION 2. As soon as possible after the effective date of 1-16 this Act, the Texas Department of Housing and Community Affairs, in 1-17 consultation with the Legislative Budget Board, shall restructure 1-18 the mortgage lending programs administered by the department to: 1-19 (1) leverage state and federal funds used in those 1-20 programs; 1-21 (2) enhance mortgage loan affordability; and 1-22 (3) provide for recovery of appropriate federal funds 1-23 from program participants so that the funds may be recycled and 1-24 used to provide assistance to additional participants. 2-1 SECTION 3. The change in law made by Section 1 of this Act 2-2 applies only to down-payment assistance provided on or after the 2-3 effective date of this Act. Down-payment assistance provided 2-4 before the effective date of this Act is covered by the law in 2-5 effect when the assistance was provided, and the former law is 2-6 continued in effect for that purpose. 2-7 SECTION 4. This Act takes effect September 1, 1999. 2-8 SECTION 5. The importance of this legislation and the 2-9 crowded condition of the calendars in both houses create an 2-10 emergency and an imperative public necessity that the 2-11 constitutional rule requiring bills to be read on three several 2-12 days in each house be suspended, and this rule is hereby suspended.