Amend CSSB 1798 by striking all below the enacting clause and substituting the following: SECTION 1. Subchapter B, Chapter 1372, Government Code, is amended by adding Section 1372.0221 to read as follows: Sec. 1372.0221. DEDICATION OF PORTION OF STATE CEILING FOR TEACHERS HOME LOAN PROGRAM. Out of that portion of the state ceiling that is available exclusively for reservations by issuers of qualified mortgage bonds under Section 1372.022, $25 million shall be allotted each year and made available exclusively to the Texas State Affordable Housing Corporation for the purpose of issuing qualified mortgage bonds in connection with the teachers home loan program established under Section 2306.562. SECTION 2. Sections 2306.553(a) and (b), Government Code, are amended to read as follows: (a) The public purpose of the corporation is to perform activities and services that the corporation's board of directors determines will promote the public health, safety, and welfare through the provision of adequate, safe, and sanitary housing primarily for individuals and families of low, very low, and extremely low income, and for teachers under the teachers home loan program as provided by Section 2306.562. The activities and services shall include engaging in mortgage banking activities and lending transactions and acquiring, holding, selling, or leasing real or personal property. (b) The corporation's primary public purpose is to facilitate the provision of housing and the making of affordable loans to individuals and families of low, very low, and extremely low income, and to teachers under the teachers home loan program. The corporation may make first lien, single family purchase money mortgage loans for single family homes only to individuals and families of low, very low, and extremely low income if the individual's or family's household income is not more than the greater of 60 percent of the median income for the state, as defined by the United States Department of Housing and Urban Development, or 60 percent of the area median family income, adjusted for family size, as defined by that department. The corporation may make loans for multifamily developments if: (1) at least 40 percent of the units in a multifamily development are affordable to individuals and families with incomes at or below 60 percent of the median family income, adjusted for family size; or (2) at least 20 percent of the units in a multifamily development are affordable to individuals and families with incomes at or below 50 percent of the median family income, adjusted for family size. SECTION 3. Subchapter Y, Chapter 2306, Government Code, is amended by adding Section 2306.562 to read as follows: Sec. 2306.562. TEACHERS HOME LOAN PROGRAM. (a) In this section: (1) "Home" means a dwelling in this state in which a teacher intends to reside as the teacher's principal residence. (2) "Mortgage lender" has the meaning assigned by Section 2306.004. (3) "Program" means the teachers home loan program. (4) "Teacher" means a person who is a classroom teacher as defined by Section 5.001, Education Code. (b) The corporation shall establish a program to provide eligible teachers with low-interest home mortgage loans. (c) To be eligible for a loan under this section, a teacher must: (1) have been residing in this state for the five-year period preceding the date the teacher files an application for a loan under this section; (2) have been working as a teacher for the three-year period preceding the application date; and (3) reside in this state on the application date. (d) The corporation may contract with other agencies of the state or with private entities to determine whether applicants qualify as teachers under this section or otherwise to administer all or part of this section. (e) The board of directors of the corporation may set and collect from each applicant any fees the board considers reasonable and necessary to cover the expenses of administering the program. (f) The board of directors of the corporation shall adopt rules governing: (1) the administration of the program; (2) the making of loans under the program; (3) the criteria for approving mortgage lenders; (4) the use of insurance on the loans and the homes financed under the program, as considered appropriate by the board to provide additional security for the loans; (5) the verification of occupancy of the home by the teacher as the teacher's principal residence; and (6) the terms of any contract made with any mortgage lender for processing, originating, servicing, or administering the loans. (g) The corporation shall ensure that a loan under this section is structured in a way that complies with any requirements associated with the source of the funds used for the loan. (h) In addition to funds set aside for the program under Section 1372.0221, the corporation may solicit and accept funding for the program from the following sources: (1) gifts and grants for the purposes of this section; (2) available money in the housing trust fund established under Section 2306.201, to the extent available to the corporation; (3) federal block grants that may be used for the purposes of this section, to the extent available to the corporation; (4) other state or federal programs that provide money that may be used for the purposes of this section; and (5) amounts received by the corporation in repayment of loans made under this section. (i) This section expires September 1, 2012. SECTION 4. The Texas State Affordable Housing Corporation shall: (1) aggressively pursue funding for the teachers home loan program required by Section 2306.562, Government Code, as added by this Act; and (2) implement the teachers home loan program required by that section not later than September 1, 2002. SECTION 5. (a) If the legislature finds in a scheduled review of the Texas State Affordable Housing Corporation by the Sunset Advisory Commission under Section 2306.5521, Government Code, that the teachers home loan program under Section 2306.562, Government Code, as added by this Act, is not being managed to accomplish the goal of providing low-interest home mortgage loans to teachers, the legislature shall make specific recommendations to remedy any problems. (b) If the legislature finds in a scheduled review of the Texas State Affordable Housing Corporation by the Sunset Advisory Commission under Section 2306.5521, Government Code, that the corporation should be abolished, the teachers home loan program under Section 2306.562, Government Code, as added by this Act, shall be transferred to another appropriate state agency. SECTION 6. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2001.