By Ritter H.B. No. 2116 77R3242 QS-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to a restriction on the financing of multifamily 1-3 residential developments by housing finance corporations. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter Z, Chapter 394, Local Government Code, 1-6 is amended by adding Section 394.9025 to read as follows: 1-7 Sec. 394.9025. MULTIFAMILY RESIDENTIAL DEVELOPMENT. A 1-8 housing finance corporation may not finance a multifamily 1-9 residential development unless at least 50 percent of the units in 1-10 the residential development are reserved for the lifetime of the 1-11 residential development for occupancy by individuals and families 1-12 earning less than 100 percent of the area median family income. 1-13 SECTION 2. The change in law made by Section 394.9025, Local 1-14 Government Code, as added by this Act, applies only to a 1-15 multifamily residential development that is financed by bonds 1-16 issued under Chapter 394, Local Government Code, as a result of an 1-17 official decision to issue bonds that occurs on or after the 1-18 effective date of this Act. 1-19 SECTION 3. This Act takes effect August 31, 2002.