By Burnam H.B. No. 2376 77R4721 QS-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to integrated housing for individuals with special needs. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Section 2306.002(a), Government Code, is amended 1-5 to read as follows: 1-6 (a) The legislature finds that: 1-7 (1) every resident of this state should have a decent, 1-8 safe, integrated, accessible, and affordable living environment; 1-9 (2) government at all levels should be involved in 1-10 assisting individuals and families of low income in obtaining a 1-11 decent, safe, integrated, accessible, and affordable living 1-12 environment; and 1-13 (3) the development and diversification of the 1-14 economy, the elimination of unemployment or underemployment, and 1-15 the development or expansion of commerce in this state should be 1-16 encouraged. 1-17 SECTION 2. Sections 2306.004(8) and (13), Government Code, 1-18 are amended to read as follows: 1-19 (8) "Family of moderate income" means a family: 1-20 (A) that is determined by the board to require 1-21 assistance, taking into account: 1-22 (i) the amount of the total income 1-23 available for housing needs of the individuals and families; 1-24 (ii) the size of the family; 2-1 (iii) the cost and condition of available 2-2 housing facilities; 2-3 (iv) the ability of the individuals and 2-4 families to compete successfully in the private housing market and 2-5 to pay the amounts required by private enterprise for sanitary, 2-6 decent, integrated, accessible, and safe housing; and 2-7 (v) standards established for various 2-8 federal programs determining eligibility based on income; and 2-9 (B) that does not qualify as a family of low 2-10 income. 2-11 (13) "Housing development" means property or work or a 2-12 project, building, structure, facility, or undertaking, whether 2-13 existing, new construction, remodeling, improvement, or 2-14 rehabilitation, that meets or is designed to meet minimum property 2-15 standards required by the department and that is financed under the 2-16 provisions of this chapter for the primary purpose of providing 2-17 sanitary, decent, integrated, accessible, and safe dwelling 2-18 accommodations for rent, lease, use, or purchase by individuals and 2-19 families of low and very low income and families of moderate income 2-20 in need of housing. The term includes: 2-21 (A) buildings, structures, land, equipment, 2-22 facilities, or other real or personal properties that are 2-23 necessary, convenient, or desirable appurtenances, including 2-24 streets, water, sewers, utilities, parks, site preparation, 2-25 landscaping, stores, offices, and other nonhousing facilities, such 2-26 as administrative, community, and recreational facilities the 2-27 department determines to be necessary, convenient, or desirable 3-1 appurtenances; and 3-2 (B) single and multifamily dwellings in rural 3-3 and urban areas. 3-4 SECTION 3. Sections 2306.171 and 2306.182, Government Code, 3-5 are amended to read as follows: 3-6 Sec. 2306.171. GENERAL DUTIES OF DEPARTMENT RELATING TO 3-7 PURPOSES OF HOUSING FINANCE DIVISION. The department shall: 3-8 (1) develop policies and programs designed to increase 3-9 the number of individuals and families of extremely low, very low, 3-10 and low income and families of moderate income that participate in 3-11 the housing finance division's programs; 3-12 (2) work with municipalities, counties, public 3-13 agencies, housing sponsors, and nonprofit and for profit 3-14 corporations to provide: 3-15 (A) information on division programs; and 3-16 (B) technical assistance to municipalities, 3-17 counties, and nonprofit corporations; 3-18 (3) encourage private for profit and nonprofit 3-19 corporations and state organizations to match the division's funds 3-20 to assist in providing decent, safe, integrated, accessible, and 3-21 affordable housing to individuals and families of low and very low 3-22 income and families of moderate income; 3-23 (4) provide matching funds to municipalities, 3-24 counties, public agencies, housing sponsors, and nonprofit 3-25 developers who qualify under the division's programs; and 3-26 (5) administer the state's allocation of federal funds 3-27 provided under the rental rehabilitation grant program authorized 4-1 by Section 17, Title I, of the United States Housing Act of 1937 4-2 (42 U.S.C. Section 1437o). 4-3 Sec. 2306.182. LOANS TO LENDERS. The department may make 4-4 loans to mortgage lenders, public agencies, or other housing 4-5 sponsors and use the proceeds to make loans for decent, safe, 4-6 integrated, accessible, and affordable multifamily housing 4-7 developments that will be substantially occupied by individuals and 4-8 families of low and very low income or families of moderate income. 4-9 SECTION 4. Section 2306.202(a), Government Code, is amended 4-10 to read as follows: 4-11 (a) The department, through the housing finance division, 4-12 shall use the housing trust fund to provide loans, grants, or other 4-13 comparable forms of assistance to local units of government, public 4-14 housing authorities, nonprofit organizations, and income-eligible 4-15 individuals, families, and households to finance, acquire, 4-16 rehabilitate, and develop decent, safe, integrated, accessible, and 4-17 sanitary housing. In each biennium the first $2.6 million 4-18 available through the housing trust fund for loans, grants, or 4-19 other comparable forms of assistance shall be set aside and made 4-20 available exclusively for local units of government, public housing 4-21 authorities, and nonprofit organizations. Any additional funds may 4-22 also be made available to for-profit organizations so long as at 4-23 least 45 percent of available funds in excess of the first $2.6 4-24 million shall be made available to nonprofit organizations for the 4-25 purpose of acquiring, rehabilitating, and developing decent, safe, 4-26 integrated, accessible, and sanitary housing. The remaining 4-27 portion shall be competed for by nonprofit organizations, 5-1 for-profit organizations, and other eligible entities. 5-2 Notwithstanding any other section of this chapter, but subject to 5-3 the limitations in Section 2306.251(c), the department may also use 5-4 the fund to acquire property to endow the fund. 5-5 SECTION 5. Section 2306.223, Government Code, is amended to 5-6 read as follows: 5-7 Sec. 2306.223. CRITERIA FOR FINANCING HOUSING DEVELOPMENT OF 5-8 HOUSING SPONSOR. Notwithstanding any other provision of this 5-9 chapter, the department may not finance a housing development 5-10 undertaken by a housing sponsor under this chapter, unless the 5-11 department first determines that: 5-12 (1) the housing development is necessary to provide 5-13 needed decent, safe, integrated, accessible, and sanitary housing 5-14 at rentals or prices that individuals or families of low and very 5-15 low income or families of moderate income can afford; 5-16 (2) the housing sponsor undertaking the proposed 5-17 housing development will supply well-planned and well-designed 5-18 housing for individuals or families of low and very low income or 5-19 families of moderate income; 5-20 (3) the housing sponsor is financially responsible; 5-21 (4) the financing of the housing development is a 5-22 public purpose and will provide a public benefit; and 5-23 (5) the housing development will be undertaken within 5-24 the authority granted by this chapter to the housing finance 5-25 division and the housing sponsor. 5-26 SECTION 6. Section 2306.511, Government Code, is amended to 5-27 read as follows: 6-1 Sec. 2306.511. DEFINITION. In this subchapter, "individual 6-2 with special needs" means an individual who: 6-3 (1) is considered to be an individual having a 6-4 disability under a state or federal law; 6-5 (2) is elderly; 6-6 (3) is designated by the board as experiencing a 6-7 unique need for decent, safe, integrated, accessible, and sanitary 6-8 housing that is not being met adequately by private enterprise; or 6-9 (4) is legally responsible for caring for an 6-10 individual described by Subdivision (1), (2), or (3) and meets the 6-11 income guidelines established by the board. 6-12 SECTION 7. Subchapter X, Chapter 2306, Government Code, is 6-13 amended by adding Section 2306.515 to read as follows: 6-14 Sec. 2306.515. INTEGRATED HOUSING. (a) In its housing 6-15 assistance programs, the department shall require the integration 6-16 of housing for individuals with special needs into multifamily 6-17 housing developments in accordance with Section 504 of the 6-18 Rehabilitation Act of 1973 (29 U.S.C. Section 794). 6-19 (b) The department shall limit the amount of assistance 6-20 provided by the department for the construction or rehabilitation 6-21 of affordable housing containing assisted living facilities, as 6-22 defined by Section 247.002, Health and Safety Code, or affordable 6-23 housing solely for individuals with special needs. 6-24 SECTION 8. This Act takes effect September 1, 2001.