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.