By Gallego, Carter, Ehrhardt, McCall, Bosse H.B. No. 3449
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the continuation and functions of the Texas Department
1-3 of Housing and Community Affairs and to other matters relating to
1-4 housing or community development, including the creation of the
1-5 Manufactured Housing Board and the Office of Rural Community
1-6 Affairs; providing a penalty.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 ARTICLE 1
1-9 SECTION 1.01. Section 2306.001, Government Code, is amended
1-10 to read as follows:
1-11 Sec. 2306.001. PURPOSES. The purposes of the department are
1-12 to:
1-13 (1) assist local governments in:
1-14 (A) providing essential public services for
1-15 their residents; and
1-16 (B) overcoming financial, social, and
1-17 environmental problems;
1-18 (2) provide for the housing needs of individuals and
1-19 families of low, [and] very low, and extremely low income and
1-20 families of moderate income;
1-21 (3) contribute to the preservation, development, and
1-22 redevelopment of neighborhoods and communities, including
1-23 cooperation in the preservation of government-assisted housing
1-24 occupied by individuals and families of very low and extremely low
2-1 income;
2-2 (4) assist the governor and the legislature in
2-3 coordinating federal and state programs affecting local government;
2-4 [and]
2-5 (5) inform state officials and the public of the needs
2-6 of local government; and
2-7 (6) serve as a source of information to the public
2-8 regarding all affordable housing resources and community support
2-9 services in the state.
2-10 SECTION 1.02. Section 2306.021(b), Government Code, is
2-11 amended to read as follows:
2-12 (b) The department is composed of:
2-13 (1) the community affairs division;
2-14 (2) the housing finance division;
2-15 (3) the manufactured housing division;
2-16 (4) the community development division; and
2-17 (5) any other division created by the director under
2-18 Section 2306.0521.
2-19 SECTION 1.03. Subchapter B, Chapter 2306, Government Code, is
2-20 amended by amending Sections 2306.022, 2306.024, 2306.025,
2-21 2306.027, and 2306.033-2306.035 and adding Section 2306.028 to read
2-22 as follows:
2-23 Sec. 2306.022. APPLICATION OF SUNSET ACT. The Texas
2-24 Department of Housing and Community Affairs is subject to Chapter
2-25 325 (Texas Sunset Act). Unless continued in existence as provided
2-26 by that chapter, the department is abolished and this chapter
2-27 expires September 1, 2003 [2001].
3-1 Sec. 2306.024. BOARD MEMBERS: APPOINTMENT AND COMPOSITION.
3-2 The board consists of seven public [nine] members appointed by the
3-3 governor.
3-4 Sec. 2306.025. TERMS OF BOARD MEMBERS. Members of the board
3-5 hold office for staggered terms of six years, with the terms of two
3-6 or three members expiring on January 31 of each odd-numbered year.
3-7 Sec. 2306.027. ELIGIBILITY. (a) The governor shall appoint
3-8 [make appointments] to the board public members who have a
3-9 demonstrated interest in issues related to housing and community
3-10 support services. A person appointed to the board must be a
3-11 registered voter in the state and may not hold another public
3-12 office [as follows:]
3-13 [(1) Place 1: an individual representing lending
3-14 institutions;]
3-15 [(2) Place 2: an individual representing local
3-16 government;]
3-17 [(3) Place 3: an individual representing housing
3-18 construction;]
3-19 [(4) Place 4: an individual representing
3-20 community-based nonprofit housing organizations;]
3-21 [(5) Place 5: an individual representing realtors or
3-22 housing developers;]
3-23 [(6) Place 6: an individual representing individuals
3-24 and families of low or very low income; and]
3-25 [(7) Places 7 through 9: public members].
3-26 (b) Appointments [Except as necessary to comply with the
3-27 requirements of Section 2306.026 regarding diversity, appointments]
4-1 to the board shall be made without regard to the race, color,
4-2 disability [handicap], sex, religion, age, or national origin of
4-3 the appointees and shall be made in a manner that produces
4-4 representation on the board of the different geographical regions
4-5 of this state. Appointments to the board must broadly reflect the
4-6 economic, geographic, cultural, and social diversity of the state,
4-7 including ethnic minorities, persons with disabilities, and women.
4-8 (c) A person may not be a member of the board if the person
4-9 or the person's spouse:
4-10 (1) is employed by or participates in the management
4-11 of a business entity or other organization regulated by or
4-12 receiving money from the department;
4-13 (2) owns or controls, directly or indirectly, more
4-14 than a 10 percent interest in a business entity or other
4-15 organization regulated by or receiving money from the department;
4-16 or
4-17 (3) uses or receives a substantial amount of tangible
4-18 goods, services, or money from the department other than
4-19 compensation or reimbursement authorized by law for board
4-20 membership, attendance, or expenses [An elected or appointed
4-21 official of a political subdivision appointed to Place 2 on the
4-22 board is a member of the board as an additional or ex officio duty
4-23 required by the member's other official capacity, and the member's
4-24 service on the board is not dual office holding].
4-25 Sec. 2306.028. TRAINING. (a) A person who is appointed to
4-26 and qualifies for office as a member of the board may not vote,
4-27 deliberate, or be counted as a member in attendance at a meeting of
5-1 the board until the person completes a training program that
5-2 complies with this section.
5-3 (b) The training program must provide the person with
5-4 information regarding:
5-5 (1) the legislation that created the department and
5-6 the board;
5-7 (2) the programs operated by the department;
5-8 (3) the role and functions of the department;
5-9 (4) the rules of the department, with an emphasis on
5-10 the rules that relate to disciplinary and investigatory authority;
5-11 (5) the current budget for the department;
5-12 (6) the results of the most recent formal audit of the
5-13 department;
5-14 (7) the requirements of:
5-15 (A) the open meetings law, Chapter 551;
5-16 (B) the public information law, Chapter 552;
5-17 (C) the administrative procedure law, Chapter
5-18 2001; and
5-19 (D) other laws relating to public officials,
5-20 including conflict-of-interest laws;
5-21 (8) the requirements of:
5-22 (A) state and federal fair housing laws,
5-23 including Chapter 301, Property Code, Title VIII of the Civil
5-24 Rights Act of 1968 (42 U.S.C. Section 3601 et seq.), and the Fair
5-25 Housing Amendments Act of 1988 (42 U.S.C. Section 3601 et seq.);
5-26 (B) the Civil Rights Act of 1964 (42 U.S.C.
5-27 Section 2000a et seq.);
6-1 (C) the Americans with Disabilities Act of 1990
6-2 (42 U.S.C. Section 12101 et seq.); and
6-3 (D) the Rehabilitation Act of 1973 (29 U.S.C.
6-4 Section 701 et seq.); and
6-5 (9) any applicable ethics policies adopted by the
6-6 department or the Texas Ethics Commission.
6-7 (c) A person appointed to the board is entitled to
6-8 reimbursement, as provided by the General Appropriations Act, for
6-9 the travel expenses incurred in attending the training program
6-10 regardless of whether the attendance at the program occurs before
6-11 or after the person qualifies for office.
6-12 Sec. 2306.033. REMOVAL OF MEMBERS. (a) It is a ground for
6-13 removal from the board that a member:
6-14 (1) does not have at the time of taking office
6-15 [appointment] the qualifications required by Section [2306.026,]
6-16 2306.027[, or 2306.028 for appointment to the board];
6-17 (2) does not maintain during [the] service on the
6-18 board the qualifications required by Section [2306.026,] 2306.027[,
6-19 or 2306.028 for appointment to the board];
6-20 (3) is ineligible for membership under [violates a
6-21 prohibition established by] Section 2306.027(c), 2306.034, or
6-22 2306.035;
6-23 (4) cannot, because of illness or disability,
6-24 discharge the member's duties for a substantial part of the
6-25 member's term [for which the member is appointed because of illness
6-26 or disability];
6-27 (5) is absent from more than half of the regularly
7-1 scheduled board meetings [of the board] that the member is eligible
7-2 to attend during a calendar year without an excuse approved [unless
7-3 the absence is excused] by a majority vote of the board; or
7-4 (6) engages in misconduct or unethical or criminal
7-5 behavior.
7-6 (b) The validity of an action of the board is not affected
7-7 by the fact that it is taken when a ground for removal of a board
7-8 member exists.
7-9 (c) If the director has knowledge that a potential ground
7-10 for removal exists, the director shall notify the presiding officer
7-11 of the board of the potential ground. The presiding officer shall
7-12 then notify the governor and the attorney general that a potential
7-13 ground for removal exists. If the potential ground for removal
7-14 involves the presiding officer, the director shall notify the next
7-15 highest ranking officer of the board, who shall then notify the
7-16 governor and the attorney general that a potential ground for
7-17 removal exists.
7-18 Sec. 2306.034. DISQUALIFICATION OF MEMBERS AND CERTAIN
7-19 EMPLOYEES. (a) In [An employee or paid consultant of a Texas trade
7-20 association in the field of banking, real estate, housing
7-21 development, or housing construction may not be a member of the
7-22 board or an employee of the department who is exempt from the
7-23 state's position classification plan or is compensated at or above
7-24 the amount prescribed by the General Appropriations Act for step 1,
7-25 salary group 17, of the position classification salary schedule.]
7-26 [(b) For the purposes of] this section, [a] "Texas trade
7-27 association" means [is] a [nonprofit,] cooperative[,] and
8-1 voluntarily joined association of business or professional
8-2 competitors in this state designed to assist its members and its
8-3 industry or profession in dealing with mutual business or
8-4 professional problems and in promoting their common interest.
8-5 (b) A person may not be a member of the board and may not be
8-6 a department employee employed in a "bona fide executive,
8-7 administrative, or professional capacity," as that phrase is used
8-8 for purposes of establishing an exemption to the overtime
8-9 provisions of the federal Fair Labor Standards Act of 1938 (29
8-10 U.S.C. Section 201 et seq.) if:
8-11 (1) the person is an officer, employee, or paid
8-12 consultant of a Texas trade association in the field of banking,
8-13 real estate, housing development, or housing construction; or
8-14 (2) the person's spouse is an officer, manager, or
8-15 paid consultant of a Texas trade association in the field of
8-16 banking, real estate, housing development, or housing construction.
8-17 Sec. 2306.035. LOBBYIST RESTRICTION. A person may not be
8-18 [serve as] a member of the board or act as the director of the
8-19 department or the general counsel to the board or the department if
8-20 the person is required to register as a lobbyist under Chapter 305
8-21 because of the person's activities for compensation [in or] on
8-22 behalf of a profession related to the operation of the department.
8-23 SECTION 1.04. Section 2306.030(a), Government Code, is
8-24 amended to read as follows:
8-25 (a) The governor shall designate a member of [appoint a
8-26 presiding officer from] the board as the presiding officer of the
8-27 board to serve in that capacity at the will of the governor
9-1 [members]. The presiding officer presides at meetings of the board
9-2 and performs other duties required by this chapter.
9-3 SECTION 1.05. Section 2306.032, Government Code, is amended
9-4 by adding Subsections (c)-(g) to read as follows:
9-5 (c) All materials in the possession of the department that
9-6 are relevant to a matter proposed for discussion at a board meeting
9-7 must be posted on the department's website, made available in
9-8 hard-copy format at the department, filed with the secretary of
9-9 state for publication by reference in the Texas Register, and
9-10 disseminated by any other means required by this chapter or by
9-11 Chapter 551.
9-12 (d) The materials described by Subsection (c) must be made
9-13 available to the public as required by Subsection (c) not later
9-14 than the seventh day before the date of the meeting. The board may
9-15 not consider at the meeting any material that is not made available
9-16 to the public by the date required by this subsection.
9-17 (e) The agenda for a board meeting must state each project
9-18 the staff is recommending for assistance by the department.
9-19 (f) For each item on the board's agenda at the meeting, the
9-20 board shall provide for public comment after the presentation made
9-21 by department staff and the motions made by the board on that
9-22 topic.
9-23 (g) The board shall adopt rules that give the public a
9-24 reasonable amount of time for testimony at meetings.
9-25 SECTION 1.06. Subchapter B, Chapter 2306, Government Code, is
9-26 amended by adding Section 2306.0321 to read as follows:
9-27 Sec. 2306.0321. APPEAL OF BOARD AND DEPARTMENT DECISIONS.
10-1 (a) The board shall adopt rules outlining a formal process for
10-2 appealing board and department decisions.
10-3 (b) The rules must specify the requirements for appealing a
10-4 board or department decision, including:
10-5 (1) the persons eligible to appeal;
10-6 (2) the grounds for an appeal;
10-7 (3) the process for filing an appeal, including the
10-8 information that must be submitted with an appeal;
10-9 (4) a reasonable period in which an appeal must be
10-10 filed, heard, and decided;
10-11 (5) the process by which an appeal is heard and a
10-12 decision is made;
10-13 (6) the possible outcomes of an appeal; and
10-14 (7) the process by which notification of a decision
10-15 and the basis for a decision is given.
10-16 SECTION 1.07. Subchapter C, Chapter 2306, Government Code, is
10-17 amended by adding Sections 2306.051, 2306.0521, and 2306.057 to
10-18 read as follows:
10-19 Sec. 2306.051. SEPARATION OF RESPONSIBILITIES. The board
10-20 shall develop and implement policies that clearly separate the
10-21 policy-making responsibilities of the board and the management
10-22 responsibilities of the director and staff of the department.
10-23 Sec. 2306.0521. ORGANIZATIONAL FLEXIBILITY OF DEPARTMENT.
10-24 (a) Notwithstanding Section 2306.021(b) or any other provision of
10-25 this chapter, the director, with the approval of the board, may:
10-26 (1) create divisions in addition to those listed in
10-27 Section 2306.021(b) and assign to the newly created divisions any
11-1 duties and powers imposed on or granted to an existing division or
11-2 the department generally;
11-3 (2) eliminate any division listed in Section
11-4 2306.021(b) or created under this section and assign any duties or
11-5 powers previously assigned to the eliminated division to another
11-6 division listed in Section 2306.021(b) or created under this
11-7 section; or
11-8 (3) eliminate all divisions listed in Section
11-9 2306.021(b) or created under this section and reorganize the
11-10 distribution of powers and duties granted to or imposed on a
11-11 division in any manner the director determines appropriate for the
11-12 proper administration of the department.
11-13 (b) This section does not apply to the manufactured housing
11-14 division.
11-15 Sec. 2306.057. COMPLIANCE ASSESSMENT REQUIRED FOR PROJECT
11-16 APPROVAL BY BOARD. (a) Before the board approves any project
11-17 application submitted under this chapter, the department, through
11-18 the division with responsibility for compliance matters, shall:
11-19 (1) assess:
11-20 (A) the compliance history of the applicant and
11-21 any affiliate of the applicant with respect to all applicable
11-22 requirements; and
11-23 (B) the compliance issues associated with the
11-24 proposed project; and
11-25 (2) provide to the board a written report regarding
11-26 the results of the assessments described by Subdivision (1).
11-27 (b) The written report described by Subsection (a)(2) must
12-1 be included in the appropriate project file for board and
12-2 department review.
12-3 (c) The board shall fully document and disclose any
12-4 instances in which the board approves a project application despite
12-5 any noncompliance associated with the project, applicant, or
12-6 affiliate.
12-7 SECTION 1.08. Section 2306.052, Government Code, is amended
12-8 by amending Subsection (c) and adding Subsections (e) and (f) to
12-9 read as follows:
12-10 (c) The director shall develop and implement the policies
12-11 established by the board that define the responsibilities of each[:]
12-12 [(1) the director, board, and staff of the department;
12-13 and]
12-14 [(2) the community affairs division, the housing
12-15 finance division, and any other] division in the department.
12-16 (e) The board shall adopt rules and the director shall
12-17 develop and implement a program to train employees on the public
12-18 information requirements of Chapter 552. The director shall
12-19 monitor the compliance of employees with those requirements.
12-20 (f) The director shall use existing department resources to
12-21 provide the board with any administrative support necessary for the
12-22 board to exercise its duties regarding the implementation of this
12-23 chapter, including:
12-24 (1) assigning personnel to assist the board;
12-25 (2) providing office space, equipment, and documents
12-26 and other information to the board; and
12-27 (3) making in-house legal counsel available to the
13-1 board.
13-2 SECTION 1.09. Subchapter D, Chapter 2306, Government Code, is
13-3 amended by amending Section 2306.061 and adding Sections 2306.0631
13-4 and 2306.081 to read as follows:
13-5 Sec. 2306.061. STANDARDS OF [INFORMATION ON QUALIFICATIONS
13-6 AND] CONDUCT. The director or the director's designee shall become
13-7 aware of and provide to members of the board [members] and to [the]
13-8 department employees, as often as necessary, information regarding
13-9 the requirements [about the director's, members', and employees':]
13-10 [(1) qualifications] for office or employment under
13-11 this chapter, including information regarding a person's[; and]
13-12 [(2)] responsibilities under applicable laws relating
13-13 to standards of conduct for state officers or employees.
13-14 Sec. 2306.0631. STATE EMPLOYEE INCENTIVE PROGRAM. The
13-15 director or the director's designee shall provide to department
13-16 employees information and training on the benefits and methods of
13-17 participation in the state employee incentive program under
13-18 Subchapter B, Chapter 2108.
13-19 Sec. 2306.081. PROJECT COMPLIANCE; DATABASE. (a) The
13-20 department, through the division with responsibility for compliance
13-21 matters, shall monitor for compliance with all applicable
13-22 requirements the entire construction phase associated with any
13-23 project under this chapter. The monitoring level for each project
13-24 must be based on the amount of risk associated with the project.
13-25 (b) After completion of a project's construction phase, the
13-26 department shall periodically review the performance of the project
13-27 to confirm the accuracy of the department's initial compliance
14-1 evaluation during the construction phase.
14-2 (c) The department shall use the division responsible for
14-3 credit underwriting matters and the division responsible for
14-4 compliance matters to determine the amount of risk associated with
14-5 each project.
14-6 (d) The department shall create an easily accessible
14-7 database that contains all project compliance information developed
14-8 under this chapter.
14-9 SECTION 1.10. Sections 2306.066(b) and (c), Government Code,
14-10 are amended to read as follows:
14-11 (b) The department shall maintain a [keep an information]
14-12 file on [about] each written complaint filed with the department
14-13 [that the department has authority to resolve]. The file must
14-14 include:
14-15 (1) the name of the person who filed the complaint;
14-16 (2) the date the complaint is received by the
14-17 department;
14-18 (3) the subject matter of the complaint;
14-19 (4) the name of each person contacted in relation to
14-20 the complaint;
14-21 (5) a summary of the results of the review or
14-22 investigation of the complaint; and
14-23 (6) an explanation of the reason the file was closed,
14-24 if the department closed the file without taking action other than
14-25 to investigate the complaint.
14-26 (c) The department shall provide to the person filing the
14-27 complaint and to each person who is a subject of the complaint a
15-1 copy of the department's policies and procedures relating to
15-2 complaint investigation and resolution. The [If a written
15-3 complaint is filed with the department that the department has
15-4 authority to resolve, the] department, at least quarterly [and]
15-5 until final disposition of the complaint, shall notify the person
15-6 filing the complaint and each person who is a subject of [parties
15-7 to] the complaint of the status of the investigation [complaint]
15-8 unless the notice would jeopardize an undercover investigation.
15-9 SECTION 1.11. Section 2306.0661, Government Code, is amended
15-10 to read as follows:
15-11 Sec. 2306.0661. PUBLIC HEARINGS. (a) Except as provided by
15-12 Subsection (b), this [This] section applies only to state-funded
15-13 housing programs, programs funded with bond proceeds, the low
15-14 income housing tax credit program, and the state low income housing
15-15 plan. Federally funded programs shall comply with the federal
15-16 public participation requirements and Chapter 2105, if applicable.
15-17 (b) The department shall encourage informed and effective
15-18 public participation in the department's programs and plans by
15-19 [through] holding, on at least an annual basis in each uniform
15-20 service region of the state, a consolidated public hearing in which
15-21 the board solicits and accepts public comments regarding the
15-22 following programs:
15-23 (1) the housing trust fund program;
15-24 (2) the HOME investment partnerships program;
15-25 (3) the single-family housing mortgage revenue bond
15-26 program;
15-27 (4) the multifamily housing mortgage revenue bond
16-1 program;
16-2 (5) the low income housing tax credit program;
16-3 (6) the low income energy assistance program;
16-4 (7) any other program in the consolidated plan
16-5 submitted to the United States Department of Housing and Urban
16-6 Development; and
16-7 (8) any other program in the state low income housing
16-8 plan [hearings and soliciting and accepting public comments during
16-9 those hearings].
16-10 (c) In holding a public hearing, the department shall ensure
16-11 that:
16-12 (1) the location of the hearing is:
16-13 (A) in a public building or facility accessible
16-14 to the public;
16-15 (B) accessible to persons with disabilities; and
16-16 (C) reasonably accessible by public
16-17 transportation, if available;
16-18 (2) hearings are scheduled at times when working and
16-19 nonworking people can attend; and
16-20 (3) child care is provided where practical.
16-21 (d) [(c)] In scheduling a public hearing, the department
16-22 shall:
16-23 (1) publish notice of the time, place, and subject of
16-24 the hearing in the Texas Register and a newspaper of general
16-25 circulation in the community in which the hearing is to be held at
16-26 least seven days before the date of the hearing. Whenever
16-27 practical, the department shall publish notice of the time, place,
17-1 and subject of the hearing in the Texas Register and a newspaper of
17-2 general circulation in the community in which the hearing is to be
17-3 held at least thirty days before the date of the hearing;
17-4 (2) provide notice of the hearing to each public
17-5 library, in the community in which the hearing is to be held, for
17-6 posting in a public area of the library;
17-7 (3) provide notice of the hearing to:
17-8 (A) each member of the board;
17-9 (B) each member of the advisory committee
17-10 consulted by the department during preparation of the state low
17-11 income housing plan; and
17-12 (C) each member of the legislature;
17-13 (4) [make a reasonable effort to inform interested
17-14 persons and organizations of the hearing;]
17-15 [(5)] make information about the hearing, including,
17-16 if appropriate, the qualified allocation plan, application forms
17-17 for a low income housing tax credit, and the state low income
17-18 housing plan, available on the Internet in accordance with
17-19 Subsection (e) and with Section 2306.077; and
17-20 (5) [(6)] provide an opportunity for persons to
17-21 transmit on the Internet written testimony or comments on a subject
17-22 of a hearing in accordance with rules adopted by the board.
17-23 (e) At least one week before the date of the hearing, all
17-24 materials in the possession of the department that are relevant to
17-25 a matter proposed for discussion at a consolidated public hearing
17-26 under this section must be sent to interested persons and
17-27 organizations, posted on the department's website, made available
18-1 in hard-copy format at the department, filed with the secretary of
18-2 state for publication by reference in the Texas Register, and
18-3 disseminated by any other means required by this chapter or by
18-4 Chapter 551.
18-5 SECTION 1.12. Section 2306.067, Government Code, is amended
18-6 by adding Subsection (d) to read as follows:
18-7 (d) The director may enter into an agreement with the
18-8 manufactured housing division to loan or assign department
18-9 employees, equipment, and facilities to that division.
18-10 SECTION 1.13. Section 2306.0721, Government Code, is amended
18-11 by amending Subsection (c) and adding Subsection (f) to read as
18-12 follows:
18-13 (c) The plan must include:
18-14 (1) an estimate and analysis of the housing needs of
18-15 the following populations in each uniform [the] state service
18-16 region:
18-17 (A) individuals and families of moderate, low,
18-18 [and] very low, and extremely low income;
18-19 (B) individuals with special needs; and
18-20 (C) homeless individuals;
18-21 (2) a proposal to use all available housing resources
18-22 to address the housing needs of the populations described by
18-23 Subdivision (1) by establishing funding levels for all
18-24 housing-related programs;
18-25 (3) an estimate of the number of federally assisted
18-26 housing units available for individuals and families of low and
18-27 very low income and individuals with special needs in each uniform
19-1 state service region [county];
19-2 (4) a description of state programs that govern the
19-3 use of all available housing resources;
19-4 (5) a resource allocation plan that targets all
19-5 available housing resources to individuals and families of low and
19-6 very low income and individuals with special needs in each uniform
19-7 state service region;
19-8 (6) a description of the department's efforts to
19-9 monitor and analyze the unused or underused federal resources of
19-10 other state agencies for housing-related services and services for
19-11 homeless individuals and the department's recommendations to ensure
19-12 the full use by the state of all available federal resources for
19-13 those services in each uniform state service region;
19-14 (7) strategies to provide housing for individuals and
19-15 families with special needs in each uniform state service region;
19-16 (8) a description of the department's efforts to
19-17 encourage in each uniform state service region the construction of
19-18 housing units that incorporate energy efficient construction and
19-19 appliances; [and]
19-20 (9) an estimate and analysis of the housing supply in
19-21 each uniform state service region;
19-22 (10) an inventory of all publicly and, where possible,
19-23 privately funded housing resources, including public housing
19-24 authorities, housing finance corporations, community housing
19-25 development organizations, and community action agencies;
19-26 (11) strategies for meeting rural housing needs;
19-27 (12) information on the demand for contract-for-deed
20-1 conversions, services from self-help centers, consumer education,
20-2 and other colonia resident services in counties some part of which
20-3 is within 150 miles of the international border of this state;
20-4 (13) a summary of public comments received at a
20-5 hearing under this chapter or from another source that concern the
20-6 demand for colonia resident services described by Subdivision (12);
20-7 and
20-8 (14) any other housing-related information that the
20-9 state is required to include in the one-year action plan of the
20-10 consolidated plan submitted annually to the United States
20-11 Department of Housing and Urban Development.
20-12 (f) The director may subdivide the uniform state service
20-13 regions as necessary for purposes of the state low income housing
20-14 plan.
20-15 SECTION 1.14. Section 2306.0722, Government Code, is amended
20-16 to read as follows:
20-17 Sec. 2306.0722. PREPARATION OF PLAN AND REPORT. (a) Before
20-18 preparing the annual low income housing report under Section
20-19 2306.072 and the state low income housing plan under Section
20-20 2306.0721, the department shall meet with regional planning
20-21 commissions created under Chapter 391, Local Government Code,
20-22 representatives of groups with an interest in low income housing,
20-23 nonprofit housing organizations, managers, owners, and developers
20-24 of affordable housing, local government officials, and residents of
20-25 low income housing. The department shall obtain the comments and
20-26 suggestions of the representatives, officials, and residents about
20-27 the prioritization and allocation of the department's resources in
21-1 regard to housing.
21-2 (b) In preparing the annual report under Section 2306.072
21-3 and the state low income housing plan under Section 2306.0721, the
21-4 director shall:
21-5 (1) coordinate local, state, and federal housing
21-6 resources, including tax exempt housing bond financing and low
21-7 income housing tax credits;
21-8 (2) set priorities for the available housing resources
21-9 to help the neediest individuals;
21-10 (3) evaluate the success of publicly supported housing
21-11 programs;
21-12 (4) survey and identify the unmet housing needs of
21-13 individuals the department is required to assist;
21-14 (5) ensure that housing programs benefit an individual
21-15 without regard to the individual's race, ethnicity, sex, or
21-16 national origin;
21-17 (6) develop housing opportunities for individuals and
21-18 families of low and very low income and individuals with special
21-19 housing needs;
21-20 (7) develop housing programs through an open, fair,
21-21 and public process;
21-22 (8) set priorities for assistance in a manner that is
21-23 appropriate and consistent with the housing needs of the
21-24 populations described by Section 2306.0721(c)(1);
21-25 (9) incorporate recommendations that are consistent
21-26 with the consolidated plan submitted annually by the state to the
21-27 United States Department of Housing and Urban Development;
22-1 (10) identify the organizations and individuals
22-2 consulted by the department in preparing the annual report and
22-3 state low income housing plan and summarize and incorporate
22-4 comments and suggestions provided under Subsection (a) as the
22-5 board determines to be appropriate;
22-6 (11) develop a plan to respond to changes in federal
22-7 funding and programs for the provision of affordable housing; [and]
22-8 (12) use the following standardized categories to
22-9 describe the income of program applicants and beneficiaries:
22-10 (A) 0 to 30 percent of area median income
22-11 adjusted for family size;
22-12 (B) more than 30 to 60 percent of area median
22-13 income adjusted for family size;
22-14 (C) more than 60 to 80 percent of area median
22-15 income adjusted for family size;
22-16 (D) more than 80 to 115 percent of area median
22-17 income adjusted for family size; or
22-18 (E) more than 115 percent of area median income
22-19 adjusted for family size; and
22-20 (13) use the most recent census data combined with
22-21 existing data from local housing and community service providers in
22-22 the state, including public housing authorities, housing finance
22-23 corporations, community housing development organizations, and
22-24 community action agencies.
22-25 SECTION 1.15. Section 2306.0723(a), Government Code, is
22-26 amended to read as follows:
22-27 (a) The department shall hold public hearings on the annual
23-1 state low income housing plan and report before the director
23-2 submits the report and the plan to the board. [Public hearings
23-3 shall be held in Dallas or Fort Worth, El Paso, Houston, San
23-4 Antonio, the Lower Rio Grande Valley, and at least two additional
23-5 municipalities selected by the department to represent
23-6 geographically diverse communities.] The department shall provide
23-7 notice of the public hearings as required by Section 2306.0661. The
23-8 published notice must include a summary of the report and plan. The
23-9 department shall accept comments on the report and plan at the
23-10 public hearings and for at least 30 days after the date of the
23-11 publication of the notice of the hearings.
23-12 SECTION 1.16. Section 2306.111, Government Code, is amended
23-13 by amending Subsection (d) and adding Subsections (g) and (h) to
23-14 read as follows:
23-15 (d) The department shall allocate housing funds provided to
23-16 the state under the Cranston-Gonzalez National Affordable Housing
23-17 Act (42 U.S.C. Section 12701 et seq.), housing trust funds
23-18 administered by the department under Sections 2306.201-2306.206,
23-19 and commitments issued under the federal low income housing tax
23-20 credit program administered by the department under Subchapter DD
23-21 [Sections 2306.671-2306.678] to each uniform state service region
23-22 based on a formula developed by the department that is based on the
23-23 need for housing assistance and the availability of housing
23-24 resources, provided that the allocations are consistent with
23-25 applicable federal and state requirements and limitations. The
23-26 department shall use the information contained in its annual state
23-27 low income housing plan and shall use other appropriate data to
24-1 develop the formula. If the department determines under the
24-2 formula that an insufficient number of eligible applications for
24-3 assistance out of funds or credits allocable under this subsection
24-4 are submitted to the department from a particular uniform state
24-5 service region, the department shall use the unused funds or
24-6 credits allocated to that region for all other regions based on
24-7 identified need and financial feasibility.
24-8 (g) For each uniform state service region, the department
24-9 shall establish funding priorities to ensure that:
24-10 (1) funds are awarded to project applicants who are
24-11 best able to meet recognized needs for affordable housing, as
24-12 determined by the department;
24-13 (2) when practicable and when authorized under Section
24-14 42, Internal Revenue Code of 1986 (26 U.S.C. Section 42), the least
24-15 restrictive funding sources are used to serve the lowest income
24-16 residents; and
24-17 (3) funds are awarded based on a project applicant's
24-18 ability, when consistent with Section 42, Internal Revenue Code of
24-19 1986 (26 U.S.C. Section 42), practicable, and economically
24-20 feasible, to:
24-21 (A) provide the greatest number of quality
24-22 residential units;
24-23 (B) serve persons with the lowest percent area
24-24 median family income;
24-25 (C) extend the duration of the project to serve
24-26 a continuing public need;
24-27 (D) use other funding sources to minimize the
25-1 amount of subsidy needed to complete the project; and
25-2 (E) provide integrated, affordable housing for
25-3 individuals and families with different levels of income.
25-4 (h) The department by rule shall adopt a policy providing
25-5 for the reallocation of financial assistance administered by the
25-6 department, including financial assistance related to bonds issued
25-7 by the department, if the department's obligation with respect to
25-8 that assistance is prematurely terminated.
25-9 SECTION 1.17. Subchapter F, Chapter 2306, Government Code, is
25-10 amended by adding Sections 2306.1111, 2306.1112, and 2306.1113 to
25-11 read as follows:
25-12 Sec. 2306.1111. UNIFORM APPLICATION AND FUNDING CYCLE. (a)
25-13 Notwithstanding any other state law and to the extent consistent
25-14 with federal law, the department shall establish a uniform
25-15 application and funding cycle for all single-family and multifamily
25-16 housing programs administered by the department under this chapter.
25-17 (b) Wherever possible, the department shall use uniform
25-18 threshold requirements for single-family and multifamily housing
25-19 program applications, including uniform threshold requirements
25-20 relating to market studies and environmental reports.
25-21 Sec. 2306.1112. EXECUTIVE AWARD AND REVIEW ADVISORY
25-22 COMMITTEE. (a) The department shall establish an executive award
25-23 and review advisory committee to make recommendations to the board
25-24 regarding funding and allocation decisions.
25-25 (b) The advisory committee is composed of the director, the
25-26 administrator of each of the department's programs, and one
25-27 representative from each of the department's planning,
26-1 underwriting, and compliance functions.
26-2 (c) The advisory committee shall develop the funding
26-3 priorities required by Section 2306.111(g) and shall make funding
26-4 and allocation recommendations to the board based on the ability of
26-5 applicants to meet those priorities.
26-6 (d) The advisory committee is not subject to Chapter 2110.
26-7 Sec. 2306.1113. EX-PARTE COMMUNICATIONS. (a) During the
26-8 period beginning on the date a project application is filed and
26-9 ending on the date the board makes a final decision with respect to
26-10 any approval of that application, a member of the board or a member
26-11 of the advisory committee established under Section 2306.1112 may
26-12 not communicate with the following persons:
26-13 (1) the applicant or a related party, as defined by
26-14 board rules; and
26-15 (2) any person who is:
26-16 (A) active in the construction, rehabilitation,
26-17 ownership, or control of the proposed project, including:
26-18 (i) a general partner or contractor; and
26-19 (ii) a principal or affiliate of a general
26-20 partner or contractor; or
26-21 (B) employed as a lobbyist by the applicant or a
26-22 related party.
26-23 (b) Notwithstanding Subsection (a), a board member or
26-24 advisory committee member may communicate with a person described
26-25 by that subsection at any board meeting or public hearing held with
26-26 respect to the application.
26-27 SECTION 1.18. Subchapter H, Chapter 2306, Government Code, is
27-1 amended by adding Section 2306.1711 to read as follows:
27-2 Sec. 2306.1711. RULEMAKING PROCEDURES FOR CERTAIN PROGRAMS.
27-3 (a) The department shall adopt rules outlining formal rulemaking
27-4 procedures for the low income housing tax credit program and the
27-5 multifamily housing mortgage revenue bond program in accordance
27-6 with Chapter 2001.
27-7 (b) The rules adopted under Subsection (a) must include:
27-8 (1) procedures for allowing interested parties to
27-9 petition the department to request the adoption of a new rule or
27-10 the amendment of an existing rule;
27-11 (2) notice requirements and deadlines for taking
27-12 certain actions; and
27-13 (3) a provision for a public hearing.
27-14 (c) The department shall provide for public input before
27-15 adopting rules for programs with requests for proposals and notices
27-16 of funding availability.
27-17 SECTION 1.19. Section 2306.252, Government Code, is amended
27-18 by amending Subsection (b) and adding Subsections (d)-(g) to read
27-19 as follows:
27-20 (b) The department, through the center, shall:
27-21 (1) provide educational material prepared in plain
27-22 language to housing advocates, housing sponsors, borrowers, and
27-23 tenants;
27-24 (2) provide technical assistance to nonprofit housing
27-25 sponsors; [and]
27-26 (3) assist in the development of housing policy,
27-27 including the annual state low income housing plan and report and
28-1 the consolidated plan;
28-2 (4) maintain communication with local governments and
28-3 act as an advocate for local governments at the state and federal
28-4 levels;
28-5 (5) assist local governments with advisory and
28-6 technical services;
28-7 (6) provide financial aid to local governments and
28-8 combinations of local governments for programs that are authorized
28-9 to receive assistance;
28-10 (7) provide information about and referrals for state
28-11 and federal programs and services that affect local governments;
28-12 (8) administer, conduct, or jointly sponsor
28-13 educational and training programs for local government officials;
28-14 (9) conduct research on problems of general concern to
28-15 local governments;
28-16 (10) collect, publish, and distribute information
28-17 useful to local governments, including information on:
28-18 (A) local government finances and employment;
28-19 (B) housing;
28-20 (C) population characteristics; and
28-21 (D) land-use patterns;
28-22 (11) encourage cooperation among local governments as
28-23 appropriate;
28-24 (12) advise and inform the governor and the
28-25 legislature about the affairs of local governments and recommend
28-26 necessary action;
28-27 (13) assist the governor in coordinating federal and
29-1 state activities affecting local governments;
29-2 (14) administer, as appropriate:
29-3 (A) state responsibilities for programs created
29-4 under the federal Economic Opportunity Act of 1964 (42 U.S.C.
29-5 Section 2701 et seq.);
29-6 (B) programs assigned to the department under
29-7 the Omnibus Budget Reconciliation Act of 1981 (Pub.L. No. 97-35);
29-8 and
29-9 (C) other federal acts creating economic
29-10 opportunity programs assigned to the department;
29-11 (15) develop a consumer education program to educate
29-12 consumers on executory contract transactions for the conveyance of
29-13 real property used or to be used as the consumer's residence;
29-14 (16) adopt rules that are necessary and proper to
29-15 carry out programs and responsibilities assigned by the legislature
29-16 or the governor; and
29-17 (17) perform other duties relating to local
29-18 governments that are assigned by the legislature or the governor.
29-19 (d) The center shall serve as a housing and community
29-20 services clearinghouse to provide information to the public, local
29-21 communities, housing providers, and other interested parties
29-22 regarding:
29-23 (1) the performance of each department program;
29-24 (2) the number of people served;
29-25 (3) the income of people served;
29-26 (4) the funding amounts distributed;
29-27 (5) allocation decisions;
30-1 (6) regional impact of department programs; and
30-2 (7) any other relevant information.
30-3 (e) The center shall compile the department's reports into
30-4 an integrated format and shall compile and maintain a list of all
30-5 affordable housing resources in the state, organized by community.
30-6 (f) The information required under Subsections (d) and (e)
30-7 must be readily available in:
30-8 (1) a hard-copy format; and
30-9 (2) a user-friendly format on the department's
30-10 website.
30-11 (g) The center shall provide information regarding the
30-12 department's housing and community affairs programs to the Texas
30-13 Information and Referral Network for inclusion in the statewide
30-14 information and referral network as required by Section 531.0312.
30-15 SECTION 1.20. Subchapter K, Chapter 2306, Government Code, is
30-16 amended by adding Sections 2306.256 and 2306.257 to read as
30-17 follows:
30-18 Sec. 2306.256. AFFORDABLE HOUSING PRESERVATION PROGRAM. (a)
30-19 The department shall develop and implement a program to preserve
30-20 affordable housing in this state.
30-21 (b) Through the program, the department shall:
30-22 (1) maintain data on housing projected to lose its
30-23 affordable status;
30-24 (2) develop policies necessary to ensure the
30-25 preservation of affordable housing in this state;
30-26 (3) advise other program areas with respect to the
30-27 policies; and
31-1 (4) assist those other program areas in implementing
31-2 the policies.
31-3 Sec. 2306.257. APPLICANT COMPLIANCE WITH STATE AND FEDERAL
31-4 LAWS PROHIBITING DISCRIMINATION: CERTIFICATION AND MONITORING. (a)
31-5 The department may provide assistance through a housing program
31-6 under this chapter only to an applicant who certifies the
31-7 applicant's compliance with:
31-8 (1) state and federal fair housing laws, including
31-9 Chapter 301, Property Code, Title VIII of the Civil Rights Act of
31-10 1968 (42 U.S.C. Section 3601 et seq.), and the Fair Housing
31-11 Amendments Act of 1988 (42 U.S.C. Section 3601 et seq.);
31-12 (2) the Civil Rights Act of 1964 (42 U.S.C. Section
31-13 2000a et seq.);
31-14 (3) the Americans with Disabilities Act of 1990 (42
31-15 U.S.C. Section 12101 et seq.); and
31-16 (4) the Rehabilitation Act of 1973 (29 U.S.C. Section
31-17 701 et seq.).
31-18 (b) In conjunction with the state Commission on Human
31-19 Rights, the department shall adopt rules governing the
31-20 certification process described by this section, including rules
31-21 establishing:
31-22 (1) procedures for certifying compliance;
31-23 (2) methods for measuring continued compliance; and
31-24 (3) different degrees of sanctions for noncompliance
31-25 and reasonable periods for correcting noncompliance.
31-26 (c) Sanctions imposed under Subsection (b)(3) may:
31-27 (1) include a public reprimand, termination of
32-1 assistance, and a bar on future eligibility for assistance through
32-2 a housing program under this chapter; and
32-3 (2) be imposed in addition to any action taken by the
32-4 state Commission on Human Rights.
32-5 (d) The department shall promptly notify the state
32-6 Commission on Human Rights if the department determines that a
32-7 program participant may have failed to comply with the laws listed
32-8 by Subsection (a).
32-9 SECTION 1.21. Sections 2306.358(a), (a-1), and (b),
32-10 Government Code, are amended to read as follows:
32-11 (a) Of the total qualified 501(c)(3) bonds issued under
32-12 Section 145 of the Internal Revenue Code of 1986 (26 U.S.C. Section
32-13 145) in each fiscal year, it is the express intent of the
32-14 legislature that the department shall allocate qualified 501(c)(3)
32-15 bonding authority as follows:
32-16 (1) [at least 50 percent of the total annual issuance
32-17 amount authorized through the memorandum of understanding provided
32-18 for in Subsection (b) of this section is reserved for the purposes
32-19 of new construction or acquisition with substantial rehabilitation;]
32-20 [(2)] not more than 25 percent of the total annual
32-21 issuance amount authorized through the memorandum of understanding
32-22 provided for in Subsection (b) [of this section] may be used for
32-23 projects in any one metropolitan area; and
32-24 (2) [(3)] at least 15 percent of the annual issuance
32-25 amount authorized through the memorandum of understanding provided
32-26 for in Subsection (b) [of this section] is reserved for projects in
32-27 rural areas.
33-1 (a-1) For the purposes of Subsection (a), "rural[:]
33-2 [(1) "Rural] area" and "metropolitan area" shall be
33-3 defined through the memorandum of understanding provided for in
33-4 Subsection (b) [of this section.]
33-5 [(2) "Substantial rehabilitation" means rehabilitation
33-6 of a project with a minimum of $5,000 of rehabilitation cost per
33-7 unit].
33-8 (b) A qualified 501(c)(3) bond may not be issued unless
33-9 approved by the Bond Review Board. In addition, the Bond Review
33-10 Board shall enter into a memorandum of understanding with the
33-11 department specifying the amount of bonds to be issued in each
33-12 fiscal year. The department and the Bond Review Board shall review
33-13 the memorandum of understanding annually to determine the specific
33-14 amount of bonds to be issued in each fiscal year. The Bond Review
33-15 Board may not approve a proposal to issue qualified 501(c)(3) bonds
33-16 unless they meet the requirements of this section, including the
33-17 memorandum of understanding, and all other laws that may apply.
33-18 SECTION 1.22. The heading to Subchapter Z, Chapter 2306,
33-19 Government Code, is amended to read as follows:
33-20 SUBCHAPTER Z. COLONIAS [COLONIA SELF-HELP CENTERS]
33-21 SECTION 1.23. Subchapter Z, Chapter 2306, Government Code, is
33-22 amended by amending Sections 2306.584 and 2306.585 and adding
33-23 Sections 2306.590 and 2306.591 to read as follows:
33-24 Sec. 2306.584. COLONIA RESIDENT ADVISORY COMMITTEE. (a) The
33-25 board [department] shall appoint not fewer than five persons who
33-26 are residents of colonias to serve on a colonia resident [an]
33-27 advisory committee. The members of the colonia resident advisory
34-1 committee shall be selected from lists of candidates submitted to
34-2 the board [department] by local nonprofit organizations and the
34-3 commissioners court of a county in which a self-help center is
34-4 located.
34-5 (b) The board [department] shall appoint one committee
34-6 member to represent each of the counties in which self-help centers
34-7 are located. Each committee member:
34-8 (1) must be a resident of a colonia in the county the
34-9 member represents; and
34-10 (2) may not be a board member, contractor, or employee
34-11 of or have any ownership interest in an entity that is awarded a
34-12 contract under this subchapter.
34-13 Sec. 2306.585. DUTIES OF COLONIA RESIDENT ADVISORY
34-14 COMMITTEE. (a) The colonia resident advisory committee shall
34-15 advise the board [department] regarding:
34-16 (1) the needs of colonia residents;
34-17 (2) appropriate and effective programs that are
34-18 proposed or are operated through the self-help centers; and
34-19 (3) activities that may be undertaken through the
34-20 self-help centers to better serve the needs of colonia residents.
34-21 (b) The colonia resident advisory committee shall meet
34-22 before the 30th day preceding the date on which a contract is
34-23 scheduled to be awarded for the operation of a self-help center and
34-24 may meet at other times.
34-25 Sec. 2306.590. COLONIA INITIATIVES ADVISORY COMMITTEE. (a)
34-26 The board shall establish a colonia initiatives advisory committee
34-27 that is composed of the following members appointed by the board:
35-1 (1) one member who resides in a colonia;
35-2 (2) one member who represents a nonprofit organization
35-3 that provides assistance to colonia residents;
35-4 (3) one member who represents a local political
35-5 subdivision containing all or part of a colonia;
35-6 (4) one member who represents private interests in
35-7 banking or land development; and
35-8 (5) one member who represents the public.
35-9 (b) Each member of the colonia initiatives advisory
35-10 committee other than the public member must reside within 150 miles
35-11 of the international border of this state.
35-12 (c) The colonia initiatives advisory committee shall:
35-13 (1) review public comments regarding the colonia needs
35-14 assessment incorporated into the state low income housing plan
35-15 under Section 2306.0721; and
35-16 (2) based on those public comments, recommend to the
35-17 board new colonia programs or improvements to existing colonia
35-18 programs.
35-19 Sec. 2306.591. BIENNIAL ACTION PLAN. (a) The office
35-20 established by the department to promote initiatives for colonias
35-21 shall prepare a biennial action plan addressing policy goals for
35-22 colonia programs, strategies to meet the policy goals, and the
35-23 projected outcomes with respect to the policy goals.
35-24 (b) The office shall solicit public comments regarding the
35-25 plan at a public hearing. At least six weeks before the public
35-26 hearing, the office shall prepare and publish an initial draft of
35-27 the plan.
36-1 (c) After the public hearing, the office must publish a
36-2 final plan that:
36-3 (1) lists any changes made to the initial draft of the
36-4 plan that are based on public comments regarding the initial draft;
36-5 and
36-6 (2) directly addresses those public comments.
36-7 (d) The office shall send the final plan to the colonia
36-8 initiatives advisory committee for review and comment. After
36-9 receiving comments, the office shall send the plan to the board for
36-10 final approval, with the comments of the colonia initiatives
36-11 advisory committee attached to the plan.
36-12 SECTION 1.24. Section 2306.589(c), Government Code, is
36-13 amended to read as follows:
36-14 (c) The department may use money in the colonia set-aside
36-15 fund for specific activities that assist colonias, including:
36-16 (1) the operation and activities of the self-help
36-17 centers established under this subchapter;
36-18 (2) reimbursement of colonia resident advisory
36-19 committee members and colonia initiatives advisory committee
36-20 members for their reasonable expenses in the manner provided by
36-21 Chapter 2110 [Article 6252-33, Revised Statutes,] or the General
36-22 Appropriations Act; and
36-23 (3) funding for the provision of water and sewer
36-24 service connections in accordance with Subsection (b).
36-25 SECTION 1.25. Subchapter AA, Chapter 2306, Government Code,
36-26 is amended to read as follows:
36-27 SUBCHAPTER AA. MANUFACTURED HOUSING DIVISION
37-1 Sec. 2306.6001 [2306.601]. DEFINITIONS. In this subchapter:
37-2 (1) "Division" means the manufactured housing
37-3 division.
37-4 (2) "Division director" means the executive director
37-5 of the division.
37-6 (3) "Manufactured Housing Board" means the governing
37-7 board of the division.
37-8 Sec. 2306.6002. REGULATION AND ENFORCEMENT. The department
37-9 shall administer and enforce the Texas Manufactured Housing
37-10 Standards Act (Article 5221f, Vernon's Texas Civil Statutes)
37-11 through the [manufactured housing] division. The Manufactured
37-12 Housing Board [board] and the division director shall exercise
37-13 authority and responsibilities assigned to them under that Act.
37-14 Sec. 2306.6003. MANUFACTURED HOUSING BOARD. (a) The
37-15 Manufactured Housing Board is an independent entity within the
37-16 department, is administratively attached to the department, and is
37-17 not an advisory body to the department.
37-18 (b) The Manufactured Housing Board shall carry out the
37-19 functions and duties conferred on the Manufactured Housing Board by
37-20 this subchapter and by other law.
37-21 Sec. 2306.6004. MANUFACTURED HOUSING BOARD MEMBERSHIP. (a)
37-22 The Manufactured Housing Board consists of five public members
37-23 appointed by the governor.
37-24 (b) A person is eligible to be appointed as a public member
37-25 of the Manufactured Housing Board if the person is a citizen of the
37-26 United States and a resident of this state.
37-27 (c) A person may not be a member of the Manufactured Housing
38-1 Board if the person or the person's spouse:
38-2 (1) is registered, certified, or licensed by a
38-3 regulatory agency in the field of manufactured housing;
38-4 (2) is employed by or participates in the management
38-5 of a business entity or other organization regulated by or
38-6 receiving money from the division;
38-7 (3) owns or controls, directly or indirectly, more
38-8 than a 10 percent interest in a business entity or other
38-9 organization regulated by or receiving money from the division; or
38-10 (4) uses or receives a substantial amount of tangible
38-11 goods, services, or money from the division other than compensation
38-12 or reimbursement authorized by law for Manufactured Housing Board
38-13 membership, attendance, or expenses.
38-14 (d) Appointments to the Manufactured Housing Board shall be
38-15 made without regard to the race, color, disability, sex, religion,
38-16 age, or national origin of the appointees.
38-17 Sec. 2306.6005. CONFLICT OF INTEREST. (a) In this section,
38-18 "Texas trade association" means a cooperative and voluntarily
38-19 joined association of business or professional competitors in this
38-20 state designed to assist its members and its industry or profession
38-21 in dealing with mutual business or professional problems and in
38-22 promoting their common interest.
38-23 (b) A person may not be a member of the Manufactured Housing
38-24 Board and may not be a division employee employed in a "bona fide
38-25 executive, administrative, or professional capacity," as that
38-26 phrase is used for purposes of establishing an exemption to the
38-27 overtime provisions of the federal Fair Labor Standards Act of 1938
39-1 (29 U.S.C. Section 201 et seq.), if:
39-2 (1) the person is an officer, employee, or paid
39-3 consultant of a Texas trade association in the field of
39-4 manufactured housing; or
39-5 (2) the person's spouse is an officer, manager, or
39-6 paid consultant of a Texas trade association in the field of
39-7 manufactured housing.
39-8 (c) A person may not be a member of the Manufactured Housing
39-9 Board or act as the general counsel to the Manufactured Housing
39-10 Board or the division if the person is required to register as a
39-11 lobbyist under Chapter 305 because of the person's activities for
39-12 compensation on behalf of a profession related to the operation of
39-13 the division.
39-14 Sec. 2306.6006. TERMS; VACANCY. (a) The members of the
39-15 Manufactured Housing Board serve staggered six-year terms, with the
39-16 terms of one or two members expiring on January 31 of each
39-17 odd-numbered year.
39-18 (b) A person may not serve two consecutive full six-year
39-19 terms as a member of the Manufactured Housing Board.
39-20 (c) If a vacancy occurs during a member's term, the governor
39-21 shall appoint a new member to fill the unexpired term.
39-22 Sec. 2306.6007. PRESIDING OFFICER. The governor shall
39-23 designate a member of the Manufactured Housing Board as the
39-24 presiding officer of the Manufactured Housing Board to serve in
39-25 that capacity at the will of the governor.
39-26 Sec. 2306.6008. GROUNDS FOR REMOVAL. (a) It is a ground for
39-27 removal from the Manufactured Housing Board that a member:
40-1 (1) does not have at the time of taking office the
40-2 qualifications required by Section 2306.6004(b);
40-3 (2) does not maintain during service on the
40-4 Manufactured Housing Board the qualifications required by Section
40-5 2306.6004(b);
40-6 (3) is ineligible for membership under Section
40-7 2306.6004(c) or 2306.6005;
40-8 (4) cannot, because of illness or disability,
40-9 discharge the member's duties for a substantial part of the
40-10 member's term; or
40-11 (5) is absent from more than half of the regularly
40-12 scheduled Manufactured Housing Board meetings that the member is
40-13 eligible to attend during a calendar year without an excuse
40-14 approved by a majority vote of the Manufactured Housing Board.
40-15 (b) The validity of an action of the Manufactured Housing
40-16 Board is not affected by the fact that it is taken when a ground
40-17 for removal of a Manufactured Housing Board member exists.
40-18 (c) If the division director has knowledge that a potential
40-19 ground for removal exists, the division director shall notify the
40-20 presiding officer of the Manufactured Housing Board of the
40-21 potential ground. The presiding officer shall then notify the
40-22 governor and the attorney general that a potential ground for
40-23 removal exists. If the potential ground for removal involves the
40-24 presiding officer, the division director shall notify the next
40-25 highest ranking officer of the Manufactured Housing Board, who
40-26 shall then notify the governor and the attorney general that a
40-27 potential ground for removal exists.
41-1 Sec. 2306.6009. REIMBURSEMENT. A Manufactured Housing Board
41-2 member may not receive compensation, but may be reimbursed for
41-3 actual travel expenses, including expenses for meals, lodging, and
41-4 transportation. A Manufactured Housing Board member is entitled to
41-5 reimbursement for transportation expenses as provided by the
41-6 General Appropriations Act.
41-7 Sec. 2306.6010. MEETINGS. (a) The Manufactured Housing
41-8 Board shall have regular meetings as the majority of the members
41-9 may specify and special meetings at the request of the presiding
41-10 officer, any two members, or the division director.
41-11 (b) Reasonable notice of all meetings shall be given as
41-12 prescribed by Manufactured Housing Board rules.
41-13 (c) The presiding officer shall preside at all meetings of
41-14 the Manufactured Housing Board. In the absence of the presiding
41-15 officer, the members present shall select one of the members to
41-16 preside at the meeting.
41-17 Sec. 2306.6011. TRAINING. (a) A person who is appointed to
41-18 and qualifies for office as a member of the Manufactured Housing
41-19 Board may not vote, deliberate, or be counted as a member in
41-20 attendance at a meeting of the Manufactured Housing Board until the
41-21 person completes a training program that complies with this
41-22 section.
41-23 (b) The training program must provide the person with
41-24 information regarding:
41-25 (1) the legislation that created the division and the
41-26 Manufactured Housing Board;
41-27 (2) the programs operated by the division;
42-1 (3) the role and functions of the division;
42-2 (4) the rules of the division, with an emphasis on the
42-3 rules that relate to disciplinary and investigatory authority;
42-4 (5) the current budget for the division;
42-5 (6) the results of the most recent formal audit of the
42-6 division;
42-7 (7) the requirements of:
42-8 (A) the open meetings law, Chapter 551;
42-9 (B) the public information law, Chapter 552;
42-10 (C) the administrative procedure law, Chapter
42-11 2001; and
42-12 (D) other laws relating to public officials,
42-13 including conflict-of-interest laws; and
42-14 (8) any applicable ethics policies adopted by the
42-15 division or the Texas Ethics Commission.
42-16 (c) A person appointed to the Manufactured Housing Board is
42-17 entitled to reimbursement, as provided by the General
42-18 Appropriations Act, for the travel expenses incurred in attending
42-19 the training program regardless of whether the attendance at the
42-20 program occurs before or after the person qualifies for office.
42-21 Sec. 2306.6012. APPROPRIATIONS; DONATIONS. (a) The
42-22 legislature shall separately appropriate money to the Manufactured
42-23 Housing Board within the appropriations to the department for all
42-24 matters relating to the operation of the division.
42-25 (b) The Manufactured Housing Board may accept gifts and
42-26 grants of money or property under this subchapter and shall spend
42-27 the money and use the property for the purpose for which the
43-1 donation was made, except that the expenditure of money or use of
43-2 property must promote the acceptance of HUD-Code manufactured homes
43-3 as a viable source of housing for very low, low, and moderate
43-4 income families.
43-5 Sec. 2306.6013. BUDGET; SHARING OF DEPARTMENT PERSONNEL,
43-6 EQUIPMENT, AND FACILITIES. (a) The Manufactured Housing Board
43-7 shall develop a budget for the operations of the department
43-8 relating to the division.
43-9 (b) The Manufactured Housing Board shall reduce
43-10 administrative costs by entering into an agreement with the
43-11 department to enable the sharing of department personnel,
43-12 equipment, and facilities.
43-13 Sec. 2306.6014. DIVISION DIRECTOR. (a) The Manufactured
43-14 Housing Board shall employ the division director. The division
43-15 director is the Manufactured Housing Board's chief executive and
43-16 administrative officer.
43-17 (b) The division director is charged with administering,
43-18 enforcing, and carrying out the functions and duties conferred on
43-19 the division director by this subchapter and by other law.
43-20 (c) The division director serves at the pleasure of the
43-21 Manufactured Housing Board.
43-22 Sec. 2306.6015 [2306.602]. PERSONNEL. The division director
43-23 may employ staff as necessary to perform the work of the
43-24 [manufactured housing] division and may prescribe their duties and
43-25 compensation. Subject to applicable personnel policies and
43-26 regulations, the division director may remove any division
43-27 employee.
44-1 Sec. 2306.6016. SEPARATION OF RESPONSIBILITIES. The
44-2 Manufactured Housing Board shall develop and implement policies
44-3 that clearly separate the policy-making responsibilities of the
44-4 Manufactured Housing Board and the management responsibilities of
44-5 the division director and staff of the division.
44-6 Sec. 2306.6017. STANDARDS OF CONDUCT. The division director
44-7 or the division director's designee shall provide to members of the
44-8 Manufactured Housing Board and to division employees, as often as
44-9 necessary, information regarding the requirements for office or
44-10 employment under this subchapter, including information regarding a
44-11 person's responsibilities under applicable laws relating to
44-12 standards of conduct for state officers or employees.
44-13 Sec. 2306.6018. EQUAL EMPLOYMENT OPPORTUNITY. (a) The
44-14 division director or the division director's designee shall prepare
44-15 and maintain a written policy statement that implements a program
44-16 of equal employment opportunity to ensure that all personnel
44-17 decisions are made without regard to race, color, disability, sex,
44-18 religion, age, or national origin.
44-19 (b) The policy statement must include:
44-20 (1) personnel policies, including policies relating to
44-21 recruitment, evaluation, selection, training, and promotion of
44-22 personnel, that show the intent of the division to avoid the
44-23 unlawful employment practices described by Chapter 21, Labor Code;
44-24 and
44-25 (2) an analysis of the extent to which the composition
44-26 of the division's personnel is in accordance with state and federal
44-27 law and a description of reasonable methods to achieve compliance
45-1 with state and federal law.
45-2 (c) The policy statement must:
45-3 (1) be updated annually;
45-4 (2) be reviewed by the state Commission on Human
45-5 Rights for compliance with Subsection (b)(1); and
45-6 (3) be filed with the governor's office.
45-7 Sec. 2306.6019. STATE EMPLOYEE INCENTIVE PROGRAM. The
45-8 division director or the division director's designee shall provide
45-9 to division employees information and training on the benefits and
45-10 methods of participation in the state employee incentive program
45-11 under Subchapter B, Chapter 2108.
45-12 Sec. 2306.6020 [2306.603]. RULES. (a) The Manufactured
45-13 Housing Board [director] shall adopt rules as necessary to
45-14 implement this subchapter and to administer and enforce the
45-15 manufactured housing program through the [manufactured housing]
45-16 division. Rules adopted by the Manufactured Housing Board
45-17 [director] are subject to Chapter 2001[, Government Code].
45-18 (b) The Manufactured Housing Board [director] may not adopt
45-19 rules restricting competitive bidding or advertising by a person
45-20 regulated by the division except to prohibit false, misleading, or
45-21 deceptive practices by that person.
45-22 (c) The Manufactured Housing Board [director] may not
45-23 include in the rules to prohibit false, misleading, or deceptive
45-24 practices by a person regulated by the division a rule that:
45-25 (1) restricts the use of any advertising medium;
45-26 (2) restricts the person's personal appearance or the
45-27 use of the person's voice in an advertisement;
46-1 (3) relates to the size or duration of an
46-2 advertisement used by the person; or
46-3 (4) restricts the use of a trade name in advertising
46-4 by the person.
46-5 Sec. 2306.6021. PUBLIC PARTICIPATION. The Manufactured
46-6 Housing Board shall develop and implement policies that provide the
46-7 public with a reasonable opportunity to appear before the
46-8 Manufactured Housing Board and to speak on any issue under the
46-9 jurisdiction of the division.
46-10 Sec. 2306.6022. COMPLAINTS. (a) The division shall maintain
46-11 a file on each written complaint filed with the division. The file
46-12 must include:
46-13 (1) the name of the person who filed the complaint;
46-14 (2) the date the complaint is received by the
46-15 division;
46-16 (3) the subject matter of the complaint;
46-17 (4) the name of each person contacted in relation to
46-18 the complaint;
46-19 (5) a summary of the results of the review or
46-20 investigation of the complaint; and
46-21 (6) an explanation of the reason the file was closed,
46-22 if the division closed the file without taking action other than to
46-23 investigate the complaint.
46-24 (b) The division shall provide to the person filing the
46-25 complaint and to each person who is a subject of the complaint a
46-26 copy of the division's policies and procedures relating to
46-27 complaint investigation and resolution.
47-1 (c) The division, at least quarterly until final disposition
47-2 of the complaint, shall notify the person filing the complaint and
47-3 each person who is a subject of the complaint of the status of the
47-4 investigation unless the notice would jeopardize an undercover
47-5 investigation.
47-6 (d) Unless otherwise confidential by law, the records of a
47-7 license holder or other person that are required or obtained by the
47-8 division or its agents or employees in connection with the
47-9 investigation of a complaint shall be protected in accordance with
47-10 Chapter 552.
47-11 Sec. 2306.6023 [2306.604]. SANCTIONS AND PENALTIES. (a) The
47-12 Manufactured Housing Board [director] shall adopt rules relating to
47-13 the administrative sanctions that may be enforced against a person
47-14 regulated by the [manufactured housing] division. If the person
47-15 violates a law relating to the regulation of manufactured housing
47-16 or a rule or order adopted or issued by the Manufactured Housing
47-17 Board [director] relating to the program, the division director
47-18 may:
47-19 (1) issue a written reprimand to the person that
47-20 specifies the violation;
47-21 (2) revoke or suspend the person's certificate of
47-22 registration; or
47-23 (3) place on probation a person whose certificate of
47-24 registration has been suspended.
47-25 (b) In addition to or in lieu of a sanction imposed under
47-26 Subsection (a) of this section, the Manufactured Housing Board
47-27 [board] may assess an administrative penalty in an amount not to
48-1 exceed $1,000 for each violation.
48-2 (c) If a suspension is probated, the division director may
48-3 require the person to report regularly to the division director on
48-4 matters that are the basis of the probation.
48-5 (d) If the division director proposes to suspend or revoke a
48-6 certificate of registration or the division director proposes to
48-7 assess an administrative penalty against a person regulated by the
48-8 division, the person is entitled to a hearing before a hearings
48-9 officer appointed by the division director. The Manufactured
48-10 Housing Board [director] by rule shall prescribe the procedures by
48-11 which a decision to suspend or revoke a certificate of registration
48-12 or to assess an administrative penalty are made and are appealable.
48-13 (e) In determining the amount of an administrative penalty
48-14 assessed under this section, the Manufactured Housing Board [board]
48-15 shall consider:
48-16 (1) the seriousness of the violation;
48-17 (2) the history of previous violations;
48-18 (3) the amount necessary to deter future violations;
48-19 (4) efforts made to correct the violation; and
48-20 (5) any other matters that justice may require.
48-21 (f) If, after investigation of a possible violation and the
48-22 facts surrounding that possible violation, the division director
48-23 determines that a violation has occurred, the division director
48-24 shall issue a preliminary report stating the facts on which the
48-25 conclusion that a violation occurred is based, recommending that an
48-26 administrative penalty under this section be imposed on the person
48-27 charged, and recommending the amount of that proposed penalty. The
49-1 division director shall base the recommended amount of the proposed
49-2 penalty on the seriousness of the violation determined by
49-3 consideration of the factors set forth in Subsection (e) [of this
49-4 section].
49-5 (g) Not later than the 14th day after the date on which the
49-6 preliminary report is issued, the division director shall give
49-7 written notice of the violation to the person charged. The notice
49-8 shall include:
49-9 (1) a brief summary of the charges;
49-10 (2) a statement of the amount of the penalty
49-11 recommended; and
49-12 (3) a statement of the right of the person charged to
49-13 a hearing on the occurrence of the violation, the amount of the
49-14 penalty, or both the occurrence of the violation and the amount of
49-15 the penalty.
49-16 (h) Not later than the 20th day after the date on which the
49-17 notice is received, the person charged may accept the determination
49-18 of the division director made under Subsection (f) [of this
49-19 section], including the recommended penalty, or make a written
49-20 request for a hearing on that determination.
49-21 (i) If the person charged with the violation accepts the
49-22 determination of the division director, the division director shall
49-23 issue an order approving the determination and ordering that the
49-24 person pay the recommended penalty.
49-25 (j) If the person charged fails to respond in a timely
49-26 manner to the notice or if the person requests a hearing, the
49-27 division director shall set a hearing, give written notice of the
50-1 hearing to the person, and designate a hearings examiner to conduct
50-2 the hearing. The hearings examiner shall make findings of fact and
50-3 conclusions of law and shall promptly issue to the Manufactured
50-4 Housing Board [board] a proposal for decision as to the occurrence
50-5 of the violation and a recommendation as to the amount of the
50-6 proposed penalty if a penalty is determined to be warranted. Based
50-7 on the findings of fact and conclusions of law and the
50-8 recommendations of the hearings examiner, the Manufactured Housing
50-9 Board [board] by order may find that a violation has occurred and
50-10 may assess a penalty, or may find that no violation has occurred.
50-11 (k) The division director shall give notice of the
50-12 Manufactured Housing Board's [board's] order to the person charged.
50-13 The notice must include:
50-14 (1) separate statements of the findings of fact and
50-15 conclusions of law;
50-16 (2) the amount of any penalty assessed;
50-17 (3) a statement of the right of the person charged to
50-18 judicial review of the Manufactured Housing Board's [commission's]
50-19 order; and
50-20 (4) any other information required by law.
50-21 (l) Not later than the 30th day after the date on which the
50-22 decision is final, the person charged shall:
50-23 (1) pay the penalty in full; or
50-24 (2) if the person files a petition for judicial review
50-25 contesting the fact of the violation, the amount of the penalty, or
50-26 both the fact of the violation and the amount of the penalty:
50-27 (A) forward the amount assessed to the division
51-1 [department] for deposit in an escrow account;
51-2 (B) in lieu of payment into escrow, post with
51-3 the division [department] a supersedeas bond for the amount of the
51-4 penalty, in a form approved by the division director and effective
51-5 until judicial review of the decision is final; or
51-6 (C) without paying the amount of the penalty or
51-7 posting the supersedeas bond, pursue the judicial review.
51-8 (m) A person charged with a penalty who is financially
51-9 unable to comply with Subsection (l)(2) [of this section] is
51-10 entitled to judicial review if the person files with the court, as
51-11 part of the person's petition for judicial review, a sworn
51-12 statement that the person is unable to meet the requirements of
51-13 that subsection.
51-14 (n) If the person charged does not pay the penalty and does
51-15 not pursue judicial review, the division [department] or the
51-16 attorney general may bring an action for the collection of the
51-17 penalty.
51-18 (o) Judicial review of the order of the Manufactured Housing
51-19 Board [board] assessing the penalty is subject to the substantial
51-20 evidence rule and shall be instituted by filing a petition with a
51-21 Travis County district court.
51-22 (p) If, after judicial review, the penalty is reduced or not
51-23 assessed, the division director shall remit to the person charged
51-24 the appropriate amount, plus accrued interest if the penalty has
51-25 been paid, or shall execute a release of the bond if a supersedeas
51-26 bond has been posted. The accrued interest on amounts remitted by
51-27 the division director under this subsection shall be paid at a rate
52-1 equal to the rate charged on loans to depository institutions by
52-2 the New York Federal Reserve Bank, and shall be paid for the period
52-3 beginning on the date that the assessed penalty is paid to the
52-4 division director and ending on the date the penalty is remitted.
52-5 (q) A penalty collected under this section shall be
52-6 deposited in the state treasury to the credit of the general
52-7 revenue fund.
52-8 (r) All proceedings conducted under this section and any
52-9 review or appeal of those proceedings are subject to Chapter 2001[,
52-10 Government Code].
52-11 (s) If it appears that a person is in violation of, or is
52-12 threatening to violate, any provision of the Texas Manufactured
52-13 Housing Standards Act (Article 5221f, Vernon's Texas Civil
52-14 Statutes), or a rule or order related to the administration and
52-15 enforcement of the manufactured housing program, the attorney
52-16 general or the division director may institute an action for
52-17 injunctive relief to restrain the person from continuing the
52-18 violation and for civil penalties not to exceed $1,000 for each
52-19 violation and not exceeding $250,000 in the aggregate. A civil
52-20 action filed under this subsection shall be filed in district court
52-21 in Travis County. The attorney general and the division director
52-22 may recover reasonable expenses incurred in obtaining injunctive
52-23 relief under this subsection, including court costs, reasonable
52-24 attorney's fees, investigative costs, witness fees, and deposition
52-25 expenses.
52-26 [Sec. 2306.605. ACCEPTANCE OF DONATIONS. The department may
52-27 accept gifts and grants of money or property under this chapter and
53-1 shall spend the money and use the property for the purpose for
53-2 which the donation was made, except that the expenditure of money
53-3 or use of property must promote the acceptance of HUD-Code
53-4 manufactured homes as a viable source of housing for very low, low,
53-5 and moderate income families.]
53-6 SECTION 1.26. Subchapter DD, Chapter 2306, Government Code,
53-7 is amended by adding Sections 2306.6741 and 2306.6761 to read as
53-8 follows:
53-9 Sec. 2306.6741. DEPARTMENT POLICY AND PROCEDURES REGARDING
53-10 RECIPIENTS OF CERTAIN FEDERAL HOUSING ASSISTANCE. (a) The
53-11 department by rule shall adopt a policy regarding the admittance to
53-12 low income housing tax credit properties of income-eligible
53-13 individuals and families receiving assistance under Section 8,
53-14 United States Housing Act of 1937 (42 U.S.C. Section 1437f).
53-15 (b) The policy must provide a reasonable minimum income
53-16 standard that is not otherwise prohibited by this chapter and that
53-17 is to be used by owners of low income housing tax credit properties
53-18 and must place reasonable limits on the use of any other factors
53-19 that impede the admittance of individuals and families described by
53-20 Subsection (a) to those properties, including credit histories,
53-21 security deposits, and employment histories.
53-22 (c) The department by rule shall establish procedures to
53-23 monitor low income housing tax credit properties that refuse to
53-24 admit individuals and families described by Subsection (a). The
53-25 department by rule shall establish enforcement mechanisms with
53-26 respect to those properties, including a range of sanctions to be
53-27 imposed against the owners of those properties.
54-1 Sec. 2306.6761. QUALIFIED NONPROFIT ORGANIZATION. (a) A
54-2 qualified nonprofit organization may compete in any low income
54-3 housing tax credit allocation pool, including:
54-4 (1) the nonprofit allocation pool;
54-5 (2) the rural projects/prison communities allocation
54-6 pool; and
54-7 (3) the general projects allocation pool.
54-8 (b) A qualified nonprofit organization submitting an
54-9 application under this subchapter must have a controlling interest
54-10 in a project proposed to be financed with a low income housing tax
54-11 credit from the nonprofit allocation pool.
54-12 SECTION 1.27. Section 531.0312, Government Code, is amended
54-13 by adding Subsection (d) to read as follows:
54-14 (d) The Texas Department of Housing and Community Affairs
54-15 shall provide the Texas Information and Referral Network with
54-16 information regarding the department's housing and community
54-17 affairs programs for inclusion in the statewide information and
54-18 referral network. The department shall provide the information in
54-19 a form determined by the commissioner and shall update the
54-20 information at least quarterly.
54-21 SECTION 1.28. Section 1372.023, Government Code, is amended
54-22 to read as follows:
54-23 Sec. 1372.023. DEDICATION OF PORTIONS [PORTION] OF STATE
54-24 CEILING TO TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS. (a)
54-25 Until August 15 [25], of that portion of the state ceiling that is
54-26 available exclusively for reservations by issuers of qualified
54-27 mortgage bonds, one-third is available exclusively to the Texas
55-1 Department of Housing and Community Affairs for the purpose of
55-2 issuing qualified mortgage bonds.
55-3 (b) Until August 15, of that portion of the state ceiling
55-4 that is available exclusively for reservations by issuers of
55-5 qualified residential rental project bonds, 25 percent is available
55-6 exclusively to the Texas Department of Housing and Community
55-7 Affairs in the manner described by Section 1372.0231.
55-8 (c) The Texas Department of Housing and Community Affairs
55-9 may not reserve a portion of the state ceiling that is available
55-10 exclusively for reservations by issuers of qualified residential
55-11 rental project bonds other than the portion dedicated to the
55-12 department under Subsection (b).
55-13 SECTION 1.29. Section 1372.025(b), Government Code, is
55-14 amended to read as follows:
55-15 (b) Subsection (a) does not apply to qualified mortgage
55-16 bonds or qualified residential rental project bonds made available
55-17 exclusively to the Texas Department of Housing and Community
55-18 Affairs under Section 1372.023.
55-19 SECTION 1.30. Sections 3(3), (7), and (8), Texas Manufactured
55-20 Housing Standards Act (Article 5221f, Vernon's Texas Civil
55-21 Statutes), are amended to read as follows:
55-22 (3) "Board" means the Manufactured Housing Board
55-23 within the Texas Department of Housing and Community Affairs
55-24 [governing board of the department].
55-25 (7) "Department" means the Texas Department of Housing
55-26 and Community Affairs operating through its manufactured housing
55-27 division.
56-1 (8) "Director" means the executive director of the
56-2 manufactured housing division of the Texas Department of Housing
56-3 and Community Affairs [department].
56-4 SECTION 1.31. Section 7, Texas Manufactured Housing Standards
56-5 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
56-6 amending Subsections (g) and (k) and adding Subsections (t)-(y) to
56-7 read as follows:
56-8 (g) All licenses are valid for one year and are renewable as
56-9 provided by the director. The board by rule may adopt a system
56-10 under which licenses expire on various dates during the year. For
56-11 the year in which the license expiration date is changed, the
56-12 department shall prorate license fees on a monthly basis so that
56-13 each license holder pays only that portion of the license fee that
56-14 is allocable to the number of months during which the license is
56-15 valid. On renewal of the license on the new expiration date, the
56-16 total license renewal fee is payable.
56-17 (k) The director shall conduct any hearing involving the
56-18 denial, renewal, revocation or suspension of a license in
56-19 accordance with Chapter 2001, Government Code. The department may
56-20 place on probation a person whose license is suspended. If a
56-21 license suspension is probated, the department may require the
56-22 person:
56-23 (1) to report regularly to the department on matters
56-24 that are the basis of the probation;
56-25 (2) to limit practice to the areas prescribed by the
56-26 department; or
56-27 (3) to continue or review professional education until
57-1 the person attains a degree of skill satisfactory to the department
57-2 in those areas that are the basis of the probation.
57-3 (t) A person whose license has expired may not engage in
57-4 activities that require a license until the license has been
57-5 renewed.
57-6 (u) A person whose license has been expired for 90 days or
57-7 less may renew the license by paying to the department a renewal
57-8 fee that is equal to 1-1/2 times the normally required renewal fee.
57-9 (v) A person whose license has been expired for more than 90
57-10 days but less than one year may renew the license by paying to the
57-11 department a renewal fee that is equal to two times the normally
57-12 required renewal fee.
57-13 (w) A person whose license has been expired for one year or
57-14 more may not renew the license. The person may obtain a new
57-15 license by complying with the requirements and procedures for
57-16 obtaining an original license.
57-17 (x) A person who was licensed in this state, moved to
57-18 another state, and is currently licensed and has been in practice
57-19 in the other state for the two years preceding the date of
57-20 application may obtain a new license without fulfilling the
57-21 instruction requirements of Subsection (o). The person must pay to
57-22 the department a fee that is equal to two times the normally
57-23 required renewal fee for the license.
57-24 (y) Not later than the 30th day before the date a person's
57-25 license is scheduled to expire, the department shall send written
57-26 notice of the impending expiration to the person at the person's
57-27 last known address according to the records of the department.
58-1 SECTION 1.32. Section 7(s), Texas Manufactured Housing
58-2 Standards Act (Article 5221f, Vernon's Texas Civil Statutes), as
58-3 added by Chapter 351, Acts of the 76th Legislature, Regular
58-4 Session, 1999, is amended to read as follows:
58-5 (s) A person licensed as a real estate broker or salesperson
58-6 under The Real Estate License Act (Article 6573a, Vernon's Texas
58-7 Civil Statutes) may act as a manufactured housing broker or
58-8 salesperson without holding a license under this Act or posting a
58-9 surety bond or other security under this Act, provided that any
58-10 negotiations for the sale, exchange, or lease-purchase of a
58-11 manufactured home are conducted for a consumer for whom the person
58-12 is also acting as a real estate broker or salesperson consistent
58-13 with Section 18(e) of this Act.
58-14 SECTION 1.33. Section 7A, Texas Manufactured Housing
58-15 Standards Act (Article 5221f, Vernon's Texas Civil Statutes), is
58-16 amended to read as follows:
58-17 Sec. 7A. EDUCATION PROGRAMS. (a) The department [director]
58-18 may recognize, prepare, or administer certification programs [and
58-19 continuing education programs] for persons regulated under this
58-20 Act. Participation in the programs is voluntary.
58-21 (b) The board shall recognize, prepare, or administer
58-22 continuing education programs for its license holders. A license
58-23 holder must participate in the continuing education programs to the
58-24 extent required by the board to keep the person's license.
58-25 (c) To prepare or administer a certification program or a
58-26 continuing education program under this section, the board may
58-27 contract with a private, nonprofit, tax-exempt organization listed
59-1 in Section 501(c)(3), Internal Revenue Code of 1986 (26 U.S.C.
59-2 Section 501(c)(3)) or with an educational institution.
59-3 (d) The department [director] shall issue appropriate
59-4 certificates to those persons who complete a [the] certification
59-5 program or who participate in a [the] continuing education program
59-6 under this section.
59-7 SECTION 1.34. (a) The nine members of the governing board of
59-8 the Texas Department of Housing and Community Affairs who are
59-9 serving immediately before September 1, 2001, continue to serve as
59-10 members of the governing board of the department on and after that
59-11 date regardless of whether those members meet the membership
59-12 requirements prescribed by Subchapter B, Chapter 2306, Government
59-13 Code, as amended by this Act. However, the positions of those nine
59-14 members are abolished on the date on which a majority of the seven
59-15 board membership positions that are created under Subchapter B,
59-16 Chapter 2306, Government Code, as amended by this Act, are filled
59-17 by appointment by the governor and the appointees qualify for
59-18 office.
59-19 (b) The governor shall make the seven appointments to the
59-20 board under Subchapter B, Chapter 2306, Government Code, as amended
59-21 by this Act, as soon as possible on or after September 1, 2001. In
59-22 making the initial appointments, the governor shall designate two
59-23 members for terms expiring January 31, 2003, two members for terms
59-24 expiring January 31, 2005, and three members for terms expiring
59-25 January 31, 2007. The governor may reappoint any person to the
59-26 board who served as a member of the board before September 1, 2001.
59-27 (c) The changes in law made by this Act in amending
60-1 Subchapter B, Chapter 2306, Government Code, do not affect the
60-2 ability of the director of the Texas Department of Housing and
60-3 Community Affairs who is serving on the effective date of this Act
60-4 to continue to serve in that capacity until the governing board of
60-5 the department appointed by the governor under Subchapter B,
60-6 Chapter 2306, Government Code, as amended by this Act, employs a
60-7 director under Chapter 2306.
60-8 SECTION 1.35. (a) The governor shall make the appointments
60-9 to the Manufactured Housing Board created by Subchapter AA, Chapter
60-10 2306, Government Code, as amended by this Act, as soon as possible
60-11 on or after September 1, 2001. In making the initial appointments,
60-12 the governor shall designate one member for a term expiring January
60-13 31, 2003, two members for terms expiring January 31, 2005, and two
60-14 members for terms expiring January 31, 2007.
60-15 (b) Until the Manufactured Housing Board employs a division
60-16 director for the manufactured housing division of the Texas
60-17 Department of Housing and Community Affairs, the director of the
60-18 department may continue to carry out the functions of the division
60-19 director for that division.
60-20 SECTION 1.36. As soon as practicable after the effective date
60-21 of this Act, the new governing board of the Texas Department of
60-22 Housing and Community Affairs appointed by the governor under
60-23 Subchapter B, Chapter 2306, Government Code, as amended by this
60-24 Act, shall develop a strategic action plan to implement the
60-25 requirements of this Act. The board shall employ a director to
60-26 provide and monitor the provision of administrative support to the
60-27 board to assist in implementing the plan. The director shall
61-1 evaluate the organizational structure of the department, including
61-2 the evaluation of essential management positions, and shall make
61-3 any organizational changes necessary to implement the plan and the
61-4 other requirements of this Act.
61-5 SECTION 1.37. (a) Not later than December 31, 2002, the
61-6 Sunset Advisory Commission shall evaluate the success of the Texas
61-7 Department of Housing and Community Affairs in implementing the
61-8 requirements of this Act before that date, including actions taken
61-9 by the department with respect to the following:
61-10 (1) establishment of a functional governing board that
61-11 values public input and enables board members to develop the
61-12 expertise necessary to make informed decisions about and to ensure
61-13 the accountability of the department and the programs of the
61-14 department;
61-15 (2) establishment of an organizational structure to
61-16 develop and implement a statewide needs assessment and a
61-17 corresponding allocation process that:
61-18 (A) ensure that the state's objectives regarding
61-19 housing and community support services are fulfilled;
61-20 (B) ensure that the state's most critical needs
61-21 regarding housing and community support services are identified and
61-22 met;
61-23 (C) incorporate input from local entities;
61-24 (D) maximize the preservation of affordable
61-25 housing; and
61-26 (E) achieve the best use of state resources;
61-27 (3) development of policies and procedures that
62-1 clearly define the appropriate roles of board members, the
62-2 director, and department staff;
62-3 (4) implementation of rules outlining a formal process
62-4 to appeal board decisions; and
62-5 (5) establishment of project compliance procedures
62-6 that ensure that the programs of the department provide fair access
62-7 to housing and community support services in this state.
62-8 (b) Before January 1, 2003, the Sunset Advisory Commission
62-9 shall report the results of evaluation to the presiding officer of
62-10 each house of the legislature.
62-11 SECTION 1.38. The rules of the Texas Department of Housing
62-12 and Community Affairs relating to the administration and
62-13 enforcement of the Texas Manufactured Housing Standards Act
62-14 (Article 5221f, Vernon's Texas Civil Statutes) are continued in
62-15 effect as rules of the manufactured housing division of the Texas
62-16 Department of Housing and Community Affairs until amended or
62-17 repealed by that division. Each affected license, certificate,
62-18 permit, bond, order, security, or registration issued or regulated
62-19 by the Texas Department of Housing and Community Affairs is
62-20 continued in effect as a license, certificate, permit, bond, order,
62-21 security, or registration of the manufactured housing division of
62-22 the Texas Department of Housing and Community Affairs.
62-23 SECTION 1.39. A complaint or investigation pending before the
62-24 Texas Department of Housing and Community Affairs on August 31,
62-25 2001, is transferred without change in status to the manufactured
62-26 housing division of the Texas Department of Housing and Community
62-27 Affairs on the effective date of this Act. A contested case
63-1 pending before the Texas Department of Housing and Community
63-2 Affairs on August 31, 2001, is transferred to the jurisdiction of
63-3 the manufactured housing division of the Texas Department of
63-4 Housing and Community Affairs on the effective date of this Act,
63-5 and actions taken in the proceeding shall be treated as if taken by
63-6 that division.
63-7 SECTION 1.40. A reference in a law to the Texas Department of
63-8 Housing and Community Affairs relating to the administration and
63-9 enforcement of the Texas Manufactured Housing Standards Act
63-10 (Article 5221f, Vernon's Texas Civil Statutes) means the
63-11 manufactured housing division of the Texas Department of Housing
63-12 and Community Affairs.
63-13 SECTION 1.41. Sections 2306.023, 2306.026, 2306.052(d), and
63-14 2306.092, Government Code, are repealed.
63-15 SECTION 1.42. Section 7(s), Texas Manufactured Housing
63-16 Standards Act (Article 5221f, Vernon's Texas Civil Statutes), as
63-17 added by Chapter 1369, Acts of the 76th Legislature, Regular
63-18 Session, 1999, is repealed.
63-19 SECTION 1.43. A member of the governing board of the Texas
63-20 Department of Housing and Community Affairs or of the Manufactured
63-21 Housing Board is not subject to the prohibition imposed by Section
63-22 2306.028 or 2306.6011, Government Code, as applicable, until
63-23 September 1, 2002.
63-24 SECTION 1.44. The change in law made by this Act in adding
63-25 Section 2306.6741, Government Code, applies only to a low income
63-26 housing tax credit property for which an application for an
63-27 allocation of low income housing tax credits is received by the
64-1 Texas Department of Housing and Community Affairs on or after
64-2 August 10, 1993.
64-3 ARTICLE 2
64-4 SECTION 2.01. Section 2306.004, Government Code, is amended
64-5 by adding Subdivisions (31)-(34) to read as follows:
64-6 (31) "Economic submarket" means a group of borrowers
64-7 who have common home mortgage loan market eligibility
64-8 characteristics, including income level, credit history or credit
64-9 score, and employment characteristics, that are similar to Standard
64-10 and Poor's credit underwriting criteria.
64-11 (32) "Geographic submarket" means a geographic region
64-12 in the state, including a county, census tract, or municipality,
64-13 that shares similar levels of access to home mortgage credit from
64-14 the private home mortgage lending industry, as determined by the
64-15 department based on home mortgage lending data published by federal
64-16 and state banking regulatory agencies.
64-17 (33) "Rural county" means a county that is outside the
64-18 boundaries of a primary metropolitan statistical area or a
64-19 metropolitan statistical area.
64-20 (34) "Subprime loan" means a loan that is originated
64-21 by a lender designated as a subprime lender on the subprime lender
64-22 list maintained by the United States Department of Housing and
64-23 Urban Development or identified as a lender primarily engaged in
64-24 subprime lending under Section 2306.143.
64-25 SECTION 2.02. Section 2306.142, Government Code, is amended
64-26 to read as follows:
64-27 Sec. 2306.142. AUTHORIZATION OF BONDS. (a) Subject to the
65-1 requirements of this section [In its discretion], the board shall
65-2 authorize all bonds issued by the department.
65-3 (b) If the issuance is authorized by the board, the
65-4 department shall issue single-family mortgage revenue bonds to make
65-5 home mortgage credit available for the purchase of newly
65-6 constructed or previously owned single-family homes to economic and
65-7 geographic submarkets of borrowers who are not served or who are
65-8 substantially underserved by the conventional, Fannie Mae, Freddie
65-9 Mac, or Federal Housing Administration home mortgage lending
65-10 industry or by housing finance corporations organized under Chapter
65-11 394, Local Government Code.
65-12 (c) The board by rule shall adopt a methodology for
65-13 determining through a market study the home mortgage credit needs
65-14 in underserved economic and geographic submarkets in the state. In
65-15 conducting the market study required by this subsection, the
65-16 department or its designee shall analyze for the underserved
65-17 economic and geographic submarkets, at a minimum, the following
65-18 factors:
65-19 (1) home ownership rates;
65-20 (2) loan volume;
65-21 (3) loan approval ratios;
65-22 (4) loan interest rates;
65-23 (5) loan terms;
65-24 (6) loan availability;
65-25 (7) type and number of dwelling units; and
65-26 (8) use of subprime mortgage loan products, comparing
65-27 the volume amount of subprime loans and interest rates to "A" paper
66-1 mortgage loans as defined by Standard and Poor's credit
66-2 underwriting criteria.
66-3 (d) The department or its designee shall analyze the
66-4 potential market demand, loan availability, and private sector home
66-5 mortgage lending rates available to extremely low, very low, low,
66-6 and moderate income borrowers in the rural counties of the state,
66-7 in census tracts in which the median family income is less than 80
66-8 percent of the median family income for the county in which the
66-9 census tract is located, and in the region of the state adjacent to
66-10 the international border of the state. The department or its
66-11 designee shall establish a process for serving those counties,
66-12 census tracts, and regions through the single-family mortgage
66-13 revenue bond program in a manner proportionate to the credit needs
66-14 of those areas as determined through the department's market study.
66-15 (e) Using the market study and the analysis required by this
66-16 section, the board shall evaluate the feasibility of a
66-17 single-family mortgage revenue bond program with loan marketing,
66-18 eligibility, underwriting, structuring, collection, and foreclosure
66-19 criteria and with loan services practices that are designed to meet
66-20 the credit needs of the underserved economic and geographic
66-21 submarkets of the state, including those submarkets served
66-22 disproportionately by subprime lenders.
66-23 (f) In evaluating a proposed bond program under this
66-24 section, the board shall consider, consistent with the reasonable
66-25 financial operation of the department, specific set-asides or
66-26 reservations of mortgage loans for underserved economic and
66-27 geographic submarkets in the state, including the reservation of
67-1 funds to serve borrowers who have "A-" to "B-" credit according to
67-2 Standard and Poor's credit underwriting criteria.
67-3 (g) The department may use any source of funds or subsidy
67-4 available to the department to provide credit enhancement, down
67-5 payment assistance, pre-homebuyer and post-homebuyer counseling,
67-6 interest rate reduction, and payment of incentive lender points to
67-7 accomplish the purposes of this section in a manner considered by
67-8 the board to be consistent with the reasonable financial operation
67-9 of the department.
67-10 (h) In allocating funds under Subsection (g), the
67-11 department's highest priority is to provide assistance to borrowers
67-12 in underserved economic and geographic submarkets in the state. If
67-13 the board determines that sufficient funds are available after
67-14 fully meeting the credit needs of borrowers in those submarkets,
67-15 the department may provide assistance to other borrowers.
67-16 (i) The board shall certify that each single-family mortgage
67-17 revenue bond issued by the department under this section is
67-18 structured in a manner that serves the credit needs of borrowers in
67-19 underserved economic and geographic submarkets in the state.
67-20 (j) After any board approval and certification of a
67-21 single-family mortgage revenue bond issuance, the department shall
67-22 submit the proposed bond issuance to the Bond Review Board for
67-23 review.
67-24 (k) In the state fiscal year beginning on September 1, 2001,
67-25 the department shall:
67-26 (1) adopt by rule a market study methodology as
67-27 required by Subsection (c);
68-1 (2) conduct the market study;
68-2 (3) propose for board review a single-family mortgage
68-3 revenue bond program, including loan feature details, a program for
68-4 borrower subsidies as provided by Subsections (g) and (h), and
68-5 origination and servicing infrastructure;
68-6 (4) identify reasonable capital markets financing;
68-7 (5) conduct a public hearing on the market study
68-8 results and the proposed bond program; and
68-9 (6) submit for review by the Bond Review Board the
68-10 market study results and, if approved and certified by the board,
68-11 the proposed bond program.
68-12 (l) In the state fiscal year beginning on September 1, 2002,
68-13 and in each subsequent state fiscal year, the department shall
68-14 allocate not less than 40 percent of the total single-family
68-15 mortgage revenue bond loan volume to meet the credit needs of
68-16 borrowers in underserved economic and geographic submarkets in the
68-17 state, subject to the identification of a satisfactory market
68-18 volume demand through the market study.
68-19 (m) On completion of the market study, if the board
68-20 determines in any year that bonds intended to be issued to achieve
68-21 the purposes of this section are unfeasible or would damage the
68-22 financial condition of the department, the board may formally
68-23 appeal to the Bond Review Board the requirements of Subsection (k)
68-24 or (l), as applicable. The Bond Review Board has sole authority to
68-25 modify or waive the required allocation levels.
68-26 (n) In addition to any other loan originators selected by
68-27 the department, the department shall authorize colonia self-help
69-1 centers and any other community-based, nonprofit institutions
69-2 considered appropriate by the board to originate loans on behalf of
69-3 the department. All non-financial institutions acting as loan
69-4 originators under this subsection must undergo adequate training,
69-5 as prescribed by the department, to participate in the bond
69-6 program. The department may require lenders to participate in
69-7 ongoing training and underwriting compliance audits to maintain
69-8 good standing to participate in the bond program. The department
69-9 may require that lenders meet appropriate eligibility standards as
69-10 prescribed by the department.
69-11 (o) The department shall structure all single-family
69-12 mortgage revenue bond issuances in a manner designed to recover the
69-13 full costs associated with conducting the activities required by
69-14 this section.
69-15 SECTION 2.03. Subchapter G, Chapter 2306, Government Code, is
69-16 amended by adding Section 2306.143 to read as follows:
69-17 Sec. 2306.143. ALTERNATIVE TO SUBPRIME LENDER LIST. (a) If
69-18 the United States Department of Housing and Urban Development
69-19 ceases to prepare or make public a subprime lender list, the market
69-20 study required by Section 2306.142 must annually survey the 100
69-21 largest refinancing lenders and the 100 largest home purchase loan
69-22 lenders in the state to identify lenders primarily engaged in
69-23 subprime lending.
69-24 (b) The lenders included in the survey must be identified on
69-25 the basis of home mortgage loan data reported by lenders under the
69-26 Home Mortgage Disclosure Act of 1975 (12 U.S.C. Section 2801 et
69-27 seq.) and the Community Reinvestment Act of 1977 (12 U.S.C. Section
70-1 2901 et seq.).
70-2 SECTION 2.04. Section 2306.583, Government Code, is amended
70-3 to read as follows:
70-4 Sec. 2306.583. SELF-HELP CENTERS: DESIGNATION. (a) The
70-5 department shall designate[:]
70-6 [(1)] a geographic area for the services provided by
70-7 each self-help center.
70-8 (b) In consultation with the colonia resident advisory
70-9 committee and the appropriate self-help center, the department
70-10 shall designate[; and]
70-11 [(2)] five colonias in each service area to receive
70-12 concentrated attention from that center.
70-13 (c) In consultation with the colonia resident advisory
70-14 committee and the appropriate self-help center, the [(b) The]
70-15 department may change the designation of colonias made under
70-16 Subsection (b) [(a)(2)].
70-17 SECTION 2.05. Section 2306.586, Government Code, is amended
70-18 by adding Subsection (e) to read as follows:
70-19 (e) Through a self-help center, a colonia resident may apply
70-20 for any direct loan or grant program operated by the department.
70-21 SECTION 2.06. Section 2306.587, Government Code, is amended
70-22 to read as follows:
70-23 Sec. 2306.587. OPERATION OF SELF-HELP CENTER; MONITORING.
70-24 (a) To operate a self-help center, the [The] department shall,
70-25 subject to the availability of revenue for that purpose, enter into
70-26 a four-year contract directly [for the operation of a self-help
70-27 center] with a local nonprofit organization, including a local
71-1 community action agency that qualifies as an eligible entity under
71-2 42 U.S.C. Section 9902, or a local housing authority that has
71-3 demonstrated the ability to carry out the functions of a self-help
71-4 center under this subchapter.
71-5 (b) The department is solely responsible for contract
71-6 oversight and for the monitoring of self-help centers under this
71-7 subchapter.
71-8 (c) The department and the self-help centers may apply for
71-9 and receive public or private gifts or grants to enable the centers
71-10 to achieve their purpose.
71-11 SECTION 2.07. Section 2306.589(a), Government Code, is
71-12 amended to read as follows:
71-13 (a) The department shall establish a fund in the department
71-14 designated as the colonia set-aside fund. The department may
71-15 contribute money to the fund from any available source of revenue
71-16 that the department considers appropriate to implement the purposes
71-17 of this subchapter.
71-18 SECTION 2.08. Sections 2306.753(a) and (b), Government Code,
71-19 are amended to read as follows:
71-20 (a) Subject to this section, the department shall establish
71-21 eligibility requirements for an owner-builder to receive a loan
71-22 under this subchapter. The eligibility requirements must establish
71-23 a priority for loans made under this subchapter to owner-builders
71-24 with an annual income, as determined under Subsection (b)(1)
71-25 [(b)(2)], of less than $17,500.
71-26 (b) To be eligible for a loan under this subchapter, an
71-27 owner-builder:
72-1 (1) [must reside with at least two other persons
72-2 related to the owner-builder in the first degree by consanguinity
72-3 or affinity, as determined under Subchapter B, Chapter 573;]
72-4 [(2)] may not have an annual income that exceeds 60
72-5 percent, as determined by the department, of the greater of the
72-6 state or local median family income, when combined with the income
72-7 of any person who resides with the owner-builder;
72-8 (2) [(3)] must have resided in this state for the
72-9 preceding six months;
72-10 (3) [(4)] must have successfully completed an
72-11 owner-builder education class under Section 2306.756; and
72-12 (4) [(5)] must agree to:
72-13 (A) provide at least 60 percent of the labor
72-14 necessary to build the proposed housing by working through a
72-15 state-certified owner-builder housing program; or
72-16 (B) provide an amount of labor equivalent to the
72-17 amount required under Paragraph (A) in connection with building
72-18 housing for others through a state-certified nonprofit
72-19 owner-builder housing program.
72-20 SECTION 2.09. Sections 2306.754(a) and (b), Government Code,
72-21 are amended to read as follows:
72-22 (a) The department may establish the minimum amount of a
72-23 loan under this subchapter, but a loan may not exceed $30,000
72-24 [$25,000].
72-25 (b) If it is not possible for an owner-builder to purchase
72-26 necessary real property and build adequate housing for $30,000
72-27 [$25,000], the owner-builder must obtain the amount necessary that
73-1 exceeds $30,000 [$25,000] from one or more local governmental
73-2 entities, nonprofit organizations, or private lenders. The total
73-3 amount of loans made by the department and other entities to an
73-4 owner-builder under this subchapter may not exceed $60,000.
73-5 SECTION 2.10. Section 2306.755, Government Code, is amended
73-6 to read as follows:
73-7 Sec. 2306.755. NONPROFIT OWNER-BUILDER HOUSING PROGRAMS. (a)
73-8 The department may certify nonprofit owner-builder housing programs
73-9 operated by a tax-exempt organization listed under Section
73-10 501(c)(3), Internal Revenue Code of 1986, to:
73-11 (1) qualify potential owner-builders for loans under
73-12 this subchapter;
73-13 (2) provide owner-builder education classes under
73-14 Section 2306.756;
73-15 (3) assist owner-builders in building housing; and
73-16 (4) originate or service [administer] loans made [by
73-17 the department] under this subchapter.
73-18 (b) The department by rule shall adopt procedures for the
73-19 certification of nonprofit owner-builder housing programs under
73-20 this section.
73-21 SECTION 2.11. Section 2306.758, Government Code, is amended
73-22 by amending Subsection (b) and adding Subsection (c) to read as
73-23 follows:
73-24 (b) The department may also make loans under this subchapter
73-25 from:
73-26 (1) available funds in the housing trust fund
73-27 established under Section 2306.201;
74-1 (2) federal block grants that may be used for the
74-2 purposes of this subchapter; and
74-3 (3) the owner-builder revolving loan fund established
74-4 under Section 2306.7581 [amounts received by the department in
74-5 repayment of loans made under this subchapter].
74-6 (c) In a state fiscal year, the department may use not more
74-7 than 10 percent of the revenue available for purposes of this
74-8 subchapter to enhance the ability of tax-exempt organizations
74-9 described by Section 2306.755(a) to implement the purposes of this
74-10 chapter.
74-11 SECTION 2.12. Subchapter FF, Chapter 2306, Government Code,
74-12 is amended by adding Section 2306.7581 to read as follows:
74-13 Sec. 2306.7581. OWNER-BUILDER REVOLVING LOAN FUND. (a) The
74-14 department shall establish an owner-builder revolving loan fund in
74-15 the department for the sole purpose of funding loans under this
74-16 subchapter.
74-17 (a-1) Using any available source of revenue, the department
74-18 shall transfer to the fund at least $3 million each state fiscal
74-19 year. This subsection expires August 31, 2010.
74-20 (b) The department shall deposit money received in repayment
74-21 of a loan under this subchapter to the owner-builder revolving loan
74-22 fund.
74-23 SECTION 2.13. Chapter 2306, Government Code, is amended by
74-24 adding Subchapter GG to read as follows:
74-25 SUBCHAPTER GG. COLONIA MODEL SUBDIVISION PROGRAM
74-26 Sec. 2306.781. DEFINITION. In this subchapter, "program"
74-27 means the colonia model subdivision program established under this
75-1 subchapter.
75-2 Sec. 2306.782. ESTABLISHMENT OF PROGRAM. The department
75-3 shall establish the colonia model subdivision program to promote
75-4 the development of new, high-quality, residential subdivisions that
75-5 provide:
75-6 (1) alternatives to substandard colonias; and
75-7 (2) housing options affordable to individuals and
75-8 families of extremely low and very low income who would otherwise
75-9 move into substandard colonias.
75-10 Sec. 2306.783. COLONIA MODEL SUBDIVISION REVOLVING LOAN
75-11 FUND. (a) The department shall establish a colonia model
75-12 subdivision revolving loan fund in the department. Money in the
75-13 fund may be used only for purposes of the program.
75-14 (a-1) The department may transfer money into the fund using
75-15 any available source of revenue.
75-16 (a-2) On application, the department may provide a loan
75-17 under this subchapter through an eligible political subdivision
75-18 using money from the portion of community development block grant
75-19 that is set aside under federal law to provide financial assistance
75-20 to colonias. In a state fiscal year, the department may not
75-21 provide loans under this subchapter using more than $2 million from
75-22 the set-aside for colonias.
75-23 (a-3) Subsections (a-1) and (a-2) and this subsection expire
75-24 August 31, 2010.
75-25 (b) The department shall deposit money received in repayment
75-26 of loans under this subchapter to the colonia model subdivision
75-27 revolving loan fund.
76-1 Sec. 2306.784. SUBDIVISION COMPLIANCE. Any subdivision
76-2 created with assistance from the fund must fully comply with all
76-3 state and local laws, including any process established under state
76-4 or local law for subdividing real property.
76-5 Sec. 2306.785. PROGRAM LOANS. (a) The department may make
76-6 loans under the program only to:
76-7 (1) colonia self-help centers established under
76-8 Subchapter Z; and
76-9 (2) community housing development organizations
76-10 certified by the department.
76-11 (b) A loan made under the program may be used only for the
76-12 payment of:
76-13 (1) costs associated with the purchase of real
76-14 property;
76-15 (2) costs of surveying, platting, and subdividing or
76-16 resubdividing real property;
76-17 (3) fees, insurance costs, or recording costs
76-18 associated with the development of the subdivision;
76-19 (4) costs of providing proper infrastructure necessary
76-20 to support residential uses;
76-21 (5) real estate commissions and marketing fees; and
76-22 (6) any other costs as the department by rule
76-23 determines to be reasonable and prudent to advance the purposes of
76-24 this subchapter.
76-25 (c) A loan made by the department under the program may not
76-26 bear interest and may not exceed a term of 36 months.
76-27 (d) The department may offer a borrower under the program
77-1 one loan renewal for each subdivision.
77-2 Sec. 2306.786. ADMINISTRATION OF PROGRAM; RULES. (a) In
77-3 administering the program, the department by rule shall adopt:
77-4 (1) any subdivision standards in excess of local
77-5 standards the department considers necessary;
77-6 (2) loan application procedures;
77-7 (3) program guidelines; and
77-8 (4) contract award procedures.
77-9 (b) The department shall adopt rules to:
77-10 (1) ensure that a borrower under the program sells
77-11 real property under the program only to an individual borrower,
77-12 nonprofit housing developer, or for-profit housing developer for
77-13 the purposes of constructing residential dwelling units; and
77-14 (2) require a borrower under the program to convey
77-15 real property under the program at a cost that is affordable to:
77-16 (A) individuals and families of extremely low
77-17 income; or
77-18 (B) individuals and families of very low income.
77-19 SECTION 2.14. Subchapter B, Chapter 11, Tax Code, is amended
77-20 by adding Section 11.184 to read as follows:
77-21 Sec. 11.184. COLONIA MODEL SUBDIVISION PROGRAM. (a) An
77-22 organization is entitled to an exemption from taxation of
77-23 unimproved real property it owns if the organization:
77-24 (1) meets the requirements of a charitable
77-25 organization provided by Sections 11.18(e) and (f);
77-26 (2) purchased the property or is developing the
77-27 property with proceeds of a loan made by the Texas Department of
78-1 Housing and Community Affairs under the colonia model subdivision
78-2 program under Subchapter GG, Chapter 2306, Government Code; and
78-3 (3) owns the property for the purpose of developing a
78-4 model colonia subdivision.
78-5 (b) Property may not be exempted under Subsection (a) after
78-6 the fifth anniversary of the date the organization acquires the
78-7 property.
78-8 (c) An organization entitled to an exemption under
78-9 Subsection (a) is also entitled to an exemption from taxation of
78-10 any building or tangible personal property the organization owns
78-11 and uses in the administration of its acquisition, building,
78-12 repair, or sale of property. To qualify for an exemption under
78-13 this subsection, property must be used exclusively by the
78-14 charitable organization, except that another individual or
78-15 organization may use the property for activities incidental to the
78-16 charitable organization's use that benefit the beneficiaries of the
78-17 charitable organization.
78-18 (d) For the purposes of Subsection (e), the chief appraiser
78-19 shall determine the market value of property exempted under
78-20 Subsection (a) and shall record the market value in the appraisal
78-21 records.
78-22 (e) If the organization that owns improved or unimproved
78-23 real property that has been exempted under Subsection (a) sells
78-24 the property to a person other than a person described by Section
78-25 2306.786(b)(1), Government Code, a penalty is imposed on the
78-26 property equal to the amount of the taxes that would have been
78-27 imposed on the property in each tax year that the property was
79-1 exempted from taxation under Subsection (a), plus interest at an
79-2 annual rate of 12 percent computed from the dates on which the
79-3 taxes would have become due.
79-4 SECTION 2.15. If the administration of the federal community
79-5 development block grant program is transferred to an agency other
79-6 than the Texas Department of Housing and Community Affairs, the new
79-7 administering agency shall enter into a memorandum of understanding
79-8 with the Texas Department of Housing and Community Affairs to
79-9 permit the housing department to receive and administer the portion
79-10 of community development block grant money specifically allocated
79-11 under the General Appropriations Act to fund the operation of
79-12 colonia self-help centers. The memorandum must require the new
79-13 administering agency to transfer to the housing department a
79-14 portion of the agency's total administrative funds in the same
79-15 ratio that the portion of community development block grant money
79-16 allocated for the self-help centers bears to the total yearly
79-17 allocation of community development block grant money. The
79-18 memorandum must require the new administering agency to continue to
79-19 fund the housing department's border field offices through the
79-20 community development block grant program and must require the
79-21 housing department to exercise oversight and supervision over those
79-22 field offices and staff.
79-23 SECTION 2.16. Section 2306.760, Government Code, is repealed.
79-24 ARTICLE 3
79-25 SECTION 3.01. Subchapter A, Chapter 2306, Government Code, is
79-26 amended by adding Section 2306.008 to read as follows:
79-27 Sec. 2306.008. PRESERVATION OF AFFORDABLE HOUSING. (a) The
80-1 department shall support in the manner described by Subsection (b)
80-2 the preservation of affordable housing for individuals with special
80-3 needs, as defined by Section 2306.511, and individuals and families
80-4 of low income at any location considered necessary by the
80-5 department.
80-6 (b) The department shall support the preservation of
80-7 affordable housing under this section by:
80-8 (1) making low interest financing and grants available
80-9 to private for-profit and nonprofit buyers who seek to acquire,
80-10 preserve, and rehabilitate affordable housing; and
80-11 (2) prioritizing available funding and financing
80-12 resources for affordable housing preservation activities.
80-13 SECTION 3.02. Subchapter H, Chapter 2306, Government Code, is
80-14 amended by adding Section 2306.185 to read as follows:
80-15 Sec. 2306.185. LONG-TERM AFFORDABILITY AND SAFETY OF
80-16 MULTIFAMILY RENTAL HOUSING DEVELOPMENTS. (a) The department shall
80-17 adopt policies and procedures to ensure that, for a multifamily
80-18 rental housing development funded through loans, grants, or tax
80-19 credits under this chapter, the owner of the development:
80-20 (1) keeps the rents affordable for low income tenants
80-21 for the longest period that is economically feasible; and
80-22 (2) provides regular maintenance to keep the
80-23 development sanitary, decent, and safe.
80-24 (b) In implementing Subsection (a)(1) and in developing
80-25 underwriting standards and application scoring criteria for the
80-26 award of loans, grants, or tax credits to multifamily developments,
80-27 the department shall ensure that the economic benefits of longer
81-1 affordability terms and below market rate rents are accurately
81-2 assessed and considered.
81-3 (c) The department shall require that a recipient of funding
81-4 maintains the affordability of the multifamily housing development
81-5 for households of extremely low, very low, low, and moderate
81-6 incomes for the greater of a 30-year period from the date the
81-7 recipient takes legal possession of the housing or the remaining
81-8 term of the existing federal government assistance. In addition,
81-9 the agreement between the department and the recipient shall
81-10 require the renewal of rental subsidies if available and if the
81-11 subsidies are sufficient to maintain the economic viability of the
81-12 multifamily development.
81-13 (d) The development restrictions provided by Subsection (a)
81-14 and Section 2306.269 are enforceable by the department, by tenants
81-15 of the development, or by private parties against the initial owner
81-16 or any subsequent owner. The department shall require a land use
81-17 restriction agreement providing for enforcement of the restrictions
81-18 by the department, a tenant, or a private party that includes the
81-19 right to recover reasonable attorney's fees if the party seeking
81-20 enforcement of the restriction is successful.
81-21 (e) Subsections (c) and (d) and Section 2306.269 apply only
81-22 to multifamily rental housing developments to which the department
81-23 is providing one or more of the following forms of assistance:
81-24 (1) a loan or grant in an amount greater than 33
81-25 percent of the market value of the development on the date the
81-26 recipient took legal possession of the development;
81-27 (2) a loan guarantee for a loan in an amount greater
82-1 than 33 percent of the market value of the development on the date
82-2 the recipient took legal title to the development; or
82-3 (3) a low income housing tax credit.
82-4 (f) An owner of the housing development who intends to sell,
82-5 lease, prepay the loan insured by the United States Department of
82-6 Housing and Urban Development, opt out of a housing assistance
82-7 payments contract under Section 8, United States Housing Act of
82-8 1937 (42 U.S.C. Section 1437f), or otherwise dispose of the
82-9 development shall agree to provide notice to the department at
82-10 least 12 months before the date of any attempt to dispose of the
82-11 development, prepay the loan, or opt out of the Section 8 contract
82-12 to enable the department to attempt to locate a buyer who will
82-13 conform to the development restrictions provided by this section.
82-14 (g) This section does not apply to a multifamily rental
82-15 housing development supported by qualified 501(c)(3) bonds.
82-16 SECTION 3.03. Subchapter K, Chapter 2306, Government Code, is
82-17 amended by adding Section 2306.2561 to read as follows:
82-18 Sec. 2306.2561. AFFORDABLE HOUSING PRESERVATION PROGRAM:
82-19 LOANS AND GRANTS. (a) The department, through the housing finance
82-20 division, shall provide loans and grants to political subdivisions,
82-21 housing finance corporations, public housing authorities,
82-22 for-profit organizations, nonprofit organizations, and
82-23 income-eligible individuals, families, and households for purposes
82-24 of rehabilitating housing to preserve affordability of the housing.
82-25 (b) The department may use any available revenue, including
82-26 legislative appropriations, to provide loans and grants under this
82-27 section.
83-1 SECTION 3.04. Section 2306.269, Government Code, is amended
83-2 to read as follows:
83-3 Sec. 2306.269. TENANT AND MANAGER SELECTION. (a) The
83-4 department shall set standards for tenant and management selection
83-5 by a housing sponsor.
83-6 (b) The department shall prohibit multifamily rental housing
83-7 developments funded or administered by the department from:
83-8 (1) excluding an individual or family from admission
83-9 to the development because the individual or family participates in
83-10 the housing choice voucher program under Section 8, United States
83-11 Housing Act of 1937 (42 U.S.C. Section 1437f); and
83-12 (2) using a financial or minimum income standard for
83-13 an individual or family participating in the voucher program
83-14 described by Subdivision (1) that requires the individual or family
83-15 to have a monthly income of more than 2-1/2 times the individual's
83-16 or family's share of the total monthly rent payable to the owner of
83-17 the development unit.
83-18 SECTION 3.05. Chapter 2306, Government Code, is amended by
83-19 adding Subchapter HH to read as follows:
83-20 SUBCHAPTER HH. AFFORDABLE HOUSING PRESERVATION
83-21 Sec. 2306.801. DEFINITION. In this subchapter, "federally
83-22 subsidized" means receiving financial assistance through a federal
83-23 program administered by the Secretary of Housing and Urban
83-24 Development or the Secretary of Agriculture under which housing
83-25 assistance is provided on the basis of income, including a program
83-26 under:
83-27 (1) Section 221(d), National Housing Act (12 U.S.C.
84-1 Section 1715l(d));
84-2 (2) Section 236, National Housing Act (12 U.S.C.
84-3 Section 1715z-1);
84-4 (3) Section 202, Housing Act of 1959 (12 U.S.C.
84-5 Section 1701q);
84-6 (4) Section 101, Housing and Urban Development Act of
84-7 1965 (12 U.S.C. Section 1701s);
84-8 (5) Section 514, 515, or 516, Housing Act of 1949 (42
84-9 U.S.C. Section 1484, 1485, or 1486); or
84-10 (6) Section 8, United States Housing Act of 1937 (42
84-11 U.S.C. Section 1437f).
84-12 Sec. 2306.802. MULTIFAMILY HOUSING PRESERVATION CLASSES. The
84-13 department shall establish two classes of priorities of
84-14 developments to preserve multifamily housing. The classes, in
84-15 order of descending priority, are:
84-16 (1) Class A, which includes any federally subsidized
84-17 multifamily housing development at risk because the contract
84-18 granting a federal subsidy with a stipulation to maintain
84-19 affordability is nearing expiration or because the
84-20 government-insured mortgage on the property is eligible for
84-21 prepayment or near the end of its mortgage term; and
84-22 (2) Class B, which includes any other multifamily
84-23 housing development with low income use or rental affordability
84-24 restrictions.
84-25 Sec. 2306.803. AT-RISK MULTIFAMILY HOUSING: IDENTIFICATION,
84-26 PRIORITIZATION, AND PRESERVATION. (a) The department shall
84-27 determine the name and location of and the number of units in each
85-1 multifamily housing development that is at risk of losing its low
85-2 income use restrictions and subsidies and that meets the
85-3 requirements of a Class A priority described by Section 2306.802.
85-4 (b) The department shall maintain an accurate list of those
85-5 developments on the department's website.
85-6 (c) The department shall develop cost estimates for the
85-7 preservation and rehabilitation of the developments in priority
85-8 Class A.
85-9 (d) The department shall contact owners of developments
85-10 assigned a Class A priority under this section and shall attempt to
85-11 negotiate with those owners to ensure continued affordability for
85-12 individuals and families of low income under the federal housing
85-13 assistance program for those developments.
85-14 Sec. 2306.804. USE OF HOUSING PRESERVATION RESOURCES. (a)
85-15 To the extent possible, the department shall use available
85-16 resources for the preservation and rehabilitation of the
85-17 multifamily housing developments identified and listed under
85-18 Section 2306.803.
85-19 (b) To the extent possible, the department shall allocate
85-20 low income housing tax credits to applications involving the
85-21 preservation of developments assigned a Class A priority under
85-22 Section 2306.803 and in both urban and rural communities in
85-23 approximate proportion to the housing needs of each uniform state
85-24 service region.
85-25 (c) The department shall give priority to providing
85-26 financing or funding to a buyer who is supported or approved by an
85-27 association of residents of the multifamily housing development.
86-1 Sec. 2306.805. HOUSING PRESERVATION INCENTIVES PROGRAM. (a)
86-2 The department shall establish and administer a housing
86-3 preservation incentives program to provide incentives through loan
86-4 guarantees, loans, and grants to political subdivisions, housing
86-5 finance corporations, public housing authorities, for-profit
86-6 organizations, and nonprofit organizations for the acquisition and
86-7 rehabilitation of multifamily housing developments assigned a Class
86-8 A or Class B priority under Section 2306.803.
86-9 (b) A loan issued by a lender participating in the program
86-10 must be fully underwritten by the department.
86-11 (c) Consistent with the requirements of federal law, the
86-12 department may guarantee loans issued under the program by
86-13 obtaining a Section 108 loan guarantee from the United States
86-14 Department of Housing and Urban Development under the Housing and
86-15 Community Development Act of 1974 (42 U.S.C. Section 5308).
86-16 (d) Grants under this program may include direct subsidies
86-17 offered as an equity contribution to enable an owner to acquire and
86-18 rehabilitate a Class A or Class B priority property described by
86-19 Section 2306.802. Grants may also be offered to provide
86-20 consultation and technical assistance services to a nonprofit
86-21 organization seeking to acquire and rehabilitate a Class A or Class
86-22 B priority property.
86-23 (e) A housing development that benefits from the incentive
86-24 program under this section is subject to the requirements
86-25 concerning:
86-26 (1) long-term affordability and safety prescribed by
86-27 Section 2306.185; and
87-1 (2) tenant and manager selection prescribed by Section
87-2 2306.269.
87-3 SECTION 3.06. (a) Chapter 2306, Government Code, is amended
87-4 by adding Section 2306.806 to Subchapter HH, as added by this Act,
87-5 to read as follows:
87-6 Sec. 2306.806. APPROVAL OF OFFICE OF RURAL COMMUNITY
87-7 AFFAIRS. The department must obtain the approval of the executive
87-8 director of the Office of Rural Community Affairs to guarantee
87-9 loans as described by Section 2306.805(c).
87-10 (b) This section takes effect only if H.B. No. 7, Acts of
87-11 the 77th Legislature, Regular Session, 2001, becomes law. If that
87-12 bill does not become law, this section has no effect.
87-13 SECTION 3.07. Chapter 2306, Government Code, is amended by
87-14 adding Subchapter II to read as follows:
87-15 SUBCHAPTER II. MULTIFAMILY HOUSING DEVELOPMENTS:
87-16 PRESERVATION OF AFFORDABILITY
87-17 Sec. 2306.851. APPLICATION. (a) This subchapter applies
87-18 only to a property owner of a multifamily housing development that
87-19 is insured or assisted under a program under Section 8, United
87-20 States Housing Act of 1937 (42 U.S.C. Section 1437f), or that is:
87-21 (1) insured or assisted under a program under:
87-22 (A) Section 221(d)(3), National Housing Act (12
87-23 U.S.C. Section 1715l);
87-24 (B) Section 236, National Housing Act (12 U.S.C.
87-25 Section 1715z-1); or
87-26 (C) Section 514, 515, or 516, Housing Act of
87-27 1949 (42 U.S.C. Section 1484, 1485, or 1486); and
88-1 (2) financed by a mortgage that is eligible for
88-2 prepayment at the option of the property owner.
88-3 (b) This subchapter does not apply to the disposal of
88-4 property because of:
88-5 (1) a governmental taking by eminent domain or
88-6 negotiated purchase;
88-7 (2) a foreclosure action;
88-8 (3) a transfer by gift, devise, or operation of law;
88-9 or
88-10 (4) a sale to a person who would be entitled to an
88-11 interest in the property if the property owner died intestate.
88-12 (c) This subchapter does not apply to property included in a
88-13 restructuring program with a participating administrative entity
88-14 designated by the United States Department of Housing and Urban
88-15 Development.
88-16 Sec. 2306.852. PROPERTY OWNER RESTRICTION. Except as
88-17 provided by this subchapter, a property owner to whom this
88-18 subchapter applies may not sell, lease, or otherwise dispose of a
88-19 multifamily housing development described by Section 2306.851(a) or
88-20 take any other action if that action will cause the disruption or
88-21 discontinuance of:
88-22 (1) the development's federal insurance or assistance;
88-23 or
88-24 (2) the provision of low income housing assistance to
88-25 residents of the development.
88-26 Sec. 2306.853. NOTICE OF INTENT. (a) A property owner of a
88-27 multifamily housing development may take an action, sell, lease, or
89-1 otherwise dispose of the development subject to the restriction
89-2 under Section 2306.852 if the property owner provides notice by
89-3 mail of the owner's intent to the residents of the development and
89-4 to the department.
89-5 (b) The notice required by Subsection (a) must indicate, as
89-6 applicable, that the property owner intends to prepay a mortgage
89-7 under a program described by Section 2306.851(a)(1) or that a
89-8 contract formed under a program under Section 8, United States
89-9 Housing Act of 1937 (42 U.S.C. Section 1437f), will expire.
89-10 (c) The property owner shall provide the notice required by
89-11 Subsection (a) before the 90th day preceding the date of mortgage
89-12 prepayment or contract expiration, as applicable, and as otherwise
89-13 required by federal law.
89-14 (d) The notice required by this section is sufficient if the
89-15 notice meets the requirements of Section 8(c)(8), United States
89-16 Housing Act of 1937 (42 U.S.C. Section 1437f(c)(8)).
89-17 SECTION 3.08. (a) The Texas Department of Housing and
89-18 Community Affairs shall adopt the policies and procedures on the
89-19 long-term affordability and safety of multifamily rental housing
89-20 developments under Section 2306.185, Government Code, as added by
89-21 this Act, not later than November 1, 2001.
89-22 (b) The enforcement of the restrictions concerning
89-23 multifamily rental housing developments under Section 2306.185,
89-24 Government Code, as added by this Act, applies only to developments
89-25 that receive assistance from the Texas Department of Housing and
89-26 Community Affairs on or after January 1, 2002.
89-27 (c) The enforcement of restrictions concerning tenant and
90-1 manager selection under Section 2306.269, Government Code, as
90-2 amended by this Act, applies only to housing developments that
90-3 receive assistance from the Texas Department of Housing and
90-4 Community Affairs on or after January 1, 2002.
90-5 (d) The Texas Department of Housing and Community Affairs
90-6 shall create an initial list of multifamily housing developments
90-7 that are ranked by priority as required by Section 2306.803,
90-8 Government Code, as added by this Act, not later than January 1,
90-9 2002.
90-10 (e) If community development block grant funds are
90-11 transferred to another state agency, the Texas Department of
90-12 Housing and Community Affairs shall negotiate a memorandum of
90-13 understanding to permit the implementation of Section 2306.805(c),
90-14 Government Code, as added by this Act.
90-15 (f) The changes in law made by this article apply to a
90-16 multifamily housing development described by Section 2306.851,
90-17 Government Code, as added by this Act, that a property owner
90-18 intends to sell, lease, or otherwise dispose of on or after January
90-19 1, 2002.
90-20 (g) The outstanding balance of Section 108 loan guarantees
90-21 issued as described by Section 2306.805(c), Government Code, as
90-22 added by this Act, may not exceed $10 million. This subsection
90-23 expires December 31, 2004.
90-24 SECTION 3.09. (a) Except as provided by Subsection (b) of
90-25 this section, the change in law made by this Act in adding Section
90-26 2306.269(b), Government Code, applies only to a multifamily rental
90-27 housing development for which the funding or administration by the
91-1 Texas Department of Housing and Community Affairs begins on or
91-2 after the effective date of this Act.
91-3 (b) If the multifamily rental housing development funded or
91-4 administered by the Texas Department of Housing and Community
91-5 Affairs is a low income housing tax credit property, the change in
91-6 law made by this Act in adding Section 2306.269(b), Government
91-7 Code, applies only if an application for an allocation of low
91-8 income housing tax credits for that development is received by the
91-9 department on or after August 10, 1993.
91-10 ARTICLE 4
91-11 SECTION 4.01. Section 2306.072(c), Government Code, is
91-12 amended to read as follows:
91-13 (c) The report must include:
91-14 (1) a complete operating and financial statement of
91-15 the department;
91-16 (2) a comprehensive statement of the activities of the
91-17 department during the preceding year to address the needs
91-18 identified in the state low income housing plan prepared as
91-19 required by Section 2306.0721, including:
91-20 (A) a statistical and narrative analysis of the
91-21 department's performance in addressing the housing needs of
91-22 individuals and families of low and very low income;
91-23 (B) the ethnic and racial composition of
91-24 individuals and families applying for and receiving assistance from
91-25 each housing-related program operated by the department; and
91-26 (C) the department's progress in meeting the
91-27 goals established in the previous housing plan;
92-1 (3) an explanation of the efforts made by the
92-2 department to ensure the participation of individuals of low income
92-3 and their community-based institutions in department programs that
92-4 affect them;
92-5 (4) a statement of the evidence that the department
92-6 has made an affirmative effort to ensure the involvement of
92-7 individuals of low income and their community-based institutions in
92-8 the allocation of funds and the planning process;
92-9 (5) a statistical analysis, delineated according to
92-10 each ethnic and racial group served by the department, that
92-11 indicates the progress made by the department in implementing the
92-12 state low income housing plan in each of the uniform state service
92-13 regions;
92-14 (6) an analysis, based on information provided by the
92-15 fair housing sponsor reports required under Section 2306.0724 and
92-16 other available data, of fair housing opportunities in each housing
92-17 development that receives financial assistance from the department
92-18 that includes the following information for each housing
92-19 development that contains 20 or more living units:
92-20 (A) the street address and municipality or
92-21 county in which the property is located;
92-22 (B) the telephone number of the property
92-23 management or leasing agent;
92-24 (C) the total number of units, reported by
92-25 bedroom size;
92-26 (D) [(C)] the total number of units, reported by
92-27 bedroom size, designed for individuals who are physically
93-1 challenged or who have special needs and the number of these
93-2 individuals served annually [as reported by each housing sponsor];
93-3 (E) the rent for each type of rental unit,
93-4 reported by bedroom size [(D) a statistical analysis of average
93-5 rents reported by county];
93-6 (F) [(E)] the race or ethnic makeup of each
93-7 project [as reported annually by each housing sponsor];
93-8 (G) [(F)] the number of units occupied by
93-9 individuals receiving government-supported housing assistance and
93-10 the type of assistance received [as reported by each housing
93-11 sponsor];
93-12 (H) the number of units occupied by individuals
93-13 and families of extremely low income, very low income, low income,
93-14 moderate income, and other levels of income;
93-15 (I) [(G)] a statement as to whether the
93-16 department has been notified of a violation of the fair housing law
93-17 that has been filed with the United States Department of Housing
93-18 and Urban Development, the Commission on Human Rights, or the
93-19 United States Department of Justice; and
93-20 (J) [(H)] a statement as to whether the
93-21 development has any instances of material noncompliance with bond
93-22 indentures or deed restrictions discovered through the normal
93-23 monitoring activities and procedures that include meeting occupancy
93-24 requirements or rent restrictions imposed by deed restriction or
93-25 financing agreements; [and]
93-26 (7) a report on the geographic distribution of low
93-27 income housing tax credits, the amount of unused low income housing
94-1 tax credits, and the amount of low income housing tax credits
94-2 received from the federal pool of unused funds from other states;
94-3 and
94-4 (8) a statistical analysis, based on information
94-5 provided by the fair housing sponsor reports required by Section
94-6 2306.0724 and other available data, of average rents reported by
94-7 county.
94-8 SECTION 4.02. Subchapter D, Chapter 2306, Government Code, is
94-9 amended by adding Section 2306.0724 to read as follows:
94-10 Sec. 2306.0724. FAIR HOUSING SPONSOR REPORT. (a) The
94-11 department shall require the owner of each housing development that
94-12 receives financial assistance from the department and that contains
94-13 20 or more living units to submit an annual fair housing sponsor
94-14 report. The report must include the relevant information necessary
94-15 for the analysis required by Section 2306.072(c)(6). In compiling
94-16 the information for the report, the owner of each housing
94-17 development shall use data current as of January 1 of the reporting
94-18 year.
94-19 (b) The department shall adopt rules regarding the procedure
94-20 for filing the report.
94-21 (c) The department shall maintain the reports in electronic
94-22 and hard-copy formats readily available to the public at no cost.
94-23 (d) A housing sponsor who fails to file a report in a timely
94-24 manner is subject to the following sanctions, as determined by the
94-25 department:
94-26 (1) denial of a request for additional funding; or
94-27 (2) an administrative penalty in an amount not to
95-1 exceed $1,000, assessed in the manner provided for an
95-2 administrative penalty under Section 2306.6023.
95-3 SECTION 4.03. Section 2306.077, Government Code, is amended
95-4 by adding Subsections (d) and (e) to read as follows:
95-5 (d) The department shall provide for annual housing sponsor
95-6 reports required by Section 2306.0724 to be filed through the
95-7 Internet.
95-8 (e) The department shall provide for reports regarding
95-9 housing units designed for persons with disabilities made under
95-10 Section 2306.078 to be filed through the Internet.
95-11 SECTION 4.04. Subchapter D, Chapter 2306, Government Code, is
95-12 amended by adding Section 2306.078 to read as follows:
95-13 Sec. 2306.078. INFORMATION REGARDING HOUSING FOR PERSONS
95-14 WITH DISABILITIES. (a) The department shall establish a system
95-15 that requires owners of state or federally assisted housing
95-16 developments with 20 or more housing units to report information
95-17 regarding housing units designed for persons with disabilities.
95-18 (b) The system must provide for each owner of a development
95-19 described by Subsection (a) with at least one housing unit designed
95-20 for a person with a disability to enter the following information
95-21 on the department's Internet site:
95-22 (1) the name, if any, of the development;
95-23 (2) the street address of the development;
95-24 (3) the number of housing units in the development
95-25 that are designed for persons with disabilities and that are
95-26 available for lease;
95-27 (4) the number of bedrooms in each housing unit
96-1 designed for a person with a disability;
96-2 (5) the special features that characterize each
96-3 housing unit's suitability for a person with a disability;
96-4 (6) the rent for each housing unit designed for a
96-5 person with a disability; and
96-6 (7) the telephone number and name of the development
96-7 manager or agent to whom inquiries by prospective tenants may be
96-8 made.
96-9 (c) The department shall require each owner to maintain
96-10 updated contact information under Subsection (b)(7) and shall
96-11 solicit the owner's voluntary provision of updated information
96-12 under Subsections (b)(3) and (6).
96-13 (d) The department shall make information provided under
96-14 this section available to the public in electronic and hard-copy
96-15 formats at no cost.
96-16 ARTICLE 5
96-17 SECTION 5.01. Subchapter D, Chapter 2306, Government Code, is
96-18 amended by adding Sections 2306.079 and 2306.080 to read as
96-19 follows:
96-20 Sec. 2306.079. REGIONAL DEVELOPMENT COORDINATOR. (a) In
96-21 this section:
96-22 (1) "Regional development coordinator" means a person
96-23 employed by or under contract with the department to perform the
96-24 duties described by this section.
96-25 (2) "Regional partner" means an entity such as a
96-26 regional planning commission, political subdivision, local
96-27 nonprofit organization, institution of higher education, community
97-1 housing development organization, housing finance corporation,
97-2 public housing authority, agricultural extension agent, local bank,
97-3 or field office or service center of the United States Department
97-4 of Agriculture Rural Development Texas that is engaged in
97-5 data-gathering projects related to the goals of the department.
97-6 (b) The department shall employ or contract with a regional
97-7 development coordinator for each uniform state service region of
97-8 this state. The primary responsibilities of a regional development
97-9 coordinator are:
97-10 (1) assisting local communities in determining how to
97-11 address affordable housing and community development needs;
97-12 (2) establishing regional planning and
97-13 resource-sharing partnerships; and
97-14 (3) facilitating the leveraging of available local,
97-15 state, and federal funds.
97-16 (c) A regional development coordinator shall:
97-17 (1) gather and manage data about affordable housing
97-18 and community development needs in the uniform state service region
97-19 the coordinator represents by:
97-20 (A) identifying and working with regional
97-21 partners;
97-22 (B) using a variety of data resources,
97-23 including:
97-24 (i) the United States Census Bureau;
97-25 (ii) the United States Department of
97-26 Housing and Urban Development;
97-27 (iii) the Texas State Data Center;
98-1 (iv) the Texas Real Estate Research
98-2 Center; and
98-3 (v) the office of the comptroller, the
98-4 Texas Department of Economic Development, and other state agencies;
98-5 (C) developing an analysis of the region's
98-6 affordable housing and community development needs based on the
98-7 data gathered and local and regional input; and
98-8 (D) establishing a framework for sharing the
98-9 data with the regional partners;
98-10 (2) use the data described by Subdivision (1) to
98-11 facilitate the development of a regional plan and shall encourage
98-12 the consensus of the regional partners concerning the plan;
98-13 (3) identify statewide and national partners for
98-14 meeting the region's affordable housing and community development
98-15 needs, including the United States Department of Housing and Urban
98-16 Development, the United States Department of Agriculture Rural
98-17 Development Texas, the Texas State Affordable Housing Corporation,
98-18 statewide nonprofit entities, banking associations, developer
98-19 associations, and foundations; and
98-20 (4) provide an information clearinghouse for the
98-21 region that facilitates planning and resource sharing by
98-22 identifying programs that leverage local, state, and federal
98-23 financial aid.
98-24 (d) In each uniform state service region, the regional
98-25 planning commission and other regional partners shall establish an
98-26 advisory committee consisting of representatives of two or more
98-27 regional partners that shall:
99-1 (1) advise the department regarding the affordable
99-2 housing and community development needs of that region;
99-3 (2) assist the department in:
99-4 (A) assigning priorities to the affordable
99-5 housing and community development needs of that region;
99-6 (B) identifying resources to address those
99-7 needs; and
99-8 (C) implementing the low income housing plan as
99-9 applied to that region; and
99-10 (3) request and gather from political subdivisions and
99-11 other appropriate entities any affordable housing and community
99-12 development plans that are relevant to the development of the
99-13 regional plan described by Subsection (c), including local plans,
99-14 regional plans from regional planning commissions, and plans
99-15 developed for the United States Department of Housing and Urban
99-16 Development consolidated planning process.
99-17 Sec. 2306.080. DATABASE INFORMATION SPECIALIST. The
99-18 director shall appoint a database information specialist. The
99-19 primary responsibility of the database information specialist is to
99-20 provide for the effective and efficient dissemination to the public
99-21 of information related to affordable housing and community
99-22 development in a form that is accessible, widely available, and
99-23 easily used.
99-24 ARTICLE 6
99-25 SECTION 6.01. Section 2306.111(c), Government Code, is
99-26 amended to read as follows:
99-27 (c) In administering federal housing funds provided to the
100-1 state under the Cranston-Gonzalez National Affordable Housing Act
100-2 (42 U.S.C. Section 12701 et seq.), the department shall expend at
100-3 least 95 percent of [give the highest priority to utilizing] these
100-4 funds for the benefit of non-participating small cities and rural
100-5 areas that do not qualify to receive funds under the
100-6 Cranston-Gonzalez National Affordable Housing Act directly from the
100-7 United States Department of Housing and Urban Development [unless
100-8 the department finds there is insufficient need and demand for
100-9 housing funds within these areas]. All funds not set aside under
100-10 this subsection shall be used for the benefit of persons with
100-11 disabilities who live in areas other than small cities and rural
100-12 areas.
100-13 ARTICLE 7
100-14 SECTION 7.01. Section 2306.223, Government Code, is amended
100-15 to read as follows:
100-16 Sec. 2306.223. CRITERIA FOR FINANCING HOUSING DEVELOPMENT OF
100-17 HOUSING SPONSOR. Notwithstanding any other provision of this
100-18 chapter, the department may not finance a housing development
100-19 undertaken by a housing sponsor under this chapter, unless the
100-20 department first determines that:
100-21 (1) the housing development is necessary to provide
100-22 needed decent, safe, and sanitary housing at rentals or prices that
100-23 individuals or families of low and very low income or families of
100-24 moderate income can afford;
100-25 (2) the housing sponsor undertaking the proposed
100-26 housing development will supply well-planned and well-designed
100-27 housing for individuals or families of low and very low income or
101-1 families of moderate income;
101-2 (3) the housing sponsor is financially responsible;
101-3 (4) the housing sponsor is not, or will not enter into
101-4 a contract for the proposed housing development with, a housing
101-5 developer that:
101-6 (A) is on the department's debarred list,
101-7 including any parts of that list that are derived from the debarred
101-8 list of the United States Department of Housing and Urban
101-9 Development;
101-10 (B) breached a contract with a public agency; or
101-11 (C) misrepresented to a subcontractor the extent
101-12 to which the developer has benefited from contracts or financial
101-13 assistance that has been awarded by a public agency, including the
101-14 scope of the developer's participation in contracts with the agency
101-15 and the amount of financial assistance awarded to the developer by
101-16 the agency;
101-17 (5) the financing of the housing development is a
101-18 public purpose and will provide a public benefit; and
101-19 (6) [(5)] the housing development will be undertaken
101-20 within the authority granted by this chapter to the housing finance
101-21 division and the housing sponsor.
101-22 SECTION 7.02. The change in law made by this Act to Section
101-23 2306.223, Government Code, applies only to an application for
101-24 financing a housing development that is submitted to the Texas
101-25 Department of Housing and Community Affairs on or after the
101-26 effective date of this Act.
101-27 ARTICLE 8
102-1 SECTION 8.01. Subchapter DD, Chapter 2306, Government Code,
102-2 is amended to read as follows:
102-3 SUBCHAPTER DD. LOW INCOME HOUSING TAX CREDIT PROGRAM
102-4 Sec. 2306.6701. PURPOSE. The department shall administer the
102-5 low income housing tax credit program to:
102-6 (1) encourage the development and preservation of
102-7 appropriate types of rental housing for households that have
102-8 difficulty finding suitable, affordable rental housing in the
102-9 private marketplace;
102-10 (2) maximize the number of suitable, affordable
102-11 residential rental units added to the state's housing supply;
102-12 (3) prevent losses for any reason to the state's
102-13 supply of suitable, affordable residential rental units by enabling
102-14 the rehabilitation of rental housing or by providing other
102-15 preventive financial support under this subchapter; and
102-16 (4) provide for the participation of for-profit
102-17 organizations and provide for and encourage the participation of
102-18 nonprofit organizations in the acquisition, development, and
102-19 operation of affordable housing developments in urban and rural
102-20 communities.
102-21 Sec. 2306.6702. DEFINITIONS. (a) In this subchapter:
102-22 (1) "Applicant" means any person or affiliate of a
102-23 person who files an application with the department requesting a
102-24 housing tax credit allocation.
102-25 (2) "Application" means an application filed with the
102-26 department by an applicant and includes any exhibits or other
102-27 supporting materials.
103-1 (3) "Application log" means a form containing at least
103-2 the information required by Section 2306.6709.
103-3 (4) "Application round" means the period beginning on
103-4 the date the department begins accepting applications and
103-5 continuing until all available housing tax credits are allocated,
103-6 but not extending past the last day of the calendar year.
103-7 (5) "At-risk development" means a development that:
103-8 (A) receives the benefit of a subsidy in the
103-9 form of a below-market interest rate loan, interest rate reduction,
103-10 rental subsidy, Section 8 housing assistance payment, rental
103-11 supplement payment, or rental assistance payment under the
103-12 following federal laws, as applicable:
103-13 (i) Sections 221(d)(3) and (5), National
103-14 Housing Act (12 U.S.C. Section 1715l);
103-15 (ii) Section 236, National Housing Act (12
103-16 U.S.C. Section 1715z-1);
103-17 (iii) Section 202, Housing Act of 1959 (12
103-18 U.S.C. Section 1701q);
103-19 (iv) Section 101, Housing and Urban
103-20 Development Act of 1965 (12 U.S.C. Section 1701s);
103-21 (v) the Section 8 Additional Assistance
103-22 Program for housing developments with HUD-Insured and HUD-Held
103-23 Mortgages administered by the United States Department of Housing
103-24 and Urban Development;
103-25 (vi) the Section 8 Housing Assistance
103-26 Program for the Disposition of HUD-Owned Projects administered by
103-27 the United States Department of Housing and Urban Development; or
104-1 (vii) Sections 514, 515, and 516, Housing
104-2 Act of 1949 (42 U.S.C. Sections 1484, 1485, and 1486); and
104-3 (B) is subject to the following conditions:
104-4 (i) the stipulation to maintain
104-5 affordability in the contract granting the subsidy is nearing
104-6 expiration; or
104-7 (ii) the federally insured mortgage on the
104-8 development is eligible for prepayment or is nearing the end of its
104-9 term.
104-10 (6) "Development" means a proposed qualified low
104-11 income housing project, as defined by Section 42(g), Internal
104-12 Revenue Code of 1986 (26 U.S.C. Section 42(g)), that consists of
104-13 one or more buildings containing multiple units, that is financed
104-14 under a common plan, and that is owned by the same person for
104-15 federal tax purposes, including a project consisting of multiple
104-16 buildings that:
104-17 (A) are located on scattered sites; and
104-18 (B) contain only rent-restricted units.
104-19 (7) "Development owner" means any person or affiliate
104-20 of a person who owns or proposes a development or expects to
104-21 acquire control of a development under a purchase contract approved
104-22 by the department.
104-23 (8) "Housing tax credit" means a tax credit allocated
104-24 under the low income housing tax credit program.
104-25 (9) "Land use restriction agreement" means an
104-26 agreement between the department, the development owner, and the
104-27 development owner's successors in interest that encumbers the
105-1 development with respect to the requirements of this subchapter and
105-2 the requirements of Section 42, Internal Revenue Code of 1986 (26
105-3 U.S.C. Section 42).
105-4 (10) "Qualified allocation plan" means a plan adopted
105-5 by the board under this subchapter that:
105-6 (A) provides the threshold, scoring, and
105-7 underwriting criteria based on housing priorities of the department
105-8 that are appropriate to local conditions;
105-9 (B) gives preference in housing tax credit
105-10 allocations to developments that, as compared to the other
105-11 developments:
105-12 (i) when practicable and feasible based on
105-13 available funding sources, serve the lowest income tenants; and
105-14 (ii) are affordable to qualified tenants
105-15 for the longest economically feasible period; and
105-16 (C) provides a procedure for the department, the
105-17 department's agent, or another private contractor of the department
105-18 to use in monitoring compliance with the qualified allocation plan
105-19 and this subchapter.
105-20 (11) "Related party" means the following individuals
105-21 or entities:
105-22 (A) the brothers, sisters, spouse, ancestors,
105-23 and descendants of a person within the third degree of
105-24 consanguinity, as determined by Chapter 573;
105-25 (B) a person and a corporation, if the person
105-26 owns more than 50 percent of the outstanding stock of the
105-27 corporation;
106-1 (C) two or more corporations that are connected
106-2 through stock ownership with a common parent possessing more than
106-3 50 percent of:
106-4 (i) the total combined voting power of all
106-5 classes of stock of each of the corporations that can vote;
106-6 (ii) the total value of shares of all
106-7 classes of stock of each of the corporations; or
106-8 (iii) the total value of shares of all
106-9 classes of stock of at least one of the corporations, excluding, in
106-10 computing that voting power or value, stock owned directly by the
106-11 other corporation;
106-12 (D) a grantor and fiduciary of any trust;
106-13 (E) a fiduciary of one trust and a fiduciary of
106-14 another trust, if the same person is a grantor of both trusts;
106-15 (F) a fiduciary of a trust and a beneficiary of
106-16 the trust;
106-17 (G) a fiduciary of a trust and a corporation if
106-18 more than 50 percent of the outstanding stock of the corporation is
106-19 owned by or for:
106-20 (i) the trust; or
106-21 (ii) a person who is a grantor of the
106-22 trust;
106-23 (H) a person or organization and an organization
106-24 that is tax-exempt under Section 501(a), Internal Revenue Code of
106-25 1986 (26 U.S.C. Section 501), and that is controlled by that person
106-26 or the person's family members or by that organization;
106-27 (I) a corporation and a partnership or joint
107-1 venture if the same persons own more than:
107-2 (i) 50 percent of the outstanding stock of
107-3 the corporation; and
107-4 (ii) 50 percent of the capital interest or
107-5 the profits' interest in the partnership or joint venture;
107-6 (J) an S corporation and another S corporation
107-7 if the same persons own more than 50 percent of the outstanding
107-8 stock of each corporation;
107-9 (K) an S corporation and a C corporation if the
107-10 same persons own more than 50 percent of the outstanding stock of
107-11 each corporation;
107-12 (L) a partnership and a person or organization
107-13 owning more than 50 percent of the capital interest or the profits'
107-14 interest in that partnership; or
107-15 (M) two partnerships, if the same person or
107-16 organization owns more than 50 percent of the capital interests or
107-17 profits' interests.
107-18 (12) "Rural area" means an area that is located:
107-19 (A) outside the boundaries of a primary
107-20 metropolitan statistical area or a metropolitan statistical area;
107-21 (B) within the boundaries of a primary
107-22 metropolitan statistical area or a metropolitan statistical area,
107-23 if the statistical area has a population of 20,000 or less and does
107-24 not share a boundary with an urban area; or
107-25 (C) in an area that is eligible for funding by
107-26 the Texas Rural Development Office of the United States Department
107-27 of Agriculture.
108-1 (13) "Rural development agency" means the state agency
108-2 designated by the legislature as primarily responsible for rural
108-3 area development in the state.
108-4 (14) "Set-aside" means a reservation of a portion of
108-5 the available housing tax credits to provide financial support for
108-6 specific types of housing or geographic locations or serve specific
108-7 types of applicants as permitted by the qualified allocation plan
108-8 on a priority basis.
108-9 (15) "Threshold criteria" means the criteria used to
108-10 determine whether the development satisfies the minimum level of
108-11 acceptability for consideration established in the department's
108-12 qualified allocation plan.
108-13 (16) "Unit" means any residential rental unit in a
108-14 development consisting of an accommodation, including a single room
108-15 used as an accommodation on a non-transient basis, that contains
108-16 separate and complete physical facilities and fixtures for living,
108-17 sleeping, eating, cooking, and sanitation.
108-18 (b) For purposes of Subsection (a)(11), the constructive
108-19 ownership provisions of Section 267, Internal Revenue Code of 1986
108-20 (26 U.S.C. Section 267), apply. The board may lower in the
108-21 qualified allocation plan the percentages described by Subsection
108-22 (a)(11).
108-23 Sec. 2306.67021. APPLICABILITY OF SUBCHAPTER. Except as
108-24 provided by Section 2306.6703, this subchapter does not apply to
108-25 the allocation of housing tax credits to developments financed
108-26 through the private activity bond program.
108-27 Sec. 2306.67022. QUALIFIED ALLOCATION PLAN; MANUAL. The
109-1 board annually shall adopt a qualified allocation plan and a
109-2 corresponding manual to provide information regarding the
109-3 administration of and eligibility for the low income housing tax
109-4 credit program.
109-5 Sec. 2306.6703. INELIGIBILITY FOR CONSIDERATION. An
109-6 application is ineligible for consideration under the low income
109-7 housing tax credit program if:
109-8 (1) at the time of application or at any time during
109-9 the two-year period preceding the date the application round
109-10 begins, the applicant or a related party is or has been:
109-11 (A) a member of the board; or
109-12 (B) the director, a deputy director, the
109-13 director of housing programs, or the low income housing tax credit
109-14 program manager employed by the department; or
109-15 (2) the applicant proposes to replace in less than 15
109-16 years any private activity bond financing of the development
109-17 described by the application, unless:
109-18 (A) the applicant proposes to maintain for a
109-19 period of 30 years or more 100 percent of the development units
109-20 supported by low income housing tax credits as rent-restricted and
109-21 exclusively for occupancy by individuals and families earning not
109-22 more than 50 percent of the area median income, adjusted for family
109-23 size; and
109-24 (B) at least one-third of all the units in the
109-25 development are public housing units or Section 8 project-based
109-26 units.
109-27 Sec. 2306.6704. PREAPPLICATION PROCESS. (a) To prevent
110-1 unnecessary filing costs, the department by rule shall establish a
110-2 voluntary preapplication process to enable a preliminary assessment
110-3 of an application proposed for filing under this subchapter.
110-4 (b) The department shall award in the application evaluation
110-5 process described by Section 2306.6710 an appropriate number of
110-6 points as an incentive for participation in the preapplication
110-7 process established under this section.
110-8 (c) The department shall reject and return to the applicant
110-9 any application assessed by the department under this section that
110-10 fails to satisfy the threshold criteria required by the board in
110-11 the qualified allocation plan.
110-12 (d) If feasible under Section 2306.67041, an application
110-13 under this section must be submitted electronically.
110-14 Sec. 2306.67041. ON-LINE APPLICATION SYSTEM. (a) The
110-15 department and the Department of Information Resources shall
110-16 cooperate to evaluate the feasibility of an on-line application
110-17 system for the low income housing tax credit program to provide the
110-18 following functions:
110-19 (1) filing of preapplications and applications
110-20 on-line;
110-21 (2) posting of on-line preapplication or application
110-22 status and the application log detailing the status of, and
110-23 department's evaluations and scores pertaining to, those
110-24 applications; and
110-25 (3) posting of comments from applicants and the public
110-26 regarding a preapplication or application.
110-27 (b) The department shall determine the process for allowing
111-1 access to on-line preapplications and applications, information
111-2 related to those applications, and department decisions relating to
111-3 those applications.
111-4 (c) In the application cycle following the date any on-line
111-5 application system becomes operational, the department shall
111-6 require use of the system for submission of preapplications and
111-7 applications under this subchapter.
111-8 (d) The department shall publish a status report on the
111-9 implementation of the on-line application on the department's
111-10 website not later than January 1, 2002.
111-11 (e) Before the implementation of the on-line application
111-12 system, the department may implement the requirements of Section
111-13 2306.6717 in any manner the department considers appropriate.
111-14 Sec. 2306.6705. GENERAL APPLICATION REQUIREMENTS. An
111-15 application must contain at a minimum the following written,
111-16 detailed information in a form prescribed by the board:
111-17 (1) a description of:
111-18 (A) the financing plan for the development,
111-19 including any nontraditional financing arrangements;
111-20 (B) the use of funds with respect to the
111-21 development;
111-22 (C) the funding sources for the development,
111-23 including:
111-24 (i) construction, permanent, and bridge
111-25 loans; and
111-26 (ii) rents, operating subsidies, and
111-27 replacement reserves; and
112-1 (D) the commitment status of the funding sources
112-2 for the development;
112-3 (2) if syndication costs are included in the eligible
112-4 basis, a justification of the syndication costs for each cost
112-5 category by an attorney or accountant specializing in tax matters;
112-6 (3) from a syndicator or a financial consultant of the
112-7 applicant, an estimate of the amount of equity dollars expected to
112-8 be raised for the development in conjunction with the amount of
112-9 housing tax credits requested for allocation to the applicant,
112-10 including:
112-11 (A) pay-in schedules; and
112-12 (B) syndicator consulting fees and other
112-13 syndication costs;
112-14 (4) if rental assistance, an operating subsidy, or an
112-15 annuity is proposed for the development, any related contract or
112-16 other agreement securing those funds and an identification of:
112-17 (A) the source and annual amount of the funds;
112-18 (B) the number of units receiving the funds; and
112-19 (C) the term and expiration date of the contract
112-20 or other agreement;
112-21 (5) if the development is located within the
112-22 boundaries of a political subdivision with a zoning ordinance,
112-23 evidence in the form of a letter from the chief executive officer
112-24 of the political subdivision or from another local official with
112-25 jurisdiction over zoning matters that states that:
112-26 (A) the development is permitted under the
112-27 provisions of the ordinance that apply to the location of the
113-1 development; or
113-2 (B) the applicant is in the process of seeking
113-3 the appropriate zoning and has signed and provided to the political
113-4 subdivision a release agreeing to hold the political subdivision
113-5 and all other parties harmless in the event that the appropriate
113-6 zoning is denied;
113-7 (6) if an occupied development is proposed for
113-8 rehabilitation:
113-9 (A) an explanation of the process used to notify
113-10 and consult with the tenants in preparing the application;
113-11 (B) a relocation plan outlining:
113-12 (i) relocation requirements; and
113-13 (ii) a budget with an identified funding
113-14 source; and
113-15 (C) if applicable, evidence that the relocation
113-16 plan has been submitted to the appropriate local agency;
113-17 (7) a certification of the applicant's compliance with
113-18 appropriate state and federal laws, as required by other state law
113-19 or by the board; and
113-20 (8) any other information required by the board in the
113-21 qualified allocation plan.
113-22 Sec. 2306.6706. ADDITIONAL APPLICATION REQUIREMENT:
113-23 NONPROFIT SET-ASIDE ALLOCATION. (a) In addition to the information
113-24 required by Section 2306.6705, an application for a housing tax
113-25 credit allocation from the nonprofit set-aside, as defined by
113-26 Section 42(h)(5), Internal Revenue Code of 1986 (26 U.S.C. Section
113-27 42(h)(5)), must contain the following written, detailed information
114-1 with respect to each development owner and each general partner of
114-2 a development owner:
114-3 (1) Internal Revenue Service documentation of
114-4 designation as a Section 501(c)(3) or 501(c)(4) organization;
114-5 (2) evidence that one of the exempt purposes of the
114-6 nonprofit organization is to provide low income housing;
114-7 (3) a description of the nonprofit organization's
114-8 participation in the construction or rehabilitation of the
114-9 development and in the ongoing operations of the development;
114-10 (4) evidence that the nonprofit organization prohibits
114-11 a member of its board of directors, other than a chief staff member
114-12 serving concurrently as a member of the board, from receiving
114-13 material compensation for service on the board;
114-14 (5) a third-party legal opinion stating that the
114-15 nonprofit organization is not affiliated with or controlled by a
114-16 for-profit organization and the basis for that opinion;
114-17 (6) a copy of the nonprofit organization's most recent
114-18 audited financial statement;
114-19 (7) a list of the names and home addresses of members
114-20 of the board of directors of the nonprofit organization;
114-21 (8) a third-party legal opinion stating that the
114-22 nonprofit organization is eligible under Subsection (b) for a
114-23 housing tax credit allocation from the nonprofit set-aside and the
114-24 basis for that opinion; and
114-25 (9) evidence that a majority of the members of the
114-26 nonprofit organization's board of directors principally reside:
114-27 (A) in this state, if the development is located
115-1 in a rural area; or
115-2 (B) not more than 90 miles from the development
115-3 in the community in which the development is located, if the
115-4 development is not located in a rural area.
115-5 (b) To be eligible for a housing tax credit allocation from
115-6 the nonprofit set-aside, a nonprofit organization must:
115-7 (1) control a majority of the development;
115-8 (2) if the organization's application is filed on
115-9 behalf of a limited partnership, be the managing general partner;
115-10 and
115-11 (3) otherwise meet the requirements of Section
115-12 42(h)(5), Internal Revenue Code of 1986 (26 U.S.C. Section
115-13 42(h)(5)).
115-14 Sec. 2306.6707. ADDITIONAL APPLICATION REQUIREMENT:
115-15 DISCLOSURE OF INTERESTED PERSONS. (a) The applicant must disclose
115-16 in the application the names of any persons, including affiliates
115-17 of those persons and related parties, providing developmental or
115-18 operational services to the development, including:
115-19 (1) a development owner;
115-20 (2) an architect;
115-21 (3) an attorney;
115-22 (4) a tax professional;
115-23 (5) a property management company;
115-24 (6) a consultant;
115-25 (7) a market analyst;
115-26 (8) a tenant services provider;
115-27 (9) a syndicator;
116-1 (10) a real estate broker or agent or a person
116-2 receiving a fee in connection with services usually provided by a
116-3 real estate broker or agent;
116-4 (11) at the time the application is submitted, the
116-5 owners of the property on which the development is located;
116-6 (12) a developer; and
116-7 (13) a builder or general contractor.
116-8 (b) For each person described by Subsection (a), the
116-9 application must disclose any company name, company contact person,
116-10 address, and telephone number.
116-11 Sec. 2306.6708. APPLICATION CHANGES OR SUPPLEMENTS. (a)
116-12 Except as provided by Subsection (b), an applicant may not change
116-13 or supplement an application in any manner after the filing
116-14 deadline.
116-15 (b) This section does not prohibit an applicant from:
116-16 (1) at the request of the department, clarifying
116-17 information in the application or correcting administrative
116-18 deficiencies in the application; or
116-19 (2) amending an application after allocation of
116-20 housing tax credits in the manner provided by Section 2306.6712.
116-21 Sec. 2306.6709. APPLICATION LOG. (a) In a form prescribed
116-22 by the department, the department shall maintain for each
116-23 application an application log that tracks the application from the
116-24 date of its submission.
116-25 (b) The application log must contain at least the following
116-26 information:
116-27 (1) the names of the applicant and related parties;
117-1 (2) the physical location of the development,
117-2 including the relevant region of the state;
117-3 (3) the amount of housing tax credits requested for
117-4 allocation by the department to the applicant;
117-5 (4) any set-aside category under which the application
117-6 is filed;
117-7 (5) the score of the application in each scoring
117-8 category adopted by the department under the qualified allocation
117-9 plan;
117-10 (6) any decision made by the department or board
117-11 regarding the application, including the department's decision
117-12 regarding whether to underwrite the application and the board's
117-13 decision regarding whether to allocate housing tax credits to the
117-14 development;
117-15 (7) the names of persons making the decisions
117-16 described by Subdivision (6), including the names of department
117-17 staff scoring and underwriting the application, to be recorded next
117-18 to the description of the applicable decision;
117-19 (8) the amount of housing tax credits allocated to the
117-20 development; and
117-21 (9) a dated record and summary of any contact between
117-22 the department staff, the board, and the applicant or any related
117-23 parties.
117-24 Sec. 2306.6710. EVALUATION AND UNDERWRITING OF APPLICATIONS.
117-25 (a) In evaluating an application, the department shall determine
117-26 whether the application satisfies the threshold criteria required
117-27 by the board in the qualified allocation plan. The department
118-1 shall reject and return to the applicant any application that fails
118-2 to satisfy the threshold criteria.
118-3 (b) If an application satisfies the threshold criteria, the
118-4 department shall score and rank the application using a point
118-5 system based on criteria that are adapted to regional market
118-6 conditions and adopted by the department, including criteria:
118-7 (1) regarding:
118-8 (A) the income levels of tenants of the
118-9 development;
118-10 (B) the rent levels of the units;
118-11 (C) the period of guaranteed affordability for
118-12 low income tenants;
118-13 (D) the cost by square foot of the development;
118-14 (E) the size, quality, and amenities of the
118-15 units;
118-16 (F) the services to be provided to tenants of
118-17 the development;
118-18 (G) the commitment of development funding by
118-19 local political subdivisions that enables additional units for
118-20 individuals and families of very low income; and
118-21 (H) the level of community support for the
118-22 application, evaluated on the basis of written statements of
118-23 support from local and state elected officials representing
118-24 constituents in areas that include the location of the development;
118-25 and
118-26 (2) imposing penalties on applicants or affiliates who
118-27 have requested extensions of department deadlines relating to
119-1 developments supported by housing tax credit allocations made in
119-2 the application round preceding the current round.
119-3 (c) The department shall publish in the qualified allocation
119-4 plan details of the scoring system used by the department to score
119-5 applications.
119-6 (d) The department shall underwrite the applications ranked
119-7 under Subsection (b) beginning with the applications with the
119-8 highest scores in each region described by Section 2306.111(d) and
119-9 in each set-aside category described in the qualified allocation
119-10 plan. Based on application rankings, the department shall continue
119-11 to underwrite applications until the department has processed
119-12 enough applications satisfying the department's underwriting
119-13 criteria to enable the allocation of all available housing tax
119-14 credits according to regional allocation goals and set-aside
119-15 categories. To enable the board to establish an applications
119-16 waiting list under Section 2306.6711, the department shall
119-17 underwrite as many additional applications as the board considers
119-18 necessary to ensure that all available housing tax credits are
119-19 allocated within the period required by law.
119-20 (e) In adopting criteria for scoring and underwriting
119-21 applications for purposes of housing tax credit allocations, the
119-22 department shall attach, consistent with Section 42, Internal
119-23 Revenue Code of 1986 (26 U.S.C. Section 42), the most weight to
119-24 criteria that will:
119-25 (1) result in an allocation of housing tax credits for
119-26 developments serving the lowest income tenants; and
119-27 (2) produce the greatest number of high quality units
120-1 committed to remaining affordable to qualified tenants for extended
120-2 periods.
120-3 Sec. 2306.6711. ALLOCATION OF HOUSING TAX CREDITS. (a) The
120-4 director shall provide the application scores to the board before
120-5 the 30th day preceding the date the board begins to issue
120-6 commitments for housing tax credits in the allocation round.
120-7 (b) Not later than the deadline specified in the qualified
120-8 allocation plan, the board shall issue commitments for available
120-9 housing tax credits based on the application evaluation process
120-10 provided by Section 2306.6710. The board may not allocate to an
120-11 applicant housing tax credits in any unnecessary amount, as
120-12 determined by the department's underwriting policy and by federal
120-13 law, and in any event may not allocate to the applicant housing tax
120-14 credits in an amount greater than $1.6 million in a single
120-15 application round.
120-16 (c) Concurrently with the initial issuance of commitments
120-17 for housing tax credits under Subsection (b), the board shall
120-18 establish a waiting list of additional applications ranked by score
120-19 in descending order of priority based on set-aside categories and
120-20 regional allocation goals.
120-21 (d) The board shall issue commitments for housing tax
120-22 credits with respect to applications on the waiting list as
120-23 additional credits become available.
120-24 (e) Not later than the 120th day after the date of the
120-25 initial issuance of commitments for housing tax credits under
120-26 Subsection (b), the department shall provide to an applicant who
120-27 did not receive a commitment under that subsection an opportunity
121-1 to meet and discuss with the department the application's
121-2 deficiencies and scoring.
121-3 Sec. 2306.6712. AMENDMENT OF APPLICATION SUBSEQUENT TO
121-4 ALLOCATION BY BOARD. (a) If a proposed modification would
121-5 materially alter a development approved for an allocation of a
121-6 housing tax credit, the department shall require the applicant to
121-7 file a formal, written amendment to the application on a form
121-8 prescribed by the department.
121-9 (b) The director shall require the department staff assigned
121-10 to underwrite applications to evaluate the amendment and provide an
121-11 analysis and written recommendation to the board. The appropriate
121-12 monitor under Section 2306.6719 shall also provide to the board an
121-13 analysis and written recommendation regarding the amendment.
121-14 (c) The board must vote on whether to approve the amendment.
121-15 The board by vote may reject an amendment and, if appropriate,
121-16 rescind the allocation of housing tax credits and reallocate the
121-17 credits to other applicants on the waiting list required by Section
121-18 2306.6711 if the board determines that the modification proposed in
121-19 the amendment:
121-20 (1) would materially alter the development in a
121-21 negative manner; or
121-22 (2) would have adversely affected the selection of the
121-23 application in the application round.
121-24 (d) Material alteration of a development includes:
121-25 (1) a significant modification of the site plan;
121-26 (2) a modification of the number of units or bedroom
121-27 mix of units;
122-1 (3) a substantive modification of the scope of tenant
122-2 services;
122-3 (4) a reduction of three percent or more in the square
122-4 footage of the units or common areas;
122-5 (5) a significant modification of the architectural
122-6 design of the development;
122-7 (6) a modification of the residential density of the
122-8 development of at least five percent; and
122-9 (7) any other modification considered significant by
122-10 the board.
122-11 (e) In evaluating the amendment under this subsection, the
122-12 department staff shall consider whether the need for the
122-13 modification proposed in the amendment was:
122-14 (1) reasonably foreseeable by the applicant at the
122-15 time the application was submitted; or
122-16 (2) preventable by the applicant.
122-17 (f) This section shall be administered in a manner that is
122-18 consistent with Section 42, Internal Revenue Code of 1986 (26
122-19 U.S.C. Section 42).
122-20 Sec. 2306.6713. HOUSING TAX CREDIT AND OWNERSHIP TRANSFERS.
122-21 (a) An applicant may not transfer an allocation of housing tax
122-22 credits or ownership of a development supported with an allocation
122-23 of housing tax credits to any person other than an affiliate unless
122-24 the applicant obtains the director's prior, written approval of the
122-25 transfer.
122-26 (b) The director may not unreasonably withhold approval of
122-27 the transfer.
123-1 (c) An applicant seeking director approval of a transfer and
123-2 the proposed transferee must provide to the department a copy of
123-3 any applicable agreement between the parties to the transfer,
123-4 including any third-party agreement with the department.
123-5 (d) On request, an applicant seeking director approval of a
123-6 transfer must provide to the department:
123-7 (1) a list of the names of transferees and related
123-8 parties; and
123-9 (2) detailed information describing the experience and
123-10 financial capacity of transferees and related parties.
123-11 (e) The development owner shall certify to the director that
123-12 the tenants in the development have been notified in writing of the
123-13 transfer before the 30th day preceding the date of submission of
123-14 the transfer request to the department.
123-15 (f) Not later than the fifth working day after the date the
123-16 department receives all necessary information under this section,
123-17 the department shall conduct a qualifications review of a
123-18 transferee to determine:
123-19 (1) the transferee's past compliance with all aspects
123-20 of the low income housing tax credit program, including land use
123-21 restriction agreements; and
123-22 (2) the sufficiency of the transferee's experience
123-23 with developments supported with housing tax credit allocations.
123-24 Sec. 2306.6714. AT-RISK DEVELOPMENT SET-ASIDE. (a) The
123-25 department shall set aside for at-risk developments not less than
123-26 15 percent of the housing tax credits available for allocation in
123-27 the calendar year.
124-1 (b) Any amount of housing tax credits set aside under this
124-2 section that remains after the initial allocation of housing tax
124-3 credits is available for allocation to any eligible applicant as
124-4 provided by the qualified allocation plan.
124-5 Sec. 2306.6715. APPEAL. (a) In a form prescribed by the
124-6 department in the qualified allocation plan, an applicant may
124-7 appeal the following decisions made by the department in the
124-8 application evaluation process provided by Section 2306.6710:
124-9 (1) a determination regarding the application's
124-10 satisfaction of threshold and underwriting criteria;
124-11 (2) the scoring of the application; and
124-12 (3) a recommendation as to the amount of housing tax
124-13 credits to be allocated to the application.
124-14 (b) An applicant may not appeal a decision made under
124-15 Section 2306.6710 regarding an application filed by another
124-16 applicant.
124-17 (c) An applicant must file a written appeal authorized by
124-18 this section with the department not later than the seventh day
124-19 after the date the department publishes the results of the
124-20 application evaluation process provided by Section 2306.6710. In
124-21 the appeal, the applicant must specifically identify the
124-22 applicant's grounds for appeal, based on the original application
124-23 and additional documentation filed with the original application.
124-24 (d) The director shall respond in writing to the appeal not
124-25 later than the 14th day after the date of receipt of the appeal. If
124-26 the applicant is not satisfied with the director's response to the
124-27 appeal, the applicant may appeal directly in writing to the board,
125-1 provided that an appeal filed with the board under this subsection
125-2 must be received by the board before:
125-3 (1) the seventh day preceding the date of the board
125-4 meeting at which the relevant allocation decision is expected to be
125-5 made; or
125-6 (2) the third day preceding the date of the board
125-7 meeting described by Subdivision (1), if the director does not
125-8 respond to the appeal before the date described by Subdivision (1).
125-9 (e) Board review of an appeal under Subsection (d) is based
125-10 on the original application and additional documentation filed with
125-11 the original application. The board may not review any information
125-12 not contained in or filed with the original application. The
125-13 decision of the board regarding the appeal is final.
125-14 Sec. 2306.6716. FEES. (a) A fee charged by the department
125-15 for filing an application may not be excessive and must reflect the
125-16 department's actual costs in processing the application, providing
125-17 copies of documents to persons connected with the application
125-18 process, and making appropriate information available to the public
125-19 through the department's website.
125-20 (b) The department shall publish not later than July 1 of
125-21 each year a schedule of application fees that specifies the amount
125-22 to be charged at each stage of the application process.
125-23 (c) In accordance with the fee schedule, the department
125-24 shall refund the balance of any fees collected for an application
125-25 that is withdrawn by the applicant or that is not fully processed
125-26 by the department. The department must provide the refund to the
125-27 applicant not later than the 30th day after the date the last
126-1 official action is taken with respect to the application.
126-2 (d) The department shall develop a sliding scale fee
126-3 schedule for applications that encourages increased participation
126-4 by community housing development organizations in the low income
126-5 housing tax credit program.
126-6 Sec. 2306.6717. PUBLIC INFORMATION AND HEARINGS. (a)
126-7 Subject to Section 2306.67041, the department shall make the
126-8 following items available on the department's website:
126-9 (1) as soon as practicable, any proposed application
126-10 submitted through the preapplication process established by this
126-11 subchapter;
126-12 (2) before the 30th day preceding the date of the
126-13 relevant board allocation decision, except as provided by
126-14 Subdivision (3), the entire application, including all supporting
126-15 documents and exhibits, the application log, a scoring sheet
126-16 providing details of the application score, and any other document
126-17 relating to the processing of the application;
126-18 (3) not later than the third working day after the
126-19 date of the relevant determination, the results of each stage of
126-20 the application process, including the results of the application
126-21 scoring and underwriting phases and the allocation phase;
126-22 (4) before the 15th day preceding the date of board
126-23 action on the amendment, notice of an amendment under Section
126-24 2306.6712 and the recommendation of the director and monitor
126-25 regarding the amendment; and
126-26 (5) an appeal filed with the department or board under
126-27 Section 2306.6715 or 2306.6721 and any other document relating to
127-1 the processing of the appeal.
127-2 (b) The department shall provide information regarding the
127-3 low income housing tax credit program, including notice regarding
127-4 public hearings, board meetings, and the opening and closing dates
127-5 for applications, to:
127-6 (1) local housing departments;
127-7 (2) newspapers;
127-8 (3) nonprofit organizations;
127-9 (4) on-site property managers of occupied developments
127-10 that are the subject of applications; and
127-11 (5) any other interested persons, including community
127-12 groups, who request the information.
127-13 (c) The department shall hold at least three public hearings
127-14 in different regions of the state to receive public comments on
127-15 applications and on other issues relating to the low income housing
127-16 tax credit program.
127-17 (d) Notwithstanding any other provision of this section, the
127-18 department may treat the financial statements of any applicant as
127-19 confidential and may elect not to disclose those statements to the
127-20 public.
127-21 Sec. 2306.6718. ELECTED OFFICIALS. (a) The department shall
127-22 provide written notice of the filing of an application to the
127-23 following elected officials:
127-24 (1) members of the legislature who represent the
127-25 community containing the development described in the application;
127-26 and
127-27 (2) the chief executive officer of the political
128-1 subdivision containing the development described in the
128-2 application.
128-3 (b) The department shall provide the elected officials with
128-4 an opportunity to comment on the application during the application
128-5 evaluation process provided by Section 2306.6710 and shall consider
128-6 those comments in evaluating applications under that section.
128-7 (c) A member of the legislature who represents the community
128-8 containing the development may hold a community meeting at which
128-9 the department shall provide appropriate representation.
128-10 (d) If the department receives written notice from the mayor
128-11 or county judge of an affected municipality or county opposing an
128-12 application, the department must contact the mayor or county judge
128-13 and offer to conduct a physical inspection of the development site
128-14 and consult with the mayor or county judge before the application
128-15 is scored.
128-16 Sec. 2306.6719. MONITORING OF COMPLIANCE. (a) The
128-17 department may contract with an independent third party to monitor
128-18 a development during its construction or rehabilitation and during
128-19 its operation for compliance with:
128-20 (1) any conditions imposed by the department in
128-21 connection with the allocation of housing tax credits to the
128-22 development; and
128-23 (2) appropriate state and federal laws, as required by
128-24 other state law or by the board.
128-25 (b) The department may assign department staff other than
128-26 housing tax credit division staff to perform the relevant
128-27 monitoring functions required by this section in the construction
129-1 or rehabilitation phase of a development.
129-2 Sec. 2306.6720. ENFORCEABILITY OF APPLICANT REPRESENTATIONS.
129-3 Each representation made by an applicant to secure a housing tax
129-4 credit allocation is enforceable by the department and the tenants
129-5 of the development supported with the allocation.
129-6 Sec. 2306.6721. DEBARMENT FROM PROGRAM PARTICIPATION. (a)
129-7 The board by rule shall adopt a policy providing for the debarment
129-8 of a person from participation in the low income housing tax credit
129-9 program as described by this section.
129-10 (b) The department may debar a person from participation in
129-11 the program on the basis of the person's past failure to comply
129-12 with any condition imposed by the department in connection with the
129-13 allocation of housing tax credits.
129-14 (c) The department shall debar a person from participation
129-15 in the program if the person:
129-16 (1) materially violates any condition imposed by the
129-17 department in connection with the allocation of housing tax
129-18 credits;
129-19 (2) is debarred from participation in federal housing
129-20 programs by the United States Department of Housing and Urban
129-21 Development; or
129-22 (3) is in material noncompliance with or has
129-23 repeatedly violated a land use restriction agreement regarding a
129-24 development supported with a housing tax credit allocation.
129-25 (d) A person debarred by the department from participation
129-26 in the program may appeal the person's debarment to the board.
129-27 Sec. 2306.6722. DEVELOPMENT ACCESSIBILITY. Any development
130-1 supported with a housing tax credit allocation shall comply with
130-2 the accessibility standards that are required under Section 504,
130-3 Rehabilitation Act of 1973 (29 U.S.C. Section 794), and specified
130-4 under 24 C.F.R. Part 8, Subpart C.
130-5 Sec. 2306.6723. DISCRIMINATION AGAINST PERSONS RECEIVING
130-6 FEDERAL HOUSING ASSISTANCE PROHIBITED. The department shall
130-7 prohibit a development supported with a housing tax credit
130-8 allocation from:
130-9 (1) excluding an individual or family from admission
130-10 to the development because the individual or family participates in
130-11 the housing choice voucher program under Section 8, United States
130-12 Housing Act of 1937 (42 U.S.C. Section 1437f); and
130-13 (2) using a financial or minimum income standard for
130-14 an individual or family participating in the voucher program
130-15 described by Subdivision (1) that requires the individual or family
130-16 to have a monthly income of more than 2-1/2 times the individual's
130-17 or family's share of the total monthly rent payable to the
130-18 development owner.
130-19 Sec. 2306.6724. COORDINATION WITH RURAL DEVELOPMENT AGENCY.
130-20 (a) The department shall jointly administer with the rural
130-21 development agency any set-aside for rural areas to:
130-22 (1) ensure the maximum use and optimum geographic
130-23 distribution of housing tax credits in rural areas; and
130-24 (2) provide for information sharing, efficient
130-25 procedures, and fulfillment of development compliance requirements
130-26 in rural areas.
130-27 (b) The rural development agency shall assist in developing
131-1 all threshold, scoring, and underwriting criteria applied to
131-2 applications eligible for the rural area set-aside. The criteria
131-3 must be approved by that agency.
131-4 (c) To ensure that the rural area set-aside receives a
131-5 sufficient volume of eligible applications, the department shall
131-6 fund and, with the rural development agency, shall jointly
131-7 implement outreach, training, and rural area capacity building
131-8 efforts as directed by the rural development agency.
131-9 (d) The department and the rural development agency shall
131-10 jointly adjust the regional allocation of housing tax credits
131-11 described by Section 2306.111 to offset the under-utilization and
131-12 over-utilization of multifamily private activity bonds and other
131-13 housing resources in the different regions of the state.
131-14 (e) From application fees collected under this subchapter,
131-15 the department shall reimburse the rural development agency for any
131-16 costs incurred by the agency in carrying out the functions required
131-17 by this section.
131-18 Sec. 2306.6725 [2306.671]. DEADLINES FOR ALLOCATION OF LOW
131-19 INCOME HOUSING TAX CREDITS. (a) Not later than September 30
131-20 [November 15] of each year, the department shall prepare and submit
131-21 to the board for adoption the qualified allocation plan required by
131-22 federal law for use by the department in setting criteria and
131-23 priorities for the allocation of tax credits under the low income
131-24 housing tax credit program.
131-25 (b) The board shall adopt and submit to the governor the
131-26 qualified allocation plan not later than November 15 [January 31].
131-27 (c) The governor shall approve, reject, or modify and
132-1 approve the qualified allocation plan not later than December 1
132-2 [February 28].
132-3 (d) An applicant for a low income housing tax credit to be
132-4 issued a commitment during the initial allocation cycle in a
132-5 calendar year must submit an application to the department not
132-6 later than March 1 [May 15].
132-7 (e) The board shall review the recommendations of department
132-8 staff regarding applications and shall issue a list of approved
132-9 applications [issue a commitment for allocation for the initial
132-10 cycle of low income housing tax credits] each year in accordance
132-11 with the qualified allocation plan not later than June 30 [July
132-12 31].
132-13 (f) The board shall issue final commitments for allocations
132-14 of housing tax credits each year in accordance with the qualified
132-15 allocation plan not later than July 31.
132-16 Sec. 2306.6726 [2306.672]. SCORING OF APPLICATIONS. (a)
132-17 [The goal of the low income housing tax credit program is to
132-18 provide permanent affordable housing.] In allocating low income
132-19 housing tax credits, the department shall score each application
132-20 using a point system based on criteria adopted by the department
132-21 that are consistent with the department's housing goals, including
132-22 criteria addressing the ability of the proposed project to:
132-23 (1) provide quality social support services to
132-24 residents;
132-25 (2) demonstrate community and neighborhood support as
132-26 defined by the qualified allocation plan;
132-27 (3) consistent with sound underwriting practices and
133-1 when economically feasible, serve individuals and families of
133-2 extremely low income by leveraging private and state and federal
133-3 resources, including federal HOPE VI grants received through the
133-4 United States Department of Housing and Urban Development;
133-5 (4) serve traditionally underserved areas;
133-6 (5) remain affordable to qualified tenants for an
133-7 extended, economically feasible period; and
133-8 (6) comply with the accessibility standards that are
133-9 required under Section 504 of the Rehabilitation Act of 1973 (29
133-10 U.S.C. Section 794), and specified under 24 C.F.R. Part 8, Subpart
133-11 C. [The department shall publish in the qualified allocation plan
133-12 any discretionary factor that the department will consider in
133-13 scoring an application.]
133-14 (b) The department shall provide appropriate incentives as
133-15 determined through the qualified allocation plan to reward
133-16 applicants who agree to equip the property that is the basis of the
133-17 application with energy saving devices that meet the standards
133-18 established by the state energy conservation office or [If an
133-19 applicant meets the department's scoring and underwriting criteria,
133-20 the department shall add:]
133-21 [(1) five bonus points to the applicant's score if the
133-22 applicant agrees] to provide to a qualified nonprofit organization
133-23 or tenant organization a right of first refusal to purchase the
133-24 property [to which the tax credit applies] at the minimum price
133-25 provided in, and in accordance with the requirements of, Section
133-26 42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
133-27 42(i)(7))[; and]
134-1 [(2) two bonus points to the applicant's score if the
134-2 application is received within the first 10 days of the application
134-3 acceptance period].
134-4 (c) On [The department shall provide the score of each
134-5 application on each criterion to the board and the governor. The
134-6 results of the scoring shall be available to the public.]
134-7 [(d) Upon] awarding tax credit allocations, the board shall
134-8 document the reasons for each project's selection, including an
134-9 explanation of:
134-10 (1) all discretionary factors used in making its
134-11 determination; and
134-12 (2) the reasons for any decision that conflicts with
134-13 the recommendations of department staff under Section 2306.6751.
134-14 (d) For each scoring criterion, the department shall use a
134-15 range of points to evaluate the degree to which a proposed project
134-16 satisfies the criterion. The department may not award a number of
134-17 points for a scoring criterion that is disproportionate to the
134-18 degree to which a proposed project complies with that criterion.
134-19 Sec. 2306.6727 [2306.673]. SALE OF CERTAIN LOW INCOME
134-20 HOUSING TAX CREDIT PROPERTY. (a) Not later than two years before
134-21 the expiration of the compliance period, a recipient of a low
134-22 income housing tax credit who agreed to provide a right of first
134-23 refusal under Section 2306.6726 [2306.672(b)(1)] and who intends to
134-24 sell the property shall notify the department of the recipient's
134-25 intent to sell. The recipient shall notify qualified nonprofit
134-26 organizations and tenant organizations of the opportunity to
134-27 purchase the property.
135-1 (b) The recipient may:
135-2 (1) during the first six-month period after notifying
135-3 the department, negotiate or enter into a purchase agreement only
135-4 with a qualified nonprofit organization that is also a community
135-5 housing development organization as defined by the federal home
135-6 investment partnership program;
135-7 (2) during the second six-month period after notifying
135-8 the department, negotiate or enter into a purchase agreement with
135-9 any qualified nonprofit organization or tenant organization; and
135-10 (3) during the year before the expiration of the
135-11 compliance period, negotiate or enter into a purchase agreement
135-12 with the department or any qualified nonprofit organization or
135-13 tenant organization approved by the department.
135-14 (c) Notwithstanding an agreement under Section 2306.6726
135-15 [2306.672(b)(1)], a recipient of a low income housing tax credit
135-16 may sell property to which the tax credit applies to any purchaser
135-17 after the expiration of the compliance period if a qualified
135-18 nonprofit organization or tenant organization does not offer to
135-19 purchase the property at the minimum price provided by Section
135-20 42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
135-21 42(i)(7)), and the department declines to purchase the property.
135-22 (d) In this section, "compliance period" has the meaning
135-23 assigned by Section 42(i)(1), Internal Revenue Code of 1986 (26
135-24 U.S.C. Section 42(i)(1)).
135-25 Sec. 2306.6728 [2306.674]. DEPARTMENT PURCHASE OF LOW INCOME
135-26 HOUSING TAX CREDIT PROPERTY. The board by rule may develop and
135-27 implement a program to purchase low income housing tax credit
136-1 property that is not purchased by a qualified nonprofit
136-2 organization or tenant organization. The department may not
136-3 purchase low income housing tax credit property if the board finds
136-4 that the purchase is not in the best interest of the state.
136-5 Sec. 2306.6751 [2306.675]. ALLOCATION DECISION; REEVALUATION
136-6 [OF LOW INCOME HOUSING TAX CREDIT]. (a) Department staff shall
136-7 provide written, documented recommendations to the board concerning
136-8 the financial or programmatic viability of each application for a
136-9 low income housing tax credit before the board makes a decision
136-10 relating to the allocation of tax credits. The board may not make
136-11 without good cause an allocation decision that conflicts with the
136-12 recommendations of department staff.
136-13 (b) Regardless of project stage, the board must reevaluate a
136-14 project that undergoes a substantial change between the time of
136-15 initial board approval of the project and the time of issuance of a
136-16 tax credit commitment for the project. The board may revoke any
136-17 tax credit commitment issued for a project that has been
136-18 unfavorably reevaluated by the board under this subsection. [Not
136-19 later than the deadline specified in Section 2306.671(e), the board
136-20 shall issue a commitment for tax credits available to the
136-21 department. Concurrently with the issuance of a commitment for
136-22 initial tax credits, the board shall establish a waiting list of
136-23 additional applications, ranked in descending order of priority, to
136-24 be issued a commitment for tax credits if additional credits become
136-25 available.]
136-26 [Sec. 2306.676. EQUAL ACCESS TO PROGRAM. The department
136-27 shall establish procedures through the qualified allocation plan to
137-1 ensure that each applicant for a low income housing tax credit has
137-2 a fair and equal opportunity to submit or resubmit an application
137-3 and submit for consideration any authorized supplementary materials
137-4 and information.]
137-5 [Sec. 2306.677. FEES. (a) A fee charged by the department
137-6 to an applicant for a low income housing tax credit may not be
137-7 excessive and must reflect the department's actual costs in
137-8 processing applications and providing copies of documents in
137-9 connection with the allocation process.]
137-10 [(b) The department shall refund a fee charged to an
137-11 applicant if the department does not score the applicant's
137-12 application, except the department may retain a reasonable portion
137-13 of the fee to compensate the department for costs associated with
137-14 the application.]
137-15 Sec. 2306.6781 [2306.678]. PUBLIC INFORMATION [AND HEARINGS
137-16 ON PROGRAM]. [(a)] The department shall provide information
137-17 regarding the low income housing tax credit program, including
137-18 notices of public hearings, meetings, and opening and closing dates
137-19 for applications for a low income housing tax credit, to local
137-20 housing departments, any appropriate newspapers of general or
137-21 limited circulation that serve the community in which the proposed
137-22 project is to be located, nonprofit organizations, on-site property
137-23 managers of occupied projects that are the subject of tax credit
137-24 applications for posting in prominent locations at those projects,
137-25 and any other interested persons and community groups[,] who
137-26 request the information. The department shall also publish the
137-27 information on the department's website.
138-1 Sec. 2306.6782. REPRESENTATION BY FORMER BOARD MEMBER OR
138-2 OTHER PERSON. (a) A former board member or a former director,
138-3 deputy director, director of housing programs, or low income
138-4 housing tax credit program manager employed by the department may
138-5 not:
138-6 (1) for compensation, represent an applicant for an
138-7 allocation of low income housing tax credits or a related party
138-8 before the second anniversary of the date that the board member's,
138-9 director's, or manager's service in office or employment with the
138-10 department ceases;
138-11 (2) represent any applicant or related party or
138-12 receive compensation for services rendered on behalf of any
138-13 applicant or related party regarding the consideration of a housing
138-14 tax credit application in which the former board member, director,
138-15 or manager participated during the period of service in office or
138-16 employment with the department, either through personal involvement
138-17 or because the matter was within the scope of the board member's,
138-18 director's, or manager's official responsibility; or
138-19 (3) for compensation, communicate directly with a
138-20 member of the legislative branch to influence legislation on behalf
138-21 of an applicant or related party before the second anniversary of
138-22 the date that the board member's, director's, or manager's service
138-23 in office or employment with the department ceases.
138-24 (b) A person commits an offense if the person violates this
138-25 section. An offense under this section is a Class A misdemeanor.
138-26 Sec. 2306.6791. MINORITY-OWNED BUSINESSES. (a) The
138-27 department shall require a person who receives an allocation of
139-1 housing tax credits to attempt to ensure that at least 30 percent
139-2 of the construction and management businesses with which the person
139-3 contracts in connection with the development are minority-owned
139-4 businesses.
139-5 (b) A person who receives an allocation of housing tax
139-6 credits must report to the department not less than once in each
139-7 90-day period following the date of allocation regarding the
139-8 percentage of businesses with which the person has contracted that
139-9 qualify as minority-owned businesses.
139-10 (c) In this section:
139-11 (1) "Minority-owned business" means a business entity
139-12 at least 51 percent of which is owned by members of a minority
139-13 group or, in the case of a corporation, at least 51 percent of the
139-14 shares of which are owned by members of a minority group, and that
139-15 is managed and controlled by members of a minority group in its
139-16 daily operations.
139-17 (2) "Minority group" includes:
139-18 (A) women;
139-19 (B) African Americans;
139-20 (C) American Indians;
139-21 (D) Asian Americans; and
139-22 (E) Mexican Americans and other Americans of
139-23 Hispanic origin.
139-24 [(b) The department shall hold at least three public
139-25 hearings in different regions of the state to receive public
139-26 comments on low income housing tax credit applications.]
139-27 SECTION 8.02. The change in law made by this Act in adding
140-1 Section 2306.6724, Government Code, applies only to a development
140-2 for which an application for an allocation of low income housing
140-3 tax credits is received by the Texas Department of Housing and
140-4 Community Affairs on or after August 10, 1993.
140-5 ARTICLE 9
140-6 SECTION 9.01. Chapter 2306, Government Code, is amended by
140-7 adding Subchapter JJ to read as follows:
140-8 SUBCHAPTER JJ. TEXAS AFFORDABLE HOUSING NEEDS ASSESSMENT
140-9 Sec. 2306.881. DEFINITIONS. In this subchapter:
140-10 (1) "Border region" means the area composed of the
140-11 counties of Brewster, Brooks, Cameron, Culberson, Dimmit, Duval, El
140-12 Paso, Hidalgo, Hudspeth, Jeff Davis, Jim Hogg, Kenedy, Kinney, La
140-13 Salle, Maverick, Presidio, Starr, Val Verde, Webb, Willacy, Zapata,
140-14 and Zavala.
140-15 (2) "Public senior college or university" has the
140-16 meaning assigned by Section 61.003, Education Code.
140-17 Sec. 2306.882. TEXAS AFFORDABLE HOUSING NEEDS ASSESSMENT.
140-18 (a) In conjunction with the office of the comptroller, the
140-19 department shall assess the present and future affordable housing
140-20 needs of the border region and of the uniform state service regions
140-21 of this state.
140-22 (b) The department shall use the following factors in making
140-23 the assessment required by this subchapter:
140-24 (1) the number of extremely low, very low, and low
140-25 income households in each region;
140-26 (2) the number and type of publicly subsidized housing
140-27 units in each region;
141-1 (3) the number and amount of loans provided by the
141-2 department in each region and the income level of the recipients of
141-3 the loans;
141-4 (4) the number and amount of housing development
141-5 grants made by the department in each region and a description of
141-6 each grant;
141-7 (5) the number of substandard or inadequate housing
141-8 units in each region;
141-9 (6) cost estimates for correcting substandard and
141-10 inadequate housing conditions in each region;
141-11 (7) the number of extremely low, very low, and low
141-12 income households in each region that spend more than half of
141-13 household income on rent or mortgage payments;
141-14 (8) cost estimates for relieving housing cost burdens
141-15 for extremely low, very low, and low income households in each
141-16 region;
141-17 (9) an analysis of the market demand for housing by
141-18 extremely low, very low, and low income households;
141-19 (10) an analysis of the loans and private sector home
141-20 mortgage lending rates available to extremely low, very low, and
141-21 low income borrowers in each region;
141-22 (11) an analysis of the principal barriers to home
141-23 mortgage credit faced by extremely low, very low, and low income
141-24 borrowers; and
141-25 (12) the rate of subprime mortgage loan products in
141-26 home purchase, home repair, and home equity loans in each region.
141-27 (c) The assessment must provide a summary and conclusion
142-1 regarding the adequacy of existing housing and lending programs to
142-2 meet the affordable housing needs of each region.
142-3 (d) In making the assessment required by this subchapter,
142-4 the department shall use the most current data available from the
142-5 United States Census Bureau, the United States Department of
142-6 Housing and Urban Development, and federal and state banking
142-7 regulatory agencies.
142-8 (e) In making the assessment required by this subchapter,
142-9 the department shall project the affordable housing needs of each
142-10 region as of the end of each five-year period occurring between
142-11 September 1, 2001, and September 1, 2021, and as of September 1,
142-12 2031. The projection of affordable housing needs under this
142-13 subsection must include a projection of the costs and nature of the
142-14 affordable housing that will be needed in the future, including any
142-15 special need for single-family or multifamily housing.
142-16 Sec. 2306.883. FUNDING. The department may use any available
142-17 revenue, including legislative appropriations, to make the
142-18 assessment required by this subchapter.
142-19 Sec. 2306.884. CONTRACTUAL AUTHORITY. The department may
142-20 contract with a research center, a public senior college or
142-21 university, or a component of a public senior college or
142-22 university, including the Lyndon B. Johnson School of Public
142-23 Affairs, to make the assessment required by this subchapter.
142-24 Sec. 2306.885. REPORT. Not later than the 180th day after
142-25 the date the relevant information is released by the United States
142-26 Census Bureau, the department shall submit a report to the
142-27 governor, the lieutenant governor, and the legislature detailing
143-1 the department's findings on the present and future affordable
143-2 housing needs of the regions of this state.
143-3 Sec. 2306.886. EXPIRATION DATE. This subchapter expires
143-4 October 1, 2004.
143-5 ARTICLE 10
143-6 SECTION 10.01. Section 1372.022, Government Code, is amended
143-7 by amending Subsection (b) and adding Subsection (c) to read as
143-8 follows:
143-9 (b) If the state ceiling is computed on the basis of $75 per
143-10 capita or a greater amount, before August 15 of each year:
143-11 (1) 29.6 percent of the state ceiling is available
143-12 exclusively for reservations by issuers of qualified mortgage
143-13 bonds;
143-14 (2) 8 percent of the state ceiling is available
143-15 exclusively for reservations by issuers of state-voted issues;
143-16 (3) 4.6 percent of the state ceiling is available
143-17 exclusively for reservations by issuers of qualified small issue
143-18 bonds and enterprise zone facility bonds;
143-19 (4) 23 percent of the state ceiling is available
143-20 exclusively for reservations by issuers of qualified residential
143-21 rental project bonds;
143-22 (5) 8.8 percent of the state ceiling is available
143-23 exclusively for reservations by issuers of qualified student loan
143-24 bonds authorized by Section 53.47, Education Code; and
143-25 (6) 26 percent of the state ceiling is available
143-26 exclusively for reservations by any other issuer of bonds that
143-27 require an allocation.
144-1 (c) On and after August 15 but before September 1, that
144-2 portion of the state ceiling available for reservations becomes
144-3 available for qualified residential rental project issues in the
144-4 manner described by Section 1372.0321. On and after September 1,
144-5 that portion of the state ceiling available for reservations
144-6 becomes available to any issuer for any bonds that require an
144-7 allocation, subject to the provisions of this subchapter.
144-8 SECTION 10.02. Subchapter B, Chapter 1372, Government Code,
144-9 is amended by adding Section 1372.0231 to read as follows:
144-10 Sec. 1372.0231. DEDICATION OF PORTION OF STATE CEILING
144-11 AVAILABLE FOR QUALIFIED RESIDENTIAL RENTAL PROJECT BONDS. (a)
144-12 Until August 15, of that portion of the state ceiling that is
144-13 available exclusively for reservations by issuers of qualified
144-14 residential rental project bonds:
144-15 (1) 25 percent is available exclusively to the Texas
144-16 Department of Housing and Community Affairs in the manner described
144-17 by Subsection (b); and
144-18 (2) 75 percent is available exclusively to housing
144-19 finance corporations in the manner described by Subsections
144-20 (c)-(e).
144-21 (b) With respect to the amount of the state ceiling set
144-22 aside under Subsection (a)(1), the board shall grant reservations:
144-23 (1) in the order determined by the board by lot; and
144-24 (2) in a manner that ensures that:
144-25 (A) the set-aside amount is used for proposed
144-26 projects that are located throughout the state; and
144-27 (B) not more than 50 percent of the set-aside
145-1 amount is used for proposed projects that are located in qualified
145-2 census tracts as defined by Section 143(j), Internal Revenue Code
145-3 of 1986.
145-4 (c) Before June 1, the board shall apportion the amount of
145-5 state ceiling set aside under Subsection (a)(2) among the uniform
145-6 state service regions according to the percentage of the state's
145-7 population that resides in each of those regions.
145-8 (d) For the uniform state service regions containing Austin,
145-9 Dallas, and Houston, the board shall additionally apportion the
145-10 amount of the state ceiling set aside for each of those regions
145-11 under Subsection (c) within the region according to the percentage
145-12 of the region's population that resides in a metropolitan
145-13 statistical area and the percentage of the region's population that
145-14 resides outside of a metropolitan statistical area. With respect
145-15 to the amount of the state ceiling set aside for a metropolitan
145-16 statistical area under this subsection, the board shall grant
145-17 reservations in a manner that ensures that not more than 50 percent
145-18 of that set-aside amount is used for proposed projects that are
145-19 located in qualified census tracts as defined by Section 143(j),
145-20 Internal Revenue Code of 1986.
145-21 (e) In each area described by Subsection (c) or (d), the
145-22 board shall grant reservations based on the priority levels of
145-23 proposed projects as described by Section 1372.032.
145-24 (f) On or after June 1, the board may not grant available
145-25 reservations to housing finance corporations described by
145-26 Subsection (a) based on uniform state service regions or any
145-27 segments of those regions.
146-1 SECTION 10.03. Section 1372.026(a), Government Code, is
146-2 amended to read as follows:
146-3 (a) The maximum amount of the state ceiling that may be
146-4 reserved before August 15 [September 1] by a housing finance
146-5 corporation for the issuance of qualified mortgage bonds may not
146-6 exceed the amount computed as follows [by multiplying the local
146-7 population of the corporation by]:
146-8 (1) [$50,] if the local population of the housing
146-9 finance corporation is 300,000 or more, $22.5 million plus the
146-10 product of the amount by which the local population exceeds 300,000
146-11 multiplied by $11.25;
146-12 (2) [$75,] if the local population of the housing
146-13 finance corporation is 200,000 or more but less than 300,000, $20
146-14 million plus the product of the amount by which the local
146-15 population exceeds 200,000 multiplied by $22.5;
146-16 (3) [$100,] if the local population of the housing
146-17 finance corporation is 100,000 or more but less than 200,000, $15
146-18 million plus the product of the amount by which the local
146-19 population exceeds 100,000 multiplied by $50; or
146-20 (4) [$150,] if the local population of the housing
146-21 finance corporation is less than 100,000, the product of the local
146-22 population multiplied by $150.
146-23 SECTION 10.04. Subchapter B, Chapter 1372, Government Code,
146-24 is amended by adding Section 1372.0261 to read as follows:
146-25 Sec. 1372.0261. FAILURE OF HOUSING FINANCE CORPORATION TO
146-26 USE AMOUNT OF STATE CEILING ALLOCATED. (a) In this section,
146-27 "utilization percentage" means that portion of the amount of the
147-1 state ceiling allocated to a housing finance corporation with
147-2 respect to which the corporation issues private activity bonds that
147-3 result in mortgage loans or mortgage credit certificates. A
147-4 housing finance corporation's utilization percentage for an
147-5 allocation of the state ceiling is the quotient of:
147-6 (1) the amount of state ceiling used to purchase
147-7 mortgages or mortgage-backed securities or the amount of the state
147-8 ceiling used to issue mortgage credit certificates; divided by
147-9 (2) the amount of the state ceiling allocated, minus
147-10 any amounts of the state ceiling required for debt service reserve
147-11 funds.
147-12 (b) If a housing finance corporation's issue of bonds uses a
147-13 new allocation of the state ceiling in combination with taxable
147-14 bond proceeds or with bond proceeds recycled from previous
147-15 allocations of the state ceiling, the first loans or certificates
147-16 financed are considered in computing the utilization percentage of
147-17 the new allocation of the state ceiling.
147-18 (c) If a housing finance corporation's utilization
147-19 percentage is less than 95 percent, the next time the corporation
147-20 becomes eligible for a reservation of the state ceiling, the
147-21 maximum amount of state ceiling that may be reserved for the
147-22 corporation is equal to the amount for which the corporation would
147-23 otherwise be eligible under Section 1372.026 multiplied by the
147-24 utilization percentage of the corporation's last bond issue that
147-25 used an allocation of the state ceiling.
147-26 (d) A housing finance corporation may not be penalized under
147-27 Subsection (c) if:
148-1 (1) the corporation fails to use:
148-2 (A) bond proceeds recycled from previous
148-3 allocations of the state ceiling; or
148-4 (B) taxable bond proceeds; or
148-5 (2) as the result of an issuance of bonds, the
148-6 corporation's utilization percentage is 95 percent or greater.
148-7 SECTION 10.05. Section 1372.031, Government Code, is amended
148-8 to read as follows:
148-9 Sec. 1372.031. PRIORITIES FOR RESERVATIONS AMONG CERTAIN
148-10 ISSUERS. If, on or before October 20, more than one issuer in a
148-11 category described by Section 1372.022(a)(2), (3), [(4),] or (6)
148-12 applies for a reservation of the state ceiling for the next program
148-13 year, the board shall grant reservations in that category in the
148-14 order determined by the board by lot.
148-15 SECTION 10.06. The heading to Section 1372.032, Government
148-16 Code, is amended to read as follows:
148-17 Sec. 1372.032. PRIORITIES FOR RESERVATIONS AMONG ISSUERS OF
148-18 QUALIFIED MORTGAGE BONDS [HOUSING FINANCE CORPORATIONS].
148-19 SECTION 10.07. Section 3(h), Chapter 1092, Acts of the 70th
148-20 Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's Texas
148-21 Civil Statutes), is amended to read as follows:
148-22 (h) First priority for any reservations by issuers of
148-23 qualified residential rental project issues is given to (1)
148-24 projects in which 100 percent of the residential units in the
148-25 projects are under the restriction that the maximum allowable rents
148-26 are 30 percent of 50 percent of the area median family income minus
148-27 an allowance for utility costs authorized under the federal
149-1 low-income housing tax credit program; and (2) on or after June 1,
149-2 any other qualified residential rental project that is located in a
149-3 county, metropolitan statistical area, or primary metropolitan
149-4 statistical area with an area median family income at or below the
149-5 statewide median family income established by the United States
149-6 Department of Housing and Urban Development. Second priority is
149-7 given to projects in which 100 percent of the residential units in
149-8 the project are under the restriction that the maximum allowable
149-9 rents are 30 percent of 60 percent of the area median family income
149-10 minus an allowance for utility costs authorized under the federal
149-11 low-income housing tax credit program. Third priority is given to
149-12 any other qualified residential rental project.
149-13 SECTION 10.08. Section 1372.042(c), Government Code, is
149-14 amended to read as follows:
149-15 (c) Notwithstanding Subsections (a) and (b), if the 120th
149-16 day after the reservation date in the case of Subsection (a), or
149-17 the 180th day after the reservation date in the case of Subsection
149-18 (b), is later than December 24 of the year in which the reservation
149-19 was granted, the issuer shall close on the bonds before December 24
149-20 or notify the board in writing prior to such date of its election
149-21 to carry forward the reservation and the expected bond closing
149-22 date. The board shall file a carryforward election with respect to
149-23 any reservation which is expected to close after December 31 in
149-24 compliance with the requirements of Section 146(f) of the Internal
149-25 Revenue Code in a timely manner to permit the bonds to close by the
149-26 expected closing date but in no event later than February 15 of the
149-27 calendar year following the year in which the reservation was
150-1 granted. The grant of the reservation for the balance of the
150-2 120-day period in the case of Subsection (a), or 180-day period in
150-3 the case of Subsection (b), shall be automatically and immediately
150-4 reinstated upon the board's filing of the aforementioned
150-5 carryforward election with respect to such reservation [the issuer
150-6 shall close on the bonds before December 24].
150-7 SECTION 10.09. Sections 1372.061 and 1372.062, Government
150-8 Code, are amended to read as follows:
150-9 Sec. 1372.061. DESIGNATION BY BOARD OF CERTAIN AMOUNTS OF
150-10 STATE CEILING AS CARRYFORWARD. (a) The board may designate as
150-11 carryforward:
150-12 (1) the amount of the state ceiling that is not
150-13 reserved before December 15; and
150-14 (2) any amount of the state ceiling that:
150-15 (A) was reserved before December 15; and
150-16 (B) becomes available on or after that date
150-17 because of the cancellation of a reservation.
150-18 (b) The board shall designate as carryforward the
150-19 reservation amounts for which it receives written notice from
150-20 issuers of their election to carry forward reservations as provided
150-21 in Section 1372.042(c) if the specific bond issues relating to such
150-22 reservations do not close by December 31 of the year in which the
150-23 reservation was granted.
150-24 Sec. 1372.062. PRIORITY CLASSIFICATIONS OF CARRYFORWARD
150-25 DESIGNATIONS. (a) The board shall:
150-26 (1) designate amounts as carryforward in accordance
150-27 with the system of priority classifications specified in Sections
151-1 1372.063-1372.068; and
151-2 (2) in each classification, make the designations in
151-3 order of the application [applications] for those designations.
151-4 (b) Notwithstanding Subsection (a), with respect to a
151-5 carryforward relating to an issuer's written election as provided
151-6 in Section 1372.042(a), the carryforward shall be designated for
151-7 the category of bonds to which the reservation subject to the
151-8 carryforward relates in compliance with the requirements of Section
151-9 146(f) of the Internal Revenue Code.
151-10 SECTION 10.10. (a) In accordance with Section 311.031(c),
151-11 Government Code, which gives effect to a substantive amendment
151-12 enacted by the same legislature that codifies the amended statute,
151-13 the text of Section 1372.022(b), Government Code, as set out in
151-14 this Act, gives effect to changes made by Chapter 131, Acts of the
151-15 76th Legislature, Regular Session, 1999.
151-16 (b) To the extent of any conflict, the changes in law made
151-17 by this Act to Chapter 1372, Government Code, prevail over another
151-18 Act of the 77th Legislature, Regular Session, 2001, relating to
151-19 nonsubstantive additions and corrections in enacted codes.
151-20 SECTION 10.11. Section 1372.0261, Government Code, as added
151-21 by this Act, applies only to a reservation of state ceiling granted
151-22 on or after January 1, 2002.
151-23 ARTICLE 11
151-24 SECTION 11.01. This Act takes effect September 1, 2001.