77R13042 E
By Gallego H.B. No. 3449
Substitute the following for H.B. No. 3449:
By Hill C.S.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.
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; and
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, cultural, and social diversity of the state, including
4-7 ethnic minorities 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 registered, certified, or licensed by a
4-11 regulatory agency in the field of banking, real estate, housing
4-12 development, or housing construction;
4-13 (2) is employed by or participates in the management
4-14 of a business entity or other organization regulated by or
4-15 receiving money from the department;
4-16 (3) owns or controls, directly or indirectly, more
4-17 than a 10 percent interest in a business entity or other
4-18 organization regulated by or receiving money from the department;
4-19 or
4-20 (4) uses or receives a substantial amount of tangible
4-21 goods, services, or money from the department other than
4-22 compensation or reimbursement authorized by law for board
4-23 membership, attendance, or expenses [An elected or appointed
4-24 official of a political subdivision appointed to Place 2 on the
4-25 board is a member of the board as an additional or ex officio duty
4-26 required by the member's other official capacity, and the member's
4-27 service on the board is not dual office holding].
5-1 Sec. 2306.028. TRAINING. (a) A person who is appointed to
5-2 and qualifies for office as a member of the board may not vote,
5-3 deliberate, or be counted as a member in attendance at a meeting of
5-4 the board until the person completes a training program that
5-5 complies with this section.
5-6 (b) The training program must provide the person with
5-7 information regarding:
5-8 (1) the legislation that created the department and
5-9 the board;
5-10 (2) the programs operated by the department;
5-11 (3) the role and functions of the department;
5-12 (4) the rules of the department, with an emphasis on
5-13 the rules that relate to disciplinary and investigatory authority;
5-14 (5) the current budget for the department;
5-15 (6) the results of the most recent formal audit of the
5-16 department;
5-17 (7) the requirements of:
5-18 (A) the open meetings law, Chapter 551;
5-19 (B) the public information law, Chapter 552;
5-20 (C) the administrative procedure law, Chapter
5-21 2001; and
5-22 (D) other laws relating to public officials,
5-23 including conflict-of-interest laws;
5-24 (8) the requirements of:
5-25 (A) state and federal fair housing laws,
5-26 including Chapter 301, Property Code, Title VIII of the Civil
5-27 Rights Act of 1968 (42 U.S.C. Section 3601 et seq.), and the Fair
6-1 Housing Amendments Act of 1988 (42 U.S.C. Section 3601 et seq.);
6-2 (B) the Civil Rights Act of 1964 (42 U.S.C.
6-3 Section 2000a et seq.);
6-4 (C) the Americans with Disabilities Act of 1990
6-5 (42 U.S.C. Section 12101 et seq.); and
6-6 (D) the Rehabilitation Act of 1973 (29 U.S.C.
6-7 Section 701 et seq.); and
6-8 (9) any applicable ethics policies adopted by the
6-9 department or the Texas Ethics Commission.
6-10 (c) A person appointed to the board is entitled to
6-11 reimbursement, as provided by the General Appropriations Act, for
6-12 the travel expenses incurred in attending the training program
6-13 regardless of whether the attendance at the program occurs before
6-14 or after the person qualifies for office.
6-15 Sec. 2306.033. REMOVAL OF MEMBERS. (a) It is a ground for
6-16 removal from the board that a member:
6-17 (1) does not have at the time of taking office
6-18 [appointment] the qualifications required by Section [2306.026,]
6-19 2306.027[, or 2306.028 for appointment to the board];
6-20 (2) does not maintain during [the] service on the
6-21 board the qualifications required by Section [2306.026,] 2306.027[,
6-22 or 2306.028 for appointment to the board];
6-23 (3) is ineligible for membership under [violates a
6-24 prohibition established by] Section 2306.027(c), 2306.034, or
6-25 2306.035;
6-26 (4) cannot, because of illness or disability,
6-27 discharge the member's duties for a substantial part of the
7-1 member's term [for which the member is appointed because of illness
7-2 or disability];
7-3 (5) is absent from more than half of the regularly
7-4 scheduled board meetings [of the board] that the member is eligible
7-5 to attend during a calendar year without an excuse approved [unless
7-6 the absence is excused] by a majority vote of the board; or
7-7 (6) engages in misconduct or unethical or criminal
7-8 behavior.
7-9 (b) The validity of an action of the board is not affected
7-10 by the fact that it is taken when a ground for removal of a board
7-11 member exists.
7-12 (c) If the director has knowledge that a potential ground
7-13 for removal exists, the director shall notify the presiding officer
7-14 of the board of the potential ground. The presiding officer shall
7-15 then notify the governor and the attorney general that a potential
7-16 ground for removal exists. If the potential ground for removal
7-17 involves the presiding officer, the director shall notify the next
7-18 highest ranking officer of the board, who shall then notify the
7-19 governor and the attorney general that a potential ground for
7-20 removal exists.
7-21 Sec. 2306.034. DISQUALIFICATION OF MEMBERS AND CERTAIN
7-22 EMPLOYEES. (a) In [An employee or paid consultant of a Texas trade
7-23 association in the field of banking, real estate, housing
7-24 development, or housing construction may not be a member of the
7-25 board or an employee of the department who is exempt from the
7-26 state's position classification plan or is compensated at or above
7-27 the amount prescribed by the General Appropriations Act for step 1,
8-1 salary group 17, of the position classification salary schedule.]
8-2 [(b) For the purposes of] this section, [a] "Texas trade
8-3 association" means [is] a [nonprofit,] cooperative[,] and
8-4 voluntarily joined association of business or professional
8-5 competitors in this state designed to assist its members and its
8-6 industry or profession in dealing with mutual business or
8-7 professional problems and in promoting their common interest.
8-8 (b) A person may not be a member of the board and may not be
8-9 a department employee employed in a "bona fide executive,
8-10 administrative, or professional capacity," as that phrase is used
8-11 for purposes of establishing an exemption to the overtime
8-12 provisions of the federal Fair Labor Standards Act of 1938 (29
8-13 U.S.C. Section 201 et seq.) if:
8-14 (1) the person is an officer, employee, or paid
8-15 consultant of a Texas trade association in the field of banking,
8-16 real estate, housing development, or housing construction; or
8-17 (2) the person's spouse is an officer, manager, or
8-18 paid consultant of a Texas trade association in the field of
8-19 banking, real estate, housing development, or housing construction.
8-20 Sec. 2306.035. LOBBYIST RESTRICTION. A person may not be
8-21 [serve as] a member of the board or act as the director of the
8-22 department or the general counsel to the board or the department if
8-23 the person is required to register as a lobbyist under Chapter 305
8-24 because of the person's activities for compensation [in or] on
8-25 behalf of a profession related to the operation of the department.
8-26 SECTION 1.04. Section 2306.030(a), Government Code, is
8-27 amended to read as follows:
9-1 (a) The governor shall designate a member of [appoint a
9-2 presiding officer from] the board as the presiding officer of the
9-3 board to serve in that capacity at the will of the governor
9-4 [members]. The presiding officer presides at meetings of the board
9-5 and performs other duties required by this chapter.
9-6 SECTION 1.05. Section 2306.032, Government Code, is amended
9-7 by adding Subsections (c)-(g) to read as follows:
9-8 (c) All materials in the possession of the department that
9-9 are relevant to a matter proposed for discussion at a board meeting
9-10 must be posted on the department's website, made available in
9-11 hard-copy format at the department, filed with the secretary of
9-12 state for publication by reference in the Texas Register, and
9-13 disseminated by any other means required by this chapter or by
9-14 Chapter 551.
9-15 (d) The materials described by Subsection (c) must be made
9-16 available to the public as required by Subsection (c) not later
9-17 than the seventh day before the date of the meeting. The board may
9-18 not consider at the meeting any material that is not made available
9-19 to the public by the date required by this subsection.
9-20 (e) The agenda for a board meeting must state each project
9-21 the staff is recommending for assistance by the department.
9-22 (f) For each item on the board's agenda at the meeting, the
9-23 board shall provide for public comment after the presentation made
9-24 by department staff and the motions made by the board on that
9-25 topic.
9-26 (g) The board shall adopt rules that give the public a
9-27 reasonable amount of time for testimony at meetings.
10-1 SECTION 1.06. Subchapter B, Chapter 2306, Government Code, is
10-2 amended by adding Section 2306.0321 to read as follows:
10-3 Sec. 2306.0321. APPEAL OF BOARD DECISIONS. (a) The board
10-4 shall adopt rules outlining a formal process for appealing board
10-5 decisions.
10-6 (b) The rules must specify the requirements for appealing a
10-7 board decision, including:
10-8 (1) the persons eligible to appeal;
10-9 (2) the grounds for an appeal;
10-10 (3) the process for filing an appeal, including the
10-11 information that must be submitted with an appeal;
10-12 (4) a reasonable period in which an appeal must be
10-13 filed, heard, and decided;
10-14 (5) the process by which an appeal is heard and a
10-15 decision is made;
10-16 (6) the possible outcomes of an appeal; and
10-17 (7) the process by which notification of a decision
10-18 and the basis for a decision is given.
10-19 SECTION 1.07. Subchapter C, Chapter 2306, Government Code, is
10-20 amended by adding Sections 2306.051, 2306.0521, and 2306.057 to
10-21 read as follows:
10-22 Sec. 2306.051. SEPARATION OF RESPONSIBILITIES. The board
10-23 shall develop and implement policies that clearly separate the
10-24 policy-making responsibilities of the board and the management
10-25 responsibilities of the director and staff of the department.
10-26 Sec. 2306.0521. ORGANIZATIONAL FLEXIBILITY OF DEPARTMENT.
10-27 (a) Notwithstanding Section 2306.021(b) or any other provision of
11-1 this chapter, the director, with the approval of the board, may:
11-2 (1) create divisions in addition to those listed in
11-3 Section 2306.021(b) and assign to the newly created divisions any
11-4 duties and powers imposed on or granted to an existing division or
11-5 the department generally;
11-6 (2) eliminate any division listed in Section
11-7 2306.021(b) or created under this section and assign any duties or
11-8 powers previously assigned to the eliminated division to another
11-9 division listed in Section 2306.021(b) or created under this
11-10 section; or
11-11 (3) eliminate all divisions listed in Section
11-12 2306.021(b) or created under this section and reorganize the
11-13 distribution of powers and duties granted to or imposed on a
11-14 division in any manner the director determines appropriate for the
11-15 proper administration of the department.
11-16 (b) This section does not apply to the manufactured housing
11-17 division.
11-18 Sec. 2306.057. COMPLIANCE ASSESSMENT REQUIRED FOR PROJECT
11-19 APPROVAL BY BOARD. (a) Before the board approves any project
11-20 application submitted under this chapter, the department, through
11-21 the division with responsibility for compliance matters, shall:
11-22 (1) assess:
11-23 (A) the compliance history of the applicant and
11-24 any affiliate of the applicant with respect to all applicable
11-25 requirements; and
11-26 (B) the compliance issues associated with the
11-27 proposed project; and
12-1 (2) provide to the board a written report regarding
12-2 the results of the assessments described by Subdivision (1).
12-3 (b) The written report described by Subsection (a)(2) must
12-4 be included in the appropriate project file for board and
12-5 department review.
12-6 (c) The board shall fully document and disclose any
12-7 instances in which the board approves a project application despite
12-8 any noncompliance associated with the project, applicant, or
12-9 affiliate.
12-10 SECTION 1.08. Section 2306.052, Government Code, is amended
12-11 by amending Subsection (c) and adding Subsections (e) and (f) to
12-12 read as follows:
12-13 (c) The director shall develop and implement the policies
12-14 established by the board that define the responsibilities of each[:]
12-15 [(1) the director, board, and staff of the department;
12-16 and]
12-17 [(2) the community affairs division, the housing
12-18 finance division, and any other] division in the department.
12-19 (e) The board shall adopt rules and the director shall
12-20 develop and implement a program to train employees on the public
12-21 information requirements of Chapter 552. The director shall
12-22 monitor the compliance of employees with those requirements.
12-23 (f) The director shall use existing department resources to
12-24 provide the board with any administrative support necessary for the
12-25 board to exercise its duties regarding the implementation of this
12-26 chapter, including:
12-27 (1) assigning personnel to assist the board;
13-1 (2) providing office space, equipment, and documents
13-2 and other information to the board; and
13-3 (3) making in-house legal counsel available to the
13-4 board.
13-5 SECTION 1.09. Subchapter D, Chapter 2306, Government Code, is
13-6 amended by amending Section 2306.061 and adding Sections 2306.0631
13-7 and 2306.081 to read as follows:
13-8 Sec. 2306.061. STANDARDS OF [INFORMATION ON QUALIFICATIONS
13-9 AND] CONDUCT. The director or the director's designee shall become
13-10 aware of and provide to members of the board [members] and to [the]
13-11 department employees, as often as necessary, information regarding
13-12 the requirements [about the director's, members', and employees':]
13-13 [(1) qualifications] for office or employment under
13-14 this chapter, including information regarding a person's[; and]
13-15 [(2)] responsibilities under applicable laws relating
13-16 to standards of conduct for state officers or employees.
13-17 Sec. 2306.0631. STATE EMPLOYEE INCENTIVE PROGRAM. The
13-18 director or the director's designee shall provide to department
13-19 employees information and training on the benefits and methods of
13-20 participation in the state employee incentive program under
13-21 Subchapter B, Chapter 2108.
13-22 Sec. 2306.081. PROJECT COMPLIANCE; DATABASE. (a) The
13-23 department, through the division with responsibility for compliance
13-24 matters, shall monitor for compliance with all applicable
13-25 requirements the entire construction phase associated with any
13-26 project under this chapter. The monitoring level for each project
13-27 must be based on the amount of risk associated with the project.
14-1 (b) After completion of a project's construction phase, the
14-2 department shall periodically review the performance of the project
14-3 to confirm the accuracy of the department's initial compliance
14-4 evaluation during the construction phase.
14-5 (c) The department shall use the division responsible for
14-6 credit underwriting matters and the division responsible for
14-7 compliance matters to determine the amount of risk associated with
14-8 each project.
14-9 (d) The department shall create an easily accessible
14-10 database that contains all project compliance information developed
14-11 under this chapter.
14-12 SECTION 1.10. Sections 2306.066(b) and (c), Government Code,
14-13 are amended to read as follows:
14-14 (b) The department shall maintain a [keep an information]
14-15 file on [about] each written complaint filed with the department
14-16 [that the department has authority to resolve]. The file must
14-17 include:
14-18 (1) the name of the person who filed the complaint;
14-19 (2) the date the complaint is received by the
14-20 department;
14-21 (3) the subject matter of the complaint;
14-22 (4) the name of each person contacted in relation to
14-23 the complaint;
14-24 (5) a summary of the results of the review or
14-25 investigation of the complaint; and
14-26 (6) an explanation of the reason the file was closed,
14-27 if the department closed the file without taking action other than
15-1 to investigate the complaint.
15-2 (c) The department shall provide to the person filing the
15-3 complaint and to each person who is a subject of the complaint a
15-4 copy of the department's policies and procedures relating to
15-5 complaint investigation and resolution. The [If a written
15-6 complaint is filed with the department that the department has
15-7 authority to resolve, the] department, at least quarterly [and]
15-8 until final disposition of the complaint, shall notify the person
15-9 filing the complaint and each person who is a subject of [parties
15-10 to] the complaint of the status of the investigation [complaint]
15-11 unless the notice would jeopardize an undercover investigation.
15-12 SECTION 1.11. Section 2306.0661, Government Code, is amended
15-13 to read as follows:
15-14 Sec. 2306.0661. PUBLIC HEARINGS. (a) Except as provided by
15-15 Subsection (b), this [This] section applies only to state-funded
15-16 housing programs, programs funded with bond proceeds, the low
15-17 income housing tax credit program, and the state low income housing
15-18 plan. Federally funded programs shall comply with the federal
15-19 public participation requirements and Chapter 2105, if applicable.
15-20 (b) The department shall encourage informed and effective
15-21 public participation in the department's programs and plans by
15-22 [through] holding, on at least an annual basis in each uniform
15-23 service region of the state, a consolidated public hearing in which
15-24 the board solicits and accepts public comments regarding the
15-25 following programs:
15-26 (1) the housing trust fund program;
15-27 (2) the HOME investment partnerships program;
16-1 (3) the single-family housing mortgage revenue bond
16-2 program;
16-3 (4) the multifamily housing mortgage revenue bond
16-4 program;
16-5 (5) the low income housing tax credit program;
16-6 (6) the low income energy assistance program;
16-7 (7) any other program in the consolidated plan
16-8 submitted to the United States Department of Housing and Urban
16-9 Development; and
16-10 (8) any other program in the state low income housing
16-11 plan [hearings and soliciting and accepting public comments during
16-12 those hearings].
16-13 (c) In holding a public hearing, the department shall ensure
16-14 that:
16-15 (1) the location of the hearing is:
16-16 (A) in a public building or facility accessible
16-17 to the public;
16-18 (B) accessible to persons with disabilities; and
16-19 (C) reasonably accessible by public
16-20 transportation, if available;
16-21 (2) hearings are scheduled at times when working and
16-22 nonworking people can attend; and
16-23 (3) child care is provided where practical.
16-24 (d) [(c)] In scheduling a public hearing, the department
16-25 shall:
16-26 (1) publish notice of the time, place, and subject of
16-27 the hearing in the Texas Register and a newspaper of general
17-1 circulation in the community in which the hearing is to be held at
17-2 least seven days before the date of the hearing. Whenever
17-3 practical, the department shall publish notice of the time, place,
17-4 and subject of the hearing in the Texas Register and a newspaper of
17-5 general circulation in the community in which the hearing is to be
17-6 held at least thirty days before the date of the hearing;
17-7 (2) provide notice of the hearing to each public
17-8 library, in the community in which the hearing is to be held, for
17-9 posting in a public area of the library;
17-10 (3) provide notice of the hearing to:
17-11 (A) each member of the board;
17-12 (B) each member of the advisory committee
17-13 consulted by the department during preparation of the state low
17-14 income housing plan; and
17-15 (C) each member of the legislature;
17-16 (4) [make a reasonable effort to inform interested
17-17 persons and organizations of the hearing;]
17-18 [(5)] make information about the hearing, including,
17-19 if appropriate, the qualified allocation plan, application forms
17-20 for a low income housing tax credit, and the state low income
17-21 housing plan, available on the Internet in accordance with
17-22 Subsection (e) and with Section 2306.077; and
17-23 (5) [(6)] provide an opportunity for persons to
17-24 transmit on the Internet written testimony or comments on a subject
17-25 of a hearing in accordance with rules adopted by the board.
17-26 (e) At least two weeks before the date of the hearing, all
17-27 materials in the possession of the department that are relevant to
18-1 a matter proposed for discussion at a consolidated public hearing
18-2 under this section must be sent to interested persons and
18-3 organizations, posted on the department's website, made available
18-4 in hard-copy format at the department, filed with the secretary of
18-5 state for publication by reference in the Texas Register, and
18-6 disseminated by any other means required by this chapter or by
18-7 Chapter 551.
18-8 SECTION 1.12. Section 2306.067, Government Code, is amended
18-9 by adding Subsection (d) to read as follows:
18-10 (d) The director may enter into an agreement with the
18-11 manufactured housing division to loan or assign department
18-12 employees, equipment, and facilities to that division.
18-13 SECTION 1.13. Section 2306.0721, Government Code, is amended
18-14 by amending Subsection (c) and adding Subsection (f) to read as
18-15 follows:
18-16 (c) The plan must include:
18-17 (1) an estimate and analysis of the housing needs of
18-18 the following populations in each uniform [the] state service
18-19 region:
18-20 (A) individuals and families of moderate, low,
18-21 [and] very low, and extremely low income;
18-22 (B) individuals with special needs; and
18-23 (C) homeless individuals;
18-24 (2) a proposal to use all available housing resources
18-25 to address the housing needs of the populations described by
18-26 Subdivision (1) by establishing funding levels for all
18-27 housing-related programs;
19-1 (3) an estimate of the number of federally assisted
19-2 housing units available for individuals and families of low and
19-3 very low income and individuals with special needs in each uniform
19-4 state service region [county];
19-5 (4) a description of state programs that govern the
19-6 use of all available housing resources;
19-7 (5) a resource allocation plan that targets all
19-8 available housing resources to individuals and families of low and
19-9 very low income and individuals with special needs in each uniform
19-10 state service region;
19-11 (6) a description of the department's efforts to
19-12 monitor and analyze the unused or underused federal resources of
19-13 other state agencies for housing-related services and services for
19-14 homeless individuals and the department's recommendations to ensure
19-15 the full use by the state of all available federal resources for
19-16 those services in each uniform state service region;
19-17 (7) strategies to provide housing for individuals and
19-18 families with special needs in each uniform state service region;
19-19 (8) a description of the department's efforts to
19-20 encourage in each uniform state service region the construction of
19-21 housing units that incorporate energy efficient construction and
19-22 appliances; [and]
19-23 (9) an estimate and analysis of the housing supply in
19-24 each uniform state service region;
19-25 (10) an inventory of all publicly and, where possible,
19-26 privately funded housing resources, including public housing
19-27 authorities, housing finance corporations, community housing
20-1 development organizations, and community action agencies;
20-2 (11) strategies for meeting rural housing needs;
20-3 (12) information on the demand for contract-for-deed
20-4 conversions, services from self-help centers, consumer education,
20-5 and other colonia resident services in counties some part of which
20-6 is within 150 miles of the international border of this state;
20-7 (13) a summary of public comments received at a
20-8 hearing under this chapter or from another source that concern the
20-9 demand for colonia resident services described by Subdivision (12);
20-10 and
20-11 (14) any other housing-related information that the
20-12 state is required to include in the one-year action plan of the
20-13 consolidated plan submitted annually to the United States
20-14 Department of Housing and Urban Development.
20-15 (f) The director may subdivide the uniform state service
20-16 regions as necessary for purposes of the state low income housing
20-17 plan.
20-18 SECTION 1.14. Section 2306.0722, Government Code, is amended
20-19 to read as follows:
20-20 Sec. 2306.0722. PREPARATION OF PLAN AND REPORT. (a) Before
20-21 preparing the annual low income housing report under Section
20-22 2306.072 and the state low income housing plan under Section
20-23 2306.0721, the department shall meet with regional planning
20-24 commissions created under Chapter 391, Local Government Code,
20-25 representatives of groups with an interest in low income housing,
20-26 nonprofit housing organizations, managers, owners, and developers
20-27 of affordable housing, local government officials, and residents of
21-1 low income housing. The department shall obtain the comments and
21-2 suggestions of the representatives, officials, and residents about
21-3 the prioritization and allocation of the department's resources in
21-4 regard to housing.
21-5 (b) In preparing the annual report under Section 2306.072
21-6 and the state low income housing plan under Section 2306.0721, the
21-7 director shall:
21-8 (1) coordinate local, state, and federal housing
21-9 resources, including tax exempt housing bond financing and low
21-10 income housing tax credits;
21-11 (2) set priorities for the available housing resources
21-12 to help the neediest individuals;
21-13 (3) evaluate the success of publicly supported housing
21-14 programs;
21-15 (4) survey and identify the unmet housing needs of
21-16 individuals the department is required to assist;
21-17 (5) ensure that housing programs benefit an individual
21-18 without regard to the individual's race, ethnicity, sex, or
21-19 national origin;
21-20 (6) develop housing opportunities for individuals and
21-21 families of low and very low income and individuals with special
21-22 housing needs;
21-23 (7) develop housing programs through an open, fair,
21-24 and public process;
21-25 (8) set priorities for assistance in a manner that is
21-26 appropriate and consistent with the housing needs of the
21-27 populations described by Section 2306.0721(c)(1);
22-1 (9) incorporate recommendations that are consistent
22-2 with the consolidated plan submitted annually by the state to the
22-3 United States Department of Housing and Urban Development;
22-4 (10) identify the organizations and individuals
22-5 consulted by the department in preparing the annual report and
22-6 state low income housing plan and summarize and incorporate
22-7 comments and suggestions provided under Subsection (a) as the
22-8 board determines to be appropriate;
22-9 (11) develop a plan to respond to changes in federal
22-10 funding and programs for the provision of affordable housing; [and]
22-11 (12) use the following standardized categories to
22-12 describe the income of program applicants and beneficiaries:
22-13 (A) 0 to 30 percent of area median income
22-14 adjusted for family size;
22-15 (B) more than 30 to 60 percent of area median
22-16 income adjusted for family size;
22-17 (C) more than 60 to 80 percent of area median
22-18 income adjusted for family size;
22-19 (D) more than 80 to 115 percent of area median
22-20 income adjusted for family size; or
22-21 (E) more than 115 percent of area median income
22-22 adjusted for family size; and
22-23 (13) use the most recent census data combined with
22-24 existing data from local housing and community service providers in
22-25 the state, including public housing authorities, housing finance
22-26 corporations, community housing development organizations, and
22-27 community action agencies.
23-1 SECTION 1.15. Section 2306.0723(a), Government Code, is
23-2 amended to read as follows:
23-3 (a) The department shall hold public hearings on the annual
23-4 state low income housing plan and report before the director
23-5 submits the report and the plan to the board. [Public hearings
23-6 shall be held in Dallas or Fort Worth, El Paso, Houston, San
23-7 Antonio, the Lower Rio Grande Valley, and at least two additional
23-8 municipalities selected by the department to represent
23-9 geographically diverse communities.] The department shall provide
23-10 notice of the public hearings as required by Section 2306.0661. The
23-11 published notice must include a summary of the report and plan. The
23-12 department shall accept comments on the report and plan at the
23-13 public hearings and for at least 30 days after the date of the
23-14 publication of the notice of the hearings.
23-15 SECTION 1.16. Section 2306.111, Government Code, is amended
23-16 by amending Subsection (d) and adding Subsections (g) and (h) to
23-17 read as follows:
23-18 (d) The department shall allocate housing funds provided to
23-19 the state under the Cranston-Gonzalez National Affordable Housing
23-20 Act (42 U.S.C. Section 12701 et seq.), housing trust funds
23-21 administered by the department under Sections 2306.201-2306.206,
23-22 and commitments issued under the federal low income housing tax
23-23 credit program administered by the department under Subchapter DD
23-24 [Sections 2306.671-2306.678] to each uniform state service region
23-25 based on a formula developed by the department that is based on the
23-26 need for housing assistance and the availability of housing
23-27 resources, provided that the allocations are consistent with
24-1 applicable federal and state requirements and limitations. The
24-2 department shall use the information contained in its annual state
24-3 low income housing plan to develop the formula. If the department
24-4 determines under the formula that an insufficient number of
24-5 eligible applications for assistance out of funds or credits
24-6 allocable under this subsection are submitted to the department
24-7 from a particular uniform state service region, the department
24-8 shall use the unused funds or credits allocated to that region for
24-9 all other regions based on identified need and financial
24-10 feasibility.
24-11 (g) For each uniform state service region, the department
24-12 shall establish funding priorities to ensure that:
24-13 (1) funds are awarded to project applicants who are
24-14 best able to meet recognized needs for affordable housing, as
24-15 determined by the department;
24-16 (2) when practicable, the least restrictive funding
24-17 sources are used to serve the lowest income residents; and
24-18 (3) funds are awarded based on a project applicant's
24-19 ability to:
24-20 (A) provide the greatest number of quality
24-21 residential units;
24-22 (B) serve persons with the lowest percent area
24-23 median family income;
24-24 (C) extend the duration of the project to serve
24-25 a continuing public need;
24-26 (D) use other funding sources to minimize the
24-27 amount of subsidy needed to complete the project; and
25-1 (E) provide integrated, affordable housing for
25-2 individuals and families with different levels of income.
25-3 (h) The department by rule shall adopt a policy providing
25-4 for the reallocation of financial assistance administered by the
25-5 department, including financial assistance related to bonds issued
25-6 by the department, if the department's obligation with respect to
25-7 that assistance is prematurely terminated.
25-8 SECTION 1.17. Subchapter F, Chapter 2306, Government Code, is
25-9 amended by adding Sections 2306.1111, 2306.1112, and 2306.1113 to
25-10 read as follows:
25-11 Sec. 2306.1111. UNIFORM APPLICATION AND FUNDING CYCLE. (a)
25-12 Notwithstanding any other state law and to the extent consistent
25-13 with federal law, the department shall establish a uniform
25-14 application and funding cycle for all single-family and multifamily
25-15 housing programs administered by the department under this chapter.
25-16 (b) Wherever possible, the department shall use uniform
25-17 threshold requirements for single-family and multifamily housing
25-18 program applications, including uniform threshold requirements
25-19 relating to market studies and environmental reports.
25-20 Sec. 2306.1112. EXECUTIVE AWARD AND REVIEW ADVISORY
25-21 COMMITTEE. (a) The department shall establish an executive award
25-22 and review advisory committee to make recommendations to the board
25-23 regarding funding and allocation decisions.
25-24 (b) The advisory committee is composed of the director, the
25-25 administrator of each of the department's programs, and one
25-26 representative from each of the department's planning,
25-27 underwriting, and compliance functions.
26-1 (c) The advisory committee shall develop the funding
26-2 priorities required by Section 2306.111(g) and shall make funding
26-3 and allocation recommendations to the board based on the ability of
26-4 applicants to meet those priorities.
26-5 (d) The advisory committee is not subject to Chapter 2110.
26-6 Sec. 2306.1113. EX-PARTE COMMUNICATIONS. (a) During the
26-7 period beginning on the date a project application is filed and
26-8 ending on the date the board makes a final decision with respect to
26-9 any approval of that application, the following persons may not
26-10 communicate with a member of the board or with a member of the
26-11 advisory committee established under Section 2306.1112:
26-12 (1) the applicant or a related party, as defined by
26-13 board rules; and
26-14 (2) any person who is:
26-15 (A) active in the construction, rehabilitation,
26-16 ownership, or control of the proposed project, including:
26-17 (i) a general partner or contractor; and
26-18 (ii) a principal or affiliate of a general
26-19 partner or contractor; or
26-20 (B) employed as a lobbyist by the applicant or a
26-21 related party.
26-22 (b) Notwithstanding Subsection (a), a person described by
26-23 that subsection may communicate with a board member or advisory
26-24 committee member at any board meeting or public hearing held with
26-25 respect to the application.
26-26 SECTION 1.18. Subchapter H, Chapter 2306, Government Code, is
26-27 amended by adding Section 2306.1711 to read as follows:
27-1 Sec. 2306.1711. RULEMAKING PROCEDURES FOR CERTAIN PROGRAMS.
27-2 (a) The department shall adopt rules outlining formal rulemaking
27-3 procedures for the low income housing tax credit program and the
27-4 multifamily housing mortgage revenue bond program in accordance
27-5 with Chapter 2001.
27-6 (b) The rules adopted under Subsection (a) must include:
27-7 (1) procedures for allowing interested parties to
27-8 petition the department to request the adoption of a new rule or
27-9 the amendment of an existing rule;
27-10 (2) notice requirements and deadlines for taking
27-11 certain actions; and
27-12 (3) a provision for a public hearing.
27-13 (c) The department shall provide for public input before
27-14 adopting rules for programs with requests for proposals and notices
27-15 of funding availability.
27-16 SECTION 1.19. Section 2306.252, Government Code, is amended
27-17 by amending Subsection (b) and adding Subsections (d)-(g) to read
27-18 as follows:
27-19 (b) The department, through the center, shall:
27-20 (1) provide educational material prepared in plain
27-21 language to housing advocates, housing sponsors, borrowers, and
27-22 tenants;
27-23 (2) provide technical assistance to nonprofit housing
27-24 sponsors; [and]
27-25 (3) assist in the development of housing policy,
27-26 including the annual state low income housing plan and report and
27-27 the consolidated plan;
28-1 (4) maintain communication with local governments and
28-2 act as an advocate for local governments at the state and federal
28-3 levels;
28-4 (5) assist local governments with advisory and
28-5 technical services;
28-6 (6) provide financial aid to local governments and
28-7 combinations of local governments for programs that are authorized
28-8 to receive assistance;
28-9 (7) provide information about and referrals for state
28-10 and federal programs and services that affect local governments;
28-11 (8) administer, conduct, or jointly sponsor
28-12 educational and training programs for local government officials;
28-13 (9) conduct research on problems of general concern to
28-14 local governments;
28-15 (10) collect, publish, and distribute information
28-16 useful to local governments, including information on:
28-17 (A) local government finances and employment;
28-18 (B) housing;
28-19 (C) population characteristics; and
28-20 (D) land-use patterns;
28-21 (11) encourage cooperation among local governments as
28-22 appropriate;
28-23 (12) advise and inform the governor and the
28-24 legislature about the affairs of local governments and recommend
28-25 necessary action;
28-26 (13) assist the governor in coordinating federal and
28-27 state activities affecting local governments;
29-1 (14) administer, as appropriate:
29-2 (A) state responsibilities for programs created
29-3 under the federal Economic Opportunity Act of 1964 (42 U.S.C.
29-4 Section 2701 et seq.);
29-5 (B) programs assigned to the department under
29-6 the Omnibus Budget Reconciliation Act of 1981 (Pub.L. No. 97-35);
29-7 and
29-8 (C) other federal acts creating economic
29-9 opportunity programs assigned to the department;
29-10 (15) develop a consumer education program to educate
29-11 consumers on executory contract transactions for the conveyance of
29-12 real property used or to be used as the consumer's residence;
29-13 (16) adopt rules that are necessary and proper to
29-14 carry out programs and responsibilities assigned by the legislature
29-15 or the governor; and
29-16 (17) perform other duties relating to local
29-17 governments that are assigned by the legislature or the governor.
29-18 (d) The center shall serve as a housing and community
29-19 services clearinghouse to provide information to the public, local
29-20 communities, housing providers, and other interested parties
29-21 regarding:
29-22 (1) the performance of each department program;
29-23 (2) the number of people served;
29-24 (3) the income of people served;
29-25 (4) the funding amounts distributed;
29-26 (5) allocation decisions;
29-27 (6) regional impact of department programs; and
30-1 (7) any other relevant information.
30-2 (e) The center shall compile the department's reports into
30-3 an integrated format and shall compile and maintain a list of all
30-4 affordable housing resources in the state, organized by community.
30-5 (f) The information required under Subsections (d) and (e)
30-6 must be readily available in:
30-7 (1) a hard-copy format; and
30-8 (2) a user-friendly format on the department's
30-9 website.
30-10 (g) The center shall provide information regarding the
30-11 department's housing and community affairs programs to the Texas
30-12 Information and Referral Network for inclusion in the statewide
30-13 information and referral network as required by Section 531.0312.
30-14 SECTION 1.20. Subchapter K, Chapter 2306, Government Code, is
30-15 amended by adding Sections 2306.256 and 2306.257 to read as
30-16 follows:
30-17 Sec. 2306.256. AFFORDABLE HOUSING PRESERVATION PROGRAM. (a)
30-18 The department shall develop and implement a program to preserve
30-19 affordable housing in this state.
30-20 (b) Through the program, the department shall:
30-21 (1) maintain data on housing projected to lose its
30-22 affordable status;
30-23 (2) develop policies necessary to ensure the
30-24 preservation of affordable housing in this state;
30-25 (3) advise other program areas with respect to the
30-26 policies; and
30-27 (4) assist those other program areas in implementing
31-1 the policies.
31-2 Sec. 2306.257. APPLICANT COMPLIANCE WITH STATE AND FEDERAL
31-3 LAWS PROHIBITING DISCRIMINATION: CERTIFICATION AND MONITORING. (a)
31-4 The department may provide assistance through a housing program
31-5 under this chapter only to an applicant who certifies the
31-6 applicant's compliance with:
31-7 (1) state and federal fair housing laws, including
31-8 Chapter 301, Property Code, Title VIII of the Civil Rights Act of
31-9 1968 (42 U.S.C. Section 3601 et seq.), and the Fair Housing
31-10 Amendments Act of 1988 (42 U.S.C. Section 3601 et seq.);
31-11 (2) the Civil Rights Act of 1964 (42 U.S.C. Section
31-12 2000a et seq.);
31-13 (3) the Americans with Disabilities Act of 1990 (42
31-14 U.S.C. Section 12101 et seq.); and
31-15 (4) the Rehabilitation Act of 1973 (29 U.S.C. Section
31-16 701 et seq.).
31-17 (b) In conjunction with the state Commission on Human
31-18 Rights, the department shall adopt rules governing the
31-19 certification process described by this section, including rules
31-20 establishing:
31-21 (1) procedures for certifying compliance;
31-22 (2) methods for measuring continued compliance; and
31-23 (3) different degrees of sanctions for noncompliance
31-24 and reasonable periods for correcting noncompliance.
31-25 (c) Sanctions imposed under Subsection (b)(3) may:
31-26 (1) include a public reprimand, termination of
31-27 assistance, and a bar on future eligibility for assistance through
32-1 a housing program under this chapter; and
32-2 (2) be imposed in addition to any action taken by the
32-3 state Commission on Human Rights.
32-4 (d) The department shall promptly notify the state
32-5 Commission on Human Rights if the department determines that a
32-6 program participant may have failed to comply with the laws listed
32-7 by Subsection (a).
32-8 SECTION 1.21. Sections 2306.358(a), (a-1), and (b),
32-9 Government Code, are amended to read as follows:
32-10 (a) Of the total qualified 501(c)(3) bonds issued under
32-11 Section 145 of the Internal Revenue Code of 1986 (26 U.S.C. Section
32-12 145) in each fiscal year, it is the express intent of the
32-13 legislature that the department shall allocate qualified 501(c)(3)
32-14 bonding authority as follows:
32-15 (1) [at least 50 percent of the total annual issuance
32-16 amount authorized through the memorandum of understanding provided
32-17 for in Subsection (b) of this section is reserved for the purposes
32-18 of new construction or acquisition with substantial rehabilitation;]
32-19 [(2)] not more than 25 percent of the total annual
32-20 issuance amount authorized through the memorandum of understanding
32-21 provided for in Subsection (b) [of this section] may be used for
32-22 projects in any one metropolitan area; and
32-23 (2) [(3)] at least 15 percent of the annual issuance
32-24 amount authorized through the memorandum of understanding provided
32-25 for in Subsection (b) [of this section] is reserved for projects in
32-26 rural areas.
32-27 (a-1) For the purposes of Subsection (a), "rural[:]
33-1 [(1) "Rural] area" and "metropolitan area" shall be
33-2 defined through the memorandum of understanding provided for in
33-3 Subsection (b) [of this section.]
33-4 [(2) "Substantial rehabilitation" means rehabilitation
33-5 of a project with a minimum of $5,000 of rehabilitation cost per
33-6 unit].
33-7 (b) A qualified 501(c)(3) bond may not be issued unless
33-8 approved by the Bond Review Board. In addition, the Bond Review
33-9 Board shall enter into a memorandum of understanding with the
33-10 department specifying the amount of bonds to be issued in each
33-11 fiscal year. The department and the Bond Review Board shall review
33-12 the memorandum of understanding annually to determine the specific
33-13 amount of bonds to be issued in each fiscal year. The Bond Review
33-14 Board may not approve a proposal to issue qualified 501(c)(3) bonds
33-15 unless they meet the requirements of this section, including the
33-16 memorandum of understanding, and all other laws that may apply.
33-17 SECTION 1.22. The heading to Subchapter Z, Chapter 2306,
33-18 Government Code, is amended to read as follows:
33-19 SUBCHAPTER Z. COLONIAS [COLONIA SELF-HELP CENTERS]
33-20 SECTION 1.23. Subchapter Z, Chapter 2306, Government Code, is
33-21 amended by amending Sections 2306.584 and 2306.585 and adding
33-22 Sections 2306.590 and 2306.591 to read as follows:
33-23 Sec. 2306.584. COLONIA RESIDENT ADVISORY COMMITTEE. (a) The
33-24 board [department] shall appoint not fewer than five persons who
33-25 are residents of colonias to serve on a colonia resident [an]
33-26 advisory committee. The members of the colonia resident advisory
33-27 committee shall be selected from lists of candidates submitted to
34-1 the board [department] by local nonprofit organizations and the
34-2 commissioners court of a county in which a self-help center is
34-3 located.
34-4 (b) The board [department] shall appoint one committee
34-5 member to represent each of the counties in which self-help centers
34-6 are located. Each committee member:
34-7 (1) must be a resident of a colonia in the county the
34-8 member represents; and
34-9 (2) may not be a board member, contractor, or employee
34-10 of or have any ownership interest in an entity that is awarded a
34-11 contract under this subchapter.
34-12 Sec. 2306.585. DUTIES OF COLONIA RESIDENT ADVISORY
34-13 COMMITTEE. (a) The colonia resident advisory committee shall
34-14 advise the board [department] regarding:
34-15 (1) the needs of colonia residents;
34-16 (2) appropriate and effective programs that are
34-17 proposed or are operated through the self-help centers; and
34-18 (3) activities that may be undertaken through the
34-19 self-help centers to better serve the needs of colonia residents.
34-20 (b) The colonia resident advisory committee shall meet
34-21 before the 30th day preceding the date on which a contract is
34-22 scheduled to be awarded for the operation of a self-help center and
34-23 may meet at other times.
34-24 Sec. 2306.590. COLONIA INITIATIVES ADVISORY COMMITTEE. (a)
34-25 The board shall establish a colonia initiatives advisory committee
34-26 that is composed of the following members appointed by the board:
34-27 (1) one member who resides in a colonia;
35-1 (2) one member who represents a nonprofit organization
35-2 that provides assistance to colonia residents;
35-3 (3) one member who represents a local political
35-4 subdivision containing all or part of a colonia;
35-5 (4) one member who represents private interests in
35-6 banking or land development; and
35-7 (5) one member who represents the public.
35-8 (b) Each member of the colonia initiatives advisory
35-9 committee other than the public member must reside within 150 miles
35-10 of the international border of this state.
35-11 (c) The colonia initiatives advisory committee shall:
35-12 (1) review public comments regarding the colonia needs
35-13 assessment incorporated into the state low income housing plan
35-14 under Section 2306.0721; and
35-15 (2) based on those public comments, recommend to the
35-16 board new colonia programs or improvements to existing colonia
35-17 programs.
35-18 Sec. 2306.591. BIENNIAL ACTION PLAN. (a) The office
35-19 established by the department to promote initiatives for colonias
35-20 shall prepare a biennial action plan addressing policy goals for
35-21 colonia programs, strategies to meet the policy goals, and the
35-22 projected outcomes with respect to the policy goals.
35-23 (b) The office shall solicit public comments regarding the
35-24 plan at a public hearing. At least six weeks before the public
35-25 hearing, the office shall prepare and publish an initial draft of
35-26 the plan.
35-27 (c) After the public hearing, the office must publish a
36-1 final plan that:
36-2 (1) lists any changes made to the initial draft of the
36-3 plan that are based on public comments regarding the initial draft;
36-4 and
36-5 (2) directly addresses those public comments.
36-6 (d) The office shall send the final plan to the colonia
36-7 initiatives advisory committee for review and comment. After
36-8 receiving comments, the office shall send the plan to the board for
36-9 final approval, with the comments of the colonia initiatives
36-10 advisory committee attached to the plan.
36-11 SECTION 1.24. Section 2306.589(c), Government Code, is
36-12 amended to read as follows:
36-13 (c) The department may use money in the colonia set-aside
36-14 fund for specific activities that assist colonias, including:
36-15 (1) the operation and activities of the self-help
36-16 centers established under this subchapter;
36-17 (2) reimbursement of colonia resident advisory
36-18 committee members and colonia initiatives advisory committee
36-19 members for their reasonable expenses in the manner provided by
36-20 Chapter 2110 [Article 6252-33, Revised Statutes,] or the General
36-21 Appropriations Act; and
36-22 (3) funding for the provision of water and sewer
36-23 service connections in accordance with Subsection (b).
36-24 SECTION 1.25. Subchapter AA, Chapter 2306, Government Code,
36-25 is amended to read as follows:
36-26 SUBCHAPTER AA. MANUFACTURED HOUSING DIVISION
36-27 Sec. 2306.6001 [2306.601]. DEFINITIONS. In this subchapter:
37-1 (1) "Division" means the manufactured housing
37-2 division.
37-3 (2) "Division director" means the executive director
37-4 of the division.
37-5 (3) "Manufactured Housing Board" means the governing
37-6 board of the division.
37-7 Sec. 2306.6002. REGULATION AND ENFORCEMENT. The department
37-8 shall administer and enforce the Texas Manufactured Housing
37-9 Standards Act (Article 5221f, Vernon's Texas Civil Statutes)
37-10 through the [manufactured housing] division. The manufactured
37-11 housing board and the division director shall exercise authority
37-12 and responsibilities assigned to them under that Act.
37-13 Sec. 2306.6003. MANUFACTURED HOUSING BOARD. (a) The
37-14 Manufactured Housing Board is an independent entity within the
37-15 department, is administratively attached to the department, and is
37-16 not an advisory body to the department.
37-17 (b) The Manufactured Housing Board shall carry out the
37-18 functions and duties conferred on the Manufactured Housing Board by
37-19 this subchapter and by other law.
37-20 Sec. 2306.6004. MANUFACTURED HOUSING BOARD MEMBERSHIP. (a)
37-21 The Manufactured Housing Board consists of five public members
37-22 appointed by the governor.
37-23 (b) A person is eligible to be appointed as a public member
37-24 of the Manufactured Housing Board if the person is a citizen of the
37-25 United States and a resident of this state.
37-26 (c) A person may not be a member of the Manufactured Housing
37-27 Board if the person or the person's spouse:
38-1 (1) is registered, certified, or licensed by a
38-2 regulatory agency in the field of manufactured housing;
38-3 (2) is employed by or participates in the management
38-4 of a business entity or other organization regulated by or
38-5 receiving money from the division;
38-6 (3) owns or controls, directly or indirectly, more
38-7 than a 10 percent interest in a business entity or other
38-8 organization regulated by or receiving money from the division; or
38-9 (4) uses or receives a substantial amount of tangible
38-10 goods, services, or money from the division other than compensation
38-11 or reimbursement authorized by law for Manufactured Housing Board
38-12 membership, attendance, or expenses.
38-13 (d) Appointments to the Manufactured Housing Board shall be
38-14 made without regard to the race, color, disability, sex, religion,
38-15 age, or national origin of the appointees.
38-16 Sec. 2306.6005. CONFLICT OF INTEREST. (a) In this section,
38-17 "Texas trade association" means a cooperative and voluntarily
38-18 joined association of business or professional competitors in this
38-19 state designed to assist its members and its industry or profession
38-20 in dealing with mutual business or professional problems and in
38-21 promoting their common interest.
38-22 (b) A person may not be a member of the Manufactured Housing
38-23 Board and may not be a division employee employed in a "bona fide
38-24 executive, administrative, or professional capacity," as that
38-25 phrase is used for purposes of establishing an exemption to the
38-26 overtime provisions of the federal Fair Labor Standards Act of 1938
38-27 (29 U.S.C. Section 201 et seq.), if:
39-1 (1) the person is an officer, employee, or paid
39-2 consultant of a Texas trade association in the field of
39-3 manufactured housing; or
39-4 (2) the person's spouse is an officer, manager, or
39-5 paid consultant of a Texas trade association in the field of
39-6 manufactured housing.
39-7 (c) A person may not be a member of the Manufactured Housing
39-8 Board or act as the general counsel to the Manufactured Housing
39-9 Board or the division if the person is required to register as a
39-10 lobbyist under Chapter 305 because of the person's activities for
39-11 compensation on behalf of a profession related to the operation of
39-12 the division.
39-13 Sec. 2306.6006. TERMS; VACANCY. (a) The members of the
39-14 Manufactured Housing Board serve staggered six-year terms, with the
39-15 terms of one or two members expiring on January 31 of each
39-16 odd-numbered year.
39-17 (b) A person may not serve two consecutive full six-year
39-18 terms as a member of the Manufactured Housing Board.
39-19 (c) If a vacancy occurs during a member's term, the governor
39-20 shall appoint a new member to fill the unexpired term.
39-21 Sec. 2306.6007. PRESIDING OFFICER. The governor shall
39-22 designate a member of the Manufactured Housing Board as the
39-23 presiding officer of the Manufactured Housing Board to serve in
39-24 that capacity at the will of the governor.
39-25 Sec. 2306.6008. GROUNDS FOR REMOVAL. (a) It is a ground for
39-26 removal from the Manufactured Housing Board that a member:
39-27 (1) does not have at the time of taking office the
40-1 qualifications required by Section 2306.6004(b);
40-2 (2) does not maintain during service on the
40-3 Manufactured Housing Board the qualifications required by Section
40-4 2306.6004(b);
40-5 (3) is ineligible for membership under Section
40-6 2306.6004(c) or 2306.6005;
40-7 (4) cannot, because of illness or disability,
40-8 discharge the member's duties for a substantial part of the
40-9 member's term; or
40-10 (5) is absent from more than half of the regularly
40-11 scheduled Manufactured Housing Board meetings that the member is
40-12 eligible to attend during a calendar year without an excuse
40-13 approved by a majority vote of the Manufactured Housing Board.
40-14 (b) The validity of an action of the Manufactured Housing
40-15 Board is not affected by the fact that it is taken when a ground
40-16 for removal of a Manufactured Housing Board member exists.
40-17 (c) If the division director has knowledge that a potential
40-18 ground for removal exists, the division director shall notify the
40-19 presiding officer of the Manufactured Housing Board of the
40-20 potential ground. The presiding officer shall then notify the
40-21 governor and the attorney general that a potential ground for
40-22 removal exists. If the potential ground for removal involves the
40-23 presiding officer, the division director shall notify the next
40-24 highest ranking officer of the Manufactured Housing Board, who
40-25 shall then notify the governor and the attorney general that a
40-26 potential ground for removal exists.
40-27 Sec. 2306.6009. REIMBURSEMENT. A Manufactured Housing Board
41-1 member may not receive compensation, but may be reimbursed for
41-2 actual travel expenses, including expenses for meals, lodging, and
41-3 transportation. A Manufactured Housing Board member is entitled to
41-4 reimbursement for transportation expenses as provided by the
41-5 General Appropriations Act.
41-6 Sec. 2306.6010. MEETINGS. (a) The Manufactured Housing
41-7 Board shall have regular meetings as the majority of the members
41-8 may specify and special meetings at the request of the presiding
41-9 officer, any two members, or the division director.
41-10 (b) Reasonable notice of all meetings shall be given as
41-11 prescribed by Manufactured Housing Board rules.
41-12 (c) The presiding officer shall preside at all meetings of
41-13 the Manufactured Housing Board. In the absence of the presiding
41-14 officer, the members present shall select one of the members to
41-15 preside at the meeting.
41-16 Sec. 2306.6011. TRAINING. (a) A person who is appointed to
41-17 and qualifies for office as a member of the Manufactured Housing
41-18 Board may not vote, deliberate, or be counted as a member in
41-19 attendance at a meeting of the Manufactured Housing Board until the
41-20 person completes a training program that complies with this
41-21 section.
41-22 (b) The training program must provide the person with
41-23 information regarding:
41-24 (1) the legislation that created the division and the
41-25 Manufactured Housing Board;
41-26 (2) the programs operated by the division;
41-27 (3) the role and functions of the division;
42-1 (4) the rules of the division, with an emphasis on the
42-2 rules that relate to disciplinary and investigatory authority;
42-3 (5) the current budget for the division;
42-4 (6) the results of the most recent formal audit of the
42-5 division;
42-6 (7) the requirements of:
42-7 (A) the open meetings law, Chapter 551;
42-8 (B) the public information law, Chapter 552;
42-9 (C) the administrative procedure law, Chapter
42-10 2001; and
42-11 (D) other laws relating to public officials,
42-12 including conflict-of-interest laws; and
42-13 (8) any applicable ethics policies adopted by the
42-14 division or the Texas Ethics Commission.
42-15 (c) A person appointed to the Manufactured Housing Board is
42-16 entitled to reimbursement, as provided by the General
42-17 Appropriations Act, for the travel expenses incurred in attending
42-18 the training program regardless of whether the attendance at the
42-19 program occurs before or after the person qualifies for office.
42-20 Sec. 2306.6012. APPROPRIATIONS; DONATIONS. (a) The
42-21 legislature shall separately appropriate money to the Manufactured
42-22 Housing Board within the appropriations to the department for all
42-23 matters relating to the operation of the division.
42-24 (b) The Manufactured Housing Board may accept gifts and
42-25 grants of money or property under this subchapter and shall spend
42-26 the money and use the property for the purpose for which the
42-27 donation was made, except that the expenditure of money or use of
43-1 property must promote the acceptance of HUD-Code manufactured homes
43-2 as a viable source of housing for very low, low, and moderate
43-3 income families.
43-4 Sec. 2306.6013. BUDGET; SHARING OF DEPARTMENT PERSONNEL,
43-5 EQUIPMENT, AND FACILITIES. (a) The Manufactured Housing Board
43-6 shall develop a budget for the operations of the department
43-7 relating to the division.
43-8 (b) The Manufactured Housing Board shall reduce
43-9 administrative costs by entering into an agreement with the
43-10 department to enable the sharing of department personnel,
43-11 equipment, and facilities.
43-12 Sec. 2306.6014. DIVISION DIRECTOR. (a) The Manufactured
43-13 Housing Board shall employ the division director. The division
43-14 director is the Manufactured Housing Board's chief executive and
43-15 administrative officer.
43-16 (b) The division director is charged with administering,
43-17 enforcing, and carrying out the functions and duties conferred on
43-18 the division director by this subchapter and by other law.
43-19 (c) The division director serves at the pleasure of the
43-20 Manufactured Housing Board.
43-21 Sec. 2306.6015 [2306.602]. PERSONNEL. The division director
43-22 may employ staff as necessary to perform the work of the
43-23 [manufactured housing] division and may prescribe their duties and
43-24 compensation. Subject to applicable personnel policies and
43-25 regulations, the division director may remove any division
43-26 employee.
43-27 Sec. 2306.6016. SEPARATION OF RESPONSIBILITIES. The
44-1 Manufactured Housing Board shall develop and implement policies
44-2 that clearly separate the policy-making responsibilities of the
44-3 Manufactured Housing Board and the management responsibilities of
44-4 the division director and staff of the division.
44-5 Sec. 2306.6017. STANDARDS OF CONDUCT. The division director
44-6 or the division director's designee shall provide to members of the
44-7 Manufactured Housing Board and to division employees, as often as
44-8 necessary, information regarding the requirements for office or
44-9 employment under this subchapter, including information regarding a
44-10 person's responsibilities under applicable laws relating to
44-11 standards of conduct for state officers or employees.
44-12 Sec. 2306.6018. EQUAL EMPLOYMENT OPPORTUNITY. (a) The
44-13 division director or the division director's designee shall prepare
44-14 and maintain a written policy statement that implements a program
44-15 of equal employment opportunity to ensure that all personnel
44-16 decisions are made without regard to race, color, disability, sex,
44-17 religion, age, or national origin.
44-18 (b) The policy statement must include:
44-19 (1) personnel policies, including policies relating to
44-20 recruitment, evaluation, selection, training, and promotion of
44-21 personnel, that show the intent of the division to avoid the
44-22 unlawful employment practices described by Chapter 21, Labor Code;
44-23 and
44-24 (2) an analysis of the extent to which the composition
44-25 of the division's personnel is in accordance with state and federal
44-26 law and a description of reasonable methods to achieve compliance
44-27 with state and federal law.
45-1 (c) The policy statement must:
45-2 (1) be updated annually;
45-3 (2) be reviewed by the state Commission on Human
45-4 Rights for compliance with Subsection (b)(1); and
45-5 (3) be filed with the governor's office.
45-6 Sec. 2306.6019. STATE EMPLOYEE INCENTIVE PROGRAM. The
45-7 division director or the division director's designee shall provide
45-8 to division employees information and training on the benefits and
45-9 methods of participation in the state employee incentive program
45-10 under Subchapter B, Chapter 2108.
45-11 Sec. 2306.6020 [2306.603]. RULES. (a) The Manufactured
45-12 Housing Board [director] shall adopt rules as necessary to
45-13 implement this subchapter and to administer and enforce the
45-14 manufactured housing program through the [manufactured housing]
45-15 division. Rules adopted by the Manufactured Housing Board
45-16 [director] are subject to Chapter 2001[, Government Code].
45-17 (b) The Manufactured Housing Board [director] may not adopt
45-18 rules restricting competitive bidding or advertising by a person
45-19 regulated by the division except to prohibit false, misleading, or
45-20 deceptive practices by that person.
45-21 (c) The Manufactured Housing Board [director] may not
45-22 include in the rules to prohibit false, misleading, or deceptive
45-23 practices by a person regulated by the division a rule that:
45-24 (1) restricts the use of any advertising medium;
45-25 (2) restricts the person's personal appearance or the
45-26 use of the person's voice in an advertisement;
45-27 (3) relates to the size or duration of an
46-1 advertisement used by the person; or
46-2 (4) restricts the use of a trade name in advertising
46-3 by the person.
46-4 Sec. 2306.6021. PUBLIC PARTICIPATION. The Manufactured
46-5 Housing Board shall develop and implement policies that provide the
46-6 public with a reasonable opportunity to appear before the
46-7 Manufactured Housing Board and to speak on any issue under the
46-8 jurisdiction of the division.
46-9 Sec. 2306.6022. COMPLAINTS. (a) The division shall maintain
46-10 a file on each written complaint filed with the division. The file
46-11 must include:
46-12 (1) the name of the person who filed the complaint;
46-13 (2) the date the complaint is received by the
46-14 division;
46-15 (3) the subject matter of the complaint;
46-16 (4) the name of each person contacted in relation to
46-17 the complaint;
46-18 (5) a summary of the results of the review or
46-19 investigation of the complaint; and
46-20 (6) an explanation of the reason the file was closed,
46-21 if the division closed the file without taking action other than to
46-22 investigate the complaint.
46-23 (b) The division shall provide to the person filing the
46-24 complaint and to each person who is a subject of the complaint a
46-25 copy of the division's policies and procedures relating to
46-26 complaint investigation and resolution.
46-27 (c) The division, at least quarterly until final disposition
47-1 of the complaint, shall notify the person filing the complaint and
47-2 each person who is a subject of the complaint of the status of the
47-3 investigation unless the notice would jeopardize an undercover
47-4 investigation.
47-5 (d) Except as otherwise provided by this subsection, the
47-6 private records of a license holder or other person that are
47-7 required or obtained by the division or its agents or employees in
47-8 connection with the investigation of a complaint are confidential.
47-9 The private records are not confidential if they are introduced in
47-10 a judicial or administrative proceeding or if the license holder or
47-11 other person, as applicable, consents in writing to the release of
47-12 the records. In this subsection, "private records" means all
47-13 records of a license holder or other person, other than a record
47-14 of:
47-15 (1) the person's name and address;
47-16 (2) the type of license sought by the person; and
47-17 (3) the location the person proposes to be covered by
47-18 the license.
47-19 Sec. 2306.6023 [2306.604]. SANCTIONS AND PENALTIES. (a) The
47-20 Manufactured Housing Board [director] shall adopt rules relating to
47-21 the administrative sanctions that may be enforced against a person
47-22 regulated by the [manufactured housing] division. If the person
47-23 violates a law relating to the regulation of manufactured housing
47-24 or a rule or order adopted or issued by the Manufactured Housing
47-25 Board [director] relating to the program, the division director
47-26 may:
47-27 (1) issue a written reprimand to the person that
48-1 specifies the violation;
48-2 (2) revoke or suspend the person's certificate of
48-3 registration; or
48-4 (3) place on probation a person whose certificate of
48-5 registration has been suspended.
48-6 (b) In addition to or in lieu of a sanction imposed under
48-7 Subsection (a) of this section, the Manufactured Housing Board
48-8 [board] may assess an administrative penalty in an amount not to
48-9 exceed $1,000 for each violation.
48-10 (c) If a suspension is probated, the division director may
48-11 require the person to report regularly to the division director on
48-12 matters that are the basis of the probation.
48-13 (d) If the division director proposes to suspend or revoke a
48-14 certificate of registration or the division director proposes to
48-15 assess an administrative penalty against a person regulated by the
48-16 division, the person is entitled to a hearing before a hearings
48-17 officer appointed by the division director. The Manufactured
48-18 Housing Board [director] by rule shall prescribe the procedures by
48-19 which a decision to suspend or revoke a certificate of registration
48-20 or to assess an administrative penalty are made and are appealable.
48-21 (e) In determining the amount of an administrative penalty
48-22 assessed under this section, the Manufactured Housing Board [board]
48-23 shall consider:
48-24 (1) the seriousness of the violation;
48-25 (2) the history of previous violations;
48-26 (3) the amount necessary to deter future violations;
48-27 (4) efforts made to correct the violation; and
49-1 (5) any other matters that justice may require.
49-2 (f) If, after investigation of a possible violation and the
49-3 facts surrounding that possible violation, the division director
49-4 determines that a violation has occurred, the division director
49-5 shall issue a preliminary report stating the facts on which the
49-6 conclusion that a violation occurred is based, recommending that an
49-7 administrative penalty under this section be imposed on the person
49-8 charged, and recommending the amount of that proposed penalty. The
49-9 division director shall base the recommended amount of the proposed
49-10 penalty on the seriousness of the violation determined by
49-11 consideration of the factors set forth in Subsection (e) [of this
49-12 section].
49-13 (g) Not later than the 14th day after the date on which the
49-14 preliminary report is issued, the division director shall give
49-15 written notice of the violation to the person charged. The notice
49-16 shall include:
49-17 (1) a brief summary of the charges;
49-18 (2) a statement of the amount of the penalty
49-19 recommended; and
49-20 (3) a statement of the right of the person charged to
49-21 a hearing on the occurrence of the violation, the amount of the
49-22 penalty, or both the occurrence of the violation and the amount of
49-23 the penalty.
49-24 (h) Not later than the 20th day after the date on which the
49-25 notice is received, the person charged may accept the determination
49-26 of the division director made under Subsection (f) [of this
49-27 section], including the recommended penalty, or make a written
50-1 request for a hearing on that determination.
50-2 (i) If the person charged with the violation accepts the
50-3 determination of the division director, the division director shall
50-4 issue an order approving the determination and ordering that the
50-5 person pay the recommended penalty.
50-6 (j) If the person charged fails to respond in a timely
50-7 manner to the notice or if the person requests a hearing, the
50-8 division director shall set a hearing, give written notice of the
50-9 hearing to the person, and designate a hearings examiner to conduct
50-10 the hearing. The hearings examiner shall make findings of fact and
50-11 conclusions of law and shall promptly issue to the Manufactured
50-12 Housing Board [board] a proposal for decision as to the occurrence
50-13 of the violation and a recommendation as to the amount of the
50-14 proposed penalty if a penalty is determined to be warranted. Based
50-15 on the findings of fact and conclusions of law and the
50-16 recommendations of the hearings examiner, the Manufactured Housing
50-17 Board [board] by order may find that a violation has occurred and
50-18 may assess a penalty, or may find that no violation has occurred.
50-19 (k) The division director shall give notice of the
50-20 Manufactured Housing Board's [board's] order to the person charged.
50-21 The notice must include:
50-22 (1) separate statements of the findings of fact and
50-23 conclusions of law;
50-24 (2) the amount of any penalty assessed;
50-25 (3) a statement of the right of the person charged to
50-26 judicial review of the Manufactured Housing Board's [commission's]
50-27 order; and
51-1 (4) any other information required by law.
51-2 (l) Not later than the 30th day after the date on which the
51-3 decision is final, the person charged shall:
51-4 (1) pay the penalty in full; or
51-5 (2) if the person files a petition for judicial review
51-6 contesting the fact of the violation, the amount of the penalty, or
51-7 both the fact of the violation and the amount of the penalty:
51-8 (A) forward the amount assessed to the division
51-9 [department] for deposit in an escrow account;
51-10 (B) in lieu of payment into escrow, post with
51-11 the division [department] a supersedeas bond for the amount of the
51-12 penalty, in a form approved by the division director and effective
51-13 until judicial review of the decision is final; or
51-14 (C) without paying the amount of the penalty or
51-15 posting the supersedeas bond, pursue the judicial review.
51-16 (m) A person charged with a penalty who is financially
51-17 unable to comply with Subsection (l)(2) [of this section] is
51-18 entitled to judicial review if the person files with the court, as
51-19 part of the person's petition for judicial review, a sworn
51-20 statement that the person is unable to meet the requirements of
51-21 that subsection.
51-22 (n) If the person charged does not pay the penalty and does
51-23 not pursue judicial review, the division [department] or the
51-24 attorney general may bring an action for the collection of the
51-25 penalty.
51-26 (o) Judicial review of the order of the Manufactured Housing
51-27 Board [board] assessing the penalty is subject to the substantial
52-1 evidence rule and shall be instituted by filing a petition with a
52-2 Travis County district court.
52-3 (p) If, after judicial review, the penalty is reduced or not
52-4 assessed, the division director shall remit to the person charged
52-5 the appropriate amount, plus accrued interest if the penalty has
52-6 been paid, or shall execute a release of the bond if a supersedeas
52-7 bond has been posted. The accrued interest on amounts remitted by
52-8 the division director under this subsection shall be paid at a rate
52-9 equal to the rate charged on loans to depository institutions by
52-10 the New York Federal Reserve Bank, and shall be paid for the period
52-11 beginning on the date that the assessed penalty is paid to the
52-12 division director and ending on the date the penalty is remitted.
52-13 (q) A penalty collected under this section shall be
52-14 deposited in the state treasury to the credit of the general
52-15 revenue fund.
52-16 (r) All proceedings conducted under this section and any
52-17 review or appeal of those proceedings are subject to Chapter 2001[,
52-18 Government Code].
52-19 (s) If it appears that a person is in violation of, or is
52-20 threatening to violate, any provision of the Texas Manufactured
52-21 Housing Standards Act (Article 5221f, Vernon's Texas Civil
52-22 Statutes), or a rule or order related to the administration and
52-23 enforcement of the manufactured housing program, the attorney
52-24 general or the division director may institute an action for
52-25 injunctive relief to restrain the person from continuing the
52-26 violation and for civil penalties not to exceed $1,000 for each
52-27 violation and not exceeding $250,000 in the aggregate. A civil
53-1 action filed under this subsection shall be filed in district court
53-2 in Travis County. The attorney general and the division director
53-3 may recover reasonable expenses incurred in obtaining injunctive
53-4 relief under this subsection, including court costs, reasonable
53-5 attorney's fees, investigative costs, witness fees, and deposition
53-6 expenses.
53-7 [Sec. 2306.605. ACCEPTANCE OF DONATIONS. The department may
53-8 accept gifts and grants of money or property under this chapter and
53-9 shall spend the money and use the property for the purpose for
53-10 which the donation was made, except that the expenditure of money
53-11 or use of property must promote the acceptance of HUD-Code
53-12 manufactured homes as a viable source of housing for very low, low,
53-13 and moderate income families.]
53-14 SECTION 1.26. Subchapter DD, Chapter 2306, Government Code,
53-15 is amended by adding Sections 2306.6741 and 2306.6761 to read as
53-16 follows:
53-17 Sec. 2306.6741. DEPARTMENT POLICY AND PROCEDURES REGARDING
53-18 RECIPIENTS OF CERTAIN FEDERAL HOUSING ASSISTANCE. (a) The
53-19 department by rule shall adopt a policy regarding the admittance to
53-20 low income housing tax credit properties of income-eligible
53-21 individuals and families receiving assistance under Section 8,
53-22 United States Housing Act of 1937 (42 U.S.C. Section 1437f).
53-23 (b) The policy must provide a reasonable minimum income
53-24 standard that is not prohibited by Section 2306.6724 and that is to
53-25 be used by owners of low income housing tax credit properties and
53-26 must place reasonable limits on the use of any other factors that
53-27 impede the admittance of individuals and families described by
54-1 Subsection (a) to those properties, including credit histories,
54-2 security deposits, and employment histories.
54-3 (c) The department by rule shall establish procedures to
54-4 monitor low income housing tax credit properties that refuse to
54-5 admit individuals and families described by Subsection (a). The
54-6 department by rule shall establish enforcement mechanisms with
54-7 respect to those properties, including a range of sanctions to be
54-8 imposed against the owners of those properties.
54-9 Sec. 2306.6761. QUALIFIED NONPROFIT ORGANIZATION. (a) A
54-10 qualified nonprofit organization may compete in any low income
54-11 housing tax credit allocation pool, including:
54-12 (1) the nonprofit allocation pool;
54-13 (2) the rural projects/prison communities allocation
54-14 pool; and
54-15 (3) the general projects allocation pool.
54-16 (b) A qualified nonprofit organization submitting an
54-17 application under this subchapter must have a controlling interest
54-18 in the project proposed to be financed with a low income housing
54-19 tax credit.
54-20 SECTION 1.27. Subtitle F, Title 4, Government Code, is
54-21 amended by adding Chapter 487 to read as follows:
54-22 CHAPTER 487. OFFICE OF RURAL COMMUNITY AFFAIRS
54-23 SUBCHAPTER A. GENERAL PROVISIONS
54-24 Sec. 487.001. DEFINITIONS. In this chapter:
54-25 (1) "Executive committee" means the executive
54-26 committee of the Office of Rural Community Affairs.
54-27 (2) "Office" means the Office of Rural Community
55-1 Affairs.
55-2 (Sections 487.002-487.020 reserved for expansion)
55-3 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
55-4 Sec. 487.021. EXECUTIVE COMMITTEE. (a) The executive
55-5 committee is the governing body of the office.
55-6 (b) The executive committee is composed of the following
55-7 nine members:
55-8 (1) three members appointed by the governor;
55-9 (2) three members appointed by the lieutenant
55-10 governor; and
55-11 (3) three members appointed by the governor based on a
55-12 list of eligible candidates submitted to the governor by the
55-13 speaker of the house of representatives.
55-14 (c) At least two persons appointed by the governor, by the
55-15 lieutenant governor, and by the governor based on the list
55-16 submitted by the speaker of the house of representatives must
55-17 possess a strong understanding of and commitment to rural interests
55-18 based on the individual's personal history, including residency,
55-19 occupation, and civic activities.
55-20 (d) Appointments to the executive committee shall be made
55-21 without regard to the race, color, disability, sex, religion, age,
55-22 or national origin of the appointees.
55-23 (e) The members of the executive committee serve for
55-24 staggered six-year terms, with the terms of three members expiring
55-25 February 1 of each odd-numbered year.
55-26 (f) Executive committee members receive no compensation but
55-27 are entitled to reimbursement of actual and necessary expenses
56-1 incurred in the performance of their duties.
56-2 (g) The members of the executive committee annually shall
56-3 elect a presiding officer from among the members of the executive
56-4 committee.
56-5 Sec. 487.022. CONFLICTS OF INTEREST. (a) In this section,
56-6 "Texas trade association" means a cooperative and voluntarily
56-7 joined association of business or professional competitors in this
56-8 state designed to assist its members and its industry or profession
56-9 in dealing with mutual business or professional problems and in
56-10 promoting their common interest.
56-11 (b) A person may not be a member of the executive committee
56-12 and may not be an office employee employed in a "bona fide
56-13 executive, administrative, or professional capacity," as that
56-14 phrase is used for purposes of establishing an exemption to the
56-15 overtime provisions of the federal Fair Labor Standards Act of 1938
56-16 (29 U.S.C. Section 201 et seq.), if:
56-17 (1) the person is an officer, employee, or paid
56-18 consultant of a Texas trade association in the field of rural
56-19 affairs; or
56-20 (2) the person's spouse is an officer, manager, or
56-21 paid consultant of a Texas trade association in the field of rural
56-22 affairs.
56-23 (c) A person may not be a member of the executive committee
56-24 or act as the general counsel to the executive committee or the
56-25 office if the person is required to register as a lobbyist under
56-26 Chapter 305 because of the person's activities for compensation on
56-27 behalf of a profession related to the operation of the office.
57-1 Sec. 487.023. TRAINING FOR MEMBERS OF EXECUTIVE COMMITTEE.
57-2 (a) A person who is appointed to and qualifies for office as a
57-3 member of the executive committee may not vote, deliberate, or be
57-4 counted as a member in attendance at a meeting of the executive
57-5 committee until the person completes a training program that
57-6 complies with this section.
57-7 (b) The training program must provide the person with
57-8 information regarding:
57-9 (1) the legislation that created the office and the
57-10 executive committee;
57-11 (2) the programs operated by the office;
57-12 (3) the role and functions of the office;
57-13 (4) the rules of the office, with an emphasis on any
57-14 rules that relate to disciplinary and investigatory authority;
57-15 (5) the current budget for the office;
57-16 (6) the results of the most recent formal audit of the
57-17 office;
57-18 (7) the requirements of:
57-19 (A) the open meetings law, Chapter 551;
57-20 (B) the public information law, Chapter 552;
57-21 (C) the administrative procedure law, Chapter
57-22 2001; and
57-23 (D) other laws relating to public officials,
57-24 including conflict-of-interest laws; and
57-25 (8) any applicable ethics policies adopted by the
57-26 executive committee or the Texas Ethics Commission.
57-27 (c) A person appointed to the executive committee is
58-1 entitled to reimbursement, as provided by general law and the
58-2 General Appropriations Act, for the travel expenses incurred in
58-3 attending the training program regardless of whether the attendance
58-4 at the program occurs before or after the person qualifies for
58-5 office.
58-6 Sec. 487.024. REMOVAL. (a) It is a ground for removal from
58-7 the executive committee that a member:
58-8 (1) does not have at the time of taking office the
58-9 qualifications required by Section 487.021;
58-10 (2) does not maintain during service on the executive
58-11 committee the qualifications required by Section 487.021;
58-12 (3) is ineligible for membership under Section
58-13 487.022;
58-14 (4) cannot, because of illness or disability,
58-15 discharge the member's duties for a substantial part of the
58-16 member's term; or
58-17 (5) is absent from more than half of the regularly
58-18 scheduled executive committee meetings that the member is eligible
58-19 to attend during a calendar year without an excuse approved by a
58-20 majority vote of the executive committee.
58-21 (b) The validity of an action of the executive committee is
58-22 not affected by the fact that it is taken when a ground for removal
58-23 of an executive committee member exists.
58-24 (c) If the executive director has knowledge that a potential
58-25 ground for removal exists, the executive director shall notify the
58-26 presiding officer of the executive committee of the potential
58-27 ground. The presiding officer shall then notify the governor and
59-1 the attorney general that a potential ground for removal exists. If
59-2 the potential ground for removal involves the presiding officer,
59-3 the executive director shall notify the next highest ranking
59-4 officer of the executive committee, who shall then notify the
59-5 governor and the attorney general that a potential ground for
59-6 removal exists.
59-7 Sec. 487.025. DIVISION OF RESPONSIBILITY. The executive
59-8 committee shall develop and implement policies that clearly
59-9 separate the policy-making responsibilities of the executive
59-10 committee and the management responsibilities of the executive
59-11 director and staff of the office.
59-12 Sec. 487.026. EXECUTIVE DIRECTOR. (a) The executive
59-13 committee may hire an executive director to serve as the chief
59-14 executive officer of the office and to perform the administrative
59-15 duties of the office.
59-16 (b) The executive director serves at the will of the
59-17 executive committee.
59-18 (c) The executive director may hire staff within guidelines
59-19 established by the executive committee.
59-20 Sec. 487.027. PUBLIC HEARINGS. The executive committee shall
59-21 develop and implement policies that provide the public with a
59-22 reasonable opportunity to appear before the executive committee and
59-23 to speak on any issue under the jurisdiction of the office.
59-24 Sec. 487.028. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT.
59-25 (a) The executive director or the executive director's designee
59-26 shall prepare and maintain a written policy statement that
59-27 implements a program of equal employment opportunity to ensure that
60-1 all personnel decisions are made without regard to race, color,
60-2 disability, sex, religion, age, or national origin.
60-3 (b) The policy statement must include:
60-4 (1) personnel policies, including policies relating to
60-5 recruitment, evaluation, selection, training, and promotion of
60-6 personnel, that show the intent of the office to avoid the unlawful
60-7 employment practices described by Chapter 21, Labor Code; and
60-8 (2) an analysis of the extent to which the composition
60-9 of the office's personnel is in accordance with state and federal
60-10 law and a description of reasonable methods to achieve compliance
60-11 with state and federal law.
60-12 (c) The policy statement must be:
60-13 (1) updated annually;
60-14 (2) reviewed by the state Commission on Human Rights
60-15 for compliance with Subsection (b)(1); and
60-16 (3) filed with the governor's office.
60-17 Sec. 487.029. STANDARDS OF CONDUCT. The executive director
60-18 or the executive director's designee shall provide to members of
60-19 the executive committee and to agency employees, as often as
60-20 necessary, information regarding the requirements for office or
60-21 employment under this chapter, including information regarding a
60-22 person's responsibilities under applicable laws relating to
60-23 standards of conduct for state officers or employees.
60-24 Sec. 487.030. COMPLAINTS. (a) The office shall maintain a
60-25 file on each written complaint filed with the office. The file must
60-26 include:
60-27 (1) the name of the person who filed the complaint;
61-1 (2) the date the complaint is received by the office;
61-2 (3) the subject matter of the complaint;
61-3 (4) the name of each person contacted in relation to
61-4 the complaint;
61-5 (5) a summary of the results of the review or
61-6 investigation of the complaint; and
61-7 (6) an explanation of the reason the file was closed,
61-8 if the office closed the file without taking action other than to
61-9 investigate the complaint.
61-10 (b) The office shall provide to the person filing the
61-11 complaint and to each person who is a subject of the complaint a
61-12 copy of the office's policies and procedures relating to complaint
61-13 investigation and resolution.
61-14 (c) The office, at least quarterly until final disposition
61-15 of the complaint, shall notify the person filing the complaint and
61-16 each person who is a subject of the complaint of the status of the
61-17 investigation unless the notice would jeopardize an undercover
61-18 investigation.
61-19 (Sections 487.031-487.050 reserved for expansion)
61-20 SUBCHAPTER C. GENERAL POWERS AND DUTIES
61-21 Sec. 487.051. POWERS AND DUTIES. (a) The office shall:
61-22 (1) administer the federal community development block
61-23 grant nonentitlement program; and
61-24 (2) promote the economic development and the general
61-25 welfare of rural communities in this state.
61-26 (b) The office may contract with public and private entities
61-27 in the performance of its responsibilities.
62-1 Sec. 487.052. RULES. The executive committee may adopt rules
62-2 as necessary to implement this chapter.
62-3 Sec. 487.053. GIFTS AND GRANTS. (a) The office may accept
62-4 gifts, grants, and donations from any organization for the purpose
62-5 of funding any activity under this chapter.
62-6 (b) All gifts, grants, and donations must be accepted in an
62-7 open meeting by a majority of the voting members of the executive
62-8 committee and reported in the public record of the meeting with the
62-9 name of the donor and purpose of the gift, grant, or donation.
62-10 Sec. 487.054. REPORT TO LEGISLATURE. Not later than January
62-11 1 of each odd-numbered year, the office shall submit a biennial
62-12 report to the legislature regarding the activities of the office
62-13 and any findings and recommendations relating to rural issues.
62-14 SECTION 1.28. Sections 2306.098, 2306.099, and 2306.100,
62-15 Government Code, are transferred to Chapter 487, Government Code,
62-16 redesignated as Subchapter D, Chapter 487, Government Code, and
62-17 amended and Section 487.1021 is added to that subchapter to read as
62-18 follows:
62-19 SUBCHAPTER D. COMMUNITY DEVELOPMENT BLOCK
62-20 GRANT NONENTITLEMENT PROGRAM
62-21 Sec. 487.101 [2306.098]. ADMINISTRATION OF COMMUNITY
62-22 DEVELOPMENT BLOCK GRANT PROGRAM; ALLOCATION OF FUNDS. (a) The
62-23 office [department] shall, under the Omnibus Budget Reconciliation
62-24 Act of 1981 (Pub.L. No. 97-35) and 24 CFR, Part 570, Subpart I,
62-25 administer the state's allocation of federal funds provided under
62-26 the community development block grant nonentitlement program
62-27 authorized by Title I of the Housing and Community Development Act
63-1 of 1974 (42 U.S.C. Section 5301 et seq.).
63-2 (b) Community development block grant program funds shall be
63-3 allocated to eligible counties and municipalities under office
63-4 [department] rules.
63-5 Sec. 487.102 [2306.099]. TRANSFER OF FEDERAL FUNDS: TEXAS
63-6 DEPARTMENT OF ECONOMIC DEVELOPMENT. (a) The office [department]
63-7 may enter into an interagency agreement with the Texas Department
63-8 of Economic Development [Commerce] to reimburse the Texas
63-9 Department of Economic Development [Commerce] for providing on
63-10 behalf of the office [department] marketing, underwriting, and any
63-11 other services on the portion of the federal community development
63-12 block grant funds allocated by the office [department] for economic
63-13 development activities.
63-14 (b) The office [department] shall allocate not more than 20
63-15 percent of the federal funds received by the department to the
63-16 Texas Department of Economic Development [Commerce] to be used for
63-17 economic development activities.
63-18 (c) The office shall monitor the activities undertaken by
63-19 the Texas Department of Economic Development [Commerce] under this
63-20 section [must be monitored by the department].
63-21 Sec. 487.1021. TRANSFER OF FEDERAL FUNDS: TEXAS DEPARTMENT
63-22 OF HOUSING AND COMMUNITY AFFAIRS. The office shall enter into an
63-23 interagency agreement with the Texas Department of Housing and
63-24 Community Affairs to reimburse the Texas Department of Housing and
63-25 Community Affairs for providing on behalf of the office oversight,
63-26 management, and any other services on the portion of the federal
63-27 community development block grant funds allocated for colonia
64-1 self-help centers.
64-2 Sec. 487.103 [2306.100]. STATE COMMUNITY DEVELOPMENT REVIEW
64-3 COMMITTEE. (a) The state community development review committee is
64-4 composed of 12 members appointed by the governor.
64-5 (b) A committee member must be:
64-6 (1) a member of the governing body of a county or
64-7 municipality eligible for funding under the community development
64-8 block grant program; or
64-9 (2) a county or municipal employee who is a supervisor
64-10 and whose regular duties include involvement in community
64-11 development activities.
64-12 (c) The ratio of county officials serving as committee
64-13 members to all committee members may not exceed the ratio of all
64-14 counties eligible for funding under the community development block
64-15 grant program to all eligible applicants.
64-16 (d) The governor shall designate the presiding officer of
64-17 the committee, who serves at the governor's pleasure.
64-18 (e) Committee members serve two-year terms expiring February
64-19 1 of each odd-numbered year.
64-20 (f) A committee member serves without compensation for
64-21 service on the committee, but is entitled to reimbursement for
64-22 reasonable and necessary expenses incurred in performing the
64-23 member's duties.
64-24 (g) Service on the committee by an officer or employee of a
64-25 county or municipality is an additional duty of the individual's
64-26 office or employment and is not dual office holding.
64-27 (h) The committee shall meet at least twice annually at the
65-1 executive director's call.
65-2 (i) The committee shall:
65-3 (1) consult with and advise the executive director on
65-4 the administration and enforcement of the community development
65-5 block grant program; and
65-6 (2) review funding applications of eligible counties
65-7 and municipalities and advise and assist the executive director
65-8 regarding the allocation of program funds to those applicants.
65-9 (j) The committee may annually recommend to the executive
65-10 director a formula for allocating funds to each geographic state
65-11 planning region established by the governor under Chapter 391,
65-12 Local Government Code. The formula must give preference to regions
65-13 according to the regions' needs.
65-14 SECTION 1.29. Section 531.0312, Government Code, is amended
65-15 by adding Subsection (d) to read as follows:
65-16 (d) The Texas Department of Housing and Community Affairs
65-17 shall provide the Texas Information and Referral Network with
65-18 information regarding the department's housing and community
65-19 affairs programs for inclusion in the statewide information and
65-20 referral network. The department shall provide the information in
65-21 a form determined by the commissioner and shall update the
65-22 information at least quarterly.
65-23 SECTION 1.30. Section 1372.023, Government Code, is amended
65-24 to read as follows:
65-25 Sec. 1372.023. DEDICATION OF PORTIONS [PORTION] OF STATE
65-26 CEILING TO TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS. (a)
65-27 Until August 15 [25], of that portion of the state ceiling that is
66-1 available exclusively for reservations by issuers of qualified
66-2 mortgage bonds, one-third is available exclusively to the Texas
66-3 Department of Housing and Community Affairs for the purpose of
66-4 issuing qualified mortgage bonds.
66-5 (b) Until August 15, of that portion of the state ceiling
66-6 that is available exclusively for reservations by issuers of
66-7 qualified residential rental project bonds, 25 percent is available
66-8 exclusively to the Texas Department of Housing and Community
66-9 Affairs in the manner described by Section 1372.0231.
66-10 (c) The Texas Department of Housing and Community Affairs
66-11 may not reserve a portion of the state ceiling that is available
66-12 exclusively for reservations by issuers of qualified residential
66-13 rental project bonds other than the portion dedicated to the
66-14 department under Subsection (b).
66-15 SECTION 1.31. Section 1372.025(b), Government Code, is
66-16 amended to read as follows:
66-17 (b) Subsection (a) does not apply to qualified mortgage
66-18 bonds or qualified residential rental project bonds made available
66-19 exclusively to the Texas Department of Housing and Community
66-20 Affairs under Section 1372.023.
66-21 SECTION 1.32. Sections 3(3), (7), and (8), Texas Manufactured
66-22 Housing Standards Act (Article 5221f, Vernon's Texas Civil
66-23 Statutes), are amended to read as follows:
66-24 (3) "Board" means the Manufactured Housing Board
66-25 within the Texas Department of Housing and Community Affairs
66-26 [governing board of the department].
66-27 (7) "Department" means the Texas Department of Housing
67-1 and Community Affairs operating through its manufactured housing
67-2 division.
67-3 (8) "Director" means the executive director of the
67-4 manufactured housing division of the Texas Department of Housing
67-5 and Community Affairs [department].
67-6 SECTION 1.33. Section 7, Texas Manufactured Housing Standards
67-7 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
67-8 amending Subsections (g) and (k) and adding Subsections (t)-(y) to
67-9 read as follows:
67-10 (g) All licenses are valid for one year and are renewable as
67-11 provided by the director. The board by rule may adopt a system
67-12 under which licenses expire on various dates during the year. For
67-13 the year in which the license expiration date is changed, the
67-14 department shall prorate license fees on a monthly basis so that
67-15 each license holder pays only that portion of the license fee that
67-16 is allocable to the number of months during which the license is
67-17 valid. On renewal of the license on the new expiration date, the
67-18 total license renewal fee is payable.
67-19 (k) The director shall conduct any hearing involving the
67-20 denial, renewal, revocation or suspension of a license in
67-21 accordance with Chapter 2001, Government Code. The department may
67-22 place on probation a person whose license is suspended. If a
67-23 license suspension is probated, the department may require the
67-24 person:
67-25 (1) to report regularly to the department on matters
67-26 that are the basis of the probation;
67-27 (2) to limit practice to the areas prescribed by the
68-1 department; or
68-2 (3) to continue or review professional education until
68-3 the person attains a degree of skill satisfactory to the department
68-4 in those areas that are the basis of the probation.
68-5 (t) A person whose license has expired may not engage in
68-6 activities that require a license until the license has been
68-7 renewed.
68-8 (u) A person whose license has been expired for 90 days or
68-9 less may renew the license by paying to the department a renewal
68-10 fee that is equal to 1-1/2 times the normally required renewal fee.
68-11 (v) A person whose license has been expired for more than 90
68-12 days but less than one year may renew the license by paying to the
68-13 department a renewal fee that is equal to two times the normally
68-14 required renewal fee.
68-15 (w) A person whose license has been expired for one year or
68-16 more may not renew the license. The person may obtain a new
68-17 license by complying with the requirements and procedures for
68-18 obtaining an original license.
68-19 (x) A person who was licensed in this state, moved to
68-20 another state, and is currently licensed and has been in practice
68-21 in the other state for the two years preceding the date of
68-22 application may obtain a new license without fulfilling the
68-23 instruction requirements of Subsection (o). The person must pay to
68-24 the department a fee that is equal to two times the normally
68-25 required renewal fee for the license.
68-26 (y) Not later than the 30th day before the date a person's
68-27 license is scheduled to expire, the department shall send written
69-1 notice of the impending expiration to the person at the person's
69-2 last known address according to the records of the department.
69-3 SECTION 1.34. Section 7(s), Texas Manufactured Housing
69-4 Standards Act (Article 5221f, Vernon's Texas Civil Statutes), as
69-5 added by Chapter 351, Acts of the 76th Legislature, Regular
69-6 Session, 1999, is amended to read as follows:
69-7 (s) A person licensed as a real estate broker or salesperson
69-8 under The Real Estate License Act (Article 6573a, Vernon's Texas
69-9 Civil Statutes) may act as a manufactured housing broker or
69-10 salesperson without holding a license under this Act or posting a
69-11 surety bond or other security under this Act, provided that any
69-12 negotiations for the sale, exchange, or lease-purchase of a
69-13 manufactured home are conducted for a consumer for whom the person
69-14 is also acting as a real estate broker or salesperson consistent
69-15 with Section 18(e) of this Act.
69-16 SECTION 1.35. Section 7A, Texas Manufactured Housing
69-17 Standards Act (Article 5221f, Vernon's Texas Civil Statutes), is
69-18 amended to read as follows:
69-19 Sec. 7A. EDUCATION PROGRAMS. (a) The department [director]
69-20 may recognize, prepare, or administer certification programs [and
69-21 continuing education programs] for persons regulated under this
69-22 Act. Participation in the programs is voluntary.
69-23 (b) The board shall recognize, prepare, or administer
69-24 continuing education programs for its license holders. A license
69-25 holder must participate in the continuing education programs to the
69-26 extent required by the board to keep the person's license.
69-27 (c) To prepare or administer a continuing education program
70-1 under this section, the board may contract with a private,
70-2 nonprofit, tax-exempt organization listed in Section 501(c)(3),
70-3 Internal Revenue Code of 1986 (26 U.S.C. Section 501(c)(3)) or with
70-4 an educational institution.
70-5 (d) The department [director] shall issue appropriate
70-6 certificates to those persons who complete a [the] certification
70-7 program or who participate in a [the] continuing education program
70-8 under this section.
70-9 SECTION 1.36. (a) The nine members of the governing board of
70-10 the Texas Department of Housing and Community Affairs who are
70-11 serving immediately before September 1, 2001, continue to serve as
70-12 members of the governing board of the department on and after that
70-13 date regardless of whether those members meet the membership
70-14 requirements prescribed by Subchapter B, Chapter 2306, Government
70-15 Code, as amended by this Act. However, the positions of those nine
70-16 members are abolished on the date on which a majority of the seven
70-17 board membership positions that are created under Subchapter B,
70-18 Chapter 2306, Government Code, as amended by this Act, are filled
70-19 by appointment by the governor and the appointees qualify for
70-20 office.
70-21 (b) The governor shall make the seven appointments to the
70-22 board under Subchapter B, Chapter 2306, Government Code, as amended
70-23 by this Act, as soon as possible on or after September 1, 2001. In
70-24 making the initial appointments, the governor shall designate two
70-25 members for terms expiring January 31, 2003, two members for terms
70-26 expiring January 31, 2005, and three members for terms expiring
70-27 January 31, 2007. The governor may reappoint any person to the
71-1 board who served as a member of the board before September 1, 2001.
71-2 (c) The changes in law made by this Act in amending
71-3 Subchapter B, Chapter 2306, Government Code, do not affect the
71-4 ability of the director of the Texas Department of Housing and
71-5 Community Affairs who is serving on the effective date of this Act
71-6 to continue to serve in that capacity until the governing board of
71-7 the department appointed by the governor under Subchapter B,
71-8 Chapter 2306, Government Code, as amended by this Act, employs a
71-9 director under Chapter 2306.
71-10 SECTION 1.37. (a) The governor shall make the appointments
71-11 to the Manufactured Housing Board created by Subchapter AA, Chapter
71-12 2306, Government Code, as amended by this Act, as soon as possible
71-13 on or after September 1, 2001. In making the initial appointments,
71-14 the governor shall designate one member for a term expiring January
71-15 31, 2003, two members for terms expiring January 31, 2005, and two
71-16 members for terms expiring January 31, 2007.
71-17 (b) Until the Manufactured Housing Board employs a division
71-18 director for the manufactured housing division of the Texas
71-19 Department of Housing and Community Affairs, the director of the
71-20 department may continue to carry out the functions of the division
71-21 director for that division.
71-22 SECTION 1.38. As soon as practicable after the effective date
71-23 of this Act, the new governing board of the Texas Department of
71-24 Housing and Community Affairs appointed by the governor under
71-25 Subchapter B, Chapter 2306, Government Code, as amended by this
71-26 Act, shall develop a strategic action plan to implement the
71-27 requirements of this Act. The board shall employ a director to
72-1 provide and monitor the provision of administrative support to the
72-2 board to assist in implementing the plan. The director shall
72-3 evaluate the organizational structure of the department, including
72-4 the evaluation of essential management positions, and shall make
72-5 any organizational changes necessary to implement the plan and the
72-6 other requirements of this Act.
72-7 SECTION 1.39. (a) Not later than December 31, 2002, the
72-8 Sunset Advisory Commission shall evaluate the success of the Texas
72-9 Department of Housing and Community Affairs in implementing the
72-10 requirements of this Act before that date, including actions taken
72-11 by the department with respect to the following:
72-12 (1) establishment of a functional governing board that
72-13 values public input and enables board members to develop the
72-14 expertise necessary to make informed decisions about and to ensure
72-15 the accountability of the department and the programs of the
72-16 department;
72-17 (2) establishment of an organizational structure to
72-18 develop and implement a statewide needs assessment and a
72-19 corresponding allocation process that:
72-20 (A) ensure that the state's objectives regarding
72-21 housing and community support services are fulfilled;
72-22 (B) ensure that the state's most critical needs
72-23 regarding housing and community support services are identified and
72-24 met;
72-25 (C) incorporate input from local entities;
72-26 (D) maximize the preservation of affordable
72-27 housing; and
73-1 (E) achieve the best use of state resources;
73-2 (3) development of policies and procedures that
73-3 clearly define the appropriate roles of board members, the
73-4 director, and department staff;
73-5 (4) implementation of rules outlining a formal process
73-6 to appeal board decisions; and
73-7 (5) establishment of project compliance procedures
73-8 that ensure that the programs of the department provide fair access
73-9 to housing and community support services in this state.
73-10 (b) Before January 1, 2003, the Sunset Advisory Commission
73-11 shall report the results of evaluation to the presiding officer of
73-12 each house of the legislature.
73-13 SECTION 1.40. (a) Not later than November 1, 2001, the
73-14 governor and the lieutenant governor shall appoint the initial
73-15 members of the executive committee of the Office of Rural Community
73-16 Affairs in accordance with Chapter 487, Government Code, as added
73-17 by this Act. The governor shall appoint two members and the
73-18 lieutenant governor shall appoint one member for terms expiring
73-19 February 1, 2003, the governor shall appoint two members and the
73-20 lieutenant governor shall appoint one member for terms expiring
73-21 February 1, 2005, and the governor shall appoint two members and
73-22 the lieutenant governor shall appoint one member for terms expiring
73-23 February 1, 2007. The executive committee may not take action
73-24 until a majority of the members have taken office.
73-25 (b) The Office of Rural Community Affairs shall employ an
73-26 executive director in accordance with Chapter 487, Government Code,
73-27 as added by this Act, not later than December 1, 2001.
74-1 SECTION 1.41. (a) On the date by which a majority of the
74-2 members of the executive committee of the Office of Rural Community
74-3 Affairs have taken office, all powers, duties, obligations, rights,
74-4 contracts, leases, records, personnel, property, and unspent and
74-5 unobligated appropriations and other funds of the Texas Department
74-6 of Housing and Community Affairs related to the federal community
74-7 development block grant nonentitlement program are transferred to
74-8 the Office of Rural Community Affairs.
74-9 (b) The transfer of the federal community development block
74-10 grant nonentitlement program to the Office of Rural Community
74-11 Affairs does not affect the validity of a right, privilege, or
74-12 obligation accrued, a contract or acquisition made, any liability
74-13 incurred, a permit or license issued, any penalty, forfeiture, or
74-14 punishment assessed, a rule adopted, a proceeding, investigation,
74-15 or remedy begun, a decision made, or other action taken by or in
74-16 connection with the program by the Texas Department of Housing and
74-17 Community Affairs.
74-18 (c) All rules, policies, procedures, and decisions of the
74-19 Texas Department of Housing and Community Affairs related to the
74-20 federal community development block grant nonentitlement program
74-21 are continued in effect as rules, policies, procedures, and
74-22 decisions of the Office of Rural Community Affairs until superseded
74-23 by a rule or other appropriate action of the Office of Rural
74-24 Community Affairs.
74-25 (d) Any action or proceeding before the Texas Department of
74-26 Housing and Community Affairs related to the federal community
74-27 development block grant nonentitlement program is transferred
75-1 without change in status to the Office of Rural Community Affairs,
75-2 and the Office of Rural Community Affairs assumes, without a change
75-3 in status, the position of the Texas Department of Housing and
75-4 Community Affairs in any action or proceeding related to the
75-5 program to which the Texas Department of Housing and Community
75-6 Affairs is a party.
75-7 (e) A fund or account administered by the Texas Department
75-8 of Economic Development relating to the federal community
75-9 development block grant nonentitlement program is not considered to
75-10 be abolished and re-created by this Act but is considered to be
75-11 transferred to the Office of Rural Community Affairs.
75-12 (f) Notwithstanding the changes in law made by this Act,
75-13 until the date the federal community development block grant
75-14 nonentitlement program is transferred to the Office of Rural
75-15 Community Affairs as provided by this Act, the Texas Department of
75-16 Housing and Community Affairs and the Texas Department of Economic
75-17 Development shall continue to exercise the powers and duties
75-18 assigned to the Texas Department of Housing and Community Affairs
75-19 and the Texas Department of Economic Development, respectively,
75-20 under the law as it existed immediately before the effective date
75-21 of this Act or as modified by another Act of the 77th Legislature,
75-22 Regular Session, 2001, that becomes law, and the former law is
75-23 continued in effect for that purpose.
75-24 SECTION 1.42. The rules of the Texas Department of Housing
75-25 and Community Affairs relating to the administration and
75-26 enforcement of the Texas Manufactured Housing Standards Act
75-27 (Article 5221f, Vernon's Texas Civil Statutes) are continued in
76-1 effect as rules of the manufactured housing division of the Texas
76-2 Department of Housing and Community Affairs until amended or
76-3 repealed by that division. Each affected license, certificate,
76-4 permit, bond, order, security, or registration issued or regulated
76-5 by the Texas Department of Housing and Community Affairs is
76-6 continued in effect as a license, certificate, permit, bond, order,
76-7 security, or registration of the manufactured housing division of
76-8 the Texas Department of Housing and Community Affairs.
76-9 SECTION 1.43. A complaint or investigation pending before the
76-10 Texas Department of Housing and Community Affairs on August 31,
76-11 2001, is transferred without change in status to the manufactured
76-12 housing division of the Texas Department of Housing and Community
76-13 Affairs on the effective date of this Act. A contested case
76-14 pending before the Texas Department of Housing and Community
76-15 Affairs on August 31, 2001, is transferred to the jurisdiction of
76-16 the manufactured housing division of the Texas Department of
76-17 Housing and Community Affairs on the effective date of this Act,
76-18 and actions taken in the proceeding shall be treated as if taken by
76-19 that division.
76-20 SECTION 1.44. A reference in a law to the Texas Department of
76-21 Housing and Community Affairs relating to the administration and
76-22 enforcement of the Texas Manufactured Housing Standards Act
76-23 (Article 5221f, Vernon's Texas Civil Statutes) means the
76-24 manufactured housing division of the Texas Department of Housing
76-25 and Community Affairs.
76-26 SECTION 1.45. Sections 2306.023, 2306.026, 2306.052(d), and
76-27 2306.092, Government Code, are repealed.
77-1 SECTION 1.46. Section 7(s), Texas Manufactured Housing
77-2 Standards Act (Article 5221f, Vernon's Texas Civil Statutes), as
77-3 added by Chapter 1369, Acts of the 76th Legislature, Regular
77-4 Session, 1999, is repealed.
77-5 SECTION 1.47. A member of the governing board of the Texas
77-6 Department of Housing and Community Affairs, of the Manufactured
77-7 Housing Board, or of the executive committee of the Office of Rural
77-8 Community Affairs is not subject to the prohibition imposed by
77-9 Section 2306.028, 2306.6011, or 487.023, Government Code, as
77-10 applicable, until September 1, 2002.
77-11 ARTICLE 2
77-12 SECTION 2.01. Section 2306.004, Government Code, is amended
77-13 by adding Subdivisions (31)-(34) to read as follows:
77-14 (31) "Economic submarket" means a group of borrowers
77-15 who have common home mortgage loan market eligibility
77-16 characteristics, including income level, credit history or credit
77-17 score, and employment characteristics, that are similar to Standard
77-18 and Poor's credit underwriting criteria.
77-19 (32) "Geographic submarket" means a geographic region
77-20 in the state, including a county, census tract, or municipality,
77-21 that shares similar levels of access to home mortgage credit from
77-22 the private home mortgage lending industry, as determined by the
77-23 department based on home mortgage lending data published by federal
77-24 and state banking regulatory agencies.
77-25 (33) "Rural county" means a county that is outside the
77-26 boundaries of a primary metropolitan statistical area or a
77-27 metropolitan statistical area.
78-1 (34) "Subprime loan" means a loan that is originated
78-2 by a lender designated as a subprime lender on the subprime lender
78-3 list maintained by the United States Department of Housing and
78-4 Urban Development or identified as a lender primarily engaged in
78-5 subprime lending under Section 2306.143.
78-6 SECTION 2.02. Section 2306.142, Government Code, is amended
78-7 to read as follows:
78-8 Sec. 2306.142. AUTHORIZATION OF BONDS. (a) Subject to the
78-9 requirements of this section [In its discretion], the board shall
78-10 authorize all bonds issued by the department.
78-11 (b) If the issuance is authorized by the board, the
78-12 department shall issue single-family mortgage revenue bonds to make
78-13 home mortgage credit available to economic and geographic
78-14 submarkets of borrowers who are not served or who are substantially
78-15 underserved by the conventional, Fannie Mae, Freddie Mac, or
78-16 Federal Housing Administration home mortgage lending industry or by
78-17 housing finance corporations organized under Chapter 394, Local
78-18 Government Code.
78-19 (c) The board by rule shall adopt a methodology for
78-20 determining through a market study the home mortgage credit needs
78-21 in underserved economic and geographic submarkets in the state. In
78-22 conducting the market study required by this subsection, the
78-23 department or its designee shall analyze for the underserved
78-24 economic and geographic submarkets, at a minimum, the following
78-25 factors:
78-26 (1) home ownership rates;
78-27 (2) loan volume;
79-1 (3) loan approval ratios;
79-2 (4) loan interest rates;
79-3 (5) loan terms;
79-4 (6) loan availability;
79-5 (7) type and number of dwelling units; and
79-6 (8) use of subprime mortgage loan products, comparing
79-7 the volume amount of subprime loans and interest rates to "A" paper
79-8 mortgage loans as defined by Standard and Poor's credit
79-9 underwriting criteria.
79-10 (d) The department or its designee shall analyze the
79-11 potential market demand, loan availability, and private sector home
79-12 mortgage lending rates available to extremely low, very low, low,
79-13 and moderate income borrowers in the rural counties of the state,
79-14 in census tracts in which the median family income is less than 80
79-15 percent of the median family income for the county in which the
79-16 census tract is located, and in the region of the state adjacent to
79-17 the international border of the state. The department or its
79-18 designee shall establish a process for serving those counties,
79-19 census tracts, and regions through the single-family mortgage
79-20 revenue bond program in a manner proportionate to the credit needs
79-21 of those areas as determined through the department's market study.
79-22 (e) Using the market study and the analysis required by this
79-23 section, the board shall evaluate the feasibility of a
79-24 single-family mortgage revenue bond program with loan marketing,
79-25 eligibility, underwriting, structuring, collection, and foreclosure
79-26 criteria and with loan services practices that are designed to meet
79-27 the credit needs of the underserved economic and geographic
80-1 submarkets of the state, including those submarkets served
80-2 disproportionately by subprime lenders.
80-3 (f) In evaluating a proposed bond program under this
80-4 section, the board shall consider, consistent with the reasonable
80-5 financial operation of the department, specific set-asides or
80-6 reservations of mortgage loans for underserved economic and
80-7 geographic submarkets in the state, including the reservation of
80-8 funds to serve borrowers who have "A-" to "B-" credit according to
80-9 Standard and Poor's credit underwriting criteria.
80-10 (g) The department may use any source of funds or subsidy
80-11 available to the department to provide credit enhancement, down
80-12 payment assistance, pre-homebuyer and post-homebuyer counseling,
80-13 interest rate reduction, and payment of incentive lender points to
80-14 accomplish the purposes of this section in a manner considered by
80-15 the board to be consistent with the reasonable financial operation
80-16 of the department.
80-17 (h) In allocating funds under Subsection (g), the
80-18 department's highest priority is to provide assistance to borrowers
80-19 in underserved economic and geographic submarkets in the state. If
80-20 the board determines that sufficient funds are available after
80-21 fully meeting the credit needs of borrowers in those submarkets,
80-22 the department may provide assistance to other borrowers.
80-23 (i) The board shall certify that each single-family mortgage
80-24 revenue bond issued by the department under this section is
80-25 structured in a manner that serves the credit needs of borrowers in
80-26 underserved economic and geographic submarkets in the state.
80-27 (j) After any board approval and certification of a
81-1 single-family mortgage revenue bond issuance, the department shall
81-2 submit the proposed bond issuance to the Bond Review Board for
81-3 review.
81-4 (k) In the state fiscal year beginning on September 1, 2001,
81-5 the department shall:
81-6 (1) adopt by rule a market study methodology as
81-7 required by Subsection (c);
81-8 (2) conduct the market study;
81-9 (3) propose for board review a single-family mortgage
81-10 revenue bond program, including loan feature details, a program for
81-11 borrower subsidies as provided by Subsections (g) and (h), and
81-12 origination and servicing infrastructure;
81-13 (4) identify reasonable capital markets financing;
81-14 (5) conduct a public hearing on the market study
81-15 results and the proposed bond program; and
81-16 (6) submit for review by the Bond Review Board the
81-17 market study results and, if approved and certified by the board,
81-18 the proposed bond program.
81-19 (l) In the state fiscal year beginning on September 1, 2002,
81-20 and in each subsequent state fiscal year, the department shall
81-21 allocate not less than 40 percent of the total single-family
81-22 mortgage revenue bond loan volume to meet the credit needs of
81-23 borrowers in underserved economic and geographic submarkets in the
81-24 state, subject to the identification of a satisfactory market
81-25 volume demand through the market study.
81-26 (m) On completion of the market study, if the board
81-27 determines in any year that bonds intended to be issued to achieve
82-1 the purposes of this section are unfeasible or would damage the
82-2 financial condition of the department, the board may formally
82-3 appeal to the Bond Review Board the requirements of Subsection (k)
82-4 or (l), as applicable. The Bond Review Board has sole authority to
82-5 modify or waive the required allocation levels.
82-6 (n) In addition to any other loan originators selected by
82-7 the department, the department shall authorize colonia self-help
82-8 centers and any other community-based, nonprofit institutions
82-9 considered appropriate by the board to originate loans on behalf of
82-10 the department. All non-financial institutions acting as loan
82-11 originators under this subsection must undergo adequate training,
82-12 as prescribed by the department, to participate in the bond
82-13 program. The department may require lenders to participate in
82-14 ongoing training and underwriting compliance audits to maintain
82-15 good standing to participate in the bond program. The department
82-16 may require that lenders meet appropriate eligibility standards as
82-17 prescribed by the department.
82-18 (o) The department shall structure all single-family
82-19 mortgage revenue bond issuances in a manner designed to recover the
82-20 full costs associated with conducting the activities required by
82-21 this section.
82-22 SECTION 2.03. Subchapter G, Chapter 2306, Government Code, is
82-23 amended by adding Section 2306.143 to read as follows:
82-24 Sec. 2306.143. ALTERNATIVE TO SUBPRIME LENDER LIST. (a) If
82-25 the United States Department of Housing and Urban Development
82-26 ceases to prepare or make public a subprime lender list, the market
82-27 study required by Section 2306.142 must annually survey the 100
83-1 largest refinancing lenders and the 100 largest home purchase loan
83-2 lenders in the state to identify lenders primarily engaged in
83-3 subprime lending.
83-4 (b) The lenders included in the survey must be identified on
83-5 the basis of home mortgage loan data reported by lenders under the
83-6 Home Mortgage Disclosure Act of 1975 (12 U.S.C. Section 2801 et
83-7 seq.) and the Community Reinvestment Act of 1977 (12 U.S.C. Section
83-8 2901 et seq.).
83-9 SECTION 2.04. Section 2306.583, Government Code, is amended
83-10 to read as follows:
83-11 Sec. 2306.583. SELF-HELP CENTERS: DESIGNATION. (a) The
83-12 department shall designate[:]
83-13 [(1)] a geographic area for the services provided by
83-14 each self-help center.
83-15 (b) In consultation with the colonia advisory committee and
83-16 the appropriate self-help center, the department shall designate[;
83-17 and]
83-18 [(2)] five colonias in each service area to receive
83-19 concentrated attention from that center.
83-20 (c) In consultation with the colonia advisory committee and
83-21 the appropriate self-help center, the [(b) The] department may
83-22 change the designation of colonias made under Subsection (b)
83-23 [(a)(2)].
83-24 SECTION 2.05. Section 2306.586, Government Code, is amended
83-25 by adding Subsection (e) to read as follows:
83-26 (e) Through a self-help center, a colonia resident may apply
83-27 for any direct loan or grant program operated by the department.
84-1 SECTION 2.06. Section 2306.587, Government Code, is amended
84-2 to read as follows:
84-3 Sec. 2306.587. OPERATION OF SELF-HELP CENTER; MONITORING.
84-4 (a) To operate a self-help center, the [The] department shall,
84-5 subject to the availability of revenue for that purpose, enter into
84-6 a four-year contract directly [for the operation of a self-help
84-7 center] with a local nonprofit organization, including a local
84-8 community action agency that qualifies as an eligible entity under
84-9 42 U.S.C. Section 9902, or a local housing authority that has
84-10 demonstrated the ability to carry out the functions of a self-help
84-11 center under this subchapter.
84-12 (b) The department is solely responsible for contract
84-13 oversight and for the monitoring of self-help centers under this
84-14 subchapter.
84-15 (c) The department and the self-help centers may apply for
84-16 and receive public or private gifts or grants to enable the centers
84-17 to achieve their purpose.
84-18 SECTION 2.07. Section 2306.589(a), Government Code, is
84-19 amended to read as follows:
84-20 (a) The department shall establish a fund in the department
84-21 designated as the colonia set-aside fund. The department may
84-22 contribute money to the fund from any available source of revenue
84-23 that the department considers appropriate to implement the purposes
84-24 of this subchapter.
84-25 SECTION 2.08. Sections 2306.753(a) and (b), Government Code,
84-26 are amended to read as follows:
84-27 (a) Subject to this section, the department shall establish
85-1 eligibility requirements for an owner-builder to receive a loan
85-2 under this subchapter. The eligibility requirements must establish
85-3 a priority for loans made under this subchapter to owner-builders
85-4 with an annual income, as determined under Subsection (b)(1)
85-5 [(b)(2)], of less than $17,500.
85-6 (b) To be eligible for a loan under this subchapter, an
85-7 owner-builder:
85-8 (1) [must reside with at least two other persons
85-9 related to the owner-builder in the first degree by consanguinity
85-10 or affinity, as determined under Subchapter B, Chapter 573;]
85-11 [(2)] may not have an annual income that exceeds 60
85-12 percent, as determined by the department, of the greater of the
85-13 state or local median family income, when combined with the income
85-14 of any person who resides with the owner-builder;
85-15 (2) [(3)] must have resided in this state for the
85-16 preceding six months;
85-17 (3) [(4)] must have successfully completed an
85-18 owner-builder education class under Section 2306.756; and
85-19 (4) [(5)] must agree to:
85-20 (A) provide at least 60 percent of the labor
85-21 necessary to build the proposed housing by working through a
85-22 state-certified owner-builder housing program; or
85-23 (B) provide an amount of labor equivalent to the
85-24 amount required under Paragraph (A) in connection with building
85-25 housing for others through a state-certified nonprofit
85-26 owner-builder housing program.
85-27 SECTION 2.09. Sections 2306.754(a) and (b), Government Code,
86-1 are amended to read as follows:
86-2 (a) The department may establish the minimum amount of a
86-3 loan under this subchapter, but a loan may not exceed $30,000
86-4 [$25,000].
86-5 (b) If it is not possible for an owner-builder to purchase
86-6 necessary real property and build adequate housing for $30,000
86-7 [$25,000], the owner-builder must obtain the amount necessary that
86-8 exceeds $30,000 [$25,000] from one or more local governmental
86-9 entities, nonprofit organizations, or private lenders. The total
86-10 amount of loans made by the department and other entities to an
86-11 owner-builder under this subchapter may not exceed $60,000.
86-12 SECTION 2.10. Section 2306.755, Government Code, is amended
86-13 to read as follows:
86-14 Sec. 2306.755. NONPROFIT OWNER-BUILDER HOUSING PROGRAMS. (a)
86-15 The department may certify nonprofit owner-builder housing programs
86-16 operated by a tax-exempt organization listed under Section
86-17 501(c)(3), Internal Revenue Code of 1986, to:
86-18 (1) qualify potential owner-builders for loans under
86-19 this subchapter;
86-20 (2) provide owner-builder education classes under
86-21 Section 2306.756;
86-22 (3) assist owner-builders in building housing; and
86-23 (4) originate or service [administer] loans made [by
86-24 the department] under this subchapter.
86-25 (b) The department by rule shall adopt procedures for the
86-26 certification of nonprofit owner-builder housing programs under
86-27 this section.
87-1 SECTION 2.11. Section 2306.758, Government Code, is amended
87-2 by amending Subsection (b) and adding Subsection (c) to read as
87-3 follows:
87-4 (b) The department may also make loans under this subchapter
87-5 from:
87-6 (1) available funds in the housing trust fund
87-7 established under Section 2306.201;
87-8 (2) federal block grants that may be used for the
87-9 purposes of this subchapter; and
87-10 (3) the owner-builder revolving loan fund established
87-11 under Section 2306.7581 [amounts received by the department in
87-12 repayment of loans made under this subchapter].
87-13 (c) In a state fiscal year, the department may use not more
87-14 than 10 percent of the revenue available for purposes of this
87-15 subchapter to enhance the ability of tax-exempt organizations
87-16 described by Section 2306.755(a) to implement the purposes of this
87-17 chapter.
87-18 SECTION 2.12. Subchapter FF, Chapter 2306, Government Code,
87-19 is amended by adding Section 2306.7581 to read as follows:
87-20 Sec. 2306.7581. OWNER-BUILDER REVOLVING LOAN FUND. (a) The
87-21 department shall establish an owner-builder revolving loan fund in
87-22 the department for the sole purpose of funding loans under this
87-23 subchapter.
87-24 (a-1) Using any available source of revenue, the department
87-25 shall transfer to the fund at least $3 million each state fiscal
87-26 year. This subsection expires August 31, 2010.
87-27 (b) The department shall deposit money received in repayment
88-1 of a loan under this subchapter to the owner-builder revolving loan
88-2 fund.
88-3 SECTION 2.13. Chapter 2306, Government Code, is amended by
88-4 adding Subchapter GG to read as follows:
88-5 SUBCHAPTER GG. COLONIA MODEL SUBDIVISION PROGRAM
88-6 Sec. 2306.781. DEFINITION. In this subchapter, "program"
88-7 means the colonia model subdivision program established under this
88-8 subchapter.
88-9 Sec. 2306.782. ESTABLISHMENT OF PROGRAM. The department
88-10 shall establish the colonia model subdivision program to promote
88-11 the development of new, high-quality, residential subdivisions that
88-12 provide:
88-13 (1) alternatives to substandard colonias; and
88-14 (2) housing options affordable to individuals and
88-15 families of extremely low and very low income who would otherwise
88-16 move into substandard colonias.
88-17 Sec. 2306.783. COLONIA MODEL SUBDIVISION REVOLVING LOAN
88-18 FUND. (a) The department shall establish a colonia model
88-19 subdivision revolving loan fund in the department. Money in the
88-20 fund may be used only for purposes of the program.
88-21 (a-1) The department may transfer money into the fund using
88-22 any available source of revenue.
88-23 (a-2) On application, the department may provide a loan
88-24 under this subchapter through an eligible political subdivision
88-25 using money from the portion of community development block grant
88-26 that is set aside under federal law to provide financial assistance
88-27 to colonias. In a state fiscal year, the department may not
89-1 provide loans under this subchapter using more than $2 million from
89-2 the set-aside for colonias.
89-3 (a-3) Subsections (a-1) and (a-2) and this subsection expire
89-4 August 31, 2010.
89-5 (b) The department shall deposit money received in repayment
89-6 of loans under this subchapter to the colonia model subdivision
89-7 revolving loan fund.
89-8 Sec. 2306.784. SUBDIVISION COMPLIANCE. Any subdivision
89-9 created with assistance from the fund must fully comply with all
89-10 state and local laws, including any process established under state
89-11 or local law for subdividing real property.
89-12 Sec. 2306.785. PROGRAM LOANS. (a) The department may make
89-13 loans under the program only to:
89-14 (1) colonia self-help centers established under
89-15 Subchapter Z; and
89-16 (2) community housing development organizations
89-17 certified by the department.
89-18 (b) A loan made under the program may be used only for the
89-19 payment of:
89-20 (1) costs associated with the purchase of real
89-21 property;
89-22 (2) costs of surveying, platting, and subdividing or
89-23 resubdividing real property;
89-24 (3) fees, insurance costs, or recording costs
89-25 associated with the development of the subdivision;
89-26 (4) costs of providing proper infrastructure necessary
89-27 to support residential uses;
90-1 (5) real estate commissions and marketing fees; and
90-2 (6) any other costs as the department by rule
90-3 determines to be reasonable and prudent to advance the purposes of
90-4 this subchapter.
90-5 (c) A loan made by the department under the program may not
90-6 bear interest and may not exceed a term of 36 months.
90-7 (d) The department may offer a borrower under the program
90-8 one loan renewal for each subdivision.
90-9 Sec. 2306.786. ADMINISTRATION OF PROGRAM; RULES. (a) In
90-10 administering the program, the department by rule shall adopt:
90-11 (1) any subdivision standards in excess of local
90-12 standards the department considers necessary;
90-13 (2) loan application procedures;
90-14 (3) program guidelines; and
90-15 (4) contract award procedures.
90-16 (b) The department shall adopt rules to:
90-17 (1) ensure that a borrower under the program sells
90-18 real property under the program only to an individual borrower,
90-19 nonprofit housing developer, or for-profit housing developer for
90-20 the purposes of constructing residential dwelling units; and
90-21 (2) require a borrower under the program to convey
90-22 real property under the program at a cost that is affordable to:
90-23 (A) individuals and families of extremely low
90-24 income; or
90-25 (B) individuals and families of very low income.
90-26 SECTION 2.14. Subchapter B, Chapter 11, Tax Code, is amended
90-27 by adding Section 11.184 to read as follows:
91-1 Sec. 11.184. COLONIA MODEL SUBDIVISION PROGRAM. (a) An
91-2 organization is entitled to an exemption from taxation of
91-3 unimproved real property it owns if the organization:
91-4 (1) meets the requirements of a charitable
91-5 organization provided by Sections 11.18(e) and (f);
91-6 (2) purchased the property or is developing the
91-7 property with proceeds of a loan made by the Texas Department of
91-8 Housing and Community Affairs under the colonia model subdivision
91-9 program under Subchapter GG, Chapter 2306, Government Code; and
91-10 (3) owns the property for the purpose of developing a
91-11 model colonia subdivision.
91-12 (b) Property may not be exempted under Subsection (a) after
91-13 the fifth anniversary of the date the organization acquires the
91-14 property.
91-15 (c) An organization entitled to an exemption under
91-16 Subsection (a) is also entitled to an exemption from taxation of
91-17 any building or tangible personal property the organization owns
91-18 and uses in the administration of its acquisition, building,
91-19 repair, or sale of property. To qualify for an exemption under
91-20 this subsection, property must be used exclusively by the
91-21 charitable organization, except that another individual or
91-22 organization may use the property for activities incidental to the
91-23 charitable organization's use that benefit the beneficiaries of the
91-24 charitable organization.
91-25 (d) For the purposes of Subsection (e), the chief appraiser
91-26 shall determine the market value of property exempted under
91-27 Subsection (a) and shall record the market value in the appraisal
92-1 records.
92-2 (e) If the organization that owns improved or unimproved
92-3 real property that has been exempted under Subsection (a) sells
92-4 the property to a person other than a person described by Section
92-5 2306.786(b)(1), Government Code, a penalty is imposed on the
92-6 property equal to the amount of the taxes that would have been
92-7 imposed on the property in each tax year that the property was
92-8 exempted from taxation under Subsection (a), plus interest at an
92-9 annual rate of 12 percent computed from the dates on which the
92-10 taxes would have become due.
92-11 SECTION 2.15. If the administration of the federal community
92-12 development block grant program is transferred to an agency other
92-13 than the Texas Department of Housing and Community Affairs, the new
92-14 administering agency shall enter into a memorandum of understanding
92-15 with the Texas Department of Housing and Community Affairs to
92-16 permit the housing department to receive and administer the portion
92-17 of community development block grant money specifically allocated
92-18 under the General Appropriations Act to fund the operation of
92-19 colonia self-help centers. The memorandum must require the new
92-20 administering agency to transfer to the housing department a
92-21 portion of the agency's total administrative funds in the same
92-22 ratio that the portion of community development block grant money
92-23 allocated for the self-help centers bears to the total yearly
92-24 allocation of community development block grant money. The
92-25 memorandum must require the new administering agency to continue to
92-26 fund the housing department's border field offices through the
92-27 community development block grant program and must require the
93-1 housing department to exercise oversight and supervision over those
93-2 field offices and staff.
93-3 SECTION 2.16. Section 2306.760, Government Code, is repealed.
93-4 ARTICLE 3
93-5 SECTION 3.01. Subchapter A, Chapter 2306, Government Code, is
93-6 amended by adding Section 2306.008 to read as follows:
93-7 Sec. 2306.008. PRESERVATION OF AFFORDABLE HOUSING. (a) The
93-8 department shall support in the manner described by Subsection (b)
93-9 the preservation of affordable housing for individuals with special
93-10 needs, as defined by Section 2306.511, and individuals and families
93-11 of low income at any location considered necessary by the
93-12 department.
93-13 (b) The department shall support the preservation of
93-14 affordable housing under this section by:
93-15 (1) making low interest financing and grants available
93-16 to private for-profit and nonprofit buyers who seek to acquire,
93-17 preserve, and rehabilitate affordable housing; and
93-18 (2) prioritizing available funding and financing
93-19 resources for affordable housing preservation activities.
93-20 SECTION 3.02. Subchapter H, Chapter 2306, Government Code, is
93-21 amended by adding Section 2306.185 to read as follows:
93-22 Sec. 2306.185. LONG-TERM AFFORDABILITY AND SAFETY OF
93-23 MULTIFAMILY RENTAL HOUSING DEVELOPMENTS. (a) The department shall
93-24 adopt policies and procedures to ensure that, for a multifamily
93-25 rental housing development funded through loans, grants, or tax
93-26 credits under this chapter, the owner of the development:
93-27 (1) keeps the rents affordable for low-income tenants
94-1 for the longest period that is economically feasible; and
94-2 (2) provides regular maintenance to keep the
94-3 development sanitary, decent, and safe.
94-4 (b) In implementing Subsection (a)(1) and in developing
94-5 underwriting standards and application scoring criteria for the
94-6 award of loans, grants, or tax credits to multifamily developments,
94-7 the department shall ensure that the economic benefits of longer
94-8 affordability terms and below market rate rents are accurately
94-9 assessed and considered.
94-10 (c) The department shall require that a recipient of funding
94-11 maintains the affordability of the multifamily housing development
94-12 for households of extremely low, very low, low, and moderate
94-13 incomes for the greater of a 30-year period from the date the
94-14 recipient takes legal possession of the housing or the remaining
94-15 term of the existing federal government assistance. In addition,
94-16 the agreement between the department and the recipient shall
94-17 require the renewal of rental subsidies if available and if the
94-18 subsidies are sufficient to maintain the economic viability of the
94-19 multifamily development.
94-20 (d) The development restrictions provided by Subsection (a)
94-21 and Section 2306.269 are enforceable by the department, by tenants
94-22 of the development, or by private parties against the initial owner
94-23 or any subsequent owner. The department shall require a land use
94-24 restriction agreement providing for enforcement of the restrictions
94-25 by the department, a tenant, or a private party that includes the
94-26 right to recover reasonable attorney's fees if the party seeking
94-27 enforcement of the restriction is successful.
95-1 (e) Subsections (c) and (d) and Section 2306.269 apply only
95-2 to multifamily rental housing developments to which the department
95-3 is providing one or more of the following forms of assistance:
95-4 (1) a loan or grant in an amount greater than 33
95-5 percent of the market value of the development on the date the
95-6 recipient took legal possession of the development;
95-7 (2) a loan guarantee for a loan in an amount greater
95-8 than 33 percent of the market value of the development on the date
95-9 the recipient took legal title to the development; or
95-10 (3) a low income housing tax credit.
95-11 (f) An owner of the housing development who intends to sell,
95-12 lease, prepay the loan insured by the United States Department of
95-13 Housing and Urban Development, opt out of a housing assistance
95-14 payments contract under Section 8, United States Housing Act of
95-15 1937 (42 U.S.C. Section 1437f), or otherwise dispose of the
95-16 development shall agree to provide notice to the department at
95-17 least 12 months before the date of any attempt to dispose of the
95-18 development, prepay the loan, or opt out of the Section 8 contract
95-19 to enable the department to attempt to locate a buyer who will
95-20 conform to the development restrictions provided by this section.
95-21 (g) This section does not apply to a multifamily rental
95-22 housing development supported by qualified 501(c)(3) bonds.
95-23 SECTION 3.03. Subchapter K, Chapter 2306, Government Code, is
95-24 amended by adding Section 2306.2561 to read as follows:
95-25 Sec. 2306.2561. AFFORDABLE HOUSING PRESERVATION PROGRAM:
95-26 LOANS AND GRANTS. (a) The department, through the housing finance
95-27 division, shall provide loans and grants to political subdivisions,
96-1 housing finance corporations, public housing authorities,
96-2 for-profit organizations, nonprofit organizations, and
96-3 income-eligible individuals, families, and households for purposes
96-4 of rehabilitating housing to preserve affordability of the housing.
96-5 (b) The department may use any available revenue, including
96-6 legislative appropriations, to provide loans and grants under this
96-7 section.
96-8 SECTION 3.04. Section 2306.269, Government Code, is amended
96-9 to read as follows:
96-10 Sec. 2306.269. TENANT AND MANAGER SELECTION. (a) The
96-11 department shall set standards for tenant and management selection
96-12 by a housing sponsor.
96-13 (b) The department shall prohibit multifamily rental housing
96-14 developments funded or administered by the department from:
96-15 (1) excluding an individual or family from admission
96-16 to the development because the individual or family participates in
96-17 the housing choice voucher program under Section 8, United States
96-18 Housing Act of 1937 (42 U.S.C. Section 1437f); and
96-19 (2) using a financial or minimum income standard for
96-20 an individual or family participating in the voucher program
96-21 described by Subdivision (1) that requires the individual or family
96-22 to have a monthly income of more than 2-1/2 times the individual's
96-23 or family's share of the total monthly rent payable to the owner of
96-24 the development unit.
96-25 SECTION 3.05. Chapter 2306, Government Code, is amended by
96-26 adding Subchapter HH to read as follows:
96-27 SUBCHAPTER HH. AFFORDABLE HOUSING PRESERVATION
97-1 Sec. 2306.801. DEFINITION. In this subchapter, "federally
97-2 subsidized" means receiving financial assistance through a federal
97-3 program administered by the Secretary of Housing and Urban
97-4 Development or the Secretary of Agriculture under which housing
97-5 assistance is provided on the basis of income, including a program
97-6 under:
97-7 (1) Section 221(d), National Housing Act (12 U.S.C.
97-8 Section 1715l(d));
97-9 (2) Section 236, National Housing Act (12 U.S.C.
97-10 Section 1715z-1);
97-11 (3) Section 202, Housing Act of 1959 (12 U.S.C.
97-12 Section 1701q);
97-13 (4) Section 101, Housing and Urban Development Act of
97-14 1965 (12 U.S.C. Section 1701s);
97-15 (5) Section 514, 515, or 516, Housing Act of 1949 (42
97-16 U.S.C. Section 1484, 1485, or 1486); or
97-17 (6) Section 8, United States Housing Act of 1937 (42
97-18 U.S.C. Section 1437f).
97-19 Sec. 2306.802. MULTIFAMILY HOUSING PRESERVATION CLASSES. The
97-20 department shall establish two classes of priorities of
97-21 developments to preserve multifamily housing. The classes, in
97-22 order of descending priority, are:
97-23 (1) class A, which includes any federally subsidized
97-24 multifamily housing development at risk because the contract
97-25 granting a federal subsidy with a stipulation to maintain
97-26 affordability is nearing expiration or because the
97-27 government-insured mortgage on the property is eligible for
98-1 prepayment or near the end of its mortgage term; and
98-2 (2) class B, which includes any other multifamily
98-3 housing development with low-income use or rental affordability
98-4 restrictions.
98-5 Sec. 2306.803. AT-RISK MULTIFAMILY HOUSING: IDENTIFICATION,
98-6 PRIORITIZATION, AND PRESERVATION. (a) The department shall
98-7 determine the name and location of and the number of units in each
98-8 multifamily housing development that is at risk of losing its
98-9 low-income use restrictions and subsidies and that meets the
98-10 requirements of a class A priority described by Section 2306.802.
98-11 (b) The department shall maintain an accurate list of those
98-12 developments on the department's website.
98-13 (c) The department shall develop cost estimates for the
98-14 preservation and rehabilitation of the developments in priority
98-15 class A.
98-16 (d) The department shall contact owners of developments
98-17 assigned a class A priority under this section and shall attempt to
98-18 negotiate with those owners to ensure continued affordability for
98-19 individuals and families of low income under the federal housing
98-20 assistance program for those developments.
98-21 Sec. 2306.804. USE OF HOUSING PRESERVATION RESOURCES. (a)
98-22 To the extent possible, the department shall use available
98-23 resources for the preservation and rehabilitation of the
98-24 multifamily housing developments identified and listed under
98-25 Section 2306.803.
98-26 (b) To the extent possible, the department shall allocate
98-27 low-income housing tax credits to applications involving the
99-1 preservation of developments assigned a class A priority under
99-2 Section 2306.803 and in both urban and rural communities in
99-3 approximate proportion to the housing needs of each uniform state
99-4 service region.
99-5 (c) The department shall give priority to providing
99-6 financing or funding to a buyer who is supported or approved by an
99-7 association of residents of the multifamily housing development.
99-8 Sec. 2306.805. HOUSING PRESERVATION INCENTIVES PROGRAM. (a)
99-9 The department shall establish and administer a housing
99-10 preservation incentives program to provide incentives through loan
99-11 guarantees, loans, and grants to political subdivisions, housing
99-12 finance corporations, public housing authorities, for-profit
99-13 organizations, and nonprofit organizations for the acquisition and
99-14 rehabilitation of multifamily housing developments assigned a class
99-15 A or class B priority under Section 2306.803.
99-16 (b) A loan issued by a lender participating in the program
99-17 must be fully underwritten by the department.
99-18 (c) Consistent with the requirements of federal law, the
99-19 department may guarantee loans issued under the program by
99-20 obtaining a Section 108 loan guarantee from the United States
99-21 Department of Housing and Urban Development under the Housing and
99-22 Community Development Act of 1974 (42 U.S.C. Section 5308).
99-23 (d) Grants under this program may include direct subsidies
99-24 offered as an equity contribution to enable an owner to acquire and
99-25 rehabilitate a class A or class B priority property described by
99-26 Section 2306.802. Grants may also be offered to provide
99-27 consultation and technical assistance services to a nonprofit
100-1 organization seeking to acquire and rehabilitate a class A or class
100-2 B priority property.
100-3 (e) A housing development that benefits from the incentive
100-4 program under this section is subject to the requirements
100-5 concerning:
100-6 (1) long-term affordability and safety prescribed by
100-7 Section 2306.185; and
100-8 (2) tenant and manager selection prescribed by Section
100-9 2306.269.
100-10 SECTION 3.06. Chapter 2306, Government Code, is amended by
100-11 adding Subchapter II to read as follows:
100-12 SUBCHAPTER II. MULTIFAMILY HOUSING DEVELOPMENTS:
100-13 PRESERVATION OF AFFORDABILITY
100-14 Sec. 2306.851. APPLICATION. (a) This subchapter applies
100-15 only to a property owner of a multifamily housing development that
100-16 is insured or assisted under a program under Section 8, United
100-17 States Housing Act of 1937 (42 U.S.C. Section 1437f), or that is:
100-18 (1) insured or assisted under a program under:
100-19 (A) Section 221(d)(3), National Housing Act (12
100-20 U.S.C. Section 1715l);
100-21 (B) Section 236, National Housing Act (12 U.S.C.
100-22 Section 1715z-1); or
100-23 (C) Section 514, 515, or 516, Housing Act of
100-24 1949 (42 U.S.C. Section 1484, 1485, or 1486); and
100-25 (2) financed by a mortgage that is eligible for
100-26 prepayment at the option of the property owner.
100-27 (b) This subchapter does not apply to the disposal of
101-1 property because of:
101-2 (1) a governmental taking by eminent domain or
101-3 negotiated purchase;
101-4 (2) a foreclosure action;
101-5 (3) a transfer by gift, devise, or operation of law;
101-6 or
101-7 (4) a sale to a person who would be entitled to an
101-8 interest in the property if the property owner died intestate.
101-9 (c) This subchapter does not apply to property included in a
101-10 restructuring program with a participating administrative entity
101-11 designated by the United States Department of Housing and Urban
101-12 Development.
101-13 Sec. 2306.852. PROPERTY OWNER RESTRICTION. Except as
101-14 provided by this subchapter, a property owner to whom this
101-15 subchapter applies may not sell, lease, or otherwise dispose of a
101-16 multifamily housing development described by Section 2306.851(a) or
101-17 take any other action if that action will cause the disruption or
101-18 discontinuance of:
101-19 (1) the development's federal insurance or assistance;
101-20 or
101-21 (2) the provision of low-income housing assistance to
101-22 residents of the development.
101-23 Sec. 2306.853. NOTICE OF INTENT. (a) A property owner of a
101-24 multifamily housing development may take an action, sell, lease, or
101-25 otherwise dispose of the development subject to the restriction
101-26 under Section 2306.852 if the property owner provides notice by
101-27 mail of the owner's intent to the residents of the development and
102-1 to the department.
102-2 (b) The notice required by Subsection (a) must indicate, as
102-3 applicable, that the property owner intends to prepay a mortgage
102-4 under a program described by Section 2306.851(a)(1) or that a
102-5 contract formed under a program under Section 8, United States
102-6 Housing Act of 1937 (42 U.S.C. Section 1437f), will expire.
102-7 (c) The property owner shall provide the notice required by
102-8 Subsection (a) before the 90th day preceding the date of mortgage
102-9 prepayment or contract expiration, as applicable, and as otherwise
102-10 required by federal law.
102-11 (d) The notice required by this section is sufficient if the
102-12 notice meets the requirements of Section 8(c)(8), United States
102-13 Housing Act of 1937 (42 U.S.C. Section 1437f(c)(8)).
102-14 SECTION 3.07. (a) The Texas Department of Housing and
102-15 Community Affairs shall adopt the policies and procedures on the
102-16 long-term affordability and safety of multifamily rental housing
102-17 developments under Section 2306.185, Government Code, as added by
102-18 this Act, not later than November 1, 2001.
102-19 (b) The enforcement of the restrictions concerning
102-20 multifamily rental housing developments under Section 2306.185,
102-21 Government Code, as added by this Act, applies only to developments
102-22 that receive assistance from the Texas Department of Housing and
102-23 Community Affairs on or after January 1, 2002.
102-24 (c) The enforcement of restrictions concerning tenant and
102-25 manager selection under Section 2306.269, Government Code, as
102-26 amended by this Act, applies only to housing developments that
102-27 receive assistance from the Texas Department of Housing and
103-1 Community Affairs on or after January 1, 2002.
103-2 (d) The Texas Department of Housing and Community Affairs
103-3 shall create an initial list of multifamily housing developments
103-4 that are ranked by priority as required by Section 2306.803,
103-5 Government Code, as added by this Act, not later than January 1,
103-6 2002.
103-7 (e) If community development block grant funds are
103-8 transferred to another state agency, the Texas Department of
103-9 Housing and Community Affairs shall negotiate a memorandum of
103-10 understanding to permit the implementation of Section 2306.805(c),
103-11 Government Code, as added by this Act.
103-12 (f) The changes in law made by this article apply to a
103-13 multifamily housing development described by Section 2306.851,
103-14 Government Code, as added by this Act, that a property owner
103-15 intends to sell, lease, or otherwise dispose of on or after January
103-16 1, 2002.
103-17 ARTICLE 4
103-18 SECTION 4.01. Section 2306.072(c), Government Code, is
103-19 amended to read as follows:
103-20 (c) The report must include:
103-21 (1) a complete operating and financial statement of
103-22 the department;
103-23 (2) a comprehensive statement of the activities of the
103-24 department during the preceding year to address the needs
103-25 identified in the state low income housing plan prepared as
103-26 required by Section 2306.0721, including:
103-27 (A) a statistical and narrative analysis of the
104-1 department's performance in addressing the housing needs of
104-2 individuals and families of low and very low income;
104-3 (B) the ethnic and racial composition of
104-4 individuals and families applying for and receiving assistance from
104-5 each housing-related program operated by the department; and
104-6 (C) the department's progress in meeting the
104-7 goals established in the previous housing plan;
104-8 (3) an explanation of the efforts made by the
104-9 department to ensure the participation of individuals of low income
104-10 and their community-based institutions in department programs that
104-11 affect them;
104-12 (4) a statement of the evidence that the department
104-13 has made an affirmative effort to ensure the involvement of
104-14 individuals of low income and their community-based institutions in
104-15 the allocation of funds and the planning process;
104-16 (5) a statistical analysis, delineated according to
104-17 each ethnic and racial group served by the department, that
104-18 indicates the progress made by the department in implementing the
104-19 state low income housing plan in each of the uniform state service
104-20 regions;
104-21 (6) an analysis, based on information provided by the
104-22 fair housing sponsor reports required under Section 2306.0724 and
104-23 other available data, of fair housing opportunities in each housing
104-24 development that receives financial assistance from the department
104-25 that includes the following information for each housing
104-26 development that contains 20 or more living units:
104-27 (A) the street address and municipality or
105-1 county in which the property is located;
105-2 (B) the telephone number of the property
105-3 management or leasing agent;
105-4 (C) the total number of units, reported by
105-5 bedroom size;
105-6 (D) [(C)] the total number of units, reported by
105-7 bedroom size, designed for individuals who are physically
105-8 challenged or who have special needs and the number of these
105-9 individuals served annually [as reported by each housing sponsor];
105-10 (E) the rent for each type of rental unit,
105-11 reported by bedroom size [(D) a statistical analysis of average
105-12 rents reported by county];
105-13 (F) [(E)] the race or ethnic makeup of each
105-14 project [as reported annually by each housing sponsor];
105-15 (G) [(F)] the number of units occupied by
105-16 individuals receiving government-supported housing assistance and
105-17 the type of assistance received [as reported by each housing
105-18 sponsor];
105-19 (H) the number of units occupied by individuals
105-20 and families of extremely low income, very low income, low income,
105-21 moderate income, and other levels of income;
105-22 (I) [(G)] a statement as to whether the
105-23 department has been notified of a violation of the fair housing law
105-24 that has been filed with the United States Department of Housing
105-25 and Urban Development, the Commission on Human Rights, or the
105-26 United States Department of Justice; and
105-27 (J) [(H)] a statement as to whether the
106-1 development has any instances of material noncompliance with bond
106-2 indentures or deed restrictions discovered through the normal
106-3 monitoring activities and procedures that include meeting occupancy
106-4 requirements or rent restrictions imposed by deed restriction or
106-5 financing agreements; [and]
106-6 (7) a report on the geographic distribution of low
106-7 income housing tax credits, the amount of unused low income housing
106-8 tax credits, and the amount of low income housing tax credits
106-9 received from the federal pool of unused funds from other states;
106-10 and
106-11 (8) a statistical analysis, based on information
106-12 provided by the fair housing sponsor reports required by Section
106-13 2306.0724 and other available data, of average rents reported by
106-14 county.
106-15 SECTION 4.02. Subchapter D, Chapter 2306, Government Code, is
106-16 amended by adding Section 2306.0724 to read as follows:
106-17 Sec. 2306.0724. FAIR HOUSING SPONSOR REPORT. (a) The
106-18 department shall require the owner of each housing development that
106-19 receives financial assistance from the department and that contains
106-20 20 or more living units to submit an annual fair housing sponsor
106-21 report. The report must include the relevant information necessary
106-22 for the analysis required by Section 2306.072(c)(6). In compiling
106-23 the information for the report, the owner of each housing
106-24 development shall use data current as of January 1 of the reporting
106-25 year.
106-26 (b) The department shall adopt rules regarding the procedure
106-27 for filing the report.
107-1 (c) The department shall maintain the reports in electronic
107-2 and hard-copy formats readily available to the public at no cost.
107-3 (d) A housing sponsor who fails to file a report in a timely
107-4 manner is subject to the following sanctions, as determined by the
107-5 department:
107-6 (1) denial of a request for additional funding; or
107-7 (2) an administrative penalty in an amount not to
107-8 exceed $1,000, assessed in the manner provided for an
107-9 administrative penalty under Section 2306.604.
107-10 SECTION 4.03. Section 2306.077, Government Code, is amended
107-11 by adding Subsections (d) and (e) to read as follows:
107-12 (d) The department shall provide for annual housing sponsor
107-13 reports required by Section 2306.0724 to be filed through the
107-14 Internet.
107-15 (e) The department shall provide for reports regarding
107-16 housing units designed for persons with disabilities made under
107-17 Section 2306.078 to be filed through the Internet.
107-18 SECTION 4.04. Subchapter D, Chapter 2306, Government Code, is
107-19 amended by adding Section 2306.078 to read as follows:
107-20 Sec. 2306.078. INFORMATION REGARDING HOUSING FOR PERSONS
107-21 WITH DISABILITIES. (a) The department shall establish a system
107-22 that requires owners of state or federally assisted housing
107-23 developments with 20 or more housing units to report information
107-24 regarding housing units designed for persons with disabilities.
107-25 (b) The system must provide for each owner of a development
107-26 described by Subsection (a) with at least one housing unit designed
107-27 for a person with a disability to enter the following information
108-1 on the department's Internet site:
108-2 (1) the name, if any, of the development;
108-3 (2) the street address of the development;
108-4 (3) the number of housing units in the development
108-5 that are designed for persons with disabilities and that are
108-6 available for lease;
108-7 (4) the number of bedrooms in each housing unit
108-8 designed for a person with a disability;
108-9 (5) the special features that characterize each
108-10 housing unit's suitability for a person with a disability;
108-11 (6) the rent for each housing unit designed for a
108-12 person with a disability; and
108-13 (7) the telephone number and name of the development
108-14 manager or agent to whom inquiries by prospective tenants may be
108-15 made.
108-16 (c) The department shall require each owner to maintain
108-17 updated contact information under Subsection (b)(7) and shall
108-18 solicit the owner's voluntary provision of updated information
108-19 under Subsections (b)(3) and (6).
108-20 (d) The department shall make information provided under
108-21 this section available to the public in electronic and hard-copy
108-22 formats at no cost.
108-23 ARTICLE 5
108-24 SECTION 5.01. Subchapter D, Chapter 2306, Government Code, is
108-25 amended by adding Sections 2306.079 and 2306.080 to read as
108-26 follows:
108-27 Sec. 2306.079. REGIONAL DEVELOPMENT COORDINATOR. (a) In
109-1 this section:
109-2 (1) "Regional development coordinator" means a person
109-3 employed by or under contract with the department to perform the
109-4 duties described by this section.
109-5 (2) "Regional partner" means an entity such as a
109-6 regional planning commission, political subdivision, local
109-7 nonprofit organization, institution of higher education, community
109-8 housing development organization, housing finance corporation,
109-9 public housing authority, agricultural extension agent, local bank,
109-10 or field office or service center of the United States Department
109-11 of Agriculture Rural Development Texas that is engaged in
109-12 data-gathering projects related to the goals of the department.
109-13 (b) The department shall employ or contract with a regional
109-14 development coordinator for each uniform state service region of
109-15 this state. The primary responsibilities of a regional development
109-16 coordinator are:
109-17 (1) assisting local communities in determining how to
109-18 address affordable housing and community development needs;
109-19 (2) establishing regional planning and
109-20 resource-sharing partnerships; and
109-21 (3) facilitating the leveraging of available local,
109-22 state, and federal funds.
109-23 (c) A regional development coordinator shall:
109-24 (1) gather and manage data about affordable housing
109-25 and community development needs in the uniform state service region
109-26 the coordinator represents by:
109-27 (A) identifying and working with regional
110-1 partners;
110-2 (B) using a variety of data resources,
110-3 including:
110-4 (i) the United States Census Bureau;
110-5 (ii) the United States Department of
110-6 Housing and Urban Development;
110-7 (iii) the Texas State Data Center;
110-8 (iv) the Texas Real Estate Research
110-9 Center; and
110-10 (v) the office of the comptroller, the
110-11 Texas Department of Economic Development, and other state agencies;
110-12 (C) developing an analysis of the region's
110-13 affordable housing and community development needs based on the
110-14 data gathered and local and regional input; and
110-15 (D) establishing a framework for sharing the
110-16 data with the regional partners;
110-17 (2) use the data described by Subdivision (1) to
110-18 facilitate the development of a regional plan and shall encourage
110-19 the consensus of the regional partners concerning the plan;
110-20 (3) identify statewide and national partners for
110-21 meeting the region's affordable housing and community development
110-22 needs, including the United States Department of Housing and Urban
110-23 Development, the United States Department of Agriculture Rural
110-24 Development Texas, the Texas State Affordable Housing Corporation,
110-25 statewide nonprofit entities, banking associations, developer
110-26 associations, and foundations; and
110-27 (4) provide an information clearinghouse for the
111-1 region that facilitates planning and resource sharing by
111-2 identifying programs that leverage local, state, and federal
111-3 financial aid.
111-4 (d) In each uniform state service region, the regional
111-5 planning commission and other regional partners shall establish an
111-6 advisory committee consisting of representatives of two or more
111-7 regional partners that shall:
111-8 (1) advise the department regarding the affordable
111-9 housing and community development needs of that region;
111-10 (2) assist the department in:
111-11 (A) assigning priorities to the affordable
111-12 housing and community development needs of that region;
111-13 (B) identifying resources to address those
111-14 needs; and
111-15 (C) implementing the low income housing plan as
111-16 applied to that region; and
111-17 (3) request and gather from political subdivisions and
111-18 other appropriate entities any affordable housing and community
111-19 development plans that are relevant to the development of the
111-20 regional plan described by Subsection (c), including local plans,
111-21 regional plans from regional planning commissions, and plans
111-22 developed for the United States Department of Housing and Urban
111-23 Development consolidated planning process.
111-24 Sec. 2306.080. DATABASE INFORMATION SPECIALIST. The
111-25 director shall appoint a database information specialist. The
111-26 primary responsibility of the database information specialist is to
111-27 provide for the effective and efficient dissemination to the public
112-1 of information related to affordable housing and community
112-2 development in a form that is accessible, widely available, and
112-3 easily used.
112-4 ARTICLE 6
112-5 SECTION 6.01. Section 2306.111(c), Government Code, is
112-6 amended to read as follows:
112-7 (c) In administering federal housing funds provided to the
112-8 state under the Cranston-Gonzalez National Affordable Housing Act
112-9 (42 U.S.C. Section 12701 et seq.), the department shall expend at
112-10 least 95 percent of [give the highest priority to utilizing] these
112-11 funds for the benefit of non-participating small cities and rural
112-12 areas that do not qualify to receive funds under the
112-13 Cranston-Gonzalez National Affordable Housing Act directly from the
112-14 United States Department of Housing and Urban Development [unless
112-15 the department finds there is insufficient need and demand for
112-16 housing funds within these areas]. All funds not set aside under
112-17 this subsection shall be used for the benefit of persons with
112-18 disabilities who live in areas other than small cities and rural
112-19 areas.
112-20 ARTICLE 7
112-21 SECTION 7.01. Section 2306.223, Government Code, is amended
112-22 to read as follows:
112-23 Sec. 2306.223. CRITERIA FOR FINANCING HOUSING DEVELOPMENT OF
112-24 HOUSING SPONSOR. Notwithstanding any other provision of this
112-25 chapter, the department may not finance a housing development
112-26 undertaken by a housing sponsor under this chapter, unless the
112-27 department first determines that:
113-1 (1) the housing development is necessary to provide
113-2 needed decent, safe, and sanitary housing at rentals or prices that
113-3 individuals or families of low and very low income or families of
113-4 moderate income can afford;
113-5 (2) the housing sponsor undertaking the proposed
113-6 housing development will supply well-planned and well-designed
113-7 housing for individuals or families of low and very low income or
113-8 families of moderate income;
113-9 (3) the housing sponsor is financially responsible;
113-10 (4) the housing sponsor is not, or will not enter into
113-11 a contract for the proposed housing development with, a housing
113-12 developer that is on the department's debarred list, including any
113-13 parts of that list that are derived from the debarred list of the
113-14 United States Department of Housing and Urban Development;
113-15 (5) the financing of the housing development is a
113-16 public purpose and will provide a public benefit; and
113-17 (6) [(5)] the housing development will be undertaken
113-18 within the authority granted by this chapter to the housing finance
113-19 division and the housing sponsor.
113-20 SECTION 7.02. The change in law made by this Act to Section
113-21 2306.223, Government Code, applies only to an application for
113-22 financing a housing development that is submitted to the Texas
113-23 Department of Housing and Community Affairs on or after the
113-24 effective date of this Act.
113-25 ARTICLE 8
113-26 SECTION 8.01. Subchapter DD, Chapter 2306, Government Code,
113-27 is amended to read as follows:
114-1 SUBCHAPTER DD. LOW INCOME HOUSING TAX CREDIT PROGRAM
114-2 Sec. 2306.6701. PURPOSE. The department shall administer the
114-3 low income housing tax credit program to:
114-4 (1) encourage the development and preservation of
114-5 appropriate types of rental housing for households that have
114-6 difficulty finding suitable, affordable rental housing in the
114-7 private marketplace;
114-8 (2) maximize the number of suitable, affordable
114-9 residential rental units added to the state's housing supply;
114-10 (3) prevent losses for any reason to the state's
114-11 supply of suitable, affordable residential rental units by enabling
114-12 the rehabilitation of rental housing or by providing other
114-13 preventative financial support under this subchapter; and
114-14 (4) encourage the participation of nonprofit
114-15 organizations in the acquisition, development, and operation of
114-16 affordable housing developments in urban and rural communities.
114-17 Sec. 2306.6702. DEFINITIONS. (a) In this subchapter:
114-18 (1) "Applicant" means any person or affiliate of a
114-19 person who files an application with the department requesting a
114-20 housing tax credit allocation.
114-21 (2) "Application" means an application filed with the
114-22 department by an applicant and includes any exhibits or other
114-23 supporting materials.
114-24 (3) "Application log" means a form containing at least
114-25 the information required by Section 2306.6709.
114-26 (4) "Application round" means the period beginning on
114-27 the date the department begins accepting applications and
115-1 continuing until all available housing tax credits are allocated,
115-2 but not extending past the last day of the calendar year.
115-3 (5) "At-risk development" means a development that:
115-4 (A) receives the benefit of a subsidy in the
115-5 form of a below-market interest rate loan, interest rate reduction,
115-6 rental subsidy, Section 8 housing assistance payment, rental
115-7 supplement payment, or rental assistance payment under the
115-8 following federal laws, as applicable:
115-9 (i) Sections 221(d)(3) and (5), National
115-10 Housing Act (12 U.S.C. Section 1715l);
115-11 (ii) Section 236, National Housing Act (12
115-12 U.S.C. Section 1715z-1);
115-13 (iii) Section 202, Housing Act of 1959 (12
115-14 U.S.C. Section 1701q);
115-15 (iv) Section 101, Housing and Urban
115-16 Development Act of 1965 (12 U.S.C. Section 1701s);
115-17 (v) the Section 8 Additional Assistance
115-18 Program for housing developments with HUD-Insured and HUD-Held
115-19 Mortgages administered by the United States Department of Housing
115-20 and Urban Development;
115-21 (vi) the Section 8 Housing Assistance
115-22 Program for the Disposition of HUD-Owned Projects administered by
115-23 the United States Department of Housing and Urban Development; or
115-24 (vii) Sections 514, 515, and 516, Housing
115-25 Act of 1949 (42 U.S.C. Sections 1484, 1485, and 1486); and
115-26 (B) is subject to the following conditions:
115-27 (i) the stipulation to maintain
116-1 affordability in the contract granting the subsidy is nearing
116-2 expiration; or
116-3 (ii) the federally insured mortgage on the
116-4 development is eligible for prepayment or is nearing the end of its
116-5 term.
116-6 (6) "Development" means a proposed qualified low
116-7 income housing project, as defined by Section 42(g), Internal
116-8 Revenue Code of 1986 (26 U.S.C. Section 42(g)), that consists of
116-9 one or more buildings containing multiple units, that is financed
116-10 under a common plan, and that is owned by the same person for
116-11 federal tax purposes, including a project consisting of multiple
116-12 buildings that:
116-13 (A) are located on scattered sites; and
116-14 (B) contain only rent-restricted units.
116-15 (7) "Development owner" means any person or affiliate
116-16 of a person who owns or proposes a development or expects to
116-17 acquire control of a development under a purchase contract approved
116-18 by the department.
116-19 (8) "Housing tax credit" means a tax credit allocated
116-20 under the low income housing tax credit program.
116-21 (9) "Land use restriction agreement" means an
116-22 agreement between the department, the development owner, and the
116-23 development owner's successors in interest that encumbers the
116-24 development with respect to the requirements of this subchapter and
116-25 the requirements of Section 42, Internal Revenue Code of 1986 (26
116-26 U.S.C. Section 42).
116-27 (10) "Qualified allocation plan" means a plan adopted
117-1 by the board under this subchapter that:
117-2 (A) provides the threshold, scoring, and
117-3 underwriting criteria based on housing priorities of the department
117-4 that are appropriate to local conditions;
117-5 (B) gives preference in housing tax credit
117-6 allocations to developments that, as compared to the other
117-7 developments:
117-8 (i) serve the lowest income tenants; and
117-9 (ii) are obligated to serve qualified
117-10 tenants for the longest period; and
117-11 (C) provides a procedure for the department, the
117-12 department's agent, or other private contractor of the department
117-13 to use in monitoring compliance with the qualified allocation plan
117-14 and this subchapter.
117-15 (11) "Related party" means the following individuals
117-16 or entities:
117-17 (A) the brothers, sisters, spouse, ancestors,
117-18 and descendants of a person within the third degree of
117-19 consanguinity, as determined by Chapter 573, Government Code;
117-20 (B) a person and a corporation, if the person
117-21 owns more than 50 percent of the outstanding stock of the
117-22 corporation;
117-23 (C) two or more corporations that are connected
117-24 through stock ownership with a common parent possessing more than
117-25 50 percent of:
117-26 (i) the total combined voting power of all
117-27 classes of stock of each of the corporations that can vote;
118-1 (ii) the total value of shares of all
118-2 classes of stock of each of the corporations; or
118-3 (iii) the total value of shares of all
118-4 classes of stock of at least one of the corporations, excluding, in
118-5 computing that voting power or value, stock owned directly by the
118-6 other corporation;
118-7 (D) a grantor and fiduciary of any trust;
118-8 (E) a fiduciary of one trust and a fiduciary of
118-9 another trust, if the same person is a grantor of both trusts;
118-10 (F) a fiduciary of a trust and a beneficiary of
118-11 the trust;
118-12 (G) a fiduciary of a trust and a corporation if
118-13 more than 50 percent of the outstanding stock of the corporation is
118-14 owned by or for:
118-15 (i) the trust; or
118-16 (ii) a person who is a grantor of the
118-17 trust;
118-18 (H) a person or organization and an organization
118-19 that is tax-exempt under Section 501(a), Internal Revenue Code of
118-20 1986 (26 U.S.C. Section 501), and that is controlled by that person
118-21 or the person's family members or by that organization;
118-22 (I) a corporation and a partnership or joint
118-23 venture if the same persons own more than:
118-24 (i) 50 percent of the outstanding stock of
118-25 the corporation; and
118-26 (ii) 50 percent of the capital interest or
118-27 the profits' interest in the partnership or joint venture;
119-1 (J) an S corporation and another S corporation
119-2 if the same persons own more than 50 percent of the outstanding
119-3 stock of each corporation;
119-4 (K) an S corporation and a C corporation if the
119-5 same persons own more than 50 percent of the outstanding stock of
119-6 each corporation;
119-7 (L) a partnership and a person or organization
119-8 owning more than 50 percent of the capital interest or the profits'
119-9 interest in that partnership; or
119-10 (M) two partnerships, if the same person or
119-11 organization owns more than 50 percent of the capital interests or
119-12 profits' interests.
119-13 (12) "Rural area" means an area that is located:
119-14 (A) outside the boundaries of a primary
119-15 metropolitan statistical area or a metropolitan statistical area;
119-16 or
119-17 (B) within the boundaries of a primary
119-18 metropolitan statistical area or a metropolitan statistical area,
119-19 if the statistical area has a population of 20,000 or less and does
119-20 not share a boundary with an urban area; or
119-21 (C) in an area that is eligible for funding by
119-22 the Texas Rural Development Office of the United States Department
119-23 of Agriculture.
119-24 (13) "Rural development agency" means the state agency
119-25 designated by the legislature as primarily responsible for rural
119-26 area development in the state.
119-27 (14) "Set-aside" means a reservation of a portion of
120-1 the available housing tax credits to provide financial support for
120-2 specific types of housing or geographic locations or serve specific
120-3 types of applicants as permitted by the qualified allocation plan
120-4 on a priority basis.
120-5 (15) "Threshold criteria" means the criteria used to
120-6 determine whether the development satisfies the minimum level of
120-7 acceptability for consideration established in the department's
120-8 qualified allocation plan.
120-9 (16) "Unit" means any residential rental unit in a
120-10 development consisting of an accommodation, including a single room
120-11 used as an accommodation on a non-transient basis, that contains
120-12 separate and complete physical facilities and fixtures for living,
120-13 sleeping, eating, cooking, and sanitation.
120-14 (b) For purposes of Subsection (a)(11), the constructive
120-15 ownership provisions of Section 267, Internal Revenue Code of 1986
120-16 (26 U.S.C. Section 267), apply. The board may lower in the
120-17 qualified allocation plan the percentages described by Subsection
120-18 (a)(11).
120-19 Sec. 2306.67021. APPLICABILITY OF SUBCHAPTER. Except as
120-20 provided by Section 2306.6703, this subchapter does not apply to
120-21 the allocation of housing tax credits to developments financed
120-22 through the private activity bond program.
120-23 Sec. 2306.67022. QUALIFIED ALLOCATION PLAN; MANUAL. The
120-24 board annually shall adopt a qualified allocation plan and a
120-25 corresponding manual to provide information regarding the
120-26 administration of and eligibility for the low income housing tax
120-27 credit program.
121-1 Sec. 2306.6703. INELIGIBILITY FOR CONSIDERATION. An
121-2 application is ineligible for consideration under the low income
121-3 housing tax credit program if:
121-4 (1) at the time of application or at any time during
121-5 the five-year period preceding the date the application round
121-6 begins, the applicant or a related party is or has been:
121-7 (A) a member of the board; or
121-8 (B) the director, a deputy director of housing
121-9 programs, or a tax credit manager employed by the department; or
121-10 (2) the applicant proposes to replace in less than 15
121-11 years any private activity bond financing of the development
121-12 described by the application.
121-13 Sec. 2306.6704. PRE-APPLICATION PROCESS. (a) To prevent
121-14 unnecessary filing costs, the department by rule shall establish a
121-15 voluntary pre-application process to enable a preliminary
121-16 assessment of an application proposed for filing under this
121-17 subchapter.
121-18 (b) The department shall award in the application evaluation
121-19 process described by Section 2306.6710 an appropriate number of
121-20 points as an incentive for participation in the pre-application
121-21 process established under this section.
121-22 (c) The department shall reject and return to the applicant
121-23 any application assessed by the department under this section that
121-24 fails to satisfy the threshold criteria required by the board in
121-25 the qualified allocation plan.
121-26 (d) If feasible under Section 2306.67041, an application
121-27 under this section must be submitted electronically.
122-1 Sec. 2306.67041. ON-LINE APPLICATION SYSTEM. (a) The
122-2 department and the Department of Information Resources shall
122-3 cooperate to evaluate the feasibility of an on-line application
122-4 system for the low income housing tax credit program to provide the
122-5 following functions:
122-6 (1) filing of pre-applications and applications
122-7 on-line;
122-8 (2) posting of on-line pre-application or application
122-9 status and the application log detailing the status of, and
122-10 department's evaluations and scores pertaining to, those
122-11 applications; and
122-12 (3) posting of comments from applicants and the public
122-13 regarding a pre-application or application.
122-14 (b) The department shall determine the process for allowing
122-15 access to on-line pre-applications and applications, information
122-16 related to those applications, and department decisions relating to
122-17 those applications.
122-18 (c) In the application cycle following the date any on-line
122-19 application system becomes operational, the department shall
122-20 require use of the system for submission of pre-applications and
122-21 applications under this subchapter.
122-22 (d) The department shall publish a status report on the
122-23 implementation of the on-line application on the department's
122-24 website not later than January 1, 2002.
122-25 (e) Before the implementation of the on-line application
122-26 system, the department may implement the requirements of Section
122-27 2306.6718 in any manner the department considers appropriate.
123-1 Sec. 2306.6705. GENERAL APPLICATION REQUIREMENTS. An
123-2 application must contain the following written, detailed
123-3 information in a form prescribed by the board:
123-4 (1) a description of:
123-5 (A) the financing plan for the development,
123-6 including any non-traditional financing arrangements;
123-7 (B) the use of funds with respect to the
123-8 development;
123-9 (C) the funding sources for the development,
123-10 including:
123-11 (i) construction, permanent, and bridge
123-12 loans; and
123-13 (ii) rents, operating subsidies, and
123-14 replacement reserves; and
123-15 (D) the commitment status of the funding sources
123-16 for the development;
123-17 (2) if syndication costs are included in the eligible
123-18 basis, a justification of the syndication costs for each cost
123-19 category by an attorney or accountant specializing in tax matters;
123-20 (3) from a syndicator or a financial consultant of the
123-21 applicant, an estimate of the amount of equity dollars expected to
123-22 be raised for the development in conjunction with the amount of
123-23 housing tax credits requested for allocation to the applicant,
123-24 including:
123-25 (A) pay-in schedules; and
123-26 (B) syndicator consulting fees and other
123-27 syndication costs;
124-1 (4) if rental assistance, an operating subsidy, or an
124-2 annuity is proposed for the development, any related contract or
124-3 other agreement securing those funds and an identification of:
124-4 (A) the source and annual amount of the funds;
124-5 (B) the number of units receiving the funds; and
124-6 (C) the term and expiration date of the contract
124-7 or other agreement;
124-8 (5) if the development is located within the
124-9 boundaries of a political subdivision with a zoning ordinance,
124-10 evidence in the form of a letter from the chief executive officer
124-11 of the political subdivision or from another local official with
124-12 jurisdiction over zoning matters that states that the development
124-13 is permitted under the provisions of the ordinance that apply to
124-14 the location of the development;
124-15 (6) if an occupied development is proposed for
124-16 rehabilitation:
124-17 (A) an explanation of the process used to notify
124-18 and consult with the tenants in preparing the application;
124-19 (B) a relocation plan outlining:
124-20 (i) relocation requirements; and
124-21 (ii) a budget with an identified funding
124-22 source; and
124-23 (C) if applicable, evidence that the relocation
124-24 plan has been submitted to the appropriate local agency;
124-25 (7) a certification of the applicant's compliance with
124-26 appropriate state and federal laws, as required by other state law
124-27 or by the board; and
125-1 (8) any other information required by the board in the
125-2 qualified allocation plan.
125-3 Sec. 2306.6706. ADDITIONAL APPLICATION REQUIREMENT:
125-4 NONPROFIT SET-ASIDE ALLOCATION. (a) In addition to the information
125-5 required by Section 2306.6705, an application for a housing tax
125-6 credit allocation from the nonprofit set-aside, as defined by
125-7 Section 42(h)(5), Internal Revenue Code of 1986 (26 U.S.C. Section
125-8 42(h)(5)), must contain the following written, detailed information
125-9 with respect to each development owner and each general partner of
125-10 a development owner:
125-11 (1) Internal Revenue Service documentation of
125-12 designation as a Section 501(c)(3) or 501(c)(4) organization;
125-13 (2) evidence that one of the exempt purposes of the
125-14 nonprofit organization is to provide low income housing;
125-15 (3) a description of the nonprofit organization's
125-16 participation in the construction or rehabilitation of the
125-17 development and in the ongoing operations of the development;
125-18 (4) evidence that the nonprofit organization prohibits
125-19 a member of its board of directors, other than a chief staff member
125-20 serving concurrently as a member of the board, from receiving
125-21 material compensation for service on the board;
125-22 (5) a third-party legal opinion stating that the
125-23 nonprofit organization is not affiliated with or controlled by a
125-24 for-profit organization and the basis for that opinion;
125-25 (6) a copy of the nonprofit organization's most recent
125-26 audited financial statement;
125-27 (7) a list of the names and home addresses of members
126-1 of the board of directors of the nonprofit organization;
126-2 (8) a third-party legal opinion stating that the
126-3 nonprofit organization is eligible under Subsection (b) for a
126-4 housing tax credit allocation from the nonprofit set-aside and the
126-5 basis for that opinion; and
126-6 (9) evidence that a majority of the members of the
126-7 nonprofit organization's board of directors principally reside:
126-8 (A) in this state, if the development is located
126-9 in a rural area; or
126-10 (B) not more than 90 miles from the development
126-11 in the community in which the development is located, if the
126-12 development is not located in a rural area.
126-13 (b) To be eligible for a housing tax credit allocation from
126-14 the nonprofit set-aside, a nonprofit organization must:
126-15 (1) control a majority of the development;
126-16 (2) if the organization's application is filed on
126-17 behalf of a limited partnership, be the managing general partner;
126-18 and
126-19 (3) otherwise meet the requirements of Section
126-20 42(h)(5), Internal Revenue Code of 1986 (26 U.S.C. Section
126-21 42(h)(5)).
126-22 Sec. 2306.6707. ADDITIONAL APPLICATION REQUIREMENT:
126-23 DISCLOSURE OF INTERESTED PERSONS. (a) The applicant must disclose
126-24 in the application the names of any persons, including affiliates
126-25 of those persons and related parties, providing developmental or
126-26 operational services to the development, including:
126-27 (1) a development owner;
127-1 (2) an architect;
127-2 (3) an attorney;
127-3 (4) a tax professional;
127-4 (5) a property management company;
127-5 (6) a consultant;
127-6 (7) a market analyst;
127-7 (8) a tenant services provider;
127-8 (9) a syndicator;
127-9 (10) a real estate broker or agent or a person
127-10 receiving a fee in connection with services usually provided by a
127-11 real estate broker or agent;
127-12 (11) at the time the application is submitted, the
127-13 owners of the property on which the development is located;
127-14 (12) a developer; and
127-15 (13) a builder or general contractor.
127-16 (b) For each person described by Subsection (a), the
127-17 application must disclose any company name, company contact person,
127-18 address, and telephone number.
127-19 Sec. 2306.6708. APPLICATION CHANGES OR SUPPLEMENTS. (a)
127-20 Except as provided by Subsection (b), an applicant may not change
127-21 or supplement an application in any manner after the filing
127-22 deadline.
127-23 (b) This section does not prohibit an applicant from:
127-24 (1) at the request of the department, clarifying
127-25 information in the application or correcting administrative
127-26 deficiencies in the application; or
127-27 (2) modifying an application after allocation of
128-1 housing tax credits in the manner provided by Section 2306.6712.
128-2 Sec. 2306.6709. APPLICATION LOG. (a) In a form prescribed
128-3 by the department, the department shall maintain for each
128-4 application an application log that tracks the application from the
128-5 date of its submission.
128-6 (b) The application log must contain at least the following
128-7 information:
128-8 (1) the names of the applicant and related parties;
128-9 (2) the physical location of the development,
128-10 including the relevant region of the state;
128-11 (3) the amount of housing tax credits requested for
128-12 allocation by the department to the applicant;
128-13 (4) any set-aside category under which the application
128-14 is filed;
128-15 (5) the score of the application in each scoring
128-16 category adopted by the department under the qualified allocation
128-17 plan;
128-18 (6) any decision made by the department or board
128-19 regarding the application, including the department's decision
128-20 regarding whether to underwrite the application and the board's
128-21 decision regarding whether to allocate housing tax credits to the
128-22 development;
128-23 (7) the names of persons making the decisions
128-24 described by Subdivision (6), including the names of department
128-25 staff scoring and underwriting the application, to be recorded next
128-26 to the description of the applicable decision;
128-27 (8) the amount of housing tax credits allocated to the
129-1 development; and
129-2 (9) a dated record and summary of any contact between
129-3 the department staff, the board, and the applicant or any related
129-4 parties.
129-5 Sec. 2306.6710. EVALUATION AND UNDERWRITING OF APPLICATIONS.
129-6 (a) In evaluating an application, the department shall determine
129-7 whether the application satisfies the threshold criteria required
129-8 by the board in the qualified allocation plan. The department
129-9 shall reject and return to the applicant any application that fails
129-10 to satisfy the threshold criteria.
129-11 (b) If an application satisfies the threshold criteria, the
129-12 department shall score and rank the application using a point
129-13 system based on criteria adopted by the department, including
129-14 criteria regarding:
129-15 (1) the income levels of tenants of the development;
129-16 (2) the rent levels of the units;
129-17 (3) the period of guaranteed affordability for low
129-18 income tenants;
129-19 (4) the cost by square foot of the development;
129-20 (5) the size, quality, and amenities of the units;
129-21 (6) the services to be provided to tenants of the
129-22 development;
129-23 (7) local market conditions;
129-24 (8) the commitment of funding to the development from
129-25 local political subdivisions; and
129-26 (9) the level of community support for the
129-27 application, evaluated on the basis of written statements of
130-1 support from local and state elected officials.
130-2 (c) The department shall publish in the qualified allocation
130-3 plan details of the scoring system used by the department to score
130-4 applications.
130-5 (d) The department shall underwrite the applications ranked
130-6 under Subsection (b) beginning with the applications with the
130-7 highest scores in each region described by Section 2306.111(d) and
130-8 in each set-aside category described in the qualified allocation
130-9 plan. Based on application rankings, the department shall continue
130-10 to underwrite applications until the department has processed
130-11 enough applications satisfying the department's underwriting
130-12 criteria to enable the allocation of all available housing tax
130-13 credits according to regional allocation goals and set-aside
130-14 categories. To enable the board to establish an applications
130-15 waiting list under Section 2306.6711, the department shall
130-16 underwrite as many additional applications as the board considers
130-17 necessary to ensure that all available housing tax credits are
130-18 allocated within the period required by law.
130-19 (e) In adopting criteria for scoring and underwriting
130-20 applications for purposes of housing tax credit allocations, the
130-21 department shall attach the most weight to criteria that will:
130-22 (1) result in an allocation of housing tax credits for
130-23 developments serving the lowest income tenants; and
130-24 (2) produce the greatest number of high quality units
130-25 committed to remaining affordable to qualified tenants for extended
130-26 periods.
130-27 Sec. 2306.6711. ALLOCATION OF HOUSING TAX CREDITS. (a) The
131-1 director shall provide the application scores to the board before
131-2 the 30th day preceding the date the board begins to issue
131-3 commitments for housing tax credits in the allocation round.
131-4 (b) Not later than the deadline specified in the qualified
131-5 allocation plan, the board shall issue commitments for available
131-6 housing tax credits based on the application evaluation process
131-7 provided by Section 2306.6710. The board may not allocate housing
131-8 tax credits in any unnecessary amount, as determined by the
131-9 department's underwriting policy and by federal law, and in any
131-10 event may not allocate housing tax credits in an amount greater
131-11 than $1.6 million.
131-12 (c) Concurrently with the initial issuance of commitments
131-13 for housing tax credits, the board shall establish a waiting list
131-14 of additional applications ranked by score in descending order of
131-15 priority based on set-aside categories and regional allocation
131-16 goals.
131-17 (d) The board shall issue commitments for housing tax
131-18 credits with respect to applications on the waiting list as
131-19 additional credits become available.
131-20 Sec. 2306.6712. MODIFICATION OF APPLICATION SUBSEQUENT TO
131-21 ALLOCATION BY BOARD. (a) If a proposed modification would
131-22 materially alter a development approved for an allocation of a
131-23 housing tax credit, the department shall require the applicant to
131-24 file a formal, written amendment to the application on a form
131-25 prescribed by the department.
131-26 (b) The director shall require the department staff assigned
131-27 to underwrite applications to evaluate the amendment and provide an
132-1 analysis and written recommendation to the board. The appropriate
132-2 monitor under Section 2306.6720 shall also provide to the board an
132-3 analysis and written recommendation regarding the amendment.
132-4 (c) The board must vote on whether to approve the amendment.
132-5 The board by vote may reject an amendment and, if appropriate,
132-6 rescind the allocation of housing tax credits and reallocate the
132-7 credits to other applicants on the waiting list required by Section
132-8 2306.6711 if the board determines that the amendment:
132-9 (1) would materially affect the development in a
132-10 negative manner; or
132-11 (2) would have adversely affected the selection of the
132-12 application in the application round.
132-13 (d) Material alteration of a development includes:
132-14 (1) a significant modification of the site plan;
132-15 (2) a modification of the number of units or bedroom
132-16 mix of units;
132-17 (3) a substantive modification of the scope of tenant
132-18 services;
132-19 (4) a reduction of three percent or more in the square
132-20 footage of the units or common areas;
132-21 (5) a significant modification of the architectural
132-22 design of the development;
132-23 (6) a modification of the residential density of the
132-24 development of at least approximately five percent;
132-25 (7) a modification of sources of funding for the
132-26 development; and
132-27 (8) any other modification considered significant by
133-1 the board.
133-2 Sec. 2306.6713. HOUSING TAX CREDIT AND OWNERSHIP TRANSFERS.
133-3 (a) An applicant may not transfer an allocation of housing tax
133-4 credits or ownership of a development supported with an allocation
133-5 of housing tax credits to any person other than an affiliate unless
133-6 the applicant obtains the director's prior, written approval of the
133-7 transfer.
133-8 (b) The director may not unreasonably withhold approval of
133-9 the transfer.
133-10 (c) An applicant seeking director approval of a transfer and
133-11 the proposed transferee must provide to the department a copy of
133-12 any applicable agreement between the parties to the transfer,
133-13 including any third-party agreement with the department.
133-14 (d) On request, an applicant seeking director approval of a
133-15 transfer must provide to the department:
133-16 (1) a list of the names of transferees and related
133-17 parties; and
133-18 (2) detailed information describing the experience and
133-19 financial capacity of transferees and related parties.
133-20 (e) The development owner shall certify to the director that
133-21 the tenants in the development have been notified in writing of the
133-22 transfer before the 30th day preceding the date of submission of
133-23 the transfer request to the department.
133-24 (f) Not later than the fifth working day after the date the
133-25 department receives all necessary information under this section,
133-26 the department shall conduct a qualifications review of a
133-27 transferee to determine:
134-1 (1) the transferee's past compliance with all aspects
134-2 of the low income housing tax credit program, including land use
134-3 restriction agreements; and
134-4 (2) the sufficiency of the transferee's experience
134-5 with developments supported with housing tax credit allocations.
134-6 Sec. 2306.6714. AT-RISK DEVELOPMENT SET-ASIDE. (a) The
134-7 department shall set aside for at-risk developments not less than
134-8 15 percent of the housing tax credits available for allocation in
134-9 the calendar year.
134-10 (b) Any amount of housing tax credits set aside under this
134-11 section that remains after the initial allocation of housing tax
134-12 credits is available for allocation to any eligible applicant as
134-13 provided by the qualified allocation plan.
134-14 Sec. 2306.6716. APPEAL. (a) In a form prescribed by the
134-15 department in the qualified allocation plan, an applicant may
134-16 appeal the following decisions made by the department in the
134-17 application evaluation process provided by Section 2306.6710:
134-18 (1) a determination regarding the application's
134-19 satisfaction of threshold and underwriting criteria;
134-20 (2) the scoring of the application; and
134-21 (3) a recommendation as to the amount of housing tax
134-22 credits to be allocated to the application.
134-23 (b) An applicant may not appeal a decision made under
134-24 Section 2306.6710 regarding an application filed by another
134-25 applicant.
134-26 (c) An applicant must file a written appeal authorized by
134-27 this section with the department not later than the seventh day
135-1 after the date the department publishes the results of the
135-2 application evaluation process provided by Section 2306.6710. In
135-3 the appeal, the applicant must specifically identify the
135-4 applicant's grounds for appeal, based on the original application
135-5 and additional documentation filed with the original application.
135-6 (d) The director shall respond in writing to the appeal not
135-7 later than the 14th day after the date of receipt of the appeal. If
135-8 the applicant is not satisfied with the director's response to the
135-9 appeal, the applicant may appeal directly in writing to the board,
135-10 provided that an appeal filed with the board under this subsection
135-11 must be received by the board before:
135-12 (1) the seventh day preceding the date of the board
135-13 meeting at which the relevant allocation decision is expected to be
135-14 made; or
135-15 (2) the third day preceding the date of the board
135-16 meeting described by Subdivision (1), if the director does not
135-17 respond to the appeal before the date described by Subdivision (1).
135-18 (e) Board review of an appeal under Subsection (d) is based
135-19 on the original application and additional documentation filed with
135-20 the original application. The board may not review any information
135-21 not contained in or filed with the original application. The
135-22 decision of the board regarding the appeal is final.
135-23 Sec. 2306.6717. FEES. (a) A fee charged by the department
135-24 for filing an application may not be excessive and must reflect the
135-25 department's actual costs in processing the application, providing
135-26 copies of documents to persons connected with the application
135-27 process, and making appropriate information available to the public
136-1 through the department's website.
136-2 (b) The department shall publish not later than July 1 of
136-3 each year a schedule of application fees that specifies the amount
136-4 to be charged at each stage of the application process.
136-5 (c) In accordance with the fee schedule, the department
136-6 shall refund the balance of any fees collected for an application
136-7 that is withdrawn by the applicant or that is not fully processed
136-8 by the department. The department must provide the refund to the
136-9 applicant not later than the 30th day after the date the last
136-10 official action is taken with respect to the application.
136-11 (d) The department shall develop a sliding scale fee
136-12 schedule for applications that encourages increased participation
136-13 by community housing development organizations in the low income
136-14 housing tax credit program.
136-15 Sec. 2306.6718. PUBLIC INFORMATION AND HEARINGS. (a)
136-16 Subject to Section 2306.67041, the department shall make the
136-17 following items available on the department's website:
136-18 (1) as soon as practicable, any proposed application
136-19 submitted through the pre-application process established by this
136-20 subchapter;
136-21 (2) before the 30th day preceding the date of the
136-22 relevant board allocation decision, except as provided by
136-23 Subdivision (3), the entire application, including all supporting
136-24 documents and exhibits, the application log, a scoring sheet
136-25 providing details of the application score, and any other document
136-26 relating to the processing of the application;
136-27 (3) not later than the third working day after the
137-1 date of the relevant determination, the results of each stage of
137-2 the application process, including the results of the application
137-3 scoring and underwriting phases and the allocation phase;
137-4 (4) before the 15th day preceding the date of board
137-5 action on the amendment, notice of an amendment under Section
137-6 2306.6712 and the recommendation of the director and monitor
137-7 regarding the amendment; and
137-8 (5) an appeal filed with the department or board under
137-9 Section 2306.6716 or 2306.6722 and any other document relating to
137-10 the processing of the appeal.
137-11 (b) The department shall provide information regarding the
137-12 low income housing tax credit program, including notice regarding
137-13 public hearings, board meetings, and the opening and closing dates
137-14 for applications, to:
137-15 (1) local housing departments;
137-16 (2) newspapers;
137-17 (3) nonprofit organizations;
137-18 (4) on-site property managers of occupied developments
137-19 that are the subject of applications; and
137-20 (5) any other interested persons, including community
137-21 groups, who request the information.
137-22 (c) The department shall hold at least three public hearings
137-23 in different regions of the state to receive public comments on
137-24 applications and on other issues relating to the low income housing
137-25 tax credit program.
137-26 (d) Notwithstanding any other provision of this section, the
137-27 department may treat the financial statements of any applicant as
138-1 confidential and may elect not to disclose those statements to the
138-2 public.
138-3 Sec. 2306.6719. ELECTED OFFICIALS. (a) The department shall
138-4 provide written notice of the filing of an application to the
138-5 following elected officials:
138-6 (1) members of the legislature who represent the
138-7 community containing the development described in the application;
138-8 and
138-9 (2) the chief executive officer of the political
138-10 subdivision containing the development described in the
138-11 application.
138-12 (b) The department shall provide the elected officials with
138-13 an opportunity to comment on the application during the application
138-14 evaluation process provided by Section 2306.6710 and shall consider
138-15 those comments in evaluating applications under that section.
138-16 (c) A member of the legislature who represents the community
138-17 containing the development may hold a community meeting at which
138-18 the department shall provide appropriate representation.
138-19 (d) If the department receives written notice from the mayor
138-20 or county judge of an affected municipality or county opposing an
138-21 application, the department must contact the mayor or county judge
138-22 and offer to conduct a physical inspection of the development site
138-23 and consult with the mayor or county judge before the application
138-24 is scored.
138-25 Sec. 2306.6720. MONITORING OF COMPLIANCE. (a) The
138-26 department may contract with an independent third party to monitor
138-27 a development during its construction or rehabilitation and during
139-1 its operation for compliance with:
139-2 (1) any conditions imposed by the department in
139-3 connection with the allocation of housing tax credits to the
139-4 development; and
139-5 (2) appropriate state and federal laws, as required by
139-6 other state law or by the board.
139-7 (b) The department may assign department staff other than
139-8 housing tax credit division staff to perform the relevant
139-9 monitoring functions required by this section in the construction
139-10 or rehabilitation phase of a development.
139-11 Sec. 2306.6721. ENFORCEABILITY OF APPLICANT REPRESENTATIONS.
139-12 Each representation made by an applicant to secure a housing tax
139-13 credit allocation is enforceable by the department and the tenants
139-14 of the development supported with the allocation.
139-15 Sec. 2306.6722. DEBARMENT FROM PROGRAM PARTICIPATION. (a)
139-16 The board by rule shall adopt a policy providing for the debarment
139-17 of a person from participation in the low income housing tax credit
139-18 program as described by this section.
139-19 (b) The department may debar a person from participation in
139-20 the program on the basis of the person's past failure to comply
139-21 with any condition imposed by the department in connection with the
139-22 allocation of housing tax credits.
139-23 (c) The department shall debar a person from participation
139-24 in the program if the person:
139-25 (1) materially violates any condition imposed by the
139-26 department in connection with the allocation of housing tax
139-27 credits;
140-1 (2) is debarred from participation in federal housing
140-2 programs by the United States Department of Housing and Urban
140-3 Development; or
140-4 (3) is in material noncompliance with or has
140-5 repeatedly violated a land use restriction agreement regarding a
140-6 development supported with a housing tax credit allocation.
140-7 (d) A person debarred by the department from participation
140-8 in the program may appeal the person's debarment to the board.
140-9 Sec. 2306.6723. DEVELOPMENT ACCESSIBILITY. Any development
140-10 supported with a housing tax credit allocation shall comply with
140-11 the accessibility standards that are required under Section 504,
140-12 Rehabilitation Act of 1973 (29 U.S.C. Section 794), and specified
140-13 under 24 C.F.R. Part 8, Subpart C.
140-14 Sec. 2306.6724. DISCRIMINATION AGAINST PERSONS RECEIVING
140-15 FEDERAL HOUSING ASSISTANCE PROHIBITED. The department shall
140-16 prohibit a development supported with a housing tax credit
140-17 allocation from:
140-18 (1) excluding an individual or family from admission
140-19 to the development because the individual or family participates in
140-20 the housing choice voucher program under Section 8, United States
140-21 Housing Act of 1937 (42 U.S.C. Section 1437f); and
140-22 (2) using a financial or minimum income standard for
140-23 an individual or family participating in the voucher program
140-24 described by Subdivision (1) that requires the individual or family
140-25 to have a monthly income of more than 2-1/2 times the individual's
140-26 or family's share of the total monthly rent payable to the
140-27 development owner.
141-1 Sec. 2306.6725. COORDINATION WITH RURAL DEVELOPMENT AGENCY.
141-2 (a) The department shall jointly administer with the rural
141-3 development agency any set-aside for rural areas to:
141-4 (1) ensure the maximum use and optimum geographic
141-5 distribution of housing tax credits in rural areas; and
141-6 (2) provide for information sharing, efficient
141-7 procedures, and fulfillment of development compliance requirements
141-8 in rural areas.
141-9 (b) The rural development agency shall assist in developing
141-10 all threshold, scoring, and underwriting criteria applied to
141-11 applications eligible for the rural area set-aside. The criteria
141-12 must be approved by that agency.
141-13 (c) To ensure that the rural area set-aside receives a
141-14 sufficient volume of eligible applications, the department shall
141-15 fund and, with the rural development agency, shall jointly
141-16 implement outreach, training, and rural area capacity building
141-17 efforts as directed by the rural development agency.
141-18 (d) The department and the rural development agency shall
141-19 jointly adjust the regional allocation of housing tax credits
141-20 described by Section 2306.111 to offset the under-utilization and
141-21 over-utilization of multifamily private activity bonds and other
141-22 housing resources in the different regions of the state.
141-23 (e) From application fees collected under this subchapter,
141-24 the department shall reimburse the rural development agency for any
141-25 costs incurred by the agency in carrying out the functions required
141-26 by this section.
141-27 Sec. 2306.6726 [2306.671]. DEADLINES FOR ALLOCATION OF LOW
142-1 INCOME HOUSING TAX CREDITS. (a) Not later than September 30
142-2 [November 15] of each year, the department shall prepare and submit
142-3 to the board for adoption the qualified allocation plan required by
142-4 federal law for use by the department in setting criteria and
142-5 priorities for the allocation of tax credits under the low income
142-6 housing tax credit program.
142-7 (b) The board shall adopt and submit to the governor the
142-8 qualified allocation plan not later than November 15 [January 31].
142-9 (c) The governor shall approve, reject, or modify and
142-10 approve the qualified allocation plan not later than December 1
142-11 [February 28].
142-12 (d) An applicant for a low income housing tax credit to be
142-13 issued a commitment during the initial allocation cycle in a
142-14 calendar year must submit an application to the department not
142-15 later than March 1 [May 15].
142-16 (e) The board shall review the recommendations of department
142-17 staff regarding applications and shall issue a list of approved
142-18 applications [issue a commitment for allocation for the initial
142-19 cycle of low income housing tax credits] each year in accordance
142-20 with the qualified allocation plan not later than June 30 [July
142-21 31].
142-22 (f) The board shall issue final commitments for allocations
142-23 of housing tax credits each year in accordance with the qualified
142-24 allocation plan not later than July 31.
142-25 Sec. 2306.6727 [2306.672]. SCORING OF APPLICATIONS. (a)
142-26 [The goal of the low income housing tax credit program is to
142-27 provide permanent affordable housing.] In allocating low income
143-1 housing tax credits, the department shall score each application
143-2 using a point system based on criteria adopted by the department
143-3 that are consistent with the department's housing goals, including
143-4 criteria addressing:
143-5 (1) an applicant's willingness to defer developer or
143-6 other fees with respect to the proposed project, subject to
143-7 appropriate project underwriting; and
143-8 (2) the ability of the proposed project to:
143-9 (A) provide quality social support services to
143-10 residents;
143-11 (B) demonstrate community and neighborhood
143-12 support;
143-13 (C) serve individuals and families of extremely
143-14 low income by leveraging private and state and federal resources,
143-15 including federal HOPE VI grants received through the United States
143-16 Department of Housing and Urban Development;
143-17 (D) serve traditionally underserved areas;
143-18 (E) provide for extended affordability periods;
143-19 and
143-20 (F) comply with the accessibility standards that
143-21 are required under Section 504 of the Rehabilitation Act of 1973
143-22 (29 U.S.C. Section 794), and specified under 24 C.F.R. Part 8,
143-23 Subpart C. [The department shall publish in the qualified
143-24 allocation plan any discretionary factor that the department will
143-25 consider in scoring an application.]
143-26 (b) The department shall provide appropriate incentives as
143-27 determined through the qualified allocation plan to reward
144-1 applicants who agree [If an applicant meets the department's
144-2 scoring and underwriting criteria, the department shall add:]
144-3 [(1) five bonus points to the applicant's score if the
144-4 applicant agrees] to provide to a qualified nonprofit organization
144-5 or tenant organization a right of first refusal to purchase the
144-6 property to which the tax credit applies at the minimum price
144-7 provided in, and in accordance with the requirements of, Section
144-8 42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
144-9 42(i)(7))[; and]
144-10 [(2) two bonus points to the applicant's score if the
144-11 application is received within the first 10 days of the application
144-12 acceptance period].
144-13 (c) On [The department shall provide the score of each
144-14 application on each criterion to the board and the governor. The
144-15 results of the scoring shall be available to the public.]
144-16 [(d) Upon] awarding tax credit allocations, the board shall
144-17 document the reasons for each project's selection, including an
144-18 explanation of:
144-19 (1) all discretionary factors used in making its
144-20 determination; and
144-21 (2) the reasons for any decision that conflicts with
144-22 the recommendations of department staff under Section 2306.6751.
144-23 (d) For each scoring criterion, the department shall use a
144-24 range of points to evaluate the degree to which a proposed project
144-25 satisfies the criterion. The department may not award a number of
144-26 points for a scoring criterion that is disproportionate to the
144-27 degree to which a proposed project complies with that criterion.
145-1 Sec. 2306.6728 [2306.673]. SALE OF CERTAIN LOW INCOME
145-2 HOUSING TAX CREDIT PROPERTY. (a) Not later than two years before
145-3 the expiration of the compliance period, a recipient of a low
145-4 income housing tax credit who agreed to provide a right of first
145-5 refusal under Section 2306.6727 [2306.672(b)(1)] and who intends to
145-6 sell the property shall notify the department of the recipient's
145-7 intent to sell. The recipient shall notify qualified nonprofit
145-8 organizations and tenant organizations of the opportunity to
145-9 purchase the property.
145-10 (b) The recipient may:
145-11 (1) during the first six-month period after notifying
145-12 the department, negotiate or enter into a purchase agreement only
145-13 with a qualified nonprofit organization that is also a community
145-14 housing development organization as defined by the federal home
145-15 investment partnership program;
145-16 (2) during the second six-month period after notifying
145-17 the department, negotiate or enter into a purchase agreement with
145-18 any qualified nonprofit organization or tenant organization; and
145-19 (3) during the year before the expiration of the
145-20 compliance period, negotiate or enter into a purchase agreement
145-21 with the department or any qualified nonprofit organization or
145-22 tenant organization approved by the department.
145-23 (c) Notwithstanding an agreement under Section 2306.6727
145-24 [2306.672(b)(1)], a recipient of a low income housing tax credit
145-25 may sell property to which the tax credit applies to any purchaser
145-26 after the expiration of the compliance period if a qualified
145-27 nonprofit organization or tenant organization does not offer to
146-1 purchase the property at the minimum price provided by Section
146-2 42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
146-3 42(i)(7)), and the department declines to purchase the property.
146-4 (d) In this section, "compliance period" has the meaning
146-5 assigned by Section 42(i)(1), Internal Revenue Code of 1986 (26
146-6 U.S.C. Section 42(i)(1)).
146-7 Sec. 2306.6729 [2306.674]. DEPARTMENT PURCHASE OF LOW INCOME
146-8 HOUSING TAX CREDIT PROPERTY. The board by rule may develop and
146-9 implement a program to purchase low income housing tax credit
146-10 property that is not purchased by a qualified nonprofit
146-11 organization or tenant organization. The department may not
146-12 purchase low income housing tax credit property if the board finds
146-13 that the purchase is not in the best interest of the state.
146-14 Sec. 2306.6751 [2306.675]. ALLOCATION DECISION; REEVALUATION
146-15 [OF LOW INCOME HOUSING TAX CREDIT]. (a) Department staff shall
146-16 provide written, documented recommendations to the board concerning
146-17 the financial or programmatic viability of each application for a
146-18 low income housing tax credit before the board makes a decision
146-19 relating to the allocation of tax credits. The board may not make
146-20 without good cause an allocation decision that conflicts with the
146-21 recommendations of department staff.
146-22 (b) Regardless of project stage, the board must reevaluate a
146-23 project that undergoes a substantial change between the time of
146-24 initial board approval of the project and the time of issuance of a
146-25 tax credit commitment for the project. The board may revoke any
146-26 tax credit commitment issued for a project that has been
146-27 unfavorably reevaluated by the board under this subsection [Not
147-1 later than the deadline specified in Section 2306.671(e), the board
147-2 shall issue a commitment for tax credits available to the
147-3 department. Concurrently with the issuance of a commitment for
147-4 initial tax credits, the board shall establish a waiting list of
147-5 additional applications, ranked in descending order of priority, to
147-6 be issued a commitment for tax credits if additional credits become
147-7 available].
147-8 [Sec. 2306.676. EQUAL ACCESS TO PROGRAM. The department
147-9 shall establish procedures through the qualified allocation plan to
147-10 ensure that each applicant for a low income housing tax credit has
147-11 a fair and equal opportunity to submit or resubmit an application
147-12 and submit for consideration any authorized supplementary materials
147-13 and information.]
147-14 [Sec. 2306.677. FEES. (a) A fee charged by the department
147-15 to an applicant for a low income housing tax credit may not be
147-16 excessive and must reflect the department's actual costs in
147-17 processing applications and providing copies of documents in
147-18 connection with the allocation process.]
147-19 [(b) The department shall refund a fee charged to an
147-20 applicant if the department does not score the applicant's
147-21 application, except the department may retain a reasonable portion
147-22 of the fee to compensate the department for costs associated with
147-23 the application.]
147-24 Sec. 2306.6781 [2306.678]. PUBLIC INFORMATION [AND HEARINGS
147-25 ON PROGRAM]. [(a)] The department shall provide information
147-26 regarding the low income housing tax credit program, including
147-27 notices of public hearings, meetings, and opening and closing dates
148-1 for applications for a low income housing tax credit, to local
148-2 housing departments, any appropriate newspapers of general or
148-3 limited circulation that serve the community in which the proposed
148-4 project is to be located, nonprofit organizations, on-site property
148-5 managers of occupied projects that are the subject of tax credit
148-6 applications for posting in prominent locations at those projects,
148-7 and any other interested persons and community groups[,] who
148-8 request the information. The department shall also publish the
148-9 information on the department's website.
148-10 [(b) The department shall hold at least three public
148-11 hearings in different regions of the state to receive public
148-12 comments on low income housing tax credit applications.]
148-13 ARTICLE 9
148-14 SECTION 9.01. Chapter 2306, Government Code, is amended by
148-15 adding Subchapter JJ to read as follows:
148-16 SUBCHAPTER JJ. TEXAS AFFORDABLE HOUSING NEEDS ASSESSMENT
148-17 Sec. 2306.881. DEFINITIONS. In this subchapter:
148-18 (1) "Border region" means the area composed of the
148-19 counties of Brewster, Brooks, Cameron, Culberson, Dimmit, Duval, El
148-20 Paso, Hidalgo, Hudspeth, Jeff Davis, Jim Hogg, Kenedy, Kinney, La
148-21 Salle, Maverick, Presidio, Starr, Val Verde, Webb, Willacy, Zapata,
148-22 and Zavala.
148-23 (2) "Public senior college or university" has the
148-24 meaning assigned by Section 61.003, Education Code.
148-25 Sec. 2306.882. TEXAS AFFORDABLE HOUSING NEEDS ASSESSMENT.
148-26 (a) In conjunction with the office of the comptroller, the
148-27 department shall assess the present and future affordable housing
149-1 needs of the border region and of the uniform state service regions
149-2 of this state.
149-3 (b) The department shall use the following factors in making
149-4 the assessment required by this subchapter:
149-5 (1) the number of extremely low, very low, and low
149-6 income households in each region;
149-7 (2) the number and type of publicly subsidized housing
149-8 units in each region;
149-9 (3) the number and amount of loans provided by the
149-10 department in each region and the income level of the recipients of
149-11 the loans;
149-12 (4) the number and amount of housing development
149-13 grants made by the department in each region and a description of
149-14 each grant;
149-15 (5) the number of substandard or inadequate housing
149-16 units in each region;
149-17 (6) cost estimates for correcting substandard and
149-18 inadequate housing conditions in each region;
149-19 (7) the number of extremely low, very low, and low
149-20 income households in each region that spend more than half of
149-21 household income on rent or mortgage payments;
149-22 (8) cost estimates for relieving housing cost burdens
149-23 for extremely low, very low, and low income households in each
149-24 region;
149-25 (9) an analysis of the market demand for housing by
149-26 extremely low, very low, and low income households;
149-27 (10) an analysis of the loans and private sector home
150-1 mortgage lending rates available to extremely low, very low, and
150-2 low income borrowers in each region;
150-3 (11) an analysis of the principal barriers to home
150-4 mortgage credit faced by extremely low, very low, and low income
150-5 borrowers; and
150-6 (12) the rate of subprime mortgage loan products in
150-7 home purchase, home repair, and home equity loans in each region.
150-8 (c) The assessment must provide a summary and conclusion
150-9 regarding the adequacy of existing housing and lending programs to
150-10 meet the affordable housing needs of each region.
150-11 (d) In making the assessment required by this subchapter,
150-12 the department shall use the most current data available from the
150-13 United States Census Bureau, the United States Department of
150-14 Housing and Urban Development, and federal and state banking
150-15 regulatory agencies.
150-16 (e) In making the assessment required by this subchapter,
150-17 the department shall project the affordable housing needs of each
150-18 region as of the end of each five-year period occurring between
150-19 September 1, 2001, and September 1, 2021, and as of September 1,
150-20 2031. The projection of affordable housing needs under this
150-21 subsection must include a projection of the costs and nature of the
150-22 affordable housing that will be needed in the future, including any
150-23 special need for single-family or multifamily housing.
150-24 Sec. 2306.883. FUNDING. The department may use any available
150-25 revenue, including legislative appropriations, to make the
150-26 assessment required by this subchapter.
150-27 Sec. 2306.884. CONTRACTUAL AUTHORITY. The department may
151-1 contract with a research center, a public senior college or
151-2 university, or a component of a public senior college or
151-3 university, including the Lyndon B. Johnson School of Public
151-4 Affairs, to make the assessment required by this subchapter.
151-5 Sec. 2306.885. REPORT. Not later than the 180th day after
151-6 the date the relevant information is released by the United States
151-7 Census Bureau, the department shall submit a report to the
151-8 governor, the lieutenant governor, and the legislature detailing
151-9 the department's findings on the present and future affordable
151-10 housing needs of the regions of this state.
151-11 Sec. 2306.886. EXPIRATION DATE. This subchapter expires
151-12 October 1, 2004.
151-13 ARTICLE 10
151-14 SECTION 10.01. Section 1372.022, Government Code, is amended
151-15 by amending Subsection (b) and adding Subsection (c) to read as
151-16 follows:
151-17 (b) If the state ceiling is computed on the basis of $75 per
151-18 capita or a greater amount, before August 15 of each year:
151-19 (1) 31.5 percent of the state ceiling is available
151-20 exclusively for reservations by issuers of qualified mortgage
151-21 bonds;
151-22 (2) 8 percent of the state ceiling is available
151-23 exclusively for reservations by issuers of state-voted issues;
151-24 (3) 4.6 percent of the state ceiling is available
151-25 exclusively for reservations by issuers of qualified small issue
151-26 bonds and enterprise zone facility bonds;
151-27 (4) 23 percent of the state ceiling is available
152-1 exclusively for reservations by issuers of qualified residential
152-2 rental project bonds;
152-3 (5) 8.8 percent of the state ceiling is available
152-4 exclusively for reservations by issuers of qualified student loan
152-5 bonds authorized by Section 53.47, Education Code; and
152-6 (6) 24.1 percent of the state ceiling is available
152-7 exclusively for reservations by any other issuer of bonds that
152-8 require an allocation.
152-9 (c) On and after August 15 but before September 1, that
152-10 portion of the state ceiling available for reservations becomes
152-11 available for qualified residential rental project issues in the
152-12 manner described by Section 1372.0321. On and after September 1,
152-13 that portion of the state ceiling available for reservations
152-14 becomes available to any issuer for any bonds that require an
152-15 allocation, subject to the provisions of this subchapter.
152-16 SECTION 10.02. Subchapter B, Chapter 1372, Government Code,
152-17 is amended by adding Section 1372.0231 to read as follows:
152-18 Sec. 1372.0231. DEDICATION OF PORTION OF STATE CEILING
152-19 AVAILABLE FOR QUALIFIED RESIDENTIAL RENTAL PROJECT BONDS. (a)
152-20 Until August 15, of that portion of the state ceiling that is
152-21 available exclusively for reservations by issuers of qualified
152-22 residential rental project bonds:
152-23 (1) 25 percent is available exclusively to the Texas
152-24 Department of Housing and Community Affairs in the manner described
152-25 by Subsection (b); and
152-26 (2) 75 percent is available exclusively to housing
152-27 finance corporations in the manner described by Subsections
153-1 (c)-(e).
153-2 (b) With respect to the amount of the state ceiling set
153-3 aside under Subsection (a)(1), the board shall grant reservations:
153-4 (1) in the order determined by the board by lot; and
153-5 (2) in a manner that ensures that:
153-6 (A) the set-aside amount is used for proposed
153-7 projects that are located throughout the state; and
153-8 (B) not more than 50 percent of the set-aside
153-9 amount is used for proposed projects that are located in qualified
153-10 census tracts as defined by Section 143(j), Internal Revenue Code
153-11 of 1986.
153-12 (c) Before June 1, the board shall apportion the amount of
153-13 state ceiling set aside under Subsection (a)(2) among the uniform
153-14 state service regions according to the percentage of the state's
153-15 population that resides in each of those regions.
153-16 (d) For the uniform state service regions containing Austin,
153-17 Dallas, and Houston, the board shall additionally apportion the
153-18 amount of the state ceiling set aside for each of those regions
153-19 under Subsection (c) within the region according to the percentage
153-20 of the region's population that resides in a metropolitan
153-21 statistical area and the percentage of the region's population that
153-22 resides outside of a metropolitan statistical area. With respect
153-23 to the amount of the state ceiling set aside for a metropolitan
153-24 statistical area under this subsection, the board shall grant
153-25 reservations in a manner that ensures that not more than 50 percent
153-26 of that set-aside amount is used for proposed projects that are
153-27 located in qualified census tracts as defined by Section 143(j),
154-1 Internal Revenue Code of 1986.
154-2 (e) In each area described by Subsection (c) or (d), the
154-3 board shall grant reservations based on the priority levels of
154-4 proposed projects as described by Section 1372.032.
154-5 (f) On or after June 1, the board may not grant available
154-6 reservations to housing finance corporations described by
154-7 Subsection (a) based on uniform state service regions or any
154-8 segments of those regions.
154-9 SECTION 10.03. Section 1372.026(a), Government Code, is
154-10 amended to read as follows:
154-11 (a) The maximum amount of the state ceiling that may be
154-12 reserved before August 15 [September 1] by a housing finance
154-13 corporation for the issuance of qualified mortgage bonds may not
154-14 exceed the amount computed as follows [by multiplying the local
154-15 population of the corporation by]:
154-16 (1) [$50,] if the local population of the housing
154-17 finance corporation is 300,000 or more, $22.5 million plus the
154-18 product of the amount by which the local population exceeds 300,000
154-19 multiplied by $11.25;
154-20 (2) [$75,] if the local population of the housing
154-21 finance corporation is 200,000 or more but less than 300,000, $20
154-22 million plus the product of the amount by which the local
154-23 population exceeds 200,000 multiplied by $22.5;
154-24 (3) [$100,] if the local population of the housing
154-25 finance corporation is 100,000 or more but less than 200,000, $15
154-26 million plus the product of the amount by which the local
154-27 population exceeds 100,000 multiplied by $50; or
155-1 (4) [$150,] if the local population of the housing
155-2 finance corporation is less than 100,000, the product of the local
155-3 population multiplied by $150.
155-4 SECTION 10.04. Subchapter B, Chapter 1372, Government Code,
155-5 is amended by adding Section 1372.0261 to read as follows:
155-6 Sec. 1372.0261. FAILURE OF HOUSING FINANCE CORPORATION TO
155-7 USE AMOUNT OF STATE CEILING ALLOCATED. (a) In this section,
155-8 "utilization percentage" means that portion of the amount of the
155-9 state ceiling allocated to a housing finance corporation with
155-10 respect to which the corporation issues private activity bonds that
155-11 result in mortgage loans or mortgage credit certificates. A
155-12 housing finance corporation's utilization percentage for an
155-13 allocation of the state ceiling is the quotient of:
155-14 (1) the amount of state ceiling used to purchase
155-15 mortgages or mortgage-backed securities or the amount of the state
155-16 ceiling used to issue mortgage credit certificates; divided by
155-17 (2) the amount of the state ceiling allocated, minus
155-18 any amounts of the state ceiling required for debt service reserve
155-19 funds.
155-20 (b) If a housing finance corporation's issue of bonds uses a
155-21 new allocation of the state ceiling in combination with taxable
155-22 bond proceeds or with bond proceeds recycled from previous
155-23 allocations of the state ceiling, the first loans or certificates
155-24 financed are considered in computing the utilization percentage of
155-25 the new allocation of the state ceiling.
155-26 (c) If a housing finance corporation's utilization
155-27 percentage is less than 95 percent, the next time the corporation
156-1 becomes eligible for a reservation of the state ceiling, the
156-2 maximum amount of state ceiling that may be reserved for the
156-3 corporation is equal to the amount for which the corporation would
156-4 otherwise be eligible under Section 1372.026 multiplied by the
156-5 utilization percentage of the corporation's last bond issue that
156-6 used an allocation of the state ceiling.
156-7 (d) A housing finance corporation may not be penalized under
156-8 Subsection (c) if:
156-9 (1) the corporation fails to use:
156-10 (A) bond proceeds recycled from previous
156-11 allocations of the state ceiling; or
156-12 (B) taxable bond proceeds; or
156-13 (2) as the result of an issuance of bonds, the
156-14 corporation's utilization percentage is 95 percent or greater.
156-15 SECTION 10.05. Section 1372.031, Government Code, is amended
156-16 to read as follows:
156-17 Sec. 1372.031. PRIORITIES FOR RESERVATIONS AMONG CERTAIN
156-18 ISSUERS. If, on or before October 20, more than one issuer in a
156-19 category described by Section 1372.022(a)(2), (3), [(4),] or (6)
156-20 applies for a reservation of the state ceiling for the next program
156-21 year, the board shall grant reservations in that category in the
156-22 order determined by the board by lot.
156-23 SECTION 10.06. The heading to Section 1372.032, Government
156-24 Code, is amended to read as follows:
156-25 Sec. 1372.032. PRIORITIES FOR RESERVATIONS AMONG ISSUERS OF
156-26 QUALIFIED MORTGAGE BONDS [HOUSING FINANCE CORPORATIONS].
156-27 SECTION 10.07. Section 3(h), Chapter 1092, Acts of the 70th
157-1 Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's Texas
157-2 Civil Statutes), is amended to read as follows:
157-3 (h) First priority for any reservations by issuers of
157-4 qualified residential rental project issues is given to (1)
157-5 projects in which 100 percent of the residential units in the
157-6 projects are under the restriction that the maximum allowable rents
157-7 are 30 percent of 50 percent of the area median family income minus
157-8 an allowance for utility costs authorized under the federal
157-9 low-income housing tax credit program; and (2) on or after June 1,
157-10 any other qualified residential rental project that is located in a
157-11 county, metropolitan statistical area, or primary metropolitan
157-12 statistical area with an area median family income at or below the
157-13 statewide median family income established by the United States
157-14 Department of Housing and Urban Development. Second priority is
157-15 given to projects in which 100 percent of the residential units in
157-16 the project are under the restriction that the maximum allowable
157-17 rents are 30 percent of 60 percent of the area median family income
157-18 minus an allowance for utility costs authorized under the federal
157-19 low-income housing tax credit program. Third priority is given to
157-20 any other qualified residential rental project.
157-21 SECTION 10.08. (a) In accordance with Section 311.031(c),
157-22 Government Code, which gives effect to a substantive amendment
157-23 enacted by the same legislature that codifies the amended statute,
157-24 the text of Section 1372.022(b), Government Code, as set out in
157-25 this Act, gives effect to changes made by Chapter 131, Acts of the
157-26 76th Legislature, Regular Session, 1999.
157-27 (b) To the extent of any conflict, the changes in law made
158-1 by this Act to Chapter 1372, Government Code, prevail over another
158-2 Act of the 77th Legislature, Regular Session, 2001, relating to
158-3 nonsubstantive additions and corrections in enacted codes.
158-4 SECTION 10.09. Section 1372.0261, Government Code, as added
158-5 by this Act, applies only to a reservation of state ceiling granted
158-6 on or after January 1, 2002.
158-7 ARTICLE 11
158-8 SECTION 11.01. This Act takes effect September 1, 2001.