By Dukes                                              H.B. No. 3538
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to criteria for financing housing development of housing
 1-3     sponsor.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 2306.223.  Criteria for Financing Housing
 1-6     Development of Housing Sponsor, is amended to read as follows:
 1-7           Notwithstanding any other provision of this chapter, the
 1-8     department may not finance a housing development undertaken by a
 1-9     housing sponsor under this chapter, unless the department first
1-10     determines that:
1-11                 (1)  the housing development is necessary to provide
1-12     needed decent, safe, and sanitary housing at rentals or prices that
1-13     individuals or families of low and very low income or families of
1-14     moderate income can afford;
1-15                 (2)  the housing sponsor undertaking the proposed
1-16     housing development will supply well-planned and well-designed
1-17     housing for individuals or families of low and very low income or
1-18     families of moderate income;
1-19                 (3)  the housing sponsor is financially responsible;
1-20                 (4)  the housing sponsor is not or will not utilize a
1-21     housing developer which has:
1-22                       (A)  breached a contract with a local or quasi
1-23     governmental entities in Texas including but not limited to cities
 2-1     counties, housing authorities, transportation authorities, river
 2-2     authorities or other similar public purpose entities; and
 2-3                       (B)  misrepresented to subcontractors as to the
 2-4     amount and scope of their participation in previous awards made by
 2-5     the State, local or quasi governmental entities in Texas or other
 2-6     entities under subsection 4(a).
 2-7                 [(4)] (5)  the financing of the housing development is
 2-8     a public purpose and will provide a public benefit; and
 2-9                 [(5)] (6)  the housing development will be undertaken
2-10     within the authority granted by this chapter to the housing finance
2-11     division and the housing sponsor.
2-12           SECTION 2.  This Act takes effect September 1, 2001.