By: Lucio, Zaffirini S.B. No. 322
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the continuation and functions of the Texas Department
1-3 of Housing and Community Affairs and to other matters relating to
1-4 housing or community development, including the creation of the
1-5 Manufactured Housing Board and the Office of Rural Community
1-6 Affairs; providing penalties.
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 income and families of moderate
1-20 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
1-25 income;
2-1 (4) assist the governor and the legislature in
2-2 coordinating federal and state programs affecting local government;
2-3 [and]
2-4 (5) inform state officials and the public of the needs
2-5 of local government; and
2-6 (6) serve as a source of information to the public
2-7 regarding all affordable housing resources and community support
2-8 services in the state.
2-9 SECTION 1.02. Subsection (b), Section 2306.021, Government
2-10 Code, is amended to read as follows:
2-11 (b) The department is composed of:
2-12 (1) the community affairs division;
2-13 (2) the housing finance division;
2-14 (3) the manufactured housing division; and
2-15 (4) [the community development division; and]
2-16 [(5)] any other division created by the director under
2-17 Section 2306.0521.
2-18 SECTION 1.03. Subchapter B, Chapter 2306, Government Code,
2-19 is amended by amending Sections 2306.022, 2306.024, 2306.025,
2-20 2306.027, 2306.033, 2306.034, and 2306.035 and adding Section
2-21 2306.028 to read as follows:
2-22 Sec. 2306.022. APPLICATION OF SUNSET ACT. The Texas
2-23 Department of Housing and Community Affairs is subject to Chapter
2-24 325 (Texas Sunset Act). Unless continued in existence as provided
2-25 by that chapter, the department is abolished and this chapter
2-26 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
4-1 requirements of Section 2306.026 regarding diversity, appointments]
4-2 to the board shall be made without regard to the race, color,
4-3 disability [handicap], sex, religion, age, or national origin of
4-4 the appointees and shall be made in a manner that produces
4-5 representation on the board of the different geographical regions
4-6 of this state. Appointments to the board must broadly reflect the
4-7 economic, cultural, and social diversity of the state, including
4-8 ethnic minorities, people with disabilities, and women.
4-9 (c) A person may not be a member of the board if the person
4-10 or the person's spouse:
4-11 (1) is employed by or participates in the management
4-12 of a business entity or other organization regulated by or
4-13 receiving money from the department;
4-14 (2) owns or controls, directly or indirectly, more
4-15 than a 10 percent interest in a business entity or other
4-16 organization regulated by or receiving money from the department;
4-17 or
4-18 (3) uses or receives a substantial amount of tangible
4-19 goods, services, or money from the department other than
4-20 compensation or reimbursement authorized by law for board
4-21 membership, attendance, or expenses [An elected or appointed
4-22 official of a political subdivision appointed to Place 2 on the
4-23 board is a member of the board as an additional or ex officio duty
4-24 required by the member's other official capacity, and the member's
4-25 service on the board is not dual office holding].
4-26 Sec. 2306.028. TRAINING. (a) A person who is appointed to
5-1 and qualifies for office as a member of the board may not vote,
5-2 deliberate, or be counted as a member in attendance at a meeting of
5-3 the board until the person completes a training program that
5-4 complies with this section.
5-5 (b) The training program must provide the person with
5-6 information regarding:
5-7 (1) the legislation that created the department and
5-8 the board;
5-9 (2) the programs operated by the department;
5-10 (3) the role and functions of the department;
5-11 (4) the rules of the department, with an emphasis on
5-12 the rules that relate to disciplinary and investigatory authority;
5-13 (5) the current budget for the department;
5-14 (6) the results of the most recent formal audit of the
5-15 department;
5-16 (7) the requirements of:
5-17 (A) the open meetings law, Chapter 551;
5-18 (B) the public information law, Chapter 552;
5-19 (C) the administrative procedure law, Chapter
5-20 2001; and
5-21 (D) other laws relating to public officials,
5-22 including conflict-of-interest laws;
5-23 (8) the requirements of:
5-24 (A) state and federal fair housing laws,
5-25 including Title VIII of the Civil Rights Act of 1968 (42 U.S.C.
5-26 Section 3601 et seq.) and the Fair Housing Amendments Act of 1988
6-1 (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,
7-1 discharge the member's duties for a substantial part of the
7-2 member's term [for which the member is appointed because of illness
7-3 or disability];
7-4 (5) is absent from more than half of the regularly
7-5 scheduled board meetings [of the board] that the member is eligible
7-6 to attend during a calendar year without an excuse approved [unless
7-7 the absence is excused] by a majority vote of the board; or
7-8 (6) engages in misconduct or unethical or criminal
7-9 behavior.
7-10 (b) The validity of an action of the board is not affected
7-11 by the fact that it is taken when a ground for removal of a board
7-12 member exists.
7-13 (c) If the director has knowledge that a potential ground
7-14 for removal exists, the director shall notify the presiding officer
7-15 of the board of the potential ground. The presiding officer shall
7-16 then notify the governor and the attorney general that a potential
7-17 ground for removal exists. If the potential ground for removal
7-18 involves the presiding officer, the director shall notify the next
7-19 highest ranking officer of the board, who shall then notify the
7-20 governor and the attorney general that a potential ground for
7-21 removal exists.
7-22 Sec. 2306.034. DISQUALIFICATION OF MEMBERS AND CERTAIN
7-23 EMPLOYEES. (a) In [An employee or paid consultant of a Texas
7-24 trade association in the field of banking, real estate, housing
7-25 development, or housing construction may not be a member of the
7-26 board or an employee of the department who is exempt from the
8-1 state's position classification plan or is compensated at or above
8-2 the amount prescribed by the General Appropriations Act for step 1,
8-3 salary group 17, of the position classification salary schedule.]
8-4 [(b) For the purposes of] this section, [a] "Texas trade
8-5 association" means [is] a [nonprofit,] cooperative[,] and
8-6 voluntarily joined association of business or professional
8-7 competitors in this state designed to assist its members and its
8-8 industry or profession in dealing with mutual business or
8-9 professional problems and in promoting their common interest.
8-10 (b) A person may not be a member of the board and may not be
8-11 a department employee employed in a "bona fide executive,
8-12 administrative, or professional capacity," as that phrase is used
8-13 for purposes of establishing an exemption to the overtime
8-14 provisions of the federal Fair Labor Standards Act of 1938 (29
8-15 U.S.C. Section 201 et seq.), and its subsequent amendments, if:
8-16 (1) the person is an officer, employee, or paid
8-17 consultant of a Texas trade association in the field of banking,
8-18 real estate, housing development, or housing construction; or
8-19 (2) the person's spouse is an officer, manager, or
8-20 paid consultant of a Texas trade association in the field of
8-21 banking, real estate, housing development, or housing construction.
8-22 Sec. 2306.035. LOBBYIST RESTRICTION. A person may not be
8-23 [serve as] a member of the board or act as the director of the
8-24 department or the general counsel to the board or the department if
8-25 the person is required to register as a lobbyist under Chapter 305
8-26 because of the person's activities for compensation [in or] on
9-1 behalf of a profession related to the operation of the department.
9-2 SECTION 1.04. Subsection (a), Section 2306.030, Government
9-3 Code, is amended to read as follows:
9-4 (a) The governor shall designate a member of [appoint a
9-5 presiding officer from] the board as the presiding officer of the
9-6 board to serve in that capacity at the will of the governor
9-7 [members]. The presiding officer presides at meetings of the board
9-8 and performs other duties required by this chapter.
9-9 SECTION 1.05. Section 2306.032, Government Code, is amended
9-10 by adding Subsections (c) through (g) to read as follows:
9-11 (c) All materials in the possession of the department that
9-12 are relevant to a matter proposed for discussion at a board meeting
9-13 must be sent to interested parties, posted on the department's
9-14 website, made available in hard-copy format at the department,
9-15 filed with the secretary of state for publication by reference in
9-16 the Texas Register, and disseminated by any other means required by
9-17 this chapter or by Chapter 551.
9-18 (d) The materials described by Subsection (c) must be made
9-19 available to the public as required by Subsection (c) not later
9-20 than the seventh day before the date of the meeting. The board may
9-21 not consider at the meeting any material that is not made available
9-22 to the public by the date required by this subsection.
9-23 (e) The agenda for a board meeting must state each project
9-24 the staff is recommending for assistance by the department.
9-25 (f) For each item on the board's agenda at the meeting, the
9-26 board shall provide for public comment after the presentation made
10-1 by department staff and the motions made by the board on that
10-2 topic.
10-3 (g) The board shall adopt rules that give the public a
10-4 reasonable amount of time for testimony at meetings.
10-5 SECTION 1.06. Subchapter B, Chapter 2306, Government Code,
10-6 is amended by adding Section 2306.0321 to read as follows:
10-7 Sec. 2306.0321. APPEAL OF BOARD DECISIONS. (a) The board
10-8 shall adopt rules outlining a formal process for appealing board
10-9 decisions.
10-10 (b) The rules must specify the requirements for appealing a
10-11 board decision, including:
10-12 (1) the persons eligible to appeal;
10-13 (2) the grounds for an appeal;
10-14 (3) the process for filing an appeal, including the
10-15 information that must be submitted with an appeal;
10-16 (4) a reasonable period in which an appeal must be
10-17 filed, heard, and decided;
10-18 (5) the process by which an appeal is heard and a
10-19 decision is made;
10-20 (6) the possible outcomes of an appeal; and
10-21 (7) the process by which notification of a decision
10-22 and the basis for a decision is given.
10-23 SECTION 1.07. Subchapter C, Chapter 2306, Government Code,
10-24 is amended by adding Sections 2306.051, 2306.0521, and 2306.057 to
10-25 read as follows:
10-26 Sec. 2306.051. SEPARATION OF RESPONSIBILITIES. The board
11-1 shall develop and implement policies that clearly separate the
11-2 policy-making responsibilities of the board and the management
11-3 responsibilities of the director and staff of the department.
11-4 Sec. 2306.0521. ORGANIZATIONAL FLEXIBILITY OF DEPARTMENT.
11-5 (a) Notwithstanding Section 2306.021(b) or any other provision of
11-6 this chapter, the director, with the approval of the board, may:
11-7 (1) create divisions in addition to those listed in
11-8 Section 2306.021(b) and assign to the newly created divisions any
11-9 duties and powers imposed on or granted to an existing division or
11-10 the department generally;
11-11 (2) eliminate any division listed in Section
11-12 2306.021(b) or created under this section and assign any duties or
11-13 powers previously assigned to the eliminated division to another
11-14 division listed in Section 2306.021(b) or created under this
11-15 section; or
11-16 (3) eliminate all divisions listed in Section
11-17 2306.021(b) or created under this section and reorganize the
11-18 distribution of powers and duties granted to or imposed on a
11-19 division in any manner the director determines appropriate for the
11-20 proper administration of the department.
11-21 (b) This section does not apply to the manufactured housing
11-22 division.
11-23 Sec. 2306.057. COMPLIANCE ASSESSMENT REQUIRED FOR PROJECT
11-24 APPROVAL BY BOARD. (a) Before the board approves any project
11-25 application submitted under this chapter, the department, through
11-26 the division with responsibility for compliance matters, shall:
12-1 (1) assess:
12-2 (A) the compliance history of the applicant and
12-3 any affiliate of the applicant with respect to all applicable
12-4 requirements; and
12-5 (B) the compliance issues associated with the
12-6 proposed project; and
12-7 (2) provide to the board a written report regarding
12-8 the results of the assessments described by Subdivision (1).
12-9 (b) The written report described by Subsection (a)(2) must
12-10 be included in the appropriate project file for board and
12-11 department review.
12-12 (c) The board shall fully document and disclose any
12-13 instances in which the board approves a project application despite
12-14 any noncompliance associated with the project, applicant, or
12-15 affiliate.
12-16 SECTION 1.08. Section 2306.052, Government Code, is amended
12-17 by amending Subsection (c) and adding Subsection (e) to read as
12-18 follows:
12-19 (c) The director shall develop and implement the policies
12-20 established by the board that define the responsibilities of each[:]
12-21 [(1) the director, board, and staff of the department;
12-22 and]
12-23 [(2) the community affairs division, the housing
12-24 finance division, and any other] division in the department.
12-25 (e) The board shall adopt rules and the director shall
12-26 develop and implement a program to train employees on the public
13-1 information requirements of Chapter 552. The director shall
13-2 monitor the compliance of employees with those requirements.
13-3 SECTION 1.09. Subchapter D, Chapter 2306, Government Code,
13-4 is amended by amending Section 2306.061 and adding Sections
13-5 2306.0631 and 2306.081 to read as follows:
13-6 Sec. 2306.061. STANDARDS OF [INFORMATION ON QUALIFICATIONS
13-7 AND] CONDUCT. The director or the director's designee shall become
13-8 aware of and provide to members of the board [members] and to [the]
13-9 department employees, as often as necessary, information regarding
13-10 the requirements [about the director's, members', and employees':]
13-11 [(1) qualifications] for office or employment under
13-12 this chapter, including information regarding a person's[; and]
13-13 [(2)] responsibilities under applicable laws relating
13-14 to standards of conduct for state officers or employees.
13-15 Sec. 2306.0631. STATE EMPLOYEE INCENTIVE PROGRAM. The
13-16 director or the director's designee shall provide to department
13-17 employees information and training on the benefits and methods of
13-18 participation in the state employee incentive program under
13-19 Subchapter B, Chapter 2108.
13-20 Sec. 2306.081. PROJECT COMPLIANCE; DATABASE. (a) The
13-21 department, through the division responsible for compliance
13-22 matters, shall monitor for compliance with all applicable
13-23 requirements the entire construction phase associated with any
13-24 project under this chapter. The monitoring level for each project
13-25 must be based on the amount of risk associated with the project.
13-26 (b) After completion of a project's construction phase, the
14-1 department shall periodically review the performance of the project
14-2 to confirm the accuracy of the department's initial compliance
14-3 evaluation during the construction phase.
14-4 (c) The department shall use the division responsible for
14-5 credit underwriting matters and the division responsible for
14-6 compliance matters to determine the amount of risk associated with
14-7 each project.
14-8 (d) The department shall create an easily accessible
14-9 database that contains all project compliance information developed
14-10 under this chapter.
14-11 SECTION 1.10. Subsections (b) and (c), Section 2306.066,
14-12 Government Code, are amended to read as follows:
14-13 (b) The department shall maintain a [keep an information]
14-14 file on [about] each written complaint filed with the department
14-15 [that the department has authority to resolve]. The file must
14-16 include:
14-17 (1) the name of the person who filed the complaint;
14-18 (2) the date the complaint is received by the
14-19 department;
14-20 (3) the subject matter of the complaint;
14-21 (4) the name of each person contacted in relation to
14-22 the complaint;
14-23 (5) a summary of the results of the review or
14-24 investigation of the complaint; and
14-25 (6) an explanation of the reason the file was closed,
14-26 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;
16-1 (2) the HOME investment partnerships program;
16-2 (3) the single-family housing mortgage revenue bond
16-3 program;
16-4 (4) the multifamily housing mortgage revenue bond
16-5 program;
16-6 (5) the low income housing tax credit program;
16-7 (6) the low income energy assistance program;
16-8 (7) any other program in the consolidated plan
16-9 submitted to the United States Department of Housing and Urban
16-10 Development; and
16-11 (8) any other program in the state low income housing
16-12 plan [hearings and soliciting and accepting public comments during
16-13 those hearings].
16-14 (c) In holding a public hearing, the department shall ensure
16-15 that:
16-16 (1) the location of the hearing is:
16-17 (A) in a public building or facility accessible
16-18 to the public;
16-19 (B) accessible to persons with disabilities; and
16-20 (C) reasonably accessible by public
16-21 transportation, if available;
16-22 (2) hearings are scheduled at times when working and
16-23 nonworking people can attend; and
16-24 (3) child care is provided where practical.
16-25 (d) [(c)] In scheduling a public hearing, the department
16-26 shall:
17-1 (1) publish notice of the time, place, and subject of
17-2 the hearing in the Texas Register and a newspaper of general
17-3 circulation in the community in which the hearing is to be held at
17-4 least seven days before the date of the hearing. Whenever
17-5 practical, the department shall publish notice of the time, place,
17-6 and subject of the hearing in the Texas Register and a newspaper of
17-7 general circulation in the community in which the hearing is to be
17-8 held at least thirty days before the date of the hearing;
17-9 (2) provide notice of the hearing to each public
17-10 library, in the community in which the hearing is to be held, for
17-11 posting in a public area of the library;
17-12 (3) provide notice of the hearing to:
17-13 (A) each member of the board;
17-14 (B) each member of the advisory committee
17-15 consulted by the department during preparation of the state low
17-16 income housing plan; and
17-17 (C) each member of the legislature;
17-18 (4) [make a reasonable effort to inform interested
17-19 persons and organizations of the hearing;]
17-20 [(5)] make information about the hearing, including,
17-21 if appropriate, the qualified allocation plan, application forms
17-22 for a low income housing tax credit, and the state low income
17-23 housing plan, available on the Internet in accordance with
17-24 Subsection (e) and with Section 2306.077; and
17-25 (5) [(6)] provide an opportunity for persons to
17-26 transmit on the Internet written testimony or comments on a subject
18-1 of a hearing in accordance with rules adopted by the board.
18-2 (e) At least six weeks before the date of the hearing, all
18-3 materials in the possession of the department that are relevant to
18-4 a matter proposed for discussion at a consolidated public hearing
18-5 under this section must be sent to interested persons and
18-6 organizations, posted on the department's website, made available
18-7 in hard-copy format at the department, filed with the secretary of
18-8 state for publication by reference in the Texas Register, and
18-9 disseminated by any other means required by this chapter or by
18-10 Chapter 551.
18-11 SECTION 1.12. Section 2306.067, Government Code, is amended
18-12 by adding Subsection (d) to read as follows:
18-13 (d) The director may enter into an agreement with the
18-14 manufactured housing division to loan or assign department
18-15 employees, equipment, and facilities to that division.
18-16 SECTION 1.13. Section 2306.0721, Government Code, is amended
18-17 by amending Subsection (c) and adding Subsection (f) to read as
18-18 follows:
18-19 (c) The plan must include:
18-20 (1) an estimate and analysis of the housing needs of
18-21 the following populations in each uniform [the] state service
18-22 region:
18-23 (A) individuals and families of moderate, low,
18-24 and very low income;
18-25 (B) individuals with special needs; and
18-26 (C) homeless individuals;
19-1 (2) a proposal to use all available housing resources
19-2 to address the housing needs of the populations described by
19-3 Subdivision (1) by establishing funding levels for all
19-4 housing-related programs;
19-5 (3) an estimate of the number of federally assisted
19-6 housing units available for individuals and families of low and
19-7 very low income and individuals with special needs in each uniform
19-8 state service region [county];
19-9 (4) a description of state programs that govern the
19-10 use of all available housing resources;
19-11 (5) a resource allocation plan that targets all
19-12 available housing resources to individuals and families of low and
19-13 very low income and individuals with special needs in each uniform
19-14 state service region;
19-15 (6) a description of the department's efforts to
19-16 monitor and analyze the unused or underused federal resources of
19-17 other state agencies for housing-related services and services for
19-18 homeless individuals and the department's recommendations to ensure
19-19 the full use by the state of all available federal resources for
19-20 those services in each uniform state service region;
19-21 (7) strategies to provide housing for individuals and
19-22 families with special needs in each uniform state service region;
19-23 (8) a description of the department's efforts to
19-24 encourage in each uniform state service region the construction of
19-25 housing units that incorporate energy efficient construction and
19-26 appliances; [and]
20-1 (9) an estimate and analysis of the housing supply in
20-2 each uniform state service region;
20-3 (10) an inventory of all publicly and, where possible,
20-4 privately funded housing resources, including public housing
20-5 authorities, housing finance corporations, community housing
20-6 development organizations, and community action agencies;
20-7 (11) strategies for meeting rural housing needs;
20-8 (12) information on the demand for contract-for-deed
20-9 conversions, services from self-help centers, consumer education,
20-10 and other colonia resident services in counties some part of which
20-11 is within 150 miles of the international border of this state;
20-12 (13) a summary of public comments received at a
20-13 hearing under this chapter or from another source that concern the
20-14 demand for colonia resident services described by Subdivision (12);
20-15 and
20-16 (14) any other housing-related information that the
20-17 state is required to include in the one-year action plan of the
20-18 consolidated plan submitted annually to the United States
20-19 Department of Housing and Urban Development.
20-20 (f) The director may subdivide the uniform state service
20-21 regions as necessary for purposes of the state low income housing
20-22 plan.
20-23 SECTION 1.14. Section 2306.0722, Government Code, is amended
20-24 to read as follows:
20-25 Sec. 2306.0722. PREPARATION OF PLAN AND REPORT. (a) Before
20-26 preparing the annual low income housing report under Section
21-1 2306.072 and the state low income housing plan under Section
21-2 2306.0721, the department shall meet with regional planning
21-3 commissions created under Chapter 391, Local Government Code,
21-4 representatives of groups with an interest in low income housing,
21-5 nonprofit housing organizations, managers, owners, and developers
21-6 of affordable housing, local government officials, and residents of
21-7 low income housing. The department shall obtain the comments and
21-8 suggestions of the representatives, officials, and residents about
21-9 the prioritization and allocation of the department's resources in
21-10 regard to housing.
21-11 (b) In preparing the annual report under Section 2306.072
21-12 and the state low income housing plan under Section 2306.0721, the
21-13 director shall:
21-14 (1) coordinate local, state, and federal housing
21-15 resources, including tax exempt housing bond financing and low
21-16 income housing tax credits;
21-17 (2) set priorities for the available housing resources
21-18 to help the neediest individuals;
21-19 (3) evaluate the success of publicly supported housing
21-20 programs;
21-21 (4) survey and identify the unmet housing needs of
21-22 individuals the department is required to assist;
21-23 (5) ensure that housing programs benefit an individual
21-24 without regard to the individual's race, ethnicity, sex, or
21-25 national origin;
21-26 (6) develop housing opportunities for individuals and
22-1 families of low and very low income and individuals with special
22-2 housing needs;
22-3 (7) develop housing programs through an open, fair,
22-4 and public process;
22-5 (8) set priorities for assistance in a manner that is
22-6 appropriate and consistent with the housing needs of the
22-7 populations described by Section 2306.0721(c)(1);
22-8 (9) incorporate recommendations that are consistent
22-9 with the consolidated plan submitted annually by the state to the
22-10 United States Department of Housing and Urban Development;
22-11 (10) identify the organizations and individuals
22-12 consulted by the department in preparing the annual report and
22-13 state low income housing plan and summarize and incorporate
22-14 comments and suggestions provided under Subsection (a) as the board
22-15 determines to be appropriate;
22-16 (11) develop a plan to respond to changes in federal
22-17 funding and programs for the provision of affordable housing; [and]
22-18 (12) use the following standardized categories to
22-19 describe the income of program applicants and beneficiaries:
22-20 (A) 0 to 30 percent of area median income
22-21 adjusted for family size;
22-22 (B) more than 30 to 60 percent of area median
22-23 income adjusted for family size;
22-24 (C) more than 60 to 80 percent of area median
22-25 income adjusted for family size;
22-26 (D) more than 80 to 115 percent of area median
23-1 income adjusted for family size; or
23-2 (E) more than 115 percent of area median income
23-3 adjusted for family size; and
23-4 (13) use the most recent census data combined with
23-5 existing data from local housing and community service providers in
23-6 the state, including public housing authorities, housing finance
23-7 corporations, community housing development organizations, and
23-8 community action agencies.
23-9 SECTION 1.15. Subsection (a), Section 2306.0723, Government
23-10 Code, is amended to read as follows:
23-11 (a) The department shall hold public hearings on the annual
23-12 state low income housing plan and report before the director
23-13 submits the report and the plan to the board. [Public hearings
23-14 shall be held in Dallas or Fort Worth, El Paso, Houston, San
23-15 Antonio, the Lower Rio Grande Valley, and at least two additional
23-16 municipalities selected by the department to represent
23-17 geographically diverse communities.] The department shall provide
23-18 notice of the public hearings as required by Section 2306.0661.
23-19 The published notice must include a summary of the report and plan.
23-20 The department shall accept comments on the report and plan at the
23-21 public hearings and for at least 30 days after the date of the
23-22 publication of the notice of the hearings.
23-23 SECTION 1.16. Section 2306.111, Government Code, is amended
23-24 by amending Subsection (d) and adding Subsections (g) and (h) to
23-25 read as follows:
23-26 (d) The department shall allocate housing funds provided to
24-1 the state under the Cranston-Gonzalez National Affordable Housing
24-2 Act (42 U.S.C. Section 12701 et seq.), housing trust funds
24-3 administered by the department under Sections 2306.201-2306.206,
24-4 and commitments issued under the federal low income housing tax
24-5 credit program administered by the department under Subchapter DD
24-6 [Sections 2306.671-2306.678] to each uniform state service region
24-7 based on a formula developed by the department that is based on the
24-8 need for housing assistance and the availability of housing
24-9 resources, provided that the allocations are consistent with
24-10 applicable federal and state requirements and limitations. The
24-11 department shall use the information contained in its annual state
24-12 low income housing plan and shall use other appropriate data to
24-13 develop the formula. If the department determines under the
24-14 formula that an insufficient number of eligible applications for
24-15 assistance out of funds or credits allocable under this subsection
24-16 are submitted to the department from a particular uniform state
24-17 service region, the department shall use the unused funds or
24-18 credits allocated to that region for all other regions based on
24-19 identified need and financial feasibility.
24-20 (g) For each uniform state service region, the department
24-21 shall establish funding priorities to ensure that:
24-22 (1) funds are awarded to project applicants who are
24-23 best able to meet recognized needs for affordable housing, as
24-24 determined by the department;
24-25 (2) when practicable and when authorized under Section
24-26 42, Internal Revenue Code of 1986 (26 U.S.C. Section 42), the least
25-1 restrictive funding sources are used to serve the lowest income
25-2 residents; and
25-3 (3) funds are awarded based on a project applicant's
25-4 ability, when consistent with Section 42, Internal Revenue Code of
25-5 1986 (26 U.S.C. Section 42), practicable, and economically
25-6 feasible, to:
25-7 (A) provide the greatest number of residential
25-8 units;
25-9 (B) serve persons with the lowest percent area
25-10 median family income;
25-11 (C) extend the duration of the project to serve
25-12 a continuing public need; and
25-13 (D) use other funding sources to minimize the
25-14 amount of subsidy needed to complete the project.
25-15 (h) The department by rule shall adopt a policy providing
25-16 for the reallocation of financial assistance administered by the
25-17 department, including financial assistance related to bonds issued
25-18 by the department, if the department's obligation with respect to
25-19 that assistance is prematurely terminated.
25-20 SECTION 1.17. Subchapter F, Chapter 2306, Government Code,
25-21 is amended by adding Sections 2306.1111, 2306.1112, and 2306.1113
25-22 to read as follows:
25-23 Sec. 2306.1111. UNIFORM APPLICATION AND FUNDING CYCLE.
25-24 (a) Notwithstanding any other state law and to the extent
25-25 consistent with federal law, the department shall establish a
25-26 uniform application and funding cycle for multifamily housing
26-1 programs administered by the department under this chapter.
26-2 (b) Wherever possible, the department shall use uniform
26-3 threshold requirements for multifamily housing program
26-4 applications, including uniform threshold requirements relating to
26-5 market studies and environmental reports.
26-6 Sec. 2306.1112. EXECUTIVE AWARD AND REVIEW ADVISORY
26-7 COMMITTEE. (a) The department shall establish an executive award
26-8 and review advisory committee to make recommendations to the board
26-9 regarding funding and allocation decisions.
26-10 (b) The advisory committee is composed of the administrator
26-11 of each of the department's programs and one representative from
26-12 each of the department's planning, underwriting, and compliance
26-13 functions.
26-14 (c) The advisory committee shall develop the funding
26-15 priorities required by Section 2306.111(g) and shall make funding
26-16 and allocation recommendations to the board based on the ability of
26-17 applicants to meet those priorities.
26-18 (d) The advisory committee is not subject to Chapter 2110.
26-19 Sec. 2306.1113. EX-PARTE COMMUNICATIONS. (a) During the
26-20 period beginning on the date a project application is filed and
26-21 ending on the date the board makes a final decision with respect to
26-22 any approval of that application, the following persons are
26-23 prohibited from communicating with a member of the board:
26-24 (1) the applicant or a related party, as defined by
26-25 board rules; and
26-26 (2) any person who is:
27-1 (A) active in the construction, rehabilitation,
27-2 ownership, or control of the proposed project, including:
27-3 (i) a general partner or contractor; and
27-4 (ii) a principal or affiliate of a general
27-5 partner or contractor; or
27-6 (B) employed as a lobbyist by the applicant or a
27-7 related party.
27-8 (b) Notwithstanding Subsection (a), a person described by
27-9 that subsection may communicate with a board member at any board
27-10 meeting or public hearing held with respect to the application.
27-11 SECTION 1.18. Section 2306.149, Government Code, is amended
27-12 to read as follows:
27-13 Sec. 2306.149. APPROVED MORTGAGE LENDERS. The board shall
27-14 have the specific duty and power to compile a list of approved
27-15 mortgage lenders. The board shall not approve a mortgage lender
27-16 that requires mandatory arbitration for home loans.
27-17 SECTION 1.19. Subchapter H, Chapter 2306, Government Code,
27-18 is amended by adding Section 2306.1711 to read as follows:
27-19 Sec. 2306.1711. RULEMAKING PROCEDURES FOR CERTAIN PROGRAMS.
27-20 (a) The department shall adopt rules outlining formal rulemaking
27-21 procedures for the low income housing tax credit program and the
27-22 multifamily housing mortgage revenue bond program in accordance
27-23 with Chapter 2001.
27-24 (b) The rules adopted under Subsection (a) must include:
27-25 (1) procedures for allowing interested parties to
27-26 petition the department to request the adoption of a new rule or
28-1 the amendment of an existing rule;
28-2 (2) notice requirements and deadlines for taking
28-3 certain actions; and
28-4 (3) a provision for a public hearing.
28-5 (c) The department shall provide for public input before
28-6 adopting rules for programs with requests for proposals and notices
28-7 of funding availability.
28-8 SECTION 1.20. Section 2306.252, Government Code, is amended
28-9 by amending Subsection (b) and adding Subsections (d) through (g)
28-10 to read as follows:
28-11 (b) The department, through the center, shall:
28-12 (1) provide educational material prepared in plain
28-13 language to housing advocates, housing sponsors, borrowers, and
28-14 tenants;
28-15 (2) provide technical assistance to nonprofit housing
28-16 sponsors; [and]
28-17 (3) assist in the development of housing policy,
28-18 including the annual state low income housing plan and report and
28-19 the consolidated plan;
28-20 (4) maintain communication with local governments and
28-21 act as an advocate for local governments at the state and federal
28-22 levels;
28-23 (5) assist local governments with advisory and
28-24 technical services;
28-25 (6) provide financial aid to local governments and
28-26 combinations of local governments for programs that are authorized
29-1 to receive assistance;
29-2 (7) provide information about and referrals for state
29-3 and federal programs and services that affect local governments;
29-4 (8) administer, conduct, or jointly sponsor
29-5 educational and training programs for local government officials;
29-6 (9) conduct research on problems of general concern to
29-7 local governments;
29-8 (10) collect, publish, and distribute information
29-9 useful to local governments, including information on:
29-10 (A) local government finances and employment;
29-11 (B) housing;
29-12 (C) population characteristics; and
29-13 (D) land-use patterns;
29-14 (11) encourage cooperation among local governments as
29-15 appropriate;
29-16 (12) advise and inform the governor and the
29-17 legislature about the affairs of local governments and recommend
29-18 necessary action;
29-19 (13) assist the governor in coordinating federal and
29-20 state activities affecting local governments;
29-21 (14) administer, as appropriate:
29-22 (A) state responsibilities for programs created
29-23 under the federal Economic Opportunity Act of 1964 (42 U.S.C.
29-24 Section 2701 et seq.);
29-25 (B) programs assigned to the department under
29-26 the Omnibus Budget Reconciliation Act of 1981 (Pub. L. No. 97-35);
30-1 and
30-2 (C) other federal acts creating economic
30-3 opportunity programs assigned to the department;
30-4 (15) develop a consumer education program to educate
30-5 consumers on executory contract transactions for conveyance of real
30-6 property used or to be used as the consumer's residence;
30-7 (16) adopt rules that are necessary and proper to
30-8 carry out programs and responsibilities assigned by the legislature
30-9 or the governor; and
30-10 (17) perform other duties relating to local government
30-11 that are assigned by the legislature or the governor.
30-12 (d) The center shall serve as a housing and community
30-13 services clearinghouse to provide information to the public, local
30-14 communities, housing providers, and other interested parties
30-15 regarding:
30-16 (1) the performance of each department program;
30-17 (2) the number of people served;
30-18 (3) the income of people served;
30-19 (4) the funding amounts distributed;
30-20 (5) allocation decisions;
30-21 (6) regional impact of department programs; and
30-22 (7) any other relevant information.
30-23 (e) The center shall compile the department's reports into
30-24 an integrated format and shall compile and maintain a list of all
30-25 affordable housing resources in the state, organized by community.
30-26 (f) The information required under Subsections (d) and (e)
31-1 must be readily available in:
31-2 (1) a hard-copy format; and
31-3 (2) a user-friendly format on the department's
31-4 website.
31-5 (g) The center shall provide information regarding the
31-6 department's housing and community affairs programs to the Texas
31-7 Information and Referral Network for inclusion in the statewide
31-8 information and referral network as required by Section 531.0312.
31-9 SECTION 1.21. Subchapter K, Chapter 2306, Government Code,
31-10 is amended by adding Sections 2306.256 and 2306.257 to read as
31-11 follows:
31-12 Sec. 2306.256. AFFORDABLE HOUSING PRESERVATION PROGRAM.
31-13 (a) The department shall develop and implement a program to
31-14 preserve affordable housing in this state.
31-15 (b) Through the program, the department shall:
31-16 (1) maintain data on housing projected to lose its
31-17 affordable status;
31-18 (2) develop policies necessary to ensure the
31-19 preservation of affordable housing in this state;
31-20 (3) advise other program areas with respect to the
31-21 policies; and
31-22 (4) assist those other program areas in implementing
31-23 the policies.
31-24 Sec. 2306.257. APPLICANT COMPLIANCE WITH STATE AND FEDERAL
31-25 LAWS PROHIBITING DISCRIMINATION: CERTIFICATION AND MONITORING.
31-26 (a) The department may provide assistance through a housing
32-1 program under this chapter only to an applicant who certifies the
32-2 applicant's compliance with:
32-3 (1) state and federal fair housing laws, including
32-4 Title VIII of the Civil Rights Act of 1968 (42 U.S.C. Section 3601
32-5 et seq.), the Fair Housing Amendments Act of 1988 (42 U.S.C.
32-6 Section 3601 et seq.), and Chapter 301, Property Code;
32-7 (2) the Civil Rights Act of 1964 (42 U.S.C. Section
32-8 2000a et seq.);
32-9 (3) the Americans with Disabilities Act of 1990 (42
32-10 U.S.C. Section 12101 et seq.); and
32-11 (4) the Rehabilitation Act of 1973 (29 U.S.C. Section
32-12 701 et seq.).
32-13 (b) In conjunction with the state Commission on Human
32-14 Rights, the department shall adopt rules governing the
32-15 certification process described by this section, including rules
32-16 establishing:
32-17 (1) procedures for certifying compliance;
32-18 (2) methods for measuring continued compliance; and
32-19 (3) different degrees of sanctions for noncompliance
32-20 and reasonable periods for correcting noncompliance.
32-21 (c) Sanctions imposed under Subsection (b)(3) may:
32-22 (1) include a public reprimand, termination of
32-23 assistance, and a bar on future eligibility for assistance through
32-24 a housing program under this chapter; and
32-25 (2) be imposed in addition to any action taken by the
32-26 state Commission on Human Rights.
33-1 (d) The department shall promptly notify the state
33-2 Commission on Human Rights if the department determines that a
33-3 program participant may have failed to comply with the laws listed
33-4 by Subsection (a).
33-5 SECTION 1.22. Subsections (a), (a-1), and (b), Section
33-6 2306.358, Government Code, are amended to read as follows:
33-7 (a) Of the total qualified 501(c)(3) bonds issued under
33-8 Section 145 of the Internal Revenue Code of 1986 (26 U.S.C. Section
33-9 145) in each fiscal year, it is the express intent of the
33-10 legislature that the department shall allocate qualified 501(c)(3)
33-11 bonding authority as follows:
33-12 (1) [at least 50 percent of the total annual issuance
33-13 amount authorized through the memorandum of understanding provided
33-14 for in Subsection (b) of this section is reserved for the purposes
33-15 of new construction or acquisition with substantial rehabilitation;]
33-16 [(2)] not more than 25 percent of the total annual
33-17 issuance amount authorized through the memorandum of understanding
33-18 provided for in Subsection (b) [of this section] may be used for
33-19 projects in any one metropolitan area; and
33-20 (2) [(3)] at least 15 percent of the annual issuance
33-21 amount authorized through the memorandum of understanding provided
33-22 for in Subsection (b) [of this section] is reserved for projects in
33-23 rural areas.
33-24 (a-1) For the purposes of Subsection (a), "rural[:]
33-25 [(1) "Rural] area" and "metropolitan area" shall be
33-26 defined through the memorandum of understanding provided for in
34-1 Subsection (b) [of this section.]
34-2 [(2) "Substantial rehabilitation" means rehabilitation
34-3 of a project with a minimum of $5,000 of rehabilitation cost per
34-4 unit].
34-5 (b) A qualified 501(c)(3) bond may not be issued unless
34-6 approved by the Bond Review Board. In addition, the Bond Review
34-7 Board shall enter into a memorandum of understanding with the
34-8 department specifying the amount of bonds to be issued in each
34-9 fiscal year. The department and the Bond Review Board shall review
34-10 the memorandum of understanding annually to determine the specific
34-11 amount of bonds to be issued in each fiscal year. The Bond Review
34-12 Board may not approve a proposal to issue qualified 501(c)(3) bonds
34-13 unless they meet the requirements of this section, including the
34-14 memorandum of understanding, and all other laws that may apply.
34-15 SECTION 1.23. The heading to Subchapter Z, Chapter 2306,
34-16 Government Code, is amended to read as follows:
34-17 SUBCHAPTER Z. COLONIAS [COLONIA SELF-HELP CENTERS]
34-18 SECTION 1.24. Subchapter Z, Chapter 2306, Government Code,
34-19 is amended by amending Sections 2306.584 and 2306.585 and adding
34-20 Sections 2306.590 and 2306.591 to read as follows:
34-21 Sec. 2306.584. COLONIA RESIDENT ADVISORY COMMITTEE.
34-22 (a) The board [department] shall appoint not fewer than five
34-23 persons who are residents of colonias to serve on a colonia
34-24 resident [an] advisory committee. The members of the colonia
34-25 resident advisory committee shall be selected from lists of
34-26 candidates submitted to the board [department] by local nonprofit
35-1 organizations and the commissioners court of a county in which a
35-2 self-help center is located.
35-3 (b) The board [department] shall appoint one committee
35-4 member to represent each of the counties in which self-help centers
35-5 are located. Each committee member:
35-6 (1) must be a resident of a colonia in the county the
35-7 member represents; and
35-8 (2) may not be a board member, contractor, or employee
35-9 of or have any ownership interest in an entity that is awarded a
35-10 contract under this subchapter.
35-11 Sec. 2306.585. DUTIES OF COLONIA RESIDENT ADVISORY
35-12 COMMITTEE. (a) The colonia resident advisory committee shall
35-13 advise the board [department] regarding:
35-14 (1) the needs of colonia residents;
35-15 (2) appropriate and effective programs that are
35-16 proposed or are operated through the self-help centers; and
35-17 (3) activities that may be undertaken through the
35-18 self-help centers to better serve the needs of colonia residents.
35-19 (b) The colonia resident advisory committee shall meet
35-20 before the 30th day preceding the date on which a contract is
35-21 scheduled to be awarded for the operation of a self-help center and
35-22 may meet at other times.
35-23 Sec. 2306.590. COLONIA INITIATIVES ADVISORY COMMITTEE.
35-24 (a) The board shall establish a colonia initiatives advisory
35-25 committee that is composed of the following members appointed by
35-26 the board:
36-1 (1) one member who resides in a colonia;
36-2 (2) one member who represents a nonprofit organization
36-3 that provides assistance to colonia residents;
36-4 (3) one member who represents a local political
36-5 subdivision containing all or part of a colonia;
36-6 (4) one member who represents private interests in
36-7 banking or land development; and
36-8 (5) one member who represents the public.
36-9 (b) Each member of the colonia initiatives advisory
36-10 committee other than the public member must reside within 150 miles
36-11 of the international border of this state.
36-12 (c) The colonia initiatives advisory committee shall:
36-13 (1) review public comments regarding the colonia needs
36-14 assessment incorporated into the state low income housing plan
36-15 under Section 2306.0721; and
36-16 (2) based on those public comments, recommend to the
36-17 board new colonia programs or improvements to existing colonia
36-18 programs.
36-19 Sec. 2306.591. BIENNIAL ACTION PLAN. (a) The office
36-20 established by the department to promote initiatives for colonias
36-21 shall prepare a biennial action plan addressing policy goals for
36-22 colonia programs, strategies to meet the policy goals, and the
36-23 projected outcomes with respect to the policy goals.
36-24 (b) The office shall solicit public comments regarding the
36-25 plan at a public hearing. At least six weeks before the public
36-26 hearing, the office shall prepare and publish an initial draft of
37-1 the plan.
37-2 (c) After the public hearing, the office must publish a
37-3 final plan that:
37-4 (1) lists any changes made to the initial draft of the
37-5 plan that are based on public comments regarding the initial draft;
37-6 and
37-7 (2) directly addresses those public comments.
37-8 (d) The office shall send the final plan to the colonia
37-9 initiatives advisory committee for review and comment. After
37-10 receiving comments, the office shall send the plan to the board for
37-11 final approval, with the comments of the colonia initiatives
37-12 advisory committee attached to the plan.
37-13 SECTION 1.25. Subsection (c), Section 2306.589, Government
37-14 Code, is amended to read as follows:
37-15 (c) The department may use money in the colonia set-aside
37-16 fund for specific activities that assist colonias, including:
37-17 (1) the operation and activities of the self-help
37-18 centers established under this subchapter;
37-19 (2) reimbursement of colonia resident advisory
37-20 committee members and colonia initiatives advisory committee
37-21 members for their reasonable expenses in the manner provided by
37-22 Chapter 2110 [Article 6252-33, Revised Statutes,] or the General
37-23 Appropriations Act; and
37-24 (3) funding for the provision of water and sewer
37-25 service connections in accordance with Subsection (b).
37-26 SECTION 1.26. Subchapter AA, Chapter 2306, Government Code,
38-1 is amended to read as follows:
38-2 SUBCHAPTER AA. MANUFACTURED HOUSING DIVISION
38-3 Sec. 2306.6001 [2306.601]. DEFINITIONS. In this subchapter:
38-4 (1) "Division" means the manufactured housing
38-5 division.
38-6 (2) "Division director" means the executive director
38-7 of the division.
38-8 (3) "Manufactured Housing Board" means the governing
38-9 board of the division.
38-10 Sec. 2306.6002. REGULATION AND ENFORCEMENT. The department
38-11 shall administer and enforce the Texas Manufactured Housing
38-12 Standards Act (Article 5221f, Vernon's Texas Civil Statutes)
38-13 through the [manufactured housing] division. The Manufactured
38-14 Housing Board [board] and the division director shall exercise
38-15 authority and responsibilities assigned to them under that Act.
38-16 Sec. 2306.6003. MANUFACTURED HOUSING BOARD. (a) The
38-17 Manufactured Housing Board is an independent entity within the
38-18 department, is administratively attached to the department, and is
38-19 not an advisory body to the department.
38-20 (b) The Manufactured Housing Board shall carry out the
38-21 functions and duties conferred on the Manufactured Housing Board by
38-22 this subchapter and by other law.
38-23 Sec. 2306.6004. MANUFACTURED HOUSING BOARD MEMBERSHIP.
38-24 (a) The Manufactured Housing Board consists of five public members
38-25 appointed by the governor.
38-26 (b) A person is eligible to be appointed as a public member
39-1 of the Manufactured Housing Board if the person is a citizen of the
39-2 United States and a resident of this state.
39-3 (c) A person may not be a member of the Manufactured Housing
39-4 Board if the person or the person's spouse:
39-5 (1) is registered, certified, or licensed by a
39-6 regulatory agency in the field of manufactured housing;
39-7 (2) is employed by or participates in the management
39-8 of a business entity or other organization regulated by or
39-9 receiving money from the division;
39-10 (3) owns or controls, directly or indirectly, more
39-11 than a 10 percent interest in a business entity or other
39-12 organization regulated by or receiving money from the division; or
39-13 (4) uses or receives a substantial amount of tangible
39-14 goods, services, or money from the division other than compensation
39-15 or reimbursement authorized by law for Manufactured Housing Board
39-16 membership, attendance, or expenses.
39-17 (d) Appointments to the Manufactured Housing Board shall be
39-18 made without regard to the race, color, disability, sex, religion,
39-19 age, or national origin of the appointees.
39-20 Sec. 2306.6005. CONFLICT OF INTEREST. (a) In this section,
39-21 "Texas trade association" means a cooperative and voluntarily
39-22 joined association of business or professional competitors in this
39-23 state designed to assist its members and its industry or profession
39-24 in dealing with mutual business or professional problems and in
39-25 promoting their common interest.
39-26 (b) A person may not be a member of the Manufactured Housing
40-1 Board and may not be a division employee employed in a "bona fide
40-2 executive, administrative, or professional capacity," as that
40-3 phrase is used for purposes of establishing an exemption to the
40-4 overtime provisions of the federal Fair Labor Standards Act of 1938
40-5 (29 U.S.C. Section 201 et seq.), and its subsequent amendments, if:
40-6 (1) the person is an officer, employee, or paid
40-7 consultant of a Texas trade association in the field of
40-8 manufactured housing; or
40-9 (2) the person's spouse is an officer, manager, or
40-10 paid consultant of a Texas trade association in the field of
40-11 manufactured housing.
40-12 (c) A person may not be a member of the Manufactured Housing
40-13 Board or act as the general counsel to the Manufactured Housing
40-14 Board or the division if the person is required to register as a
40-15 lobbyist under Chapter 305 because of the person's activities for
40-16 compensation on behalf of a profession related to the operation of
40-17 the division.
40-18 Sec. 2306.6006. TERMS; VACANCY. (a) The members of the
40-19 Manufactured Housing Board serve staggered six-year terms, with the
40-20 terms of one or two members expiring on January 31 of each
40-21 odd-numbered year.
40-22 (b) A person may not serve two consecutive full six-year
40-23 terms as a member of the Manufactured Housing Board.
40-24 (c) If a vacancy occurs during a member's term, the governor
40-25 shall appoint a new member to fill the unexpired term.
40-26 Sec. 2306.6007. PRESIDING OFFICER. The governor shall
41-1 designate a member of the Manufactured Housing Board as the
41-2 presiding officer of the Manufactured Housing Board to serve in
41-3 that capacity at the will of the governor.
41-4 Sec. 2306.6008. GROUNDS FOR REMOVAL. (a) It is a ground
41-5 for removal from the Manufactured Housing Board that a member:
41-6 (1) does not have at the time of taking office the
41-7 qualifications required by Section 2306.6004(b);
41-8 (2) does not maintain during service on the
41-9 Manufactured Housing Board the qualifications required by Section
41-10 2306.6004(b);
41-11 (3) is ineligible for membership under Section
41-12 2306.6004(c) or 2306.6005;
41-13 (4) cannot, because of illness or disability,
41-14 discharge the member's duties for a substantial part of the
41-15 member's term; or
41-16 (5) is absent from more than half of the regularly
41-17 scheduled Manufactured Housing Board meetings that the member is
41-18 eligible to attend during a calendar year without an excuse
41-19 approved by a majority vote of the Manufactured Housing Board.
41-20 (b) The validity of an action of the Manufactured Housing
41-21 Board is not affected by the fact that it is taken when a ground
41-22 for removal of a Manufactured Housing Board member exists.
41-23 (c) If the division director has knowledge that a potential
41-24 ground for removal exists, the division director shall notify the
41-25 presiding officer of the Manufactured Housing Board of the
41-26 potential ground. The presiding officer shall then notify the
42-1 governor and the attorney general that a potential ground for
42-2 removal exists. If the potential ground for removal involves the
42-3 presiding officer, the division director shall notify the next
42-4 highest ranking officer of the Manufactured Housing Board, who
42-5 shall then notify the governor and the attorney general that a
42-6 potential ground for removal exists.
42-7 Sec. 2306.6009. PER DIEM; REIMBURSEMENT. (a) Each member
42-8 of the Manufactured Housing Board is entitled to a per diem as set
42-9 by legislative appropriation for each day that the member engages
42-10 in the business of the Manufactured Housing Board.
42-11 (b) A Manufactured Housing Board member may be reimbursed
42-12 for actual travel expenses, including expenses for meals, lodging,
42-13 and transportation. A Manufactured Housing Board member is
42-14 entitled to reimbursement for transportation expenses as provided
42-15 by the General Appropriations Act.
42-16 (c) At the time a Manufactured Housing Board member applies
42-17 for reimbursement under this section, the member shall make a sworn
42-18 statement of the number of days the member engaged in the business
42-19 of the Manufactured Housing Board and the amount of the member's
42-20 expenses.
42-21 Sec. 2306.6010. MEETINGS. (a) The Manufactured Housing
42-22 Board shall have regular meetings as the majority of the members
42-23 may specify and special meetings at the request of the presiding
42-24 officer, any two members, or the division director.
42-25 (b) Reasonable notice of all meetings shall be given as
42-26 prescribed by Manufactured Housing Board rules.
43-1 (c) The presiding officer shall preside at all meetings of
43-2 the Manufactured Housing Board. In the absence of the presiding
43-3 officer, the members present shall select one of the members to
43-4 preside at the meeting.
43-5 Sec. 2306.6011. TRAINING. (a) A person who is appointed to
43-6 and qualifies for office as a member of the Manufactured Housing
43-7 Board may not vote, deliberate, or be counted as a member in
43-8 attendance at a meeting of the Manufactured Housing Board until the
43-9 person completes a training program that complies with this
43-10 section.
43-11 (b) The training program must provide the person with
43-12 information regarding:
43-13 (1) the legislation that created the division and the
43-14 Manufactured Housing Board;
43-15 (2) the programs operated by the division;
43-16 (3) the role and functions of the division;
43-17 (4) the rules of the division, with an emphasis on the
43-18 rules that relate to disciplinary and investigatory authority;
43-19 (5) the current budget for the division;
43-20 (6) the results of the most recent formal audit of the
43-21 division;
43-22 (7) the requirements of:
43-23 (A) the open meetings law, Chapter 551;
43-24 (B) the public information law, Chapter 552;
43-25 (C) the administrative procedure law, Chapter
43-26 2001; and
44-1 (D) other laws relating to public officials,
44-2 including conflict-of-interest laws; and
44-3 (8) any applicable ethics policies adopted by the
44-4 division or the Texas Ethics Commission.
44-5 (c) A person appointed to the Manufactured Housing Board is
44-6 entitled to reimbursement, as provided by the General
44-7 Appropriations Act, for the travel expenses incurred in attending
44-8 the training program regardless of whether the attendance at the
44-9 program occurs before or after the person qualifies for office.
44-10 Sec. 2306.6012. APPROPRIATIONS; DONATIONS. (a) The
44-11 legislature shall separately appropriate money to the Manufactured
44-12 Housing Board within the appropriations to the department for all
44-13 matters relating to the operation of the division.
44-14 (b) The Manufactured Housing Board may accept gifts and
44-15 grants of money or property under this subchapter and shall spend
44-16 the money and use the property for the purpose for which the
44-17 donation was made, except that the expenditure of money or use of
44-18 property must promote the acceptance of HUD-Code manufactured homes
44-19 as a viable source of housing for very low, low, and moderate
44-20 income families.
44-21 Sec. 2306.6013. BUDGET; SHARING OF DEPARTMENT PERSONNEL,
44-22 EQUIPMENT, AND FACILITIES. (a) The Manufactured Housing Board
44-23 shall develop a budget for the operations of the department
44-24 relating to the division.
44-25 (b) The Manufactured Housing Board shall reduce
44-26 administrative costs by entering into an agreement with the
45-1 department to enable the sharing of department personnel,
45-2 equipment, and facilities.
45-3 Sec. 2306.6014. DIVISION DIRECTOR. (a) The Manufactured
45-4 Housing Board shall employ the division director. The division
45-5 director is the Manufactured Housing Board's chief executive and
45-6 administrative officer.
45-7 (b) The division director is charged with administering,
45-8 enforcing, and carrying out the functions and duties conferred on
45-9 the division director by this subchapter and by other law.
45-10 (c) The division director serves at the pleasure of the
45-11 Manufactured Housing Board.
45-12 Sec. 2306.6015 [2306.602]. PERSONNEL. The division director
45-13 may employ staff as necessary to perform the work of the
45-14 [manufactured housing] division and may prescribe their duties and
45-15 compensation. Subject to applicable personnel policies and
45-16 regulations, the division director may remove any division
45-17 employee.
45-18 Sec. 2306.6016. SEPARATION OF RESPONSIBILITIES. The
45-19 Manufactured Housing Board shall develop and implement policies
45-20 that clearly separate the policy-making responsibilities of the
45-21 Manufactured Housing Board and the management responsibilities of
45-22 the division director and staff of the division.
45-23 Sec. 2306.6017. STANDARDS OF CONDUCT. The division director
45-24 or the division director's designee shall provide to members of the
45-25 Manufactured Housing Board and to division employees, as often as
45-26 necessary, information regarding the requirements for office or
46-1 employment under this subchapter, including information regarding a
46-2 person's responsibilities under applicable laws relating to
46-3 standards of conduct for state officers or employees.
46-4 Sec. 2306.6018. EQUAL EMPLOYMENT OPPORTUNITY. (a) The
46-5 division director or the division director's designee shall prepare
46-6 and maintain a written policy statement that implements a program
46-7 of equal employment opportunity to ensure that all personnel
46-8 decisions are made without regard to race, color, disability, sex,
46-9 religion, age, or national origin.
46-10 (b) The policy statement must include:
46-11 (1) personnel policies, including policies relating to
46-12 recruitment, evaluation, selection, training, and promotion of
46-13 personnel, that show the intent of the division to avoid the
46-14 unlawful employment practices described by Chapter 21, Labor Code;
46-15 and
46-16 (2) an analysis of the extent to which the composition
46-17 of the division's personnel is in accordance with state and federal
46-18 law and a description of reasonable methods to achieve compliance
46-19 with state and federal law.
46-20 (c) The policy statement must:
46-21 (1) be updated annually;
46-22 (2) be reviewed by the state Commission on Human
46-23 Rights for compliance with Subsection (b)(1); and
46-24 (3) be filed with the governor's office.
46-25 Sec. 2306.6019. STATE EMPLOYEE INCENTIVE PROGRAM. The
46-26 division director or the division director's designee shall provide
47-1 to division employees information and training on the benefits and
47-2 methods of participation in the state employee incentive program
47-3 under Subchapter B, Chapter 2108.
47-4 Sec. 2306.6020 [2306.603]. RULES. (a) The Manufactured
47-5 Housing Board [director] shall adopt rules as necessary to
47-6 implement this subchapter and to administer and enforce the
47-7 manufactured housing program through the [manufactured housing]
47-8 division. Rules adopted by the Manufactured Housing Board
47-9 [director] are subject to Chapter 2001[, Government Code].
47-10 (b) The Manufactured Housing Board [director] may not adopt
47-11 rules restricting competitive bidding or advertising by a person
47-12 regulated by the division except to prohibit false, misleading, or
47-13 deceptive practices by that person.
47-14 (c) The Manufactured Housing Board [director] may not
47-15 include in the rules to prohibit false, misleading, or deceptive
47-16 practices by a person regulated by the division a rule that:
47-17 (1) restricts the use of any advertising medium;
47-18 (2) restricts the person's personal appearance or the
47-19 use of the person's voice in an advertisement;
47-20 (3) relates to the size or duration of an
47-21 advertisement used by the person; or
47-22 (4) restricts the use of a trade name in advertising
47-23 by the person.
47-24 Sec. 2306.6021. PUBLIC PARTICIPATION. The Manufactured
47-25 Housing Board shall develop and implement policies that provide the
47-26 public with a reasonable opportunity to appear before the
48-1 Manufactured Housing Board and to speak on any issue under the
48-2 jurisdiction of the division.
48-3 Sec. 2306.6022. COMPLAINTS. (a) The division shall
48-4 maintain a file on each written complaint filed with the division.
48-5 The file must include:
48-6 (1) the name of the person who filed the complaint;
48-7 (2) the date the complaint is received by the
48-8 division;
48-9 (3) the subject matter of the complaint;
48-10 (4) the name of each person contacted in relation to
48-11 the complaint;
48-12 (5) a summary of the results of the review or
48-13 investigation of the complaint; and
48-14 (6) an explanation of the reason the file was closed,
48-15 if the division closed the file without taking action other than to
48-16 investigate the complaint.
48-17 (b) The division shall provide to the person filing the
48-18 complaint and to each person who is a subject of the complaint a
48-19 copy of the division's policies and procedures relating to
48-20 complaint investigation and resolution.
48-21 (c) The division, at least quarterly until final disposition
48-22 of the complaint, shall notify the person filing the complaint and
48-23 each person who is a subject of the complaint of the status of the
48-24 investigation unless the notice would jeopardize an undercover
48-25 investigation.
48-26 Sec. 2306.6023 [2306.604]. SANCTIONS AND PENALTIES.
49-1 (a) The Manufactured Housing Board [director] shall adopt rules
49-2 relating to the administrative sanctions that may be enforced
49-3 against a person regulated by the [manufactured housing] division.
49-4 If the person violates a law relating to the regulation of
49-5 manufactured housing or a rule or order adopted or issued by the
49-6 Manufactured Housing Board [director] relating to the program, the
49-7 division director may:
49-8 (1) issue a written reprimand to the person that
49-9 specifies the violation;
49-10 (2) revoke or suspend the person's certificate of
49-11 registration; or
49-12 (3) place on probation a person whose certificate of
49-13 registration has been suspended.
49-14 (b) In addition to or in lieu of a sanction imposed under
49-15 Subsection (a) of this section, the Manufactured Housing Board
49-16 [board] may assess an administrative penalty in an amount not to
49-17 exceed $1,000 for each violation.
49-18 (c) If a suspension is probated, the division director may
49-19 require the person to report regularly to the division director on
49-20 matters that are the basis of the probation.
49-21 (d) If the division director proposes to suspend or revoke a
49-22 certificate of registration or the division director proposes to
49-23 assess an administrative penalty against a person regulated by the
49-24 division, the person is entitled to a hearing before a hearings
49-25 officer appointed by the division director. The Manufactured
49-26 Housing Board [director] by rule shall prescribe the procedures by
50-1 which a decision to suspend or revoke a certificate of registration
50-2 or to assess an administrative penalty are made and are appealable.
50-3 (e) In determining the amount of an administrative penalty
50-4 assessed under this section, the Manufactured Housing Board [board]
50-5 shall consider:
50-6 (1) the seriousness of the violation;
50-7 (2) the history of previous violations;
50-8 (3) the amount necessary to deter future violations;
50-9 (4) efforts made to correct the violation; and
50-10 (5) any other matters that justice may require.
50-11 (f) If, after investigation of a possible violation and the
50-12 facts surrounding that possible violation, the division director
50-13 determines that a violation has occurred, the division director
50-14 shall issue a preliminary report stating the facts on which the
50-15 conclusion that a violation occurred is based, recommending that an
50-16 administrative penalty under this section be imposed on the person
50-17 charged, and recommending the amount of that proposed penalty. The
50-18 division director shall base the recommended amount of the proposed
50-19 penalty on the seriousness of the violation determined by
50-20 consideration of the factors set forth in Subsection (e) [of this
50-21 section].
50-22 (g) Not later than the 14th day after the date on which the
50-23 preliminary report is issued, the division director shall give
50-24 written notice of the violation to the person charged. The notice
50-25 shall include:
50-26 (1) a brief summary of the charges;
51-1 (2) a statement of the amount of the penalty
51-2 recommended; and
51-3 (3) a statement of the right of the person charged to
51-4 a hearing on the occurrence of the violation, the amount of the
51-5 penalty, or both the occurrence of the violation and the amount of
51-6 the penalty.
51-7 (h) Not later than the 20th day after the date on which the
51-8 notice is received, the person charged may accept the determination
51-9 of the division director made under Subsection (f) [of this
51-10 section], including the recommended penalty, or make a written
51-11 request for a hearing on that determination.
51-12 (i) If the person charged with the violation accepts the
51-13 determination of the division director, the division director shall
51-14 issue an order approving the determination and ordering that the
51-15 person pay the recommended penalty.
51-16 (j) If the person charged fails to respond in a timely
51-17 manner to the notice or if the person requests a hearing, the
51-18 division director shall set a hearing, give written notice of the
51-19 hearing to the person, and designate a hearings examiner to conduct
51-20 the hearing. The hearings examiner shall make findings of fact and
51-21 conclusions of law and shall promptly issue to the Manufactured
51-22 Housing Board [board] a proposal for decision as to the occurrence
51-23 of the violation and a recommendation as to the amount of the
51-24 proposed penalty if a penalty is determined to be warranted. Based
51-25 on the findings of fact and conclusions of law and the
51-26 recommendations of the hearings examiner, the Manufactured Housing
52-1 Board [board] by order may find that a violation has occurred and
52-2 may assess a penalty, or may find that no violation has occurred.
52-3 (k) The division director shall give notice of the
52-4 Manufactured Housing Board's [board's] order to the person charged.
52-5 The notice must include:
52-6 (1) separate statements of the findings of fact and
52-7 conclusions of law;
52-8 (2) the amount of any penalty assessed;
52-9 (3) a statement of the right of the person charged to
52-10 judicial review of the Manufactured Housing Board's [commission's]
52-11 order; and
52-12 (4) any other information required by law.
52-13 (l) Not later than the 30th day after the date on which the
52-14 decision is final, the person charged shall:
52-15 (1) pay the penalty in full; or
52-16 (2) if the person files a petition for judicial review
52-17 contesting the fact of the violation, the amount of the penalty, or
52-18 both the fact of the violation and the amount of the penalty:
52-19 (A) forward the amount assessed to the division
52-20 [department] for deposit in an escrow account;
52-21 (B) in lieu of payment into escrow, post with
52-22 the division [department] a supersedeas bond for the amount of the
52-23 penalty, in a form approved by the division director and effective
52-24 until judicial review of the decision is final; or
52-25 (C) without paying the amount of the penalty or
52-26 posting the supersedeas bond, pursue the judicial review.
53-1 (m) A person charged with a penalty who is financially
53-2 unable to comply with Subsection (l)(2) [of this section] is
53-3 entitled to judicial review if the person files with the court, as
53-4 part of the person's petition for judicial review, a sworn
53-5 statement that the person is unable to meet the requirements of
53-6 that subsection.
53-7 (n) If the person charged does not pay the penalty and does
53-8 not pursue judicial review, the division [department] or the
53-9 attorney general may bring an action for the collection of the
53-10 penalty.
53-11 (o) Judicial review of the order of the Manufactured Housing
53-12 Board [board] assessing the penalty is subject to the substantial
53-13 evidence rule and shall be instituted by filing a petition with a
53-14 Travis County district court.
53-15 (p) If, after judicial review, the penalty is reduced or not
53-16 assessed, the division director shall remit to the person charged
53-17 the appropriate amount, plus accrued interest if the penalty has
53-18 been paid, or shall execute a release of the bond if a supersedeas
53-19 bond has been posted. The accrued interest on amounts remitted by
53-20 the division director under this subsection shall be paid at a rate
53-21 equal to the rate charged on loans to depository institutions by
53-22 the New York Federal Reserve Bank, and shall be paid for the period
53-23 beginning on the date that the assessed penalty is paid to the
53-24 division director and ending on the date the penalty is remitted.
53-25 (q) A penalty collected under this section shall be
53-26 deposited in the state treasury to the credit of the general
54-1 revenue fund.
54-2 (r) All proceedings conducted under this section and any
54-3 review or appeal of those proceedings are subject to Chapter 2001[,
54-4 Government Code].
54-5 (s) If it appears that a person is in violation of, or is
54-6 threatening to violate, any provision of the Texas Manufactured
54-7 Housing Standards Act (Article 5221f, Vernon's Texas Civil
54-8 Statutes), or a rule or order related to the administration and
54-9 enforcement of the manufactured housing program, the attorney
54-10 general or the division director may institute an action for
54-11 injunctive relief to restrain the person from continuing the
54-12 violation and for civil penalties not to exceed $1,000 for each
54-13 violation and not exceeding $250,000 in the aggregate. A civil
54-14 action filed under this subsection shall be filed in district court
54-15 in Travis County. The attorney general and the division director
54-16 may recover reasonable expenses incurred in obtaining injunctive
54-17 relief under this subsection, including court costs, reasonable
54-18 attorney's fees, investigative costs, witness fees, and deposition
54-19 expenses.
54-20 [Sec. 2306.605. ACCEPTANCE OF DONATIONS. The department may
54-21 accept gifts and grants of money or property under this chapter and
54-22 shall spend the money and use the property for the purpose for
54-23 which the donation was made, except that the expenditure of money
54-24 or use of property must promote the acceptance of HUD-Code
54-25 manufactured homes as a viable source of housing for very low, low,
54-26 and moderate income families.]
55-1 SECTION 1.27. Subchapter DD, Chapter 2306, Government Code,
55-2 is amended by adding Sections 2306.6741, and 2306.6761 to read as
55-3 follows:
55-4 Sec. 2306.6741. DEPARTMENT POLICY AND PROCEDURES REGARDING
55-5 RECIPIENTS OF CERTAIN FEDERAL HOUSING ASSISTANCE. (a) The
55-6 department by rule shall adopt a policy regarding the admittance to
55-7 low income housing tax credit properties of income-eligible
55-8 individuals and families receiving assistance under Section 8,
55-9 United States Housing Act of 1937 (42 U.S.C. Section 1437f).
55-10 (b) The policy must provide a reasonable minimum income
55-11 standard not otherwise prohibited by this chapter to be used by
55-12 owners of low income housing tax credit properties and must place
55-13 reasonable limits on the use of any other factors that impede the
55-14 admittance of individuals and families described by Subsection (a)
55-15 to those properties, including credit histories, security deposits,
55-16 and employment histories.
55-17 (c) The department by rule shall establish procedures to
55-18 monitor low income housing tax credit properties that refuse to
55-19 admit individuals and families described by Subsection (a). The
55-20 department by rule shall establish enforcement mechanisms with
55-21 respect to those properties, including a range of sanctions to be
55-22 imposed against the owners of those properties.
55-23 Sec. 2306.6761. QUALIFIED NONPROFIT ORGANIZATION. (a) A
55-24 qualified nonprofit organization may compete in any low income
55-25 housing tax credit allocation pool, including:
55-26 (1) the nonprofit allocation pool;
56-1 (2) the rural projects/prison communities allocation
56-2 pool; and
56-3 (3) the general projects allocation pool.
56-4 (b) A qualified nonprofit organization submitting an
56-5 application under this subchapter must have a controlling interest
56-6 in a project proposed to be financed with a low income housing tax
56-7 credit from the nonprofit allocation pool.
56-8 SECTION 1.28. (a) Subchapter DD, Chapter 2306, Government
56-9 Code, is amended by adding Section 2306.6771 to read as follows:
56-10 Sec. 2306.6771. ACCESSIBILITY REQUIRED. A project to which
56-11 a low income housing tax credit is allocated under this subchapter
56-12 shall comply with the accessibility standards that are required
56-13 under Section 504, Rehabilitation Act of 1973 (29 U.S.C. Section
56-14 794), as amended, and specified under 24 C.F.R. Part 8, Subpart C.
56-15 (b) Section 2306.6771, Government Code, as added by this
56-16 Act, applies only to a project for which an application for a low
56-17 income housing tax credit is submitted on or after the effective
56-18 date of this Act.
56-19 SECTION 1.29. Subtitle F, Title 4, Government Code, is
56-20 amended by adding Chapter 487 to read as follows:
56-21 CHAPTER 487. OFFICE OF RURAL COMMUNITY AFFAIRS
56-22 SUBCHAPTER A. GENERAL PROVISIONS
56-23 Sec. 487.001. DEFINITIONS. In this chapter:
56-24 (1) "Executive committee" means the executive
56-25 committee of the Office of Rural Community Affairs.
56-26 (2) "Office" means the Office of Rural Community
57-1 Affairs.
57-2 (Sections 487.002-487.020 reserved for expansion)
57-3 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
57-4 Sec. 487.021. EXECUTIVE COMMITTEE. (a) The executive
57-5 committee is the governing body of the office.
57-6 (b) The executive committee is composed of the following
57-7 nine members:
57-8 (1) three members appointed by the governor;
57-9 (2) three members appointed by the lieutenant
57-10 governor; and
57-11 (3) three members appointed by the governor based on a
57-12 list of eligible candidates submitted to the governor by the
57-13 speaker of the house of representatives.
57-14 (c) At least two persons appointed by the governor, by the
57-15 lieutenant governor, and by the governor based on the list
57-16 submitted by the speaker of the house of representatives must
57-17 possess a strong understanding of and commitment to rural interests
57-18 based on the individual's personal history, including residency,
57-19 occupation, and civic activities including county and municipal
57-20 government.
57-21 (d) Appointments to the executive committee shall be made
57-22 without regard to the race, color, disability, sex, religion, age,
57-23 or national origin of the appointees.
57-24 (e) The members of the executive committee serve for
57-25 staggered six-year terms, with the terms of three members expiring
57-26 February 1 of each odd-numbered year.
58-1 (f) Executive committee members receive no compensation but
58-2 are entitled to reimbursement of actual and necessary expenses
58-3 incurred in the performance of their duties.
58-4 (g) The members of the executive committee annually shall
58-5 elect a presiding officer from among the members of the executive
58-6 committee.
58-7 Sec. 487.022. CONFLICTS OF INTEREST. (a) In this section,
58-8 "Texas trade association" means a cooperative and voluntarily
58-9 joined association of business or professional competitors in this
58-10 state designed to assist its members and its industry or profession
58-11 in dealing with mutual business or professional problems and in
58-12 promoting their common interest.
58-13 (b) A person may not be a member of the executive committee
58-14 and may not be an office employee employed in a "bona fide
58-15 executive, administrative, or professional capacity," as that
58-16 phrase is used for purposes of establishing an exemption to the
58-17 overtime provisions of the federal Fair Labor Standards Act of 1938
58-18 (29 U.S.C. Section 201 et seq.), and its subsequent amendments, if:
58-19 (1) the person is an officer, employee, or paid
58-20 consultant of a Texas trade association in the field of rural
58-21 affairs; or
58-22 (2) the person's spouse is an officer, manager, or
58-23 paid consultant of a Texas trade association in the field of rural
58-24 affairs.
58-25 (c) A person may not be a member of the executive committee
58-26 or act as the general counsel to the executive committee or the
59-1 office if the person is required to register as a lobbyist under
59-2 Chapter 305 because of the person's activities for compensation on
59-3 behalf of a profession related to the operation of the office.
59-4 Sec. 487.023. TRAINING FOR MEMBERS OF EXECUTIVE COMMITTEE.
59-5 (a) A person who is appointed to and qualifies for office as a
59-6 member of the executive committee may not vote, deliberate, or be
59-7 counted as a member in attendance at a meeting of the executive
59-8 committee until the person completes a training program that
59-9 complies with this section.
59-10 (b) The training program must provide the person with
59-11 information regarding:
59-12 (1) the legislation that created the office and the
59-13 executive committee;
59-14 (2) the programs operated by the office;
59-15 (3) the role and functions of the office;
59-16 (4) the rules of the office, with an emphasis on any
59-17 rules that relate to disciplinary and investigatory authority;
59-18 (5) the current budget for the office;
59-19 (6) the results of the most recent formal audit of the
59-20 office;
59-21 (7) the requirements of:
59-22 (A) the open meetings law, Chapter 551;
59-23 (B) the public information law, Chapter 552;
59-24 (C) the administrative procedure law, Chapter
59-25 2001; and
59-26 (D) other laws relating to public officials,
60-1 including conflict-of-interest laws; and
60-2 (8) any applicable ethics policies adopted by the
60-3 executive committee or the Texas Ethics Commission.
60-4 (c) A person appointed to the executive committee is
60-5 entitled to reimbursement, as provided by general law and the
60-6 General Appropriations Act, for the travel expenses incurred in
60-7 attending the training program regardless of whether the attendance
60-8 at the program occurs before or after the person qualifies for
60-9 office.
60-10 Sec. 487.024. REMOVAL. (a) It is a ground for removal from
60-11 the executive committee that a member:
60-12 (1) does not have at the time of taking office the
60-13 qualifications required by Section 487.021;
60-14 (2) does not maintain during service on the executive
60-15 committee the qualifications required by Section 487.021;
60-16 (3) is ineligible for membership under Section
60-17 487.022;
60-18 (4) cannot, because of illness or disability,
60-19 discharge the member's duties for a substantial part of the
60-20 member's term; or
60-21 (5) is absent from more than half of the regularly
60-22 scheduled executive committee meetings that the member is eligible
60-23 to attend during a calendar year without an excuse approved by a
60-24 majority vote of the executive committee.
60-25 (b) The validity of an action of the executive committee is
60-26 not affected by the fact that it is taken when a ground for removal
61-1 of an executive committee member exists.
61-2 (c) If the executive director has knowledge that a potential
61-3 ground for removal exists, the executive director shall notify the
61-4 presiding officer of the executive committee of the potential
61-5 ground. The presiding officer shall then notify the governor and
61-6 the attorney general that a potential ground for removal exists.
61-7 If the potential ground for removal involves the presiding officer,
61-8 the executive director shall notify the next highest ranking
61-9 officer of the executive committee, who shall then notify the
61-10 governor and the attorney general that a potential ground for
61-11 removal exists.
61-12 Sec. 487.025. DIVISION OF RESPONSIBILITY. The executive
61-13 committee shall develop and implement policies that clearly
61-14 separate the policy-making responsibilities of the executive
61-15 committee and the management responsibilities of the executive
61-16 director and staff of the office.
61-17 Sec. 487.026. EXECUTIVE DIRECTOR. (a) The executive
61-18 committee may hire an executive director to serve as the chief
61-19 executive officer of the office and to perform the administrative
61-20 duties of the office.
61-21 (b) The executive director serves at the will of the
61-22 executive committee.
61-23 (c) The executive director may hire staff within guidelines
61-24 established by the executive committee.
61-25 Sec. 487.027. PUBLIC HEARINGS. The executive committee
61-26 shall develop and implement policies that provide the public with a
62-1 reasonable opportunity to appear before the executive committee and
62-2 to speak on any issue under the jurisdiction of the office.
62-3 Sec. 487.028. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT.
62-4 (a) The executive director or the executive director's designee
62-5 shall prepare and maintain a written policy statement that
62-6 implements a program of equal employment opportunity to ensure that
62-7 all personnel decisions are made without regard to race, color,
62-8 disability, sex, religion, age, or national origin.
62-9 (b) The policy statement must include:
62-10 (1) personnel policies, including policies relating to
62-11 recruitment, evaluation, selection, training, and promotion of
62-12 personnel, that show the intent of the office to avoid the unlawful
62-13 employment practices described by Chapter 21, Labor Code; and
62-14 (2) an analysis of the extent to which the composition
62-15 of the office's personnel is in accordance with state and federal
62-16 law and a description of reasonable methods to achieve compliance
62-17 with state and federal law.
62-18 (c) The policy statement must be:
62-19 (1) updated annually;
62-20 (2) reviewed by the state Commission on Human Rights
62-21 for compliance with Subsection (b)(1); and
62-22 (3) filed with the governor's office.
62-23 Sec. 487.029. STANDARDS OF CONDUCT. The executive director
62-24 or the executive director's designee shall provide to members of
62-25 the executive committee and to agency employees, as often as
62-26 necessary, information regarding the requirements for office or
63-1 employment under this chapter, including information regarding a
63-2 person's responsibilities under applicable laws relating to
63-3 standards of conduct for state officers or employees.
63-4 Sec. 487.030. COMPLAINTS. (a) The office shall maintain a
63-5 file on each written complaint filed with the office. The file
63-6 must include:
63-7 (1) the name of the person who filed the complaint;
63-8 (2) the date the complaint is received by the office;
63-9 (3) the subject matter of the complaint;
63-10 (4) the name of each person contacted in relation to
63-11 the complaint;
63-12 (5) a summary of the results of the review or
63-13 investigation of the complaint; and
63-14 (6) an explanation of the reason the file was closed,
63-15 if the office closed the file without taking action other than to
63-16 investigate the complaint.
63-17 (b) The office shall provide to the person filing the
63-18 complaint and to each person who is a subject of the complaint a
63-19 copy of the office's policies and procedures relating to complaint
63-20 investigation and resolution.
63-21 (c) The office, at least quarterly until final disposition
63-22 of the complaint, shall notify the person filing the complaint and
63-23 each person who is a subject of the complaint of the status of the
63-24 investigation unless the notice would jeopardize an undercover
63-25 investigation.
63-26 (Sections 487.031-487.050 reserved for expansion)
64-1 SUBCHAPTER C. GENERAL POWERS AND DUTIES
64-2 Sec. 487.051. POWERS AND DUTIES. (a) The office shall:
64-3 (1) administer the federal community development block
64-4 grant nonentitlement program; and
64-5 (2) promote the economic development and the general
64-6 welfare of rural communities in this state.
64-7 (b) The office may contract with public and private entities
64-8 in the performance of its responsibilities.
64-9 Sec. 487.052. RULES. The executive committee may adopt
64-10 rules as necessary to implement this chapter.
64-11 Sec. 487.053. GIFTS AND GRANTS. (a) The office may accept
64-12 gifts, grants, and donations from any organization for the purpose
64-13 of funding any activity under this chapter.
64-14 (b) All gifts, grants, and donations must be accepted in an
64-15 open meeting by a majority of the voting members of the executive
64-16 committee and reported in the public record of the meeting with the
64-17 name of the donor and purpose of the gift, grant, or donation.
64-18 Sec. 487.054. REPORT TO LEGISLATURE. Not later than January
64-19 1 of each odd-numbered year, the office shall submit a biennial
64-20 report to the legislature regarding the activities of the office
64-21 and any findings and recommendations relating to rural issues.
64-22 SECTION 1.30. Sections 2306.098, 2306.099, and 2306.100,
64-23 Government Code, are transferred to Chapter 487, Government Code,
64-24 redesignated as Subchapter D, Chapter 487, Government Code, and
64-25 amended to read as follows:
65-1 SUBCHAPTER D. COMMUNITY DEVELOPMENT BLOCK
65-2 GRANT NONENTITLEMENT PROGRAM
65-3 Sec. 487.101 [2306.098]. ADMINISTRATION OF COMMUNITY
65-4 DEVELOPMENT BLOCK GRANT PROGRAM; ALLOCATION OF FUNDS. (a) The
65-5 office [department] shall, under the Omnibus Budget Reconciliation
65-6 Act of 1981 (Pub.L. No. 97-35) and 24 CFR, Part 570, Subpart I,
65-7 administer the state's allocation of federal funds provided under
65-8 the community development block grant nonentitlement program
65-9 authorized by Title I of the Housing and Community Development Act
65-10 of 1974 (42 U.S.C. Section 5301 et seq.).
65-11 (b) Community development block grant program funds shall be
65-12 allocated to eligible counties and municipalities under office
65-13 [department] rules.
65-14 Sec. 487.102 [2306.099]. TRANSFER OF FEDERAL FUNDS: TEXAS
65-15 DEPARTMENT OF ECONOMIC DEVELOPMENT. (a) The office [department]
65-16 may enter into an interagency agreement with the Texas Department
65-17 of Economic Development [Commerce] to reimburse the Texas
65-18 Department of Economic Development [Commerce] for providing on
65-19 behalf of the office [department] marketing, underwriting, and any
65-20 other services on the portion of the federal community development
65-21 block grant funds allocated by the office [department] for economic
65-22 development activities.
65-23 (b) The office [department] shall allocate not more than 20
65-24 percent of the federal funds received by the department to the
65-25 Texas Department of Economic Development [Commerce] to be used for
65-26 economic development activities.
66-1 (c) The office shall monitor the activities undertaken by
66-2 the Texas Department of Economic Development [Commerce] under this
66-3 section [must be monitored by the department].
66-4 Sec. 487.1021. TRANSFER OF FEDERAL FUNDS: TEXAS DEPARTMENT
66-5 OF HOUSING AND COMMUNITY AFFAIRS. The office shall enter into an
66-6 interagency agreement with the Texas Department of Housing and
66-7 Community Affairs to reimburse the Texas Department of Housing and
66-8 Community Affairs for providing on behalf of the office oversight,
66-9 management, and any other services on the portion of the federal
66-10 community development block grant funds allocated for colonia
66-11 self-help centers.
66-12 Sec. 487.103 [2306.100]. STATE COMMUNITY DEVELOPMENT REVIEW
66-13 COMMITTEE. (a) The state community development review committee
66-14 is composed of 12 members appointed by the governor.
66-15 (b) A committee member must be:
66-16 (1) a member of the governing body of a county or
66-17 municipality eligible for funding under the community development
66-18 block grant program; or
66-19 (2) a county or municipal employee who is a supervisor
66-20 and whose regular duties include involvement in community
66-21 development activities.
66-22 (c) The ratio of county officials serving as committee
66-23 members to all committee members may not exceed the ratio of all
66-24 counties eligible for funding under the community development block
66-25 grant program to all eligible applicants.
66-26 (d) The governor shall designate the presiding officer of
67-1 the committee, who serves at the governor's pleasure.
67-2 (e) Committee members serve two-year terms expiring February
67-3 1 of each odd-numbered year.
67-4 (f) A committee member serves without compensation for
67-5 service on the committee, but is entitled to reimbursement for
67-6 reasonable and necessary expenses incurred in performing the
67-7 member's duties.
67-8 (g) Service on the committee by an officer or employee of a
67-9 county or municipality is an additional duty of the individual's
67-10 office or employment and is not dual office holding.
67-11 (h) The committee shall meet at least twice annually at the
67-12 executive director's call.
67-13 (i) The committee shall:
67-14 (1) consult with and advise the executive director on
67-15 the administration and enforcement of the community development
67-16 block grant program; and
67-17 (2) review funding applications of eligible counties
67-18 and municipalities and advise and assist the executive director
67-19 regarding the allocation of program funds to those applicants.
67-20 (j) The committee may annually recommend to the executive
67-21 director a formula for allocating funds to each geographic state
67-22 planning region established by the governor under Chapter 391,
67-23 Local Government Code. The formula must give preference to regions
67-24 according to the regions' needs.
67-25 SECTION 1.31. Section 531.0312, Government Code, is amended
67-26 by adding Subsection (d) to read as follows:
68-1 (d) The Texas Department of Housing and Community Affairs
68-2 shall provide the Texas Information and Referral Network with
68-3 information regarding the department's housing and community
68-4 affairs programs for inclusion in the statewide information and
68-5 referral network. The department shall provide the information in
68-6 a form determined by the commissioner and shall update the
68-7 information at least quarterly.
68-8 SECTION 1.32. Section 1372.023, Government Code, is amended
68-9 to read as follows:
68-10 Sec. 1372.023. DEDICATION OF PORTIONS [PORTION] OF STATE
68-11 CEILING TO TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS.
68-12 (a) Until August 15 [25], of that portion of the state ceiling
68-13 that is available exclusively for reservations by issuers of
68-14 qualified mortgage bonds, one-third is available exclusively to the
68-15 Texas Department of Housing and Community Affairs for the purpose
68-16 of issuing qualified mortgage bonds.
68-17 (b) Until August 15, of that portion of the state ceiling
68-18 that is available exclusively for reservations by issuers of
68-19 qualified residential rental project bonds, one-fourth is available
68-20 exclusively to the Texas Department of Housing and Community
68-21 Affairs in the manner described by Section 1372.0231.
68-22 (c) The Texas Department of Housing and Community Affairs
68-23 may not reserve a portion of the state ceiling that is available
68-24 exclusively for reservations by issuers of qualified residential
68-25 rental project bonds other than the portion dedicated to the
68-26 department under Subsection (b).
69-1 SECTION 1.33. Subsection (b), Section 1372.025, Government
69-2 Code, is amended to read as follows:
69-3 (b) Subsection (a) does not apply to qualified mortgage
69-4 bonds or qualified residential rental project bonds made available
69-5 exclusively to the Texas Department of Housing and Community
69-6 Affairs under Section 1372.023.
69-7 SECTION 1.34. Subdivisions (3), (7), and (8), Section 3,
69-8 Texas Manufactured Housing Standards Act (Article 5221f, Vernon's
69-9 Texas Civil Statutes), are amended to read as follows:
69-10 (3) "Board" means the Manufactured Housing Board
69-11 within the Texas Department of Housing and Community Affairs
69-12 [governing board of the department].
69-13 (7) "Department" means the Texas Department of Housing
69-14 and Community Affairs operating through its manufactured housing
69-15 division.
69-16 (8) "Director" means the executive director of the
69-17 manufactured housing division of the Texas Department of Housing
69-18 and Community Affairs [department].
69-19 SECTION 1.35. Section 7, Texas Manufactured Housing
69-20 Standards Act (Article 5221f, Vernon's Texas Civil Statutes), is
69-21 amended by amending Subsections (g) and (k) and adding Subsections
69-22 (t) through (aa) to read as follows:
69-23 (g) All licenses are valid for one year and are renewable as
69-24 provided by the director. The board by rule may adopt a system
69-25 under which licenses expire on various dates during the year. For
69-26 the year in which the license expiration date is changed, the
70-1 department shall prorate license fees on a monthly basis so that
70-2 each license holder pays only that portion of the license fee that
70-3 is allocable to the number of months during which the license is
70-4 valid. On renewal of the license on the new expiration date, the
70-5 total license renewal fee is payable.
70-6 (k) The director shall conduct any hearing involving the
70-7 denial, renewal, revocation or suspension of a license in
70-8 accordance with Chapter 2001, Government Code. The department may
70-9 place on probation a person whose license is suspended. If a
70-10 license suspension is probated, the department may require the
70-11 person:
70-12 (1) to report regularly to the department on matters
70-13 that are the basis of the probation;
70-14 (2) to limit practice to the areas prescribed by the
70-15 department; or
70-16 (3) to continue or review professional education until
70-17 the person attains a degree of skill satisfactory to the department
70-18 in those areas that are the basis of the probation.
70-19 (t) A person whose license has expired may not engage in
70-20 activities that require a license until the license has been
70-21 renewed.
70-22 (u) A person whose license has been expired for 90 days or
70-23 less may renew the license by paying to the department a renewal
70-24 fee that is equal to 1-1/2 times the normally required renewal fee.
70-25 (v) A person whose license has been expired for more than 90
70-26 days but less than one year may renew the license by paying to the
71-1 department a renewal fee that is equal to two times the normally
71-2 required renewal fee.
71-3 (w) A person whose license has been expired for one year or
71-4 more may not renew the license. The person may obtain a new
71-5 license by complying with the requirements and procedures for
71-6 obtaining an original license.
71-7 (x) A person who was licensed in this state, moved to
71-8 another state, and is currently licensed and has been in practice
71-9 in the other state for the two years preceding the date of
71-10 application may obtain a new license without fulfilling the
71-11 instruction requirements of Subsection (o). The person must pay to
71-12 the department a fee that is equal to two times the normally
71-13 required renewal fee for the license.
71-14 (y) Not later than the 30th day before the date a person's
71-15 license is scheduled to expire, the department shall send written
71-16 notice of the impending expiration to the person at the person's
71-17 last known address according to the records of the department.
71-18 (z) The board may waive any prerequisite to obtaining a
71-19 license for an applicant after reviewing the applicant's
71-20 credentials and determining that the applicant holds a license
71-21 issued by another jurisdiction that has licensing requirements
71-22 substantially equivalent to those of this state.
71-23 (aa) The board may waive any prerequisite to obtaining a
71-24 license for an applicant who holds a license issued by another
71-25 jurisdiction with which this state has a reciprocity agreement.
71-26 The board may make an agreement, subject to the approval of the
72-1 governor, with another state to allow for licensing by reciprocity.
72-2 SECTION 1.36. The Texas Manufactured Housing Standards Act
72-3 (Article 5221f, Vernon's Texas Civil Statutes) is amended by adding
72-4 a new Section 7A and redesignating the existing Section 7A as
72-5 Section 7B and amending that section to read as follows:
72-6 Sec. 7A. PROVISIONAL LICENSE. (a) The board may issue a
72-7 provisional license to an applicant currently licensed in another
72-8 jurisdiction who seeks a license in this state and who:
72-9 (1) has been licensed in good standing as a
72-10 manufacturer, retailer, broker, salesperson, rebuilder, or
72-11 installer of manufactured housing for at least two years in another
72-12 jurisdiction, including a foreign country, that has licensing
72-13 requirements substantially equivalent to the requirements of this
72-14 Act;
72-15 (2) has passed a national or other examination
72-16 recognized by the board relating to the manufactured housing
72-17 industry; and
72-18 (3) is sponsored by a person licensed by the board
72-19 under this Act with whom the provisional license holder will
72-20 practice during the time the person holds a provisional license.
72-21 (b) The board may waive the requirement of Subsection (a)(3)
72-22 for an applicant if the board determines that compliance with that
72-23 subsection would be a hardship to the applicant.
72-24 (c) A provisional license is valid until the date the board
72-25 approves or denies the provisional license holder's application for
72-26 a license.
73-1 (d) The board shall issue a license under this Act to the
73-2 provisional license holder if the provisional license holder is
73-3 eligible to be licensed under Section 7(z) or (aa) or if:
73-4 (1) the board verifies that the provisional license
73-5 holder meets the academic and experience requirements for a license
73-6 under this Act; and
73-7 (2) the provisional license holder satisfies any other
73-8 licensing requirements under this Act.
73-9 (e) The board must approve or deny a provisional license
73-10 holder's application for a license not later than the 180th day
73-11 after the date the provisional license is issued.
73-12 (f) The board may establish a fee for provisional licenses
73-13 in an amount reasonable and necessary to cover the cost of issuing
73-14 the licenses.
73-15 Sec. 7B [7A]. EDUCATION PROGRAMS. (a) The department
73-16 [director] may recognize, prepare, or administer certification
73-17 programs [and continuing education programs] for persons regulated
73-18 under this Act. Participation in the programs is voluntary.
73-19 (b) The board shall recognize, prepare, or administer
73-20 continuing education programs for its license holders. A license
73-21 holder must participate in the continuing education programs to the
73-22 extent required by the board to keep the person's license.
73-23 (c) The department [director] shall issue appropriate
73-24 certificates to those persons who complete a [the] certification
73-25 program or who participate in a [the] continuing education program
73-26 under this section.
74-1 SECTION 1.37. (a) The nine members of the governing board
74-2 of the Texas Department of Housing and Community Affairs who are
74-3 serving immediately before September 1, 2001, continue to serve as
74-4 the governing board of the department on and after that date
74-5 regardless of whether those members meet the membership
74-6 requirements prescribed by Subchapter B, Chapter 2306, Government
74-7 Code, as amended by this Act. However, the positions of those nine
74-8 members are abolished on the date on which a majority of the seven
74-9 board membership positions that are created under Subchapter B,
74-10 Chapter 2306, Government Code, as amended by this Act, are filled
74-11 by appointment by the governor and the appointees qualify for
74-12 office.
74-13 (b) The governor shall make the seven appointments to the
74-14 board under Subchapter B, Chapter 2306, Government Code, as amended
74-15 by this Act, as soon as possible on or after September 1, 2001. In
74-16 making the initial appointments, the governor shall designate two
74-17 members for terms expiring January 31, 2003, two members for terms
74-18 expiring January 31, 2005, and three members for terms expiring
74-19 January 31, 2007.
74-20 (c) The changes in law made by this Act in amending
74-21 Subchapter B, Chapter 2306, Government Code, do not affect the
74-22 ability of the director of the Texas Department of Housing and
74-23 Community Affairs who is serving on the effective date of this Act
74-24 to continue to serve in that capacity until the governing board of
74-25 the department appointed by the governor under Subchapter B,
74-26 Chapter 2306, Government Code, as amended by this Act, employs a
75-1 new director under Chapter 2306.
75-2 SECTION 1.38. (a) The governor shall make the appointments
75-3 to the Manufactured Housing Board created by Subchapter AA, Chapter
75-4 2306, Government Code, as amended by this Act, as soon as possible
75-5 on or after September 1, 2001. In making the initial appointments,
75-6 the governor shall designate one member for a term expiring January
75-7 31, 2003, two members for terms expiring January 31, 2005, and two
75-8 members for terms expiring January 31, 2007.
75-9 (b) Until the Manufactured Housing Board employs a division
75-10 director for the manufactured housing division of the Texas
75-11 Department of Housing and Community Affairs, the director of the
75-12 department may continue to carry out the functions of the division
75-13 director for that division.
75-14 SECTION 1.39. As soon as practicable after the effective
75-15 date of this Act, the new governing board of the Texas Department
75-16 of Housing and Community Affairs appointed by the governor under
75-17 Subchapter B, Chapter 2306, Government Code, as amended by this
75-18 Act, shall develop a strategic action plan to implement the
75-19 requirements of this Act. The board shall employ a director to
75-20 provide and monitor the provision of administrative support to the
75-21 board to assist in implementing the plan. The director shall
75-22 evaluate the organizational structure of the department, including
75-23 the evaluation of essential management positions, and shall make
75-24 any organizational changes necessary to implement the plan and the
75-25 other requirements of this Act.
75-26 SECTION 1.40. (a) Not later than December 31, 2002, the
76-1 Sunset Advisory Commission shall evaluate the success of the Texas
76-2 Department of Housing and Community Affairs in implementing the
76-3 requirements of this Act before that date, including actions taken
76-4 by the department with respect to the following:
76-5 (1) establishment of a functional governing board that
76-6 values public input and enables board members to develop the
76-7 expertise necessary to make informed decisions about and to ensure
76-8 the accountability of the department and the programs of the
76-9 department;
76-10 (2) establishment of an organizational structure to
76-11 develop and implement a statewide needs assessment and a
76-12 corresponding allocation process that:
76-13 (A) ensure that the state's objectives regarding
76-14 housing and community support services are fulfilled;
76-15 (B) ensure that the state's most critical needs
76-16 regarding housing and community support services are identified and
76-17 met;
76-18 (C) incorporate input from local entities;
76-19 (D) maximize the preservation of affordable
76-20 housing; and
76-21 (E) achieve the best use of state resources;
76-22 (3) development of policies and procedures that
76-23 clearly define the appropriate roles of board members, the
76-24 director, and department staff;
76-25 (4) implementation of rules outlining a formal process
76-26 to appeal board decisions; and
77-1 (5) establishment of project compliance procedures
77-2 that ensure that the programs of the department provide fair access
77-3 to housing and community support services in this state.
77-4 (b) Before January 1, 2003, the Sunset Advisory Commission
77-5 shall report the results of evaluation to the presiding officer of
77-6 each house of the legislature.
77-7 SECTION 1.41. (a) Not later than November 1, 2001, the
77-8 governor and the lieutenant governor shall appoint the initial
77-9 members of the executive committee of the Office of Rural Community
77-10 Affairs in accordance with Chapter 487, Government Code, as added
77-11 by this Act. The governor shall appoint two members and the
77-12 lieutenant governor shall appoint one member for terms expiring
77-13 February 1, 2003, the governor shall appoint two members and the
77-14 lieutenant governor shall appoint one member for terms expiring
77-15 February 1, 2005, and the governor shall appoint two members and
77-16 the lieutenant governor shall appoint one member for terms expiring
77-17 February 1, 2007. The executive committee may not take action
77-18 until a majority of the members have taken office.
77-19 (b) The Office of Rural Community Affairs shall employ an
77-20 executive director in accordance with Chapter 487, Government Code,
77-21 as added by this Act, not later than December 1, 2001.
77-22 SECTION 1.42. (a) On the date by which a majority of the
77-23 members of the executive committee of the Office of Rural Community
77-24 Affairs have taken office, all powers, duties, obligations, rights,
77-25 contracts, leases, records, personnel, property, and unspent and
77-26 unobligated appropriations and other funds of the Texas Department
78-1 of Housing and Community Affairs related to the federal community
78-2 development block grant nonentitlement program are transferred to
78-3 the Office of Rural Community Affairs, contingent upon the
78-4 development of a transition plan that ensures continued service
78-5 delivery at the local level.
78-6 (b) The transfer of the federal community development block
78-7 grant nonentitlement program to the Office of Rural Community
78-8 Affairs does not affect the validity of a right, privilege, or
78-9 obligation accrued, a contract or acquisition made, any liability
78-10 incurred, a permit or license issued, any penalty, forfeiture, or
78-11 punishment assessed, a rule adopted, a proceeding, investigation,
78-12 or remedy begun, a decision made, or other action taken by or in
78-13 connection with the program by the Texas Department of Housing and
78-14 Community Affairs.
78-15 (c) All rules, policies, procedures, and decisions of the
78-16 Texas Department of Housing and Community Affairs related to the
78-17 federal community development block grant nonentitlement program
78-18 are continued in effect as rules, policies, procedures, and
78-19 decisions of the Office of Rural Community Affairs until superseded
78-20 by a rule or other appropriate action of the Office of Rural
78-21 Community Affairs.
78-22 (d) Any action or proceeding before the Texas Department of
78-23 Housing and Community Affairs related to the federal community
78-24 development block grant nonentitlement program is transferred
78-25 without change in status to the Office of Rural Community Affairs,
78-26 and the Office of Rural Community Affairs assumes, without a change
79-1 in status, the position of the Texas Department of Housing and
79-2 Community Affairs in any action or proceeding related to the
79-3 program to which the Texas Department of Housing and Community
79-4 Affairs is a party.
79-5 (e) A fund or account administered by the Texas Department
79-6 of Economic Development relating to the federal community
79-7 development block grant nonentitlement program is not considered to
79-8 be abolished and re-created by this Act but is considered to be
79-9 transferred to the Office of Rural Community Affairs.
79-10 (f) Notwithstanding the changes in law made by this Act,
79-11 until the date the federal community development block grant
79-12 nonentitlement program is transferred to the Office of Rural
79-13 Community Affairs as provided by this Act, the Texas Department of
79-14 Housing and Community Affairs and the Texas Department of Economic
79-15 Development shall continue to exercise the powers and duties
79-16 assigned to the Texas Department of Housing and Community Affairs
79-17 and the Texas Department of Economic Development, respectively,
79-18 under the law as it existed immediately before the effective date
79-19 of this Act or as modified by another Act of the 77th Legislature,
79-20 Regular Session, 2001, that becomes law, and the former law is
79-21 continued in effect for that purpose.
79-22 SECTION 1.43. Sections 2306.023 and 2306.026, Subsection
79-23 (d), Section 2306.052, and Section 2306.092, Government Code, are
79-24 repealed.
79-25 SECTION 1.44. A member of the governing board of the Texas
79-26 Department of Housing and Community Affairs, of the Manufactured
80-1 Housing Board, or of the executive committee of the Office of Rural
80-2 Community Affairs is not subject to the prohibition imposed by
80-3 Section 2306.028, 2306.6011, or 487.023, Government Code, as
80-4 applicable, until September 1, 2002.
80-5 ARTICLE 2
80-6 SECTION 2.01. Section 2306.004, Government Code, is amended
80-7 by adding Subdivisions (31) through (34) to read as follows:
80-8 (31) "Economic submarket" means a group of borrowers
80-9 who have common home mortgage loan market eligibility
80-10 characteristics, including income level, credit history or credit
80-11 score, and employment characteristics, that are similar to Standard
80-12 and Poor's credit underwriting criteria.
80-13 (32) "Geographic submarket" means a geographic region
80-14 in the state, including a county, census tract, or municipality,
80-15 that shares similar levels of access to home mortgage credit from
80-16 the private home mortgage lending industry, as determined by the
80-17 department based on home mortgage lending data published by federal
80-18 and state banking regulatory agencies.
80-19 (33) "Rural county" means a county that is outside the
80-20 boundaries of a primary metropolitan statistical area or a
80-21 metropolitan statistical area.
80-22 (34) "Subprime loan" means a loan that is originated
80-23 by a lender designated as a subprime lender on the subprime lender
80-24 list maintained by the United States Department of Housing and
80-25 Urban Development or identified as a lender primarily engaged in
80-26 subprime lending under Section 2306.143.
81-1 SECTION 2.02. Section 2306.142, Government Code, is amended
81-2 to read as follows:
81-3 Sec. 2306.142. AUTHORIZATION OF BONDS. (a) Subject to the
81-4 requirements of this section [In its discretion], the board shall
81-5 authorize all bonds issued by the department.
81-6 (b) If the issuance is authorized by the board, the
81-7 department shall issue single-family mortgage revenue bonds to make
81-8 home mortgage credit available to economic and geographic
81-9 submarkets of borrowers who are not served or who are substantially
81-10 underserved by the conventional, Federal National Mortgage
81-11 Association, Federal Home Loan Mortgage Corporation, or Federal
81-12 Housing Administration home mortgage lending industry or by housing
81-13 finance corporations organized under Chapter 394, Local Government
81-14 Code.
81-15 (c) The board by rule shall adopt a methodology for
81-16 determining through a market study the home mortgage credit needs
81-17 in underserved economic and geographic submarkets in the state. In
81-18 conducting the market study required by this subsection, the
81-19 department or its designee shall analyze for the underserved
81-20 economic and geographic submarkets, at a minimum, the following
81-21 factors:
81-22 (1) home ownership rates;
81-23 (2) loan volume;
81-24 (3) loan approval ratios;
81-25 (4) loan interest rates;
81-26 (5) loan terms;
82-1 (6) loan availability;
82-2 (7) type and number of dwelling units; and
82-3 (8) use of subprime mortgage loan products, comparing
82-4 the volume amount of subprime loans and interest rates to "A" paper
82-5 mortgage loans as defined by Standard and Poor's credit
82-6 underwriting criteria.
82-7 (d) The department or its designee shall analyze the
82-8 potential market demand, loan availability, and private sector home
82-9 mortgage lending rates available to extremely low, very low, low,
82-10 and moderate income borrowers in the rural counties of the state,
82-11 in census tracts in which the median family income is less than 80
82-12 percent of the median family income for the county in which the
82-13 census tract is located, and in the region of the state adjacent to
82-14 the international border of the state. The department or its
82-15 designee shall establish a process for serving those counties,
82-16 census tracts, and regions through the single-family mortgage
82-17 revenue bond program in a manner proportionate to the credit needs
82-18 of those areas as determined through the department's market study.
82-19 (e) Using the market study and the analysis required by this
82-20 section, the board shall evaluate the feasibility of a
82-21 single-family mortgage revenue bond program with loan marketing,
82-22 eligibility, underwriting, structuring, collection, and foreclosure
82-23 criteria and with loan services practices that are designed to meet
82-24 the credit needs of the underserved economic and geographic
82-25 submarkets of the state, including those submarkets served
82-26 disproportionately by subprime lenders.
83-1 (f) In evaluating a proposed bond program under this
83-2 section, the board shall consider, consistent with the reasonable
83-3 financial operation of the department, specific set-asides or
83-4 reservations of mortgage loans for underserved economic and
83-5 geographic submarkets in the state, including the reservation of
83-6 funds to serve borrowers who have "A-" to "B-" credit according to
83-7 Standard and Poor's credit underwriting criteria.
83-8 (g) The department may use any source of funds or subsidy
83-9 available to the department to provide credit enhancement, down
83-10 payment assistance, pre-homebuyer and post-homebuyer counseling,
83-11 interest rate reduction, and payment of incentive lender points to
83-12 accomplish the purposes of this section in a manner considered by
83-13 the board to be consistent with the reasonable financial operation
83-14 of the department.
83-15 (h) In allocating funds under Subsection (g), the
83-16 department's highest priority is to provide assistance to borrowers
83-17 in underserved economic and geographic submarkets in the state. If
83-18 the board determines that sufficient funds are available after
83-19 fully meeting the credit needs of borrowers in those submarkets,
83-20 the department may provide assistance to other borrowers.
83-21 (i) The board shall certify that each single-family mortgage
83-22 revenue bond issued by the department under this section is
83-23 structured in a manner that serves the credit needs of borrowers in
83-24 underserved economic and geographic submarkets in the state.
83-25 (j) After any board approval and certification of a
83-26 single-family mortgage revenue bond issuance, the department shall
84-1 submit the proposed bond issuance to the Bond Review Board for
84-2 review.
84-3 (k) In the state fiscal year beginning on September 1, 2001,
84-4 the department shall:
84-5 (1) adopt by rule a market study methodology as
84-6 required by Subsection (c);
84-7 (2) conduct the market study;
84-8 (3) propose for board review a single-family mortgage
84-9 revenue bond program, including loan feature details, a program for
84-10 borrower subsidies as provided by Subsections (g) and (h), and
84-11 origination and servicing infrastructure;
84-12 (4) identify reasonable capital markets financing;
84-13 (5) conduct a public hearing on the market study
84-14 results and the proposed bond program; and
84-15 (6) submit for review by the Bond Review Board the
84-16 market study results and, if approved and certified by the board,
84-17 the proposed bond program.
84-18 (l) In the state fiscal year beginning on September 1, 2002,
84-19 and in each subsequent state fiscal year, the department shall
84-20 allocate not less than 40 percent of the total single-family
84-21 mortgage revenue bond loan volume to meet the credit needs of
84-22 borrowers in underserved economic and geographic submarkets in the
84-23 state, subject to the identification of a satisfactory market
84-24 volume demand through the market study.
84-25 (m) On completion of the market study, if the board
84-26 determines in any year that bonds intended to be issued to achieve
85-1 the purposes of this section are unfeasible or would damage the
85-2 financial condition of the department, the board may formally
85-3 appeal to the Bond Review Board the requirements of Subsection (k)
85-4 or (l), as applicable. The Bond Review Board has sole authority to
85-5 modify or waive the required allocation levels.
85-6 (n) In addition to any other loan originators selected by
85-7 the department, the department shall authorize colonia self-help
85-8 centers and any other community-based, nonprofit institutions
85-9 considered appropriate by the board to originate loans on behalf of
85-10 the department. All nonfinancial institutions acting as loan
85-11 originators under this subsection must undergo adequate training,
85-12 as prescribed by the department, to participate in the bond
85-13 program. The department may require lenders to participate in
85-14 ongoing training and underwriting compliance audits to maintain
85-15 good standing to participate in the bond program. The department
85-16 may require that lenders meet appropriate eligibility standards as
85-17 prescribed by the department.
85-18 (o) The department shall structure all single-family
85-19 mortgage revenue bond issuances in a manner designed to recover the
85-20 full costs associated with conducting the activities required by
85-21 this section.
85-22 SECTION 2.03. Subchapter G, Chapter 2306, Government Code,
85-23 is amended by adding Section 2306.143 to read as follows:
85-24 Sec. 2306.143. ALTERNATIVE TO SUBPRIME LENDER LIST. (a) If
85-25 the United States Department of Housing and Urban Development
85-26 ceases to prepare or make public a subprime lender list, the market
86-1 study required by Section 2306.142 must annually survey the 100
86-2 largest refinancing lenders and the 100 largest home purchase loan
86-3 lenders in the state to identify lenders primarily engaged in
86-4 subprime lending.
86-5 (b) The lenders included in the survey must be identified on
86-6 the basis of home mortgage loan data reported by lenders under the
86-7 Home Mortgage Disclosure Act of 1975 (12 U.S.C. Section 2801 et
86-8 seq.) and the Community Reinvestment Act of 1977 (12 U.S.C. Section
86-9 2901 et seq.).
86-10 ARTICLE 3
86-11 SECTION 3.01. Subchapter A, Chapter 2306, Government Code,
86-12 is amended by adding Section 2306.008 to read as follows:
86-13 Sec. 2306.008. PRESERVATION OF AFFORDABLE HOUSING. (a) The
86-14 department shall support in the manner described by Subsection (b)
86-15 the preservation of affordable housing for individuals with special
86-16 needs, as defined by Section 2306.511, and individuals and families
86-17 of low income at any location considered necessary by the
86-18 department.
86-19 (b) The department shall support the preservation of
86-20 affordable housing under this section by:
86-21 (1) making low-interest financing and grants available
86-22 to private for-profit and nonprofit buyers who seek to acquire,
86-23 preserve, and rehabilitate affordable housing; and
86-24 (2) prioritizing available funding and financing
86-25 resources for affordable housing preservation activities.
86-26 SECTION 3.02. Subchapter H, Chapter 2306, Government Code,
87-1 is amended by adding Section 2306.185 to read as follows:
87-2 Sec. 2306.185. LONG-TERM AFFORDABILITY AND SAFETY OF
87-3 MULTIFAMILY RENTAL HOUSING DEVELOPMENTS. (a) The department shall
87-4 adopt policies and procedures to ensure that, for a multifamily
87-5 rental housing development funded through loans, grants, or tax
87-6 credits under this chapter, the owner of the development:
87-7 (1) keeps the rents affordable for low-income tenants
87-8 for the longest period that is economically feasible; and
87-9 (2) provides regular maintenance to keep the
87-10 development sanitary, decent, and safe.
87-11 (b) In implementing Subsection (a)(1) and in developing
87-12 underwriting standards and application scoring criteria for the
87-13 award of loans, grants, or tax credits to multifamily developments,
87-14 the department shall ensure that the economic benefits of longer
87-15 affordability terms and below market rate rents are accurately
87-16 assessed and considered.
87-17 (c) The department shall require that a recipient of funding
87-18 maintains the affordability of the multifamily housing development
87-19 for households of extremely low, very low, low, and moderate
87-20 incomes for the greater of a 30-year period from the date the
87-21 recipient takes legal possession of the housing or the remaining
87-22 term of the existing federal government assistance. In addition,
87-23 the agreement between the department and the recipient shall
87-24 require the renewal of rental subsidies if available and if the
87-25 subsidies are sufficient to maintain the economic viability of the
87-26 multifamily development.
88-1 (d) The development restrictions provided by Subsection (a)
88-2 and Section 2306.269 are enforceable by the department, by tenants
88-3 of the development, or by private parties against the initial owner
88-4 or any subsequent owner. The department shall require a land use
88-5 restriction agreement providing for enforcement of the restrictions
88-6 by the department, a tenant, or a private party that includes the
88-7 right to recover reasonable attorney's fees if the party seeking
88-8 enforcement of the restriction is successful.
88-9 (e) Subsections (c) and (d) and Section 2306.269 apply only
88-10 to multifamily rental housing developments to which the department
88-11 is providing one or more of the following forms of assistance:
88-12 (1) a loan or grant in an amount greater than 33
88-13 percent of the market value of the development on the date the
88-14 recipient took legal possession of the development;
88-15 (2) a loan guarantee for a loan in an amount greater
88-16 than 33 percent of the market value of the development on the date
88-17 the recipient took legal title to the development; or
88-18 (3) a low income housing tax credit.
88-19 (f) An owner of the housing development who intends to sell,
88-20 lease, prepay the loan insured by the United States Department of
88-21 Housing and Urban Development, opt out of a housing assistance
88-22 payments contract under Section 8, United States Housing Act of
88-23 1937 (42 U.S.C. Section 1437f), or otherwise dispose of the
88-24 development shall agree to provide notice to the department at
88-25 least 12 months before the date of any attempt to dispose of the
88-26 development, prepay the loan, or opt out of the Section 8 contract
89-1 to enable the department to attempt to locate a buyer who will
89-2 conform to the development restrictions provided by this section.
89-3 (g) This section does not apply to a multifamily rental
89-4 housing development supported by qualified 501(c)(3) bonds.
89-5 SECTION 3.03. Subchapter K, Chapter 2306, Government Code,
89-6 is amended by adding Section 2306.2561 to read as follows:
89-7 Sec. 2306.2561. AFFORDABLE HOUSING PRESERVATION PROGRAM:
89-8 LOANS AND GRANTS. (a) The department, through the housing finance
89-9 division, shall provide loans and grants to political subdivisions,
89-10 housing finance corporations, public housing authorities,
89-11 for-profit organizations, nonprofit organizations, and
89-12 income-eligible individuals, families, and households for purposes
89-13 of rehabilitating housing to preserve affordability of the housing.
89-14 (b) The department may use any available revenue, including
89-15 legislative appropriations, to provide loans and grants under this
89-16 section.
89-17 SECTION 3.04. Section 2306.269, Government Code, is amended
89-18 to read as follows:
89-19 Sec. 2306.269. TENANT AND MANAGER SELECTION. (a) The
89-20 department shall set standards for tenant and management selection
89-21 by a housing sponsor.
89-22 (b) The department shall prohibit multifamily rental housing
89-23 developments funded or administered by the department from:
89-24 (1) excluding an individual or family from admission
89-25 to the development because the individual or family participates in
89-26 the housing choice voucher program under Section 8, United States
90-1 Housing Act of 1937 (42 U.S.C. Section 1437f); and
90-2 (2) using a financial or minimum income standard for
90-3 an individual or family participating in the voucher program
90-4 described by Subdivision (1) that requires the individual or family
90-5 to have a monthly income of more than 2-1/2 times the individual's
90-6 or family's share of the total monthly rent payable to the owner of
90-7 the development unit.
90-8 SECTION 3.05. Chapter 2306, Government Code, is amended by
90-9 adding Subchapter HH to read as follows:
90-10 SUBCHAPTER HH. AFFORDABLE HOUSING PRESERVATION
90-11 Sec. 2306.801. DEFINITION. In this subchapter, "federally
90-12 subsidized" means receiving financial assistance through a federal
90-13 program administered by the secretary of housing and urban
90-14 development or the secretary of agriculture under which housing
90-15 assistance is provided on the basis of income, including a program
90-16 under:
90-17 (1) Section 221(d), National Housing Act (12 U.S.C.
90-18 Section 1715l(d));
90-19 (2) Section 236, National Housing Act (12 U.S.C.
90-20 Section 1715z-1);
90-21 (3) Section 202, Housing Act of 1959 (12 U.S.C.
90-22 Section 1701q);
90-23 (4) Section 101, Housing and Urban Development Act of
90-24 1965 (12 U.S.C. Section 1701s);
90-25 (5) Section 514, 515, or 516, Housing Act of 1949 (42
90-26 U.S.C. Section 1484, 1485, or 1486); or
91-1 (6) Section 8, United States Housing Act of 1937 (42
91-2 U.S.C. Section 1437f).
91-3 Sec. 2306.802. MULTIFAMILY HOUSING PRESERVATION CLASSES.
91-4 The department shall establish two classes of priorities of
91-5 developments to preserve multifamily housing. The classes, in
91-6 order of descending priority, are:
91-7 (1) class A, which includes any federally subsidized
91-8 multifamily housing development at risk because the contract
91-9 granting a federal subsidy with a stipulation to maintain
91-10 affordability is nearing expiration or because the
91-11 government-insured mortgage on the property is eligible for
91-12 prepayment or near the end of its mortgage term; and
91-13 (2) class B, which includes any other multifamily
91-14 housing development with low-income use or rental affordability
91-15 restrictions.
91-16 Sec. 2306.803. AT-RISK MULTIFAMILY HOUSING: IDENTIFICATION,
91-17 PRIORITIZATION, AND PRESERVATION. (a) The department shall
91-18 determine the name and location of and the number of units in each
91-19 multifamily housing development that is at risk of losing its
91-20 low-income use restrictions and subsidies and that meets the
91-21 requirements of a class A priority described by Section 2306.802.
91-22 (b) The department shall maintain an accurate list of those
91-23 developments on the department's website.
91-24 (c) The department shall develop cost estimates for the
91-25 preservation and rehabilitation of the developments in priority
91-26 class A.
92-1 (d) The department shall contact owners of developments
92-2 assigned a class A priority under this section and shall attempt to
92-3 negotiate with those owners to ensure continued affordability for
92-4 individuals and families of low income under the federal housing
92-5 assistance program for those developments.
92-6 Sec. 2306.804. USE OF HOUSING PRESERVATION RESOURCES.
92-7 (a) To the extent possible, the department shall use available
92-8 resources for the preservation and rehabilitation of the
92-9 multifamily housing developments identified and listed under
92-10 Section 2306.803.
92-11 (b) To the extent possible, the department shall allocate
92-12 low-income housing tax credits to applications involving the
92-13 preservation of developments assigned a class A priority under
92-14 Section 2306.803 and in both urban and rural communities in
92-15 approximate proportion to the housing needs of each uniform state
92-16 service region.
92-17 (c) The department shall give priority to providing
92-18 financing or funding to a buyer who is supported or approved by an
92-19 association of residents of the multifamily housing development.
92-20 Sec. 2306.805. HOUSING PRESERVATION INCENTIVES PROGRAM.
92-21 (a) The department shall establish and administer a housing
92-22 preservation incentives program to provide incentives through loan
92-23 guarantees, loans, and grants to political subdivisions, housing
92-24 finance corporations, public housing authorities, for-profit
92-25 organizations, and nonprofit organizations for the acquisition and
92-26 rehabilitation of multifamily housing developments assigned a class
93-1 A or class B priority under Section 2306.803.
93-2 (b) A loan issued by a lender participating in the program
93-3 must be fully underwritten by the department.
93-4 (c) Consistent with the requirements of federal law, the
93-5 department may guarantee loans issued under the program by
93-6 obtaining a Section 108 loan guarantee from the United States
93-7 Department of Housing and Urban Development under the Housing and
93-8 Community Development Act of 1974 (42 U.S.C. Section 5308).
93-9 (d) Grants under this program may include direct subsidies
93-10 offered as an equity contribution to enable an owner to acquire and
93-11 rehabilitate a class A or class B priority property described by
93-12 Section 2306.802. Grants may also be offered to provide
93-13 consultation and technical assistance services to a nonprofit
93-14 organization seeking to acquire and rehabilitate a class A or class
93-15 B priority property.
93-16 (e) A housing development that benefits from the incentive
93-17 program under this section is subject to the requirements
93-18 concerning:
93-19 (1) long-term affordability and safety prescribed by
93-20 Section 2306.185; and
93-21 (2) tenant and manager selection prescribed by Section
93-22 2306.269.
93-23 SECTION 3.06. Chapter 2306, Government Code, is amended by
93-24 adding Subchapter II to read as follows:
94-1 SUBCHAPTER II. MULTIFAMILY HOUSING DEVELOPMENTS:
94-2 PRESERVATION OF AFFORDABILITY
94-3 Sec. 2306.851. APPLICATION. (a) This subchapter applies
94-4 only to a property owner of a multifamily housing development that
94-5 is insured or assisted under a program under Section 8, United
94-6 States Housing Act of 1937 (42 U.S.C. Section 1437f), or that is:
94-7 (1) insured or assisted under a program under:
94-8 (A) Section 221(d)(3), National Housing Act (12
94-9 U.S.C. Section 1715l);
94-10 (B) Section 236, National Housing Act (12 U.S.C.
94-11 Section 1715z-1); or
94-12 (C) Section 514, 515, or 516, Housing Act of
94-13 1949 (42 U.S.C. Section 1484, 1485, or 1486); and
94-14 (2) financed by a mortgage that is eligible for
94-15 prepayment at the option of the property owner.
94-16 (b) This subchapter does not apply to the disposal of
94-17 property because of:
94-18 (1) a governmental taking by eminent domain or
94-19 negotiated purchase;
94-20 (2) a foreclosure action;
94-21 (3) a transfer by gift, devise, or operation of law;
94-22 or
94-23 (4) a sale to a person who would be entitled to an
94-24 interest in the property if the property owner died intestate.
94-25 (c) This subchapter does not apply to property included in a
94-26 restructuring program with a participating administrative entity
95-1 designated by the United States Department of Housing and Urban
95-2 Development.
95-3 Sec. 2306.852. PROPERTY OWNER RESTRICTION. Except as
95-4 provided by this subchapter, a property owner to whom this
95-5 subchapter applies may not sell, lease, or otherwise dispose of a
95-6 multifamily housing development described by Section 2306.851(a) or
95-7 take any other action if that action will cause the disruption or
95-8 discontinuance of:
95-9 (1) the development's federal insurance or assistance;
95-10 or
95-11 (2) the provision of low-income housing assistance to
95-12 residents of the development.
95-13 Sec. 2306.853. NOTICE OF INTENT. (a) A property owner of a
95-14 multifamily housing development may take an action, sell, lease, or
95-15 otherwise dispose of the development subject to the restriction
95-16 under Section 2306.852 if the property owner provides notice by
95-17 mail of the owner's intent to the residents of the development and
95-18 to the department.
95-19 (b) The notice required by Subsection (a) must indicate, as
95-20 applicable, that the property owner intends to prepay a mortgage
95-21 under a program described by Section 2306.851(a)(1) or that a
95-22 contract formed under a program under Section 8, United States
95-23 Housing Act of 1937 (42 U.S.C. Section 1437f), will expire.
95-24 (c) The property owner shall provide the notice required by
95-25 Subsection (a) before the 90th day preceding the date of mortgage
95-26 prepayment or contract expiration, as applicable, and as otherwise
96-1 required by federal law.
96-2 (d) The notice required by this section is sufficient if the
96-3 notice meets the requirements of Section 8(c)(8), United States
96-4 Housing Act of 1937 (42 U.S.C. Section 1437f(c)(8)).
96-5 SECTION 3.07. (a) The Texas Department of Housing and
96-6 Community Affairs shall adopt the policies and procedures on the
96-7 long-term affordability and safety of multifamily rental housing
96-8 developments under Section 2306.185, Government Code, as added by
96-9 this Act, not later than November 1, 2001.
96-10 (b) The enforcement of the restrictions concerning
96-11 multifamily rental housing developments under Section 2306.185,
96-12 Government Code, as added by this Act, applies only to developments
96-13 that receive assistance from the Texas Department of Housing and
96-14 Community Affairs on or after January 1, 2002.
96-15 (c) The enforcement of restrictions concerning tenant and
96-16 manager selection under Section 2306.269, Government Code, as
96-17 amended by this Act, applies only to housing developments that
96-18 receive assistance from the Texas Department of Housing and
96-19 Community Affairs on or after January 1, 2002.
96-20 (d) The Texas Department of Housing and Community Affairs
96-21 shall create an initial list of multifamily housing developments
96-22 that are ranked by priority as required by Section 2306.803,
96-23 Government Code, as added by this Act, not later than January 1,
96-24 2002.
96-25 (e) If community development block grant funds are
96-26 transferred to another state agency, the Texas Department of
97-1 Housing and Community Affairs shall negotiate a memorandum of
97-2 understanding to permit the implementation of Section 2306.805(c),
97-3 Government Code, as added by this Act.
97-4 (f) The changes in law made by this article apply to a
97-5 multifamily housing development described by Section 2306.851,
97-6 Government Code, as added by this Act, that a property owner
97-7 intends to sell, lease, or otherwise dispose of on or after January
97-8 1, 2002.
97-9 ARTICLE 4
97-10 SECTION 4.01. Subsection (c), Section 2306.072, Government
97-11 Code, is amended to read as follows:
97-12 (c) The report must include:
97-13 (1) a complete operating and financial statement of
97-14 the department;
97-15 (2) a comprehensive statement of the activities of the
97-16 department during the preceding year to address the needs
97-17 identified in the state low income housing plan prepared as
97-18 required by Section 2306.0721, including:
97-19 (A) a statistical and narrative analysis of the
97-20 department's performance in addressing the housing needs of
97-21 individuals and families of low and very low income;
97-22 (B) the ethnic and racial composition of
97-23 individuals and families applying for and receiving assistance from
97-24 each housing-related program operated by the department; and
97-25 (C) the department's progress in meeting the
97-26 goals established in the previous housing plan;
98-1 (3) an explanation of the efforts made by the
98-2 department to ensure the participation of individuals of low income
98-3 and their community-based institutions in department programs that
98-4 affect them;
98-5 (4) a statement of the evidence that the department
98-6 has made an affirmative effort to ensure the involvement of
98-7 individuals of low income and their community-based institutions in
98-8 the allocation of funds and the planning process;
98-9 (5) a statistical analysis, delineated according to
98-10 each ethnic and racial group served by the department, that
98-11 indicates the progress made by the department in implementing the
98-12 state low income housing plan in each of the uniform state service
98-13 regions;
98-14 (6) an analysis, based on information provided by the
98-15 fair housing sponsor reports required under Section 2306.0724 and
98-16 other available data, of fair housing opportunities in each housing
98-17 development that receives financial assistance from the department
98-18 that includes the following information for each housing
98-19 development that contains 20 or more living units:
98-20 (A) the street address and municipality or
98-21 county in which the property is located;
98-22 (B) the telephone number of the property
98-23 management or leasing agent;
98-24 (C) the total number of units, reported by
98-25 bedroom size;
98-26 (D) [(C)] the total number of units, reported by
99-1 bedroom size, designed for individuals who are physically
99-2 challenged or who have special needs and the number of these
99-3 individuals served annually [as reported by each housing sponsor];
99-4 (E) the rent for each type of rental unit,
99-5 reported by bedroom size [(D) a statistical analysis of average
99-6 rents reported by county];
99-7 (F) [(E)] the race or ethnic makeup of each
99-8 project [as reported annually by each housing sponsor];
99-9 (G) [(F)] the number of units occupied by
99-10 individuals receiving government-supported housing assistance and
99-11 the type of assistance received [as reported by each housing
99-12 sponsor];
99-13 (H) the number of units occupied by individuals
99-14 and families of extremely low income, very low income, low income,
99-15 moderate income, and other levels of income;
99-16 (I) [(G)] a statement as to whether the
99-17 department has been notified of a violation of the fair housing law
99-18 that has been filed with the United States Department of Housing
99-19 and Urban Development, the Commission on Human Rights, or the
99-20 United States Department of Justice; and
99-21 (J) [(H)] a statement as to whether the
99-22 development has any instances of material noncompliance with bond
99-23 indentures or deed restrictions discovered through the normal
99-24 monitoring activities and procedures that include meeting occupancy
99-25 requirements or rent restrictions imposed by deed restriction or
99-26 financing agreements; [and]
100-1 (7) a report on the geographic distribution of low
100-2 income housing tax credits, the amount of unused low income housing
100-3 tax credits, and the amount of low income housing tax credits
100-4 received from the federal pool of unused funds from other states;
100-5 and
100-6 (8) a statistical analysis, based on information
100-7 provided by the fair housing sponsor reports required by Section
100-8 2306.0724 and other available data, of average rents reported by
100-9 county.
100-10 SECTION 4.02. Subchapter D, Chapter 2306, Government Code,
100-11 is amended by adding Section 2306.0724 to read as follows:
100-12 Sec. 2306.0724. FAIR HOUSING SPONSOR REPORT. (a) The
100-13 department shall require the owner of each housing development that
100-14 receives financial assistance from the department and that contains
100-15 20 or more living units to submit an annual fair housing sponsor
100-16 report. The report must include the relevant information necessary
100-17 for the analysis required by Section 2306.072(c)(6). In compiling
100-18 the information for the report, the owner of each housing
100-19 development shall use data current as of January 1 of the reporting
100-20 year.
100-21 (b) The department shall adopt rules regarding the procedure
100-22 for filing the report.
100-23 (c) The department shall maintain the reports in electronic
100-24 and hard-copy formats readily available to the public at no cost.
100-25 (d) A housing sponsor who fails to file a report in a timely
100-26 manner is subject to the following sanctions, as determined by the
101-1 department:
101-2 (1) denial of a request for additional funding; or
101-3 (2) an administrative penalty in an amount not to
101-4 exceed $1,000, assessed in the manner provided for an
101-5 administrative penalty under Section 2306.604.
101-6 SECTION 4.03. Section 2306.077, Government Code, is amended
101-7 by adding Subsections (d) and (e) to read as follows:
101-8 (d) The department shall provide for annual housing sponsor
101-9 reports required by Section 2306.0724 to be filed through the
101-10 Internet.
101-11 (e) The department shall provide for reports regarding
101-12 housing units designed for persons with disabilities made under
101-13 Section 2306.078 to be filed through the Internet.
101-14 SECTION 4.04. Subchapter D, Chapter 2306, Government Code,
101-15 is amended by adding Section 2306.078 to read as follows:
101-16 Sec. 2306.078. INFORMATION REGARDING HOUSING FOR PERSONS
101-17 WITH DISABILITIES. (a) The department shall establish a system
101-18 that requires owners of state or federally assisted housing
101-19 developments with 20 or more housing units to report information
101-20 regarding housing units designed for persons with disabilities.
101-21 (b) The system must provide for each owner of a development
101-22 described by Subsection (a) with at least one housing unit designed
101-23 for a person with a disability to enter the following information
101-24 on the department's Internet site:
101-25 (1) the name, if any, of the development;
101-26 (2) the street address of the development;
102-1 (3) the number of housing units in the development
102-2 that are designed for persons with disabilities and that are
102-3 available for lease;
102-4 (4) the number of bedrooms in each housing unit
102-5 designed for a person with a disability;
102-6 (5) the special features that characterize each
102-7 housing unit's suitability for a person with a disability;
102-8 (6) the rent for each housing unit designed for a
102-9 person with a disability; and
102-10 (7) the telephone number and name of the development
102-11 manager or agent to whom inquiries by prospective tenants may be
102-12 made.
102-13 (c) The department shall solicit each owner's voluntary
102-14 provision of updated information under Subsections (b)(3) and (6)
102-15 and shall require the owner to maintain updated contact information
102-16 under Subsection (b)(7).
102-17 (d) The department shall make information provided under
102-18 this section available to the public in electronic and hard-copy
102-19 formats at no cost.
102-20 ARTICLE 5
102-21 SECTION 5.01. Subchapter D, Chapter 2306, Government Code,
102-22 is amended by adding Sections 2306.079 and 2306.080 to read as
102-23 follows:
102-24 Sec. 2306.079. REGIONAL DEVELOPMENT COORDINATOR. (a) In
102-25 this section:
102-26 (1) "Regional development coordinator" means a person
103-1 employed by or under contract with the department to perform the
103-2 duties described by this section.
103-3 (2) "Regional partner" means an entity such as a
103-4 regional planning commission, political subdivision, local
103-5 nonprofit organization, institution of higher education, community
103-6 housing development organization, housing finance corporation,
103-7 public housing authority, agricultural extension agent, local bank,
103-8 or field office or service center of the United States Department
103-9 of Agriculture Rural Development Texas that is engaged in
103-10 data-gathering projects related to the goals of the department.
103-11 (b) The department shall employ or contract with a regional
103-12 development coordinator for each uniform state service region of
103-13 this state. The primary responsibilities of a regional development
103-14 coordinator are:
103-15 (1) assisting local communities in determining how to
103-16 address affordable housing and community development needs;
103-17 (2) establishing regional planning and
103-18 resource-sharing partnerships; and
103-19 (3) facilitating the leveraging of available local,
103-20 state, and federal funds.
103-21 (c) A regional development coordinator shall:
103-22 (1) gather and manage data about affordable housing
103-23 and community development needs in the uniform state service region
103-24 the coordinator represents by:
103-25 (A) identifying and working with regional
103-26 partners;
104-1 (B) using a variety of data resources,
104-2 including:
104-3 (i) the United States Census Bureau;
104-4 (ii) the United States Department of
104-5 Housing and Urban Development;
104-6 (iii) the Texas State Data Center;
104-7 (iv) the Texas Real Estate Research
104-8 Center; and
104-9 (v) the office of the comptroller, the
104-10 Texas Department of Economic Development, and other state agencies;
104-11 (C) developing an analysis of the region's
104-12 affordable housing and community development needs based on the
104-13 data gathered and local and regional input; and
104-14 (D) establishing a framework for sharing the
104-15 data with the regional partners;
104-16 (2) use the data described by Subdivision (1) to
104-17 facilitate the development of a regional plan and shall encourage
104-18 the consensus of the regional partners concerning the plan;
104-19 (3) identify statewide and national partners for
104-20 meeting the region's affordable housing and community development
104-21 needs, including the United States Department of Housing and Urban
104-22 Development, the United States Department of Agriculture Rural
104-23 Development Texas, the Texas State Affordable Housing Corporation,
104-24 statewide nonprofit entities, banking associations, developer
104-25 associations, and foundations; and
104-26 (4) provide an information clearinghouse for the
105-1 region that facilitates planning and resource sharing by
105-2 identifying programs that leverage local, state, and federal
105-3 financial aid.
105-4 (d) In each uniform state service region, the regional
105-5 planning commission and other regional partners shall establish an
105-6 advisory committee consisting of representatives of two or more
105-7 regional partners that shall:
105-8 (1) advise the department regarding the affordable
105-9 housing and community development needs of that region;
105-10 (2) assist the department in:
105-11 (A) assigning priorities to the affordable
105-12 housing and community development needs of that region;
105-13 (B) identifying resources to address those
105-14 needs; and
105-15 (C) implementing the low-income housing plan as
105-16 applied to that region; and
105-17 (3) request and gather from political subdivisions and
105-18 other appropriate entities any affordable housing and community
105-19 development plans that are relevant to the development of the
105-20 regional plan described by Subsection (c), including local plans,
105-21 regional plans from regional planning commissions, and plans
105-22 developed for the United States Department of Housing and Urban
105-23 Development consolidated planning process.
105-24 Sec. 2306.080. DATABASE INFORMATION SPECIALIST. The
105-25 director shall appoint a database information specialist. The
105-26 primary responsibility of the database information specialist is to
106-1 provide for the effective and efficient dissemination to the public
106-2 of information related to affordable housing and community
106-3 development in a form that is accessible, widely available, and
106-4 easily used.
106-5 ARTICLE 6
106-6 SECTION 6.01. Section 2306.583, Government Code, is amended
106-7 to read as follows:
106-8 Sec. 2306.583. SELF-HELP CENTERS: DESIGNATION. (a) The
106-9 department shall designate[:]
106-10 [(1)] a geographic area for the services provided by
106-11 each self-help center.
106-12 (b) In consultation with the colonia advisory committee and
106-13 the appropriate self-help center, the department shall designate[;
106-14 and]
106-15 [(2)] five colonias in each service area to receive
106-16 concentrated attention from that center.
106-17 (c) In consultation with the colonia advisory committee and
106-18 the appropriate self-help center, the [(b) The] department may
106-19 change the designation of colonias made under Subsection (b)
106-20 [(a)(2)].
106-21 SECTION 6.02. Section 2306.586, Government Code, is amended
106-22 by adding Subsection (e) to read as follows:
106-23 (e) Through a self-help center, a colonia resident may apply
106-24 for any direct loan or grant program operated by the department.
106-25 SECTION 6.03. Section 2306.587, Government Code, is amended
106-26 to read as follows:
107-1 Sec. 2306.587. OPERATION OF SELF-HELP CENTER; MONITORING.
107-2 (a) To operate a self-help center, the [The] department shall,
107-3 subject to the availability of revenue for that purpose, enter into
107-4 a four-year contract directly [for the operation of a self-help
107-5 center] with a local nonprofit organization, including a local
107-6 community action agency that qualifies as an eligible entity under
107-7 42 U.S.C. Section 9902, or a local housing authority that has
107-8 demonstrated the ability to carry out the functions of a self-help
107-9 center under this subchapter.
107-10 (b) The department is solely responsible for contract
107-11 oversight and for the monitoring of self-help centers under this
107-12 subchapter.
107-13 (c) The department and the self-help centers may apply for
107-14 and receive public or private gifts or grants to enable the centers
107-15 to achieve their purpose.
107-16 SECTION 6.04. Subsection (a), Section 2306.589, Government
107-17 Code, is amended to read as follows:
107-18 (a) The department shall establish a fund in the department
107-19 designated as the colonia set-aside fund. The department may
107-20 contribute money to the fund from any available source of revenue
107-21 that the department considers appropriate to implement the purposes
107-22 of this subchapter, except that the department may not use federal
107-23 community development block grant money authorized by Title I of
107-24 the Housing and Community Development Act of 1974 (42 U.S.C.
107-25 Section 5301 et seq.) unless the money is specifically appropriated
107-26 by the legislature for that purpose.
108-1 SECTION 6.05. Subsections (a) and (b), Section 2306.753,
108-2 Government Code, are amended to read as follows:
108-3 (a) Subject to this section, the department shall establish
108-4 eligibility requirements for an owner-builder to receive a loan
108-5 under this subchapter. The eligibility requirements must establish
108-6 a priority for loans made under this subchapter to owner-builders
108-7 with an annual income, as determined under Subsection (b)(1)
108-8 [(b)(2)], of less than $17,500.
108-9 (b) To be eligible for a loan under this subchapter, an
108-10 owner-builder:
108-11 (1) [must reside with at least two other persons
108-12 related to the owner-builder in the first degree by consanguinity
108-13 or affinity, as determined under Subchapter B, Chapter 573;]
108-14 [(2)] may not have an annual income that exceeds 60
108-15 percent, as determined by the department, of the greater of the
108-16 state or local median family income, when combined with the income
108-17 of any person who resides with the owner-builder;
108-18 (2) [(3)] must have resided in this state for the
108-19 preceding six months;
108-20 (3) [(4)] must have successfully completed an
108-21 owner-builder education class under Section 2306.756; and
108-22 (4) [(5)] must agree to:
108-23 (A) provide at least 60 percent of the labor
108-24 necessary to build the proposed housing by working through a
108-25 state-certified owner-builder housing program; or
108-26 (B) provide an amount of labor equivalent to the
109-1 amount required under Paragraph (A) in connection with building
109-2 housing for others through a state-certified nonprofit
109-3 owner-builder housing program.
109-4 SECTION 6.06. Subsections (a) and (b), Section 2306.754,
109-5 Government Code, are amended to read as follows:
109-6 (a) The department may establish the minimum amount of a
109-7 loan under this subchapter, but a loan may not exceed $30,000
109-8 [$25,000].
109-9 (b) If it is not possible for an owner-builder to purchase
109-10 necessary real property and build adequate housing for $30,000
109-11 [$25,000], the owner-builder must obtain the amount necessary that
109-12 exceeds $30,000 [$25,000] from one or more local governmental
109-13 entities, nonprofit organizations, or private lenders. The total
109-14 amount of loans made by the department and other entities to an
109-15 owner-builder under this subchapter may not exceed $60,000.
109-16 SECTION 6.07. Section 2306.755, Government Code, is amended
109-17 to read as follows:
109-18 Sec. 2306.755. NONPROFIT OWNER-BUILDER HOUSING PROGRAMS.
109-19 (a) The department may certify nonprofit owner-builder housing
109-20 programs operated by a tax-exempt organization listed under Section
109-21 501(c)(3), Internal Revenue Code of 1986, to:
109-22 (1) qualify potential owner-builders for loans under
109-23 this subchapter;
109-24 (2) provide owner-builder education classes under
109-25 Section 2306.756;
109-26 (3) assist owner-builders in building housing; and
110-1 (4) originate or service [administer] loans made [by
110-2 the department] under this subchapter.
110-3 (b) The department by rule shall adopt procedures for the
110-4 certification of nonprofit owner-builder housing programs under
110-5 this section.
110-6 SECTION 6.08. Section 2306.758, Government Code, is amended
110-7 by amending Subsection (b) and adding Subsection (c) to read as
110-8 follows:
110-9 (b) The department may also make loans under this subchapter
110-10 from:
110-11 (1) available funds in the housing trust fund
110-12 established under Section 2306.201;
110-13 (2) federal block grants that may be used for the
110-14 purposes of this subchapter; and
110-15 (3) the owner-builder revolving loan fund established
110-16 under Section 2306.7581 [amounts received by the department in
110-17 repayment of loans made under this subchapter].
110-18 (c) In a state fiscal year, the department may use not more
110-19 than 10 percent of the revenue available for purposes of this
110-20 subchapter to enhance the ability of tax-exempt organizations
110-21 described by Section 2306.755(a) to implement the purposes of this
110-22 chapter.
110-23 SECTION 6.09. Subchapter FF, Chapter 2306, Government Code,
110-24 is amended by adding Section 2306.7581 to read as follows:
110-25 Sec. 2306.7581. OWNER-BUILDER REVOLVING LOAN FUND. (a) The
110-26 department shall establish an owner-builder revolving loan fund in
111-1 the department for the sole purpose of funding loans under this
111-2 subchapter.
111-3 (a-1) Each state fiscal year the department shall transfer
111-4 at least $3 million to the owner-builder revolving loan fund from
111-5 money received under the federal HOME Investment Partnerships
111-6 program established under Title II of the Cranston-Gonzalez
111-7 National Affordable Housing Act (42 U.S.C. Section 12701 et seq.),
111-8 from money in the housing trust fund, or from money appropriated by
111-9 the legislature to the department. This subsection expires August
111-10 31, 2010.
111-11 (b) The department shall deposit money received in repayment
111-12 of a loan under this subchapter to the owner-builder revolving loan
111-13 fund.
111-14 SECTION 6.10. Chapter 2306, Government Code, is amended by
111-15 adding Subchapter GG to read as follows:
111-16 SUBCHAPTER GG. COLONIA MODEL SUBDIVISION PROGRAM
111-17 Sec. 2306.781. DEFINITION. In this subchapter, "program"
111-18 means the colonia model subdivision program established under this
111-19 subchapter.
111-20 Sec. 2306.782. ESTABLISHMENT OF PROGRAM. The department
111-21 shall establish the colonia model subdivision program to promote
111-22 the development of new, high-quality, residential subdivisions that
111-23 provide:
111-24 (1) alternatives to substandard colonias; and
111-25 (2) housing options affordable to individuals and
111-26 families of extremely low and very low income who would otherwise
112-1 move into substandard colonias.
112-2 Sec. 2306.783. COLONIA MODEL SUBDIVISION REVOLVING LOAN
112-3 FUND. (a) The department shall establish a colonia model
112-4 subdivision revolving loan fund in the department. Money in the
112-5 fund may be used only for purposes of the program.
112-6 (a-1) The department may transfer money into the colonia
112-7 model subdivision revolving loan fund using any available source of
112-8 revenue.
112-9 (a-2) On application, the department may provide a loan
112-10 under this subchapter through an eligible political subdivision
112-11 using money from the portion of community development block grant
112-12 that is set aside under federal law to provide financial assistance
112-13 to colonias. In a state fiscal year, the department may not
112-14 provide loans under this subchapter using more than $2 million from
112-15 the set-aside for colonias.
112-16 (a-3) Subsections (a-1) and (a-2) and this subsection expire
112-17 August 31, 2010.
112-18 (b) The department shall deposit money received in repayment
112-19 of loans under this subchapter to the colonia model subdivision
112-20 revolving loan fund.
112-21 Sec. 2306.784. SUBDIVISION COMPLIANCE. Any subdivision
112-22 created with assistance from the colonia model subdivision
112-23 revolving loan fund must fully comply with all state and local
112-24 laws, including any process established under state or local law
112-25 for subdividing real property.
112-26 Sec. 2306.785. PROGRAM LOANS. (a) The department may make
113-1 loans under the program only to:
113-2 (1) colonia self-help centers established under
113-3 Subchapter Z; and
113-4 (2) community housing development organizations
113-5 certified by the department.
113-6 (b) A loan made under the program may be used only for the
113-7 payment of:
113-8 (1) costs associated with the purchase of real
113-9 property;
113-10 (2) costs of surveying, platting, and subdividing or
113-11 resubdividing real property;
113-12 (3) fees, insurance costs, or recording costs
113-13 associated with the development of the subdivision;
113-14 (4) costs of providing proper infrastructure necessary
113-15 to support residential uses;
113-16 (5) real estate commissions and marketing fees; and
113-17 (6) any other costs as the department by rule
113-18 determines to be reasonable and prudent to advance the purposes of
113-19 this subchapter.
113-20 (c) A loan made by the department under the program may not
113-21 bear interest and may not exceed a term of 36 months.
113-22 (d) The department may offer a borrower under the program
113-23 one loan renewal for each subdivision.
113-24 Sec. 2306.786. ADMINISTRATION OF PROGRAM; RULES. (a) In
113-25 administering the program, the department by rule shall adopt:
113-26 (1) any subdivision standards in excess of local
114-1 standards the department considers necessary;
114-2 (2) loan application procedures;
114-3 (3) program guidelines; and
114-4 (4) contract award procedures.
114-5 (b) The department shall adopt rules to:
114-6 (1) ensure that a borrower under the program sells
114-7 real property under the program only to an individual borrower,
114-8 nonprofit housing developer, or for-profit housing developer for
114-9 the purposes of constructing residential dwelling units; and
114-10 (2) require a borrower under the program to convey
114-11 real property under the program at a cost that is affordable to:
114-12 (A) individuals and families of extremely low
114-13 income; or
114-14 (B) individuals and families of very low income.
114-15 SECTION 6.11. Subchapter B, Chapter 11, Tax Code, is amended
114-16 by adding Section 11.184 to read as follows:
114-17 Sec. 11.184. COLONIA MODEL SUBDIVISION PROGRAM. (a) An
114-18 organization is entitled to an exemption from taxation of
114-19 unimproved real property it owns if the organization:
114-20 (1) meets the requirements of a charitable
114-21 organization provided by Sections 11.18(e) and (f);
114-22 (2) purchased the property or is developing the
114-23 property with proceeds of a loan made by the Texas Department of
114-24 Housing and Community Affairs under the colonia model subdivision
114-25 program under Subchapter GG, Chapter 2306, Government Code; and
114-26 (3) owns the property for the purpose of developing a
115-1 model colonia subdivision.
115-2 (b) Property may not be exempted under Subsection (a) after
115-3 the fifth anniversary of the date the organization acquires the
115-4 property.
115-5 (c) An organization entitled to an exemption under
115-6 Subsection (a) is also entitled to an exemption from taxation of
115-7 any building or tangible personal property the organization owns
115-8 and uses in the administration of its acquisition, building,
115-9 repair, or sale of property. To qualify for an exemption under
115-10 this subsection, property must be used exclusively by the
115-11 charitable organization, except that another individual or
115-12 organization may use the property for activities incidental to the
115-13 charitable organization's use that benefit the beneficiaries of the
115-14 charitable organization.
115-15 (d) For the purposes of Subsection (e), the chief appraiser
115-16 shall determine the market value of property exempted under
115-17 Subsection (a) and shall record the market value in the appraisal
115-18 records.
115-19 (e) If the organization that owns improved or unimproved
115-20 real property that has been exempted under Subsection (a) sells the
115-21 property to a person other than a person described by Section
115-22 2306.786(b)(1), Government Code, a penalty is imposed on the
115-23 property equal to the amount of the taxes that would have been
115-24 imposed on the property in each tax year that the property was
115-25 exempted from taxation under Subsection (a), plus interest at an
115-26 annual rate of 12 percent computed from the dates on which the
116-1 taxes would have become due.
116-2 SECTION 6.12. If the administration of the federal community
116-3 development block grant program is transferred to an agency other
116-4 than the Texas Department of Housing and Community Affairs, the new
116-5 administering agency shall enter into a memorandum of understanding
116-6 with the Texas Department of Housing and Community Affairs to
116-7 permit the housing department to receive and administer the portion
116-8 of community development block grant money specifically allocated
116-9 under the General Appropriations Act to fund the operation of
116-10 colonia self-help centers. The memorandum must require the new
116-11 administering agency to transfer to the housing department a
116-12 portion of the agency's total administrative funds in the same
116-13 ratio that the portion of community development block grant money
116-14 allocated for the self-help centers bears to the total yearly
116-15 allocation of community development block grant money. The
116-16 memorandum must require the new administering agency to continue to
116-17 fund the housing department's border field offices through the
116-18 community development block grant program and must require the
116-19 housing department to exercise oversight and supervision over those
116-20 field offices and staff.
116-21 SECTION 6.13. Section 2306.760, Government Code, is
116-22 repealed.
116-23 ARTICLE 7
116-24 SECTION 7.01. Section 1372.022, Government Code, is amended
116-25 by amending Subsection (b) and adding Subsection (c) to read as
116-26 follows:
117-1 (b) If the state ceiling is computed on the basis of $75 per
117-2 capita or a greater amount, before August 15 of each year:
117-3 (1) 29.6 percent of the state ceiling is available
117-4 exclusively for reservations by issuers of qualified mortgage
117-5 bonds;
117-6 (2) 8 percent of the state ceiling is available
117-7 exclusively for reservations by issuers of state-voted issues;
117-8 (3) 4.6 percent of the state ceiling is available
117-9 exclusively for reservations by issuers of qualified small issue
117-10 bonds and enterprise zone facility bonds;
117-11 (4) 23 percent of the state ceiling is available
117-12 exclusively for reservations by issuers of qualified residential
117-13 rental project bonds;
117-14 (5) 8.8 percent of the state ceiling is available
117-15 exclusively for reservations by issuers of qualified student loan
117-16 bonds authorized by Section 53.47, Education Code; and
117-17 (6) 26 percent of the state ceiling is available
117-18 exclusively for reservations by any other issuer of bonds that
117-19 require an allocation.
117-20 (c) On and after August 15 but before September 1, that
117-21 portion of the state ceiling available for reservations becomes
117-22 available for qualified residential rental project issues in the
117-23 manner described by Section 1372.0321. On and after September 1,
117-24 that portion of the state ceiling available for reservations
117-25 becomes available to any issuer for any bonds that require an
117-26 allocation, subject to the provisions of this subchapter.
118-1 SECTION 7.02. Subchapter B, Chapter 1372, Government Code,
118-2 is amended by adding Section 1372.0231 to read as follows:
118-3 Sec. 1372.0231. DEDICATION OF PORTION OF STATE CEILING
118-4 AVAILABLE FOR QUALIFIED RESIDENTIAL RENTAL PROJECT BONDS.
118-5 (a) Until August 15, of that portion of the state ceiling that is
118-6 available exclusively for reservations by issuers of qualified
118-7 residential rental project bonds:
118-8 (1) 25 percent is available exclusively to the Texas
118-9 Department of Housing and Community Affairs in the manner described
118-10 by Subsection (b); and
118-11 (2) 75 percent is available exclusively to housing
118-12 finance corporations in the manner described by Subsections
118-13 (c)-(e).
118-14 (b) With respect to the amount of the state ceiling set
118-15 aside under Subsection (a)(1), the board shall grant reservations:
118-16 (1) in the order determined by the board by lot; and
118-17 (2) in a manner that ensures that:
118-18 (A) the set-aside amount is used for proposed
118-19 projects that are located throughout the state; and
118-20 (B) not more than 50 percent of the set-aside
118-21 amount is used for proposed projects that are located in qualified
118-22 census tracts as defined by Section 143(j), Internal Revenue Code
118-23 of 1986.
118-24 (c) Before June 1, the board shall apportion the amount of
118-25 state ceiling set aside under Subsection (a)(2) among the uniform
118-26 state service regions according to the percentage of the state's
119-1 population that resides in each of those regions.
119-2 (d) For the uniform state service regions containing Austin,
119-3 Dallas, and Houston, the board shall additionally apportion the
119-4 amount of the state ceiling set aside for each of those regions
119-5 under Subsection (c) within the region according to the percentage
119-6 of the region's population that resides in a metropolitan
119-7 statistical area and the percentage of the region's population that
119-8 resides outside of a metropolitan statistical area. With respect
119-9 to the amount of the state ceiling set aside for a metropolitan
119-10 statistical area under this subsection, the board shall grant
119-11 reservations in a manner that ensures that not more than 50 percent
119-12 of that set-aside amount is used for proposed projects that are
119-13 located in qualified census tracts as defined by Section 143(j),
119-14 Internal Revenue Code of 1986.
119-15 (e) In each area described by Subsection (c) or (d), the
119-16 board shall grant reservations based on the priority levels of
119-17 proposed projects as described by Section 1372.032.
119-18 (f) On or after June 1, the board may not grant available
119-19 reservations to housing finance corporations described by
119-20 Subsection (a) based on uniform state service regions or any
119-21 segments of those regions.
119-22 SECTION 7.03. Subsection (a), Section 1372.026, Government
119-23 Code, is amended to read as follows:
119-24 (a) The maximum amount of the state ceiling that may be
119-25 reserved before August 15 [September 1] by a housing finance
119-26 corporation for the issuance of qualified mortgage bonds may not
120-1 exceed the amount computed as follows [by multiplying the local
120-2 population of the corporation by]:
120-3 (1) [$50,] if the local population of the housing
120-4 finance corporation is 300,000 or more, $22.5 million plus the
120-5 product of the amount by which the local population exceeds 300,000
120-6 multiplied by $11.25;
120-7 (2) [$75,] if the local population of the housing
120-8 finance corporation is 200,000 or more but less than 300,000, $20
120-9 million plus the product of the amount by which the local
120-10 population exceeds 200,000 multiplied by $22.5;
120-11 (3) [$100,] if the local population of the housing
120-12 finance corporation is 100,000 or more but less than 200,000, $15
120-13 million plus the product of the amount by which the local
120-14 population exceeds 100,000 multiplied by $50; or
120-15 (4) [$150,] if the local population of the housing
120-16 finance corporation is less than 100,000, the product of the local
120-17 population multiplied by $150.
120-18 SECTION 7.04. Subchapter B, Chapter 1372, Government Code,
120-19 is amended by adding Section 1372.0261 to read as follows:
120-20 Sec. 1372.0261. FAILURE OF HOUSING FINANCE CORPORATION TO
120-21 USE AMOUNT OF STATE CEILING ALLOCATED. (a) In this section,
120-22 "utilization percentage" means that portion of the amount of the
120-23 state ceiling allocated to a housing finance corporation with
120-24 respect to which the corporation issues private activity bonds that
120-25 result in mortgage loans or mortgage credit certificates. A
120-26 housing finance corporation's utilization percentage for an
121-1 allocation of the state ceiling is the quotient of:
121-2 (1) the amount of state ceiling used to purchase
121-3 mortgages or mortgage-backed securities or the amount of the state
121-4 ceiling used to issue mortgage credit certificates; divided by
121-5 (2) the amount of the state ceiling allocated, minus
121-6 any amounts of the state ceiling required for debt service reserve
121-7 funds.
121-8 (b) If a housing finance corporation's issue of bonds uses a
121-9 new allocation of the state ceiling in combination with taxable
121-10 bond proceeds or with bond proceeds recycled from previous
121-11 allocations of the state ceiling, the first loans or certificates
121-12 financed are considered in computing the utilization percentage of
121-13 the new allocation of the state ceiling.
121-14 (c) If a housing finance corporation's utilization
121-15 percentage is less than 95 percent, the next time the corporation
121-16 becomes eligible for a reservation of the state ceiling, the
121-17 maximum amount of state ceiling that may be reserved for the
121-18 corporation is equal to the amount for which the corporation would
121-19 otherwise be eligible under Section 1372.026 multiplied by the
121-20 utilization percentage of the corporation's last bond issue that
121-21 used an allocation of the state ceiling.
121-22 (d) A housing finance corporation may not be penalized under
121-23 Subsection (c) if:
121-24 (1) the corporation fails to use:
121-25 (A) bond proceeds recycled from previous
121-26 allocations of the state ceiling; or
122-1 (B) taxable bond proceeds; or
122-2 (2) as the result of an issuance of bonds, the
122-3 corporation's utilization percentage is 95 percent or greater.
122-4 SECTION 7.05. Section 1372.031, Government Code, is amended
122-5 to read as follows:
122-6 Sec. 1372.031. PRIORITIES FOR RESERVATIONS AMONG CERTAIN
122-7 ISSUERS. If, on or before October 20, more than one issuer in a
122-8 category described by Section 1372.022(a)(2), (3), [(4),] or (6)
122-9 applies for a reservation of the state ceiling for the next program
122-10 year, the board shall grant reservations in that category in the
122-11 order determined by the board by lot.
122-12 SECTION 7.06. The heading to Section 1372.032, Government
122-13 Code, is amended to read as follows:
122-14 Sec. 1372.032. PRIORITIES FOR RESERVATIONS AMONG ISSUERS OF
122-15 QUALIFIED MORTGAGE BONDS [HOUSING FINANCE CORPORATIONS].
122-16 SECTION 7.07. (a) Subchapter B, Chapter 1372, Government
122-17 Code, is amended to conform to Section 2, Chapter 131, Acts of the
122-18 76th Legislature, Regular Session, 1999, by adding Section
122-19 1372.0321 and is further amended to read as follows:
122-20 Sec. 1372.0321. PRIORITIES FOR RESERVATIONS AMONG ISSUERS OF
122-21 QUALIFIED RESIDENTIAL RENTAL PROJECT ISSUES. (a) In granting
122-22 reservations to issuers of qualified residential rental project
122-23 issues, the board shall:
122-24 (1) give first priority to:
122-25 (A) projects in which 100 percent of the
122-26 residential units in the projects are under the restriction that
123-1 the maximum allowable rents are an amount equal to 30 percent of 50
123-2 percent of the area median family income minus an allowance for
123-3 utility costs authorized under the federal low-income housing tax
123-4 credit program; and
123-5 (B) on or after June 1, projects that are
123-6 located in counties, metropolitan statistical areas, or primary
123-7 metropolitan statistical areas with area median family incomes at
123-8 or below the statewide median family income established by the
123-9 United States Department of Housing and Urban Development;
123-10 (2) give second priority to projects in which 100
123-11 percent of the residential units in the projects are under the
123-12 restriction that the maximum allowable rents are an amount equal to
123-13 30 percent of 60 percent of the area median family income minus an
123-14 allowance for utility costs authorized under the federal low-income
123-15 housing tax credit program; and
123-16 (3) give third priority to any other qualified
123-17 residential rental project.
123-18 (b) The board may not reserve a portion of the state ceiling
123-19 for a first or second priority project described by Subsection (a)
123-20 unless the board receives evidence that an application has been
123-21 filed with the Texas Department of Housing and Community Affairs
123-22 for the low-income housing tax credit that is available for
123-23 multifamily transactions that are at least 51 percent financed by
123-24 tax-exempt private activity bonds.
123-25 (b) Section 2, Chapter 131, Acts of the 76th Legislature,
123-26 Regular Session, 1999, is repealed.
124-1 SECTION 7.08. Subsection (c), Section 1372.042, Government
124-2 Code, is amended to read as follows:
124-3 (c) Notwithstanding Subsections (a) and (b), if the 120-day
124-4 period or the 180-day period, as applicable, expires on or after
124-5 December 24 of the year in which the reservation was granted, the
124-6 issuer shall close on the bonds before December 24, except that if
124-7 the applicable period expires after December 31 of that year, the
124-8 issuer may notify the board in writing before December 24 of the
124-9 issuer's election to carry forward the reservation and of the
124-10 issuer's expected bond closing date. In compliance with the
124-11 requirements of Section 146(f), Internal Revenue Code of 1986, the
124-12 board shall file in a timely manner a carryforward election with
124-13 respect to any bonds expected to close after December 31 to permit
124-14 the bonds to close by the expected date, except that the board may
124-15 not file the carryforward election after February 15 of the year
124-16 following the year in which the reservation was granted. The grant
124-17 of the reservation for the balance of the 120-day period or the
124-18 180-day period, as applicable, is automatically and immediately
124-19 reinstated on the board's filing of a carryforward election with
124-20 respect to the reservation [the issuer shall close on the bonds
124-21 before December 24].
124-22 SECTION 7.09. Sections 1372.061 and 1372.062, Government
124-23 Code, are amended to read as follows:
124-24 Sec. 1372.061. DESIGNATION BY BOARD OF CERTAIN AMOUNTS OF
124-25 STATE CEILING AS CARRYFORWARD. (a) The board may designate as
124-26 carryforward:
125-1 (1) the amount of the state ceiling that is not
125-2 reserved before December 15; and
125-3 (2) any amount of the state ceiling that:
125-4 (A) was reserved before December 15; and
125-5 (B) becomes available on or after that date
125-6 because of the cancellation of a reservation.
125-7 (b) The board shall designate as carryforward a reservation
125-8 amount for which the board receives written notice from an issuer
125-9 of an election to carry forward the reservation under Section
125-10 1372.042(c) if the bonds relating to the reservation are not
125-11 required to close by December 31 of the year in which the
125-12 reservation was granted.
125-13 Sec. 1372.062. PRIORITY CLASSIFICATIONS OF CARRYFORWARD
125-14 DESIGNATIONS. (a) The board shall:
125-15 (1) designate amounts as carryforward in accordance
125-16 with the system of priority classifications specified in Sections
125-17 1372.063-1372.068; and
125-18 (2) in each classification, make the designations in
125-19 order of the application [applications] for those designations.
125-20 (b) Notwithstanding Subsection (a), the board shall
125-21 designate in compliance with the requirements of Section 146(f),
125-22 Internal Revenue Code of 1986, a carryforward relating to an
125-23 issuer's written election under Section 1372.042(c) according to
125-24 the category of bonds to which the reservation subject to the
125-25 carryforward relates.
125-26 SECTION 7.10. Section 1372.0261, Government Code, as added
126-1 by this article, applies only to a reservation of state ceiling
126-2 granted on or after January 1, 2002.
126-3 SECTION 7.11. (a) In accordance with Subsection (c),
126-4 Section 311.031, Government Code, which gives effect to a
126-5 substantive amendment enacted by the same legislature that codifies
126-6 the amended statute, the text of Subsection (b), Section 1372.022,
126-7 Government Code, as set out in this Act, gives effect to changes
126-8 made by Chapter 131, Acts of the 76th Legislature, Regular Session,
126-9 1999.
126-10 (b) To the extent of any conflict, the changes in law made
126-11 by this Act to Chapter 1372, Government Code, prevail over another
126-12 Act of the 77th Legislature, Regular Session, 2001, relating to
126-13 nonsubstantive additions to and corrections in enacted codes.
126-14 ARTICLE 8
126-15 SECTION 8.01. Subchapter DD, Chapter 2306, Government Code,
126-16 is amended to read as follows:
126-17 SUBCHAPTER DD. LOW INCOME HOUSING TAX CREDIT PROGRAM
126-18 Sec. 2306.6701. PURPOSE. The department shall administer
126-19 the low income housing tax credit program to:
126-20 (1) encourage the development and preservation of
126-21 appropriate types of rental housing for households that have
126-22 difficulty finding suitable, affordable rental housing in the
126-23 private marketplace;
126-24 (2) maximize the number of suitable, affordable
126-25 residential rental units added to the state's housing supply;
126-26 (3) prevent losses for any reason to the state's
127-1 supply of suitable, affordable residential rental units by enabling
127-2 the rehabilitation of rental housing or by providing other
127-3 preventive financial support under this subchapter; and
127-4 (4) provide for the participation of for-profit
127-5 organizations and provide for and encourage the participation of
127-6 nonprofit organizations in the acquisition, development, and
127-7 operation of affordable housing developments in urban and rural
127-8 communities.
127-9 Sec. 2306.6702. DEFINITIONS. (a) In this subchapter:
127-10 (1) "Applicant" means any person or affiliate of a
127-11 person who files an application with the department requesting a
127-12 housing tax credit allocation.
127-13 (2) "Application" means an application filed with the
127-14 department by an applicant and includes any exhibits or other
127-15 supporting materials.
127-16 (3) "Application log" means a form containing at least
127-17 the information required by Section 2306.6709.
127-18 (4) "Application round" means the period beginning on
127-19 the date the department begins accepting applications and
127-20 continuing until all available housing tax credits are allocated,
127-21 but not extending past the last day of the calendar year.
127-22 (5) "At-risk development" means a development that:
127-23 (A) receives the benefit of a subsidy in the
127-24 form of a below-market interest rate loan, interest rate reduction,
127-25 rental subsidy, Section 8 housing assistance payment, rental
127-26 supplement payment, or rental assistance payment under the
128-1 following federal laws, as applicable:
128-2 (i) Sections 221(d)(3) and (5), National
128-3 Housing Act (12 U.S.C. Section 1715l);
128-4 (ii) Section 236, National Housing Act (12
128-5 U.S.C. Section 1715z-1);
128-6 (iii) Section 202, Housing Act of 1959 (12
128-7 U.S.C. Section 1701q);
128-8 (iv) Section 101, Housing and Urban
128-9 Development Act of 1965 (12 U.S.C. Section 1701s);
128-10 (v) the Section 8 Additional Assistance
128-11 Program for housing developments with HUD-Insured and HUD-Held
128-12 Mortgages administered by the United States Department of Housing
128-13 and Urban Development;
128-14 (vi) the Section 8 Housing Assistance
128-15 Program for the Disposition of HUD-Owned Projects administered by
128-16 the United States Department of Housing and Urban Development; or
128-17 (vii) Sections 514, 515, and 516, Housing
128-18 Act of 1949 (42 U.S.C. Sections 1484, 1485, and 1486); and
128-19 (B) is subject to the following conditions:
128-20 (i) the stipulation to maintain
128-21 affordability in the contract granting the subsidy is nearing
128-22 expiration; or
128-23 (ii) the federally insured mortgage on the
128-24 development is eligible for prepayment or is nearing the end of its
128-25 term.
128-26 (6) "Development" means a proposed qualified low
129-1 income housing project, as defined by Section 42(g), Internal
129-2 Revenue Code of 1986 (26 U.S.C. Section 42(g)), that consists of
129-3 one or more buildings containing multiple units, that is financed
129-4 under a common plan, and that is owned by the same person for
129-5 federal tax purposes, including a project consisting of multiple
129-6 buildings that:
129-7 (A) are located on scattered sites; and
129-8 (B) contain only rent-restricted units.
129-9 (7) "Development owner" means any person or affiliate
129-10 of a person who owns or proposes a development or expects to
129-11 acquire control of a development under a purchase contract approved
129-12 by the department.
129-13 (8) "Housing tax credit" means a tax credit allocated
129-14 under the low income housing tax credit program.
129-15 (9) "Land use restriction agreement" means an
129-16 agreement between the department, the development owner, and the
129-17 development owner's successors in interest that encumbers the
129-18 development with respect to the requirements of this subchapter and
129-19 the requirements of Section 42, Internal Revenue Code of 1986 (26
129-20 U.S.C. Section 42).
129-21 (10) "Qualified allocation plan" means a plan adopted
129-22 by the board under this subchapter that:
129-23 (A) provides the threshold, scoring, and
129-24 underwriting criteria based on housing priorities of the department
129-25 that are appropriate to local conditions;
129-26 (B) gives preference in housing tax credit
130-1 allocations to developments that, as compared to the other
130-2 developments:
130-3 (i) when practicable and feasible based on
130-4 available funding sources, serve the lowest income tenants; and
130-5 (ii) are affordable to qualified tenants
130-6 for the longest economically feasible period; and
130-7 (C) provides a procedure for the department, the
130-8 department's agent, or another private contractor of the department
130-9 to use in monitoring compliance with the qualified allocation plan
130-10 and this subchapter.
130-11 (11) "Related party" means the following individuals
130-12 or entities:
130-13 (A) the brothers, sisters, spouse, ancestors,
130-14 and descendants of a person within the third degree of
130-15 consanguinity, as determined by Chapter 573;
130-16 (B) a person and a corporation, if the person
130-17 owns more than 50 percent of the outstanding stock of the
130-18 corporation;
130-19 (C) two or more corporations that are connected
130-20 through stock ownership with a common parent possessing more than
130-21 50 percent of:
130-22 (i) the total combined voting power of all
130-23 classes of stock of each of the corporations that can vote;
130-24 (ii) the total value of shares of all
130-25 classes of stock of each of the corporations; or
130-26 (iii) the total value of shares of all
131-1 classes of stock of at least one of the corporations, excluding, in
131-2 computing that voting power or value, stock owned directly by the
131-3 other corporation;
131-4 (D) a grantor and fiduciary of any trust;
131-5 (E) a fiduciary of one trust and a fiduciary of
131-6 another trust, if the same person is a grantor of both trusts;
131-7 (F) a fiduciary of a trust and a beneficiary of
131-8 the trust;
131-9 (G) a fiduciary of a trust and a corporation if
131-10 more than 50 percent of the outstanding stock of the corporation is
131-11 owned by or for:
131-12 (i) the trust; or
131-13 (ii) a person who is a grantor of the
131-14 trust;
131-15 (H) a person or organization and an organization
131-16 that is tax-exempt under Section 501(a), Internal Revenue Code of
131-17 1986 (26 U.S.C. Section 501), and that is controlled by that person
131-18 or the person's family members or by that organization;
131-19 (I) a corporation and a partnership or joint
131-20 venture if the same persons own more than:
131-21 (i) 50 percent of the outstanding stock of
131-22 the corporation; and
131-23 (ii) 50 percent of the capital interest or
131-24 the profits' interest in the partnership or joint venture;
131-25 (J) an S corporation and another S corporation
131-26 if the same persons own more than 50 percent of the outstanding
132-1 stock of each corporation;
132-2 (K) an S corporation and a C corporation if the
132-3 same persons own more than 50 percent of the outstanding stock of
132-4 each corporation;
132-5 (L) a partnership and a person or organization
132-6 owning more than 50 percent of the capital interest or the profits'
132-7 interest in that partnership; or
132-8 (M) two partnerships, if the same person or
132-9 organization owns more than 50 percent of the capital interests or
132-10 profits' interests.
132-11 (12) "Rural area" means an area that is located:
132-12 (A) outside the boundaries of a primary
132-13 metropolitan statistical area or a metropolitan statistical area;
132-14 (B) within the boundaries of a primary
132-15 metropolitan statistical area or a metropolitan statistical area,
132-16 if the statistical area has a population of 20,000 or less and does
132-17 not share a boundary with an urban area; or
132-18 (C) in an area that is eligible for funding by
132-19 the Texas Rural Development Office of the United States Department
132-20 of Agriculture.
132-21 (13) "Rural development agency" means the state agency
132-22 designated by the legislature as primarily responsible for rural
132-23 area development in the state.
132-24 (14) "Set-aside" means a reservation of a portion of
132-25 the available housing tax credits to provide financial support for
132-26 specific types of housing or geographic locations or serve specific
133-1 types of applicants as permitted by the qualified allocation plan
133-2 on a priority basis.
133-3 (15) "Threshold criteria" means the criteria used to
133-4 determine whether the development satisfies the minimum level of
133-5 acceptability for consideration established in the department's
133-6 qualified allocation plan.
133-7 (16) "Unit" means any residential rental unit in a
133-8 development consisting of an accommodation, including a single room
133-9 used as an accommodation on a non-transient basis, that contains
133-10 separate and complete physical facilities and fixtures for living,
133-11 sleeping, eating, cooking, and sanitation.
133-12 (b) For purposes of Subsection (a)(11), the constructive
133-13 ownership provisions of Section 267, Internal Revenue Code of 1986
133-14 (26 U.S.C. Section 267), apply. The board may lower in the
133-15 qualified allocation plan the percentages described by Subsection
133-16 (a)(11).
133-17 Sec. 2306.67021. APPLICABILITY OF SUBCHAPTER. Except as
133-18 provided by Section 2306.6703, this subchapter does not apply to
133-19 the allocation of housing tax credits to developments financed
133-20 through the private activity bond program.
133-21 Sec. 2306.67022. QUALIFIED ALLOCATION PLAN; MANUAL. The
133-22 board annually shall adopt a qualified allocation plan and a
133-23 corresponding manual to provide information regarding the
133-24 administration of and eligibility for the low income housing tax
133-25 credit program.
133-26 Sec. 2306.6703. INELIGIBILITY FOR CONSIDERATION. An
134-1 application is ineligible for consideration under the low income
134-2 housing tax credit program if:
134-3 (1) at the time of application or at any time during
134-4 the two-year period preceding the date the application round
134-5 begins, the applicant or a related party is or has been:
134-6 (A) a member of the board; or
134-7 (B) the director, a deputy director, the
134-8 director of housing programs, or the low income housing tax credit
134-9 program manager employed by the department; or
134-10 (2) the applicant proposes to replace in less than 15
134-11 years any private activity bond financing of the development
134-12 described by the application, unless:
134-13 (A) the applicant proposes to maintain for a
134-14 period of 30 years or more 100 percent of the development units
134-15 supported by low income housing tax credits as rent-restricted and
134-16 exclusively for occupancy by individuals and families earning not
134-17 more than 50 percent of the area median income, adjusted for family
134-18 size; and
134-19 (B) at least one-third of all the units in the
134-20 development are public housing units or Section 8 project-based
134-21 units.
134-22 Sec. 2306.6704. PREAPPLICATION PROCESS. (a) To prevent
134-23 unnecessary filing costs, the department by rule shall establish a
134-24 voluntary preapplication process to enable a preliminary assessment
134-25 of an application proposed for filing under this subchapter.
134-26 (b) The department shall award in the application evaluation
135-1 process described by Section 2306.6710 an appropriate number of
135-2 points as an incentive for participation in the preapplication
135-3 process established under this section.
135-4 (c) The department shall reject and return to the applicant
135-5 any application assessed by the department under this section that
135-6 fails to satisfy the threshold criteria required by the board in
135-7 the qualified allocation plan.
135-8 (d) If feasible under Section 2306.67041, an application
135-9 under this section must be submitted electronically.
135-10 Sec. 2306.67041. ON-LINE APPLICATION SYSTEM. (a) The
135-11 department and the Department of Information Resources shall
135-12 cooperate to evaluate the feasibility of an on-line application
135-13 system for the low income housing tax credit program to provide the
135-14 following functions:
135-15 (1) filing of preapplications and applications
135-16 on-line;
135-17 (2) posting of on-line preapplication or application
135-18 status and the application log detailing the status of, and
135-19 department's evaluations and scores pertaining to, those
135-20 applications; and
135-21 (3) posting of comments from applicants and the public
135-22 regarding a preapplication or application.
135-23 (b) The department shall determine the process for allowing
135-24 access to on-line preapplications and applications, information
135-25 related to those applications, and department decisions relating to
135-26 those applications.
136-1 (c) In the application cycle following the date any on-line
136-2 application system becomes operational, the department shall
136-3 require use of the system for submission of preapplications and
136-4 applications under this subchapter.
136-5 (d) The department shall publish a status report on the
136-6 implementation of the on-line application on the department's
136-7 website not later than January 1, 2002.
136-8 (e) Before the implementation of the on-line application
136-9 system, the department may implement the requirements of Section
136-10 2306.6717 in any manner the department considers appropriate.
136-11 Sec. 2306.6705. GENERAL APPLICATION REQUIREMENTS. An
136-12 application must contain at a minimum the following written,
136-13 detailed information in a form prescribed by the board:
136-14 (1) a description of:
136-15 (A) the financing plan for the development,
136-16 including any nontraditional financing arrangements;
136-17 (B) the use of funds with respect to the
136-18 development;
136-19 (C) the funding sources for the development,
136-20 including:
136-21 (i) construction, permanent, and bridge
136-22 loans; and
136-23 (ii) rents, operating subsidies, and
136-24 replacement reserves; and
136-25 (D) the commitment status of the funding sources
136-26 for the development;
137-1 (2) if syndication costs are included in the eligible
137-2 basis, a justification of the syndication costs for each cost
137-3 category by an attorney or accountant specializing in tax matters;
137-4 (3) from a syndicator or a financial consultant of the
137-5 applicant, an estimate of the amount of equity dollars expected to
137-6 be raised for the development in conjunction with the amount of
137-7 housing tax credits requested for allocation to the applicant,
137-8 including:
137-9 (A) pay-in schedules; and
137-10 (B) syndicator consulting fees and other
137-11 syndication costs;
137-12 (4) if rental assistance, an operating subsidy, or an
137-13 annuity is proposed for the development, any related contract or
137-14 other agreement securing those funds and an identification of:
137-15 (A) the source and annual amount of the funds;
137-16 (B) the number of units receiving the funds; and
137-17 (C) the term and expiration date of the contract
137-18 or other agreement;
137-19 (5) if the development is located within the
137-20 boundaries of a political subdivision with a zoning ordinance,
137-21 evidence in the form of a letter from the chief executive officer
137-22 of the political subdivision or from another local official with
137-23 jurisdiction over zoning matters that states that:
137-24 (A) the development is permitted under the
137-25 provisions of the ordinance that apply to the location of the
137-26 development; or
138-1 (B) the applicant is in the process of seeking
138-2 the appropriate zoning and has signed and provided to the political
138-3 subdivision a release agreeing to hold the political subdivision
138-4 and all other parties harmless in the event that the appropriate
138-5 zoning is denied;
138-6 (6) if an occupied development is proposed for
138-7 rehabilitation:
138-8 (A) an explanation of the process used to notify
138-9 and consult with the tenants in preparing the application;
138-10 (B) a relocation plan outlining:
138-11 (i) relocation requirements; and
138-12 (ii) a budget with an identified funding
138-13 source; and
138-14 (C) if applicable, evidence that the relocation
138-15 plan has been submitted to the appropriate local agency;
138-16 (7) a certification of the applicant's compliance with
138-17 appropriate state and federal laws, as required by other state law
138-18 or by the board; and
138-19 (8) any other information required by the board in the
138-20 qualified allocation plan.
138-21 Sec. 2306.6706. ADDITIONAL APPLICATION REQUIREMENT:
138-22 NONPROFIT SET-ASIDE ALLOCATION. (a) In addition to the
138-23 information required by Section 2306.6705, an application for a
138-24 housing tax credit allocation from the nonprofit set-aside, as
138-25 defined by Section 42(h)(5), Internal Revenue Code of 1986 (26
138-26 U.S.C. Section 42(h)(5)), must contain the following written,
139-1 detailed information with respect to each development owner and
139-2 each general partner of a development owner:
139-3 (1) Internal Revenue Service documentation of
139-4 designation as a Section 501(c)(3) or 501(c)(4) organization;
139-5 (2) evidence that one of the exempt purposes of the
139-6 nonprofit organization is to provide low income housing;
139-7 (3) a description of the nonprofit organization's
139-8 participation in the construction or rehabilitation of the
139-9 development and in the ongoing operations of the development;
139-10 (4) evidence that the nonprofit organization prohibits
139-11 a member of its board of directors, other than a chief staff member
139-12 serving concurrently as a member of the board, from receiving
139-13 material compensation for service on the board;
139-14 (5) a third-party legal opinion stating that the
139-15 nonprofit organization is not affiliated with or controlled by a
139-16 for-profit organization and the basis for that opinion;
139-17 (6) a copy of the nonprofit organization's most recent
139-18 audited financial statement;
139-19 (7) a list of the names and home addresses of members
139-20 of the board of directors of the nonprofit organization;
139-21 (8) a third-party legal opinion stating that the
139-22 nonprofit organization is eligible under Subsection (b) for a
139-23 housing tax credit allocation from the nonprofit set-aside and the
139-24 basis for that opinion; and
139-25 (9) evidence that a majority of the members of the
139-26 nonprofit organization's board of directors principally reside:
140-1 (A) in this state, if the development is located
140-2 in a rural area; or
140-3 (B) not more than 90 miles from the development
140-4 in the community in which the development is located, if the
140-5 development is not located in a rural area.
140-6 (b) To be eligible for a housing tax credit allocation from
140-7 the nonprofit set-aside, a nonprofit organization must:
140-8 (1) control a majority of the development;
140-9 (2) if the organization's application is filed on
140-10 behalf of a limited partnership, be the managing general partner;
140-11 and
140-12 (3) otherwise meet the requirements of Section
140-13 42(h)(5), Internal Revenue Code of 1986 (26 U.S.C. Section
140-14 42(h)(5)).
140-15 Sec. 2306.6707. ADDITIONAL APPLICATION REQUIREMENT:
140-16 DISCLOSURE OF INTERESTED PERSONS. (a) The applicant must disclose
140-17 in the application the names of any persons, including affiliates
140-18 of those persons and related parties, providing developmental or
140-19 operational services to the development, including:
140-20 (1) a development owner;
140-21 (2) an architect;
140-22 (3) an attorney;
140-23 (4) a tax professional;
140-24 (5) a property management company;
140-25 (6) a consultant;
140-26 (7) a market analyst;
141-1 (8) a tenant services provider;
141-2 (9) a syndicator;
141-3 (10) a real estate broker or agent or a person
141-4 receiving a fee in connection with services usually provided by a
141-5 real estate broker or agent;
141-6 (11) at the time the application is submitted, the
141-7 owners of the property on which the development is located;
141-8 (12) a developer; and
141-9 (13) a builder or general contractor.
141-10 (b) For each person described by Subsection (a), the
141-11 application must disclose any company name, company contact person,
141-12 address, and telephone number.
141-13 Sec. 2306.6708. APPLICATION CHANGES OR SUPPLEMENTS.
141-14 (a) Except as provided by Subsection (b), an applicant may not
141-15 change or supplement an application in any manner after the filing
141-16 deadline.
141-17 (b) This section does not prohibit an applicant from:
141-18 (1) at the request of the department, clarifying
141-19 information in the application or correcting administrative
141-20 deficiencies in the application; or
141-21 (2) amending an application after allocation of
141-22 housing tax credits in the manner provided by Section 2306.6712.
141-23 Sec. 2306.6709. APPLICATION LOG. (a) In a form prescribed
141-24 by the department, the department shall maintain for each
141-25 application an application log that tracks the application from the
141-26 date of its submission.
142-1 (b) The application log must contain at least the following
142-2 information:
142-3 (1) the names of the applicant and related parties;
142-4 (2) the physical location of the development,
142-5 including the relevant region of the state;
142-6 (3) the amount of housing tax credits requested for
142-7 allocation by the department to the applicant;
142-8 (4) any set-aside category under which the application
142-9 is filed;
142-10 (5) the score of the application in each scoring
142-11 category adopted by the department under the qualified allocation
142-12 plan;
142-13 (6) any decision made by the department or board
142-14 regarding the application, including the department's decision
142-15 regarding whether to underwrite the application and the board's
142-16 decision regarding whether to allocate housing tax credits to the
142-17 development;
142-18 (7) the names of persons making the decisions
142-19 described by Subdivision (6), including the names of department
142-20 staff scoring and underwriting the application, to be recorded next
142-21 to the description of the applicable decision;
142-22 (8) the amount of housing tax credits allocated to the
142-23 development; and
142-24 (9) a dated record and summary of any contact between
142-25 the department staff, the board, and the applicant or any related
142-26 parties.
143-1 Sec. 2306.6710. EVALUATION AND UNDERWRITING OF APPLICATIONS.
143-2 (a) In evaluating an application, the department shall determine
143-3 whether the application satisfies the threshold criteria required
143-4 by the board in the qualified allocation plan. The department
143-5 shall reject and return to the applicant any application that fails
143-6 to satisfy the threshold criteria.
143-7 (b) If an application satisfies the threshold criteria, the
143-8 department shall score and rank the application using a point
143-9 system based on criteria that are adapted to regional market
143-10 conditions and adopted by the department, including criteria:
143-11 (1) regarding:
143-12 (A) the income levels of tenants of the
143-13 development;
143-14 (B) the rent levels of the units;
143-15 (C) the period of guaranteed affordability for
143-16 low income tenants;
143-17 (D) the cost by square foot of the development;
143-18 (E) the size, quality, and amenities of the
143-19 units;
143-20 (F) the services to be provided to tenants of
143-21 the development;
143-22 (G) the commitment of development funding by
143-23 local political subdivisions that enables additional units for
143-24 individuals and families of very low income; and
143-25 (H) the level of community support for the
143-26 application, evaluated on the basis of written statements of
144-1 support from local and state elected officials representing
144-2 constituents in areas that include the location of the development;
144-3 and
144-4 (2) imposing penalties on applicants or affiliates who
144-5 have requested extensions of department deadlines relating to
144-6 developments supported by housing tax credit allocations made in
144-7 the application round preceding the current round.
144-8 (c) The department shall publish in the qualified allocation
144-9 plan details of the scoring system used by the department to score
144-10 applications.
144-11 (d) The department shall underwrite the applications ranked
144-12 under Subsection (b) beginning with the applications with the
144-13 highest scores in each region described by Section 2306.111(d) and
144-14 in each set-aside category described in the qualified allocation
144-15 plan. Based on application rankings, the department shall continue
144-16 to underwrite applications until the department has processed
144-17 enough applications satisfying the department's underwriting
144-18 criteria to enable the allocation of all available housing tax
144-19 credits according to regional allocation goals and set-aside
144-20 categories. To enable the board to establish an applications
144-21 waiting list under Section 2306.6711, the department shall
144-22 underwrite as many additional applications as the board considers
144-23 necessary to ensure that all available housing tax credits are
144-24 allocated within the period required by law.
144-25 (e) In adopting criteria for scoring and underwriting
144-26 applications for purposes of housing tax credit allocations, the
145-1 department shall attach, consistent with Section 42, Internal
145-2 Revenue Code of 1986 (26 U.S.C. Section 42), the most weight to
145-3 criteria that will:
145-4 (1) result in an allocation of housing tax credits for
145-5 developments serving the lowest income tenants; and
145-6 (2) produce the greatest number of high quality units
145-7 committed to remaining affordable to qualified tenants for extended
145-8 periods.
145-9 Sec. 2306.6711. ALLOCATION OF HOUSING TAX CREDITS. (a) The
145-10 director shall provide the application scores to the board before
145-11 the 30th day preceding the date the board begins to issue
145-12 commitments for housing tax credits in the allocation round.
145-13 (b) Not later than the deadline specified in the qualified
145-14 allocation plan, the board shall issue commitments for available
145-15 housing tax credits based on the application evaluation process
145-16 provided by Section 2306.6710. The board may not allocate to an
145-17 applicant housing tax credits in any unnecessary amount, as
145-18 determined by the department's underwriting policy and by federal
145-19 law, and in any event may not allocate to the applicant housing tax
145-20 credits in an amount greater than $1.6 million in a single
145-21 application round.
145-22 (c) Concurrently with the initial issuance of commitments
145-23 for housing tax credits under Subsection (b), the board shall
145-24 establish a waiting list of additional applications ranked by score
145-25 in descending order of priority based on set-aside categories and
145-26 regional allocation goals.
146-1 (d) The board shall issue commitments for housing tax
146-2 credits with respect to applications on the waiting list as
146-3 additional credits become available.
146-4 (e) Not later than the 120th day after the date of the
146-5 initial issuance of commitments for housing tax credits under
146-6 Subsection (b), the department shall provide to an applicant who
146-7 did not receive a commitment under that subsection an opportunity
146-8 to meet and discuss with the department the application's
146-9 deficiencies and scoring.
146-10 Sec. 2306.6712. AMENDMENT OF APPLICATION SUBSEQUENT TO
146-11 ALLOCATION BY BOARD. (a) If a proposed modification would
146-12 materially alter a development approved for an allocation of a
146-13 housing tax credit, the department shall require the applicant to
146-14 file a formal, written amendment to the application on a form
146-15 prescribed by the department.
146-16 (b) The director shall require the department staff assigned
146-17 to underwrite applications to evaluate the amendment and provide an
146-18 analysis and written recommendation to the board. The appropriate
146-19 monitor under Section 2306.6719 shall also provide to the board an
146-20 analysis and written recommendation regarding the amendment.
146-21 (c) The board must vote on whether to approve the amendment.
146-22 The board by vote may reject an amendment and, if appropriate,
146-23 rescind the allocation of housing tax credits and reallocate the
146-24 credits to other applicants on the waiting list required by Section
146-25 2306.6711 if the board determines that the modification proposed in
146-26 the amendment:
147-1 (1) would materially alter the development in a
147-2 negative manner; or
147-3 (2) would have adversely affected the selection of the
147-4 application in the application round.
147-5 (d) Material alteration of a development includes:
147-6 (1) a significant modification of the site plan;
147-7 (2) a modification of the number of units or bedroom
147-8 mix of units;
147-9 (3) a substantive modification of the scope of tenant
147-10 services;
147-11 (4) a reduction of three percent or more in the square
147-12 footage of the units or common areas;
147-13 (5) a significant modification of the architectural
147-14 design of the development;
147-15 (6) a modification of the residential density of the
147-16 development of at least five percent; and
147-17 (7) any other modification considered significant by
147-18 the board.
147-19 (e) In evaluating the amendment under this subsection, the
147-20 department staff shall consider whether the need for the
147-21 modification proposed in the amendment was:
147-22 (1) reasonably foreseeable by the applicant at the
147-23 time the application was submitted; or
147-24 (2) preventable by the applicant.
147-25 (f) This section shall be administered in a manner that is
147-26 consistent with Section 42, Internal Revenue Code of 1986 (26
148-1 U.S.C. Section 42).
148-2 Sec. 2306.6713. HOUSING TAX CREDIT AND OWNERSHIP TRANSFERS.
148-3 (a) An applicant may not transfer an allocation of housing tax
148-4 credits or ownership of a development supported with an allocation
148-5 of housing tax credits to any person other than an affiliate unless
148-6 the applicant obtains the director's prior, written approval of the
148-7 transfer.
148-8 (b) The director may not unreasonably withhold approval of
148-9 the transfer.
148-10 (c) An applicant seeking director approval of a transfer and
148-11 the proposed transferee must provide to the department a copy of
148-12 any applicable agreement between the parties to the transfer,
148-13 including any third-party agreement with the department.
148-14 (d) On request, an applicant seeking director approval of a
148-15 transfer must provide to the department:
148-16 (1) a list of the names of transferees and related
148-17 parties; and
148-18 (2) detailed information describing the experience and
148-19 financial capacity of transferees and related parties.
148-20 (e) The development owner shall certify to the director that
148-21 the tenants in the development have been notified in writing of the
148-22 transfer before the 30th day preceding the date of submission of
148-23 the transfer request to the department.
148-24 (f) Not later than the fifth working day after the date the
148-25 department receives all necessary information under this section,
148-26 the department shall conduct a qualifications review of a
149-1 transferee to determine:
149-2 (1) the transferee's past compliance with all aspects
149-3 of the low income housing tax credit program, including land use
149-4 restriction agreements; and
149-5 (2) the sufficiency of the transferee's experience
149-6 with developments supported with housing tax credit allocations.
149-7 Sec. 2306.6714. AT-RISK DEVELOPMENT SET-ASIDE. (a) The
149-8 department shall set aside for at-risk developments not less than
149-9 15 percent of the housing tax credits available for allocation in
149-10 the calendar year.
149-11 (b) Any amount of housing tax credits set aside under this
149-12 section that remains after the initial allocation of housing tax
149-13 credits is available for allocation to any eligible applicant as
149-14 provided by the qualified allocation plan.
149-15 Sec. 2306.6715. APPEAL. (a) In a form prescribed by the
149-16 department in the qualified allocation plan, an applicant may
149-17 appeal the following decisions made by the department in the
149-18 application evaluation process provided by Section 2306.6710:
149-19 (1) a determination regarding the application's
149-20 satisfaction of threshold and underwriting criteria;
149-21 (2) the scoring of the application; and
149-22 (3) a recommendation as to the amount of housing tax
149-23 credits to be allocated to the application.
149-24 (b) An applicant may not appeal a decision made under
149-25 Section 2306.6710 regarding an application filed by another
149-26 applicant.
150-1 (c) An applicant must file a written appeal authorized by
150-2 this section with the department not later than the seventh day
150-3 after the date the department publishes the results of the
150-4 application evaluation process provided by Section 2306.6710. In
150-5 the appeal, the applicant must specifically identify the
150-6 applicant's grounds for appeal, based on the original application
150-7 and additional documentation filed with the original application.
150-8 (d) The director shall respond in writing to the appeal not
150-9 later than the 14th day after the date of receipt of the appeal.
150-10 If the applicant is not satisfied with the director's response to
150-11 the appeal, the applicant may appeal directly in writing to the
150-12 board, provided that an appeal filed with the board under this
150-13 subsection must be received by the board before:
150-14 (1) the seventh day preceding the date of the board
150-15 meeting at which the relevant allocation decision is expected to be
150-16 made; or
150-17 (2) the third day preceding the date of the board
150-18 meeting described by Subdivision (1), if the director does not
150-19 respond to the appeal before the date described by Subdivision (1).
150-20 (e) Board review of an appeal under Subsection (d) is based
150-21 on the original application and additional documentation filed with
150-22 the original application. The board may not review any information
150-23 not contained in or filed with the original application. The
150-24 decision of the board regarding the appeal is final.
150-25 Sec. 2306.6716. FEES. (a) A fee charged by the department
150-26 for filing an application may not be excessive and must reflect the
151-1 department's actual costs in processing the application, providing
151-2 copies of documents to persons connected with the application
151-3 process, and making appropriate information available to the public
151-4 through the department's website.
151-5 (b) The department shall publish not later than July 1 of
151-6 each year a schedule of application fees that specifies the amount
151-7 to be charged at each stage of the application process.
151-8 (c) In accordance with the fee schedule, the department
151-9 shall refund the balance of any fees collected for an application
151-10 that is withdrawn by the applicant or that is not fully processed
151-11 by the department. The department must provide the refund to the
151-12 applicant not later than the 30th day after the date the last
151-13 official action is taken with respect to the application.
151-14 (d) The department shall develop a sliding scale fee
151-15 schedule for applications that encourages increased participation
151-16 by community housing development organizations in the low income
151-17 housing tax credit program.
151-18 Sec. 2306.6717. PUBLIC INFORMATION AND HEARINGS.
151-19 (a) Subject to Section 2306.67041, the department shall make the
151-20 following items available on the department's website:
151-21 (1) as soon as practicable, any proposed application
151-22 submitted through the preapplication process established by this
151-23 subchapter;
151-24 (2) before the 30th day preceding the date of the
151-25 relevant board allocation decision, except as provided by
151-26 Subdivision (3), the entire application, including all supporting
152-1 documents and exhibits, the application log, a scoring sheet
152-2 providing details of the application score, and any other document
152-3 relating to the processing of the application;
152-4 (3) not later than the third working day after the
152-5 date of the relevant determination, the results of each stage of
152-6 the application process, including the results of the application
152-7 scoring and underwriting phases and the allocation phase;
152-8 (4) before the 15th day preceding the date of board
152-9 action on the amendment, notice of an amendment under Section
152-10 2306.6712 and the recommendation of the director and monitor
152-11 regarding the amendment; and
152-12 (5) an appeal filed with the department or board under
152-13 Section 2306.6715 or 2306.6721 and any other document relating to
152-14 the processing of the appeal.
152-15 (b) The department shall provide information regarding the
152-16 low income housing tax credit program, including notice regarding
152-17 public hearings, board meetings, and the opening and closing dates
152-18 for applications, to:
152-19 (1) local housing departments;
152-20 (2) newspapers;
152-21 (3) nonprofit organizations;
152-22 (4) on-site property managers of occupied developments
152-23 that are the subject of applications; and
152-24 (5) any other interested persons, including community
152-25 groups, who request the information.
152-26 (c) The department shall hold at least three public hearings
153-1 in different regions of the state to receive public comments on
153-2 applications and on other issues relating to the low income housing
153-3 tax credit program.
153-4 (d) Notwithstanding any other provision of this section, the
153-5 department may treat the financial statements of any applicant as
153-6 confidential and may elect not to disclose those statements to the
153-7 public.
153-8 Sec. 2306.6718. ELECTED OFFICIALS. (a) The department
153-9 shall provide written notice of the filing of an application to the
153-10 following elected officials:
153-11 (1) members of the legislature who represent the
153-12 community containing the development described in the application;
153-13 and
153-14 (2) the chief executive officer of the political
153-15 subdivision containing the development described in the
153-16 application.
153-17 (b) The department shall provide the elected officials with
153-18 an opportunity to comment on the application during the application
153-19 evaluation process provided by Section 2306.6710 and shall consider
153-20 those comments in evaluating applications under that section.
153-21 (c) A member of the legislature who represents the community
153-22 containing the development may hold a community meeting at which
153-23 the department shall provide appropriate representation.
153-24 (d) If the department receives written notice from the mayor
153-25 or county judge of an affected municipality or county opposing an
153-26 application, the department must contact the mayor or county judge
154-1 and offer to conduct a physical inspection of the development site
154-2 and consult with the mayor or county judge before the application
154-3 is scored.
154-4 Sec. 2306.6719. MONITORING OF COMPLIANCE. (a) The
154-5 department may contract with an independent third party to monitor
154-6 a development during its construction or rehabilitation and during
154-7 its operation for compliance with:
154-8 (1) any conditions imposed by the department in
154-9 connection with the allocation of housing tax credits to the
154-10 development; and
154-11 (2) appropriate state and federal laws, as required by
154-12 other state law or by the board.
154-13 (b) The department may assign department staff other than
154-14 housing tax credit division staff to perform the relevant
154-15 monitoring functions required by this section in the construction
154-16 or rehabilitation phase of a development.
154-17 Sec. 2306.6720. ENFORCEABILITY OF APPLICANT REPRESENTATIONS.
154-18 Each representation made by an applicant to secure a housing tax
154-19 credit allocation is enforceable by the department and the tenants
154-20 of the development supported with the allocation.
154-21 Sec. 2306.6721. DEBARMENT FROM PROGRAM PARTICIPATION.
154-22 (a) The board by rule shall adopt a policy providing for the
154-23 debarment of a person from participation in the low income housing
154-24 tax credit program as described by this section.
154-25 (b) The department may debar a person from participation in
154-26 the program on the basis of the person's past failure to comply
155-1 with any condition imposed by the department in connection with the
155-2 allocation of housing tax credits.
155-3 (c) The department shall debar a person from participation
155-4 in the program if the person:
155-5 (1) materially violates any condition imposed by the
155-6 department in connection with the allocation of housing tax
155-7 credits;
155-8 (2) is debarred from participation in federal housing
155-9 programs by the United States Department of Housing and Urban
155-10 Development; or
155-11 (3) is in material noncompliance with or has
155-12 repeatedly violated a land use restriction agreement regarding a
155-13 development supported with a housing tax credit allocation.
155-14 (d) A person debarred by the department from participation
155-15 in the program may appeal the person's debarment to the board.
155-16 Sec. 2306.6722. DEVELOPMENT ACCESSIBILITY. Any development
155-17 supported with a housing tax credit allocation shall comply with
155-18 the accessibility standards that are required under Section 504,
155-19 Rehabilitation Act of 1973 (29 U.S.C. Section 794), and specified
155-20 under 24 C.F.R. Part 8, Subpart C.
155-21 Sec. 2306.6723. DISCRIMINATION AGAINST PERSONS RECEIVING
155-22 FEDERAL HOUSING ASSISTANCE PROHIBITED. The department shall
155-23 prohibit a development supported with a housing tax credit
155-24 allocation from:
155-25 (1) excluding an individual or family from admission
155-26 to the development because the individual or family participates in
156-1 the housing choice voucher program under Section 8, United States
156-2 Housing Act of 1937 (42 U.S.C. Section 1437f); and
156-3 (2) using a financial or minimum income standard for
156-4 an individual or family participating in the voucher program
156-5 described by Subdivision (1) that requires the individual or family
156-6 to have a monthly income of more than 2-1/2 times the individual's
156-7 or family's share of the total monthly rent payable to the
156-8 development owner.
156-9 Sec. 2306.6724. COORDINATION WITH RURAL DEVELOPMENT AGENCY.
156-10 (a) The department shall jointly administer with the rural
156-11 development agency any set-aside for rural areas to:
156-12 (1) ensure the maximum use and optimum geographic
156-13 distribution of housing tax credits in rural areas; and
156-14 (2) provide for information sharing, efficient
156-15 procedures, and fulfillment of development compliance requirements
156-16 in rural areas.
156-17 (b) The rural development agency shall assist in developing
156-18 all threshold, scoring, and underwriting criteria applied to
156-19 applications eligible for the rural area set-aside. The criteria
156-20 must be approved by that agency.
156-21 (c) To ensure that the rural area set-aside receives a
156-22 sufficient volume of eligible applications, the department shall
156-23 fund and, with the rural development agency, shall jointly
156-24 implement outreach, training, and rural area capacity building
156-25 efforts as directed by the rural development agency.
156-26 (d) The department and the rural development agency shall
157-1 jointly adjust the regional allocation of housing tax credits
157-2 described by Section 2306.111 to offset the under-utilization and
157-3 over-utilization of multifamily private activity bonds and other
157-4 housing resources in the different regions of the state.
157-5 (e) From application fees collected under this subchapter,
157-6 the department shall reimburse the rural development agency for any
157-7 costs incurred by the agency in carrying out the functions required
157-8 by this section.
157-9 Sec. 2306.6725 [2306.671]. DEADLINES FOR ALLOCATION OF LOW
157-10 INCOME HOUSING TAX CREDITS. (a) Not later than September 30
157-11 [November 15] of each year, the department shall prepare and submit
157-12 to the board for adoption the qualified allocation plan required by
157-13 federal law for use by the department in setting criteria and
157-14 priorities for the allocation of tax credits under the low income
157-15 housing tax credit program.
157-16 (b) The board shall adopt and submit to the governor the
157-17 qualified allocation plan not later than November 15 [January 31].
157-18 (c) The governor shall approve, reject, or modify and
157-19 approve the qualified allocation plan not later than December 1
157-20 [February 28].
157-21 (d) An applicant for a low income housing tax credit to be
157-22 issued a commitment during the initial allocation cycle in a
157-23 calendar year must submit an application to the department not
157-24 later than March 1 [May 15].
157-25 (e) The board shall review the recommendations of department
157-26 staff regarding applications and shall issue a list of approved
158-1 applications [issue a commitment for allocation for the initial
158-2 cycle of low income housing tax credits] each year in accordance
158-3 with the qualified allocation plan not later than June 30 [July
158-4 31].
158-5 (f) The board shall issue final commitments for allocations
158-6 of housing tax credits each year in accordance with the qualified
158-7 allocation plan not later than July 31.
158-8 Sec. 2306.6726 [2306.672]. SCORING OF APPLICATIONS.
158-9 (a) [The goal of the low income housing tax credit program is to
158-10 provide permanent affordable housing.] In allocating low income
158-11 housing tax credits, the department shall score each application
158-12 using a point system based on criteria adopted by the department
158-13 that are consistent with the department's housing goals, including
158-14 criteria addressing the ability of the proposed project to:
158-15 (1) provide quality social support services to
158-16 residents;
158-17 (2) demonstrate community and neighborhood support as
158-18 defined by the qualified allocation plan;
158-19 (3) consistent with sound underwriting practices and
158-20 when economically feasible, serve individuals and families of
158-21 extremely low income by leveraging private and state and federal
158-22 resources, including federal HOPE VI grants received through the
158-23 United States Department of Housing and Urban Development;
158-24 (4) serve traditionally underserved areas;
158-25 (5) remain affordable to qualified tenants for an
158-26 extended, economically feasible period; and
159-1 (6) comply with the accessibility standards that are
159-2 required under Section 504, Rehabilitation Act of 1973 (29 U.S.C.
159-3 Section 794), and specified under 24 C.F.R. Part 8, Subpart C.
159-4 [The department shall publish in the qualified allocation plan any
159-5 discretionary factor that the department will consider in scoring
159-6 an application.]
159-7 (b) The department shall provide appropriate incentives as
159-8 determined through the qualified allocation plan to reward
159-9 applicants who agree to equip the property that is the basis of the
159-10 application with energy saving devices that meet the standards
159-11 established by the state energy conservation office or [If an
159-12 applicant meets the department's scoring and underwriting criteria,
159-13 the department shall add:]
159-14 [(1) five bonus points to the applicant's score if the
159-15 applicant agrees] to provide to a qualified nonprofit organization
159-16 or tenant organization a right of first refusal to purchase the
159-17 property [to which the tax credit applies] at the minimum price
159-18 provided in, and in accordance with the requirements of, Section
159-19 42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
159-20 42(i)(7))[; and]
159-21 [(2) two bonus points to the applicant's score if the
159-22 application is received within the first 10 days of the application
159-23 acceptance period].
159-24 (c) On [The department shall provide the score of each
159-25 application on each criterion to the board and the governor. The
159-26 results of the scoring shall be available to the public.]
160-1 [(d) Upon] awarding tax credit allocations, the board shall
160-2 document the reasons for each project's selection, including an
160-3 explanation of:
160-4 (1) all discretionary factors used in making its
160-5 determination; and
160-6 (2) the reasons for any decision that conflicts with
160-7 the recommendations of department staff under Section 2306.6751.
160-8 (d) For each scoring criterion, the department shall use a
160-9 range of points to evaluate the degree to which a proposed project
160-10 satisfies the criterion. The department may not award a number of
160-11 points for a scoring criterion that is disproportionate to the
160-12 degree to which a proposed project complies with that criterion.
160-13 Sec. 2306.6727 [2306.673]. SALE OF CERTAIN LOW INCOME
160-14 HOUSING TAX CREDIT PROPERTY. (a) Not later than two years before
160-15 the expiration of the compliance period, a recipient of a low
160-16 income housing tax credit who agreed to provide a right of first
160-17 refusal under Section 2306.6726 [2306.672(b)(1)] and who intends to
160-18 sell the property shall notify the department of the recipient's
160-19 intent to sell. The recipient shall notify qualified nonprofit
160-20 organizations and tenant organizations of the opportunity to
160-21 purchase the property.
160-22 (b) The recipient may:
160-23 (1) during the first six-month period after notifying
160-24 the department, negotiate or enter into a purchase agreement only
160-25 with a qualified nonprofit organization that is also a community
160-26 housing development organization as defined by the federal home
161-1 investment partnership program;
161-2 (2) during the second six-month period after notifying
161-3 the department, negotiate or enter into a purchase agreement with
161-4 any qualified nonprofit organization or tenant organization; and
161-5 (3) during the year before the expiration of the
161-6 compliance period, negotiate or enter into a purchase agreement
161-7 with the department or any qualified nonprofit organization or
161-8 tenant organization approved by the department.
161-9 (c) Notwithstanding an agreement under Section 2306.6726
161-10 [2306.672(b)(1)], a recipient of a low income housing tax credit
161-11 may sell property to which the tax credit applies to any purchaser
161-12 after the expiration of the compliance period if a qualified
161-13 nonprofit organization or tenant organization does not offer to
161-14 purchase the property at the minimum price provided by Section
161-15 42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
161-16 42(i)(7)), and the department declines to purchase the property.
161-17 (d) In this section, "compliance period" has the meaning
161-18 assigned by Section 42(i)(1), Internal Revenue Code of 1986 (26
161-19 U.S.C. Section 42(i)(1)).
161-20 Sec. 2306.6728 [2306.674]. DEPARTMENT PURCHASE OF LOW INCOME
161-21 HOUSING TAX CREDIT PROPERTY. The board by rule may develop and
161-22 implement a program to purchase low income housing tax credit
161-23 property that is not purchased by a qualified nonprofit
161-24 organization or tenant organization. The department may not
161-25 purchase low income housing tax credit property if the board finds
161-26 that the purchase is not in the best interest of the state.
162-1 Sec. 2306.6751 [2306.675]. ALLOCATION DECISION; REEVALUATION
162-2 [OF LOW INCOME HOUSING TAX CREDIT]. (a) Department staff shall
162-3 provide written, documented recommendations to the board concerning
162-4 the financial or programmatic viability of each application for a
162-5 low income housing tax credit before the board makes a decision
162-6 relating to the allocation of tax credits. The board may not make
162-7 without good cause an allocation decision that conflicts with the
162-8 recommendations of department staff.
162-9 (b) Regardless of project stage, the board must reevaluate a
162-10 project that undergoes a substantial change between the time of
162-11 initial board approval of the project and the time of issuance of a
162-12 tax credit commitment for the project. The board may revoke any
162-13 tax credit commitment issued for a project that has been
162-14 unfavorably reevaluated by the board under this subsection. [Not
162-15 later than the deadline specified in Section 2306.671(e), the board
162-16 shall issue a commitment for tax credits available to the
162-17 department. Concurrently with the issuance of a commitment for
162-18 initial tax credits, the board shall establish a waiting list of
162-19 additional applications, ranked in descending order of priority, to
162-20 be issued a commitment for tax credits if additional credits become
162-21 available.]
162-22 [Sec. 2306.676. EQUAL ACCESS TO PROGRAM. The department
162-23 shall establish procedures through the qualified allocation plan to
162-24 ensure that each applicant for a low income housing tax credit has
162-25 a fair and equal opportunity to submit or resubmit an application
162-26 and submit for consideration any authorized supplementary materials
163-1 and information.]
163-2 [Sec. 2306.677. FEES. (a) A fee charged by the department
163-3 to an applicant for a low income housing tax credit may not be
163-4 excessive and must reflect the department's actual costs in
163-5 processing applications and providing copies of documents in
163-6 connection with the allocation process.]
163-7 [(b) The department shall refund a fee charged to an
163-8 applicant if the department does not score the applicant's
163-9 application, except the department may retain a reasonable portion
163-10 of the fee to compensate the department for costs associated with
163-11 the application.]
163-12 Sec. 2306.6781 [2306.678]. PUBLIC INFORMATION [AND HEARINGS
163-13 ON PROGRAM]. [(a)] The department shall provide information
163-14 regarding the low income housing tax credit program, including
163-15 notices of public hearings, meetings, and opening and closing dates
163-16 for applications for a low income housing tax credit, to local
163-17 housing departments, any appropriate newspapers of general or
163-18 limited circulation that serve the community in which the proposed
163-19 project is to be located, nonprofit organizations, on-site property
163-20 managers of occupied projects that are the subject of tax credit
163-21 applications for posting in prominent locations at those projects,
163-22 and any other interested persons and community groups[,] who
163-23 request the information. The department shall also publish the
163-24 information on the department's website.
163-25 Sec. 2306.6782. REPRESENTATION BY FORMER BOARD MEMBER OR
163-26 OTHER PERSON. (a) A former board member or a former director,
164-1 deputy director, director of housing programs, or low income
164-2 housing tax credit program manager employed by the department may
164-3 not:
164-4 (1) for compensation, represent an applicant for an
164-5 allocation of low income housing tax credits or a related party
164-6 before the second anniversary of the date that the board member's,
164-7 director's, or manager's service in office or employment with the
164-8 department ceases;
164-9 (2) represent any applicant or related party or
164-10 receive compensation for services rendered on behalf of any
164-11 applicant or related party regarding the consideration of a housing
164-12 tax credit application in which the former board member, director,
164-13 or manager participated during the period of service in office or
164-14 employment with the department, either through personal involvement
164-15 or because the matter was within the scope of the board member's,
164-16 director's, or manager's official responsibility; or
164-17 (3) for compensation, communicate directly with a
164-18 member of the legislative branch to influence legislation on behalf
164-19 of an applicant or related party before the second anniversary of
164-20 the date that the board member's, director's, or manager's service
164-21 in office or employment with the department ceases.
164-22 (b) A person commits an offense if the person violates this
164-23 section. An offense under this section is a Class A misdemeanor.
164-24 Sec. 2306.6791. MINORITY-OWNED BUSINESSES. (a) The
164-25 department shall require a person who receives an allocation of
164-26 housing tax credits to attempt to ensure that at least 30 percent
165-1 of the construction and management businesses with which the person
165-2 contracts in connection with the development are minority-owned
165-3 businesses.
165-4 (b) A person who receives an allocation of housing tax
165-5 credits must report to the department not less than once in each
165-6 90-day period following the date of allocation regarding the
165-7 percentage of businesses with which the person has contracted that
165-8 qualify as minority-owned businesses.
165-9 (c) In this section:
165-10 (1) "Minority-owned business" means a business entity
165-11 at least 51 percent of which is owned by members of a minority
165-12 group or, in the case of a corporation, at least 51 percent of the
165-13 shares of which are owned by members of a minority group, and that
165-14 is managed and controlled by members of a minority group in its
165-15 daily operations.
165-16 (2) "Minority group" includes:
165-17 (A) women;
165-18 (B) African Americans;
165-19 (C) American Indians;
165-20 (D) Asian Americans; and
165-21 (E) Mexican Americans and other Americans of
165-22 Hispanic origin.
165-23 [(b) The department shall hold at least three public
165-24 hearings in different regions of the state to receive public
165-25 comments on low income housing tax credit applications.]
165-26 SECTION 8.02. The change in law made by this Act in adding
166-1 Section 2306.6724, Government Code, applies only to a development
166-2 for which an application for an allocation of low income housing
166-3 tax credits is received by the Texas Department of Housing and
166-4 Community Affairs on or after August 10, 1993.
166-5 ARTICLE 9
166-6 SECTION 9.01. This Act takes effect September 1, 2001.