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; providing a penalty.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 ARTICLE 1
1-8 SECTION 1.01. Section 2306.001, Government Code, is amended
1-9 to read as follows:
1-10 Sec. 2306.001. PURPOSES. The purposes of the department are
1-11 to:
1-12 (1) assist local governments in:
1-13 (A) providing essential public services for
1-14 their residents; and
1-15 (B) overcoming financial, social, and
1-16 environmental problems;
1-17 (2) provide for the housing needs of individuals and
1-18 families of low, [and] very low, and extremely low income and
1-19 families of moderate income;
1-20 (3) contribute to the preservation, development, and
1-21 redevelopment of neighborhoods and communities, including
1-22 cooperation in the preservation of government-assisted housing
1-23 occupied by individuals and families of very low and extremely low
1-24 income;
1-25 (4) assist the governor and the legislature in
2-1 coordinating federal and state programs affecting local government;
2-2 [and]
2-3 (5) inform state officials and the public of the needs
2-4 of local government; and
2-5 (6) serve as a source of information to the public
2-6 regarding all affordable housing resources and community support
2-7 services in the state.
2-8 SECTION 1.02. Subsection (b), Section 2306.021, Government
2-9 Code, is amended to read as follows:
2-10 (b) The department is composed of:
2-11 (1) the community affairs division;
2-12 (2) the housing finance division;
2-13 (3) the manufactured housing division;
2-14 (4) the community development division; and
2-15 (5) any other division created by the director under
2-16 Section 2306.0521.
2-17 SECTION 1.03. Subchapter B, Chapter 2306, Government Code,
2-18 is amended by amending Sections 2306.022, 2306.024, 2306.025,
2-19 2306.027, 2306.033, 2306.034, and 2306.035 and adding Section
2-20 2306.028 to read as follows:
2-21 Sec. 2306.022. APPLICATION OF SUNSET ACT. The Texas
2-22 Department of Housing and Community Affairs is subject to Chapter
2-23 325 (Texas Sunset Act). Unless continued in existence as provided
2-24 by that chapter, the department is abolished and this chapter
2-25 expires September 1, 2003 [2001].
2-26 Sec. 2306.024. BOARD MEMBERS: APPOINTMENT AND COMPOSITION.
3-1 The board consists of seven public [nine] members appointed by the
3-2 governor.
3-3 Sec. 2306.025. TERMS OF BOARD MEMBERS. Members of the board
3-4 hold office for staggered terms of six years, with the terms of two
3-5 or three members expiring on January 31 of each odd-numbered year.
3-6 Sec. 2306.027. ELIGIBILITY. (a) The governor shall appoint
3-7 [make appointments] to the board public members who have a
3-8 demonstrated interest in issues related to housing and community
3-9 support services. A person appointed to the board must be a
3-10 registered voter in the state and may not hold another public
3-11 office [as follows:]
3-12 [(1) Place 1: an individual representing lending
3-13 institutions;]
3-14 [(2) Place 2: an individual representing local
3-15 government;]
3-16 [(3) Place 3: an individual representing housing
3-17 construction;]
3-18 [(4) Place 4: an individual representing
3-19 community-based nonprofit housing organizations;]
3-20 [(5) Place 5: an individual representing realtors or
3-21 housing developers;]
3-22 [(6) Place 6: an individual representing individuals
3-23 and families of low or very low income; and]
3-24 [(7) Places 7 through 9: public members].
3-25 (b) Appointments [Except as necessary to comply with the
3-26 requirements of Section 2306.026 regarding diversity, appointments]
4-1 to the board shall be made without regard to the race, color,
4-2 disability [handicap], sex, religion, age, or national origin of
4-3 the appointees and shall be made in a manner that produces
4-4 representation on the board of the different geographical regions
4-5 of this state. Appointments to the board must broadly reflect the
4-6 geographic, economic, cultural, and social diversity of the state,
4-7 including ethnic minorities, persons with disabilities, and women.
4-8 (c) A person may not be a member of the board if the person
4-9 or the person's spouse:
4-10 (1) is employed by or participates in the management
4-11 of a business entity or other organization regulated by or
4-12 receiving money from the department;
4-13 (2) owns or controls, directly or indirectly, more
4-14 than a 10 percent interest in a business entity or other
4-15 organization regulated by or receiving money from the department;
4-16 or
4-17 (3) uses or receives a substantial amount of tangible
4-18 goods, services, or money from the department other than
4-19 compensation or reimbursement authorized by law for board
4-20 membership, attendance, or expenses [An elected or appointed
4-21 official of a political subdivision appointed to Place 2 on the
4-22 board is a member of the board as an additional or ex officio duty
4-23 required by the member's other official capacity, and the member's
4-24 service on the board is not dual office holding].
4-25 Sec. 2306.028. TRAINING. (a) A person who is appointed to
4-26 and qualifies for office as a member of the board may not vote,
5-1 deliberate, or be counted as a member in attendance at a meeting of
5-2 the board until the person completes a training program that
5-3 complies with this section.
5-4 (b) The training program must provide the person with
5-5 information regarding:
5-6 (1) the legislation that created the department and
5-7 the board;
5-8 (2) the programs operated by the department;
5-9 (3) the role and functions of the department;
5-10 (4) the rules of the department, with an emphasis on
5-11 the rules that relate to disciplinary and investigatory authority;
5-12 (5) the current budget for the department;
5-13 (6) the results of the most recent formal audit of the
5-14 department;
5-15 (7) the requirements of:
5-16 (A) the open meetings law, Chapter 551;
5-17 (B) the public information law, Chapter 552;
5-18 (C) the administrative procedure law, Chapter
5-19 2001; and
5-20 (D) other laws relating to public officials,
5-21 including conflict-of-interest laws;
5-22 (8) the requirements of:
5-23 (A) state and federal fair housing laws,
5-24 including Chapter 301, Property Code, Title VIII of the Civil
5-25 Rights Act of 1968 (42 U.S.C. Section 3601 et seq.), and the Fair
5-26 Housing Amendments Act of 1988 (42 U.S.C. Section 3601 et seq.);
6-1 (B) the Civil Rights Act of 1964 (42 U.S.C.
6-2 Section 2000a et seq.);
6-3 (C) the Americans with Disabilities Act of 1990
6-4 (42 U.S.C. Section 12101 et seq.); and
6-5 (D) the Rehabilitation Act of 1973 (29 U.S.C.
6-6 Section 701 et seq.); and
6-7 (9) any applicable ethics policies adopted by the
6-8 department or the Texas Ethics Commission.
6-9 (c) A person appointed to the board is entitled to
6-10 reimbursement, as provided by the General Appropriations Act, for
6-11 the travel expenses incurred in attending the training program
6-12 regardless of whether the attendance at the program occurs before
6-13 or after the person qualifies for office.
6-14 Sec. 2306.033. REMOVAL OF MEMBERS. (a) It is a ground for
6-15 removal from the board that a member:
6-16 (1) does not have at the time of taking office
6-17 [appointment] the qualifications required by Section [2306.026,]
6-18 2306.027[, or 2306.028 for appointment to the board];
6-19 (2) does not maintain during [the] service on the
6-20 board the qualifications required by Section [2306.026,] 2306.027[,
6-21 or 2306.028 for appointment to the board];
6-22 (3) is ineligible for membership under [violates a
6-23 prohibition established by] Section 2306.027(c), 2306.034, or
6-24 2306.035;
6-25 (4) cannot, because of illness or disability,
6-26 discharge the member's duties for a substantial part of the
7-1 member's term [for which the member is appointed because of illness
7-2 or disability];
7-3 (5) is absent from more than half of the regularly
7-4 scheduled board meetings [of the board] that the member is eligible
7-5 to attend during a calendar year without an excuse approved [unless
7-6 the absence is excused] by a majority vote of the board; or
7-7 (6) engages in misconduct or unethical or criminal
7-8 behavior.
7-9 (b) The validity of an action of the board is not affected
7-10 by the fact that it is taken when a ground for removal of a board
7-11 member exists.
7-12 (c) If the director has knowledge that a potential ground
7-13 for removal exists, the director shall notify the presiding officer
7-14 of the board of the potential ground. The presiding officer shall
7-15 then notify the governor and the attorney general that a potential
7-16 ground for removal exists. If the potential ground for removal
7-17 involves the presiding officer, the director shall notify the next
7-18 highest ranking officer of the board, who shall then notify the
7-19 governor and the attorney general that a potential ground for
7-20 removal exists.
7-21 Sec. 2306.034. DISQUALIFICATION OF MEMBERS AND CERTAIN
7-22 EMPLOYEES. (a) In [An employee or paid consultant of a Texas
7-23 trade association in the field of banking, real estate, housing
7-24 development, or housing construction may not be a member of the
7-25 board or an employee of the department who is exempt from the
7-26 state's position classification plan or is compensated at or above
8-1 the amount prescribed by the General Appropriations Act for step 1,
8-2 salary group 17, of the position classification salary schedule.]
8-3 [(b) For the purposes of] this section, [a] "Texas trade
8-4 association" means [is] a [nonprofit,] cooperative[,] and
8-5 voluntarily joined association of business or professional
8-6 competitors in this state designed to assist its members and its
8-7 industry or profession in dealing with mutual business or
8-8 professional problems and in promoting their common interest.
8-9 (b) A person may not be a member of the board and may not be
8-10 a department employee employed in a "bona fide executive,
8-11 administrative, or professional capacity," as that phrase is used
8-12 for purposes of establishing an exemption to the overtime
8-13 provisions of the federal Fair Labor Standards Act of 1938 (29
8-14 U.S.C. Section 201 et seq.) if:
8-15 (1) the person is an officer, employee, or paid
8-16 consultant of a Texas trade association in the field of banking,
8-17 real estate, housing development, or housing construction; or
8-18 (2) the person's spouse is an officer, manager, or
8-19 paid consultant of a Texas trade association in the field of
8-20 banking, real estate, housing development, or housing construction.
8-21 Sec. 2306.035. LOBBYIST RESTRICTION. A person may not be
8-22 [serve as] a member of the board or act as the director of the
8-23 department or the general counsel to the board or the department if
8-24 the person is required to register as a lobbyist under Chapter 305
8-25 because of the person's activities for compensation [in or] on
8-26 behalf of a profession related to the operation of the department.
9-1 SECTION 1.04. Subsection (a), Section 2306.030, Government
9-2 Code, is amended to read as follows:
9-3 (a) The governor shall designate a member of [appoint a
9-4 presiding officer from] the board as the presiding officer of the
9-5 board to serve in that capacity at the will of the governor
9-6 [members]. The presiding officer presides at meetings of the board
9-7 and performs other duties required by this chapter.
9-8 SECTION 1.05. Section 2306.032, Government Code, is amended
9-9 by adding Subsections (c) through (g) to read as follows:
9-10 (c) All materials in the possession of the department that
9-11 are relevant to a matter proposed for discussion at a board meeting
9-12 must be posted on the department's website, made available in
9-13 hard-copy format at the department, filed with the secretary of
9-14 state for publication by reference in the Texas Register, and
9-15 disseminated by any other means required by this chapter or by
9-16 Chapter 551.
9-17 (d) The materials described by Subsection (c) must be made
9-18 available to the public as required by Subsection (c) not later
9-19 than the seventh day before the date of the meeting. The board may
9-20 not consider at the meeting any material that is not made available
9-21 to the public by the date required by this subsection.
9-22 (e) The agenda for a board meeting must state each project
9-23 the staff is recommending for assistance by the department.
9-24 (f) For each item on the board's agenda at the meeting, the
9-25 board shall provide for public comment after the presentation made
9-26 by department staff and the motions made by the board on that
10-1 topic.
10-2 (g) The board shall adopt rules that give the public a
10-3 reasonable amount of time for testimony at meetings.
10-4 SECTION 1.06. Subchapter B, Chapter 2306, Government Code,
10-5 is amended by adding Section 2306.0321 to read as follows:
10-6 Sec. 2306.0321. APPEAL OF BOARD AND DEPARTMENT DECISIONS.
10-7 (a) The board shall adopt rules outlining a formal process for
10-8 appealing board and department decisions.
10-9 (b) The rules must specify the requirements for appealing a
10-10 board or department decision, including:
10-11 (1) the persons eligible to appeal;
10-12 (2) the grounds for an appeal;
10-13 (3) the process for filing an appeal, including the
10-14 information that must be submitted with an appeal;
10-15 (4) a reasonable period in which an appeal must be
10-16 filed, heard, and decided;
10-17 (5) the process by which an appeal is heard and a
10-18 decision is made;
10-19 (6) the possible outcomes of an appeal; and
10-20 (7) the process by which notification of a decision
10-21 and the basis for a decision is given.
10-22 SECTION 1.07. Subchapter C, Chapter 2306, Government Code,
10-23 is amended by adding Sections 2306.051, 2306.0521, and 2306.057 to
10-24 read as follows:
10-25 Sec. 2306.051. SEPARATION OF RESPONSIBILITIES. The board
10-26 shall develop and implement policies that clearly separate the
11-1 policy-making responsibilities of the board and the management
11-2 responsibilities of the director and staff of the department.
11-3 Sec. 2306.0521. ORGANIZATIONAL FLEXIBILITY OF DEPARTMENT.
11-4 (a) Notwithstanding Section 2306.021(b) or any other provision of
11-5 this chapter, the director, with the approval of the board, may:
11-6 (1) create divisions in addition to those listed in
11-7 Section 2306.021(b) and assign to the newly created divisions any
11-8 duties and powers imposed on or granted to an existing division or
11-9 the department generally;
11-10 (2) eliminate any division listed in Section
11-11 2306.021(b) or created under this section and assign any duties or
11-12 powers previously assigned to the eliminated division to another
11-13 division listed in Section 2306.021(b) or created under this
11-14 section; or
11-15 (3) eliminate all divisions listed in Section
11-16 2306.021(b) or created under this section and reorganize the
11-17 distribution of powers and duties granted to or imposed on a
11-18 division in any manner the director determines appropriate for the
11-19 proper administration of the department.
11-20 (b) This section does not apply to the manufactured housing
11-21 division.
11-22 Sec. 2306.057. COMPLIANCE ASSESSMENT REQUIRED FOR PROJECT
11-23 APPROVAL BY BOARD. (a) Before the board approves any project
11-24 application submitted under this chapter, the department, through
11-25 the division with responsibility for compliance matters, shall:
11-26 (1) assess:
12-1 (A) the compliance history of the applicant and
12-2 any affiliate of the applicant with respect to all applicable
12-3 requirements; and
12-4 (B) the compliance issues associated with the
12-5 proposed project; and
12-6 (2) provide to the board a written report regarding
12-7 the results of the assessments described by Subdivision (1).
12-8 (b) The written report described by Subsection (a)(2) must
12-9 be included in the appropriate project file for board and
12-10 department review.
12-11 (c) The board shall fully document and disclose any
12-12 instances in which the board approves a project application despite
12-13 any noncompliance associated with the project, applicant, or
12-14 affiliate.
12-15 SECTION 1.08. Section 2306.052, Government Code, is amended
12-16 by amending Subsection (c) and adding Subsections (e) and (f) to
12-17 read as follows:
12-18 (c) The director shall develop and implement the policies
12-19 established by the board that define the responsibilities of each[:]
12-20 [(1) the director, board, and staff of the department;
12-21 and]
12-22 [(2) the community affairs division, the housing
12-23 finance division, and any other] division in the department.
12-24 (e) The board shall adopt rules and the director shall
12-25 develop and implement a program to train employees on the public
12-26 information requirements of Chapter 552. The director shall
13-1 monitor the compliance of employees with those requirements.
13-2 (f) The director shall use existing department resources to
13-3 provide the board with any administrative support necessary for the
13-4 board to exercise its duties regarding the implementation of this
13-5 chapter, including:
13-6 (1) assigning personnel to assist the board;
13-7 (2) providing office space, equipment, and documents
13-8 and other information to the board; and
13-9 (3) making in-house legal counsel available to the
13-10 board.
13-11 SECTION 1.09. Subchapter D, Chapter 2306, Government Code,
13-12 is amended by amending Section 2306.061 and adding Sections
13-13 2306.0631 and 2306.081 to read as follows:
13-14 Sec. 2306.061. STANDARDS OF [INFORMATION ON QUALIFICATIONS
13-15 AND] CONDUCT. The director or the director's designee shall become
13-16 aware of and provide to members of the board [members] and to [the]
13-17 department employees, as often as necessary, information regarding
13-18 the requirements [about the director's, members', and employees':]
13-19 [(1) qualifications] for office or employment under
13-20 this chapter, including information regarding a person's[; and]
13-21 [(2)] responsibilities under applicable laws relating
13-22 to standards of conduct for state officers or employees.
13-23 Sec. 2306.0631. STATE EMPLOYEE INCENTIVE PROGRAM. The
13-24 director or the director's designee shall provide to department
13-25 employees information and training on the benefits and methods of
13-26 participation in the state employee incentive program under
14-1 Subchapter B, Chapter 2108.
14-2 Sec. 2306.081. PROJECT COMPLIANCE; DATABASE. (a) The
14-3 department, through the division with responsibility for compliance
14-4 matters, shall monitor for compliance with all applicable
14-5 requirements the entire construction phase associated with any
14-6 project under this chapter. The monitoring level for each project
14-7 must be based on the amount of risk associated with the project.
14-8 (b) After completion of a project's construction phase, the
14-9 department shall periodically review the performance of the project
14-10 to confirm the accuracy of the department's initial compliance
14-11 evaluation during the construction phase.
14-12 (c) The department shall use the division responsible for
14-13 credit underwriting matters and the division responsible for
14-14 compliance matters to determine the amount of risk associated with
14-15 each project.
14-16 (d) The department shall create an easily accessible
14-17 database that contains all project compliance information developed
14-18 under this chapter.
14-19 SECTION 1.10. Subsections (b) and (c), Section 2306.066,
14-20 Government Code, are amended to read as follows:
14-21 (b) The department shall maintain a [keep an information]
14-22 file on [about] each written complaint filed with the department
14-23 [that the department has authority to resolve]. The file must
14-24 include:
14-25 (1) the name of the person who filed the complaint;
14-26 (2) the date the complaint is received by the
15-1 department;
15-2 (3) the subject matter of the complaint;
15-3 (4) the name of each person contacted in relation to
15-4 the complaint;
15-5 (5) a summary of the results of the review or
15-6 investigation of the complaint; and
15-7 (6) an explanation of the reason the file was closed,
15-8 if the department closed the file without taking action other than
15-9 to investigate the complaint.
15-10 (c) The department shall provide to the person filing the
15-11 complaint and to each person who is a subject of the complaint a
15-12 copy of the department's policies and procedures relating to
15-13 complaint investigation and resolution. The [If a written
15-14 complaint is filed with the department that the department has
15-15 authority to resolve, the] department, at least quarterly [and]
15-16 until final disposition of the complaint, shall notify the person
15-17 filing the complaint and each person who is a subject of [parties
15-18 to] the complaint of the status of the investigation [complaint]
15-19 unless the notice would jeopardize an undercover investigation.
15-20 SECTION 1.11. Section 2306.0661, Government Code, is amended
15-21 to read as follows:
15-22 Sec. 2306.0661. PUBLIC HEARINGS. (a) Except as provided by
15-23 Subsection (b), this [This] section applies only to state-funded
15-24 housing programs, programs funded with bond proceeds, the low
15-25 income housing tax credit program, and the state low income housing
15-26 plan. Federally funded programs shall comply with the federal
16-1 public participation requirements and Chapter 2105, if applicable.
16-2 (b) The department shall encourage informed and effective
16-3 public participation in the department's programs and plans by
16-4 [through] holding, on at least an annual basis in each uniform
16-5 service region of the state, a consolidated public hearing in which
16-6 the department solicits and accepts public comments regarding the
16-7 following programs:
16-8 (1) the housing trust fund program;
16-9 (2) the HOME investment partnerships program;
16-10 (3) the single-family housing mortgage revenue bond
16-11 program;
16-12 (4) the multifamily housing mortgage revenue bond
16-13 program;
16-14 (5) the low income housing tax credit program;
16-15 (6) the low income energy assistance program;
16-16 (7) any other program in the consolidated plan
16-17 submitted to the United States Department of Housing and Urban
16-18 Development; and
16-19 (8) any other program in the state low income housing
16-20 plan [hearings and soliciting and accepting public comments during
16-21 those hearings].
16-22 (c) In holding a public hearing, the department shall ensure
16-23 that:
16-24 (1) the location of the hearing is:
16-25 (A) in a public building or facility accessible
16-26 to the public;
17-1 (B) accessible to persons with disabilities; and
17-2 (C) reasonably accessible by public
17-3 transportation, if available;
17-4 (2) hearings are scheduled at times when working and
17-5 nonworking people can attend; and
17-6 (3) child care is provided where practical.
17-7 (d) [(c)] In scheduling a public hearing, the department
17-8 shall:
17-9 (1) publish notice of the time, place, and subject of
17-10 the hearing in the Texas Register and a newspaper of general
17-11 circulation in the community in which the hearing is to be held at
17-12 least seven days before the date of the hearing. Whenever
17-13 practical, the department shall publish notice of the time, place,
17-14 and subject of the hearing in the Texas Register and a newspaper of
17-15 general circulation in the community in which the hearing is to be
17-16 held at least thirty days before the date of the hearing;
17-17 (2) provide notice of the hearing to each public
17-18 library, in the community in which the hearing is to be held, for
17-19 posting in a public area of the library;
17-20 (3) provide notice of the hearing to:
17-21 (A) each member of the board;
17-22 (B) each member of the advisory committee
17-23 consulted by the department during preparation of the state low
17-24 income housing plan; and
17-25 (C) each member of the legislature;
17-26 (4) [make a reasonable effort to inform interested
18-1 persons and organizations of the hearing;]
18-2 [(5)] make information about the hearing, including,
18-3 if appropriate, the qualified allocation plan, application forms
18-4 for a low income housing tax credit, and the state low income
18-5 housing plan, available on the Internet in accordance with
18-6 Subsection (e) and with Section 2306.077; and
18-7 (5) [(6)] provide an opportunity for persons to
18-8 transmit on the Internet written testimony or comments on a subject
18-9 of a hearing in accordance with rules adopted by the board.
18-10 (e) At least one week before the date of the hearing, all
18-11 materials in the possession of the department that are relevant to
18-12 a matter proposed for discussion at a consolidated public hearing
18-13 under this section must be sent to interested persons and
18-14 organizations, posted on the department's website, made available
18-15 in hard-copy format at the department, filed with the secretary of
18-16 state for publication by reference in the Texas Register, and
18-17 disseminated by any other means required by this chapter or by
18-18 Chapter 551.
18-19 SECTION 1.12. Section 2306.067, Government Code, is amended
18-20 by adding Subsection (d) to read as follows:
18-21 (d) The director may enter into an agreement with the
18-22 manufactured housing division to loan or assign department
18-23 employees, equipment, and facilities to that division.
18-24 SECTION 1.13. Section 2306.0721, Government Code, is amended
18-25 by amending Subsection (c) and adding Subsection (f) to read as
18-26 follows:
19-1 (c) The plan must include:
19-2 (1) an estimate and analysis of the housing needs of
19-3 the following populations in each uniform [the] state service
19-4 region:
19-5 (A) individuals and families of moderate, low,
19-6 [and] very low, and extremely low income;
19-7 (B) individuals with special needs; and
19-8 (C) homeless individuals;
19-9 (2) a proposal to use all available housing resources
19-10 to address the housing needs of the populations described by
19-11 Subdivision (1) by establishing funding levels for all
19-12 housing-related programs;
19-13 (3) an estimate of the number of federally assisted
19-14 housing units available for individuals and families of low and
19-15 very low income and individuals with special needs in each uniform
19-16 state service region [county];
19-17 (4) a description of state programs that govern the
19-18 use of all available housing resources;
19-19 (5) a resource allocation plan that targets all
19-20 available housing resources to individuals and families of low and
19-21 very low income and individuals with special needs in each uniform
19-22 state service region;
19-23 (6) a description of the department's efforts to
19-24 monitor and analyze the unused or underused federal resources of
19-25 other state agencies for housing-related services and services for
19-26 homeless individuals and the department's recommendations to ensure
20-1 the full use by the state of all available federal resources for
20-2 those services in each uniform state service region;
20-3 (7) strategies to provide housing for individuals and
20-4 families with special needs in each uniform state service region;
20-5 (8) a description of the department's efforts to
20-6 encourage in each uniform state service region the construction of
20-7 housing units that incorporate energy efficient construction and
20-8 appliances; [and]
20-9 (9) an estimate and analysis of the housing supply in
20-10 each uniform state service region;
20-11 (10) an inventory of all publicly and, where possible,
20-12 privately funded housing resources, including public housing
20-13 authorities, housing finance corporations, community housing
20-14 development organizations, and community action agencies;
20-15 (11) strategies for meeting rural housing needs;
20-16 (12) information on the demand for contract-for-deed
20-17 conversions, services from self-help centers, consumer education,
20-18 and other colonia resident services in counties some part of which
20-19 is within 150 miles of the international border of this state;
20-20 (13) a summary of public comments received at a
20-21 hearing under this chapter or from another source that concern the
20-22 demand for colonia resident services described by Subdivision (12);
20-23 and
20-24 (14) any other housing-related information that the
20-25 state is required to include in the one-year action plan of the
20-26 consolidated plan submitted annually to the United States
21-1 Department of Housing and Urban Development.
21-2 (f) The director may subdivide the uniform state service
21-3 regions as necessary for purposes of the state low income housing
21-4 plan.
21-5 SECTION 1.14. Section 2306.0722, Government Code, is amended
21-6 to read as follows:
21-7 Sec. 2306.0722. PREPARATION OF PLAN AND REPORT. (a) Before
21-8 preparing the annual low income housing report under Section
21-9 2306.072 and the state low income housing plan under Section
21-10 2306.0721, the department shall meet with regional planning
21-11 commissions created under Chapter 391, Local Government Code,
21-12 representatives of groups with an interest in low income housing,
21-13 nonprofit housing organizations, managers, owners, and developers
21-14 of affordable housing, local government officials, and residents of
21-15 low income housing. The department shall obtain the comments and
21-16 suggestions of the representatives, officials, and residents about
21-17 the prioritization and allocation of the department's resources in
21-18 regard to housing.
21-19 (b) In preparing the annual report under Section 2306.072
21-20 and the state low income housing plan under Section 2306.0721, the
21-21 director shall:
21-22 (1) coordinate local, state, and federal housing
21-23 resources, including tax exempt housing bond financing and low
21-24 income housing tax credits;
21-25 (2) set priorities for the available housing resources
21-26 to help the neediest individuals;
22-1 (3) evaluate the success of publicly supported housing
22-2 programs;
22-3 (4) survey and identify the unmet housing needs of
22-4 individuals the department is required to assist;
22-5 (5) ensure that housing programs benefit an individual
22-6 without regard to the individual's race, ethnicity, sex, or
22-7 national origin;
22-8 (6) develop housing opportunities for individuals and
22-9 families of low and very low income and individuals with special
22-10 housing needs;
22-11 (7) develop housing programs through an open, fair,
22-12 and public process;
22-13 (8) set priorities for assistance in a manner that is
22-14 appropriate and consistent with the housing needs of the
22-15 populations described by Section 2306.0721(c)(1);
22-16 (9) incorporate recommendations that are consistent
22-17 with the consolidated plan submitted annually by the state to the
22-18 United States Department of Housing and Urban Development;
22-19 (10) identify the organizations and individuals
22-20 consulted by the department in preparing the annual report and
22-21 state low income housing plan and summarize and incorporate
22-22 comments and suggestions provided under Subsection (a) as the board
22-23 determines to be appropriate;
22-24 (11) develop a plan to respond to changes in federal
22-25 funding and programs for the provision of affordable housing; [and]
22-26 (12) use the following standardized categories to
23-1 describe the income of program applicants and beneficiaries:
23-2 (A) 0 to 30 percent of area median income
23-3 adjusted for family size;
23-4 (B) more than 30 to 60 percent of area median
23-5 income adjusted for family size;
23-6 (C) more than 60 to 80 percent of area median
23-7 income adjusted for family size;
23-8 (D) more than 80 to 115 percent of area median
23-9 income adjusted for family size; or
23-10 (E) more than 115 percent of area median income
23-11 adjusted for family size; and
23-12 (13) use the most recent census data combined with
23-13 existing data from local housing and community service providers in
23-14 the state, including public housing authorities, housing finance
23-15 corporations, community housing development organizations, and
23-16 community action agencies.
23-17 SECTION 1.15. Subsection (a), Section 2306.0723, Government
23-18 Code, is amended to read as follows:
23-19 (a) The department shall hold public hearings on the annual
23-20 state low income housing plan and report before the director
23-21 submits the report and the plan to the board. [Public hearings
23-22 shall be held in Dallas or Fort Worth, El Paso, Houston, San
23-23 Antonio, the Lower Rio Grande Valley, and at least two additional
23-24 municipalities selected by the department to represent
23-25 geographically diverse communities.] The department shall provide
23-26 notice of the public hearings as required by Section 2306.0661.
24-1 The published notice must include a summary of the report and plan.
24-2 The department shall accept comments on the report and plan at the
24-3 public hearings and for at least 30 days after the date of the
24-4 publication of the notice of the hearings.
24-5 SECTION 1.16. Section 2306.092, Government Code, is amended
24-6 to read as follows:
24-7 Sec. 2306.092. DUTIES REGARDING CERTAIN PROGRAMS CREATED
24-8 UNDER FEDERAL LAW. The department[, through the community affairs
24-9 division, or any other division] shall[:]
24-10 [(1) maintain communication with local governments and
24-11 act as an advocate for local governments at the state and federal
24-12 levels;]
24-13 [(2) assist local governments with advisory and
24-14 technical services;]
24-15 [(3) provide financial aid to local governments and
24-16 combinations of local governments for programs that are authorized
24-17 to receive assistance;]
24-18 [(4) provide information about and referrals for state
24-19 and federal programs and services that affect local governments;]
24-20 [(5) administer, conduct, or jointly sponsor
24-21 educational and training programs for local government officials;]
24-22 [(6) conduct research on problems of general concern
24-23 to local governments;]
24-24 [(7) collect, publish, and distribute information
24-25 useful to local governments, including information on:]
24-26 [(A) local government finances and employment;]
25-1 [(B) housing;]
25-2 [(C) population characteristics; and]
25-3 [(D) land-use patterns;]
25-4 [(8) encourage cooperation among local governments as
25-5 appropriate;]
25-6 [(9) advise and inform the governor and the
25-7 legislature about the affairs of local governments and recommend
25-8 necessary action;]
25-9 [(10) assist the governor in coordinating federal and
25-10 state activities affecting local governments;]
25-11 [(11)] administer, as appropriate:
25-12 (1) [(A)] state responsibilities for programs created
25-13 under the federal Economic Opportunity Act of 1964 (42 U.S.C.
25-14 Section 2701 et seq.);
25-15 (2) [(B)] programs assigned to the department under
25-16 the Omnibus Budget Reconciliation Act of 1981 (Pub.L. No. 97-35);
25-17 and
25-18 (3) [(C)] other federal acts creating economic
25-19 opportunity programs assigned to the department[;]
25-20 [(12) develop a consumer education program to educate
25-21 consumers on executory contract transactions for conveyance of real
25-22 property used or to be used as the consumer's residence;]
25-23 [(13) adopt rules that are necessary and proper to
25-24 carry out programs and responsibilities assigned by the legislature
25-25 or the governor; and]
25-26 [(14) perform other duties relating to local
26-1 government that are assigned by the legislature or the governor].
26-2 SECTION 1.17. Section 2306.111, Government Code, is amended
26-3 by amending Subsection (d) and adding Subsections (g) and (h) to
26-4 read as follows:
26-5 (d) The department shall allocate housing funds provided to
26-6 the state under the Cranston-Gonzalez National Affordable Housing
26-7 Act (42 U.S.C. Section 12701 et seq.), housing trust funds
26-8 administered by the department under Sections 2306.201-2306.206,
26-9 and commitments issued under the federal low income housing tax
26-10 credit program administered by the department under Subchapter DD
26-11 [Sections 2306.671-2306.678] to each uniform state service region
26-12 based on a formula developed by the department that is based on the
26-13 need for housing assistance and the availability of housing
26-14 resources, provided that the allocations are consistent with
26-15 applicable federal and state requirements and limitations. The
26-16 department shall use the information contained in its annual state
26-17 low income housing plan and shall use other appropriate data to
26-18 develop the formula. If the department determines under the
26-19 formula that an insufficient number of eligible applications for
26-20 assistance out of funds or credits allocable under this subsection
26-21 are submitted to the department from a particular uniform state
26-22 service region, the department shall use the unused funds or
26-23 credits allocated to that region for all other regions based on
26-24 identified need and financial feasibility.
26-25 (g) For each uniform state service region, the department
26-26 shall establish funding priorities to ensure that:
27-1 (1) funds are awarded to project applicants who are
27-2 best able to meet recognized needs for affordable housing, as
27-3 determined by the department;
27-4 (2) when practicable and when authorized under Section
27-5 42, Internal Revenue Code of 1986 (26 U.S.C. Section 42), the least
27-6 restrictive funding sources are used to serve the lowest income
27-7 residents; and
27-8 (3) funds are awarded based on a project applicant's
27-9 ability, when consistent with Section 42, Internal Revenue Code of
27-10 1986 (26 U.S.C. Section 42), practicable, and economically
27-11 feasible, to:
27-12 (A) provide the greatest number of quality
27-13 residential units;
27-14 (B) serve persons with the lowest percent area
27-15 median family income;
27-16 (C) extend the duration of the project to serve
27-17 a continuing public need;
27-18 (D) use other funding sources to minimize the
27-19 amount of subsidy needed to complete the project; and
27-20 (E) provide integrated, affordable housing for
27-21 individuals and families with different levels of income.
27-22 (h) The department by rule shall adopt a policy providing
27-23 for the reallocation of financial assistance administered by the
27-24 department, including financial assistance related to bonds issued
27-25 by the department, if the department's obligation with respect to
27-26 that assistance is prematurely terminated.
28-1 SECTION 1.18. Subchapter F, Chapter 2306, Government Code,
28-2 is amended by adding Sections 2306.1111, 2306.1112, and 2306.1113
28-3 to read as follows:
28-4 Sec. 2306.1111. UNIFORM APPLICATION AND FUNDING CYCLE.
28-5 (a) Notwithstanding any other state law and to the extent
28-6 consistent with federal law, the department shall establish a
28-7 uniform application and funding cycle for all single-family and
28-8 multifamily housing programs administered by the department under
28-9 this chapter.
28-10 (b) Wherever possible, the department shall use uniform
28-11 threshold requirements for single-family and multifamily housing
28-12 program applications, including uniform threshold requirements
28-13 relating to market studies and environmental reports.
28-14 Sec. 2306.1112. EXECUTIVE AWARD AND REVIEW ADVISORY
28-15 COMMITTEE. (a) The department shall establish an executive award
28-16 and review advisory committee to make recommendations to the board
28-17 regarding funding and allocation decisions.
28-18 (b) The advisory committee is composed of the director, the
28-19 administrator of each of the department's programs, and one
28-20 representative from each of the department's planning,
28-21 underwriting, and compliance functions.
28-22 (c) The advisory committee shall develop the funding
28-23 priorities required by Section 2306.111(g) and shall make funding
28-24 and allocation recommendations to the board based on the ability of
28-25 applicants to meet those priorities.
28-26 (d) The advisory committee is not subject to Chapter 2110.
29-1 Sec. 2306.1113. EX PARTE COMMUNICATIONS. (a) During the
29-2 period beginning on the date a project application is filed and
29-3 ending on the date the board makes a final decision with respect to
29-4 any approval of that application, a member of the board or a member
29-5 of the advisory committee established under Section 2306.1112 may
29-6 not communicate with the following persons:
29-7 (1) the applicant or a related party, as defined by
29-8 state law, including board rules, and federal law; and
29-9 (2) any person who is:
29-10 (A) active in the construction, rehabilitation,
29-11 ownership, or control of the proposed project, including:
29-12 (i) a general partner or contractor; and
29-13 (ii) a principal or affiliate of a general
29-14 partner or contractor; or
29-15 (B) employed as a lobbyist by the applicant or a
29-16 related party.
29-17 (b) Notwithstanding Subsection (a), a board member or
29-18 advisory committee member may communicate with a person described
29-19 by that subsection at any board meeting or public hearing held with
29-20 respect to the application.
29-21 SECTION 1.19. Subchapter F, Chapter 2306, Government Code,
29-22 is amended by adding Section 2306.127 to read as follows:
29-23 Sec. 2306.127. PRIORITY FOR CERTAIN COMMUNITIES. In a
29-24 manner consistent with the regional allocation formula described
29-25 under Section 2306.111(d), the department shall give priority
29-26 through its housing program scoring criteria to communities that
30-1 are located wholly or partly in:
30-2 (1) a federally designated urban enterprise community;
30-3 (2) an urban enhanced enterprise community; or
30-4 (3) an economically distressed area or colonia.
30-5 SECTION 1.20. Subchapter H, Chapter 2306, Government Code,
30-6 is amended by adding Section 2306.1711 to read as follows:
30-7 Sec. 2306.1711. RULEMAKING PROCEDURES FOR CERTAIN PROGRAMS.
30-8 (a) The department shall adopt rules outlining formal rulemaking
30-9 procedures for the low income housing tax credit program and the
30-10 multifamily housing mortgage revenue bond program in accordance
30-11 with Chapter 2001.
30-12 (b) The rules adopted under Subsection (a) must include:
30-13 (1) procedures for allowing interested parties to
30-14 petition the department to request the adoption of a new rule or
30-15 the amendment of an existing rule;
30-16 (2) notice requirements and deadlines for taking
30-17 certain actions; and
30-18 (3) a provision for a public hearing.
30-19 (c) The department shall provide for public input before
30-20 adopting rules for programs with requests for proposals and notices
30-21 of funding availability.
30-22 SECTION 1.21. Section 2306.252, Government Code, is amended
30-23 by amending Subsection (b) and adding Subsections (d) through (g)
30-24 to read as follows:
30-25 (b) The department, through the center, shall:
30-26 (1) provide educational material prepared in plain
31-1 language to housing advocates, housing sponsors, borrowers, and
31-2 tenants;
31-3 (2) provide technical assistance to nonprofit housing
31-4 sponsors; [and]
31-5 (3) assist in the development of housing policy,
31-6 including the annual state low income housing plan and report and
31-7 the consolidated plan;
31-8 (4) maintain communication with local governments and
31-9 act as an advocate for local governments at the state and federal
31-10 levels;
31-11 (5) assist local governments with advisory and
31-12 technical services;
31-13 (6) provide financial aid to local governments and
31-14 combinations of local governments for programs that are authorized
31-15 to receive assistance;
31-16 (7) provide information about and referrals for state
31-17 and federal programs and services that affect local governments;
31-18 (8) administer, conduct, or jointly sponsor
31-19 educational and training programs for local government officials;
31-20 (9) conduct research on problems of general concern to
31-21 local governments;
31-22 (10) collect, publish, and distribute information
31-23 useful to local governments, including information on:
31-24 (A) local government finances and employment;
31-25 (B) housing;
31-26 (C) population characteristics; and
32-1 (D) land-use patterns;
32-2 (11) encourage cooperation among local governments as
32-3 appropriate;
32-4 (12) advise and inform the governor and the
32-5 legislature about the affairs of local governments and recommend
32-6 necessary action;
32-7 (13) assist the governor in coordinating federal and
32-8 state activities affecting local governments;
32-9 (14) provide appropriate information regarding:
32-10 (A) state responsibilities for programs created
32-11 under the federal Economic Opportunity Act of 1964 (42 U.S.C.
32-12 Section 2701 et seq.);
32-13 (B) programs assigned to the department under
32-14 the Omnibus Budget Reconciliation Act of 1981 (Pub. L. No. 97-35);
32-15 and
32-16 (C) other federal acts creating economic
32-17 opportunity programs assigned to the department;
32-18 (15) develop a consumer education program to educate
32-19 consumers on executory contract transactions for the conveyance of
32-20 real property used or to be used as the consumer's residence;
32-21 (16) adopt rules that are necessary and proper to
32-22 carry out programs and responsibilities assigned by the legislature
32-23 or the governor;
32-24 (17) provide, in cooperation with the state energy
32-25 conservation office, the Texas Natural Resource Conservation
32-26 Commission, and other governmental entities, information on the use
33-1 of sustainable and energy efficient housing construction products
33-2 and assist local governments and nonprofits in identifying
33-3 information on sustainable and energy efficient housing
33-4 construction and energy efficient resources and techniques; and
33-5 (18) perform other duties relating to local
33-6 governments that are assigned by the legislature or the governor.
33-7 (d) The center shall serve as a housing and community
33-8 services clearinghouse to provide information to the public, local
33-9 communities, housing providers, and other interested parties
33-10 regarding:
33-11 (1) the performance of each department program;
33-12 (2) the number of people served;
33-13 (3) the income of people served;
33-14 (4) the funding amounts distributed;
33-15 (5) allocation decisions;
33-16 (6) regional impact of department programs; and
33-17 (7) any other relevant information.
33-18 (e) The center shall compile the department's reports into
33-19 an integrated format and shall compile and maintain a list of all
33-20 affordable housing resources in the state, organized by community.
33-21 (f) The information required under Subsections (d) and (e)
33-22 must be readily available in:
33-23 (1) a hard-copy format; and
33-24 (2) a user-friendly format on the department's
33-25 website.
33-26 (g) The center shall provide information regarding the
34-1 department's housing and community affairs programs to the Texas
34-2 Information and Referral Network for inclusion in the statewide
34-3 information and referral network as required by Section 531.0312.
34-4 SECTION 1.22. (a) Subsection (b), Section 2306.255,
34-5 Government Code, is amended to read as follows:
34-6 (b) The office shall establish a program to guarantee loans
34-7 made by private lenders to convert a contract for deed into a
34-8 warranty deed. To the extent possible, the office shall encourage
34-9 conversion of a contract for deed under the program into a general
34-10 warranty deed.
34-11 (b) The change in law made by this section applies only to a
34-12 contract for deed that is converted into a warranty deed on or
34-13 after the effective date of this Act.
34-14 SECTION 1.23. Subchapter K, Chapter 2306, Government Code,
34-15 is amended by adding Sections 2306.256 and 2306.257 to read as
34-16 follows:
34-17 Sec. 2306.256. AFFORDABLE HOUSING PRESERVATION PROGRAM.
34-18 (a) The department shall develop and implement a program to
34-19 preserve affordable housing in this state.
34-20 (b) Through the program, the department shall:
34-21 (1) maintain data on housing projected to lose its
34-22 affordable status;
34-23 (2) develop policies necessary to ensure the
34-24 preservation of affordable housing in this state;
34-25 (3) advise other program areas with respect to the
34-26 policies; and
35-1 (4) assist those other program areas in implementing
35-2 the policies.
35-3 Sec. 2306.257. APPLICANT COMPLIANCE WITH STATE AND FEDERAL
35-4 LAWS PROHIBITING DISCRIMINATION: CERTIFICATION AND MONITORING.
35-5 (a) The department may provide assistance through a housing
35-6 program under this chapter only to an applicant who certifies the
35-7 applicant's compliance with:
35-8 (1) state and federal fair housing laws, including
35-9 Chapter 301, Property Code, Title VIII of the Civil Rights Act of
35-10 1968 (42 U.S.C. Section 3601 et seq.), and the Fair Housing
35-11 Amendments Act of 1988 (42 U.S.C. Section 3601 et seq.);
35-12 (2) the Civil Rights Act of 1964 (42 U.S.C. Section
35-13 2000a et seq.);
35-14 (3) the Americans with Disabilities Act of 1990 (42
35-15 U.S.C. Section 12101 et seq.); and
35-16 (4) the Rehabilitation Act of 1973 (29 U.S.C. Section
35-17 701 et seq.).
35-18 (b) In conjunction with the state Commission on Human
35-19 Rights, the department shall adopt rules governing the
35-20 certification process described by this section, including rules
35-21 establishing:
35-22 (1) procedures for certifying compliance;
35-23 (2) methods for measuring continued compliance; and
35-24 (3) different degrees of sanctions for noncompliance
35-25 and reasonable periods for correcting noncompliance.
35-26 (c) Sanctions imposed under Subsection (b)(3) may:
36-1 (1) include a public reprimand, termination of
36-2 assistance, and a bar on future eligibility for assistance through
36-3 a housing program under this chapter; and
36-4 (2) be imposed in addition to any action taken by the
36-5 state Commission on Human Rights.
36-6 (d) The department shall promptly notify the state
36-7 Commission on Human Rights if the department determines that a
36-8 program participant may have failed to comply with the laws listed
36-9 by Subsection (a).
36-10 SECTION 1.24. Subsections (a), (a-1), and (b), Section
36-11 2306.358, Government Code, are amended to read as follows:
36-12 (a) Of the total qualified 501(c)(3) bonds issued under
36-13 Section 145 of the Internal Revenue Code of 1986 (26 U.S.C. Section
36-14 145) in each fiscal year, it is the express intent of the
36-15 legislature that the department shall allocate qualified 501(c)(3)
36-16 bonding authority as follows:
36-17 (1) [at least 50 percent of the total annual issuance
36-18 amount authorized through the memorandum of understanding provided
36-19 for in Subsection (b) of this section is reserved for the purposes
36-20 of new construction or acquisition with substantial rehabilitation;]
36-21 [(2)] not more than 25 percent of the total annual
36-22 issuance amount authorized through the memorandum of understanding
36-23 provided for in Subsection (b) [of this section] may be used for
36-24 projects in any one metropolitan area; and
36-25 (2) [(3)] at least 15 percent of the annual issuance
36-26 amount authorized through the memorandum of understanding provided
37-1 for in Subsection (b) [of this section] is reserved for projects in
37-2 rural areas.
37-3 (a-1) For the purposes of Subsection (a), "rural[:]
37-4 [(1) "Rural] area" and "metropolitan area" shall be
37-5 defined through the memorandum of understanding provided for in
37-6 Subsection (b) [of this section.]
37-7 [(2) "Substantial rehabilitation" means rehabilitation
37-8 of a project with a minimum of $5,000 of rehabilitation cost per
37-9 unit].
37-10 (b) A qualified 501(c)(3) bond may not be issued unless
37-11 approved by the Bond Review Board. In addition, the Bond Review
37-12 Board shall enter into a memorandum of understanding with the
37-13 department specifying the amount of bonds to be issued in each
37-14 fiscal year. The department and the Bond Review Board shall review
37-15 the memorandum of understanding annually to determine the specific
37-16 amount of bonds to be issued in each fiscal year. The Bond Review
37-17 Board may not approve a proposal to issue qualified 501(c)(3) bonds
37-18 unless they meet the requirements of this section, including the
37-19 memorandum of understanding, and all other laws that may apply.
37-20 SECTION 1.25. Section 2306.431, Government Code, is amended
37-21 by adding Subsection (c) to read as follows:
37-22 (c) Any bonds submitted by the department to the attorney
37-23 general under this section must include a certification by the
37-24 board that home mortgage loans made using the proceeds of the bonds
37-25 do not include a mandatory arbitration requirement.
37-26 SECTION 1.26. The heading to Subchapter Z, Chapter 2306,
38-1 Government Code, is amended to read as follows:
38-2 SUBCHAPTER Z. COLONIAS [COLONIA SELF-HELP CENTERS]
38-3 SECTION 1.27. Subchapter Z, Chapter 2306, Government Code,
38-4 is amended by amending Sections 2306.584 and 2306.585 and adding
38-5 Sections 2306.590 and 2306.591 to read as follows:
38-6 Sec. 2306.584. COLONIA RESIDENT ADVISORY COMMITTEE.
38-7 (a) The board [department] shall appoint not fewer than five
38-8 persons who are residents of colonias to serve on a colonia
38-9 resident [an] advisory committee. The members of the colonia
38-10 resident advisory committee shall be selected from lists of
38-11 candidates submitted to the board [department] by local nonprofit
38-12 organizations and the commissioners court of a county in which a
38-13 self-help center is located.
38-14 (b) The board [department] shall appoint one committee
38-15 member to represent each of the counties in which self-help centers
38-16 are located. Each committee member:
38-17 (1) must be a resident of a colonia in the county the
38-18 member represents; and
38-19 (2) may not be a board member, contractor, or employee
38-20 of or have any ownership interest in an entity that is awarded a
38-21 contract under this subchapter.
38-22 Sec. 2306.585. DUTIES OF COLONIA RESIDENT ADVISORY
38-23 COMMITTEE. (a) The colonia resident advisory committee shall
38-24 advise the board [department] regarding:
38-25 (1) the needs of colonia residents;
38-26 (2) appropriate and effective programs that are
39-1 proposed or are operated through the self-help centers; and
39-2 (3) activities that may be undertaken through the
39-3 self-help centers to better serve the needs of colonia residents.
39-4 (b) The colonia resident advisory committee shall meet
39-5 before the 30th day preceding the date on which a contract is
39-6 scheduled to be awarded for the operation of a self-help center and
39-7 may meet at other times.
39-8 Sec. 2306.590. COLONIA INITIATIVES ADVISORY COMMITTEE.
39-9 (a) The board shall establish a colonia initiatives advisory
39-10 committee that is composed of the following members appointed by
39-11 the board:
39-12 (1) one member who resides in a colonia;
39-13 (2) one member who represents a nonprofit organization
39-14 that provides assistance to colonia residents;
39-15 (3) one member who represents a local political
39-16 subdivision containing all or part of a colonia;
39-17 (4) one member who represents private interests in
39-18 banking or land development; and
39-19 (5) one member who represents the public.
39-20 (b) Each member of the colonia initiatives advisory
39-21 committee other than the public member must reside within 150 miles
39-22 of the international border of this state.
39-23 (c) The colonia initiatives advisory committee shall:
39-24 (1) review public comments regarding the colonia needs
39-25 assessment incorporated into the state low income housing plan
39-26 under Section 2306.0721; and
40-1 (2) based on those public comments, recommend to the
40-2 board new colonia programs or improvements to existing colonia
40-3 programs.
40-4 Sec. 2306.591. BIENNIAL ACTION PLAN. (a) The office
40-5 established by the department to promote initiatives for colonias
40-6 shall prepare a biennial action plan addressing policy goals for
40-7 colonia programs, strategies to meet the policy goals, and the
40-8 projected outcomes with respect to the policy goals.
40-9 (b) The office shall solicit public comments regarding the
40-10 plan at a public hearing. At least six weeks before the public
40-11 hearing, the office shall prepare and publish an initial draft of
40-12 the plan.
40-13 (c) After the public hearing, the office must publish a
40-14 final plan that:
40-15 (1) lists any changes made to the initial draft of the
40-16 plan that are based on public comments regarding the initial draft;
40-17 and
40-18 (2) directly addresses those public comments.
40-19 (d) The office shall send the final plan to the colonia
40-20 initiatives advisory committee for review and comment. After
40-21 receiving comments, the office shall send the plan to the board for
40-22 final approval, with the comments of the colonia initiatives
40-23 advisory committee attached to the plan.
40-24 SECTION 1.28. Subsection (c), Section 2306.589, Government
40-25 Code, is amended to read as follows:
40-26 (c) The department may use money in the colonia set-aside
41-1 fund for specific activities that assist colonias, including:
41-2 (1) the operation and activities of the self-help
41-3 centers established under this subchapter;
41-4 (2) reimbursement of colonia resident advisory
41-5 committee members and colonia initiatives advisory committee
41-6 members for their reasonable expenses in the manner provided by
41-7 Chapter 2110 [Article 6252-33, Revised Statutes,] or the General
41-8 Appropriations Act; and
41-9 (3) funding for the provision of water and sewer
41-10 service connections in accordance with Subsection (b).
41-11 SECTION 1.29. Subchapter AA, Chapter 2306, Government Code,
41-12 is amended to read as follows:
41-13 SUBCHAPTER AA. MANUFACTURED HOUSING DIVISION
41-14 Sec. 2306.6001 [2306.601]. DEFINITIONS. In this subchapter:
41-15 (1) "Division" means the manufactured housing
41-16 division.
41-17 (2) "Division director" means the executive director
41-18 of the division.
41-19 (3) "Manufactured Housing Board" means the governing
41-20 board of the division.
41-21 Sec. 2306.6002. REGULATION AND ENFORCEMENT. The department
41-22 shall administer and enforce the Texas Manufactured Housing
41-23 Standards Act (Article 5221f, Vernon's Texas Civil Statutes)
41-24 through the [manufactured housing] division. The Manufactured
41-25 Housing Board [board] and the division director shall exercise
41-26 authority and responsibilities assigned to them under that Act.
42-1 Sec. 2306.6003. MANUFACTURED HOUSING BOARD. (a) The
42-2 Manufactured Housing Board is an independent entity within the
42-3 department, is administratively attached to the department, and is
42-4 not an advisory body to the department.
42-5 (b) The Manufactured Housing Board shall carry out the
42-6 functions and duties conferred on the Manufactured Housing Board by
42-7 this subchapter and by other law.
42-8 Sec. 2306.6004. MANUFACTURED HOUSING BOARD MEMBERSHIP.
42-9 (a) The Manufactured Housing Board consists of five public members
42-10 appointed by the governor.
42-11 (b) A person is eligible to be appointed as a public member
42-12 of the Manufactured Housing Board if the person is a citizen of the
42-13 United States and a resident of this state.
42-14 (c) A person may not be a member of the Manufactured Housing
42-15 Board if the person or the person's spouse:
42-16 (1) is registered, certified, or licensed by a
42-17 regulatory agency in the field of manufactured housing;
42-18 (2) is employed by or participates in the management
42-19 of a business entity or other organization regulated by or
42-20 receiving money from the division;
42-21 (3) owns or controls, directly or indirectly, more
42-22 than a 10 percent interest in a business entity or other
42-23 organization regulated by or receiving money from the division; or
42-24 (4) uses or receives a substantial amount of tangible
42-25 goods, services, or money from the division other than compensation
42-26 or reimbursement authorized by law for Manufactured Housing Board
43-1 membership, attendance, or expenses.
43-2 (d) Appointments to the Manufactured Housing Board shall be
43-3 made without regard to the race, color, disability, sex, religion,
43-4 age, or national origin of the appointees.
43-5 Sec. 2306.6005. CONFLICT OF INTEREST. (a) In this section,
43-6 "Texas trade association" means a cooperative and voluntarily
43-7 joined association of business or professional competitors in this
43-8 state designed to assist its members and its industry or profession
43-9 in dealing with mutual business or professional problems and in
43-10 promoting their common interest.
43-11 (b) A person may not be a member of the Manufactured Housing
43-12 Board and may not be a division employee employed in a "bona fide
43-13 executive, administrative, or professional capacity," as that
43-14 phrase is used for purposes of establishing an exemption to the
43-15 overtime provisions of the federal Fair Labor Standards Act of 1938
43-16 (29 U.S.C. Section 201 et seq.), if:
43-17 (1) the person is an officer, employee, or paid
43-18 consultant of a Texas trade association in the field of
43-19 manufactured housing; or
43-20 (2) the person's spouse is an officer, manager, or
43-21 paid consultant of a Texas trade association in the field of
43-22 manufactured housing.
43-23 (c) A person may not be a member of the Manufactured Housing
43-24 Board or act as the general counsel to the Manufactured Housing
43-25 Board or the division if the person is required to register as a
43-26 lobbyist under Chapter 305 because of the person's activities for
44-1 compensation on behalf of a profession related to the operation of
44-2 the division.
44-3 Sec. 2306.6006. TERMS; VACANCY. (a) The members of the
44-4 Manufactured Housing Board serve staggered six-year terms, with the
44-5 terms of one or two members expiring on January 31 of each
44-6 odd-numbered year.
44-7 (b) A person may not serve two consecutive full six-year
44-8 terms as a member of the Manufactured Housing Board.
44-9 (c) If a vacancy occurs during a member's term, the governor
44-10 shall appoint a new member to fill the unexpired term.
44-11 Sec. 2306.6007. PRESIDING OFFICER. The governor shall
44-12 designate a member of the Manufactured Housing Board as the
44-13 presiding officer of the Manufactured Housing Board to serve in
44-14 that capacity at the will of the governor.
44-15 Sec. 2306.6008. GROUNDS FOR REMOVAL. (a) It is a ground
44-16 for removal from the Manufactured Housing Board that a member:
44-17 (1) does not have at the time of taking office the
44-18 qualifications required by Section 2306.6004(b);
44-19 (2) does not maintain during service on the
44-20 Manufactured Housing Board the qualifications required by Section
44-21 2306.6004(b);
44-22 (3) is ineligible for membership under Section
44-23 2306.6004(c) or 2306.6005;
44-24 (4) cannot, because of illness or disability,
44-25 discharge the member's duties for a substantial part of the
44-26 member's term; or
45-1 (5) is absent from more than half of the regularly
45-2 scheduled Manufactured Housing Board meetings that the member is
45-3 eligible to attend during a calendar year without an excuse
45-4 approved by a majority vote of the Manufactured Housing Board.
45-5 (b) The validity of an action of the Manufactured Housing
45-6 Board is not affected by the fact that it is taken when a ground
45-7 for removal of a Manufactured Housing Board member exists.
45-8 (c) If the division director has knowledge that a potential
45-9 ground for removal exists, the division director shall notify the
45-10 presiding officer of the Manufactured Housing Board of the
45-11 potential ground. The presiding officer shall then notify the
45-12 governor and the attorney general that a potential ground for
45-13 removal exists. If the potential ground for removal involves the
45-14 presiding officer, the division director shall notify the next
45-15 highest ranking officer of the Manufactured Housing Board, who
45-16 shall then notify the governor and the attorney general that a
45-17 potential ground for removal exists.
45-18 Sec. 2306.6009. REIMBURSEMENT. A Manufactured Housing Board
45-19 member may not receive compensation, but may be reimbursed for
45-20 actual travel expenses, including expenses for meals, lodging, and
45-21 transportation. A Manufactured Housing Board member is entitled to
45-22 reimbursement for transportation expenses as provided by the
45-23 General Appropriations Act.
45-24 Sec. 2306.6010. MEETINGS. (a) The Manufactured Housing
45-25 Board shall have regular meetings as the majority of the members
45-26 may specify and special meetings at the request of the presiding
46-1 officer, any two members, or the division director.
46-2 (b) Reasonable notice of all meetings shall be given as
46-3 prescribed by Manufactured Housing Board rules.
46-4 (c) The presiding officer shall preside at all meetings of
46-5 the Manufactured Housing Board. In the absence of the presiding
46-6 officer, the members present shall select one of the members to
46-7 preside at the meeting.
46-8 Sec. 2306.6011. TRAINING. (a) A person who is appointed to
46-9 and qualifies for office as a member of the Manufactured Housing
46-10 Board may not vote, deliberate, or be counted as a member in
46-11 attendance at a meeting of the Manufactured Housing Board until the
46-12 person completes a training program that complies with this
46-13 section.
46-14 (b) The training program must provide the person with
46-15 information regarding:
46-16 (1) the legislation that created the division and the
46-17 Manufactured Housing Board;
46-18 (2) the programs operated by the division;
46-19 (3) the role and functions of the division;
46-20 (4) the rules of the division, with an emphasis on the
46-21 rules that relate to disciplinary and investigatory authority;
46-22 (5) the current budget for the division;
46-23 (6) the results of the most recent formal audit of the
46-24 division;
46-25 (7) the requirements of:
46-26 (A) the open meetings law, Chapter 551;
47-1 (B) the public information law, Chapter 552;
47-2 (C) the administrative procedure law, Chapter
47-3 2001; and
47-4 (D) other laws relating to public officials,
47-5 including conflict-of-interest laws; and
47-6 (8) any applicable ethics policies adopted by the
47-7 division or the Texas Ethics Commission.
47-8 (c) A person appointed to the Manufactured Housing Board is
47-9 entitled to reimbursement, as provided by the General
47-10 Appropriations Act, for the travel expenses incurred in attending
47-11 the training program regardless of whether the attendance at the
47-12 program occurs before or after the person qualifies for office.
47-13 Sec. 2306.6012. APPROPRIATIONS; DONATIONS. (a) The
47-14 legislature shall separately appropriate money to the Manufactured
47-15 Housing Board within the appropriations to the department for all
47-16 matters relating to the operation of the division.
47-17 (b) The Manufactured Housing Board may accept gifts and
47-18 grants of money or property under this subchapter and shall spend
47-19 the money and use the property for the purpose for which the
47-20 donation was made, except that the expenditure of money or use of
47-21 property must promote the acceptance of HUD-Code manufactured homes
47-22 as a viable source of housing for very low, low, and moderate
47-23 income families.
47-24 Sec. 2306.6013. BUDGET; SHARING OF DEPARTMENT PERSONNEL,
47-25 EQUIPMENT, AND FACILITIES. (a) The Manufactured Housing Board
47-26 shall develop a budget for the operations of the department
48-1 relating to the division.
48-2 (b) The Manufactured Housing Board shall reduce
48-3 administrative costs by entering into an agreement with the
48-4 department to enable the sharing of department personnel,
48-5 equipment, and facilities.
48-6 Sec. 2306.6014. DIVISION DIRECTOR. (a) The Manufactured
48-7 Housing Board shall employ the division director. The division
48-8 director is the Manufactured Housing Board's chief executive and
48-9 administrative officer.
48-10 (b) The division director is charged with administering,
48-11 enforcing, and carrying out the functions and duties conferred on
48-12 the division director by this subchapter and by other law.
48-13 (c) The division director serves at the pleasure of the
48-14 Manufactured Housing Board.
48-15 Sec. 2306.6015 [2306.602]. PERSONNEL. The division director
48-16 may employ staff as necessary to perform the work of the
48-17 [manufactured housing] division and may prescribe their duties and
48-18 compensation. Subject to applicable personnel policies and
48-19 regulations, the division director may remove any division
48-20 employee.
48-21 Sec. 2306.6016. SEPARATION OF RESPONSIBILITIES. The
48-22 Manufactured Housing Board shall develop and implement policies
48-23 that clearly separate the policy-making responsibilities of the
48-24 Manufactured Housing Board and the management responsibilities of
48-25 the division director and staff of the division.
48-26 Sec. 2306.6017. STANDARDS OF CONDUCT. The division director
49-1 or the division director's designee shall provide to members of the
49-2 Manufactured Housing Board and to division employees, as often as
49-3 necessary, information regarding the requirements for office or
49-4 employment under this subchapter, including information regarding a
49-5 person's responsibilities under applicable laws relating to
49-6 standards of conduct for state officers or employees.
49-7 Sec. 2306.6018. EQUAL EMPLOYMENT OPPORTUNITY. (a) The
49-8 division director or the division director's designee shall prepare
49-9 and maintain a written policy statement that implements a program
49-10 of equal employment opportunity to ensure that all personnel
49-11 decisions are made without regard to race, color, disability, sex,
49-12 religion, age, or national origin.
49-13 (b) The policy statement must include:
49-14 (1) personnel policies, including policies relating to
49-15 recruitment, evaluation, selection, training, and promotion of
49-16 personnel, that show the intent of the division to avoid the
49-17 unlawful employment practices described by Chapter 21, Labor Code;
49-18 and
49-19 (2) an analysis of the extent to which the composition
49-20 of the division's personnel is in accordance with state and federal
49-21 law and a description of reasonable methods to achieve compliance
49-22 with state and federal law.
49-23 (c) The policy statement must:
49-24 (1) be updated annually;
49-25 (2) be reviewed by the state Commission on Human
49-26 Rights for compliance with Subsection (b)(1); and
50-1 (3) be filed with the governor's office.
50-2 Sec. 2306.6019. STATE EMPLOYEE INCENTIVE PROGRAM. The
50-3 division director or the division director's designee shall provide
50-4 to division employees information and training on the benefits and
50-5 methods of participation in the state employee incentive program
50-6 under Subchapter B, Chapter 2108.
50-7 Sec. 2306.6020 [2306.603]. RULES. (a) The Manufactured
50-8 Housing Board [director] shall adopt rules as necessary to
50-9 implement this subchapter and to administer and enforce the
50-10 manufactured housing program through the [manufactured housing]
50-11 division. Rules adopted by the Manufactured Housing Board
50-12 [director] are subject to Chapter 2001[, Government Code].
50-13 (b) The Manufactured Housing Board [director] may not adopt
50-14 rules restricting competitive bidding or advertising by a person
50-15 regulated by the division except to prohibit false, misleading, or
50-16 deceptive practices by that person.
50-17 (c) The Manufactured Housing Board [director] may not
50-18 include in the rules to prohibit false, misleading, or deceptive
50-19 practices by a person regulated by the division a rule that:
50-20 (1) restricts the use of any advertising medium;
50-21 (2) restricts the person's personal appearance or the
50-22 use of the person's voice in an advertisement;
50-23 (3) relates to the size or duration of an
50-24 advertisement used by the person; or
50-25 (4) restricts the use of a trade name in advertising
50-26 by the person.
51-1 Sec. 2306.6021. PUBLIC PARTICIPATION. The Manufactured
51-2 Housing Board shall develop and implement policies that provide the
51-3 public with a reasonable opportunity to appear before the
51-4 Manufactured Housing Board and to speak on any issue under the
51-5 jurisdiction of the division.
51-6 Sec. 2306.6022. COMPLAINTS. (a) The division shall
51-7 maintain a file on each written complaint filed with the division.
51-8 The file must include:
51-9 (1) the name of the person who filed the complaint;
51-10 (2) the date the complaint is received by the
51-11 division;
51-12 (3) the subject matter of the complaint;
51-13 (4) the name of each person contacted in relation to
51-14 the complaint;
51-15 (5) a summary of the results of the review or
51-16 investigation of the complaint; and
51-17 (6) an explanation of the reason the file was closed,
51-18 if the division closed the file without taking action other than to
51-19 investigate the complaint.
51-20 (b) The division shall provide to the person filing the
51-21 complaint and to each person who is a subject of the complaint a
51-22 copy of the division's policies and procedures relating to
51-23 complaint investigation and resolution.
51-24 (c) The division, at least quarterly until final disposition
51-25 of the complaint, shall notify the person filing the complaint and
51-26 each person who is a subject of the complaint of the status of the
52-1 investigation unless the notice would jeopardize an undercover
52-2 investigation.
52-3 (d) Unless otherwise confidential by law, the records of a
52-4 license holder or other person that are required or obtained by the
52-5 division or its agents or employees in connection with the
52-6 investigation of a complaint are subject to the requirements of
52-7 Chapter 552.
52-8 Sec. 2306.6023 [2306.604]. SANCTIONS AND PENALTIES.
52-9 (a) The Manufactured Housing Board [director] shall adopt rules
52-10 relating to the administrative sanctions that may be enforced
52-11 against a person regulated by the [manufactured housing] division.
52-12 If the person violates a law relating to the regulation of
52-13 manufactured housing or a rule or order adopted or issued by the
52-14 Manufactured Housing Board [director] relating to the program, the
52-15 division director may:
52-16 (1) issue a written reprimand to the person that
52-17 specifies the violation;
52-18 (2) revoke or suspend the person's certificate of
52-19 registration; or
52-20 (3) place on probation a person whose certificate of
52-21 registration has been suspended.
52-22 (b) In addition to or in lieu of a sanction imposed under
52-23 Subsection (a) of this section, the Manufactured Housing Board
52-24 [board] may assess an administrative penalty in an amount not to
52-25 exceed $1,000 for each violation.
52-26 (c) If a suspension is probated, the division director may
53-1 require the person to report regularly to the division director on
53-2 matters that are the basis of the probation.
53-3 (d) If the division director proposes to suspend or revoke a
53-4 certificate of registration or the division director proposes to
53-5 assess an administrative penalty against a person regulated by the
53-6 division, the person is entitled to a hearing before a hearings
53-7 officer appointed by the division director. The Manufactured
53-8 Housing Board [director] by rule shall prescribe the procedures by
53-9 which a decision to suspend or revoke a certificate of registration
53-10 or to assess an administrative penalty are made and are appealable.
53-11 (e) In determining the amount of an administrative penalty
53-12 assessed under this section, the Manufactured Housing Board [board]
53-13 shall consider:
53-14 (1) the seriousness of the violation;
53-15 (2) the history of previous violations;
53-16 (3) the amount necessary to deter future violations;
53-17 (4) efforts made to correct the violation; and
53-18 (5) any other matters that justice may require.
53-19 (f) If, after investigation of a possible violation and the
53-20 facts surrounding that possible violation, the division director
53-21 determines that a violation has occurred, the division director
53-22 shall issue a preliminary report stating the facts on which the
53-23 conclusion that a violation occurred is based, recommending that an
53-24 administrative penalty under this section be imposed on the person
53-25 charged, and recommending the amount of that proposed penalty. The
53-26 division director shall base the recommended amount of the proposed
54-1 penalty on the seriousness of the violation determined by
54-2 consideration of the factors set forth in Subsection (e) [of this
54-3 section].
54-4 (g) Not later than the 14th day after the date on which the
54-5 preliminary report is issued, the division director shall give
54-6 written notice of the violation to the person charged. The notice
54-7 shall include:
54-8 (1) a brief summary of the charges;
54-9 (2) a statement of the amount of the penalty
54-10 recommended; and
54-11 (3) a statement of the right of the person charged to
54-12 a hearing on the occurrence of the violation, the amount of the
54-13 penalty, or both the occurrence of the violation and the amount of
54-14 the penalty.
54-15 (h) Not later than the 20th day after the date on which the
54-16 notice is received, the person charged may accept the determination
54-17 of the division director made under Subsection (f) [of this
54-18 section], including the recommended penalty, or make a written
54-19 request for a hearing on that determination.
54-20 (i) If the person charged with the violation accepts the
54-21 determination of the division director, the division director shall
54-22 issue an order approving the determination and ordering that the
54-23 person pay the recommended penalty.
54-24 (j) If the person charged fails to respond in a timely
54-25 manner to the notice or if the person requests a hearing, the
54-26 division director shall set a hearing, give written notice of the
55-1 hearing to the person, and designate a hearings examiner to conduct
55-2 the hearing. The hearings examiner shall make findings of fact and
55-3 conclusions of law and shall promptly issue to the Manufactured
55-4 Housing Board [board] a proposal for decision as to the occurrence
55-5 of the violation and a recommendation as to the amount of the
55-6 proposed penalty if a penalty is determined to be warranted. Based
55-7 on the findings of fact and conclusions of law and the
55-8 recommendations of the hearings examiner, the Manufactured Housing
55-9 Board [board] by order may find that a violation has occurred and
55-10 may assess a penalty, or may find that no violation has occurred.
55-11 (k) The division director shall give notice of the
55-12 Manufactured Housing Board's [board's] order to the person charged.
55-13 The notice must include:
55-14 (1) separate statements of the findings of fact and
55-15 conclusions of law;
55-16 (2) the amount of any penalty assessed;
55-17 (3) a statement of the right of the person charged to
55-18 judicial review of the Manufactured Housing Board's [commission's]
55-19 order; and
55-20 (4) any other information required by law.
55-21 (l) Not later than the 30th day after the date on which the
55-22 decision is final, the person charged shall:
55-23 (1) pay the penalty in full; or
55-24 (2) if the person files a petition for judicial review
55-25 contesting the fact of the violation, the amount of the penalty, or
55-26 both the fact of the violation and the amount of the penalty:
56-1 (A) forward the amount assessed to the division
56-2 [department] for deposit in an escrow account;
56-3 (B) in lieu of payment into escrow, post with
56-4 the division [department] a supersedeas bond for the amount of the
56-5 penalty, in a form approved by the division director and effective
56-6 until judicial review of the decision is final; or
56-7 (C) without paying the amount of the penalty or
56-8 posting the supersedeas bond, pursue the judicial review.
56-9 (m) A person charged with a penalty who is financially
56-10 unable to comply with Subsection (l)(2) [of this section] is
56-11 entitled to judicial review if the person files with the court, as
56-12 part of the person's petition for judicial review, a sworn
56-13 statement that the person is unable to meet the requirements of
56-14 that subsection.
56-15 (n) If the person charged does not pay the penalty and does
56-16 not pursue judicial review, the division [department] or the
56-17 attorney general may bring an action for the collection of the
56-18 penalty.
56-19 (o) Judicial review of the order of the Manufactured Housing
56-20 Board [board] assessing the penalty is subject to the substantial
56-21 evidence rule and shall be instituted by filing a petition with a
56-22 Travis County district court.
56-23 (p) If, after judicial review, the penalty is reduced or not
56-24 assessed, the division director shall remit to the person charged
56-25 the appropriate amount, plus accrued interest if the penalty has
56-26 been paid, or shall execute a release of the bond if a supersedeas
57-1 bond has been posted. The accrued interest on amounts remitted by
57-2 the division director under this subsection shall be paid at a rate
57-3 equal to the rate charged on loans to depository institutions by
57-4 the New York Federal Reserve Bank, and shall be paid for the period
57-5 beginning on the date that the assessed penalty is paid to the
57-6 division director and ending on the date the penalty is remitted.
57-7 (q) A penalty collected under this section shall be
57-8 deposited in the state treasury to the credit of the general
57-9 revenue fund.
57-10 (r) All proceedings conducted under this section and any
57-11 review or appeal of those proceedings are subject to Chapter 2001[,
57-12 Government Code].
57-13 (s) If it appears that a person is in violation of, or is
57-14 threatening to violate, any provision of the Texas Manufactured
57-15 Housing Standards Act (Article 5221f, Vernon's Texas Civil
57-16 Statutes), or a rule or order related to the administration and
57-17 enforcement of the manufactured housing program, the attorney
57-18 general or the division director may institute an action for
57-19 injunctive relief to restrain the person from continuing the
57-20 violation and for civil penalties not to exceed $1,000 for each
57-21 violation and not exceeding $250,000 in the aggregate. A civil
57-22 action filed under this subsection shall be filed in district court
57-23 in Travis County. The attorney general and the division director
57-24 may recover reasonable expenses incurred in obtaining injunctive
57-25 relief under this subsection, including court costs, reasonable
57-26 attorney's fees, investigative costs, witness fees, and deposition
58-1 expenses.
58-2 [Sec. 2306.605. ACCEPTANCE OF DONATIONS. The department may
58-3 accept gifts and grants of money or property under this chapter and
58-4 shall spend the money and use the property for the purpose for
58-5 which the donation was made, except that the expenditure of money
58-6 or use of property must promote the acceptance of HUD-Code
58-7 manufactured homes as a viable source of housing for very low, low,
58-8 and moderate income families.]
58-9 SECTION 1.30. Subchapter DD, Chapter 2306, Government Code,
58-10 is amended by adding Sections 2306.6728 and 2306.6729 to read as
58-11 follows:
58-12 Sec. 2306.6728. DEPARTMENT POLICY AND PROCEDURES REGARDING
58-13 RECIPIENTS OF CERTAIN FEDERAL HOUSING ASSISTANCE. (a) The
58-14 department by rule shall adopt a policy regarding the admittance to
58-15 low income housing tax credit properties of income-eligible
58-16 individuals and families receiving assistance under Section 8,
58-17 United States Housing Act of 1937 (42 U.S.C. Section 1437f).
58-18 (b) The policy must provide a reasonable minimum income
58-19 standard that is not otherwise prohibited by this chapter and that
58-20 is to be used by owners of low income housing tax credit properties
58-21 and must place reasonable limits on the use of any other factors
58-22 that impede the admittance of individuals and families described by
58-23 Subsection (a) to those properties, including credit histories,
58-24 security deposits, and employment histories.
58-25 (c) The department by rule shall establish procedures to
58-26 monitor low income housing tax credit properties that refuse to
59-1 admit individuals and families described by Subsection (a). The
59-2 department by rule shall establish enforcement mechanisms with
59-3 respect to those properties, including a range of sanctions to be
59-4 imposed against the owners of those properties.
59-5 Sec. 2306.6729. QUALIFIED NONPROFIT ORGANIZATION. (a) A
59-6 qualified nonprofit organization may compete in any low income
59-7 housing tax credit allocation pool, including:
59-8 (1) the nonprofit allocation pool;
59-9 (2) the rural projects/prison communities allocation
59-10 pool; and
59-11 (3) the general projects allocation pool.
59-12 (b) A qualified nonprofit organization submitting an
59-13 application under this subchapter must have a controlling interest
59-14 in a project proposed to be financed with a low income housing tax
59-15 credit from the nonprofit allocation pool.
59-16 SECTION 1.31. Section 531.0312, Government Code, is amended
59-17 by adding Subsection (d) to read as follows:
59-18 (d) The Texas Department of Housing and Community Affairs
59-19 shall provide the Texas Information and Referral Network with
59-20 information regarding the department's housing and community
59-21 affairs programs for inclusion in the statewide information and
59-22 referral network. The department shall provide the information in
59-23 a form determined by the commissioner and shall update the
59-24 information at least quarterly.
59-25 SECTION 1.32. Section 1372.023, Government Code, is amended
59-26 to read as follows:
60-1 Sec. 1372.023. DEDICATION OF PORTIONS [PORTION] OF STATE
60-2 CEILING TO TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS.
60-3 (a) Until August 15 [25], of that portion of the state ceiling
60-4 that is available exclusively for reservations by issuers of
60-5 qualified mortgage bonds, one-third is available exclusively to the
60-6 Texas Department of Housing and Community Affairs for the purpose
60-7 of issuing qualified mortgage bonds.
60-8 (b) Until August 15, of that portion of the state ceiling
60-9 that is available exclusively for reservations by issuers of
60-10 qualified residential rental project bonds, one-fourth is available
60-11 exclusively to the Texas Department of Housing and Community
60-12 Affairs in the manner described by Section 1372.0231.
60-13 (c) The Texas Department of Housing and Community Affairs
60-14 may not reserve a portion of the state ceiling that is available
60-15 exclusively for reservations by issuers of qualified residential
60-16 rental project bonds other than the portion dedicated to the
60-17 department under Subsection (b).
60-18 SECTION 1.33. Subsection (b), Section 1372.025, Government
60-19 Code, is amended to read as follows:
60-20 (b) Subsection (a) does not apply to qualified mortgage
60-21 bonds or qualified residential rental project bonds made available
60-22 exclusively to the Texas Department of Housing and Community
60-23 Affairs under Section 1372.023.
60-24 SECTION 1.34. Subdivisions (3), (7), and (8), Section 3,
60-25 Texas Manufactured Housing Standards Act (Article 5221f, Vernon's
60-26 Texas Civil Statutes), are amended to read as follows:
61-1 (3) "Board" means the Manufactured Housing Board
61-2 within the Texas Department of Housing and Community Affairs
61-3 [governing board of the department].
61-4 (7) "Department" means the Texas Department of Housing
61-5 and Community Affairs operating through its manufactured housing
61-6 division.
61-7 (8) "Director" means the executive director of the
61-8 manufactured housing division of the Texas Department of Housing
61-9 and Community Affairs [department].
61-10 SECTION 1.35. Section 7, Texas Manufactured Housing
61-11 Standards Act (Article 5221f, Vernon's Texas Civil Statutes), is
61-12 amended by amending Subsections (g) and (k) and adding Subsections
61-13 (t) through (y) to read as follows:
61-14 (g) All licenses are valid for one year and are renewable as
61-15 provided by the director. The board by rule may adopt a system
61-16 under which licenses expire on various dates during the year. For
61-17 the year in which the license expiration date is changed, the
61-18 department shall prorate license fees on a monthly basis so that
61-19 each license holder pays only that portion of the license fee that
61-20 is allocable to the number of months during which the license is
61-21 valid. On renewal of the license on the new expiration date, the
61-22 total license renewal fee is payable.
61-23 (k) The director shall conduct any hearing involving the
61-24 denial, renewal, revocation or suspension of a license in
61-25 accordance with Chapter 2001, Government Code. The department may
61-26 place on probation a person whose license is suspended. If a
62-1 license suspension is probated, the department may require the
62-2 person:
62-3 (1) to report regularly to the department on matters
62-4 that are the basis of the probation;
62-5 (2) to limit practice to the areas prescribed by the
62-6 department; or
62-7 (3) to continue or review professional education until
62-8 the person attains a degree of skill satisfactory to the department
62-9 in those areas that are the basis of the probation.
62-10 (t) A person whose license has expired may not engage in
62-11 activities that require a license until the license has been
62-12 renewed.
62-13 (u) A person whose license has been expired for 90 days or
62-14 less may renew the license by paying to the department a renewal
62-15 fee that is equal to 1-1/2 times the normally required renewal fee.
62-16 (v) A person whose license has been expired for more than 90
62-17 days but less than one year may renew the license by paying to the
62-18 department a renewal fee that is equal to two times the normally
62-19 required renewal fee.
62-20 (w) A person whose license has been expired for one year or
62-21 more may not renew the license. The person may obtain a new
62-22 license by complying with the requirements and procedures for
62-23 obtaining an original license.
62-24 (x) A person who was licensed in this state, moved to
62-25 another state, and is currently licensed and has been in practice
62-26 in the other state for the two years preceding the date of
63-1 application may obtain a new license without fulfilling the
63-2 instruction requirements of Subsection (o). The person must pay to
63-3 the department a fee that is equal to two times the normally
63-4 required renewal fee for the license.
63-5 (y) Not later than the 30th day before the date a person's
63-6 license is scheduled to expire, the department shall send written
63-7 notice of the impending expiration to the person at the person's
63-8 last known address according to the records of the department.
63-9 SECTION 1.36. Subsection (s), Section 7, Texas Manufactured
63-10 Housing Standards Act (Article 5221f, Vernon's Texas Civil
63-11 Statutes), as added by Chapter 351, Acts of the 76th Legislature,
63-12 Regular Session, 1999, is amended to read as follows:
63-13 (s) A person licensed as a real estate broker or salesperson
63-14 under The Real Estate License Act (Article 6573a, Vernon's Texas
63-15 Civil Statutes) may act as a manufactured housing broker or
63-16 salesperson without holding a license under this Act or posting a
63-17 surety bond or other security under this Act, provided that any
63-18 negotiations for the sale, exchange, or lease-purchase of a
63-19 manufactured home are conducted for a consumer for whom the person
63-20 is also acting as a real estate broker or salesperson consistent
63-21 with Section 18(e) of this Act.
63-22 SECTION 1.37. Section 7A, Texas Manufactured Housing
63-23 Standards Act (Article 5221f, Vernon's Texas Civil Statutes), is
63-24 amended to read as follows:
63-25 Sec. 7A. EDUCATION PROGRAMS. (a) The department [director]
63-26 may recognize, prepare, or administer certification programs [and
64-1 continuing education programs] for persons regulated under this
64-2 Act. Participation in the programs is voluntary.
64-3 (b) The board shall recognize, prepare, or administer
64-4 continuing education programs for its license holders. A license
64-5 holder must participate in the continuing education programs to the
64-6 extent required by the board to retain the person's license.
64-7 (c) To prepare or administer a certification program or a
64-8 continuing education program under this section, the board may
64-9 contract with a private, nonprofit, tax-exempt organization listed
64-10 in Section 501(c)(3), Internal Revenue Code of 1986 (26 U.S.C.
64-11 Section 501(c)(3)) or with an educational institution.
64-12 (d) The department [director] shall issue appropriate
64-13 certificates to those persons who complete a [the] certification
64-14 program or who participate in a [the] continuing education program
64-15 under this section.
64-16 SECTION 1.38. (a) The nine members of the governing board
64-17 of the Texas Department of Housing and Community Affairs who are
64-18 serving immediately before September 1, 2001, continue to serve as
64-19 members of the governing board of the department on and after that
64-20 date regardless of whether those members meet the membership
64-21 requirements prescribed by Subchapter B, Chapter 2306, Government
64-22 Code, as amended by this Act. However, the positions of those nine
64-23 members are abolished on the date on which a majority of the seven
64-24 board membership positions that are created under Subchapter B,
64-25 Chapter 2306, Government Code, as amended by this Act, are filled
64-26 by appointment by the governor and the appointees qualify for
65-1 office.
65-2 (b) The governor shall make the seven appointments to the
65-3 board under Subchapter B, Chapter 2306, Government Code, as amended
65-4 by this Act, as soon as possible on or after September 1, 2001. In
65-5 making the initial appointments, the governor shall designate two
65-6 members for terms expiring January 31, 2003, two members for terms
65-7 expiring January 31, 2005, and three members for terms expiring
65-8 January 31, 2007. The governor may reappoint any person to the
65-9 board who served as a member of the board before September 1, 2001.
65-10 (c) The changes in law made by this Act in amending
65-11 Subchapter B, Chapter 2306, Government Code, do not affect the
65-12 ability of the director of the Texas Department of Housing and
65-13 Community Affairs who is serving on the effective date of this Act
65-14 to continue to serve in that capacity until the governing board of
65-15 the department appointed by the governor under Subchapter B,
65-16 Chapter 2306, Government Code, as amended by this Act, employs a
65-17 director under Chapter 2306.
65-18 SECTION 1.39. (a) The governor shall make the appointments
65-19 to the Manufactured Housing Board created by Subchapter AA, Chapter
65-20 2306, Government Code, as amended by this Act, as soon as possible
65-21 on or after September 1, 2001. In making the initial appointments,
65-22 the governor shall designate one member for a term expiring January
65-23 31, 2003, two members for terms expiring January 31, 2005, and two
65-24 members for terms expiring January 31, 2007.
65-25 (b) Until the Manufactured Housing Board employs a division
65-26 director for the manufactured housing division of the Texas
66-1 Department of Housing and Community Affairs, the director of the
66-2 department may continue to carry out the functions of the division
66-3 director for that division.
66-4 SECTION 1.40. As soon as practicable after the effective
66-5 date of this Act, the new governing board of the Texas Department
66-6 of Housing and Community Affairs appointed by the governor under
66-7 Subchapter B, Chapter 2306, Government Code, as amended by this
66-8 Act, shall develop a strategic action plan to implement the
66-9 requirements of this Act. The board shall employ a director to
66-10 provide and monitor the provision of administrative support to the
66-11 board to assist in implementing the plan. The director shall
66-12 evaluate the organizational structure of the department, including
66-13 the evaluation of essential management positions, and shall make
66-14 any organizational changes necessary to implement the plan and the
66-15 other requirements of this Act.
66-16 SECTION 1.41. (a) Not later than December 31, 2002, the
66-17 Sunset Advisory Commission shall evaluate the success of the Texas
66-18 Department of Housing and Community Affairs in implementing the
66-19 requirements of this Act before that date, including actions taken
66-20 by the department with respect to the following:
66-21 (1) establishment of a functional governing board that
66-22 values public input and enables board members to develop the
66-23 expertise necessary to make informed decisions about and to ensure
66-24 the accountability of the department and the programs of the
66-25 department;
66-26 (2) establishment of an organizational structure to
67-1 develop and implement a statewide needs assessment and a
67-2 corresponding allocation process that:
67-3 (A) ensure that the state's objectives regarding
67-4 housing and community support services are fulfilled;
67-5 (B) ensure that the state's most critical needs
67-6 regarding housing and community support services are identified and
67-7 met;
67-8 (C) incorporate input from local entities;
67-9 (D) maximize the preservation of affordable
67-10 housing; and
67-11 (E) achieve the best use of state resources;
67-12 (3) development of policies and procedures that
67-13 clearly define the appropriate roles of board members, the
67-14 director, and department staff;
67-15 (4) implementation of rules outlining a formal process
67-16 to appeal board decisions; and
67-17 (5) establishment of project compliance procedures
67-18 that ensure that the programs of the department provide fair access
67-19 to housing and community support services in this state.
67-20 (b) Before January 1, 2003, the Sunset Advisory Commission
67-21 shall report the results of evaluation to the presiding officer of
67-22 each house of the legislature.
67-23 SECTION 1.42. The rules of the Texas Department of Housing
67-24 and Community Affairs relating to the administration and
67-25 enforcement of the Texas Manufactured Housing Standards Act
67-26 (Article 5221f, Vernon's Texas Civil Statutes) are continued in
68-1 effect as rules of the manufactured housing division of the Texas
68-2 Department of Housing and Community Affairs until amended or
68-3 repealed by that division. Each affected license, certificate,
68-4 permit, bond, order, security, or registration issued or regulated
68-5 by the Texas Department of Housing and Community Affairs is
68-6 continued in effect as a license, certificate, permit, bond, order,
68-7 security, or registration of the manufactured housing division of
68-8 the Texas Department of Housing and Community Affairs.
68-9 SECTION 1.43. A complaint or investigation relating to the
68-10 administration and enforcement of the Texas Manufactured Housing
68-11 Standards Act (Article 5221f, Vernon's Texas Civil Statutes) and
68-12 pending before the Texas Department of Housing and Community
68-13 Affairs on August 31, 2001, is transferred without change in status
68-14 to the manufactured housing division of the Texas Department of
68-15 Housing and Community Affairs on the effective date of this Act. A
68-16 contested case relating to the administration and enforcement of
68-17 the Texas Manufactured Housing Standards Act (Article 5221f,
68-18 Vernon's Texas Civil Statutes) and pending before the Texas
68-19 Department of Housing and Community Affairs on August 31, 2001, is
68-20 transferred to the jurisdiction of the manufactured housing
68-21 division of the Texas Department of Housing and Community Affairs
68-22 on the effective date of this Act, and actions taken in the
68-23 proceeding shall be treated as if taken by that division.
68-24 SECTION 1.44. A reference in a law to the Texas Department
68-25 of Housing and Community Affairs relating to the administration and
68-26 enforcement of the Texas Manufactured Housing Standards Act
69-1 (Article 5221f, Vernon's Texas Civil Statutes) means the
69-2 manufactured housing division of the Texas Department of Housing
69-3 and Community Affairs.
69-4 SECTION 1.45. Sections 2306.023 and 2306.026, and Subsection
69-5 (d), Section 2306.052, Government Code, are repealed.
69-6 SECTION 1.46. Subsection (s), Section 7, Texas Manufactured
69-7 Housing Standards Act (Article 5221f, Vernon's Texas Civil
69-8 Statutes), as added by Chapter 1369, Acts of the 76th Legislature,
69-9 Regular Session, 1999, is repealed.
69-10 SECTION 1.47. A member of the governing board of the Texas
69-11 Department of Housing and Community Affairs or of the Manufactured
69-12 Housing Board is not subject to the prohibition imposed by Section
69-13 2306.028 or 2306.6011, Government Code, as applicable, until
69-14 September 1, 2002.
69-15 SECTION 1.48. The change in law made by this Act in adding
69-16 Section 2306.6728, Government Code, applies only to a low income
69-17 housing tax credit property for which an application for an
69-18 allocation of low income housing tax credits is received by the
69-19 Texas Department of Housing and Community Affairs on or after
69-20 August 10, 1993.
69-21 ARTICLE 2
69-22 SECTION 2.01. Section 2306.004, Government Code, is amended
69-23 by adding Subdivisions (31) through (34) to read as follows:
69-24 (31) "Economic submarket" means a group of borrowers
69-25 who have common home mortgage loan market eligibility
69-26 characteristics, including income level, credit history or credit
70-1 score, and employment characteristics, that are similar to Standard
70-2 and Poor's credit underwriting criteria.
70-3 (32) "Geographic submarket" means a geographic region
70-4 in the state, including a county, census tract, or municipality,
70-5 that shares similar levels of access to home mortgage credit from
70-6 the private home mortgage lending industry, as determined by the
70-7 department based on home mortgage lending data published by federal
70-8 and state banking regulatory agencies.
70-9 (33) "Rural county" means a county that is outside the
70-10 boundaries of a primary metropolitan statistical area or a
70-11 metropolitan statistical area.
70-12 (34) "Subprime loan" means a loan that is originated
70-13 by a lender designated as a subprime lender on the subprime lender
70-14 list maintained by the United States Department of Housing and
70-15 Urban Development or identified as a lender primarily engaged in
70-16 subprime lending under Section 2306.143.
70-17 SECTION 2.02. Section 2306.142, Government Code, is amended
70-18 to read as follows:
70-19 Sec. 2306.142. AUTHORIZATION OF BONDS. (a) Subject to the
70-20 requirements of this section [In its discretion], the board shall
70-21 authorize all bonds issued by the department.
70-22 (b) If the issuance is authorized by the board, the
70-23 department shall issue single-family mortgage revenue bonds to make
70-24 home mortgage credit available for the purchase of newly
70-25 constructed or previously owned single-family homes to economic and
70-26 geographic submarkets of borrowers who are not served or who are
71-1 substantially underserved by the conventional, Federal National
71-2 Mortgage Association, Federal Home Loan Mortgage Corporation, or
71-3 Federal Housing Administration home mortgage lending industry or by
71-4 housing finance corporations organized under Chapter 394, Local
71-5 Government Code.
71-6 (c) The board by rule shall adopt a methodology for
71-7 determining through a market study the home mortgage credit needs
71-8 in underserved economic and geographic submarkets in the state. In
71-9 conducting the market study required by this subsection, the
71-10 department or its designee shall analyze for the underserved
71-11 economic and geographic submarkets, at a minimum, the following
71-12 factors:
71-13 (1) home ownership rates;
71-14 (2) loan volume;
71-15 (3) loan approval ratios;
71-16 (4) loan interest rates;
71-17 (5) loan terms;
71-18 (6) loan availability;
71-19 (7) type and number of dwelling units; and
71-20 (8) use of subprime mortgage loan products, comparing
71-21 the volume amount of subprime loans and interest rates to "A" paper
71-22 mortgage loans as defined by Standard and Poor's credit
71-23 underwriting criteria.
71-24 (d) The department or its designee shall analyze the
71-25 potential market demand, loan availability, and private sector home
71-26 mortgage lending rates available to extremely low, very low, low,
72-1 and moderate income borrowers in the rural counties of the state,
72-2 in census tracts in which the median family income is less than 80
72-3 percent of the median family income for the county in which the
72-4 census tract is located, and in the region of the state adjacent to
72-5 the international border of the state. The department or its
72-6 designee shall establish a process for serving those counties,
72-7 census tracts, and regions through the single-family mortgage
72-8 revenue bond program in a manner proportionate to the credit needs
72-9 of those areas as determined through the department's market study.
72-10 (e) Using the market study and the analysis required by this
72-11 section, the board shall evaluate the feasibility of a
72-12 single-family mortgage revenue bond program with loan marketing,
72-13 eligibility, underwriting, structuring, collection, and foreclosure
72-14 criteria and with loan services practices that are designed to meet
72-15 the credit needs of the underserved economic and geographic
72-16 submarkets of the state, including those submarkets served
72-17 disproportionately by subprime lenders.
72-18 (f) In evaluating a proposed bond program under this
72-19 section, the board shall consider, consistent with the reasonable
72-20 financial operation of the department, specific set-asides or
72-21 reservations of mortgage loans for underserved economic and
72-22 geographic submarkets in the state, including the reservation of
72-23 funds to serve borrowers who have "A-" to "B-" credit according to
72-24 Standard and Poor's credit underwriting criteria.
72-25 (g) The department may use any source of funds or subsidy
72-26 available to the department to provide credit enhancement, down
73-1 payment assistance, pre-homebuyer and post-homebuyer counseling,
73-2 interest rate reduction, and payment of incentive lender points to
73-3 accomplish the purposes of this section in a manner considered by
73-4 the board to be consistent with the reasonable financial operation
73-5 of the department.
73-6 (h) In allocating funds under Subsection (g), the
73-7 department's highest priority is to provide assistance to borrowers
73-8 in underserved economic and geographic submarkets in the state. If
73-9 the board determines that sufficient funds are available after
73-10 fully meeting the credit needs of borrowers in those submarkets,
73-11 the department may provide assistance to other borrowers.
73-12 (i) The board shall certify that each single-family mortgage
73-13 revenue bond issued by the department under this section is
73-14 structured in a manner that serves the credit needs of borrowers in
73-15 underserved economic and geographic submarkets in the state.
73-16 (j) After any board approval and certification of a
73-17 single-family mortgage revenue bond issuance, the department shall
73-18 submit the proposed bond issuance to the Bond Review Board for
73-19 review.
73-20 (k) In the state fiscal year beginning on September 1, 2001,
73-21 the department shall:
73-22 (1) adopt by rule a market study methodology as
73-23 required by Subsection (c);
73-24 (2) conduct the market study;
73-25 (3) propose for board review a single-family mortgage
73-26 revenue bond program, including loan feature details, a program for
74-1 borrower subsidies as provided by Subsections (g) and (h), and
74-2 origination and servicing infrastructure;
74-3 (4) identify reasonable capital markets financing;
74-4 (5) conduct a public hearing on the market study
74-5 results and the proposed bond program; and
74-6 (6) submit for review by the Bond Review Board the
74-7 market study results and, if approved and certified by the board,
74-8 the proposed bond program.
74-9 (l) In the state fiscal year beginning on September 1, 2002,
74-10 and in each subsequent state fiscal year, the department shall
74-11 allocate not less than 40 percent of the total single-family
74-12 mortgage revenue bond loan volume to meet the credit needs of
74-13 borrowers in underserved economic and geographic submarkets in the
74-14 state, subject to the identification of a satisfactory market
74-15 volume demand through the market study.
74-16 (m) On completion of the market study, if the board
74-17 determines in any year that bonds intended to be issued to achieve
74-18 the purposes of this section are unfeasible or would damage the
74-19 financial condition of the department, the board may formally
74-20 appeal to the Bond Review Board the requirements of Subsection (k)
74-21 or (l), as applicable. The Bond Review Board has sole authority to
74-22 modify or waive the required allocation levels.
74-23 (n) In addition to any other loan originators selected by
74-24 the department, the department shall authorize colonia self-help
74-25 centers and any other community-based, nonprofit institutions
74-26 considered appropriate by the board to originate loans on behalf of
75-1 the department. All non-financial institutions acting as loan
75-2 originators under this subsection must undergo adequate training,
75-3 as prescribed by the department, to participate in the bond
75-4 program. The department may require lenders to participate in
75-5 ongoing training and underwriting compliance audits to maintain
75-6 good standing to participate in the bond program. The department
75-7 may require that lenders meet appropriate eligibility standards as
75-8 prescribed by the department.
75-9 (o) The department shall structure all single-family
75-10 mortgage revenue bond issuances in a manner designed to recover the
75-11 full costs associated with conducting the activities required by
75-12 this section.
75-13 SECTION 2.03. Subchapter G, Chapter 2306, Government Code,
75-14 is amended by adding Section 2306.143 to read as follows:
75-15 Sec. 2306.143. ALTERNATIVE TO SUBPRIME LENDER LIST. (a) If
75-16 the United States Department of Housing and Urban Development
75-17 ceases to prepare or make public a subprime lender list, the market
75-18 study required by Section 2306.142 must annually survey the 100
75-19 largest refinancing lenders and the 100 largest home purchase loan
75-20 lenders in the state to identify lenders primarily engaged in
75-21 subprime lending.
75-22 (b) The lenders included in the survey must be identified on
75-23 the basis of home mortgage loan data reported by lenders under the
75-24 Home Mortgage Disclosure Act of 1975 (12 U.S.C. Section 2801 et
75-25 seq.) and the Community Reinvestment Act of 1977 (12 U.S.C. Section
75-26 2901 et seq.).
76-1 SECTION 2.04. Section 2306.583, Government Code, is amended
76-2 to read as follows:
76-3 Sec. 2306.583. SELF-HELP CENTERS: DESIGNATION. (a) The
76-4 department shall designate[:]
76-5 [(1)] a geographic area for the services provided by
76-6 each self-help center.
76-7 (b) In consultation with the colonia resident advisory
76-8 committee and the appropriate self-help center, the department
76-9 shall designate[; and]
76-10 [(2)] five colonias in each service area to receive
76-11 concentrated attention from that center.
76-12 (c) In consultation with the colonia resident advisory
76-13 committee and the appropriate self-help center, the [(b) The]
76-14 department may change the designation of colonias made under
76-15 Subsection (b) [(a)(2)].
76-16 SECTION 2.05. Section 2306.586, Government Code, is amended
76-17 by adding Subsection (e) to read as follows:
76-18 (e) Through a self-help center, a colonia resident may apply
76-19 for any direct loan or grant program operated by the department.
76-20 SECTION 2.06. Section 2306.587, Government Code, is amended
76-21 to read as follows:
76-22 Sec. 2306.587. OPERATION OF SELF-HELP CENTER; MONITORING.
76-23 (a) To operate a self-help center, the [The] department shall,
76-24 subject to the availability of revenue for that purpose, enter into
76-25 a four-year contract directly [for the operation of a self-help
76-26 center] with a local nonprofit organization, including a local
77-1 community action agency that qualifies as an eligible entity under
77-2 42 U.S.C. Section 9902, or a local housing authority that has
77-3 demonstrated the ability to carry out the functions of a self-help
77-4 center under this subchapter.
77-5 (b) The department is solely responsible for contract
77-6 oversight and for the monitoring of self-help centers under this
77-7 subchapter.
77-8 (c) The department and the self-help centers may apply for
77-9 and receive public or private gifts or grants to enable the centers
77-10 to achieve their purpose.
77-11 SECTION 2.07. Subsection (a), Section 2306.589, Government
77-12 Code, is amended to read as follows:
77-13 (a) The department shall establish a fund in the department
77-14 designated as the colonia set-aside fund. The department may
77-15 contribute money to the fund from any available source of revenue
77-16 that the department considers appropriate to implement the purposes
77-17 of this subchapter, except that the department may not use federal
77-18 community development block grant money authorized by Title I of
77-19 the Housing and Community Development Act of 1974 (42 U.S.C.
77-20 Section 5301 et seq.) unless the money is specifically appropriated
77-21 by the legislature for that purpose.
77-22 SECTION 2.08. Subsections (a) and (b), Section 2306.753,
77-23 Government Code, are amended to read as follows:
77-24 (a) Subject to this section, the department shall establish
77-25 eligibility requirements for an owner-builder to receive a loan
77-26 under this subchapter. The eligibility requirements must establish
78-1 a priority for loans made under this subchapter to owner-builders
78-2 with an annual income, as determined under Subsection (b)(1)
78-3 [(b)(2)], of less than $17,500.
78-4 (b) To be eligible for a loan under this subchapter, an
78-5 owner-builder:
78-6 (1) [must reside with at least two other persons
78-7 related to the owner-builder in the first degree by consanguinity
78-8 or affinity, as determined under Subchapter B, Chapter 573;]
78-9 [(2)] may not have an annual income that exceeds 60
78-10 percent, as determined by the department, of the greater of the
78-11 state or local median family income, when combined with the income
78-12 of any person who resides with the owner-builder;
78-13 (2) [(3)] must have resided in this state for the
78-14 preceding six months;
78-15 (3) [(4)] must have successfully completed an
78-16 owner-builder education class under Section 2306.756; and
78-17 (4) [(5)] must agree to:
78-18 (A) provide at least 60 percent of the labor
78-19 necessary to build the proposed housing by working through a
78-20 state-certified owner-builder housing program; or
78-21 (B) provide an amount of labor equivalent to the
78-22 amount required under Paragraph (A) in connection with building
78-23 housing for others through a state-certified nonprofit
78-24 owner-builder housing program.
78-25 SECTION 2.09. Subsection (a) and (b), Section 2306.754,
78-26 Government Code, are amended to read as follows:
79-1 (a) The department may establish the minimum amount of a
79-2 loan under this subchapter, but a loan may not exceed $30,000
79-3 [$25,000].
79-4 (b) If it is not possible for an owner-builder to purchase
79-5 necessary real property and build adequate housing for $30,000
79-6 [$25,000], the owner-builder must obtain the amount necessary that
79-7 exceeds $30,000 [$25,000] from one or more local governmental
79-8 entities, nonprofit organizations, or private lenders. The total
79-9 amount of loans made by the department and other entities to an
79-10 owner-builder under this subchapter may not exceed $60,000.
79-11 SECTION 2.10. Section 2306.755, Government Code, is amended
79-12 to read as follows:
79-13 Sec. 2306.755. NONPROFIT OWNER-BUILDER HOUSING PROGRAMS.
79-14 (a) The department may certify nonprofit owner-builder housing
79-15 programs operated by a tax-exempt organization listed under Section
79-16 501(c)(3), Internal Revenue Code of 1986, to:
79-17 (1) qualify potential owner-builders for loans under
79-18 this subchapter;
79-19 (2) provide owner-builder education classes under
79-20 Section 2306.756;
79-21 (3) assist owner-builders in building housing; and
79-22 (4) originate or service [administer] loans made [by
79-23 the department] under this subchapter.
79-24 (b) The department by rule shall adopt procedures for the
79-25 certification of nonprofit owner-builder housing programs under
79-26 this section.
80-1 SECTION 2.11. Section 2306.758, Government Code, is amended
80-2 by amending Subsection (b) and adding Subsection (c) to read as
80-3 follows:
80-4 (b) The department may also make loans under this subchapter
80-5 from:
80-6 (1) available funds in the housing trust fund
80-7 established under Section 2306.201;
80-8 (2) federal block grants that may be used for the
80-9 purposes of this subchapter; and
80-10 (3) the owner-builder revolving loan fund established
80-11 under Section 2306.7581 [amounts received by the department in
80-12 repayment of loans made under this subchapter].
80-13 (c) In a state fiscal year, the department may use not more
80-14 than 10 percent of the revenue available for purposes of this
80-15 subchapter to enhance the ability of tax-exempt organizations
80-16 described by Section 2306.755(a) to implement the purposes of this
80-17 chapter.
80-18 SECTION 2.12. Subchapter FF, Chapter 2306, Government Code,
80-19 is amended by adding Section 2306.7581 to read as follows:
80-20 Sec. 2306.7581. OWNER-BUILDER REVOLVING LOAN FUND. (a) The
80-21 department shall establish an owner-builder revolving loan fund in
80-22 the department for the sole purpose of funding loans under this
80-23 subchapter.
80-24 (a-1) Each state fiscal year the department shall transfer
80-25 at least $3 million to the owner-builder revolving fund from money
80-26 received under the federal HOME Investment Partnerships program
81-1 established under Title II of the Cranston-Gonzalez National
81-2 Affordable Housing Act (42 U.S.C. Section 12701 et seq.), from
81-3 money in the housing trust fund, or from money appropriated by the
81-4 legislature to the department. This subsection expires August 31,
81-5 2010.
81-6 (b) The department shall deposit money received in repayment
81-7 of a loan under this subchapter to the owner-builder revolving loan
81-8 fund.
81-9 SECTION 2.13. Chapter 2306, Government Code, is amended by
81-10 adding Subchapter GG to read as follows:
81-11 SUBCHAPTER GG. COLONIA MODEL SUBDIVISION PROGRAM
81-12 Sec. 2306.781. DEFINITION. In this subchapter, "program"
81-13 means the colonia model subdivision program established under this
81-14 subchapter.
81-15 Sec. 2306.782. ESTABLISHMENT OF PROGRAM. The department
81-16 shall establish the colonia model subdivision program to promote
81-17 the development of new, high-quality, residential subdivisions that
81-18 provide:
81-19 (1) alternatives to substandard colonias; and
81-20 (2) housing options affordable to individuals and
81-21 families of extremely low and very low income who would otherwise
81-22 move into substandard colonias.
81-23 Sec. 2306.783. COLONIA MODEL SUBDIVISION REVOLVING LOAN
81-24 FUND. (a) The department shall establish a colonia model
81-25 subdivision revolving loan fund in the department. Money in the
81-26 fund may be used only for purposes of the program.
82-1 (a-1) The department may transfer money into the colonia
82-2 model subdivision revolving fund using any available source of
82-3 revenue.
82-4 (a-2) On application, the department may provide a loan
82-5 under this subchapter through an eligible political subdivision
82-6 using money from the portion of community development block grant
82-7 that is set aside under federal law to provide financial assistance
82-8 to colonias. In a state fiscal year, the department may not
82-9 provide loans under this subchapter using more than $2 million from
82-10 the set-aside for colonias.
82-11 (a-3) Subsections (a-1) and (a-2) and this subsection expire
82-12 August 31, 2010.
82-13 (b) The department shall deposit money received in repayment
82-14 of loans under this subchapter to the colonia model subdivision
82-15 revolving loan fund.
82-16 Sec. 2306.784. SUBDIVISION COMPLIANCE. Any subdivision
82-17 created with assistance from the colonia model subdivision
82-18 revolving loan fund must fully comply with all state and local
82-19 laws, including any process established under state or local law
82-20 for subdividing real property.
82-21 Sec. 2306.785. PROGRAM LOANS. (a) The department may make
82-22 loans under the program only to:
82-23 (1) colonia self-help centers established under
82-24 Subchapter Z; and
82-25 (2) community housing development organizations
82-26 certified by the department.
83-1 (b) A loan made under the program may be used only for the
83-2 payment of:
83-3 (1) costs associated with the purchase of real
83-4 property;
83-5 (2) costs of surveying, platting, and subdividing or
83-6 resubdividing real property;
83-7 (3) fees, insurance costs, or recording costs
83-8 associated with the development of the subdivision;
83-9 (4) costs of providing proper infrastructure necessary
83-10 to support residential uses;
83-11 (5) real estate commissions and marketing fees; and
83-12 (6) any other costs as the department by rule
83-13 determines to be reasonable and prudent to advance the purposes of
83-14 this subchapter.
83-15 (c) A loan made by the department under the program may not
83-16 bear interest and may not exceed a term of 36 months.
83-17 (d) The department may offer a borrower under the program
83-18 one loan renewal for each subdivision.
83-19 Sec. 2306.786. ADMINISTRATION OF PROGRAM; RULES. (a) In
83-20 administering the program, the department by rule shall adopt:
83-21 (1) any subdivision standards in excess of local
83-22 standards the department considers necessary;
83-23 (2) loan application procedures;
83-24 (3) program guidelines; and
83-25 (4) contract award procedures.
83-26 (b) The department shall adopt rules to:
84-1 (1) ensure that a borrower under the program sells
84-2 real property under the program only to an individual borrower,
84-3 nonprofit housing developer, or for-profit housing developer for
84-4 the purposes of constructing residential dwelling units; and
84-5 (2) require a borrower under the program to convey
84-6 real property under the program at a cost that is affordable to:
84-7 (A) individuals and families of extremely low
84-8 income; or
84-9 (B) individuals and families of very low income.
84-10 SECTION 2.14. Subchapter B, Chapter 11, Tax Code, is amended
84-11 by adding Section 11.184 to read as follows:
84-12 Sec. 11.184. COLONIA MODEL SUBDIVISION PROGRAM. (a) An
84-13 organization is entitled to an exemption from taxation of
84-14 unimproved real property it owns if the organization:
84-15 (1) meets the requirements of a charitable
84-16 organization provided by Sections 11.18(e) and (f);
84-17 (2) purchased the property or is developing the
84-18 property with proceeds of a loan made by the Texas Department of
84-19 Housing and Community Affairs under the colonia model subdivision
84-20 program under Subchapter GG, Chapter 2306, Government Code; and
84-21 (3) owns the property for the purpose of developing a
84-22 model colonia subdivision.
84-23 (b) Property may not be exempted under Subsection (a) after
84-24 the fifth anniversary of the date the organization acquires the
84-25 property.
84-26 (c) An organization entitled to an exemption under
85-1 Subsection (a) is also entitled to an exemption from taxation of
85-2 any building or tangible personal property the organization owns
85-3 and uses in the administration of its acquisition, building,
85-4 repair, or sale of property. To qualify for an exemption under
85-5 this subsection, property must be used exclusively by the
85-6 charitable organization, except that another individual or
85-7 organization may use the property for activities incidental to the
85-8 charitable organization's use that benefit the beneficiaries of the
85-9 charitable organization.
85-10 (d) For the purposes of Subsection (e), the chief appraiser
85-11 shall determine the market value of property exempted under
85-12 Subsection (a) and shall record the market value in the appraisal
85-13 records.
85-14 (e) If the organization that owns improved or unimproved
85-15 real property that has been exempted under Subsection (a) sells the
85-16 property to a person other than a person described by Section
85-17 2306.786(b)(1), Government Code, a penalty is imposed on the
85-18 property equal to the amount of the taxes that would have been
85-19 imposed on the property in each tax year that the property was
85-20 exempted from taxation under Subsection (a), plus interest at an
85-21 annual rate of 12 percent computed from the dates on which the
85-22 taxes would have become due.
85-23 SECTION 2.15. If the administration of the federal community
85-24 development block grant program is transferred to an agency other
85-25 than the Texas Department of Housing and Community Affairs, the new
85-26 administering agency shall enter into a memorandum of understanding
86-1 with the Texas Department of Housing and Community Affairs to
86-2 permit the housing department to receive and administer the portion
86-3 of community development block grant money specifically allocated
86-4 under the General Appropriations Act to fund the operation of
86-5 colonia self-help centers. The memorandum must require the new
86-6 administering agency to transfer to the housing department a
86-7 portion of the agency's total administrative funds in the same
86-8 ratio that the portion of community development block grant money
86-9 allocated for the self-help centers bears to the total yearly
86-10 allocation of community development block grant money. The
86-11 memorandum must require the new administering agency to continue to
86-12 fund the housing department's border field offices through the
86-13 community development block grant program and must require the
86-14 housing department to exercise oversight and supervision over those
86-15 field offices and staff.
86-16 SECTION 2.16. Section 2306.760, Government Code, is
86-17 repealed.
86-18 ARTICLE 3
86-19 SECTION 3.01. Subchapter A, Chapter 2306, Government Code,
86-20 is amended by adding Section 2306.008 to read as follows:
86-21 Sec. 2306.008. PRESERVATION OF AFFORDABLE HOUSING. (a) The
86-22 department shall support in the manner described by Subsection (b)
86-23 the preservation of affordable housing for individuals with special
86-24 needs, as defined by Section 2306.511, and individuals and families
86-25 of low income at any location considered necessary by the
86-26 department.
87-1 (b) The department shall support the preservation of
87-2 affordable housing under this section by:
87-3 (1) making low interest financing and grants available
87-4 to private for-profit and nonprofit buyers who seek to acquire,
87-5 preserve, and rehabilitate affordable housing; and
87-6 (2) prioritizing available funding and financing
87-7 resources for affordable housing preservation activities.
87-8 SECTION 3.02. Subchapter H, Chapter 2306, Government Code,
87-9 is amended by adding Section 2306.185 to read as follows:
87-10 Sec. 2306.185. LONG-TERM AFFORDABILITY AND SAFETY OF
87-11 MULTIFAMILY RENTAL HOUSING DEVELOPMENTS. (a) The department shall
87-12 adopt policies and procedures to ensure that, for a multifamily
87-13 rental housing development funded through loans, grants, or tax
87-14 credits under this chapter, the owner of the development:
87-15 (1) keeps the rents affordable for low income tenants
87-16 for the longest period that is economically feasible; and
87-17 (2) provides regular maintenance to keep the
87-18 development sanitary, decent, and safe.
87-19 (b) In implementing Subsection (a)(1) and in developing
87-20 underwriting standards and application scoring criteria for the
87-21 award of loans, grants, or tax credits to multifamily developments,
87-22 the department shall ensure that the economic benefits of longer
87-23 affordability terms and below market rate rents are accurately
87-24 assessed and considered.
87-25 (c) The department shall require that a recipient of funding
87-26 maintains the affordability of the multifamily housing development
88-1 for households of extremely low, very low, low, and moderate
88-2 incomes for the greater of a 30-year period from the date the
88-3 recipient takes legal possession of the housing or the remaining
88-4 term of the existing federal government assistance. In addition,
88-5 the agreement between the department and the recipient shall
88-6 require the renewal of rental subsidies if available and if the
88-7 subsidies are sufficient to maintain the economic viability of the
88-8 multifamily development.
88-9 (d) The development restrictions provided by Subsection (a)
88-10 and Section 2306.269 are enforceable by the department, by tenants
88-11 of the development, or by private parties against the initial owner
88-12 or any subsequent owner. The department shall require a land use
88-13 restriction agreement providing for enforcement of the restrictions
88-14 by the department, a tenant, or a private party that includes the
88-15 right to recover reasonable attorney's fees if the party seeking
88-16 enforcement of the restriction is successful.
88-17 (e) Subsections (c) and (d) and Section 2306.269 apply only
88-18 to multifamily rental housing developments to which the department
88-19 is providing one or more of the following forms of assistance:
88-20 (1) a loan or grant in an amount greater than 33
88-21 percent of the market value of the development on the date the
88-22 recipient took legal possession of the development;
88-23 (2) a loan guarantee for a loan in an amount greater
88-24 than 33 percent of the market value of the development on the date
88-25 the recipient took legal title to the development; or
88-26 (3) a low income housing tax credit.
89-1 (f) An owner of the housing development who intends to sell,
89-2 lease, prepay the loan insured by the United States Department of
89-3 Housing and Urban Development, opt out of a housing assistance
89-4 payments contract under Section 8, United States Housing Act of
89-5 1937 (42 U.S.C. Section 1437f), or otherwise dispose of the
89-6 development shall agree to provide notice to the department at
89-7 least 12 months before the date of any attempt to dispose of the
89-8 development, prepay the loan, or opt out of the Section 8 contract
89-9 to enable the department to attempt to locate a buyer who will
89-10 conform to the development restrictions provided by this section.
89-11 (g) This section does not apply to a multifamily rental
89-12 housing development supported by qualified 501(c)(3) bonds.
89-13 SECTION 3.03. Subchapter K, Chapter 2306, Government Code,
89-14 is amended by adding Section 2306.2561 to read as follows:
89-15 Sec. 2306.2561. AFFORDABLE HOUSING PRESERVATION PROGRAM:
89-16 LOANS AND GRANTS. (a) The department, through the housing finance
89-17 division, shall provide loans and grants to political subdivisions,
89-18 housing finance corporations, public housing authorities,
89-19 for-profit organizations, nonprofit organizations, and
89-20 income-eligible individuals, families, and households for purposes
89-21 of rehabilitating housing to preserve affordability of the housing.
89-22 (b) The department may use any available revenue, including
89-23 legislative appropriations, to provide loans and grants under this
89-24 section.
89-25 SECTION 3.04. Section 2306.269, Government Code, is amended
89-26 to read as follows:
90-1 Sec. 2306.269. TENANT AND MANAGER SELECTION. (a) The
90-2 department shall set standards for tenant and management selection
90-3 by a housing sponsor.
90-4 (b) The department shall prohibit a multifamily rental
90-5 housing development funded or administered by the department,
90-6 including a development supported with a housing tax credit
90-7 allocation under Subchapter DD, from:
90-8 (1) excluding an individual or family from admission
90-9 to the development because the individual or family participates in
90-10 the housing choice voucher program under Section 8, United States
90-11 Housing Act of 1937 (42 U.S.C. Section 1437f); and
90-12 (2) using a financial or minimum income standard for
90-13 an individual or family participating in the voucher program
90-14 described by Subdivision (1) that requires the individual or family
90-15 to have a monthly income of more than 2-1/2 times the individual's
90-16 or family's share of the total monthly rent payable to the owner of
90-17 the development.
90-18 SECTION 3.05. Chapter 2306, Government Code, is amended by
90-19 adding Subchapter HH to read as follows:
90-20 SUBCHAPTER HH. AFFORDABLE HOUSING PRESERVATION
90-21 Sec. 2306.801. DEFINITION. In this subchapter, "federally
90-22 subsidized" means receiving financial assistance through a federal
90-23 program administered by the Secretary of Housing and Urban
90-24 Development or the Secretary of Agriculture under which housing
90-25 assistance is provided on the basis of income, including a program
90-26 under:
91-1 (1) Section 221(d), National Housing Act (12 U.S.C.
91-2 Section 1715l(d));
91-3 (2) Section 236, National Housing Act (12 U.S.C.
91-4 Section 1715z-1);
91-5 (3) Section 202, Housing Act of 1959 (12 U.S.C.
91-6 Section 1701q);
91-7 (4) Section 101, Housing and Urban Development Act of
91-8 1965 (12 U.S.C. Section 1701s);
91-9 (5) Section 514, 515, or 516, Housing Act of 1949 (42
91-10 U.S.C. Section 1484, 1485, or 1486); or
91-11 (6) Section 8, United States Housing Act of 1937 (42
91-12 U.S.C. Section 1437f).
91-13 Sec. 2306.802. MULTIFAMILY HOUSING PRESERVATION CLASSES.
91-14 The department shall establish two classes of priorities of
91-15 developments to preserve multifamily housing. The classes, in
91-16 order of descending priority, are:
91-17 (1) Class A, which includes any federally subsidized
91-18 multifamily housing development at risk because the contract
91-19 granting a federal subsidy with a stipulation to maintain
91-20 affordability is nearing expiration or because the
91-21 government-insured mortgage on the property is eligible for
91-22 prepayment or near the end of its mortgage term; and
91-23 (2) Class B, which includes any other multifamily
91-24 housing development with low income use or rental affordability
91-25 restrictions.
91-26 Sec. 2306.803. AT-RISK MULTIFAMILY HOUSING: IDENTIFICATION,
92-1 PRIORITIZATION, AND PRESERVATION. (a) The department shall
92-2 determine the name and location of and the number of units in each
92-3 multifamily housing development that is at risk of losing its low
92-4 income use restrictions and subsidies and that meets the
92-5 requirements of a Class A priority described by Section 2306.802.
92-6 (b) The department shall maintain an accurate list of those
92-7 developments on the department's website.
92-8 (c) The department shall develop cost estimates for the
92-9 preservation and rehabilitation of the developments in priority
92-10 Class A.
92-11 (d) The department shall contact owners of developments
92-12 assigned a Class A priority under this section and shall attempt to
92-13 negotiate with those owners to ensure continued affordability for
92-14 individuals and families of low income under the federal housing
92-15 assistance program for those developments.
92-16 Sec. 2306.804. USE OF HOUSING PRESERVATION RESOURCES.
92-17 (a) To the extent possible, the department shall use available
92-18 resources for the preservation and rehabilitation of the
92-19 multifamily housing developments identified and listed under
92-20 Section 2306.803.
92-21 (b) To the extent possible, the department shall allocate
92-22 low income housing tax credits to applications involving the
92-23 preservation of developments assigned a Class A priority under
92-24 Section 2306.803 and in both urban and rural communities in
92-25 approximate proportion to the housing needs of each uniform state
92-26 service region.
93-1 (c) The department shall give priority to providing
93-2 financing or funding to a buyer who is supported or approved by an
93-3 association of residents of the multifamily housing development.
93-4 Sec. 2306.805. HOUSING PRESERVATION INCENTIVES PROGRAM. (a)
93-5 The department shall establish and administer a housing
93-6 preservation incentives program to provide incentives through loan
93-7 guarantees, loans, and grants to political subdivisions, housing
93-8 finance corporations, public housing authorities, for-profit
93-9 organizations, and nonprofit organizations for the acquisition and
93-10 rehabilitation of multifamily housing developments assigned a Class
93-11 A or Class B priority under Section 2306.803.
93-12 (b) A loan issued by a lender participating in the program
93-13 must be fully underwritten by the department.
93-14 (c) Consistent with the requirements of federal law, the
93-15 department may guarantee loans issued under the program by
93-16 obtaining a Section 108 loan guarantee from the United States
93-17 Department of Housing and Urban Development under the Housing and
93-18 Community Development Act of 1974 (42 U.S.C. Section 5308).
93-19 (d) Grants under this program may include direct subsidies
93-20 offered as an equity contribution to enable an owner to acquire and
93-21 rehabilitate a Class A or Class B priority property described by
93-22 Section 2306.802. Grants may also be offered to provide
93-23 consultation and technical assistance services to a nonprofit
93-24 organization seeking to acquire and rehabilitate a Class A or Class
93-25 B priority property.
93-26 (e) A housing development that benefits from the incentive
94-1 program under this section is subject to the requirements
94-2 concerning:
94-3 (1) long-term affordability and safety prescribed by
94-4 Section 2306.185; and
94-5 (2) tenant and manager selection prescribed by Section
94-6 2306.269.
94-7 SECTION 3.06. (a) Chapter 2306, Government Code, is amended
94-8 by adding Section 2306.806 to Subchapter HH, as added by this Act,
94-9 to read as follows:
94-10 Sec. 2306.806. APPROVAL OF OFFICE OF RURAL COMMUNITY
94-11 AFFAIRS. The department must obtain the approval of the executive
94-12 director of the Office of Rural Community Affairs to guarantee
94-13 loans as described by Section 2306.805(c).
94-14 (b) This section takes effect only if H.B. No. 7, Acts of
94-15 the 77th Legislature, Regular Session, 2001, becomes law. If that
94-16 bill does not become law, this section has no effect.
94-17 SECTION 3.07. Chapter 2306, Government Code, is amended by
94-18 adding Subchapter II to read as follows:
94-19 SUBCHAPTER II. MULTIFAMILY HOUSING DEVELOPMENTS:
94-20 PRESERVATION OF AFFORDABILITY
94-21 Sec. 2306.851. APPLICATION. (a) This subchapter applies
94-22 only to a property owner of a multifamily housing development that
94-23 is insured or assisted under a program under Section 8, United
94-24 States Housing Act of 1937 (42 U.S.C. Section 1437f), or that is:
94-25 (1) insured or assisted under a program under:
94-26 (A) Section 221(d)(3), National Housing Act (12
95-1 U.S.C. Section 1715l);
95-2 (B) Section 236, National Housing Act (12 U.S.C.
95-3 Section 1715z-1); or
95-4 (C) Section 514, 515, or 516, Housing Act of
95-5 1949 (42 U.S.C. Section 1484, 1485, or 1486); and
95-6 (2) financed by a mortgage that is eligible for
95-7 prepayment at the option of the property owner.
95-8 (b) This subchapter does not apply to the disposal of
95-9 property because of:
95-10 (1) a governmental taking by eminent domain or
95-11 negotiated purchase;
95-12 (2) a foreclosure action;
95-13 (3) a transfer by gift, devise, or operation of law;
95-14 or
95-15 (4) a sale to a person who would be entitled to an
95-16 interest in the property if the property owner died intestate.
95-17 (c) This subchapter does not apply to property included in a
95-18 restructuring program with a participating administrative entity
95-19 designated by the United States Department of Housing and Urban
95-20 Development.
95-21 Sec. 2306.852. PROPERTY OWNER RESTRICTION. Except as
95-22 provided by this subchapter, a property owner to whom this
95-23 subchapter applies may not sell, lease, or otherwise dispose of a
95-24 multifamily housing development described by Section 2306.851(a) or
95-25 take any other action if that action will cause the disruption or
95-26 discontinuance of:
96-1 (1) the development's federal insurance or assistance;
96-2 or
96-3 (2) the provision of low income housing assistance to
96-4 residents of the development.
96-5 Sec. 2306.853. NOTICE OF INTENT. (a) A property owner of a
96-6 multifamily housing development may take an action, sell, lease, or
96-7 otherwise dispose of the development subject to the restriction
96-8 under Section 2306.852 if the property owner provides notice by
96-9 mail of the owner's intent to the residents of the development and
96-10 to the department.
96-11 (b) The notice required by Subsection (a) must indicate, as
96-12 applicable, that the property owner intends to prepay a mortgage
96-13 under a program described by Section 2306.851(a)(1) or that a
96-14 contract formed under a program under Section 8, United States
96-15 Housing Act of 1937 (42 U.S.C. Section 1437f), will expire.
96-16 (c) The property owner shall provide the notice required by
96-17 Subsection (a) before the 90th day preceding the date of mortgage
96-18 prepayment or contract expiration, as applicable, and as otherwise
96-19 required by federal law.
96-20 (d) The notice required by this section is sufficient if the
96-21 notice meets the requirements of Section 8(c)(8), United States
96-22 Housing Act of 1937 (42 U.S.C. Section 1437f(c)(8)).
96-23 SECTION 3.08. (a) The Texas Department of Housing and
96-24 Community Affairs shall adopt the policies and procedures on the
96-25 long-term affordability and safety of multifamily rental housing
96-26 developments under Section 2306.185, Government Code, as added by
97-1 this Act, not later than November 1, 2001.
97-2 (b) The enforcement of the restrictions concerning
97-3 multifamily rental housing developments under Section 2306.185,
97-4 Government Code, as added by this Act, applies only to developments
97-5 that receive assistance from the Texas Department of Housing and
97-6 Community Affairs on or after January 1, 2002.
97-7 (c) The enforcement of restrictions concerning tenant and
97-8 manager selection under Section 2306.269, Government Code, as
97-9 amended by this Act, applies only to housing developments that
97-10 receive assistance from the Texas Department of Housing and
97-11 Community Affairs on or after January 1, 2002.
97-12 (d) The Texas Department of Housing and Community Affairs
97-13 shall create an initial list of multifamily housing developments
97-14 that are ranked by priority as required by Section 2306.803,
97-15 Government Code, as added by this Act, not later than January 1,
97-16 2002.
97-17 (e) If community development block grant funds are
97-18 transferred to another state agency, the Texas Department of
97-19 Housing and Community Affairs shall negotiate a memorandum of
97-20 understanding to permit the implementation of Subsection (c),
97-21 Section 2306.805, Government Code, as added by this Act.
97-22 (f) The changes in law made by this article apply to a
97-23 multifamily housing development described by Section 2306.851,
97-24 Government Code, as added by this Act, that a property owner
97-25 intends to sell, lease, or otherwise dispose of on or after January
97-26 1, 2002.
98-1 (g) The outstanding balance of Section 108 loan guarantees
98-2 issued as described by Subsection (c), Section 2306.805, Government
98-3 Code, as added by this Act, may not exceed $10 million. This
98-4 subsection expires December 31, 2004.
98-5 SECTION 3.09. (a) Except as provided by Subsection (b) of
98-6 this section, the change in law made by this Act in adding
98-7 Subsection (b), Section 2306.269, Government Code, applies only to
98-8 a multifamily rental housing development for which the funding or
98-9 administration by the Texas Department of Housing and Community
98-10 Affairs begins on or after the effective date of this Act.
98-11 (b) If the multifamily rental housing development funded or
98-12 administered by the Texas Department of Housing and Community
98-13 Affairs is a low income housing tax credit property, the change in
98-14 law made by this Act in adding Subsection (b), Section 2306.269,
98-15 Government Code, applies only if an application for an allocation
98-16 of low income housing tax credits for that development is received
98-17 by the department on or after August 10, 1993.
98-18 ARTICLE 4
98-19 SECTION 4.01. Subsection (c), Section 2306.072, Government
98-20 Code, is amended to read as follows:
98-21 (c) The report must include:
98-22 (1) a complete operating and financial statement of
98-23 the department;
98-24 (2) a comprehensive statement of the activities of the
98-25 department during the preceding year to address the needs
98-26 identified in the state low income housing plan prepared as
99-1 required by Section 2306.0721, including:
99-2 (A) a statistical and narrative analysis of the
99-3 department's performance in addressing the housing needs of
99-4 individuals and families of low and very low income;
99-5 (B) the ethnic and racial composition of
99-6 individuals and families applying for and receiving assistance from
99-7 each housing-related program operated by the department; and
99-8 (C) the department's progress in meeting the
99-9 goals established in the previous housing plan;
99-10 (3) an explanation of the efforts made by the
99-11 department to ensure the participation of individuals of low income
99-12 and their community-based institutions in department programs that
99-13 affect them;
99-14 (4) a statement of the evidence that the department
99-15 has made an affirmative effort to ensure the involvement of
99-16 individuals of low income and their community-based institutions in
99-17 the allocation of funds and the planning process;
99-18 (5) a statistical analysis, delineated according to
99-19 each ethnic and racial group served by the department, that
99-20 indicates the progress made by the department in implementing the
99-21 state low income housing plan in each of the uniform state service
99-22 regions;
99-23 (6) an analysis, based on information provided by the
99-24 fair housing sponsor reports required under Section 2306.0724 and
99-25 other available data, of fair housing opportunities in each housing
99-26 development that receives financial assistance from the department
100-1 that includes the following information for each housing
100-2 development that contains 20 or more living units:
100-3 (A) the street address and municipality or
100-4 county in which the property is located;
100-5 (B) the telephone number of the property
100-6 management or leasing agent;
100-7 (C) the total number of units, reported by
100-8 bedroom size;
100-9 (D) [(C)] the total number of units, reported by
100-10 bedroom size, designed for individuals who are physically
100-11 challenged or who have special needs and the number of these
100-12 individuals served annually [as reported by each housing sponsor];
100-13 (E) the rent for each type of rental unit,
100-14 reported by bedroom size [(D) a statistical analysis of average
100-15 rents reported by county];
100-16 (F) [(E)] the race or ethnic makeup of each
100-17 project [as reported annually by each housing sponsor];
100-18 (G) [(F)] the number of units occupied by
100-19 individuals receiving government-supported housing assistance and
100-20 the type of assistance received [as reported by each housing
100-21 sponsor];
100-22 (H) the number of units occupied by individuals
100-23 and families of extremely low income, very low income, low income,
100-24 moderate income, and other levels of income;
100-25 (I) [(G)] a statement as to whether the
100-26 department has been notified of a violation of the fair housing law
101-1 that has been filed with the United States Department of Housing
101-2 and Urban Development, the Commission on Human Rights, or the
101-3 United States Department of Justice; and
101-4 (J) [(H)] a statement as to whether the
101-5 development has any instances of material noncompliance with bond
101-6 indentures or deed restrictions discovered through the normal
101-7 monitoring activities and procedures that include meeting occupancy
101-8 requirements or rent restrictions imposed by deed restriction or
101-9 financing agreements; [and]
101-10 (7) a report on the geographic distribution of low
101-11 income housing tax credits, the amount of unused low income housing
101-12 tax credits, and the amount of low income housing tax credits
101-13 received from the federal pool of unused funds from other states;
101-14 and
101-15 (8) a statistical analysis, based on information
101-16 provided by the fair housing sponsor reports required by Section
101-17 2306.0724 and other available data, of average rents reported by
101-18 county.
101-19 SECTION 4.02. Subchapter D, Chapter 2306, Government Code,
101-20 is amended by adding Section 2306.0724 to read as follows:
101-21 Sec. 2306.0724. FAIR HOUSING SPONSOR REPORT. (a) The
101-22 department shall require the owner of each housing development that
101-23 receives financial assistance from the department and that contains
101-24 20 or more living units to submit an annual fair housing sponsor
101-25 report. The report must include the relevant information necessary
101-26 for the analysis required by Section 2306.072(c)(6). In compiling
102-1 the information for the report, the owner of each housing
102-2 development shall use data current as of January 1 of the reporting
102-3 year.
102-4 (b) The department shall adopt rules regarding the procedure
102-5 for filing the report.
102-6 (c) The department shall maintain the reports in electronic
102-7 and hard-copy formats readily available to the public at no cost.
102-8 (d) A housing sponsor who fails to file a report in a timely
102-9 manner is subject to the following sanctions, as determined by the
102-10 department:
102-11 (1) denial of a request for additional funding; or
102-12 (2) an administrative penalty in an amount not to
102-13 exceed $1,000, assessed in the manner provided for an
102-14 administrative penalty under Section 2306.6023.
102-15 SECTION 4.03. Section 2306.077, Government Code, is amended
102-16 by adding Subsections (d) and (e) to read as follows:
102-17 (d) The department shall provide for annual housing sponsor
102-18 reports required by Section 2306.0724 to be filed through the
102-19 Internet.
102-20 (e) The department shall provide for reports regarding
102-21 housing units designed for persons with disabilities made under
102-22 Section 2306.078 to be filed through the Internet.
102-23 SECTION 4.04. Subchapter D, Chapter 2306, Government Code,
102-24 is amended by adding Section 2306.078 to read as follows:
102-25 Sec. 2306.078. INFORMATION REGARDING HOUSING FOR PERSONS
102-26 WITH DISABILITIES. (a) The department shall establish a system
103-1 that requires owners of state or federally assisted housing
103-2 developments with 20 or more housing units to report information
103-3 regarding housing units designed for persons with disabilities.
103-4 (b) The system must provide for each owner of a development
103-5 described by Subsection (a) with at least one housing unit designed
103-6 for a person with a disability to enter the following information
103-7 on the department's Internet site:
103-8 (1) the name, if any, of the development;
103-9 (2) the street address of the development;
103-10 (3) the number of housing units in the development
103-11 that are designed for persons with disabilities and that are
103-12 available for lease;
103-13 (4) the number of bedrooms in each housing unit
103-14 designed for a person with a disability;
103-15 (5) the special features that characterize each
103-16 housing unit's suitability for a person with a disability;
103-17 (6) the rent for each housing unit designed for a
103-18 person with a disability; and
103-19 (7) the telephone number and name of the development
103-20 manager or agent to whom inquiries by prospective tenants may be
103-21 made.
103-22 (c) The department shall require each owner to maintain
103-23 updated contact information under Subsection (b)(7) and shall
103-24 solicit the owner's voluntary provision of updated information
103-25 under Subsections (b)(3) and (6).
103-26 (d) The department shall make information provided under
104-1 this section available to the public in electronic and hard-copy
104-2 formats at no cost.
104-3 ARTICLE 5
104-4 SECTION 5.01. Subchapter D, Chapter 2306, Government Code,
104-5 is amended by adding Sections 2306.079 and 2306.080 to read as
104-6 follows:
104-7 Sec. 2306.079. REGIONAL DEVELOPMENT COORDINATOR. (a) In
104-8 this section:
104-9 (1) "Regional development coordinator" means a person
104-10 employed by or under contract with the department to perform the
104-11 duties described by this section.
104-12 (2) "Regional partner" means an entity such as a
104-13 regional planning commission, political subdivision, local
104-14 nonprofit organization, institution of higher education, community
104-15 housing development organization, housing finance corporation,
104-16 public housing authority, agricultural extension agent, local bank,
104-17 or field office or service center of the United States Department
104-18 of Agriculture Rural Development Texas that is engaged in
104-19 data-gathering projects related to the goals of the department.
104-20 (b) The department shall employ or contract with a regional
104-21 development coordinator for each uniform state service region of
104-22 this state. The primary responsibilities of a regional development
104-23 coordinator are:
104-24 (1) assisting local communities in determining how to
104-25 address affordable housing and community development needs;
104-26 (2) establishing regional planning and
105-1 resource-sharing partnerships; and
105-2 (3) facilitating the leveraging of available local,
105-3 state, and federal funds.
105-4 (c) A regional development coordinator shall:
105-5 (1) gather and manage data about affordable housing
105-6 and community development needs in the uniform state service region
105-7 the coordinator represents by:
105-8 (A) identifying and working with regional
105-9 partners;
105-10 (B) using a variety of data resources,
105-11 including:
105-12 (i) the United States Census Bureau;
105-13 (ii) the United States Department of
105-14 Housing and Urban Development;
105-15 (iii) the Texas State Data Center;
105-16 (iv) the Texas Real Estate Research
105-17 Center; and
105-18 (v) the office of the comptroller, the
105-19 Texas Department of Economic Development, and other state agencies;
105-20 (C) developing an analysis of the region's
105-21 affordable housing and community development needs based on the
105-22 data gathered and local and regional input; and
105-23 (D) establishing a framework for sharing the
105-24 data with the regional partners;
105-25 (2) use the data described by Subdivision (1) to
105-26 facilitate the development of a regional plan and shall encourage
106-1 the consensus of the regional partners concerning the plan;
106-2 (3) identify statewide and national partners for
106-3 meeting the region's affordable housing and community development
106-4 needs, including the United States Department of Housing and Urban
106-5 Development, the United States Department of Agriculture Rural
106-6 Development Texas, the Texas State Affordable Housing Corporation,
106-7 statewide nonprofit entities, banking associations, developer
106-8 associations, and foundations; and
106-9 (4) provide an information clearinghouse for the
106-10 region that facilitates planning and resource sharing by
106-11 identifying programs that leverage local, state, and federal
106-12 financial aid.
106-13 (d) In each uniform state service region, the regional
106-14 planning commission and other regional partners shall establish an
106-15 advisory committee consisting of representatives of two or more
106-16 regional partners that shall:
106-17 (1) advise the department regarding the affordable
106-18 housing and community development needs of that region;
106-19 (2) assist the department in:
106-20 (A) assigning priorities to the affordable
106-21 housing and community development needs of that region;
106-22 (B) identifying resources to address those
106-23 needs; and
106-24 (C) implementing the low income housing plan as
106-25 applied to that region; and
106-26 (3) request and gather from political subdivisions and
107-1 other appropriate entities any affordable housing and community
107-2 development plans that are relevant to the development of the
107-3 regional plan described by Subsection (c), including local plans,
107-4 regional plans from regional planning commissions, and plans
107-5 developed for the United States Department of Housing and Urban
107-6 Development consolidated planning process.
107-7 Sec. 2306.080. DATABASE INFORMATION SPECIALIST. The
107-8 director shall appoint a database information specialist. The
107-9 primary responsibility of the database information specialist is to
107-10 provide for the effective and efficient dissemination to the public
107-11 of information related to affordable housing and community
107-12 development in a form that is accessible, widely available, and
107-13 easily used.
107-14 ARTICLE 6
107-15 SECTION 6.01. Subsection (c), Section 2306.111, Government
107-16 Code, is amended to read as follows:
107-17 (c) In administering federal housing funds provided to the
107-18 state under the Cranston-Gonzalez National Affordable Housing Act
107-19 (42 U.S.C. Section 12701 et seq.), the department shall expend at
107-20 least 95 percent of [give the highest priority to utilizing] these
107-21 funds for the benefit of non-participating small cities and rural
107-22 areas that do not qualify to receive funds under the
107-23 Cranston-Gonzalez National Affordable Housing Act directly from the
107-24 United States Department of Housing and Urban Development [unless
107-25 the department finds there is insufficient need and demand for
107-26 housing funds within these areas]. All funds not set aside under
108-1 this subsection shall be used for the benefit of persons with
108-2 disabilities who live in areas other than small cities and rural
108-3 areas.
108-4 ARTICLE 7
108-5 SECTION 7.01. Section 2306.223, Government Code, is amended
108-6 to read as follows:
108-7 Sec. 2306.223. CRITERIA FOR FINANCING HOUSING DEVELOPMENT OF
108-8 HOUSING SPONSOR. Notwithstanding any other provision of this
108-9 chapter, the department may not finance a housing development
108-10 undertaken by a housing sponsor under this chapter, unless the
108-11 department first determines that:
108-12 (1) the housing development is necessary to provide
108-13 needed decent, safe, and sanitary housing at rentals or prices that
108-14 individuals or families of low and very low income or families of
108-15 moderate income can afford;
108-16 (2) the housing sponsor undertaking the proposed
108-17 housing development will supply well-planned and well-designed
108-18 housing for individuals or families of low and very low income or
108-19 families of moderate income;
108-20 (3) the housing sponsor is financially responsible;
108-21 (4) the housing sponsor is not, or will not enter into
108-22 a contract for the proposed housing development with, a housing
108-23 developer that:
108-24 (A) is on the department's debarred list,
108-25 including any parts of that list that are derived from the debarred
108-26 list of the United States Department of Housing and Urban
109-1 Development;
109-2 (B) breached a contract with a public agency; or
109-3 (C) misrepresented to a subcontractor the extent
109-4 to which the developer has benefited from contracts or financial
109-5 assistance that has been awarded by a public agency, including the
109-6 scope of the developer's participation in contracts with the agency
109-7 and the amount of financial assistance awarded to the developer by
109-8 the agency;
109-9 (5) the financing of the housing development is a
109-10 public purpose and will provide a public benefit; and
109-11 (6) [(5)] the housing development will be undertaken
109-12 within the authority granted by this chapter to the housing finance
109-13 division and the housing sponsor.
109-14 SECTION 7.02. The change in law made by this Act to Section
109-15 2306.223, Government Code, applies only to an application for
109-16 financing a housing development that is submitted to the Texas
109-17 Department of Housing and Community Affairs on or after the
109-18 effective date of this Act.
109-19 ARTICLE 8
109-20 SECTION 8.01. Subchapter DD, Chapter 2306, Government Code,
109-21 is amended to read as follows:
109-22 SUBCHAPTER DD. LOW INCOME HOUSING TAX CREDIT PROGRAM
109-23 Sec. 2306.6701. PURPOSE. The department shall administer
109-24 the low income housing tax credit program to:
109-25 (1) encourage the development and preservation of
109-26 appropriate types of rental housing for households that have
110-1 difficulty finding suitable, affordable rental housing in the
110-2 private marketplace;
110-3 (2) maximize the number of suitable, affordable
110-4 residential rental units added to the state's housing supply;
110-5 (3) prevent losses for any reason to the state's
110-6 supply of suitable, affordable residential rental units by enabling
110-7 the rehabilitation of rental housing or by providing other
110-8 preventive financial support under this subchapter; and
110-9 (4) provide for the participation of for-profit
110-10 organizations and provide for and encourage the participation of
110-11 nonprofit organizations in the acquisition, development, and
110-12 operation of affordable housing developments in urban and rural
110-13 communities.
110-14 Sec. 2306.6702. DEFINITIONS. (a) In this subchapter:
110-15 (1) "Applicant" means any person or affiliate of a
110-16 person who files an application with the department requesting a
110-17 housing tax credit allocation.
110-18 (2) "Application" means an application filed with the
110-19 department by an applicant and includes any exhibits or other
110-20 supporting materials.
110-21 (3) "Application log" means a form containing at least
110-22 the information required by Section 2306.6709.
110-23 (4) "Application round" means the period beginning on
110-24 the date the department begins accepting applications and
110-25 continuing until all available housing tax credits are allocated,
110-26 but not extending past the last day of the calendar year.
111-1 (5) "At-risk development" means a development that:
111-2 (A) receives the benefit of a subsidy in the
111-3 form of a below-market interest rate loan, interest rate reduction,
111-4 rental subsidy, Section 8 housing assistance payment, rental
111-5 supplement payment, or rental assistance payment under the
111-6 following federal laws, as applicable:
111-7 (i) Sections 221(d)(3) and (5), National
111-8 Housing Act (12 U.S.C. Section 1715l);
111-9 (ii) Section 236, National Housing Act (12
111-10 U.S.C. Section 1715z-1);
111-11 (iii) Section 202, Housing Act of 1959 (12
111-12 U.S.C. Section 1701q);
111-13 (iv) Section 101, Housing and Urban
111-14 Development Act of 1965 (12 U.S.C. Section 1701s);
111-15 (v) the Section 8 Additional Assistance
111-16 Program for housing developments with HUD-Insured and HUD-Held
111-17 Mortgages administered by the United States Department of Housing
111-18 and Urban Development;
111-19 (vi) the Section 8 Housing Assistance
111-20 Program for the Disposition of HUD-Owned Projects administered by
111-21 the United States Department of Housing and Urban Development; or
111-22 (vii) Sections 514, 515, and 516, Housing
111-23 Act of 1949 (42 U.S.C. Sections 1484, 1485, and 1486); and
111-24 (B) is subject to the following conditions:
111-25 (i) the stipulation to maintain
111-26 affordability in the contract granting the subsidy is nearing
112-1 expiration; or
112-2 (ii) the federally insured mortgage on the
112-3 development is eligible for prepayment or is nearing the end of its
112-4 term.
112-5 (6) "Development" means a proposed qualified low
112-6 income housing project, as defined by Section 42(g), Internal
112-7 Revenue Code of 1986 (26 U.S.C. Section 42(g)), that consists of
112-8 one or more buildings containing multiple units, that is financed
112-9 under a common plan, and that is owned by the same person for
112-10 federal tax purposes, including a project consisting of multiple
112-11 buildings that:
112-12 (A) are located on scattered sites; and
112-13 (B) contain only rent-restricted units.
112-14 (7) "Development owner" means any person or affiliate
112-15 of a person who owns or proposes a development or expects to
112-16 acquire control of a development under a purchase contract approved
112-17 by the department.
112-18 (8) "Housing tax credit" means a tax credit allocated
112-19 under the low income housing tax credit program.
112-20 (9) "Land use restriction agreement" means an
112-21 agreement between the department, the development owner, and the
112-22 development owner's successors in interest that encumbers the
112-23 development with respect to the requirements of this subchapter and
112-24 the requirements of Section 42, Internal Revenue Code of 1986 (26
112-25 U.S.C. Section 42).
112-26 (10) "Qualified allocation plan" means a plan adopted
113-1 by the board under this subchapter that:
113-2 (A) provides the threshold, scoring, and
113-3 underwriting criteria based on housing priorities of the department
113-4 that are appropriate to local conditions;
113-5 (B) gives preference in housing tax credit
113-6 allocations to developments that, as compared to the other
113-7 developments:
113-8 (i) when practicable and feasible based on
113-9 available funding sources, serve the lowest income tenants; and
113-10 (ii) are affordable to qualified tenants
113-11 for the longest economically feasible period; and
113-12 (C) provides a procedure for the department, the
113-13 department's agent, or another private contractor of the department
113-14 to use in monitoring compliance with the qualified allocation plan
113-15 and this subchapter.
113-16 (11) "Related party" means the following individuals
113-17 or entities:
113-18 (A) the brothers, sisters, spouse, ancestors,
113-19 and descendants of a person within the third degree of
113-20 consanguinity, as determined by Chapter 573;
113-21 (B) a person and a corporation, if the person
113-22 owns more than 50 percent of the outstanding stock of the
113-23 corporation;
113-24 (C) two or more corporations that are connected
113-25 through stock ownership with a common parent possessing more than
113-26 50 percent of:
114-1 (i) the total combined voting power of all
114-2 classes of stock of each of the corporations that can vote;
114-3 (ii) the total value of shares of all
114-4 classes of stock of each of the corporations; or
114-5 (iii) the total value of shares of all
114-6 classes of stock of at least one of the corporations, excluding, in
114-7 computing that voting power or value, stock owned directly by the
114-8 other corporation;
114-9 (D) a grantor and fiduciary of any trust;
114-10 (E) a fiduciary of one trust and a fiduciary of
114-11 another trust, if the same person is a grantor of both trusts;
114-12 (F) a fiduciary of a trust and a beneficiary of
114-13 the trust;
114-14 (G) a fiduciary of a trust and a corporation if
114-15 more than 50 percent of the outstanding stock of the corporation is
114-16 owned by or for:
114-17 (i) the trust; or
114-18 (ii) a person who is a grantor of the
114-19 trust;
114-20 (H) a person or organization and an organization
114-21 that is tax-exempt under Section 501(a), Internal Revenue Code of
114-22 1986 (26 U.S.C. Section 501), and that is controlled by that person
114-23 or the person's family members or by that organization;
114-24 (I) a corporation and a partnership or joint
114-25 venture if the same persons own more than:
114-26 (i) 50 percent of the outstanding stock of
115-1 the corporation; and
115-2 (ii) 50 percent of the capital interest or
115-3 the profits' interest in the partnership or joint venture;
115-4 (J) an S corporation and another S corporation
115-5 if the same persons own more than 50 percent of the outstanding
115-6 stock of each corporation;
115-7 (K) an S corporation and a C corporation if the
115-8 same persons own more than 50 percent of the outstanding stock of
115-9 each corporation;
115-10 (L) a partnership and a person or organization
115-11 owning more than 50 percent of the capital interest or the profits'
115-12 interest in that partnership; or
115-13 (M) two partnerships, if the same person or
115-14 organization owns more than 50 percent of the capital interests or
115-15 profits' interests.
115-16 (12) "Rural area" means an area that is located:
115-17 (A) outside the boundaries of a primary
115-18 metropolitan statistical area or a metropolitan statistical area;
115-19 (B) within the boundaries of a primary
115-20 metropolitan statistical area or a metropolitan statistical area,
115-21 if the statistical area has a population of 20,000 or less and does
115-22 not share a boundary with an urban area; or
115-23 (C) in an area that is eligible for funding by
115-24 the Texas Rural Development Office of the United States Department
115-25 of Agriculture.
115-26 (13) "Rural development agency" means the state agency
116-1 designated by the legislature as primarily responsible for rural
116-2 area development in the state.
116-3 (14) "Set-aside" means a reservation of a portion of
116-4 the available housing tax credits to provide financial support for
116-5 specific types of housing or geographic locations or serve specific
116-6 types of applicants as permitted by the qualified allocation plan
116-7 on a priority basis.
116-8 (15) "Threshold criteria" means the criteria used to
116-9 determine whether the development satisfies the minimum level of
116-10 acceptability for consideration established in the department's
116-11 qualified allocation plan.
116-12 (16) "Unit" means any residential rental unit in a
116-13 development consisting of an accommodation, including a single room
116-14 used as an accommodation on a non-transient basis, that contains
116-15 separate and complete physical facilities and fixtures for living,
116-16 sleeping, eating, cooking, and sanitation.
116-17 (b) For purposes of Subsection (a)(11), the constructive
116-18 ownership provisions of Section 267, Internal Revenue Code of 1986
116-19 (26 U.S.C. Section 267), apply. The board may lower in the
116-20 qualified allocation plan the percentages described by Subsection
116-21 (a)(11).
116-22 Sec. 2306.67021. APPLICABILITY OF SUBCHAPTER. Except as
116-23 provided by Section 2306.6703, this subchapter does not apply to
116-24 the allocation of housing tax credits to developments financed
116-25 through the private activity bond program.
116-26 Sec. 2306.67022. QUALIFIED ALLOCATION PLAN; MANUAL. The
117-1 board annually shall adopt a qualified allocation plan and a
117-2 corresponding manual to provide information regarding the
117-3 administration of and eligibility for the low income housing tax
117-4 credit program.
117-5 Sec. 2306.6703. INELIGIBILITY FOR CONSIDERATION. An
117-6 application is ineligible for consideration under the low income
117-7 housing tax credit program if:
117-8 (1) at the time of application or at any time during
117-9 the two-year period preceding the date the application round
117-10 begins, the applicant or a related party is or has been:
117-11 (A) a member of the board; or
117-12 (B) the director, a deputy director, the
117-13 director of housing programs, the director of compliance, the
117-14 director of underwriting, or the low income housing tax credit
117-15 program manager employed by the department; or
117-16 (2) the applicant proposes to replace in less than 15
117-17 years any private activity bond financing of the development
117-18 described by the application, unless:
117-19 (A) the applicant proposes to maintain for a
117-20 period of 30 years or more 100 percent of the development units
117-21 supported by low income housing tax credits as rent-restricted and
117-22 exclusively for occupancy by individuals and families earning not
117-23 more than 50 percent of the area median income, adjusted for family
117-24 size; and
117-25 (B) at least one-third of all the units in the
117-26 development are public housing units or Section 8 project-based
118-1 units.
118-2 Sec. 2306.6704. PREAPPLICATION PROCESS. (a) To prevent
118-3 unnecessary filing costs, the department by rule shall establish a
118-4 voluntary preapplication process to enable a preliminary assessment
118-5 of an application proposed for filing under this subchapter.
118-6 (b) The department shall award in the application evaluation
118-7 process described by Section 2306.6710 an appropriate number of
118-8 points as an incentive for participation in the preapplication
118-9 process established under this section.
118-10 (c) The department shall reject and return to the applicant
118-11 any application assessed by the department under this section that
118-12 fails to satisfy the threshold criteria required by the board in
118-13 the qualified allocation plan.
118-14 (d) If feasible under Section 2306.67041, an application
118-15 under this section must be submitted electronically.
118-16 Sec. 2306.67041. ON-LINE APPLICATION SYSTEM. (a) The
118-17 department and the Department of Information Resources shall
118-18 cooperate to evaluate the feasibility of an on-line application
118-19 system for the low income housing tax credit program to provide the
118-20 following functions:
118-21 (1) filing of preapplications and applications
118-22 on-line;
118-23 (2) posting of on-line preapplication or application
118-24 status and the application log detailing the status of, and
118-25 department's evaluations and scores pertaining to, those
118-26 applications; and
119-1 (3) posting of comments from applicants and the public
119-2 regarding a preapplication or application.
119-3 (b) The department shall determine the process for allowing
119-4 access to on-line preapplications and applications, information
119-5 related to those applications, and department decisions relating to
119-6 those applications.
119-7 (c) In the application cycle following the date any on-line
119-8 application system becomes operational, the department shall
119-9 require use of the system for submission of preapplications and
119-10 applications under this subchapter.
119-11 (d) The department shall publish a status report on the
119-12 implementation of the on-line application on the department's
119-13 website not later than January 1, 2002.
119-14 (e) Before the implementation of the on-line application
119-15 system, the department may implement the requirements of Section
119-16 2306.6717 in any manner the department considers appropriate.
119-17 Sec. 2306.6705. GENERAL APPLICATION REQUIREMENTS. An
119-18 application must contain at a minimum the following written,
119-19 detailed information in a form prescribed by the board:
119-20 (1) a description of:
119-21 (A) the financing plan for the development,
119-22 including any nontraditional financing arrangements;
119-23 (B) the use of funds with respect to the
119-24 development;
119-25 (C) the funding sources for the development,
119-26 including:
120-1 (i) construction, permanent, and bridge
120-2 loans; and
120-3 (ii) rents, operating subsidies, and
120-4 replacement reserves; and
120-5 (D) the commitment status of the funding sources
120-6 for the development;
120-7 (2) if syndication costs are included in the eligible
120-8 basis, a justification of the syndication costs for each cost
120-9 category by an attorney or accountant specializing in tax matters;
120-10 (3) from a syndicator or a financial consultant of the
120-11 applicant, an estimate of the amount of equity dollars expected to
120-12 be raised for the development in conjunction with the amount of
120-13 housing tax credits requested for allocation to the applicant,
120-14 including:
120-15 (A) pay-in schedules; and
120-16 (B) syndicator consulting fees and other
120-17 syndication costs;
120-18 (4) if rental assistance, an operating subsidy, or an
120-19 annuity is proposed for the development, any related contract or
120-20 other agreement securing those funds and an identification of:
120-21 (A) the source and annual amount of the funds;
120-22 (B) the number of units receiving the funds; and
120-23 (C) the term and expiration date of the contract
120-24 or other agreement;
120-25 (5) if the development is located within the
120-26 boundaries of a political subdivision with a zoning ordinance,
121-1 evidence in the form of a letter from the chief executive officer
121-2 of the political subdivision or from another local official with
121-3 jurisdiction over zoning matters that states that:
121-4 (A) the development is permitted under the
121-5 provisions of the ordinance that apply to the location of the
121-6 development; or
121-7 (B) the applicant is in the process of seeking
121-8 the appropriate zoning and has signed and provided to the political
121-9 subdivision a release agreeing to hold the political subdivision
121-10 and all other parties harmless in the event that the appropriate
121-11 zoning is denied;
121-12 (6) if an occupied development is proposed for
121-13 rehabilitation:
121-14 (A) an explanation of the process used to notify
121-15 and consult with the tenants in preparing the application;
121-16 (B) a relocation plan outlining:
121-17 (i) relocation requirements; and
121-18 (ii) a budget with an identified funding
121-19 source; and
121-20 (C) if applicable, evidence that the relocation
121-21 plan has been submitted to the appropriate local agency;
121-22 (7) a certification of the applicant's compliance with
121-23 appropriate state and federal laws, as required by other state law
121-24 or by the board; and
121-25 (8) any other information required by the board in the
121-26 qualified allocation plan.
122-1 Sec. 2306.6706. ADDITIONAL APPLICATION REQUIREMENT:
122-2 NONPROFIT SET-ASIDE ALLOCATION. (a) In addition to the
122-3 information required by Section 2306.6705, an application for a
122-4 housing tax credit allocation from the nonprofit set-aside, as
122-5 defined by Section 42(h)(5), Internal Revenue Code of 1986 (26
122-6 U.S.C. Section 42(h)(5)), must contain the following written,
122-7 detailed information with respect to each development owner and
122-8 each general partner of a development owner:
122-9 (1) Internal Revenue Service documentation of
122-10 designation as a Section 501(c)(3) or 501(c)(4) organization;
122-11 (2) evidence that one of the exempt purposes of the
122-12 nonprofit organization is to provide low income housing;
122-13 (3) a description of the nonprofit organization's
122-14 participation in the construction or rehabilitation of the
122-15 development and in the ongoing operations of the development;
122-16 (4) evidence that the nonprofit organization prohibits
122-17 a member of its board of directors, other than a chief staff member
122-18 serving concurrently as a member of the board, from receiving
122-19 material compensation for service on the board;
122-20 (5) a third-party legal opinion stating that the
122-21 nonprofit organization is not affiliated with or controlled by a
122-22 for-profit organization and the basis for that opinion;
122-23 (6) a copy of the nonprofit organization's most recent
122-24 audited financial statement;
122-25 (7) a list of the names and home addresses of members
122-26 of the board of directors of the nonprofit organization;
123-1 (8) a third-party legal opinion stating that the
123-2 nonprofit organization is eligible under Subsection (b) for a
123-3 housing tax credit allocation from the nonprofit set-aside and the
123-4 basis for that opinion; and
123-5 (9) evidence that a majority of the members of the
123-6 nonprofit organization's board of directors principally reside:
123-7 (A) in this state, if the development is located
123-8 in a rural area; or
123-9 (B) not more than 90 miles from the development
123-10 in the community in which the development is located, if the
123-11 development is not located in a rural area.
123-12 (b) To be eligible for a housing tax credit allocation from
123-13 the nonprofit set-aside, a nonprofit organization must:
123-14 (1) control a majority of the development;
123-15 (2) if the organization's application is filed on
123-16 behalf of a limited partnership, be the managing general partner;
123-17 and
123-18 (3) otherwise meet the requirements of Section
123-19 42(h)(5), Internal Revenue Code of 1986 (26 U.S.C. Section
123-20 42(h)(5)).
123-21 Sec. 2306.6707. ADDITIONAL APPLICATION REQUIREMENT:
123-22 DISCLOSURE OF INTERESTED PERSONS. (a) The applicant must disclose
123-23 in the application the names of any persons, including affiliates
123-24 of those persons and related parties, providing developmental or
123-25 operational services to the development, including:
123-26 (1) a development owner;
124-1 (2) an architect;
124-2 (3) an attorney;
124-3 (4) a tax professional;
124-4 (5) a property management company;
124-5 (6) a consultant;
124-6 (7) a market analyst;
124-7 (8) a tenant services provider;
124-8 (9) a syndicator;
124-9 (10) a real estate broker or agent or a person
124-10 receiving a fee in connection with services usually provided by a
124-11 real estate broker or agent;
124-12 (11) at the time the application is submitted, the
124-13 owners of the property on which the development is located;
124-14 (12) a developer; and
124-15 (13) a builder or general contractor.
124-16 (b) For each person described by Subsection (a), the
124-17 application must disclose any company name, company contact person,
124-18 address, and telephone number.
124-19 Sec. 2306.6708. APPLICATION CHANGES OR SUPPLEMENTS.
124-20 (a) Except as provided by Subsection (b), an applicant may not
124-21 change or supplement an application in any manner after the filing
124-22 deadline.
124-23 (b) This section does not prohibit an applicant from:
124-24 (1) at the request of the department, clarifying
124-25 information in the application or correcting administrative
124-26 deficiencies in the application; or
125-1 (2) amending an application after allocation of
125-2 housing tax credits in the manner provided by Section 2306.6712.
125-3 Sec. 2306.6709. APPLICATION LOG. (a) In a form prescribed
125-4 by the department, the department shall maintain for each
125-5 application an application log that tracks the application from the
125-6 date of its submission.
125-7 (b) The application log must contain at least the following
125-8 information:
125-9 (1) the names of the applicant and related parties;
125-10 (2) the physical location of the development,
125-11 including the relevant region of the state;
125-12 (3) the amount of housing tax credits requested for
125-13 allocation by the department to the applicant;
125-14 (4) any set-aside category under which the application
125-15 is filed;
125-16 (5) the score of the application in each scoring
125-17 category adopted by the department under the qualified allocation
125-18 plan;
125-19 (6) any decision made by the department or board
125-20 regarding the application, including the department's decision
125-21 regarding whether to underwrite the application and the board's
125-22 decision regarding whether to allocate housing tax credits to the
125-23 development;
125-24 (7) the names of persons making the decisions
125-25 described by Subdivision (6), including the names of department
125-26 staff scoring and underwriting the application, to be recorded next
126-1 to the description of the applicable decision;
126-2 (8) the amount of housing tax credits allocated to the
126-3 development; and
126-4 (9) a dated record and summary of any contact between
126-5 the department staff, the board, and the applicant or any related
126-6 parties.
126-7 Sec. 2306.6710. EVALUATION AND UNDERWRITING OF APPLICATIONS.
126-8 (a) In evaluating an application, the department shall determine
126-9 whether the application satisfies the threshold criteria required
126-10 by the board in the qualified allocation plan. The department
126-11 shall reject and return to the applicant any application that fails
126-12 to satisfy the threshold criteria.
126-13 (b) If an application satisfies the threshold criteria, the
126-14 department shall score and rank the application using a point
126-15 system based on criteria that are adapted to regional market
126-16 conditions and adopted by the department, including criteria:
126-17 (1) regarding:
126-18 (A) the income levels of tenants of the
126-19 development;
126-20 (B) the rent levels of the units;
126-21 (C) the period of guaranteed affordability for
126-22 low income tenants;
126-23 (D) the cost by square foot of the development;
126-24 (E) the size, quality, and amenities of the
126-25 units;
126-26 (F) the services to be provided to tenants of
127-1 the development;
127-2 (G) the commitment of development funding by
127-3 local political subdivisions that enables additional units for
127-4 individuals and families of very low income; and
127-5 (H) the level of community support for the
127-6 application, evaluated on the basis of written statements of
127-7 support from local and state elected officials representing
127-8 constituents in areas that include the location of the development;
127-9 and
127-10 (2) imposing penalties on applicants or affiliates who
127-11 have requested extensions of department deadlines relating to
127-12 developments supported by housing tax credit allocations made in
127-13 the application round preceding the current round.
127-14 (c) The department shall publish in the qualified allocation
127-15 plan details of the scoring system used by the department to score
127-16 applications.
127-17 (d) The department shall underwrite the applications ranked
127-18 under Subsection (b) beginning with the applications with the
127-19 highest scores in each region described by Section 2306.111(d) and
127-20 in each set-aside category described in the qualified allocation
127-21 plan. Based on application rankings, the department shall continue
127-22 to underwrite applications until the department has processed
127-23 enough applications satisfying the department's underwriting
127-24 criteria to enable the allocation of all available housing tax
127-25 credits according to regional allocation goals and set-aside
127-26 categories. To enable the board to establish an applications
128-1 waiting list under Section 2306.6711, the department shall
128-2 underwrite as many additional applications as the board considers
128-3 necessary to ensure that all available housing tax credits are
128-4 allocated within the period required by law.
128-5 (e) In adopting criteria for scoring and underwriting
128-6 applications for purposes of housing tax credit allocations, the
128-7 department shall attach, consistent with Section 42, Internal
128-8 Revenue Code of 1986 (26 U.S.C. Section 42), the most weight to
128-9 criteria that will:
128-10 (1) result in an allocation of housing tax credits for
128-11 developments serving the lowest income tenants; and
128-12 (2) produce the greatest number of high quality units
128-13 committed to remaining affordable to qualified tenants for extended
128-14 periods.
128-15 Sec. 2306.6711. ALLOCATION OF HOUSING TAX CREDITS. (a) The
128-16 director shall provide the application scores to the board before
128-17 the 30th day preceding the date the board begins to issue
128-18 commitments for housing tax credits in the allocation round.
128-19 (b) Not later than the deadline specified in the qualified
128-20 allocation plan, the board shall issue commitments for available
128-21 housing tax credits based on the application evaluation process
128-22 provided by Section 2306.6710. The board may not allocate to an
128-23 applicant housing tax credits in any unnecessary amount, as
128-24 determined by the department's underwriting policy and by federal
128-25 law, and in any event may not allocate to the applicant housing tax
128-26 credits in an amount greater than $1.6 million in a single
129-1 application round.
129-2 (c) Concurrently with the initial issuance of commitments
129-3 for housing tax credits under Subsection (b), the board shall
129-4 establish a waiting list of additional applications ranked by score
129-5 in descending order of priority based on set-aside categories and
129-6 regional allocation goals.
129-7 (d) The board shall issue commitments for housing tax
129-8 credits with respect to applications on the waiting list as
129-9 additional credits become available.
129-10 (e) Not later than the 120th day after the date of the
129-11 initial issuance of commitments for housing tax credits under
129-12 Subsection (b), the department shall provide to an applicant who
129-13 did not receive a commitment under that subsection an opportunity
129-14 to meet and discuss with the department the application's
129-15 deficiencies and scoring.
129-16 Sec. 2306.6712. AMENDMENT OF APPLICATION SUBSEQUENT TO
129-17 ALLOCATION BY BOARD. (a) If a proposed modification would
129-18 materially alter a development approved for an allocation of a
129-19 housing tax credit, the department shall require the applicant to
129-20 file a formal, written amendment to the application on a form
129-21 prescribed by the department.
129-22 (b) The director shall require the department staff assigned
129-23 to underwrite applications to evaluate the amendment and provide an
129-24 analysis and written recommendation to the board. The appropriate
129-25 monitor under Section 2306.6719 shall also provide to the board an
129-26 analysis and written recommendation regarding the amendment.
130-1 (c) The board must vote on whether to approve the amendment.
130-2 The board by vote may reject an amendment and, if appropriate,
130-3 rescind the allocation of housing tax credits and reallocate the
130-4 credits to other applicants on the waiting list required by Section
130-5 2306.6711 if the board determines that the modification proposed in
130-6 the amendment:
130-7 (1) would materially alter the development in a
130-8 negative manner; or
130-9 (2) would have adversely affected the selection of the
130-10 application in the application round.
130-11 (d) Material alteration of a development includes:
130-12 (1) a significant modification of the site plan;
130-13 (2) a modification of the number of units or bedroom
130-14 mix of units;
130-15 (3) a substantive modification of the scope of tenant
130-16 services;
130-17 (4) a reduction of three percent or more in the square
130-18 footage of the units or common areas;
130-19 (5) a significant modification of the architectural
130-20 design of the development;
130-21 (6) a modification of the residential density of the
130-22 development of at least five percent; and
130-23 (7) any other modification considered significant by
130-24 the board.
130-25 (e) In evaluating the amendment under this subsection, the
130-26 department staff shall consider whether the need for the
131-1 modification proposed in the amendment was:
131-2 (1) reasonably foreseeable by the applicant at the
131-3 time the application was submitted; or
131-4 (2) preventable by the applicant.
131-5 (f) This section shall be administered in a manner that is
131-6 consistent with Section 42, Internal Revenue Code of 1986 (26
131-7 U.S.C. Section 42).
131-8 Sec. 2306.6713. HOUSING TAX CREDIT AND OWNERSHIP TRANSFERS.
131-9 (a) An applicant may not transfer an allocation of housing tax
131-10 credits or ownership of a development supported with an allocation
131-11 of housing tax credits to any person other than an affiliate unless
131-12 the applicant obtains the director's prior, written approval of the
131-13 transfer.
131-14 (b) The director may not unreasonably withhold approval of
131-15 the transfer.
131-16 (c) An applicant seeking director approval of a transfer and
131-17 the proposed transferee must provide to the department a copy of
131-18 any applicable agreement between the parties to the transfer,
131-19 including any third-party agreement with the department.
131-20 (d) On request, an applicant seeking director approval of a
131-21 transfer must provide to the department:
131-22 (1) a list of the names of transferees and related
131-23 parties; and
131-24 (2) detailed information describing the experience and
131-25 financial capacity of transferees and related parties.
131-26 (e) The development owner shall certify to the director that
132-1 the tenants in the development have been notified in writing of the
132-2 transfer before the 30th day preceding the date of submission of
132-3 the transfer request to the department.
132-4 (f) Not later than the fifth working day after the date the
132-5 department receives all necessary information under this section,
132-6 the department shall conduct a qualifications review of a
132-7 transferee to determine:
132-8 (1) the transferee's past compliance with all aspects
132-9 of the low income housing tax credit program, including land use
132-10 restriction agreements; and
132-11 (2) the sufficiency of the transferee's experience
132-12 with developments supported with housing tax credit allocations.
132-13 Sec. 2306.6714. AT-RISK DEVELOPMENT SET-ASIDE. (a) The
132-14 department shall set aside for at-risk developments not less than
132-15 15 percent of the housing tax credits available for allocation in
132-16 the calendar year.
132-17 (b) Any amount of housing tax credits set aside under this
132-18 section that remains after the initial allocation of housing tax
132-19 credits is available for allocation to any eligible applicant as
132-20 provided by the qualified allocation plan.
132-21 Sec. 2306.6715. APPEAL. (a) In a form prescribed by the
132-22 department in the qualified allocation plan, an applicant may
132-23 appeal the following decisions made by the department in the
132-24 application evaluation process provided by Section 2306.6710:
132-25 (1) a determination regarding the application's
132-26 satisfaction of threshold and underwriting criteria;
133-1 (2) the scoring of the application; and
133-2 (3) a recommendation as to the amount of housing tax
133-3 credits to be allocated to the application.
133-4 (b) An applicant may not appeal a decision made under
133-5 Section 2306.6710 regarding an application filed by another
133-6 applicant.
133-7 (c) An applicant must file a written appeal authorized by
133-8 this section with the department not later than the seventh day
133-9 after the date the department publishes the results of the
133-10 application evaluation process provided by Section 2306.6710. In
133-11 the appeal, the applicant must specifically identify the
133-12 applicant's grounds for appeal, based on the original application
133-13 and additional documentation filed with the original application.
133-14 (d) The director shall respond in writing to the appeal not
133-15 later than the 14th day after the date of receipt of the appeal.
133-16 If the applicant is not satisfied with the director's response to
133-17 the appeal, the applicant may appeal directly in writing to the
133-18 board, provided that an appeal filed with the board under this
133-19 subsection must be received by the board before:
133-20 (1) the seventh day preceding the date of the board
133-21 meeting at which the relevant allocation decision is expected to be
133-22 made; or
133-23 (2) the third day preceding the date of the board
133-24 meeting described by Subdivision (1), if the director does not
133-25 respond to the appeal before the date described by Subdivision (1).
133-26 (e) Board review of an appeal under Subsection (d) is based
134-1 on the original application and additional documentation filed with
134-2 the original application. The board may not review any information
134-3 not contained in or filed with the original application. The
134-4 decision of the board regarding the appeal is final.
134-5 Sec. 2306.6716. FEES. (a) A fee charged by the department
134-6 for filing an application may not be excessive and must reflect the
134-7 department's actual costs in processing the application, providing
134-8 copies of documents to persons connected with the application
134-9 process, and making appropriate information available to the public
134-10 through the department's website.
134-11 (b) The department shall publish not later than July 1 of
134-12 each year a schedule of application fees that specifies the amount
134-13 to be charged at each stage of the application process.
134-14 (c) In accordance with the fee schedule, the department
134-15 shall refund the balance of any fees collected for an application
134-16 that is withdrawn by the applicant or that is not fully processed
134-17 by the department. The department must provide the refund to the
134-18 applicant not later than the 30th day after the date the last
134-19 official action is taken with respect to the application.
134-20 (d) The department shall develop a sliding scale fee
134-21 schedule for applications that encourages increased participation
134-22 by community housing development organizations in the low income
134-23 housing tax credit program.
134-24 Sec. 2306.6717. PUBLIC INFORMATION AND HEARINGS.
134-25 (a) Subject to Section 2306.67041, the department shall make the
134-26 following items available on the department's website:
135-1 (1) as soon as practicable, any proposed application
135-2 submitted through the preapplication process established by this
135-3 subchapter;
135-4 (2) before the 30th day preceding the date of the
135-5 relevant board allocation decision, except as provided by
135-6 Subdivision (3), the entire application, including all supporting
135-7 documents and exhibits, the application log, a scoring sheet
135-8 providing details of the application score, and any other document
135-9 relating to the processing of the application;
135-10 (3) not later than the third working day after the
135-11 date of the relevant determination, the results of each stage of
135-12 the application process, including the results of the application
135-13 scoring and underwriting phases and the allocation phase;
135-14 (4) before the 15th day preceding the date of board
135-15 action on the amendment, notice of an amendment under Section
135-16 2306.6712 and the recommendation of the director and monitor
135-17 regarding the amendment; and
135-18 (5) an appeal filed with the department or board under
135-19 Section 2306.6715 or 2306.6721 and any other document relating to
135-20 the processing of the appeal.
135-21 (b) The department shall provide information regarding the
135-22 low income housing tax credit program, including notice regarding
135-23 public hearings, board meetings, and the opening and closing dates
135-24 for applications, to:
135-25 (1) local housing departments;
135-26 (2) newspapers;
136-1 (3) nonprofit organizations;
136-2 (4) on-site property managers of occupied developments
136-3 that are the subject of applications; and
136-4 (5) any other interested persons, including community
136-5 groups, who request the information.
136-6 (c) The department shall hold at least three public hearings
136-7 in different regions of the state to receive public comments on
136-8 applications and on other issues relating to the low income housing
136-9 tax credit program.
136-10 (d) Notwithstanding any other provision of this section, the
136-11 department may treat the financial statements of any applicant as
136-12 confidential and may elect not to disclose those statements to the
136-13 public.
136-14 Sec. 2306.6718. ELECTED OFFICIALS. (a) The department
136-15 shall provide written notice of the filing of an application to the
136-16 following elected officials:
136-17 (1) members of the legislature who represent the
136-18 community containing the development described in the application;
136-19 and
136-20 (2) the chief executive officer of the political
136-21 subdivision containing the development described in the
136-22 application.
136-23 (b) The department shall provide the elected officials with
136-24 an opportunity to comment on the application during the application
136-25 evaluation process provided by Section 2306.6710 and shall consider
136-26 those comments in evaluating applications under that section.
137-1 (c) A member of the legislature who represents the community
137-2 containing the development may hold a community meeting at which
137-3 the department shall provide appropriate representation.
137-4 (d) If the department receives written notice from the mayor
137-5 or county judge of an affected municipality or county opposing an
137-6 application, the department must contact the mayor or county judge
137-7 and offer to conduct a physical inspection of the development site
137-8 and consult with the mayor or county judge before the application
137-9 is scored.
137-10 Sec. 2306.6719. MONITORING OF COMPLIANCE. (a) The
137-11 department may contract with an independent third party to monitor
137-12 a development during its construction or rehabilitation and during
137-13 its operation for compliance with:
137-14 (1) any conditions imposed by the department in
137-15 connection with the allocation of housing tax credits to the
137-16 development; and
137-17 (2) appropriate state and federal laws, as required by
137-18 other state law or by the board.
137-19 (b) The department may assign department staff other than
137-20 housing tax credit division staff to perform the relevant
137-21 monitoring functions required by this section in the construction
137-22 or rehabilitation phase of a development.
137-23 Sec. 2306.6720. ENFORCEABILITY OF APPLICANT REPRESENTATIONS.
137-24 Each representation made by an applicant to secure a housing tax
137-25 credit allocation is enforceable by the department and the tenants
137-26 of the development supported with the allocation.
138-1 Sec. 2306.6721. DEBARMENT FROM PROGRAM PARTICIPATION.
138-2 (a) The board by rule shall adopt a policy providing for the
138-3 debarment of a person from participation in the low income housing
138-4 tax credit program as described by this section.
138-5 (b) The department may debar a person from participation in
138-6 the program on the basis of the person's past failure to comply
138-7 with any condition imposed by the department in connection with the
138-8 allocation of housing tax credits.
138-9 (c) The department shall debar a person from participation
138-10 in the program if the person:
138-11 (1) materially violates any condition imposed by the
138-12 department in connection with the allocation of housing tax
138-13 credits;
138-14 (2) is debarred from participation in federal housing
138-15 programs by the United States Department of Housing and Urban
138-16 Development; or
138-17 (3) is in material noncompliance with or has
138-18 repeatedly violated a land use restriction agreement regarding a
138-19 development supported with a housing tax credit allocation.
138-20 (d) A person debarred by the department from participation
138-21 in the program may appeal the person's debarment to the board.
138-22 Sec. 2306.6722. DEVELOPMENT ACCESSIBILITY. Any development
138-23 supported with a housing tax credit allocation shall comply with
138-24 the accessibility standards that are required under Section 504,
138-25 Rehabilitation Act of 1973 (29 U.S.C. Section 794), and specified
138-26 under 24 C.F.R. Part 8, Subpart C.
139-1 Sec. 2306.6723. COORDINATION WITH RURAL DEVELOPMENT AGENCY.
139-2 (a) The department shall jointly administer with the rural
139-3 development agency any set-aside for rural areas to:
139-4 (1) ensure the maximum use and optimum geographic
139-5 distribution of housing tax credits in rural areas; and
139-6 (2) provide for information sharing, efficient
139-7 procedures, and fulfillment of development compliance requirements
139-8 in rural areas.
139-9 (b) The rural development agency shall assist in developing
139-10 all threshold, scoring, and underwriting criteria applied to
139-11 applications eligible for the rural area set-aside. The criteria
139-12 must be approved by that agency.
139-13 (c) To ensure that the rural area set-aside receives a
139-14 sufficient volume of eligible applications, the department shall
139-15 fund and, with the rural development agency, shall jointly
139-16 implement outreach, training, and rural area capacity building
139-17 efforts as directed by the rural development agency.
139-18 (d) The department and the rural development agency shall
139-19 jointly adjust the regional allocation of housing tax credits
139-20 described by Section 2306.111 to offset the under-utilization and
139-21 over-utilization of multifamily private activity bonds and other
139-22 housing resources in the different regions of the state.
139-23 (e) From application fees collected under this subchapter,
139-24 the department shall reimburse the rural development agency for any
139-25 costs incurred by the agency in carrying out the functions required
139-26 by this section.
140-1 Sec. 2306.6724 [2306.671]. DEADLINES FOR ALLOCATION OF LOW
140-2 INCOME HOUSING TAX CREDITS. (a) Not later than September 30
140-3 [November 15] of each year, the department shall prepare and submit
140-4 to the board for adoption the qualified allocation plan required by
140-5 federal law for use by the department in setting criteria and
140-6 priorities for the allocation of tax credits under the low income
140-7 housing tax credit program.
140-8 (b) The board shall adopt and submit to the governor the
140-9 qualified allocation plan not later than November 15 [January 31].
140-10 (c) The governor shall approve, reject, or modify and
140-11 approve the qualified allocation plan not later than December 1
140-12 [February 28].
140-13 (d) An applicant for a low income housing tax credit to be
140-14 issued a commitment during the initial allocation cycle in a
140-15 calendar year must submit an application to the department not
140-16 later than March 1 [May 15].
140-17 (e) The board shall review the recommendations of department
140-18 staff regarding applications and shall issue a list of approved
140-19 applications [issue a commitment for allocation for the initial
140-20 cycle of low income housing tax credits] each year in accordance
140-21 with the qualified allocation plan not later than June 30 [July
140-22 31].
140-23 (f) The board shall issue final commitments for allocations
140-24 of housing tax credits each year in accordance with the qualified
140-25 allocation plan not later than July 31.
140-26 Sec. 2306.6725 [2306.672]. SCORING OF APPLICATIONS.
141-1 (a) [The goal of the low income housing tax credit program is to
141-2 provide permanent affordable housing.] In allocating low income
141-3 housing tax credits, the department shall score each application
141-4 using a point system based on criteria adopted by the department
141-5 that are consistent with the department's housing goals, including
141-6 criteria addressing the ability of the proposed project to:
141-7 (1) provide quality social support services to
141-8 residents;
141-9 (2) demonstrate community and neighborhood support as
141-10 defined by the qualified allocation plan;
141-11 (3) consistent with sound underwriting practices and
141-12 when economically feasible, serve individuals and families of
141-13 extremely low income by leveraging private and state and federal
141-14 resources, including federal HOPE VI grants received through the
141-15 United States Department of Housing and Urban Development;
141-16 (4) serve traditionally underserved areas;
141-17 (5) remain affordable to qualified tenants for an
141-18 extended, economically feasible period; and
141-19 (6) comply with the accessibility standards that are
141-20 required under Section 504, Rehabilitation Act of 1973 (29 U.S.C.
141-21 Section 794), and specified under 24 C.F.R. Part 8, Subpart C.
141-22 [The department shall publish in the qualified allocation plan any
141-23 discretionary factor that the department will consider in scoring
141-24 an application.]
141-25 (b) The department shall provide appropriate incentives as
141-26 determined through the qualified allocation plan to reward
142-1 applicants who agree to equip the property that is the basis of the
142-2 application with energy saving devices that meet the standards
142-3 established by the state energy conservation office or [If an
142-4 applicant meets the department's scoring and underwriting criteria,
142-5 the department shall add:]
142-6 [(1) five bonus points to the applicant's score if the
142-7 applicant agrees] to provide to a qualified nonprofit organization
142-8 or tenant organization a right of first refusal to purchase the
142-9 property [to which the tax credit applies] at the minimum price
142-10 provided in, and in accordance with the requirements of, Section
142-11 42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
142-12 42(i)(7))[; and]
142-13 [(2) two bonus points to the applicant's score if the
142-14 application is received within the first 10 days of the application
142-15 acceptance period].
142-16 (c) On [The department shall provide the score of each
142-17 application on each criterion to the board and the governor. The
142-18 results of the scoring shall be available to the public.]
142-19 [(d) Upon] awarding tax credit allocations, the board shall
142-20 document the reasons for each project's selection, including an
142-21 explanation of:
142-22 (1) all discretionary factors used in making its
142-23 determination; and
142-24 (2) the reasons for any decision that conflicts with
142-25 the recommendations of department staff under Section 2306.6731.
142-26 (d) For each scoring criterion, the department shall use a
143-1 range of points to evaluate the degree to which a proposed project
143-2 satisfies the criterion. The department may not award a number of
143-3 points for a scoring criterion that is disproportionate to the
143-4 degree to which a proposed project complies with that criterion.
143-5 Sec. 2306.6726 [2306.673]. SALE OF CERTAIN LOW INCOME
143-6 HOUSING TAX CREDIT PROPERTY. (a) Not later than two years before
143-7 the expiration of the compliance period, a recipient of a low
143-8 income housing tax credit who agreed to provide a right of first
143-9 refusal under Section 2306.6725 [2306.672(b)(1)] and who intends to
143-10 sell the property shall notify the department of the recipient's
143-11 intent to sell. The recipient shall notify qualified nonprofit
143-12 organizations and tenant organizations of the opportunity to
143-13 purchase the property.
143-14 (b) The recipient may:
143-15 (1) during the first six-month period after notifying
143-16 the department, negotiate or enter into a purchase agreement only
143-17 with a qualified nonprofit organization that is also a community
143-18 housing development organization as defined by the federal home
143-19 investment partnership program;
143-20 (2) during the second six-month period after notifying
143-21 the department, negotiate or enter into a purchase agreement with
143-22 any qualified nonprofit organization or tenant organization; and
143-23 (3) during the year before the expiration of the
143-24 compliance period, negotiate or enter into a purchase agreement
143-25 with the department or any qualified nonprofit organization or
143-26 tenant organization approved by the department.
144-1 (c) Notwithstanding an agreement under Section 2306.6725
144-2 [2306.672(b)(1)], a recipient of a low income housing tax credit
144-3 may sell property to which the tax credit applies to any purchaser
144-4 after the expiration of the compliance period if a qualified
144-5 nonprofit organization or tenant organization does not offer to
144-6 purchase the property at the minimum price provided by Section
144-7 42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
144-8 42(i)(7)), and the department declines to purchase the property.
144-9 (d) In this section, "compliance period" has the meaning
144-10 assigned by Section 42(i)(1), Internal Revenue Code of 1986 (26
144-11 U.S.C. Section 42(i)(1)).
144-12 Sec. 2306.6727 [2306.674]. DEPARTMENT PURCHASE OF LOW INCOME
144-13 HOUSING TAX CREDIT PROPERTY. The board by rule may develop and
144-14 implement a program to purchase low income housing tax credit
144-15 property that is not purchased by a qualified nonprofit
144-16 organization or tenant organization. The department may not
144-17 purchase low income housing tax credit property if the board finds
144-18 that the purchase is not in the best interest of the state.
144-19 Sec. 2306.6730. ACCESSIBILITY REQUIRED. A project to which
144-20 a low income housing tax credit is allocated under this subchapter
144-21 shall comply with the accessibility standards that are required
144-22 under Section 504, Rehabilitation Act of 1973 (29 U.S.C. Section
144-23 794), as amended, and specified under 24 C.F.R. Part 8, Subpart C.
144-24 Sec. 2306.6731 [2306.675]. ALLOCATION DECISION; REEVALUATION
144-25 [OF LOW INCOME HOUSING TAX CREDIT]. (a) Department staff shall
144-26 provide written, documented recommendations to the board concerning
145-1 the financial or programmatic viability of each application for a
145-2 low income housing tax credit before the board makes a decision
145-3 relating to the allocation of tax credits. The board may not make
145-4 without good cause an allocation decision that conflicts with the
145-5 recommendations of department staff.
145-6 (b) Regardless of project stage, the board must reevaluate a
145-7 project that undergoes a substantial change between the time of
145-8 initial board approval of the project and the time of issuance of a
145-9 tax credit commitment for the project. The board may revoke any
145-10 tax credit commitment issued for a project that has been
145-11 unfavorably reevaluated by the board under this subsection. [Not
145-12 later than the deadline specified in Section 2306.671(e), the board
145-13 shall issue a commitment for tax credits available to the
145-14 department. Concurrently with the issuance of a commitment for
145-15 initial tax credits, the board shall establish a waiting list of
145-16 additional applications, ranked in descending order of priority, to
145-17 be issued a commitment for tax credits if additional credits become
145-18 available.]
145-19 [Sec. 2306.676. EQUAL ACCESS TO PROGRAM. The department
145-20 shall establish procedures through the qualified allocation plan to
145-21 ensure that each applicant for a low income housing tax credit has
145-22 a fair and equal opportunity to submit or resubmit an application
145-23 and submit for consideration any authorized supplementary materials
145-24 and information.]
145-25 [Sec. 2306.677. FEES. (a) A fee charged by the department
145-26 to an applicant for a low income housing tax credit may not be
146-1 excessive and must reflect the department's actual costs in
146-2 processing applications and providing copies of documents in
146-3 connection with the allocation process.]
146-4 [(b) The department shall refund a fee charged to an
146-5 applicant if the department does not score the applicant's
146-6 application, except the department may retain a reasonable portion
146-7 of the fee to compensate the department for costs associated with
146-8 the application.]
146-9 Sec. 2306.6732 [2306.678]. PUBLIC INFORMATION [AND HEARINGS
146-10 ON PROGRAM]. [(a)] The department shall provide information
146-11 regarding the low income housing tax credit program, including
146-12 notices of public hearings, meetings, and opening and closing dates
146-13 for applications for a low income housing tax credit, to local
146-14 housing departments, any appropriate newspapers of general or
146-15 limited circulation that serve the community in which the proposed
146-16 project is to be located, nonprofit organizations, on-site property
146-17 managers of occupied projects that are the subject of tax credit
146-18 applications for posting in prominent locations at those projects,
146-19 and any other interested persons and community groups[,] who
146-20 request the information. The department shall also publish the
146-21 information on the department's website.
146-22 Sec. 2306.6733. REPRESENTATION BY FORMER BOARD MEMBER OR
146-23 OTHER PERSON. (a) A former board member or a former director,
146-24 deputy director, director of housing programs, director of
146-25 compliance, director of underwriting, or low income housing tax
146-26 credit program manager employed by the department may not:
147-1 (1) for compensation, represent an applicant for an
147-2 allocation of low income housing tax credits or a related party
147-3 before the second anniversary of the date that the board member's,
147-4 director's, or manager's service in office or employment with the
147-5 department ceases;
147-6 (2) represent any applicant or related party or
147-7 receive compensation for services rendered on behalf of any
147-8 applicant or related party regarding the consideration of a housing
147-9 tax credit application in which the former board member, director,
147-10 or manager participated during the period of service in office or
147-11 employment with the department, either through personal involvement
147-12 or because the matter was within the scope of the board member's,
147-13 director's, or manager's official responsibility; or
147-14 (3) for compensation, communicate directly with a
147-15 member of the legislative branch to influence legislation on behalf
147-16 of an applicant or related party before the second anniversary of
147-17 the date that the board member's, director's, or manager's service
147-18 in office or employment with the department ceases.
147-19 (b) A person commits an offense if the person violates this
147-20 section. An offense under this section is a Class A misdemeanor.
147-21 Sec. 2306.6734. MINORITY-OWNED BUSINESSES. (a) The
147-22 department shall require a person who receives an allocation of
147-23 housing tax credits to attempt to ensure that at least 30 percent
147-24 of the construction and management businesses with which the person
147-25 contracts in connection with the development are minority-owned
147-26 businesses.
148-1 (b) A person who receives an allocation of housing tax
148-2 credits must report to the department not less than once in each
148-3 90-day period following the date of allocation regarding the
148-4 percentage of businesses with which the person has contracted that
148-5 qualify as minority-owned businesses.
148-6 (c) In this section:
148-7 (1) "Minority-owned business" means a business entity
148-8 at least 51 percent of which is owned by members of a minority
148-9 group or, in the case of a corporation, at least 51 percent of the
148-10 shares of which are owned by members of a minority group, and that
148-11 is managed and controlled by members of a minority group in its
148-12 daily operations.
148-13 (2) "Minority group" includes:
148-14 (A) women;
148-15 (B) African Americans;
148-16 (C) American Indians;
148-17 (D) Asian Americans; and
148-18 (E) Mexican Americans and other Americans of
148-19 Hispanic origin.
148-20 [(b) The department shall hold at least three public
148-21 hearings in different regions of the state to receive public
148-22 comments on low income housing tax credit applications.]
148-23 SECTION 8.02. Section 2306.6730, Government Code, as added
148-24 by this Act, applies only to a project for which an application for
148-25 a low income housing tax credit is submitted on or after the
148-26 effective date of this Act.
149-1 ARTICLE 9
149-2 SECTION 9.01. Chapter 2306, Government Code, is amended by
149-3 adding Subchapter JJ to read as follows:
149-4 SUBCHAPTER JJ. TEXAS AFFORDABLE HOUSING NEEDS ASSESSMENT
149-5 Sec. 2306.881. DEFINITIONS. In this subchapter:
149-6 (1) "Border region" means the area composed of the
149-7 counties of Brewster, Brooks, Cameron, Culberson, Dimmit, Duval, El
149-8 Paso, Hidalgo, Hudspeth, Jeff Davis, Jim Hogg, Kenedy, Kinney, La
149-9 Salle, Maverick, Presidio, Starr, Val Verde, Webb, Willacy, Zapata,
149-10 and Zavala.
149-11 (2) "Public senior college or university" has the
149-12 meaning assigned by Section 61.003, Education Code.
149-13 Sec. 2306.882. TEXAS AFFORDABLE HOUSING NEEDS ASSESSMENT.
149-14 (a) In conjunction with the office of the comptroller, the
149-15 department shall assess the present and future affordable housing
149-16 needs of the border region and of the uniform state service regions
149-17 of this state.
149-18 (b) The department shall use the following factors in making
149-19 the assessment required by this subchapter:
149-20 (1) the number of extremely low, very low, and low
149-21 income households in each region;
149-22 (2) the number and type of publicly subsidized housing
149-23 units in each region;
149-24 (3) the number and amount of loans provided by the
149-25 department in each region and the income level of the recipients of
149-26 the loans;
150-1 (4) the number and amount of housing development
150-2 grants made by the department in each region and a description of
150-3 each grant;
150-4 (5) the number of substandard or inadequate housing
150-5 units in each region;
150-6 (6) cost estimates for correcting substandard and
150-7 inadequate housing conditions in each region;
150-8 (7) the number of extremely low, very low, and low
150-9 income households in each region that spend more than half of
150-10 household income on rent or mortgage payments;
150-11 (8) cost estimates for relieving housing cost burdens
150-12 for extremely low, very low, and low income households in each
150-13 region;
150-14 (9) an analysis of the market demand for housing by
150-15 extremely low, very low, and low income households;
150-16 (10) an analysis of the loans and private sector home
150-17 mortgage lending rates available to extremely low, very low, and
150-18 low income borrowers in each region;
150-19 (11) an analysis of the principal barriers to home
150-20 mortgage credit faced by extremely low, very low, and low income
150-21 borrowers; and
150-22 (12) the rate of subprime mortgage loan products in
150-23 home purchase, home repair, and home equity loans in each region.
150-24 (c) The assessment must provide a summary and conclusion
150-25 regarding the adequacy of existing housing and lending programs to
150-26 meet the affordable housing needs of each region.
151-1 (d) In making the assessment required by this subchapter,
151-2 the department shall use the most current data available from the
151-3 United States Census Bureau, the United States Department of
151-4 Housing and Urban Development, and federal and state banking
151-5 regulatory agencies.
151-6 (e) In making the assessment required by this subchapter,
151-7 the department shall project the affordable housing needs of each
151-8 region as of the end of each five-year period occurring between
151-9 September 1, 2001, and September 1, 2021, and as of September 1,
151-10 2031. The projection of affordable housing needs under this
151-11 subsection must include a projection of the costs and nature of the
151-12 affordable housing that will be needed in the future, including any
151-13 special need for single-family or multifamily housing.
151-14 Sec. 2306.883. FUNDING. The department may use any
151-15 available revenue, including legislative appropriations, to make
151-16 the assessment required by this subchapter.
151-17 Sec. 2306.884. CONTRACTUAL AUTHORITY. The department may
151-18 contract with a research center, a public senior college or
151-19 university, or a component of a public senior college or
151-20 university, including the Lyndon B. Johnson School of Public
151-21 Affairs, to make the assessment required by this subchapter.
151-22 Sec. 2306.885. REPORT. Not later than the 180th day after
151-23 the date the relevant information is released by the United States
151-24 Census Bureau, the department shall submit a report to the
151-25 governor, the lieutenant governor, and the legislature detailing
151-26 the department's findings on the present and future affordable
152-1 housing needs of the regions of this state.
152-2 Sec. 2306.886. EXPIRATION DATE. This subchapter expires
152-3 October 1, 2004.
152-4 ARTICLE 10
152-5 SECTION 10.01. Section 1372.022, Government Code, is amended
152-6 by amending Subsection (b) and adding Subsection (c) to read as
152-7 follows:
152-8 (b) If the state ceiling is computed on the basis of $75 per
152-9 capita or a greater amount, before August 15 of each year:
152-10 (1) 29.6 percent of the state ceiling is available
152-11 exclusively for reservations by issuers of qualified mortgage
152-12 bonds;
152-13 (2) 8 percent of the state ceiling is available
152-14 exclusively for reservations by issuers of state-voted issues;
152-15 (3) 4.6 percent of the state ceiling is available
152-16 exclusively for reservations by issuers of qualified small issue
152-17 bonds and enterprise zone facility bonds;
152-18 (4) 23 percent of the state ceiling is available
152-19 exclusively for reservations by issuers of qualified residential
152-20 rental project bonds;
152-21 (5) 8.8 percent of the state ceiling is available
152-22 exclusively for reservations by issuers of qualified student loan
152-23 bonds authorized by Section 53.47, Education Code; and
152-24 (6) 26 percent of the state ceiling is available
152-25 exclusively for reservations by any other issuer of bonds that
152-26 require an allocation.
153-1 (c) On and after August 15 but before September 1, that
153-2 portion of the state ceiling available for reservations becomes
153-3 available for qualified residential rental project issues in the
153-4 manner described by Section 1372.0321. On and after September 1,
153-5 that portion of the state ceiling available for reservations
153-6 becomes available to any issuer for any bonds that require an
153-7 allocation, subject to the provisions of this subchapter.
153-8 SECTION 10.02. Subchapter B, Chapter 1372, Government Code,
153-9 is amended by adding Section 1372.0231 to read as follows:
153-10 Sec. 1372.0231. DEDICATION OF PORTION OF STATE CEILING
153-11 AVAILABLE FOR QUALIFIED RESIDENTIAL RENTAL PROJECT BONDS.
153-12 (a) Until August 15, of that portion of the state ceiling that is
153-13 available exclusively for reservations by issuers of qualified
153-14 residential rental project bonds:
153-15 (1) 25 percent is available exclusively to the Texas
153-16 Department of Housing and Community Affairs in the manner described
153-17 by Subsection (b); and
153-18 (2) 75 percent is available exclusively to housing
153-19 finance corporations in the manner described by Subsections
153-20 (c)-(f).
153-21 (b) With respect to the amount of the state ceiling set
153-22 aside under Subsection (a)(1), the board shall grant reservations:
153-23 (1) in the order determined by the board by lot; and
153-24 (2) in a manner that ensures that:
153-25 (A) the set-aside amount is used for proposed
153-26 projects that are located throughout the state; and
154-1 (B) not more than 50 percent of the set-aside
154-2 amount is used for proposed projects that are located in qualified
154-3 census tracts as defined by Section 143(j), Internal Revenue Code
154-4 of 1986.
154-5 (c) With respect to the amount of the state ceiling set
154-6 aside under Subsection (a)(2), the board shall grant reservations
154-7 in a manner that ensures that not more than 50 percent of the
154-8 set-aside amount is used for proposed projects that are located in
154-9 qualified census tracts as defined by Section 143(j), Internal
154-10 Revenue Code of 1986.
154-11 (d) Before June 1, the board shall apportion the amount of
154-12 the state ceiling set aside under Subsection (a)(2) among the
154-13 uniform state service regions according to the percentage of the
154-14 state's population that resides in each of those regions.
154-15 (e) For the uniform state service regions containing Austin,
154-16 Dallas, and Houston, the board shall additionally apportion the
154-17 amount of the state ceiling set aside for each of those regions
154-18 under Subsection (d) within the region according to the percentage
154-19 of the region's population that resides in a metropolitan
154-20 statistical area and the percentage of the region's population that
154-21 resides outside of a metropolitan statistical area.
154-22 (f) In each area described by Subsection (d) or (e), the
154-23 board shall grant reservations based on the priority levels of
154-24 proposed projects as described by Section 1372.032.
154-25 (g) On or after June 1, the board may not grant available
154-26 reservations to housing finance corporations described by
155-1 Subsection (a) based on uniform state service regions or any
155-2 segments of those regions.
155-3 SECTION 10.03. Subsection (a), Section 1372.026, Government
155-4 Code, is amended to read as follows:
155-5 (a) The maximum amount of the state ceiling that may be
155-6 reserved before August 15 [September 1] by a housing finance
155-7 corporation for the issuance of qualified mortgage bonds may not
155-8 exceed the amount computed as follows [by multiplying the local
155-9 population of the corporation by]:
155-10 (1) [$50,] if the local population of the housing
155-11 finance corporation is 300,000 or more, $22.5 million plus the
155-12 product of the amount by which the local population exceeds 300,000
155-13 multiplied by $11.25;
155-14 (2) [$75,] if the local population of the housing
155-15 finance corporation is 200,000 or more but less than 300,000, $20
155-16 million plus the product of the amount by which the local
155-17 population exceeds 200,000 multiplied by $22.5;
155-18 (3) [$100,] if the local population of the housing
155-19 finance corporation is 100,000 or more but less than 200,000, $15
155-20 million plus the product of the amount by which the local
155-21 population exceeds 100,000 multiplied by $50; or
155-22 (4) [$150,] if the local population of the housing
155-23 finance corporation is less than 100,000, the product of the local
155-24 population multiplied by $150.
155-25 SECTION 10.04. Subchapter B, Chapter 1372, Government Code,
155-26 is amended by adding Section 1372.0261 to read as follows:
156-1 Sec. 1372.0261. FAILURE OF HOUSING FINANCE CORPORATION TO
156-2 USE AMOUNT OF STATE CEILING ALLOCATED. (a) In this section,
156-3 "utilization percentage" means that portion of the amount of the
156-4 state ceiling allocated to a housing finance corporation with
156-5 respect to which the corporation issues private activity bonds that
156-6 result in mortgage loans or mortgage credit certificates. A
156-7 housing finance corporation's utilization percentage for an
156-8 allocation of the state ceiling is the quotient of:
156-9 (1) the amount of the state ceiling used to purchase
156-10 mortgages or mortgage-backed securities or the amount of the state
156-11 ceiling used to issue mortgage credit certificates; divided by
156-12 (2) the amount of the state ceiling allocated, minus
156-13 any amounts of the state ceiling required for debt service reserve
156-14 funds.
156-15 (b) If a housing finance corporation's issue of bonds uses a
156-16 new allocation of the state ceiling in combination with taxable
156-17 bond proceeds or with bond proceeds recycled from previous
156-18 allocations of the state ceiling, the first loans or certificates
156-19 financed are considered in computing the utilization percentage of
156-20 the new allocation of the state ceiling.
156-21 (c) If a housing finance corporation's utilization
156-22 percentage is less than 95 percent, the next time the corporation
156-23 becomes eligible for a reservation of the state ceiling, the
156-24 maximum amount of the state ceiling that may be reserved for the
156-25 corporation is equal to the amount for which the corporation would
156-26 otherwise be eligible under Section 1372.026 multiplied by the
157-1 utilization percentage of the corporation's last bond issue that
157-2 used an allocation of the state ceiling.
157-3 (d) A housing finance corporation may not be penalized under
157-4 Subsection (c) if:
157-5 (1) the corporation fails to use:
157-6 (A) bond proceeds recycled from previous
157-7 allocations of the state ceiling; or
157-8 (B) taxable bond proceeds; or
157-9 (2) as the result of an issuance of bonds, the
157-10 corporation's utilization percentage is 95 percent or greater.
157-11 SECTION 10.05. Section 1372.031, Government Code, is amended
157-12 to read as follows:
157-13 Sec. 1372.031. PRIORITIES FOR RESERVATIONS AMONG CERTAIN
157-14 ISSUERS. If, on or before October 20, more than one issuer in a
157-15 category described by Section 1372.022(a)(2), (3), [(4),] or (6)
157-16 applies for a reservation of the state ceiling for the next program
157-17 year, the board shall grant reservations in that category in the
157-18 order determined by the board by lot.
157-19 SECTION 10.06. The heading to Section 1372.032, Government
157-20 Code, is amended to read as follows:
157-21 Sec. 1372.032. PRIORITIES FOR RESERVATIONS AMONG ISSUERS OF
157-22 QUALIFIED MORTGAGE BONDS [HOUSING FINANCE CORPORATIONS].
157-23 SECTION 10.07. (a) Subchapter B, Chapter 1372, Government
157-24 Code, is amended to conform to Section 2, Chapter 131, Acts of the
157-25 76th Legislature, Regular Session, 1999, by adding Section
157-26 1372.0321 and is further amended to read as follows:
158-1 Sec. 1372.0321. PRIORITIES FOR RESERVATIONS AMONG ISSUERS OF
158-2 QUALIFIED RESIDENTIAL RENTAL PROJECT ISSUES. (a) In granting
158-3 reservations to issuers of qualified residential rental project
158-4 issues, the board shall:
158-5 (1) give first priority to:
158-6 (A) projects in which 100 percent of the
158-7 residential units in the projects are under the restriction that
158-8 the maximum allowable rents are an amount equal to 30 percent of 50
158-9 percent of the area median family income minus an allowance for
158-10 utility costs authorized under the federal low-income housing tax
158-11 credit program; and
158-12 (B) on or after June 1, projects that are
158-13 located in counties, metropolitan statistical areas, or primary
158-14 metropolitan statistical areas with area median family incomes at
158-15 or below the statewide median family income established by the
158-16 United States Department of Housing and Urban Development;
158-17 (2) give second priority to projects in which 100
158-18 percent of the residential units in the projects are under the
158-19 restriction that the maximum allowable rents are an amount equal to
158-20 30 percent of 60 percent of the area median family income minus an
158-21 allowance for utility costs authorized under the federal low-income
158-22 housing tax credit program; and
158-23 (3) give third priority to any other qualified
158-24 residential rental project.
158-25 (b) The board may not reserve a portion of the state ceiling
158-26 for a first or second priority project described by Subsection (a)
159-1 unless the board receives evidence that an application has been
159-2 filed with the Texas Department of Housing and Community Affairs
159-3 for the low-income housing tax credit that is available for
159-4 multifamily transactions that are at least 51 percent financed by
159-5 tax-exempt private activity bonds.
159-6 (b) Section 2, Chapter 131, Acts of the 76th Legislature,
159-7 Regular Session, 1999, is repealed.
159-8 SECTION 10.08. Section 1372.033, Government Code, is amended
159-9 by adding Subsections (c) and (d) to read as follows:
159-10 (c) The board shall grant a reservation to an issuer
159-11 described by Subsection (a) in an amount not to exceed the lesser
159-12 of:
159-13 (1) $35 million;
159-14 (2) the full amount of the state ceiling for qualified
159-15 student loan bonds for which the issuer applied; or
159-16 (3) the amount of the state ceiling for qualified
159-17 student loan bonds remaining after reservations have been granted
159-18 to issuers with a higher priority under Subsection (a).
159-19 (d) Notwithstanding Subsection (c)(1) or Section
159-20 1372.037(5), after each issuer described by Subsection (a) that
159-21 applies for a reservation has been offered a reservation in the
159-22 maximum amount available to the issuer, the board shall grant in
159-23 equal portions, as additional reservations, any remaining amount of
159-24 the state ceiling for qualified student loan bonds to issuers that:
159-25 (1) received and accepted a reservation; and
159-26 (2) do not refuse an additional reservation under this
160-1 subsection.
160-2 SECTION 10.09. Subsection (c), Section 1372.042, Government
160-3 Code, is amended to read as follows:
160-4 (c) Notwithstanding Subsections (a) and (b), if the 120-day
160-5 period or the 180-day period, as applicable, expires on or after
160-6 December 24 of the year in which the reservation was granted, the
160-7 issuer shall close on the bonds before December 24, except that if
160-8 the applicable period expires after December 31 of that year, the
160-9 issuer may notify the board in writing before December 24 of the
160-10 issuer's election to carry forward the reservation and of the
160-11 issuer's expected bond closing date. In compliance with the
160-12 requirements of Section 146(f), Internal Revenue Code of 1986, the
160-13 board shall file in a timely manner a carryforward election with
160-14 respect to any bonds expected to close after December 31 to permit
160-15 the bonds to close by the expected date, except that the board may
160-16 not file the carryforward election after February 15 of the year
160-17 following the year in which the reservation was granted. The grant
160-18 of the reservation for the balance of the 120-day period or the
160-19 180-day period, as applicable, is automatically and immediately
160-20 reinstated on the board's filing of a carryforward election with
160-21 respect to the reservation [the issuer shall close on the bonds
160-22 before December 24].
160-23 SECTION 10.10. Sections 1372.061 and 1372.062, Government
160-24 Code, are amended to read as follows:
160-25 Sec. 1372.061. DESIGNATION BY BOARD OF CERTAIN AMOUNTS OF
160-26 STATE CEILING AS CARRYFORWARD. (a) The board may designate as
161-1 carryforward:
161-2 (1) the amount of the state ceiling that is not
161-3 reserved before December 15; and
161-4 (2) any amount of the state ceiling that:
161-5 (A) was reserved before December 15; and
161-6 (B) becomes available on or after that date
161-7 because of the cancellation of a reservation.
161-8 (b) The board shall designate as carryforward a reservation
161-9 amount for which the board receives written notice from an issuer
161-10 of an election to carry forward the reservation under Section
161-11 1372.042(c) if the bonds relating to the reservation are not
161-12 required to close by December 31 of the year in which the
161-13 reservation was granted.
161-14 Sec. 1372.062. PRIORITY CLASSIFICATIONS OF CARRYFORWARD
161-15 DESIGNATIONS. (a) The board shall:
161-16 (1) designate amounts as carryforward in accordance
161-17 with the system of priority classifications specified in Sections
161-18 1372.063-1372.068; and
161-19 (2) in each classification, make the designations in
161-20 order of the application [applications] for those designations.
161-21 (b) Notwithstanding Subsection (a), the board shall
161-22 designate in compliance with the requirements of Section 146(f),
161-23 Internal Revenue Code of 1986, a carryforward relating to an
161-24 issuer's written election under Section 1372.042(c) according to
161-25 the category of bonds to which the reservation subject to the
161-26 carryforward relates.
162-1 SECTION 10.11. (a) In accordance with Subsection (c),
162-2 Section 311.031, Government Code, which gives effect to a
162-3 substantive amendment enacted by the same legislature that codifies
162-4 the amended statute, the text of Subsection (b), Section 1372.022,
162-5 Government Code, as set out in this Act, gives effect to changes
162-6 made by Chapter 131, Acts of the 76th Legislature, Regular Session,
162-7 1999.
162-8 (b) To the extent of any conflict, the changes in law made
162-9 by this Act to Chapter 1372, Government Code, prevail over another
162-10 Act of the 77th Legislature, Regular Session, 2001, relating to
162-11 nonsubstantive additions to and corrections in enacted codes.
162-12 SECTION 10.12. Section 1372.0261, Government Code, as added
162-13 by this Act, applies only to a reservation of the state ceiling
162-14 granted on or after January 1, 2002.
162-15 ARTICLE 11
162-16 SECTION 11.01. Section 15.001, Water Code, is amended by
162-17 adding Subdivision (12) to read as follows:
162-18 (12) "Nonborder colonia" means a residential
162-19 community:
162-20 (A) located in an unincorporated area of a
162-21 county all parts of which are at least 150 miles from the
162-22 international border of this state;
162-23 (B) in which water or wastewater services are
162-24 inadequate to meet minimal needs of residential users as defined by
162-25 board rules; and
162-26 (C) in which the average household income is
163-1 less than the average household income for the county in which the
163-2 community is located.
163-3 SECTION 11.02. Section 15.008, Water Code, is amended to
163-4 read as follows:
163-5 Sec. 15.008. GRANT STANDARDS. Chapter 783, Government Code,
163-6 [The Uniform Grant and Contract Management Act of 1981 (Article
163-7 4413(32g), Vernon's Texas Civil Statutes)] does not apply to a
163-8 contract under Subchapter F, H, or K or to a contract relating to
163-9 an economically distressed area or nonborder colonia under
163-10 Subchapter C [of this chapter].
163-11 SECTION 11.03. Subsection (b), Section 15.102, Water Code,
163-12 is amended to read as follows:
163-13 (b) The loan fund may also be used by the board to provide
163-14 grants or loans for projects that include supplying water and
163-15 wastewater services in economically distressed areas or nonborder
163-16 colonias as provided by legislative appropriations, this chapter,
163-17 and board rules, including projects involving retail distribution
163-18 of those services.
163-19 SECTION 11.04. Section 15.105, Water Code, is amended to
163-20 read as follows:
163-21 Sec. 15.105. CONSIDERATIONS IN PASSING ON APPLICATION. In
163-22 passing on an application for financial assistance from the loan
163-23 fund, the board shall consider but is not limited to:
163-24 (1) the needs of the area to be served by the project
163-25 and the benefit of the project to the area in relation to the needs
163-26 of other areas requiring state assistance in any manner and the
164-1 benefits of those projects to the other areas;
164-2 (2) the availability of revenue to the applicant from
164-3 all sources for the ultimate repayment of the cost of the project,
164-4 including all interest;
164-5 (3) the relationship of the project to overall
164-6 statewide needs;
164-7 (4) the ability of the applicant to finance the
164-8 project without state assistance; and
164-9 (5) for applications for grants or loans for
164-10 economically distressed areas or nonborder colonias, the regulatory
164-11 efforts by the county in which the project is located to control
164-12 the construction of subdivisions that lack basic utility services.
164-13 SECTION 11.05. Section 775.001, Government Code, is amended
164-14 by adding Subdivision (3) to read as follows:
164-15 (3) "Nonborder colonia" has the meaning assigned by
164-16 Section 15.001, Water Code.
164-17 SECTION 11.06. Subsection (c), Section 775.002, Government
164-18 Code, is amended to read as follows:
164-19 (c) The colonia initiatives coordinator may work with the
164-20 other agencies and local officials involved in colonia projects in
164-21 the state to:
164-22 (1) coordinate efforts to address colonia issues;
164-23 (2) identify nonprofit self-help groups to help with
164-24 colonia initiatives;
164-25 (3) set goals for each state fiscal year for colonia
164-26 initiatives in the state, including goals to:
S.B. No. 322
165-1 (A) address easement problems; and
165-2 (B) ensure that water and wastewater connections
165-3 are extended from distribution lines to houses located in colonias;
165-4 [and]
165-5 (4) ensure that the goals set under this subsection
165-6 are met each state fiscal year; and
165-7 (5) coordinate state outreach efforts to nonborder
165-8 colonias and to political subdivisions capable of providing water
165-9 and wastewater services to nonborder colonias.
165-10 ARTICLE 12
165-11 SECTION 12.01. This Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 322 passed the Senate on
May 9, 2001, by a viva-voce vote; and that the Senate concurred in
House amendments on May 27, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 322 passed the House, with
amendments, on May 23, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor