77R16727 KEL-D
By Lucio S.B. No. 322
Substitute the following for S.B. No. 322:
By Najera C.S.S.B. No. 322
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the continuation and functions of the Texas Department
1-3 of Housing and Community Affairs and to other matters relating to
1-4 housing or community development, including the creation of the
1-5 Manufactured Housing Board and the Office of Rural Community
1-6 Affairs; providing a penalty.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 ARTICLE 1
1-9 SECTION 1.01. Section 2306.001, Government Code, is amended
1-10 to read as follows:
1-11 Sec. 2306.001. PURPOSES. The purposes of the department are
1-12 to:
1-13 (1) assist local governments in:
1-14 (A) providing essential public services for
1-15 their residents; and
1-16 (B) overcoming financial, social, and
1-17 environmental problems;
1-18 (2) provide for the housing needs of individuals and
1-19 families of low, [and] very low, and extremely low income and
1-20 families of moderate income;
1-21 (3) contribute to the preservation, development, and
1-22 redevelopment of neighborhoods and communities, including
1-23 cooperation in the preservation of government-assisted housing
1-24 occupied by individuals and families of very low and extremely low
2-1 income;
2-2 (4) assist the governor and the legislature in
2-3 coordinating federal and state programs affecting local government;
2-4 [and]
2-5 (5) inform state officials and the public of the needs
2-6 of local government; and
2-7 (6) serve as a source of information to the public
2-8 regarding all affordable housing resources and community support
2-9 services in the state.
2-10 SECTION 1.02. Section 2306.021(b), Government Code, is
2-11 amended to read as follows:
2-12 (b) The department is composed of:
2-13 (1) the community affairs division;
2-14 (2) the housing finance division;
2-15 (3) the manufactured housing division;
2-16 (4) the community development division; and
2-17 (5) any other division created by the director under
2-18 Section 2306.0521.
2-19 SECTION 1.03. Subchapter B, Chapter 2306, Government Code, is
2-20 amended by amending Sections 2306.022, 2306.024, 2306.025,
2-21 2306.027, and 2306.033-2306.035 and adding Section 2306.028 to read
2-22 as follows:
2-23 Sec. 2306.022. APPLICATION OF SUNSET ACT. The Texas
2-24 Department of Housing and Community Affairs is subject to Chapter
2-25 325 (Texas Sunset Act). Unless continued in existence as provided
2-26 by that chapter, the department is abolished and this chapter
2-27 expires September 1, 2003 [2001].
3-1 Sec. 2306.024. BOARD MEMBERS: APPOINTMENT AND COMPOSITION.
3-2 The board consists of seven public [nine] members appointed by the
3-3 governor.
3-4 Sec. 2306.025. TERMS OF BOARD MEMBERS. Members of the board
3-5 hold office for staggered terms of six years, with the terms of two
3-6 or three members expiring on January 31 of each odd-numbered year.
3-7 Sec. 2306.027. ELIGIBILITY. (a) The governor shall appoint
3-8 [make appointments] to the board public members who have a
3-9 demonstrated interest in issues related to housing and community
3-10 support services. A person appointed to the board must be a
3-11 registered voter in the state and may not hold another public
3-12 office [as follows:]
3-13 [(1) Place 1: an individual representing lending
3-14 institutions;]
3-15 [(2) Place 2: an individual representing local
3-16 government;]
3-17 [(3) Place 3: an individual representing housing
3-18 construction;]
3-19 [(4) Place 4: an individual representing
3-20 community-based nonprofit housing organizations;]
3-21 [(5) Place 5: an individual representing realtors or
3-22 housing developers;]
3-23 [(6) Place 6: an individual representing individuals
3-24 and families of low or very low income; and]
3-25 [(7) Places 7 through 9: public members].
3-26 (b) Appointments [Except as necessary to comply with the
3-27 requirements of Section 2306.026 regarding diversity, appointments]
4-1 to the board shall be made without regard to the race, color,
4-2 disability [handicap], sex, religion, age, or national origin of
4-3 the appointees and shall be made in a manner that produces
4-4 representation on the board of the different geographical regions
4-5 of this state. Appointments to the board must broadly reflect the
4-6 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,
4-27 deliberate, or be counted as a member in attendance at a meeting of
5-1 the board until the person completes a training program that
5-2 complies with this section.
5-3 (b) The training program must provide the person with
5-4 information regarding:
5-5 (1) the legislation that created the department and
5-6 the board;
5-7 (2) the programs operated by the department;
5-8 (3) the role and functions of the department;
5-9 (4) the rules of the department, with an emphasis on
5-10 the rules that relate to disciplinary and investigatory authority;
5-11 (5) the current budget for the department;
5-12 (6) the results of the most recent formal audit of the
5-13 department;
5-14 (7) the requirements of:
5-15 (A) the open meetings law, Chapter 551;
5-16 (B) the public information law, Chapter 552;
5-17 (C) the administrative procedure law, Chapter
5-18 2001; and
5-19 (D) other laws relating to public officials,
5-20 including conflict-of-interest laws;
5-21 (8) the requirements of:
5-22 (A) state and federal fair housing laws,
5-23 including Chapter 301, Property Code, Title VIII of the Civil
5-24 Rights Act of 1968 (42 U.S.C. Section 3601 et seq.), and the Fair
5-25 Housing Amendments Act of 1988 (42 U.S.C. Section 3601 et seq.);
5-26 (B) the Civil Rights Act of 1964 (42 U.S.C.
5-27 Section 2000a et seq.);
6-1 (C) the Americans with Disabilities Act of 1990
6-2 (42 U.S.C. Section 12101 et seq.); and
6-3 (D) the Rehabilitation Act of 1973 (29 U.S.C.
6-4 Section 701 et seq.); and
6-5 (9) any applicable ethics policies adopted by the
6-6 department or the Texas Ethics Commission.
6-7 (c) A person appointed to the board is entitled to
6-8 reimbursement, as provided by the General Appropriations Act, for
6-9 the travel expenses incurred in attending the training program
6-10 regardless of whether the attendance at the program occurs before
6-11 or after the person qualifies for office.
6-12 Sec. 2306.033. REMOVAL OF MEMBERS. (a) It is a ground for
6-13 removal from the board that a member:
6-14 (1) does not have at the time of taking office
6-15 [appointment] the qualifications required by Section [2306.026,]
6-16 2306.027[, or 2306.028 for appointment to the board];
6-17 (2) does not maintain during [the] service on the
6-18 board the qualifications required by Section [2306.026,] 2306.027[,
6-19 or 2306.028 for appointment to the board];
6-20 (3) is ineligible for membership under [violates a
6-21 prohibition established by] Section 2306.027(c), 2306.034, or
6-22 2306.035;
6-23 (4) cannot, because of illness or disability,
6-24 discharge the member's duties for a substantial part of the
6-25 member's term [for which the member is appointed because of illness
6-26 or disability];
6-27 (5) is absent from more than half of the regularly
7-1 scheduled board meetings [of the board] that the member is eligible
7-2 to attend during a calendar year without an excuse approved [unless
7-3 the absence is excused] by a majority vote of the board; or
7-4 (6) engages in misconduct or unethical or criminal
7-5 behavior.
7-6 (b) The validity of an action of the board is not affected
7-7 by the fact that it is taken when a ground for removal of a board
7-8 member exists.
7-9 (c) If the director has knowledge that a potential ground
7-10 for removal exists, the director shall notify the presiding officer
7-11 of the board of the potential ground. The presiding officer shall
7-12 then notify the governor and the attorney general that a potential
7-13 ground for removal exists. If the potential ground for removal
7-14 involves the presiding officer, the director shall notify the next
7-15 highest ranking officer of the board, who shall then notify the
7-16 governor and the attorney general that a potential ground for
7-17 removal exists.
7-18 Sec. 2306.034. DISQUALIFICATION OF MEMBERS AND CERTAIN
7-19 EMPLOYEES. (a) In [An employee or paid consultant of a Texas trade
7-20 association in the field of banking, real estate, housing
7-21 development, or housing construction may not be a member of the
7-22 board or an employee of the department who is exempt from the
7-23 state's position classification plan or is compensated at or above
7-24 the amount prescribed by the General Appropriations Act for step 1,
7-25 salary group 17, of the position classification salary schedule.]
7-26 [(b) For the purposes of] this section, [a] "Texas trade
7-27 association" means [is] a [nonprofit,] cooperative[,] and
8-1 voluntarily joined association of business or professional
8-2 competitors in this state designed to assist its members and its
8-3 industry or profession in dealing with mutual business or
8-4 professional problems and in promoting their common interest.
8-5 (b) A person may not be a member of the board and may not be
8-6 a department employee employed in a "bona fide executive,
8-7 administrative, or professional capacity," as that phrase is used
8-8 for purposes of establishing an exemption to the overtime
8-9 provisions of the federal Fair Labor Standards Act of 1938 (29
8-10 U.S.C. Section 201 et seq.) if:
8-11 (1) the person is an officer, employee, or paid
8-12 consultant of a Texas trade association in the field of banking,
8-13 real estate, housing development, or housing construction; or
8-14 (2) the person's spouse is an officer, manager, or
8-15 paid consultant of a Texas trade association in the field of
8-16 banking, real estate, housing development, or housing construction.
8-17 Sec. 2306.035. LOBBYIST RESTRICTION. A person may not be
8-18 [serve as] a member of the board or act as the director of the
8-19 department or the general counsel to the board or the department if
8-20 the person is required to register as a lobbyist under Chapter 305
8-21 because of the person's activities for compensation [in or] on
8-22 behalf of a profession related to the operation of the department.
8-23 SECTION 1.04. Section 2306.030(a), Government Code, is
8-24 amended to read as follows:
8-25 (a) The governor shall designate a member of [appoint a
8-26 presiding officer from] the board as the presiding officer of the
8-27 board to serve in that capacity at the will of the governor
9-1 [members]. The presiding officer presides at meetings of the board
9-2 and performs other duties required by this chapter.
9-3 SECTION 1.05. Section 2306.032, Government Code, is amended
9-4 by adding Subsections (c)-(g) to read as follows:
9-5 (c) All materials in the possession of the department that
9-6 are relevant to a matter proposed for discussion at a board meeting
9-7 must be posted on the department's website, made available in
9-8 hard-copy format at the department, filed with the secretary of
9-9 state for publication by reference in the Texas Register, and
9-10 disseminated by any other means required by this chapter or by
9-11 Chapter 551.
9-12 (d) The materials described by Subsection (c) must be made
9-13 available to the public as required by Subsection (c) not later
9-14 than the seventh day before the date of the meeting. The board may
9-15 not consider at the meeting any material that is not made available
9-16 to the public by the date required by this subsection.
9-17 (e) The agenda for a board meeting must state each project
9-18 the staff is recommending for assistance by the department.
9-19 (f) For each item on the board's agenda at the meeting, the
9-20 board shall provide for public comment after the presentation made
9-21 by department staff and the motions made by the board on that
9-22 topic.
9-23 (g) The board shall adopt rules that give the public a
9-24 reasonable amount of time for testimony at meetings.
9-25 SECTION 1.06. Subchapter B, Chapter 2306, Government Code, is
9-26 amended by adding Section 2306.0321 to read as follows:
9-27 Sec. 2306.0321. APPEAL OF BOARD AND DEPARTMENT DECISIONS.
10-1 (a) The board shall adopt rules outlining a formal process for
10-2 appealing board and department decisions.
10-3 (b) The rules must specify the requirements for appealing a
10-4 board or department decision, including:
10-5 (1) the persons eligible to appeal;
10-6 (2) the grounds for an appeal;
10-7 (3) the process for filing an appeal, including the
10-8 information that must be submitted with an appeal;
10-9 (4) a reasonable period in which an appeal must be
10-10 filed, heard, and decided;
10-11 (5) the process by which an appeal is heard and a
10-12 decision is made;
10-13 (6) the possible outcomes of an appeal; and
10-14 (7) the process by which notification of a decision
10-15 and the basis for a decision is given.
10-16 SECTION 1.07. Subchapter C, Chapter 2306, Government Code, is
10-17 amended by adding Sections 2306.051, 2306.0521, and 2306.057 to
10-18 read as follows:
10-19 Sec. 2306.051. SEPARATION OF RESPONSIBILITIES. The board
10-20 shall develop and implement policies that clearly separate the
10-21 policy-making responsibilities of the board and the management
10-22 responsibilities of the director and staff of the department.
10-23 Sec. 2306.0521. ORGANIZATIONAL FLEXIBILITY OF DEPARTMENT.
10-24 (a) Notwithstanding Section 2306.021(b) or any other provision of
10-25 this chapter, the director, with the approval of the board, may:
10-26 (1) create divisions in addition to those listed in
10-27 Section 2306.021(b) and assign to the newly created divisions any
11-1 duties and powers imposed on or granted to an existing division or
11-2 the department generally;
11-3 (2) eliminate any division listed in Section
11-4 2306.021(b) or created under this section and assign any duties or
11-5 powers previously assigned to the eliminated division to another
11-6 division listed in Section 2306.021(b) or created under this
11-7 section; or
11-8 (3) eliminate all divisions listed in Section
11-9 2306.021(b) or created under this section and reorganize the
11-10 distribution of powers and duties granted to or imposed on a
11-11 division in any manner the director determines appropriate for the
11-12 proper administration of the department.
11-13 (b) This section does not apply to the manufactured housing
11-14 division.
11-15 Sec. 2306.057. COMPLIANCE ASSESSMENT REQUIRED FOR PROJECT
11-16 APPROVAL BY BOARD. (a) Before the board approves any project
11-17 application submitted under this chapter, the department, through
11-18 the division with responsibility for compliance matters, shall:
11-19 (1) assess:
11-20 (A) the compliance history of the applicant and
11-21 any affiliate of the applicant with respect to all applicable
11-22 requirements; and
11-23 (B) the compliance issues associated with the
11-24 proposed project; and
11-25 (2) provide to the board a written report regarding
11-26 the results of the assessments described by Subdivision (1).
11-27 (b) The written report described by Subsection (a)(2) must
12-1 be included in the appropriate project file for board and
12-2 department review.
12-3 (c) The board shall fully document and disclose any
12-4 instances in which the board approves a project application despite
12-5 any noncompliance associated with the project, applicant, or
12-6 affiliate.
12-7 SECTION 1.08. Section 2306.052, Government Code, is amended
12-8 by amending Subsection (c) and adding Subsections (e) and (f) to
12-9 read as follows:
12-10 (c) The director shall develop and implement the policies
12-11 established by the board that define the responsibilities of each[:]
12-12 [(1) the director, board, and staff of the department;
12-13 and]
12-14 [(2) the community affairs division, the housing
12-15 finance division, and any other] division in the department.
12-16 (e) The board shall adopt rules and the director shall
12-17 develop and implement a program to train employees on the public
12-18 information requirements of Chapter 552. The director shall
12-19 monitor the compliance of employees with those requirements.
12-20 (f) The director shall use existing department resources to
12-21 provide the board with any administrative support necessary for the
12-22 board to exercise its duties regarding the implementation of this
12-23 chapter, including:
12-24 (1) assigning personnel to assist the board;
12-25 (2) providing office space, equipment, and documents
12-26 and other information to the board; and
12-27 (3) making in-house legal counsel available to the
13-1 board.
13-2 SECTION 1.09. Subchapter D, Chapter 2306, Government Code, is
13-3 amended by amending Section 2306.061 and adding Sections 2306.0631
13-4 and 2306.081 to read as follows:
13-5 Sec. 2306.061. STANDARDS OF [INFORMATION ON QUALIFICATIONS
13-6 AND] CONDUCT. The director or the director's designee shall become
13-7 aware of and provide to members of the board [members] and to [the]
13-8 department employees, as often as necessary, information regarding
13-9 the requirements [about the director's, members', and employees':]
13-10 [(1) qualifications] for office or employment under
13-11 this chapter, including information regarding a person's[; and]
13-12 [(2)] responsibilities under applicable laws relating
13-13 to standards of conduct for state officers or employees.
13-14 Sec. 2306.0631. STATE EMPLOYEE INCENTIVE PROGRAM. The
13-15 director or the director's designee shall provide to department
13-16 employees information and training on the benefits and methods of
13-17 participation in the state employee incentive program under
13-18 Subchapter B, Chapter 2108.
13-19 Sec. 2306.081. PROJECT COMPLIANCE; DATABASE. (a) The
13-20 department, through the division with responsibility for compliance
13-21 matters, shall monitor for compliance with all applicable
13-22 requirements the entire construction phase associated with any
13-23 project under this chapter. The monitoring level for each project
13-24 must be based on the amount of risk associated with the project.
13-25 (b) After completion of a project's construction phase, the
13-26 department shall periodically review the performance of the project
13-27 to confirm the accuracy of the department's initial compliance
14-1 evaluation during the construction phase.
14-2 (c) The department shall use the division responsible for
14-3 credit underwriting matters and the division responsible for
14-4 compliance matters to determine the amount of risk associated with
14-5 each project.
14-6 (d) The department shall create an easily accessible
14-7 database that contains all project compliance information developed
14-8 under this chapter.
14-9 SECTION 1.10. Sections 2306.066(b) and (c), Government Code,
14-10 are amended to read as follows:
14-11 (b) The department shall maintain a [keep an information]
14-12 file on [about] each written complaint filed with the department
14-13 [that the department has authority to resolve]. The file must
14-14 include:
14-15 (1) the name of the person who filed the complaint;
14-16 (2) the date the complaint is received by the
14-17 department;
14-18 (3) the subject matter of the complaint;
14-19 (4) the name of each person contacted in relation to
14-20 the complaint;
14-21 (5) a summary of the results of the review or
14-22 investigation of the complaint; and
14-23 (6) an explanation of the reason the file was closed,
14-24 if the department closed the file without taking action other than
14-25 to investigate the complaint.
14-26 (c) The department shall provide to the person filing the
14-27 complaint and to each person who is a subject of the complaint a
15-1 copy of the department's policies and procedures relating to
15-2 complaint investigation and resolution. The [If a written
15-3 complaint is filed with the department that the department has
15-4 authority to resolve, the] department, at least quarterly [and]
15-5 until final disposition of the complaint, shall notify the person
15-6 filing the complaint and each person who is a subject of [parties
15-7 to] the complaint of the status of the investigation [complaint]
15-8 unless the notice would jeopardize an undercover investigation.
15-9 SECTION 1.11. Section 2306.0661, Government Code, is amended
15-10 to read as follows:
15-11 Sec. 2306.0661. PUBLIC HEARINGS. (a) Except as provided by
15-12 Subsection (b), this [This] section applies only to state-funded
15-13 housing programs, programs funded with bond proceeds, the low
15-14 income housing tax credit program, and the state low income housing
15-15 plan. Federally funded programs shall comply with the federal
15-16 public participation requirements and Chapter 2105, if applicable.
15-17 (b) The department shall encourage informed and effective
15-18 public participation in the department's programs and plans by
15-19 [through] holding, on at least an annual basis in each uniform
15-20 service region of the state, a consolidated public hearing in which
15-21 the board solicits and accepts public comments regarding the
15-22 following programs:
15-23 (1) the housing trust fund program;
15-24 (2) the HOME investment partnerships program;
15-25 (3) the single-family housing mortgage revenue bond
15-26 program;
15-27 (4) the multifamily housing mortgage revenue bond
16-1 program;
16-2 (5) the low income housing tax credit program;
16-3 (6) the low income energy assistance program;
16-4 (7) any other program in the consolidated plan
16-5 submitted to the United States Department of Housing and Urban
16-6 Development; and
16-7 (8) any other program in the state low income housing
16-8 plan [hearings and soliciting and accepting public comments during
16-9 those hearings].
16-10 (c) In holding a public hearing, the department shall ensure
16-11 that:
16-12 (1) the location of the hearing is:
16-13 (A) in a public building or facility accessible
16-14 to the public;
16-15 (B) accessible to persons with disabilities; and
16-16 (C) reasonably accessible by public
16-17 transportation, if available;
16-18 (2) hearings are scheduled at times when working and
16-19 nonworking people can attend; and
16-20 (3) child care is provided where practical.
16-21 (d) [(c)] In scheduling a public hearing, the department
16-22 shall:
16-23 (1) publish notice of the time, place, and subject of
16-24 the hearing in the Texas Register and a newspaper of general
16-25 circulation in the community in which the hearing is to be held at
16-26 least seven days before the date of the hearing. Whenever
16-27 practical, the department shall publish notice of the time, place,
17-1 and subject of the hearing in the Texas Register and a newspaper of
17-2 general circulation in the community in which the hearing is to be
17-3 held at least thirty days before the date of the hearing;
17-4 (2) provide notice of the hearing to each public
17-5 library, in the community in which the hearing is to be held, for
17-6 posting in a public area of the library;
17-7 (3) provide notice of the hearing to:
17-8 (A) each member of the board;
17-9 (B) each member of the advisory committee
17-10 consulted by the department during preparation of the state low
17-11 income housing plan; and
17-12 (C) each member of the legislature;
17-13 (4) [make a reasonable effort to inform interested
17-14 persons and organizations of the hearing;]
17-15 [(5)] make information about the hearing, including,
17-16 if appropriate, the qualified allocation plan, application forms
17-17 for a low income housing tax credit, and the state low income
17-18 housing plan, available on the Internet in accordance with
17-19 Subsection (e) and with Section 2306.077; and
17-20 (5) [(6)] provide an opportunity for persons to
17-21 transmit on the Internet written testimony or comments on a subject
17-22 of a hearing in accordance with rules adopted by the board.
17-23 (e) At least one week before the date of the hearing, all
17-24 materials in the possession of the department that are relevant to
17-25 a matter proposed for discussion at a consolidated public hearing
17-26 under this section must be sent to interested persons and
17-27 organizations, posted on the department's website, made available
18-1 in hard-copy format at the department, filed with the secretary of
18-2 state for publication by reference in the Texas Register, and
18-3 disseminated by any other means required by this chapter or by
18-4 Chapter 551.
18-5 SECTION 1.12. Section 2306.067, Government Code, is amended
18-6 by adding Subsection (d) to read as follows:
18-7 (d) The director may enter into an agreement with the
18-8 manufactured housing division to loan or assign department
18-9 employees, equipment, and facilities to that division.
18-10 SECTION 1.13. Section 2306.0721, Government Code, is amended
18-11 by amending Subsection (c) and adding Subsection (f) to read as
18-12 follows:
18-13 (c) The plan must include:
18-14 (1) an estimate and analysis of the housing needs of
18-15 the following populations in each uniform [the] state service
18-16 region:
18-17 (A) individuals and families of moderate, low,
18-18 [and] very low, and extremely low income;
18-19 (B) individuals with special needs; and
18-20 (C) homeless individuals;
18-21 (2) a proposal to use all available housing resources
18-22 to address the housing needs of the populations described by
18-23 Subdivision (1) by establishing funding levels for all
18-24 housing-related programs;
18-25 (3) an estimate of the number of federally assisted
18-26 housing units available for individuals and families of low and
18-27 very low income and individuals with special needs in each uniform
19-1 state service region [county];
19-2 (4) a description of state programs that govern the
19-3 use of all available housing resources;
19-4 (5) a resource allocation plan that targets all
19-5 available housing resources to individuals and families of low and
19-6 very low income and individuals with special needs in each uniform
19-7 state service region;
19-8 (6) a description of the department's efforts to
19-9 monitor and analyze the unused or underused federal resources of
19-10 other state agencies for housing-related services and services for
19-11 homeless individuals and the department's recommendations to ensure
19-12 the full use by the state of all available federal resources for
19-13 those services in each uniform state service region;
19-14 (7) strategies to provide housing for individuals and
19-15 families with special needs in each uniform state service region;
19-16 (8) a description of the department's efforts to
19-17 encourage in each uniform state service region the construction of
19-18 housing units that incorporate energy efficient construction and
19-19 appliances; [and]
19-20 (9) an estimate and analysis of the housing supply in
19-21 each uniform state service region;
19-22 (10) an inventory of all publicly and, where possible,
19-23 privately funded housing resources, including public housing
19-24 authorities, housing finance corporations, community housing
19-25 development organizations, and community action agencies;
19-26 (11) strategies for meeting rural housing needs;
19-27 (12) information on the demand for contract-for-deed
20-1 conversions, services from self-help centers, consumer education,
20-2 and other colonia resident services in counties some part of which
20-3 is within 150 miles of the international border of this state;
20-4 (13) a summary of public comments received at a
20-5 hearing under this chapter or from another source that concern the
20-6 demand for colonia resident services described by Subdivision (12);
20-7 and
20-8 (14) any other housing-related information that the
20-9 state is required to include in the one-year action plan of the
20-10 consolidated plan submitted annually to the United States
20-11 Department of Housing and Urban Development.
20-12 (f) The director may subdivide the uniform state service
20-13 regions as necessary for purposes of the state low income housing
20-14 plan.
20-15 SECTION 1.14. Section 2306.0722, Government Code, is amended
20-16 to read as follows:
20-17 Sec. 2306.0722. PREPARATION OF PLAN AND REPORT. (a) Before
20-18 preparing the annual low income housing report under Section
20-19 2306.072 and the state low income housing plan under Section
20-20 2306.0721, the department shall meet with regional planning
20-21 commissions created under Chapter 391, Local Government Code,
20-22 representatives of groups with an interest in low income housing,
20-23 nonprofit housing organizations, managers, owners, and developers
20-24 of affordable housing, local government officials, and residents of
20-25 low income housing. The department shall obtain the comments and
20-26 suggestions of the representatives, officials, and residents about
20-27 the prioritization and allocation of the department's resources in
21-1 regard to housing.
21-2 (b) In preparing the annual report under Section 2306.072
21-3 and the state low income housing plan under Section 2306.0721, the
21-4 director shall:
21-5 (1) coordinate local, state, and federal housing
21-6 resources, including tax exempt housing bond financing and low
21-7 income housing tax credits;
21-8 (2) set priorities for the available housing resources
21-9 to help the neediest individuals;
21-10 (3) evaluate the success of publicly supported housing
21-11 programs;
21-12 (4) survey and identify the unmet housing needs of
21-13 individuals the department is required to assist;
21-14 (5) ensure that housing programs benefit an individual
21-15 without regard to the individual's race, ethnicity, sex, or
21-16 national origin;
21-17 (6) develop housing opportunities for individuals and
21-18 families of low and very low income and individuals with special
21-19 housing needs;
21-20 (7) develop housing programs through an open, fair,
21-21 and public process;
21-22 (8) set priorities for assistance in a manner that is
21-23 appropriate and consistent with the housing needs of the
21-24 populations described by Section 2306.0721(c)(1);
21-25 (9) incorporate recommendations that are consistent
21-26 with the consolidated plan submitted annually by the state to the
21-27 United States Department of Housing and Urban Development;
22-1 (10) identify the organizations and individuals
22-2 consulted by the department in preparing the annual report and
22-3 state low income housing plan and summarize and incorporate
22-4 comments and suggestions provided under Subsection (a) as the
22-5 board determines to be appropriate;
22-6 (11) develop a plan to respond to changes in federal
22-7 funding and programs for the provision of affordable housing; [and]
22-8 (12) use the following standardized categories to
22-9 describe the income of program applicants and beneficiaries:
22-10 (A) 0 to 30 percent of area median income
22-11 adjusted for family size;
22-12 (B) more than 30 to 60 percent of area median
22-13 income adjusted for family size;
22-14 (C) more than 60 to 80 percent of area median
22-15 income adjusted for family size;
22-16 (D) more than 80 to 115 percent of area median
22-17 income adjusted for family size; or
22-18 (E) more than 115 percent of area median income
22-19 adjusted for family size; and
22-20 (13) use the most recent census data combined with
22-21 existing data from local housing and community service providers in
22-22 the state, including public housing authorities, housing finance
22-23 corporations, community housing development organizations, and
22-24 community action agencies.
22-25 SECTION 1.15. Section 2306.0723(a), Government Code, is
22-26 amended to read as follows:
22-27 (a) The department shall hold public hearings on the annual
23-1 state low income housing plan and report before the director
23-2 submits the report and the plan to the board. [Public hearings
23-3 shall be held in Dallas or Fort Worth, El Paso, Houston, San
23-4 Antonio, the Lower Rio Grande Valley, and at least two additional
23-5 municipalities selected by the department to represent
23-6 geographically diverse communities.] The department shall provide
23-7 notice of the public hearings as required by Section 2306.0661. The
23-8 published notice must include a summary of the report and plan. The
23-9 department shall accept comments on the report and plan at the
23-10 public hearings and for at least 30 days after the date of the
23-11 publication of the notice of the hearings.
23-12 SECTION 1.16. Section 2306.111, Government Code, is amended
23-13 by amending Subsection (d) and adding Subsections (g) and (h) to
23-14 read as follows:
23-15 (d) The department shall allocate housing funds provided to
23-16 the state under the Cranston-Gonzalez National Affordable Housing
23-17 Act (42 U.S.C. Section 12701 et seq.), housing trust funds
23-18 administered by the department under Sections 2306.201-2306.206,
23-19 and commitments issued under the federal low income housing tax
23-20 credit program administered by the department under Subchapter DD
23-21 [Sections 2306.671-2306.678] to each uniform state service region
23-22 based on a formula developed by the department that is based on the
23-23 need for housing assistance and the availability of housing
23-24 resources, provided that the allocations are consistent with
23-25 applicable federal and state requirements and limitations. The
23-26 department shall use the information contained in its annual state
23-27 low income housing plan and shall use other appropriate data to
24-1 develop the formula. If the department determines under the
24-2 formula that an insufficient number of eligible applications for
24-3 assistance out of funds or credits allocable under this subsection
24-4 are submitted to the department from a particular uniform state
24-5 service region, the department shall use the unused funds or
24-6 credits allocated to that region for all other regions based on
24-7 identified need and financial feasibility.
24-8 (g) For each uniform state service region, the department
24-9 shall establish funding priorities to ensure that:
24-10 (1) funds are awarded to project applicants who are
24-11 best able to meet recognized needs for affordable housing, as
24-12 determined by the department;
24-13 (2) when practicable and when authorized under Section
24-14 42, Internal Revenue Code of 1986 (26 U.S.C. Section 42), the least
24-15 restrictive funding sources are used to serve the lowest income
24-16 residents; and
24-17 (3) funds are awarded based on a project applicant's
24-18 ability, when consistent with Section 42, Internal Revenue Code of
24-19 1986 (26 U.S.C. Section 42), practicable, and economically
24-20 feasible, to:
24-21 (A) provide the greatest number of quality
24-22 residential units;
24-23 (B) serve persons with the lowest percent area
24-24 median family income;
24-25 (C) extend the duration of the project to serve
24-26 a continuing public need;
24-27 (D) use other funding sources to minimize the
25-1 amount of subsidy needed to complete the project; and
25-2 (E) provide integrated, affordable housing for
25-3 individuals and families with different levels of income.
25-4 (h) The department by rule shall adopt a policy providing
25-5 for the reallocation of financial assistance administered by the
25-6 department, including financial assistance related to bonds issued
25-7 by the department, if the department's obligation with respect to
25-8 that assistance is prematurely terminated.
25-9 SECTION 1.17. Subchapter F, Chapter 2306, Government Code, is
25-10 amended by adding Sections 2306.1111, 2306.1112, and 2306.1113 to
25-11 read as follows:
25-12 Sec. 2306.1111. UNIFORM APPLICATION AND FUNDING CYCLE. (a)
25-13 Notwithstanding any other state law and to the extent consistent
25-14 with federal law, the department shall establish a uniform
25-15 application and funding cycle for all single-family and multifamily
25-16 housing programs administered by the department under this chapter.
25-17 (b) Wherever possible, the department shall use uniform
25-18 threshold requirements for single-family and multifamily housing
25-19 program applications, including uniform threshold requirements
25-20 relating to market studies and environmental reports.
25-21 Sec. 2306.1112. EXECUTIVE AWARD AND REVIEW ADVISORY
25-22 COMMITTEE. (a) The department shall establish an executive award
25-23 and review advisory committee to make recommendations to the board
25-24 regarding funding and allocation decisions.
25-25 (b) The advisory committee is composed of the director, the
25-26 administrator of each of the department's programs, and one
25-27 representative from each of the department's planning,
26-1 underwriting, and compliance functions.
26-2 (c) The advisory committee shall develop the funding
26-3 priorities required by Section 2306.111(g) and shall make funding
26-4 and allocation recommendations to the board based on the ability of
26-5 applicants to meet those priorities.
26-6 (d) The advisory committee is not subject to Chapter 2110.
26-7 Sec. 2306.1113. EX PARTE COMMUNICATIONS. (a) During the
26-8 period beginning on the date a project application is filed and
26-9 ending on the date the board makes a final decision with respect to
26-10 any approval of that application, a member of the board or a member
26-11 of the advisory committee established under Section 2306.1112 may
26-12 not communicate with the following persons:
26-13 (1) the applicant or a related party, as defined by
26-14 state law, including board rules, and federal law; and
26-15 (2) any person who is:
26-16 (A) active in the construction, rehabilitation,
26-17 ownership, or control of the proposed project, including:
26-18 (i) a general partner or contractor; and
26-19 (ii) a principal or affiliate of a general
26-20 partner or contractor; or
26-21 (B) employed as a lobbyist by the applicant or a
26-22 related party.
26-23 (b) Notwithstanding Subsection (a), a board member or
26-24 advisory committee member may communicate with a person described
26-25 by that subsection at any board meeting or public hearing held with
26-26 respect to the application.
26-27 SECTION 1.18. Subchapter H, Chapter 2306, Government Code, is
27-1 amended by adding Section 2306.1711 to read as follows:
27-2 Sec. 2306.1711. RULEMAKING PROCEDURES FOR CERTAIN PROGRAMS.
27-3 (a) The department shall adopt rules outlining formal rulemaking
27-4 procedures for the low income housing tax credit program and the
27-5 multifamily housing mortgage revenue bond program in accordance
27-6 with Chapter 2001.
27-7 (b) The rules adopted under Subsection (a) must include:
27-8 (1) procedures for allowing interested parties to
27-9 petition the department to request the adoption of a new rule or
27-10 the amendment of an existing rule;
27-11 (2) notice requirements and deadlines for taking
27-12 certain actions; and
27-13 (3) a provision for a public hearing.
27-14 (c) The department shall provide for public input before
27-15 adopting rules for programs with requests for proposals and notices
27-16 of funding availability.
27-17 SECTION 1.19. Section 2306.252, Government Code, is amended
27-18 by amending Subsection (b) and adding Subsections (d)-(g) to read
27-19 as follows:
27-20 (b) The department, through the center, shall:
27-21 (1) provide educational material prepared in plain
27-22 language to housing advocates, housing sponsors, borrowers, and
27-23 tenants;
27-24 (2) provide technical assistance to nonprofit housing
27-25 sponsors; [and]
27-26 (3) assist in the development of housing policy,
27-27 including the annual state low income housing plan and report and
28-1 the consolidated plan;
28-2 (4) maintain communication with local governments and
28-3 act as an advocate for local governments at the state and federal
28-4 levels;
28-5 (5) assist local governments with advisory and
28-6 technical services;
28-7 (6) provide financial aid to local governments and
28-8 combinations of local governments for programs that are authorized
28-9 to receive assistance;
28-10 (7) provide information about and referrals for state
28-11 and federal programs and services that affect local governments;
28-12 (8) administer, conduct, or jointly sponsor
28-13 educational and training programs for local government officials;
28-14 (9) conduct research on problems of general concern to
28-15 local governments;
28-16 (10) collect, publish, and distribute information
28-17 useful to local governments, including information on:
28-18 (A) local government finances and employment;
28-19 (B) housing;
28-20 (C) population characteristics; and
28-21 (D) land-use patterns;
28-22 (11) encourage cooperation among local governments as
28-23 appropriate;
28-24 (12) advise and inform the governor and the
28-25 legislature about the affairs of local governments and recommend
28-26 necessary action;
28-27 (13) assist the governor in coordinating federal and
29-1 state activities affecting local governments;
29-2 (14) administer, as appropriate:
29-3 (A) state responsibilities for programs created
29-4 under the federal Economic Opportunity Act of 1964 (42 U.S.C.
29-5 Section 2701 et seq.);
29-6 (B) programs assigned to the department under
29-7 the Omnibus Budget Reconciliation Act of 1981 (Pub.L. No. 97-35);
29-8 and
29-9 (C) other federal acts creating economic
29-10 opportunity programs assigned to the department;
29-11 (15) develop a consumer education program to educate
29-12 consumers on executory contract transactions for the conveyance of
29-13 real property used or to be used as the consumer's residence;
29-14 (16) adopt rules that are necessary and proper to
29-15 carry out programs and responsibilities assigned by the legislature
29-16 or the governor; and
29-17 (17) perform other duties relating to local
29-18 governments that are assigned by the legislature or the governor.
29-19 (d) The center shall serve as a housing and community
29-20 services clearinghouse to provide information to the public, local
29-21 communities, housing providers, and other interested parties
29-22 regarding:
29-23 (1) the performance of each department program;
29-24 (2) the number of people served;
29-25 (3) the income of people served;
29-26 (4) the funding amounts distributed;
29-27 (5) allocation decisions;
30-1 (6) regional impact of department programs; and
30-2 (7) any other relevant information.
30-3 (e) The center shall compile the department's reports into
30-4 an integrated format and shall compile and maintain a list of all
30-5 affordable housing resources in the state, organized by community.
30-6 (f) The information required under Subsections (d) and (e)
30-7 must be readily available in:
30-8 (1) a hard-copy format; and
30-9 (2) a user-friendly format on the department's
30-10 website.
30-11 (g) The center shall provide information regarding the
30-12 department's housing and community affairs programs to the Texas
30-13 Information and Referral Network for inclusion in the statewide
30-14 information and referral network as required by Section 531.0312.
30-15 SECTION 1.20. Subchapter K, Chapter 2306, Government Code, is
30-16 amended by adding Sections 2306.256 and 2306.257 to read as
30-17 follows:
30-18 Sec. 2306.256. AFFORDABLE HOUSING PRESERVATION PROGRAM. (a)
30-19 The department shall develop and implement a program to preserve
30-20 affordable housing in this state.
30-21 (b) Through the program, the department shall:
30-22 (1) maintain data on housing projected to lose its
30-23 affordable status;
30-24 (2) develop policies necessary to ensure the
30-25 preservation of affordable housing in this state;
30-26 (3) advise other program areas with respect to the
30-27 policies; and
31-1 (4) assist those other program areas in implementing
31-2 the policies.
31-3 Sec. 2306.257. APPLICANT COMPLIANCE WITH STATE AND FEDERAL
31-4 LAWS PROHIBITING DISCRIMINATION: CERTIFICATION AND MONITORING. (a)
31-5 The department may provide assistance through a housing program
31-6 under this chapter only to an applicant who certifies the
31-7 applicant's compliance with:
31-8 (1) state and federal fair housing laws, including
31-9 Chapter 301, Property Code, Title VIII of the Civil Rights Act of
31-10 1968 (42 U.S.C. Section 3601 et seq.), and the Fair Housing
31-11 Amendments Act of 1988 (42 U.S.C. Section 3601 et seq.);
31-12 (2) the Civil Rights Act of 1964 (42 U.S.C. Section
31-13 2000a et seq.);
31-14 (3) the Americans with Disabilities Act of 1990 (42
31-15 U.S.C. Section 12101 et seq.); and
31-16 (4) the Rehabilitation Act of 1973 (29 U.S.C. Section
31-17 701 et seq.).
31-18 (b) In conjunction with the state Commission on Human
31-19 Rights, the department shall adopt rules governing the
31-20 certification process described by this section, including rules
31-21 establishing:
31-22 (1) procedures for certifying compliance;
31-23 (2) methods for measuring continued compliance; and
31-24 (3) different degrees of sanctions for noncompliance
31-25 and reasonable periods for correcting noncompliance.
31-26 (c) Sanctions imposed under Subsection (b)(3) may:
31-27 (1) include a public reprimand, termination of
32-1 assistance, and a bar on future eligibility for assistance through
32-2 a housing program under this chapter; and
32-3 (2) be imposed in addition to any action taken by the
32-4 state Commission on Human Rights.
32-5 (d) The department shall promptly notify the state
32-6 Commission on Human Rights if the department determines that a
32-7 program participant may have failed to comply with the laws listed
32-8 by Subsection (a).
32-9 SECTION 1.21. Sections 2306.358(a), (a-1), and (b),
32-10 Government Code, are amended to read as follows:
32-11 (a) Of the total qualified 501(c)(3) bonds issued under
32-12 Section 145 of the Internal Revenue Code of 1986 (26 U.S.C. Section
32-13 145) in each fiscal year, it is the express intent of the
32-14 legislature that the department shall allocate qualified 501(c)(3)
32-15 bonding authority as follows:
32-16 (1) [at least 50 percent of the total annual issuance
32-17 amount authorized through the memorandum of understanding provided
32-18 for in Subsection (b) of this section is reserved for the purposes
32-19 of new construction or acquisition with substantial rehabilitation;]
32-20 [(2)] not more than 25 percent of the total annual
32-21 issuance amount authorized through the memorandum of understanding
32-22 provided for in Subsection (b) [of this section] may be used for
32-23 projects in any one metropolitan area; and
32-24 (2) [(3)] at least 15 percent of the annual issuance
32-25 amount authorized through the memorandum of understanding provided
32-26 for in Subsection (b) [of this section] is reserved for projects in
32-27 rural areas.
33-1 (a-1) For the purposes of Subsection (a), "rural[:]
33-2 [(1) "Rural] area" and "metropolitan area" shall be
33-3 defined through the memorandum of understanding provided for in
33-4 Subsection (b) [of this section.]
33-5 [(2) "Substantial rehabilitation" means rehabilitation
33-6 of a project with a minimum of $5,000 of rehabilitation cost per
33-7 unit].
33-8 (b) A qualified 501(c)(3) bond may not be issued unless
33-9 approved by the Bond Review Board. In addition, the Bond Review
33-10 Board shall enter into a memorandum of understanding with the
33-11 department specifying the amount of bonds to be issued in each
33-12 fiscal year. The department and the Bond Review Board shall review
33-13 the memorandum of understanding annually to determine the specific
33-14 amount of bonds to be issued in each fiscal year. The Bond Review
33-15 Board may not approve a proposal to issue qualified 501(c)(3) bonds
33-16 unless they meet the requirements of this section, including the
33-17 memorandum of understanding, and all other laws that may apply.
33-18 SECTION 1.22. Section 2306.431, Government Code, is amended
33-19 by adding Subsection (c) to read as follows:
33-20 (c) Any bonds submitted by the department to the attorney
33-21 general under this section must include a certification by the
33-22 board that home mortgage loans made using the proceeds of the bonds
33-23 do not include a mandatory arbitration requirement.
33-24 SECTION 1.23. The heading to Subchapter Z, Chapter 2306,
33-25 Government Code, is amended to read as follows:
33-26 SUBCHAPTER Z. COLONIAS [COLONIA SELF-HELP CENTERS]
33-27 SECTION 1.24. Subchapter Z, Chapter 2306, Government Code, is
34-1 amended by amending Sections 2306.584 and 2306.585 and adding
34-2 Sections 2306.590 and 2306.591 to read as follows:
34-3 Sec. 2306.584. COLONIA RESIDENT ADVISORY COMMITTEE. (a) The
34-4 board [department] shall appoint not fewer than five persons who
34-5 are residents of colonias to serve on a colonia resident [an]
34-6 advisory committee. The members of the colonia resident advisory
34-7 committee shall be selected from lists of candidates submitted to
34-8 the board [department] by local nonprofit organizations and the
34-9 commissioners court of a county in which a self-help center is
34-10 located.
34-11 (b) The board [department] shall appoint one committee
34-12 member to represent each of the counties in which self-help centers
34-13 are located. Each committee member:
34-14 (1) must be a resident of a colonia in the county the
34-15 member represents; and
34-16 (2) may not be a board member, contractor, or employee
34-17 of or have any ownership interest in an entity that is awarded a
34-18 contract under this subchapter.
34-19 Sec. 2306.585. DUTIES OF COLONIA RESIDENT ADVISORY
34-20 COMMITTEE. (a) The colonia resident advisory committee shall
34-21 advise the board [department] regarding:
34-22 (1) the needs of colonia residents;
34-23 (2) appropriate and effective programs that are
34-24 proposed or are operated through the self-help centers; and
34-25 (3) activities that may be undertaken through the
34-26 self-help centers to better serve the needs of colonia residents.
34-27 (b) The colonia resident advisory committee shall meet
35-1 before the 30th day preceding the date on which a contract is
35-2 scheduled to be awarded for the operation of a self-help center and
35-3 may meet at other times.
35-4 Sec. 2306.590. COLONIA INITIATIVES ADVISORY COMMITTEE. (a)
35-5 The board shall establish a colonia initiatives advisory committee
35-6 that is composed of the following members appointed by the board:
35-7 (1) one member who resides in a colonia;
35-8 (2) one member who represents a nonprofit organization
35-9 that provides assistance to colonia residents;
35-10 (3) one member who represents a local political
35-11 subdivision containing all or part of a colonia;
35-12 (4) one member who represents private interests in
35-13 banking or land development; and
35-14 (5) one member who represents the public.
35-15 (b) Each member of the colonia initiatives advisory
35-16 committee other than the public member must reside within 150 miles
35-17 of the international border of this state.
35-18 (c) The colonia initiatives advisory committee shall:
35-19 (1) review public comments regarding the colonia needs
35-20 assessment incorporated into the state low income housing plan
35-21 under Section 2306.0721; and
35-22 (2) based on those public comments, recommend to the
35-23 board new colonia programs or improvements to existing colonia
35-24 programs.
35-25 Sec. 2306.591. BIENNIAL ACTION PLAN. (a) The office
35-26 established by the department to promote initiatives for colonias
35-27 shall prepare a biennial action plan addressing policy goals for
36-1 colonia programs, strategies to meet the policy goals, and the
36-2 projected outcomes with respect to the policy goals.
36-3 (b) The office shall solicit public comments regarding the
36-4 plan at a public hearing. At least six weeks before the public
36-5 hearing, the office shall prepare and publish an initial draft of
36-6 the plan.
36-7 (c) After the public hearing, the office must publish a
36-8 final plan that:
36-9 (1) lists any changes made to the initial draft of the
36-10 plan that are based on public comments regarding the initial draft;
36-11 and
36-12 (2) directly addresses those public comments.
36-13 (d) The office shall send the final plan to the colonia
36-14 initiatives advisory committee for review and comment. After
36-15 receiving comments, the office shall send the plan to the board for
36-16 final approval, with the comments of the colonia initiatives
36-17 advisory committee attached to the plan.
36-18 SECTION 1.25. Section 2306.589(c), Government Code, is
36-19 amended to read as follows:
36-20 (c) The department may use money in the colonia set-aside
36-21 fund for specific activities that assist colonias, including:
36-22 (1) the operation and activities of the self-help
36-23 centers established under this subchapter;
36-24 (2) reimbursement of colonia resident advisory
36-25 committee members and colonia initiatives advisory committee
36-26 members for their reasonable expenses in the manner provided by
36-27 Chapter 2110 [Article 6252-33, Revised Statutes,] or the General
37-1 Appropriations Act; and
37-2 (3) funding for the provision of water and sewer
37-3 service connections in accordance with Subsection (b).
37-4 SECTION 1.26. Subchapter AA, Chapter 2306, Government Code,
37-5 is amended to read as follows:
37-6 SUBCHAPTER AA. MANUFACTURED HOUSING DIVISION
37-7 Sec. 2306.6001 [2306.601]. DEFINITIONS. In this subchapter:
37-8 (1) "Division" means the manufactured housing
37-9 division.
37-10 (2) "Division director" means the executive director
37-11 of the division.
37-12 (3) "Manufactured Housing Board" means the governing
37-13 board of the division.
37-14 Sec. 2306.6002. REGULATION AND ENFORCEMENT. The department
37-15 shall administer and enforce the Texas Manufactured Housing
37-16 Standards Act (Article 5221f, Vernon's Texas Civil Statutes)
37-17 through the [manufactured housing] division. The Manufactured
37-18 Housing Board [board] and the division director shall exercise
37-19 authority and responsibilities assigned to them under that Act.
37-20 Sec. 2306.6003. MANUFACTURED HOUSING BOARD. (a) The
37-21 Manufactured Housing Board is an independent entity within the
37-22 department, is administratively attached to the department, and is
37-23 not an advisory body to the department.
37-24 (b) The Manufactured Housing Board shall carry out the
37-25 functions and duties conferred on the Manufactured Housing Board by
37-26 this subchapter and by other law.
37-27 Sec. 2306.6004. MANUFACTURED HOUSING BOARD MEMBERSHIP. (a)
38-1 The Manufactured Housing Board consists of five public members
38-2 appointed by the governor.
38-3 (b) A person is eligible to be appointed as a public member
38-4 of the Manufactured Housing Board if the person is a citizen of the
38-5 United States and a resident of this state.
38-6 (c) A person may not be a member of the Manufactured Housing
38-7 Board if the person or the person's spouse:
38-8 (1) is registered, certified, or licensed by a
38-9 regulatory agency in the field of manufactured housing;
38-10 (2) is employed by or participates in the management
38-11 of a business entity or other organization regulated by or
38-12 receiving money from the division;
38-13 (3) owns or controls, directly or indirectly, more
38-14 than a 10 percent interest in a business entity or other
38-15 organization regulated by or receiving money from the division; or
38-16 (4) uses or receives a substantial amount of tangible
38-17 goods, services, or money from the division other than compensation
38-18 or reimbursement authorized by law for Manufactured Housing Board
38-19 membership, attendance, or expenses.
38-20 (d) Appointments to the Manufactured Housing Board shall be
38-21 made without regard to the race, color, disability, sex, religion,
38-22 age, or national origin of the appointees.
38-23 Sec. 2306.6005. CONFLICT OF INTEREST. (a) In this section,
38-24 "Texas trade association" means a cooperative and voluntarily
38-25 joined association of business or professional competitors in this
38-26 state designed to assist its members and its industry or profession
38-27 in dealing with mutual business or professional problems and in
39-1 promoting their common interest.
39-2 (b) A person may not be a member of the Manufactured Housing
39-3 Board and may not be a division employee employed in a "bona fide
39-4 executive, administrative, or professional capacity," as that
39-5 phrase is used for purposes of establishing an exemption to the
39-6 overtime provisions of the federal Fair Labor Standards Act of 1938
39-7 (29 U.S.C. Section 201 et seq.), if:
39-8 (1) the person is an officer, employee, or paid
39-9 consultant of a Texas trade association in the field of
39-10 manufactured housing; or
39-11 (2) the person's spouse is an officer, manager, or
39-12 paid consultant of a Texas trade association in the field of
39-13 manufactured housing.
39-14 (c) A person may not be a member of the Manufactured Housing
39-15 Board or act as the general counsel to the Manufactured Housing
39-16 Board or the division if the person is required to register as a
39-17 lobbyist under Chapter 305 because of the person's activities for
39-18 compensation on behalf of a profession related to the operation of
39-19 the division.
39-20 Sec. 2306.6006. TERMS; VACANCY. (a) The members of the
39-21 Manufactured Housing Board serve staggered six-year terms, with the
39-22 terms of one or two members expiring on January 31 of each
39-23 odd-numbered year.
39-24 (b) A person may not serve two consecutive full six-year
39-25 terms as a member of the Manufactured Housing Board.
39-26 (c) If a vacancy occurs during a member's term, the governor
39-27 shall appoint a new member to fill the unexpired term.
40-1 Sec. 2306.6007. PRESIDING OFFICER. The governor shall
40-2 designate a member of the Manufactured Housing Board as the
40-3 presiding officer of the Manufactured Housing Board to serve in
40-4 that capacity at the will of the governor.
40-5 Sec. 2306.6008. GROUNDS FOR REMOVAL. (a) It is a ground for
40-6 removal from the Manufactured Housing Board that a member:
40-7 (1) does not have at the time of taking office the
40-8 qualifications required by Section 2306.6004(b);
40-9 (2) does not maintain during service on the
40-10 Manufactured Housing Board the qualifications required by Section
40-11 2306.6004(b);
40-12 (3) is ineligible for membership under Section
40-13 2306.6004(c) or 2306.6005;
40-14 (4) cannot, because of illness or disability,
40-15 discharge the member's duties for a substantial part of the
40-16 member's term; or
40-17 (5) is absent from more than half of the regularly
40-18 scheduled Manufactured Housing Board meetings that the member is
40-19 eligible to attend during a calendar year without an excuse
40-20 approved by a majority vote of the Manufactured Housing Board.
40-21 (b) The validity of an action of the Manufactured Housing
40-22 Board is not affected by the fact that it is taken when a ground
40-23 for removal of a Manufactured Housing Board member exists.
40-24 (c) If the division director has knowledge that a potential
40-25 ground for removal exists, the division director shall notify the
40-26 presiding officer of the Manufactured Housing Board of the
40-27 potential ground. The presiding officer shall then notify the
41-1 governor and the attorney general that a potential ground for
41-2 removal exists. If the potential ground for removal involves the
41-3 presiding officer, the division director shall notify the next
41-4 highest ranking officer of the Manufactured Housing Board, who
41-5 shall then notify the governor and the attorney general that a
41-6 potential ground for removal exists.
41-7 Sec. 2306.6009. REIMBURSEMENT. A Manufactured Housing Board
41-8 member may not receive compensation, but may be reimbursed for
41-9 actual travel expenses, including expenses for meals, lodging, and
41-10 transportation. A Manufactured Housing Board member is entitled to
41-11 reimbursement for transportation expenses as provided by the
41-12 General Appropriations Act.
41-13 Sec. 2306.6010. MEETINGS. (a) The Manufactured Housing
41-14 Board shall have regular meetings as the majority of the members
41-15 may specify and special meetings at the request of the presiding
41-16 officer, any two members, or the division director.
41-17 (b) Reasonable notice of all meetings shall be given as
41-18 prescribed by Manufactured Housing Board rules.
41-19 (c) The presiding officer shall preside at all meetings of
41-20 the Manufactured Housing Board. In the absence of the presiding
41-21 officer, the members present shall select one of the members to
41-22 preside at the meeting.
41-23 Sec. 2306.6011. TRAINING. (a) A person who is appointed to
41-24 and qualifies for office as a member of the Manufactured Housing
41-25 Board may not vote, deliberate, or be counted as a member in
41-26 attendance at a meeting of the Manufactured Housing Board until the
41-27 person completes a training program that complies with this
42-1 section.
42-2 (b) The training program must provide the person with
42-3 information regarding:
42-4 (1) the legislation that created the division and the
42-5 Manufactured Housing Board;
42-6 (2) the programs operated by the division;
42-7 (3) the role and functions of the division;
42-8 (4) the rules of the division, with an emphasis on the
42-9 rules that relate to disciplinary and investigatory authority;
42-10 (5) the current budget for the division;
42-11 (6) the results of the most recent formal audit of the
42-12 division;
42-13 (7) the requirements of:
42-14 (A) the open meetings law, Chapter 551;
42-15 (B) the public information law, Chapter 552;
42-16 (C) the administrative procedure law, Chapter
42-17 2001; and
42-18 (D) other laws relating to public officials,
42-19 including conflict-of-interest laws; and
42-20 (8) any applicable ethics policies adopted by the
42-21 division or the Texas Ethics Commission.
42-22 (c) A person appointed to the Manufactured Housing Board is
42-23 entitled to reimbursement, as provided by the General
42-24 Appropriations Act, for the travel expenses incurred in attending
42-25 the training program regardless of whether the attendance at the
42-26 program occurs before or after the person qualifies for office.
42-27 Sec. 2306.6012. APPROPRIATIONS; DONATIONS. (a) The
43-1 legislature shall separately appropriate money to the Manufactured
43-2 Housing Board within the appropriations to the department for all
43-3 matters relating to the operation of the division.
43-4 (b) The Manufactured Housing Board may accept gifts and
43-5 grants of money or property under this subchapter and shall spend
43-6 the money and use the property for the purpose for which the
43-7 donation was made, except that the expenditure of money or use of
43-8 property must promote the acceptance of HUD-Code manufactured homes
43-9 as a viable source of housing for very low, low, and moderate
43-10 income families.
43-11 Sec. 2306.6013. BUDGET; SHARING OF DEPARTMENT PERSONNEL,
43-12 EQUIPMENT, AND FACILITIES. (a) The Manufactured Housing Board
43-13 shall develop a budget for the operations of the department
43-14 relating to the division.
43-15 (b) The Manufactured Housing Board shall reduce
43-16 administrative costs by entering into an agreement with the
43-17 department to enable the sharing of department personnel,
43-18 equipment, and facilities.
43-19 Sec. 2306.6014. DIVISION DIRECTOR. (a) The Manufactured
43-20 Housing Board shall employ the division director. The division
43-21 director is the Manufactured Housing Board's chief executive and
43-22 administrative officer.
43-23 (b) The division director is charged with administering,
43-24 enforcing, and carrying out the functions and duties conferred on
43-25 the division director by this subchapter and by other law.
43-26 (c) The division director serves at the pleasure of the
43-27 Manufactured Housing Board.
44-1 Sec. 2306.6015 [2306.602]. PERSONNEL. The division director
44-2 may employ staff as necessary to perform the work of the
44-3 [manufactured housing] division and may prescribe their duties and
44-4 compensation. Subject to applicable personnel policies and
44-5 regulations, the division director may remove any division
44-6 employee.
44-7 Sec. 2306.6016. SEPARATION OF RESPONSIBILITIES. The
44-8 Manufactured Housing Board shall develop and implement policies
44-9 that clearly separate the policy-making responsibilities of the
44-10 Manufactured Housing Board and the management responsibilities of
44-11 the division director and staff of the division.
44-12 Sec. 2306.6017. STANDARDS OF CONDUCT. The division director
44-13 or the division director's designee shall provide to members of the
44-14 Manufactured Housing Board and to division employees, as often as
44-15 necessary, information regarding the requirements for office or
44-16 employment under this subchapter, including information regarding a
44-17 person's responsibilities under applicable laws relating to
44-18 standards of conduct for state officers or employees.
44-19 Sec. 2306.6018. EQUAL EMPLOYMENT OPPORTUNITY. (a) The
44-20 division director or the division director's designee shall prepare
44-21 and maintain a written policy statement that implements a program
44-22 of equal employment opportunity to ensure that all personnel
44-23 decisions are made without regard to race, color, disability, sex,
44-24 religion, age, or national origin.
44-25 (b) The policy statement must include:
44-26 (1) personnel policies, including policies relating to
44-27 recruitment, evaluation, selection, training, and promotion of
45-1 personnel, that show the intent of the division to avoid the
45-2 unlawful employment practices described by Chapter 21, Labor Code;
45-3 and
45-4 (2) an analysis of the extent to which the composition
45-5 of the division's personnel is in accordance with state and federal
45-6 law and a description of reasonable methods to achieve compliance
45-7 with state and federal law.
45-8 (c) The policy statement must:
45-9 (1) be updated annually;
45-10 (2) be reviewed by the state Commission on Human
45-11 Rights for compliance with Subsection (b)(1); and
45-12 (3) be filed with the governor's office.
45-13 Sec. 2306.6019. STATE EMPLOYEE INCENTIVE PROGRAM. The
45-14 division director or the division director's designee shall provide
45-15 to division employees information and training on the benefits and
45-16 methods of participation in the state employee incentive program
45-17 under Subchapter B, Chapter 2108.
45-18 Sec. 2306.6020 [2306.603]. RULES. (a) The Manufactured
45-19 Housing Board [director] shall adopt rules as necessary to
45-20 implement this subchapter and to administer and enforce the
45-21 manufactured housing program through the [manufactured housing]
45-22 division. Rules adopted by the Manufactured Housing Board
45-23 [director] are subject to Chapter 2001[, Government Code].
45-24 (b) The Manufactured Housing Board [director] may not adopt
45-25 rules restricting competitive bidding or advertising by a person
45-26 regulated by the division except to prohibit false, misleading, or
45-27 deceptive practices by that person.
46-1 (c) The Manufactured Housing Board [director] may not
46-2 include in the rules to prohibit false, misleading, or deceptive
46-3 practices by a person regulated by the division a rule that:
46-4 (1) restricts the use of any advertising medium;
46-5 (2) restricts the person's personal appearance or the
46-6 use of the person's voice in an advertisement;
46-7 (3) relates to the size or duration of an
46-8 advertisement used by the person; or
46-9 (4) restricts the use of a trade name in advertising
46-10 by the person.
46-11 Sec. 2306.6021. PUBLIC PARTICIPATION. The Manufactured
46-12 Housing Board shall develop and implement policies that provide the
46-13 public with a reasonable opportunity to appear before the
46-14 Manufactured Housing Board and to speak on any issue under the
46-15 jurisdiction of the division.
46-16 Sec. 2306.6022. COMPLAINTS. (a) The division shall maintain
46-17 a file on each written complaint filed with the division. The file
46-18 must include:
46-19 (1) the name of the person who filed the complaint;
46-20 (2) the date the complaint is received by the
46-21 division;
46-22 (3) the subject matter of the complaint;
46-23 (4) the name of each person contacted in relation to
46-24 the complaint;
46-25 (5) a summary of the results of the review or
46-26 investigation of the complaint; and
46-27 (6) an explanation of the reason the file was closed,
47-1 if the division closed the file without taking action other than to
47-2 investigate the complaint.
47-3 (b) The division shall provide to the person filing the
47-4 complaint and to each person who is a subject of the complaint a
47-5 copy of the division's policies and procedures relating to
47-6 complaint investigation and resolution.
47-7 (c) The division, at least quarterly until final disposition
47-8 of the complaint, shall notify the person filing the complaint and
47-9 each person who is a subject of the complaint of the status of the
47-10 investigation unless the notice would jeopardize an undercover
47-11 investigation.
47-12 (d) Unless otherwise confidential by law, the records of a
47-13 license holder or other person that are required or obtained by the
47-14 division or its agents or employees in connection with the
47-15 investigation of a complaint are subject to the requirements of
47-16 Chapter 552.
47-17 Sec. 2306.6023 [2306.604]. SANCTIONS AND PENALTIES. (a) The
47-18 Manufactured Housing Board [director] shall adopt rules relating to
47-19 the administrative sanctions that may be enforced against a person
47-20 regulated by the [manufactured housing] division. If the person
47-21 violates a law relating to the regulation of manufactured housing
47-22 or a rule or order adopted or issued by the Manufactured Housing
47-23 Board [director] relating to the program, the division director
47-24 may:
47-25 (1) issue a written reprimand to the person that
47-26 specifies the violation;
47-27 (2) revoke or suspend the person's certificate of
48-1 registration; or
48-2 (3) place on probation a person whose certificate of
48-3 registration has been suspended.
48-4 (b) In addition to or in lieu of a sanction imposed under
48-5 Subsection (a) of this section, the Manufactured Housing Board
48-6 [board] may assess an administrative penalty in an amount not to
48-7 exceed $1,000 for each violation.
48-8 (c) If a suspension is probated, the division director may
48-9 require the person to report regularly to the division director on
48-10 matters that are the basis of the probation.
48-11 (d) If the division director proposes to suspend or revoke a
48-12 certificate of registration or the division director proposes to
48-13 assess an administrative penalty against a person regulated by the
48-14 division, the person is entitled to a hearing before a hearings
48-15 officer appointed by the division director. The Manufactured
48-16 Housing Board [director] by rule shall prescribe the procedures by
48-17 which a decision to suspend or revoke a certificate of registration
48-18 or to assess an administrative penalty are made and are appealable.
48-19 (e) In determining the amount of an administrative penalty
48-20 assessed under this section, the Manufactured Housing Board [board]
48-21 shall consider:
48-22 (1) the seriousness of the violation;
48-23 (2) the history of previous violations;
48-24 (3) the amount necessary to deter future violations;
48-25 (4) efforts made to correct the violation; and
48-26 (5) any other matters that justice may require.
48-27 (f) If, after investigation of a possible violation and the
49-1 facts surrounding that possible violation, the division director
49-2 determines that a violation has occurred, the division director
49-3 shall issue a preliminary report stating the facts on which the
49-4 conclusion that a violation occurred is based, recommending that an
49-5 administrative penalty under this section be imposed on the person
49-6 charged, and recommending the amount of that proposed penalty. The
49-7 division director shall base the recommended amount of the proposed
49-8 penalty on the seriousness of the violation determined by
49-9 consideration of the factors set forth in Subsection (e) [of this
49-10 section].
49-11 (g) Not later than the 14th day after the date on which the
49-12 preliminary report is issued, the division director shall give
49-13 written notice of the violation to the person charged. The notice
49-14 shall include:
49-15 (1) a brief summary of the charges;
49-16 (2) a statement of the amount of the penalty
49-17 recommended; and
49-18 (3) a statement of the right of the person charged to
49-19 a hearing on the occurrence of the violation, the amount of the
49-20 penalty, or both the occurrence of the violation and the amount of
49-21 the penalty.
49-22 (h) Not later than the 20th day after the date on which the
49-23 notice is received, the person charged may accept the determination
49-24 of the division director made under Subsection (f) [of this
49-25 section], including the recommended penalty, or make a written
49-26 request for a hearing on that determination.
49-27 (i) If the person charged with the violation accepts the
50-1 determination of the division director, the division director shall
50-2 issue an order approving the determination and ordering that the
50-3 person pay the recommended penalty.
50-4 (j) If the person charged fails to respond in a timely
50-5 manner to the notice or if the person requests a hearing, the
50-6 division director shall set a hearing, give written notice of the
50-7 hearing to the person, and designate a hearings examiner to conduct
50-8 the hearing. The hearings examiner shall make findings of fact and
50-9 conclusions of law and shall promptly issue to the Manufactured
50-10 Housing Board [board] a proposal for decision as to the occurrence
50-11 of the violation and a recommendation as to the amount of the
50-12 proposed penalty if a penalty is determined to be warranted. Based
50-13 on the findings of fact and conclusions of law and the
50-14 recommendations of the hearings examiner, the Manufactured Housing
50-15 Board [board] by order may find that a violation has occurred and
50-16 may assess a penalty, or may find that no violation has occurred.
50-17 (k) The division director shall give notice of the
50-18 Manufactured Housing Board's [board's] order to the person charged.
50-19 The notice must include:
50-20 (1) separate statements of the findings of fact and
50-21 conclusions of law;
50-22 (2) the amount of any penalty assessed;
50-23 (3) a statement of the right of the person charged to
50-24 judicial review of the Manufactured Housing Board's [commission's]
50-25 order; and
50-26 (4) any other information required by law.
50-27 (l) Not later than the 30th day after the date on which the
51-1 decision is final, the person charged shall:
51-2 (1) pay the penalty in full; or
51-3 (2) if the person files a petition for judicial review
51-4 contesting the fact of the violation, the amount of the penalty, or
51-5 both the fact of the violation and the amount of the penalty:
51-6 (A) forward the amount assessed to the division
51-7 [department] for deposit in an escrow account;
51-8 (B) in lieu of payment into escrow, post with
51-9 the division [department] a supersedeas bond for the amount of the
51-10 penalty, in a form approved by the division director and effective
51-11 until judicial review of the decision is final; or
51-12 (C) without paying the amount of the penalty or
51-13 posting the supersedeas bond, pursue the judicial review.
51-14 (m) A person charged with a penalty who is financially
51-15 unable to comply with Subsection (l)(2) [of this section] is
51-16 entitled to judicial review if the person files with the court, as
51-17 part of the person's petition for judicial review, a sworn
51-18 statement that the person is unable to meet the requirements of
51-19 that subsection.
51-20 (n) If the person charged does not pay the penalty and does
51-21 not pursue judicial review, the division [department] or the
51-22 attorney general may bring an action for the collection of the
51-23 penalty.
51-24 (o) Judicial review of the order of the Manufactured Housing
51-25 Board [board] assessing the penalty is subject to the substantial
51-26 evidence rule and shall be instituted by filing a petition with a
51-27 Travis County district court.
52-1 (p) If, after judicial review, the penalty is reduced or not
52-2 assessed, the division director shall remit to the person charged
52-3 the appropriate amount, plus accrued interest if the penalty has
52-4 been paid, or shall execute a release of the bond if a supersedeas
52-5 bond has been posted. The accrued interest on amounts remitted by
52-6 the division director under this subsection shall be paid at a rate
52-7 equal to the rate charged on loans to depository institutions by
52-8 the New York Federal Reserve Bank, and shall be paid for the period
52-9 beginning on the date that the assessed penalty is paid to the
52-10 division director and ending on the date the penalty is remitted.
52-11 (q) A penalty collected under this section shall be
52-12 deposited in the state treasury to the credit of the general
52-13 revenue fund.
52-14 (r) All proceedings conducted under this section and any
52-15 review or appeal of those proceedings are subject to Chapter 2001[,
52-16 Government Code].
52-17 (s) If it appears that a person is in violation of, or is
52-18 threatening to violate, any provision of the Texas Manufactured
52-19 Housing Standards Act (Article 5221f, Vernon's Texas Civil
52-20 Statutes), or a rule or order related to the administration and
52-21 enforcement of the manufactured housing program, the attorney
52-22 general or the division director may institute an action for
52-23 injunctive relief to restrain the person from continuing the
52-24 violation and for civil penalties not to exceed $1,000 for each
52-25 violation and not exceeding $250,000 in the aggregate. A civil
52-26 action filed under this subsection shall be filed in district court
52-27 in Travis County. The attorney general and the division director
53-1 may recover reasonable expenses incurred in obtaining injunctive
53-2 relief under this subsection, including court costs, reasonable
53-3 attorney's fees, investigative costs, witness fees, and deposition
53-4 expenses.
53-5 [Sec. 2306.605. ACCEPTANCE OF DONATIONS. The department may
53-6 accept gifts and grants of money or property under this chapter and
53-7 shall spend the money and use the property for the purpose for
53-8 which the donation was made, except that the expenditure of money
53-9 or use of property must promote the acceptance of HUD-Code
53-10 manufactured homes as a viable source of housing for very low, low,
53-11 and moderate income families.]
53-12 SECTION 1.27. Subchapter DD, Chapter 2306, Government Code,
53-13 is amended by adding Sections 2306.6728 and 2306.6729 to read as
53-14 follows:
53-15 Sec. 2306.6728. DEPARTMENT POLICY AND PROCEDURES REGARDING
53-16 RECIPIENTS OF CERTAIN FEDERAL HOUSING ASSISTANCE. (a) The
53-17 department by rule shall adopt a policy regarding the admittance to
53-18 low income housing tax credit properties of income-eligible
53-19 individuals and families receiving assistance under Section 8,
53-20 United States Housing Act of 1937 (42 U.S.C. Section 1437f).
53-21 (b) The policy must provide a reasonable minimum income
53-22 standard that is not otherwise prohibited by this chapter and that
53-23 is to be used by owners of low income housing tax credit properties
53-24 and must place reasonable limits on the use of any other factors
53-25 that impede the admittance of individuals and families described by
53-26 Subsection (a) to those properties, including credit histories,
53-27 security deposits, and employment histories.
54-1 (c) The department by rule shall establish procedures to
54-2 monitor low income housing tax credit properties that refuse to
54-3 admit individuals and families described by Subsection (a). The
54-4 department by rule shall establish enforcement mechanisms with
54-5 respect to those properties, including a range of sanctions to be
54-6 imposed against the owners of those properties.
54-7 Sec. 2306.6729. QUALIFIED NONPROFIT ORGANIZATION. (a) A
54-8 qualified nonprofit organization may compete in any low income
54-9 housing tax credit allocation pool, including:
54-10 (1) the nonprofit allocation pool;
54-11 (2) the rural projects/prison communities allocation
54-12 pool; and
54-13 (3) the general projects allocation pool.
54-14 (b) A qualified nonprofit organization submitting an
54-15 application under this subchapter must have a controlling interest
54-16 in a project proposed to be financed with a low income housing tax
54-17 credit from the nonprofit allocation pool.
54-18 SECTION 1.28. Section 531.0312, Government Code, is amended
54-19 by adding Subsection (d) to read as follows:
54-20 (d) The Texas Department of Housing and Community Affairs
54-21 shall provide the Texas Information and Referral Network with
54-22 information regarding the department's housing and community
54-23 affairs programs for inclusion in the statewide information and
54-24 referral network. The department shall provide the information in
54-25 a form determined by the commissioner and shall update the
54-26 information at least quarterly.
54-27 SECTION 1.29. Section 1372.023, Government Code, is amended
55-1 to read as follows:
55-2 Sec. 1372.023. DEDICATION OF PORTIONS [PORTION] OF STATE
55-3 CEILING TO TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS. (a)
55-4 Until August 15 [25], of that portion of the state ceiling that is
55-5 available exclusively for reservations by issuers of qualified
55-6 mortgage bonds, one-third is available exclusively to the Texas
55-7 Department of Housing and Community Affairs for the purpose of
55-8 issuing qualified mortgage bonds.
55-9 (b) Until August 15, of that portion of the state ceiling
55-10 that is available exclusively for reservations by issuers of
55-11 qualified residential rental project bonds, one-fourth is available
55-12 exclusively to the Texas Department of Housing and Community
55-13 Affairs in the manner described by Section 1372.0231.
55-14 (c) The Texas Department of Housing and Community Affairs
55-15 may not reserve a portion of the state ceiling that is available
55-16 exclusively for reservations by issuers of qualified residential
55-17 rental project bonds other than the portion dedicated to the
55-18 department under Subsection (b).
55-19 SECTION 1.30. Section 1372.025(b), Government Code, is
55-20 amended to read as follows:
55-21 (b) Subsection (a) does not apply to qualified mortgage
55-22 bonds or qualified residential rental project bonds made available
55-23 exclusively to the Texas Department of Housing and Community
55-24 Affairs under Section 1372.023.
55-25 SECTION 1.31. Sections 3(3), (7), and (8), Texas Manufactured
55-26 Housing Standards Act (Article 5221f, Vernon's Texas Civil
55-27 Statutes), are amended to read as follows:
56-1 (3) "Board" means the Manufactured Housing Board
56-2 within the Texas Department of Housing and Community Affairs
56-3 [governing board of the department].
56-4 (7) "Department" means the Texas Department of Housing
56-5 and Community Affairs operating through its manufactured housing
56-6 division.
56-7 (8) "Director" means the executive director of the
56-8 manufactured housing division of the Texas Department of Housing
56-9 and Community Affairs [department].
56-10 SECTION 1.32. Section 7, Texas Manufactured Housing Standards
56-11 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
56-12 amending Subsections (g) and (k) and adding Subsections (t)-(y) to
56-13 read as follows:
56-14 (g) All licenses are valid for one year and are renewable as
56-15 provided by the director. The board by rule may adopt a system
56-16 under which licenses expire on various dates during the year. For
56-17 the year in which the license expiration date is changed, the
56-18 department shall prorate license fees on a monthly basis so that
56-19 each license holder pays only that portion of the license fee that
56-20 is allocable to the number of months during which the license is
56-21 valid. On renewal of the license on the new expiration date, the
56-22 total license renewal fee is payable.
56-23 (k) The director shall conduct any hearing involving the
56-24 denial, renewal, revocation or suspension of a license in
56-25 accordance with Chapter 2001, Government Code. The department may
56-26 place on probation a person whose license is suspended. If a
56-27 license suspension is probated, the department may require the
57-1 person:
57-2 (1) to report regularly to the department on matters
57-3 that are the basis of the probation;
57-4 (2) to limit practice to the areas prescribed by the
57-5 department; or
57-6 (3) to continue or review professional education until
57-7 the person attains a degree of skill satisfactory to the department
57-8 in those areas that are the basis of the probation.
57-9 (t) A person whose license has expired may not engage in
57-10 activities that require a license until the license has been
57-11 renewed.
57-12 (u) A person whose license has been expired for 90 days or
57-13 less may renew the license by paying to the department a renewal
57-14 fee that is equal to 1-1/2 times the normally required renewal fee.
57-15 (v) A person whose license has been expired for more than 90
57-16 days but less than one year may renew the license by paying to the
57-17 department a renewal fee that is equal to two times the normally
57-18 required renewal fee.
57-19 (w) A person whose license has been expired for one year or
57-20 more may not renew the license. The person may obtain a new
57-21 license by complying with the requirements and procedures for
57-22 obtaining an original license.
57-23 (x) A person who was licensed in this state, moved to
57-24 another state, and is currently licensed and has been in practice
57-25 in the other state for the two years preceding the date of
57-26 application may obtain a new license without fulfilling the
57-27 instruction requirements of Subsection (o). The person must pay to
58-1 the department a fee that is equal to two times the normally
58-2 required renewal fee for the license.
58-3 (y) Not later than the 30th day before the date a person's
58-4 license is scheduled to expire, the department shall send written
58-5 notice of the impending expiration to the person at the person's
58-6 last known address according to the records of the department.
58-7 SECTION 1.33. Section 7(s), Texas Manufactured Housing
58-8 Standards Act (Article 5221f, Vernon's Texas Civil Statutes), as
58-9 added by Chapter 351, Acts of the 76th Legislature, Regular
58-10 Session, 1999, is amended to read as follows:
58-11 (s) A person licensed as a real estate broker or salesperson
58-12 under The Real Estate License Act (Article 6573a, Vernon's Texas
58-13 Civil Statutes) may act as a manufactured housing broker or
58-14 salesperson without holding a license under this Act or posting a
58-15 surety bond or other security under this Act, provided that any
58-16 negotiations for the sale, exchange, or lease-purchase of a
58-17 manufactured home are conducted for a consumer for whom the person
58-18 is also acting as a real estate broker or salesperson consistent
58-19 with Section 18(e) of this Act.
58-20 SECTION 1.34. Section 7A, Texas Manufactured Housing
58-21 Standards Act (Article 5221f, Vernon's Texas Civil Statutes), is
58-22 amended to read as follows:
58-23 Sec. 7A. EDUCATION PROGRAMS. (a) The department [director]
58-24 may recognize, prepare, or administer certification programs [and
58-25 continuing education programs] for persons regulated under this
58-26 Act. Participation in the programs is voluntary.
58-27 (b) The board shall recognize, prepare, or administer
59-1 continuing education programs for its license holders. A license
59-2 holder must participate in the continuing education programs to the
59-3 extent required by the board to retain the person's license.
59-4 (c) To prepare or administer a certification program or a
59-5 continuing education program under this section, the board may
59-6 contract with a private, nonprofit, tax-exempt organization listed
59-7 in Section 501(c)(3), Internal Revenue Code of 1986 (26 U.S.C.
59-8 Section 501(c)(3)) or with an educational institution.
59-9 (d) The department [director] shall issue appropriate
59-10 certificates to those persons who complete a [the] certification
59-11 program or who participate in a [the] continuing education program
59-12 under this section.
59-13 SECTION 1.35. (a) The nine members of the governing board of
59-14 the Texas Department of Housing and Community Affairs who are
59-15 serving immediately before September 1, 2001, continue to serve as
59-16 members of the governing board of the department on and after that
59-17 date regardless of whether those members meet the membership
59-18 requirements prescribed by Subchapter B, Chapter 2306, Government
59-19 Code, as amended by this Act. However, the positions of those nine
59-20 members are abolished on the date on which a majority of the seven
59-21 board membership positions that are created under Subchapter B,
59-22 Chapter 2306, Government Code, as amended by this Act, are filled
59-23 by appointment by the governor and the appointees qualify for
59-24 office.
59-25 (b) The governor shall make the seven appointments to the
59-26 board under Subchapter B, Chapter 2306, Government Code, as amended
59-27 by this Act, as soon as possible on or after September 1, 2001. In
60-1 making the initial appointments, the governor shall designate two
60-2 members for terms expiring January 31, 2003, two members for terms
60-3 expiring January 31, 2005, and three members for terms expiring
60-4 January 31, 2007. The governor may reappoint any person to the
60-5 board who served as a member of the board before September 1, 2001.
60-6 (c) The changes in law made by this Act in amending
60-7 Subchapter B, Chapter 2306, Government Code, do not affect the
60-8 ability of the director of the Texas Department of Housing and
60-9 Community Affairs who is serving on the effective date of this Act
60-10 to continue to serve in that capacity until the governing board of
60-11 the department appointed by the governor under Subchapter B,
60-12 Chapter 2306, Government Code, as amended by this Act, employs a
60-13 director under Chapter 2306.
60-14 SECTION 1.36. (a) The governor shall make the appointments
60-15 to the Manufactured Housing Board created by Subchapter AA, Chapter
60-16 2306, Government Code, as amended by this Act, as soon as possible
60-17 on or after September 1, 2001. In making the initial appointments,
60-18 the governor shall designate one member for a term expiring January
60-19 31, 2003, two members for terms expiring January 31, 2005, and two
60-20 members for terms expiring January 31, 2007.
60-21 (b) Until the Manufactured Housing Board employs a division
60-22 director for the manufactured housing division of the Texas
60-23 Department of Housing and Community Affairs, the director of the
60-24 department may continue to carry out the functions of the division
60-25 director for that division.
60-26 SECTION 1.37. As soon as practicable after the effective date
60-27 of this Act, the new governing board of the Texas Department of
61-1 Housing and Community Affairs appointed by the governor under
61-2 Subchapter B, Chapter 2306, Government Code, as amended by this
61-3 Act, shall develop a strategic action plan to implement the
61-4 requirements of this Act. The board shall employ a director to
61-5 provide and monitor the provision of administrative support to the
61-6 board to assist in implementing the plan. The director shall
61-7 evaluate the organizational structure of the department, including
61-8 the evaluation of essential management positions, and shall make
61-9 any organizational changes necessary to implement the plan and the
61-10 other requirements of this Act.
61-11 SECTION 1.38. (a) Not later than December 31, 2002, the
61-12 Sunset Advisory Commission shall evaluate the success of the Texas
61-13 Department of Housing and Community Affairs in implementing the
61-14 requirements of this Act before that date, including actions taken
61-15 by the department with respect to the following:
61-16 (1) establishment of a functional governing board that
61-17 values public input and enables board members to develop the
61-18 expertise necessary to make informed decisions about and to ensure
61-19 the accountability of the department and the programs of the
61-20 department;
61-21 (2) establishment of an organizational structure to
61-22 develop and implement a statewide needs assessment and a
61-23 corresponding allocation process that:
61-24 (A) ensure that the state's objectives regarding
61-25 housing and community support services are fulfilled;
61-26 (B) ensure that the state's most critical needs
61-27 regarding housing and community support services are identified and
62-1 met;
62-2 (C) incorporate input from local entities;
62-3 (D) maximize the preservation of affordable
62-4 housing; and
62-5 (E) achieve the best use of state resources;
62-6 (3) development of policies and procedures that
62-7 clearly define the appropriate roles of board members, the
62-8 director, and department staff;
62-9 (4) implementation of rules outlining a formal process
62-10 to appeal board decisions; and
62-11 (5) establishment of project compliance procedures
62-12 that ensure that the programs of the department provide fair access
62-13 to housing and community support services in this state.
62-14 (b) Before January 1, 2003, the Sunset Advisory Commission
62-15 shall report the results of evaluation to the presiding officer of
62-16 each house of the legislature.
62-17 SECTION 1.39. The rules of the Texas Department of Housing
62-18 and Community Affairs relating to the administration and
62-19 enforcement of the Texas Manufactured Housing Standards Act
62-20 (Article 5221f, Vernon's Texas Civil Statutes) are continued in
62-21 effect as rules of the manufactured housing division of the Texas
62-22 Department of Housing and Community Affairs until amended or
62-23 repealed by that division. Each affected license, certificate,
62-24 permit, bond, order, security, or registration issued or regulated
62-25 by the Texas Department of Housing and Community Affairs is
62-26 continued in effect as a license, certificate, permit, bond, order,
62-27 security, or registration of the manufactured housing division of
63-1 the Texas Department of Housing and Community Affairs.
63-2 SECTION 1.40. A complaint or investigation pending before the
63-3 Texas Department of Housing and Community Affairs on August 31,
63-4 2001, is transferred without change in status to the manufactured
63-5 housing division of the Texas Department of Housing and Community
63-6 Affairs on the effective date of this Act. A contested case
63-7 pending before the Texas Department of Housing and Community
63-8 Affairs on August 31, 2001, is transferred to the jurisdiction of
63-9 the manufactured housing division of the Texas Department of
63-10 Housing and Community Affairs on the effective date of this Act,
63-11 and actions taken in the proceeding shall be treated as if taken by
63-12 that division.
63-13 SECTION 1.41. A reference in a law to the Texas Department of
63-14 Housing and Community Affairs relating to the administration and
63-15 enforcement of the Texas Manufactured Housing Standards Act
63-16 (Article 5221f, Vernon's Texas Civil Statutes) means the
63-17 manufactured housing division of the Texas Department of Housing
63-18 and Community Affairs.
63-19 SECTION 1.42. Sections 2306.023, 2306.026, 2306.052(d), and
63-20 2306.092, Government Code, are repealed.
63-21 SECTION 1.43. Section 7(s), Texas Manufactured Housing
63-22 Standards Act (Article 5221f, Vernon's Texas Civil Statutes), as
63-23 added by Chapter 1369, Acts of the 76th Legislature, Regular
63-24 Session, 1999, is repealed.
63-25 SECTION 1.44. A member of the governing board of the Texas
63-26 Department of Housing and Community Affairs or of the Manufactured
63-27 Housing Board is not subject to the prohibition imposed by Section
64-1 2306.028 or 2306.6011, Government Code, as applicable, until
64-2 September 1, 2002.
64-3 SECTION 1.45. The change in law made by this Act in adding
64-4 Section 2306.6728, Government Code, applies only to a low income
64-5 housing tax credit property for which an application for an
64-6 allocation of low income housing tax credits is received by the
64-7 Texas Department of Housing and Community Affairs on or after
64-8 August 10, 1993.
64-9 ARTICLE 2
64-10 SECTION 2.01. Section 2306.004, Government Code, is amended
64-11 by adding Subdivisions (31)-(34) to read as follows:
64-12 (31) "Economic submarket" means a group of borrowers
64-13 who have common home mortgage loan market eligibility
64-14 characteristics, including income level, credit history or credit
64-15 score, and employment characteristics, that are similar to Standard
64-16 and Poor's credit underwriting criteria.
64-17 (32) "Geographic submarket" means a geographic region
64-18 in the state, including a county, census tract, or municipality,
64-19 that shares similar levels of access to home mortgage credit from
64-20 the private home mortgage lending industry, as determined by the
64-21 department based on home mortgage lending data published by federal
64-22 and state banking regulatory agencies.
64-23 (33) "Rural county" means a county that is outside the
64-24 boundaries of a primary metropolitan statistical area or a
64-25 metropolitan statistical area.
64-26 (34) "Subprime loan" means a loan that is originated
64-27 by a lender designated as a subprime lender on the subprime lender
65-1 list maintained by the United States Department of Housing and
65-2 Urban Development or identified as a lender primarily engaged in
65-3 subprime lending under Section 2306.143.
65-4 SECTION 2.02. Section 2306.142, Government Code, is amended
65-5 to read as follows:
65-6 Sec. 2306.142. AUTHORIZATION OF BONDS. (a) Subject to the
65-7 requirements of this section [In its discretion], the board shall
65-8 authorize all bonds issued by the department.
65-9 (b) If the issuance is authorized by the board, the
65-10 department shall issue single-family mortgage revenue bonds to make
65-11 home mortgage credit available for the purchase of newly
65-12 constructed or previously owned single-family homes to economic and
65-13 geographic submarkets of borrowers who are not served or who are
65-14 substantially underserved by the conventional, Fannie Mae, Freddie
65-15 Mac, or Federal Housing Administration home mortgage lending
65-16 industry or by housing finance corporations organized under Chapter
65-17 394, Local Government Code.
65-18 (c) The board by rule shall adopt a methodology for
65-19 determining through a market study the home mortgage credit needs
65-20 in underserved economic and geographic submarkets in the state. In
65-21 conducting the market study required by this subsection, the
65-22 department or its designee shall analyze for the underserved
65-23 economic and geographic submarkets, at a minimum, the following
65-24 factors:
65-25 (1) home ownership rates;
65-26 (2) loan volume;
65-27 (3) loan approval ratios;
66-1 (4) loan interest rates;
66-2 (5) loan terms;
66-3 (6) loan availability;
66-4 (7) type and number of dwelling units; and
66-5 (8) use of subprime mortgage loan products, comparing
66-6 the volume amount of subprime loans and interest rates to "A" paper
66-7 mortgage loans as defined by Standard and Poor's credit
66-8 underwriting criteria.
66-9 (d) The department or its designee shall analyze the
66-10 potential market demand, loan availability, and private sector home
66-11 mortgage lending rates available to extremely low, very low, low,
66-12 and moderate income borrowers in the rural counties of the state,
66-13 in census tracts in which the median family income is less than 80
66-14 percent of the median family income for the county in which the
66-15 census tract is located, and in the region of the state adjacent to
66-16 the international border of the state. The department or its
66-17 designee shall establish a process for serving those counties,
66-18 census tracts, and regions through the single-family mortgage
66-19 revenue bond program in a manner proportionate to the credit needs
66-20 of those areas as determined through the department's market study.
66-21 (e) Using the market study and the analysis required by this
66-22 section, the board shall evaluate the feasibility of a
66-23 single-family mortgage revenue bond program with loan marketing,
66-24 eligibility, underwriting, structuring, collection, and foreclosure
66-25 criteria and with loan services practices that are designed to meet
66-26 the credit needs of the underserved economic and geographic
66-27 submarkets of the state, including those submarkets served
67-1 disproportionately by subprime lenders.
67-2 (f) In evaluating a proposed bond program under this
67-3 section, the board shall consider, consistent with the reasonable
67-4 financial operation of the department, specific set-asides or
67-5 reservations of mortgage loans for underserved economic and
67-6 geographic submarkets in the state, including the reservation of
67-7 funds to serve borrowers who have "A-" to "B-" credit according to
67-8 Standard and Poor's credit underwriting criteria.
67-9 (g) The department may use any source of funds or subsidy
67-10 available to the department to provide credit enhancement, down
67-11 payment assistance, pre-homebuyer and post-homebuyer counseling,
67-12 interest rate reduction, and payment of incentive lender points to
67-13 accomplish the purposes of this section in a manner considered by
67-14 the board to be consistent with the reasonable financial operation
67-15 of the department.
67-16 (h) In allocating funds under Subsection (g), the
67-17 department's highest priority is to provide assistance to borrowers
67-18 in underserved economic and geographic submarkets in the state. If
67-19 the board determines that sufficient funds are available after
67-20 fully meeting the credit needs of borrowers in those submarkets,
67-21 the department may provide assistance to other borrowers.
67-22 (i) The board shall certify that each single-family mortgage
67-23 revenue bond issued by the department under this section is
67-24 structured in a manner that serves the credit needs of borrowers in
67-25 underserved economic and geographic submarkets in the state.
67-26 (j) After any board approval and certification of a
67-27 single-family mortgage revenue bond issuance, the department shall
68-1 submit the proposed bond issuance to the Bond Review Board for
68-2 review.
68-3 (k) In the state fiscal year beginning on September 1, 2001,
68-4 the department shall:
68-5 (1) adopt by rule a market study methodology as
68-6 required by Subsection (c);
68-7 (2) conduct the market study;
68-8 (3) propose for board review a single-family mortgage
68-9 revenue bond program, including loan feature details, a program for
68-10 borrower subsidies as provided by Subsections (g) and (h), and
68-11 origination and servicing infrastructure;
68-12 (4) identify reasonable capital markets financing;
68-13 (5) conduct a public hearing on the market study
68-14 results and the proposed bond program; and
68-15 (6) submit for review by the Bond Review Board the
68-16 market study results and, if approved and certified by the board,
68-17 the proposed bond program.
68-18 (l) In the state fiscal year beginning on September 1, 2002,
68-19 and in each subsequent state fiscal year, the department shall
68-20 allocate not less than 40 percent of the total single-family
68-21 mortgage revenue bond loan volume to meet the credit needs of
68-22 borrowers in underserved economic and geographic submarkets in the
68-23 state, subject to the identification of a satisfactory market
68-24 volume demand through the market study.
68-25 (m) On completion of the market study, if the board
68-26 determines in any year that bonds intended to be issued to achieve
68-27 the purposes of this section are unfeasible or would damage the
69-1 financial condition of the department, the board may formally
69-2 appeal to the Bond Review Board the requirements of Subsection (k)
69-3 or (l), as applicable. The Bond Review Board has sole authority to
69-4 modify or waive the required allocation levels.
69-5 (n) In addition to any other loan originators selected by
69-6 the department, the department shall authorize colonia self-help
69-7 centers and any other community-based, nonprofit institutions
69-8 considered appropriate by the board to originate loans on behalf of
69-9 the department. All non-financial institutions acting as loan
69-10 originators under this subsection must undergo adequate training,
69-11 as prescribed by the department, to participate in the bond
69-12 program. The department may require lenders to participate in
69-13 ongoing training and underwriting compliance audits to maintain
69-14 good standing to participate in the bond program. The department
69-15 may require that lenders meet appropriate eligibility standards as
69-16 prescribed by the department.
69-17 (o) The department shall structure all single-family
69-18 mortgage revenue bond issuances in a manner designed to recover the
69-19 full costs associated with conducting the activities required by
69-20 this section.
69-21 SECTION 2.03. Subchapter G, Chapter 2306, Government Code, is
69-22 amended by adding Section 2306.143 to read as follows:
69-23 Sec. 2306.143. ALTERNATIVE TO SUBPRIME LENDER LIST. (a) If
69-24 the United States Department of Housing and Urban Development
69-25 ceases to prepare or make public a subprime lender list, the market
69-26 study required by Section 2306.142 must annually survey the 100
69-27 largest refinancing lenders and the 100 largest home purchase loan
70-1 lenders in the state to identify lenders primarily engaged in
70-2 subprime lending.
70-3 (b) The lenders included in the survey must be identified on
70-4 the basis of home mortgage loan data reported by lenders under the
70-5 Home Mortgage Disclosure Act of 1975 (12 U.S.C. Section 2801 et
70-6 seq.) and the Community Reinvestment Act of 1977 (12 U.S.C. Section
70-7 2901 et seq.).
70-8 SECTION 2.04. Section 2306.583, Government Code, is amended
70-9 to read as follows:
70-10 Sec. 2306.583. SELF-HELP CENTERS: DESIGNATION. (a) The
70-11 department shall designate[:]
70-12 [(1)] a geographic area for the services provided by
70-13 each self-help center.
70-14 (b) In consultation with the colonia resident advisory
70-15 committee and the appropriate self-help center, the department
70-16 shall designate[; and]
70-17 [(2)] five colonias in each service area to receive
70-18 concentrated attention from that center.
70-19 (c) In consultation with the colonia resident advisory
70-20 committee and the appropriate self-help center, the [(b) The]
70-21 department may change the designation of colonias made under
70-22 Subsection (b) [(a)(2)].
70-23 SECTION 2.05. Section 2306.586, Government Code, is amended
70-24 by adding Subsection (e) to read as follows:
70-25 (e) Through a self-help center, a colonia resident may apply
70-26 for any direct loan or grant program operated by the department.
70-27 SECTION 2.06. Section 2306.587, Government Code, is amended
71-1 to read as follows:
71-2 Sec. 2306.587. OPERATION OF SELF-HELP CENTER; MONITORING.
71-3 (a) To operate a self-help center, the [The] department shall,
71-4 subject to the availability of revenue for that purpose, enter into
71-5 a four-year contract directly [for the operation of a self-help
71-6 center] with a local nonprofit organization, including a local
71-7 community action agency that qualifies as an eligible entity under
71-8 42 U.S.C. Section 9902, or a local housing authority that has
71-9 demonstrated the ability to carry out the functions of a self-help
71-10 center under this subchapter.
71-11 (b) The department is solely responsible for contract
71-12 oversight and for the monitoring of self-help centers under this
71-13 subchapter.
71-14 (c) The department and the self-help centers may apply for
71-15 and receive public or private gifts or grants to enable the centers
71-16 to achieve their purpose.
71-17 SECTION 2.07. Section 2306.589(a), Government Code, is
71-18 amended to read as follows:
71-19 (a) The department shall establish a fund in the department
71-20 designated as the colonia set-aside fund. The department may
71-21 contribute money to the fund from any available source of revenue
71-22 that the department considers appropriate to implement the purposes
71-23 of this subchapter, except that the department may not use federal
71-24 community development block grant money authorized by Title I of
71-25 the Housing and Community Development Act of 1974 (42 U.S.C.
71-26 Section 5301 et seq.) unless the money is specifically appropriated
71-27 by the legislature for that purpose.
72-1 SECTION 2.08. Sections 2306.753(a) and (b), Government Code,
72-2 are amended to read as follows:
72-3 (a) Subject to this section, the department shall establish
72-4 eligibility requirements for an owner-builder to receive a loan
72-5 under this subchapter. The eligibility requirements must establish
72-6 a priority for loans made under this subchapter to owner-builders
72-7 with an annual income, as determined under Subsection (b)(1)
72-8 [(b)(2)], of less than $17,500.
72-9 (b) To be eligible for a loan under this subchapter, an
72-10 owner-builder:
72-11 (1) [must reside with at least two other persons
72-12 related to the owner-builder in the first degree by consanguinity
72-13 or affinity, as determined under Subchapter B, Chapter 573;]
72-14 [(2)] may not have an annual income that exceeds 60
72-15 percent, as determined by the department, of the greater of the
72-16 state or local median family income, when combined with the income
72-17 of any person who resides with the owner-builder;
72-18 (2) [(3)] must have resided in this state for the
72-19 preceding six months;
72-20 (3) [(4)] must have successfully completed an
72-21 owner-builder education class under Section 2306.756; and
72-22 (4) [(5)] must agree to:
72-23 (A) provide at least 60 percent of the labor
72-24 necessary to build the proposed housing by working through a
72-25 state-certified owner-builder housing program; or
72-26 (B) provide an amount of labor equivalent to the
72-27 amount required under Paragraph (A) in connection with building
73-1 housing for others through a state-certified nonprofit
73-2 owner-builder housing program.
73-3 SECTION 2.09. Sections 2306.754(a) and (b), Government Code,
73-4 are amended to read as follows:
73-5 (a) The department may establish the minimum amount of a
73-6 loan under this subchapter, but a loan may not exceed $30,000
73-7 [$25,000].
73-8 (b) If it is not possible for an owner-builder to purchase
73-9 necessary real property and build adequate housing for $30,000
73-10 [$25,000], the owner-builder must obtain the amount necessary that
73-11 exceeds $30,000 [$25,000] from one or more local governmental
73-12 entities, nonprofit organizations, or private lenders. The total
73-13 amount of loans made by the department and other entities to an
73-14 owner-builder under this subchapter may not exceed $60,000.
73-15 SECTION 2.10. Section 2306.755, Government Code, is amended
73-16 to read as follows:
73-17 Sec. 2306.755. NONPROFIT OWNER-BUILDER HOUSING PROGRAMS. (a)
73-18 The department may certify nonprofit owner-builder housing programs
73-19 operated by a tax-exempt organization listed under Section
73-20 501(c)(3), Internal Revenue Code of 1986, to:
73-21 (1) qualify potential owner-builders for loans under
73-22 this subchapter;
73-23 (2) provide owner-builder education classes under
73-24 Section 2306.756;
73-25 (3) assist owner-builders in building housing; and
73-26 (4) originate or service [administer] loans made [by
73-27 the department] under this subchapter.
74-1 (b) The department by rule shall adopt procedures for the
74-2 certification of nonprofit owner-builder housing programs under
74-3 this section.
74-4 SECTION 2.11. Section 2306.758, Government Code, is amended
74-5 by amending Subsection (b) and adding Subsection (c) to read as
74-6 follows:
74-7 (b) The department may also make loans under this subchapter
74-8 from:
74-9 (1) available funds in the housing trust fund
74-10 established under Section 2306.201;
74-11 (2) federal block grants that may be used for the
74-12 purposes of this subchapter; and
74-13 (3) the owner-builder revolving loan fund established
74-14 under Section 2306.7581 [amounts received by the department in
74-15 repayment of loans made under this subchapter].
74-16 (c) In a state fiscal year, the department may use not more
74-17 than 10 percent of the revenue available for purposes of this
74-18 subchapter to enhance the ability of tax-exempt organizations
74-19 described by Section 2306.755(a) to implement the purposes of this
74-20 chapter.
74-21 SECTION 2.12. Subchapter FF, Chapter 2306, Government Code,
74-22 is amended by adding Section 2306.7581 to read as follows:
74-23 Sec. 2306.7581. OWNER-BUILDER REVOLVING LOAN FUND. (a) The
74-24 department shall establish an owner-builder revolving loan fund in
74-25 the department for the sole purpose of funding loans under this
74-26 subchapter.
74-27 (a-1) Each state fiscal year the department shall transfer
75-1 at least $3 million to the fund from money received under the
75-2 federal HOME Investment Partnerships program established under
75-3 Title II of the Cranston-Gonzalez National Affordable Housing Act
75-4 (42 U.S.C. Section 12701 et seq.), from money in the housing trust
75-5 fund, or from money appropriated by the legislature to the
75-6 department. This subsection expires August 31, 2010.
75-7 (b) The department shall deposit money received in repayment
75-8 of a loan under this subchapter to the owner-builder revolving loan
75-9 fund.
75-10 SECTION 2.13. Chapter 2306, Government Code, is amended by
75-11 adding Subchapter GG to read as follows:
75-12 SUBCHAPTER GG. COLONIA MODEL SUBDIVISION PROGRAM
75-13 Sec. 2306.781. DEFINITION. In this subchapter, "program"
75-14 means the colonia model subdivision program established under this
75-15 subchapter.
75-16 Sec. 2306.782. ESTABLISHMENT OF PROGRAM. The department
75-17 shall establish the colonia model subdivision program to promote
75-18 the development of new, high-quality, residential subdivisions that
75-19 provide:
75-20 (1) alternatives to substandard colonias; and
75-21 (2) housing options affordable to individuals and
75-22 families of extremely low and very low income who would otherwise
75-23 move into substandard colonias.
75-24 Sec. 2306.783. COLONIA MODEL SUBDIVISION REVOLVING LOAN
75-25 FUND. (a) The department shall establish a colonia model
75-26 subdivision revolving loan fund in the department. Money in the
75-27 fund may be used only for purposes of the program.
76-1 (a-1) The department may transfer money into the fund using
76-2 any available source of revenue.
76-3 (a-2) On application, the department may provide a loan
76-4 under this subchapter through an eligible political subdivision
76-5 using money from the portion of community development block grant
76-6 that is set aside under federal law to provide financial assistance
76-7 to colonias. In a state fiscal year, the department may not
76-8 provide loans under this subchapter using more than $2 million from
76-9 the set-aside for colonias.
76-10 (a-3) Subsections (a-1) and (a-2) and this subsection expire
76-11 August 31, 2010.
76-12 (b) The department shall deposit money received in repayment
76-13 of loans under this subchapter to the colonia model subdivision
76-14 revolving loan fund.
76-15 Sec. 2306.784. SUBDIVISION COMPLIANCE. Any subdivision
76-16 created with assistance from the fund must fully comply with all
76-17 state and local laws, including any process established under state
76-18 or local law for subdividing real property.
76-19 Sec. 2306.785. PROGRAM LOANS. (a) The department may make
76-20 loans under the program only to:
76-21 (1) colonia self-help centers established under
76-22 Subchapter Z; and
76-23 (2) community housing development organizations
76-24 certified by the department.
76-25 (b) A loan made under the program may be used only for the
76-26 payment of:
76-27 (1) costs associated with the purchase of real
77-1 property;
77-2 (2) costs of surveying, platting, and subdividing or
77-3 resubdividing real property;
77-4 (3) fees, insurance costs, or recording costs
77-5 associated with the development of the subdivision;
77-6 (4) costs of providing proper infrastructure necessary
77-7 to support residential uses;
77-8 (5) real estate commissions and marketing fees; and
77-9 (6) any other costs as the department by rule
77-10 determines to be reasonable and prudent to advance the purposes of
77-11 this subchapter.
77-12 (c) A loan made by the department under the program may not
77-13 bear interest and may not exceed a term of 36 months.
77-14 (d) The department may offer a borrower under the program
77-15 one loan renewal for each subdivision.
77-16 Sec. 2306.786. ADMINISTRATION OF PROGRAM; RULES. (a) In
77-17 administering the program, the department by rule shall adopt:
77-18 (1) any subdivision standards in excess of local
77-19 standards the department considers necessary;
77-20 (2) loan application procedures;
77-21 (3) program guidelines; and
77-22 (4) contract award procedures.
77-23 (b) The department shall adopt rules to:
77-24 (1) ensure that a borrower under the program sells
77-25 real property under the program only to an individual borrower,
77-26 nonprofit housing developer, or for-profit housing developer for
77-27 the purposes of constructing residential dwelling units; and
78-1 (2) require a borrower under the program to convey
78-2 real property under the program at a cost that is affordable to:
78-3 (A) individuals and families of extremely low
78-4 income; or
78-5 (B) individuals and families of very low income.
78-6 SECTION 2.14. Subchapter B, Chapter 11, Tax Code, is amended
78-7 by adding Section 11.184 to read as follows:
78-8 Sec. 11.184. COLONIA MODEL SUBDIVISION PROGRAM. (a) An
78-9 organization is entitled to an exemption from taxation of
78-10 unimproved real property it owns if the organization:
78-11 (1) meets the requirements of a charitable
78-12 organization provided by Sections 11.18(e) and (f);
78-13 (2) purchased the property or is developing the
78-14 property with proceeds of a loan made by the Texas Department of
78-15 Housing and Community Affairs under the colonia model subdivision
78-16 program under Subchapter GG, Chapter 2306, Government Code; and
78-17 (3) owns the property for the purpose of developing a
78-18 model colonia subdivision.
78-19 (b) Property may not be exempted under Subsection (a) after
78-20 the fifth anniversary of the date the organization acquires the
78-21 property.
78-22 (c) An organization entitled to an exemption under
78-23 Subsection (a) is also entitled to an exemption from taxation of
78-24 any building or tangible personal property the organization owns
78-25 and uses in the administration of its acquisition, building,
78-26 repair, or sale of property. To qualify for an exemption under
78-27 this subsection, property must be used exclusively by the
79-1 charitable organization, except that another individual or
79-2 organization may use the property for activities incidental to the
79-3 charitable organization's use that benefit the beneficiaries of the
79-4 charitable organization.
79-5 (d) For the purposes of Subsection (e), the chief appraiser
79-6 shall determine the market value of property exempted under
79-7 Subsection (a) and shall record the market value in the appraisal
79-8 records.
79-9 (e) If the organization that owns improved or unimproved
79-10 real property that has been exempted under Subsection (a) sells
79-11 the property to a person other than a person described by Section
79-12 2306.786(b)(1), Government Code, a penalty is imposed on the
79-13 property equal to the amount of the taxes that would have been
79-14 imposed on the property in each tax year that the property was
79-15 exempted from taxation under Subsection (a), plus interest at an
79-16 annual rate of 12 percent computed from the dates on which the
79-17 taxes would have become due.
79-18 SECTION 2.15. If the administration of the federal community
79-19 development block grant program is transferred to an agency other
79-20 than the Texas Department of Housing and Community Affairs, the new
79-21 administering agency shall enter into a memorandum of understanding
79-22 with the Texas Department of Housing and Community Affairs to
79-23 permit the housing department to receive and administer the portion
79-24 of community development block grant money specifically allocated
79-25 under the General Appropriations Act to fund the operation of
79-26 colonia self-help centers. The memorandum must require the new
79-27 administering agency to transfer to the housing department a
80-1 portion of the agency's total administrative funds in the same
80-2 ratio that the portion of community development block grant money
80-3 allocated for the self-help centers bears to the total yearly
80-4 allocation of community development block grant money. The
80-5 memorandum must require the new administering agency to continue to
80-6 fund the housing department's border field offices through the
80-7 community development block grant program and must require the
80-8 housing department to exercise oversight and supervision over those
80-9 field offices and staff.
80-10 SECTION 2.16. Section 2306.760, Government Code, is repealed.
80-11 ARTICLE 3
80-12 SECTION 3.01. Subchapter A, Chapter 2306, Government Code, is
80-13 amended by adding Section 2306.008 to read as follows:
80-14 Sec. 2306.008. PRESERVATION OF AFFORDABLE HOUSING. (a) The
80-15 department shall support in the manner described by Subsection (b)
80-16 the preservation of affordable housing for individuals with special
80-17 needs, as defined by Section 2306.511, and individuals and families
80-18 of low income at any location considered necessary by the
80-19 department.
80-20 (b) The department shall support the preservation of
80-21 affordable housing under this section by:
80-22 (1) making low interest financing and grants available
80-23 to private for-profit and nonprofit buyers who seek to acquire,
80-24 preserve, and rehabilitate affordable housing; and
80-25 (2) prioritizing available funding and financing
80-26 resources for affordable housing preservation activities.
80-27 SECTION 3.02. Subchapter H, Chapter 2306, Government Code, is
81-1 amended by adding Section 2306.185 to read as follows:
81-2 Sec. 2306.185. LONG-TERM AFFORDABILITY AND SAFETY OF
81-3 MULTIFAMILY RENTAL HOUSING DEVELOPMENTS. (a) The department shall
81-4 adopt policies and procedures to ensure that, for a multifamily
81-5 rental housing development funded through loans, grants, or tax
81-6 credits under this chapter, the owner of the development:
81-7 (1) keeps the rents affordable for low income tenants
81-8 for the longest period that is economically feasible; and
81-9 (2) provides regular maintenance to keep the
81-10 development sanitary, decent, and safe.
81-11 (b) In implementing Subsection (a)(1) and in developing
81-12 underwriting standards and application scoring criteria for the
81-13 award of loans, grants, or tax credits to multifamily developments,
81-14 the department shall ensure that the economic benefits of longer
81-15 affordability terms and below market rate rents are accurately
81-16 assessed and considered.
81-17 (c) The department shall require that a recipient of funding
81-18 maintains the affordability of the multifamily housing development
81-19 for households of extremely low, very low, low, and moderate
81-20 incomes for the greater of a 30-year period from the date the
81-21 recipient takes legal possession of the housing or the remaining
81-22 term of the existing federal government assistance. In addition,
81-23 the agreement between the department and the recipient shall
81-24 require the renewal of rental subsidies if available and if the
81-25 subsidies are sufficient to maintain the economic viability of the
81-26 multifamily development.
81-27 (d) The development restrictions provided by Subsection (a)
82-1 and Section 2306.269 are enforceable by the department, by tenants
82-2 of the development, or by private parties against the initial owner
82-3 or any subsequent owner. The department shall require a land use
82-4 restriction agreement providing for enforcement of the restrictions
82-5 by the department, a tenant, or a private party that includes the
82-6 right to recover reasonable attorney's fees if the party seeking
82-7 enforcement of the restriction is successful.
82-8 (e) Subsections (c) and (d) and Section 2306.269 apply only
82-9 to multifamily rental housing developments to which the department
82-10 is providing one or more of the following forms of assistance:
82-11 (1) a loan or grant in an amount greater than 33
82-12 percent of the market value of the development on the date the
82-13 recipient took legal possession of the development;
82-14 (2) a loan guarantee for a loan in an amount greater
82-15 than 33 percent of the market value of the development on the date
82-16 the recipient took legal title to the development; or
82-17 (3) a low income housing tax credit.
82-18 (f) An owner of the housing development who intends to sell,
82-19 lease, prepay the loan insured by the United States Department of
82-20 Housing and Urban Development, opt out of a housing assistance
82-21 payments contract under Section 8, United States Housing Act of
82-22 1937 (42 U.S.C. Section 1437f), or otherwise dispose of the
82-23 development shall agree to provide notice to the department at
82-24 least 12 months before the date of any attempt to dispose of the
82-25 development, prepay the loan, or opt out of the Section 8 contract
82-26 to enable the department to attempt to locate a buyer who will
82-27 conform to the development restrictions provided by this section.
83-1 (g) This section does not apply to a multifamily rental
83-2 housing development supported by qualified 501(c)(3) bonds.
83-3 SECTION 3.03. Subchapter K, Chapter 2306, Government Code, is
83-4 amended by adding Section 2306.2561 to read as follows:
83-5 Sec. 2306.2561. AFFORDABLE HOUSING PRESERVATION PROGRAM:
83-6 LOANS AND GRANTS. (a) The department, through the housing finance
83-7 division, shall provide loans and grants to political subdivisions,
83-8 housing finance corporations, public housing authorities,
83-9 for-profit organizations, nonprofit organizations, and
83-10 income-eligible individuals, families, and households for purposes
83-11 of rehabilitating housing to preserve affordability of the housing.
83-12 (b) The department may use any available revenue, including
83-13 legislative appropriations, to provide loans and grants under this
83-14 section.
83-15 SECTION 3.04. Section 2306.269, Government Code, is amended
83-16 to read as follows:
83-17 Sec. 2306.269. TENANT AND MANAGER SELECTION. (a) The
83-18 department shall set standards for tenant and management selection
83-19 by a housing sponsor.
83-20 (b) The department shall prohibit a multifamily rental
83-21 housing development funded or administered by the department,
83-22 including a development supported with a housing tax credit
83-23 allocation under Subchapter DD, from:
83-24 (1) excluding an individual or family from admission
83-25 to the development because the individual or family participates in
83-26 the housing choice voucher program under Section 8, United States
83-27 Housing Act of 1937 (42 U.S.C. Section 1437f); and
84-1 (2) using a financial or minimum income standard for
84-2 an individual or family participating in the voucher program
84-3 described by Subdivision (1) that requires the individual or family
84-4 to have a monthly income of more than 2-1/2 times the individual's
84-5 or family's share of the total monthly rent payable to the owner of
84-6 the development.
84-7 SECTION 3.05. Chapter 2306, Government Code, is amended by
84-8 adding Subchapter HH to read as follows:
84-9 SUBCHAPTER HH. AFFORDABLE HOUSING PRESERVATION
84-10 Sec. 2306.801. DEFINITION. In this subchapter, "federally
84-11 subsidized" means receiving financial assistance through a federal
84-12 program administered by the Secretary of Housing and Urban
84-13 Development or the Secretary of Agriculture under which housing
84-14 assistance is provided on the basis of income, including a program
84-15 under:
84-16 (1) Section 221(d), National Housing Act (12 U.S.C.
84-17 Section 1715l(d));
84-18 (2) Section 236, National Housing Act (12 U.S.C.
84-19 Section 1715z-1);
84-20 (3) Section 202, Housing Act of 1959 (12 U.S.C.
84-21 Section 1701q);
84-22 (4) Section 101, Housing and Urban Development Act of
84-23 1965 (12 U.S.C. Section 1701s);
84-24 (5) Section 514, 515, or 516, Housing Act of 1949 (42
84-25 U.S.C. Section 1484, 1485, or 1486); or
84-26 (6) Section 8, United States Housing Act of 1937 (42
84-27 U.S.C. Section 1437f).
85-1 Sec. 2306.802. MULTIFAMILY HOUSING PRESERVATION CLASSES. The
85-2 department shall establish two classes of priorities of
85-3 developments to preserve multifamily housing. The classes, in
85-4 order of descending priority, are:
85-5 (1) Class A, which includes any federally subsidized
85-6 multifamily housing development at risk because the contract
85-7 granting a federal subsidy with a stipulation to maintain
85-8 affordability is nearing expiration or because the
85-9 government-insured mortgage on the property is eligible for
85-10 prepayment or near the end of its mortgage term; and
85-11 (2) Class B, which includes any other multifamily
85-12 housing development with low income use or rental affordability
85-13 restrictions.
85-14 Sec. 2306.803. AT-RISK MULTIFAMILY HOUSING: IDENTIFICATION,
85-15 PRIORITIZATION, AND PRESERVATION. (a) The department shall
85-16 determine the name and location of and the number of units in each
85-17 multifamily housing development that is at risk of losing its low
85-18 income use restrictions and subsidies and that meets the
85-19 requirements of a Class A priority described by Section 2306.802.
85-20 (b) The department shall maintain an accurate list of those
85-21 developments on the department's website.
85-22 (c) The department shall develop cost estimates for the
85-23 preservation and rehabilitation of the developments in priority
85-24 Class A.
85-25 (d) The department shall contact owners of developments
85-26 assigned a Class A priority under this section and shall attempt to
85-27 negotiate with those owners to ensure continued affordability for
86-1 individuals and families of low income under the federal housing
86-2 assistance program for those developments.
86-3 Sec. 2306.804. USE OF HOUSING PRESERVATION RESOURCES. (a)
86-4 To the extent possible, the department shall use available
86-5 resources for the preservation and rehabilitation of the
86-6 multifamily housing developments identified and listed under
86-7 Section 2306.803.
86-8 (b) To the extent possible, the department shall allocate
86-9 low income housing tax credits to applications involving the
86-10 preservation of developments assigned a Class A priority under
86-11 Section 2306.803 and in both urban and rural communities in
86-12 approximate proportion to the housing needs of each uniform state
86-13 service region.
86-14 (c) The department shall give priority to providing
86-15 financing or funding to a buyer who is supported or approved by an
86-16 association of residents of the multifamily housing development.
86-17 Sec. 2306.805. HOUSING PRESERVATION INCENTIVES PROGRAM. (a)
86-18 The department shall establish and administer a housing
86-19 preservation incentives program to provide incentives through loan
86-20 guarantees, loans, and grants to political subdivisions, housing
86-21 finance corporations, public housing authorities, for-profit
86-22 organizations, and nonprofit organizations for the acquisition and
86-23 rehabilitation of multifamily housing developments assigned a Class
86-24 A or Class B priority under Section 2306.803.
86-25 (b) A loan issued by a lender participating in the program
86-26 must be fully underwritten by the department.
86-27 (c) Consistent with the requirements of federal law, the
87-1 department may guarantee loans issued under the program by
87-2 obtaining a Section 108 loan guarantee from the United States
87-3 Department of Housing and Urban Development under the Housing and
87-4 Community Development Act of 1974 (42 U.S.C. Section 5308).
87-5 (d) Grants under this program may include direct subsidies
87-6 offered as an equity contribution to enable an owner to acquire and
87-7 rehabilitate a Class A or Class B priority property described by
87-8 Section 2306.802. Grants may also be offered to provide
87-9 consultation and technical assistance services to a nonprofit
87-10 organization seeking to acquire and rehabilitate a Class A or Class
87-11 B priority property.
87-12 (e) A housing development that benefits from the incentive
87-13 program under this section is subject to the requirements
87-14 concerning:
87-15 (1) long-term affordability and safety prescribed by
87-16 Section 2306.185; and
87-17 (2) tenant and manager selection prescribed by Section
87-18 2306.269.
87-19 SECTION 3.06. (a) Chapter 2306, Government Code, is amended
87-20 by adding Section 2306.806 to Subchapter HH, as added by this Act,
87-21 to read as follows:
87-22 Sec. 2306.806. APPROVAL OF OFFICE OF RURAL COMMUNITY
87-23 AFFAIRS. The department must obtain the approval of the executive
87-24 director of the Office of Rural Community Affairs to guarantee
87-25 loans as described by Section 2306.805(c).
87-26 (b) This section takes effect only if H.B. No. 7, Acts of
87-27 the 77th Legislature, Regular Session, 2001, becomes law. If that
88-1 bill does not become law, this section has no effect.
88-2 SECTION 3.07. Chapter 2306, Government Code, is amended by
88-3 adding Subchapter II to read as follows:
88-4 SUBCHAPTER II. MULTIFAMILY HOUSING DEVELOPMENTS:
88-5 PRESERVATION OF AFFORDABILITY
88-6 Sec. 2306.851. APPLICATION. (a) This subchapter applies
88-7 only to a property owner of a multifamily housing development that
88-8 is insured or assisted under a program under Section 8, United
88-9 States Housing Act of 1937 (42 U.S.C. Section 1437f), or that is:
88-10 (1) insured or assisted under a program under:
88-11 (A) Section 221(d)(3), National Housing Act (12
88-12 U.S.C. Section 1715l);
88-13 (B) Section 236, National Housing Act (12 U.S.C.
88-14 Section 1715z-1); or
88-15 (C) Section 514, 515, or 516, Housing Act of
88-16 1949 (42 U.S.C. Section 1484, 1485, or 1486); and
88-17 (2) financed by a mortgage that is eligible for
88-18 prepayment at the option of the property owner.
88-19 (b) This subchapter does not apply to the disposal of
88-20 property because of:
88-21 (1) a governmental taking by eminent domain or
88-22 negotiated purchase;
88-23 (2) a foreclosure action;
88-24 (3) a transfer by gift, devise, or operation of law;
88-25 or
88-26 (4) a sale to a person who would be entitled to an
88-27 interest in the property if the property owner died intestate.
89-1 (c) This subchapter does not apply to property included in a
89-2 restructuring program with a participating administrative entity
89-3 designated by the United States Department of Housing and Urban
89-4 Development.
89-5 Sec. 2306.852. PROPERTY OWNER RESTRICTION. Except as
89-6 provided by this subchapter, a property owner to whom this
89-7 subchapter applies may not sell, lease, or otherwise dispose of a
89-8 multifamily housing development described by Section 2306.851(a) or
89-9 take any other action if that action will cause the disruption or
89-10 discontinuance of:
89-11 (1) the development's federal insurance or assistance;
89-12 or
89-13 (2) the provision of low income housing assistance to
89-14 residents of the development.
89-15 Sec. 2306.853. NOTICE OF INTENT. (a) A property owner of a
89-16 multifamily housing development may take an action, sell, lease, or
89-17 otherwise dispose of the development subject to the restriction
89-18 under Section 2306.852 if the property owner provides notice by
89-19 mail of the owner's intent to the residents of the development and
89-20 to the department.
89-21 (b) The notice required by Subsection (a) must indicate, as
89-22 applicable, that the property owner intends to prepay a mortgage
89-23 under a program described by Section 2306.851(a)(1) or that a
89-24 contract formed under a program under Section 8, United States
89-25 Housing Act of 1937 (42 U.S.C. Section 1437f), will expire.
89-26 (c) The property owner shall provide the notice required by
89-27 Subsection (a) before the 90th day preceding the date of mortgage
90-1 prepayment or contract expiration, as applicable, and as otherwise
90-2 required by federal law.
90-3 (d) The notice required by this section is sufficient if the
90-4 notice meets the requirements of Section 8(c)(8), United States
90-5 Housing Act of 1937 (42 U.S.C. Section 1437f(c)(8)).
90-6 SECTION 3.08. (a) The Texas Department of Housing and
90-7 Community Affairs shall adopt the policies and procedures on the
90-8 long-term affordability and safety of multifamily rental housing
90-9 developments under Section 2306.185, Government Code, as added by
90-10 this Act, not later than November 1, 2001.
90-11 (b) The enforcement of the restrictions concerning
90-12 multifamily rental housing developments under Section 2306.185,
90-13 Government Code, as added by this Act, applies only to developments
90-14 that receive assistance from the Texas Department of Housing and
90-15 Community Affairs on or after January 1, 2002.
90-16 (c) The enforcement of restrictions concerning tenant and
90-17 manager selection under Section 2306.269, Government Code, as
90-18 amended by this Act, applies only to housing developments that
90-19 receive assistance from the Texas Department of Housing and
90-20 Community Affairs on or after January 1, 2002.
90-21 (d) The Texas Department of Housing and Community Affairs
90-22 shall create an initial list of multifamily housing developments
90-23 that are ranked by priority as required by Section 2306.803,
90-24 Government Code, as added by this Act, not later than January 1,
90-25 2002.
90-26 (e) If community development block grant funds are
90-27 transferred to another state agency, the Texas Department of
91-1 Housing and Community Affairs shall negotiate a memorandum of
91-2 understanding to permit the implementation of Section 2306.805(c),
91-3 Government Code, as added by this Act.
91-4 (f) The changes in law made by this article apply to a
91-5 multifamily housing development described by Section 2306.851,
91-6 Government Code, as added by this Act, that a property owner
91-7 intends to sell, lease, or otherwise dispose of on or after January
91-8 1, 2002.
91-9 (g) The outstanding balance of Section 108 loan guarantees
91-10 issued as described by Section 2306.805(c), Government Code, as
91-11 added by this Act, may not exceed $10 million. This subsection
91-12 expires December 31, 2004.
91-13 SECTION 3.09. (a) Except as provided by Subsection (b) of
91-14 this section, the change in law made by this Act in adding Section
91-15 2306.269(b), Government Code, applies only to a multifamily rental
91-16 housing development for which the funding or administration by the
91-17 Texas Department of Housing and Community Affairs begins on or
91-18 after the effective date of this Act.
91-19 (b) If the multifamily rental housing development funded or
91-20 administered by the Texas Department of Housing and Community
91-21 Affairs is a low income housing tax credit property, the change in
91-22 law made by this Act in adding Section 2306.269(b), Government
91-23 Code, applies only if an application for an allocation of low
91-24 income housing tax credits for that development is received by the
91-25 department on or after August 10, 1993.
91-26 ARTICLE 4
91-27 SECTION 4.01. Section 2306.072(c), Government Code, is
92-1 amended to read as follows:
92-2 (c) The report must include:
92-3 (1) a complete operating and financial statement of
92-4 the department;
92-5 (2) a comprehensive statement of the activities of the
92-6 department during the preceding year to address the needs
92-7 identified in the state low income housing plan prepared as
92-8 required by Section 2306.0721, including:
92-9 (A) a statistical and narrative analysis of the
92-10 department's performance in addressing the housing needs of
92-11 individuals and families of low and very low income;
92-12 (B) the ethnic and racial composition of
92-13 individuals and families applying for and receiving assistance from
92-14 each housing-related program operated by the department; and
92-15 (C) the department's progress in meeting the
92-16 goals established in the previous housing plan;
92-17 (3) an explanation of the efforts made by the
92-18 department to ensure the participation of individuals of low income
92-19 and their community-based institutions in department programs that
92-20 affect them;
92-21 (4) a statement of the evidence that the department
92-22 has made an affirmative effort to ensure the involvement of
92-23 individuals of low income and their community-based institutions in
92-24 the allocation of funds and the planning process;
92-25 (5) a statistical analysis, delineated according to
92-26 each ethnic and racial group served by the department, that
92-27 indicates the progress made by the department in implementing the
93-1 state low income housing plan in each of the uniform state service
93-2 regions;
93-3 (6) an analysis, based on information provided by the
93-4 fair housing sponsor reports required under Section 2306.0724 and
93-5 other available data, of fair housing opportunities in each housing
93-6 development that receives financial assistance from the department
93-7 that includes the following information for each housing
93-8 development that contains 20 or more living units:
93-9 (A) the street address and municipality or
93-10 county in which the property is located;
93-11 (B) the telephone number of the property
93-12 management or leasing agent;
93-13 (C) the total number of units, reported by
93-14 bedroom size;
93-15 (D) [(C)] the total number of units, reported by
93-16 bedroom size, designed for individuals who are physically
93-17 challenged or who have special needs and the number of these
93-18 individuals served annually [as reported by each housing sponsor];
93-19 (E) the rent for each type of rental unit,
93-20 reported by bedroom size [(D) a statistical analysis of average
93-21 rents reported by county];
93-22 (F) [(E)] the race or ethnic makeup of each
93-23 project [as reported annually by each housing sponsor];
93-24 (G) [(F)] the number of units occupied by
93-25 individuals receiving government-supported housing assistance and
93-26 the type of assistance received [as reported by each housing
93-27 sponsor];
94-1 (H) the number of units occupied by individuals
94-2 and families of extremely low income, very low income, low income,
94-3 moderate income, and other levels of income;
94-4 (I) [(G)] a statement as to whether the
94-5 department has been notified of a violation of the fair housing law
94-6 that has been filed with the United States Department of Housing
94-7 and Urban Development, the Commission on Human Rights, or the
94-8 United States Department of Justice; and
94-9 (J) [(H)] a statement as to whether the
94-10 development has any instances of material noncompliance with bond
94-11 indentures or deed restrictions discovered through the normal
94-12 monitoring activities and procedures that include meeting occupancy
94-13 requirements or rent restrictions imposed by deed restriction or
94-14 financing agreements; [and]
94-15 (7) a report on the geographic distribution of low
94-16 income housing tax credits, the amount of unused low income housing
94-17 tax credits, and the amount of low income housing tax credits
94-18 received from the federal pool of unused funds from other states;
94-19 and
94-20 (8) a statistical analysis, based on information
94-21 provided by the fair housing sponsor reports required by Section
94-22 2306.0724 and other available data, of average rents reported by
94-23 county.
94-24 SECTION 4.02. Subchapter D, Chapter 2306, Government Code, is
94-25 amended by adding Section 2306.0724 to read as follows:
94-26 Sec. 2306.0724. FAIR HOUSING SPONSOR REPORT. (a) The
94-27 department shall require the owner of each housing development that
95-1 receives financial assistance from the department and that contains
95-2 20 or more living units to submit an annual fair housing sponsor
95-3 report. The report must include the relevant information necessary
95-4 for the analysis required by Section 2306.072(c)(6). In compiling
95-5 the information for the report, the owner of each housing
95-6 development shall use data current as of January 1 of the reporting
95-7 year.
95-8 (b) The department shall adopt rules regarding the procedure
95-9 for filing the report.
95-10 (c) The department shall maintain the reports in electronic
95-11 and hard-copy formats readily available to the public at no cost.
95-12 (d) A housing sponsor who fails to file a report in a timely
95-13 manner is subject to the following sanctions, as determined by the
95-14 department:
95-15 (1) denial of a request for additional funding; or
95-16 (2) an administrative penalty in an amount not to
95-17 exceed $1,000, assessed in the manner provided for an
95-18 administrative penalty under Section 2306.6023.
95-19 SECTION 4.03. Section 2306.077, Government Code, is amended
95-20 by adding Subsections (d) and (e) to read as follows:
95-21 (d) The department shall provide for annual housing sponsor
95-22 reports required by Section 2306.0724 to be filed through the
95-23 Internet.
95-24 (e) The department shall provide for reports regarding
95-25 housing units designed for persons with disabilities made under
95-26 Section 2306.078 to be filed through the Internet.
95-27 SECTION 4.04. Subchapter D, Chapter 2306, Government Code, is
96-1 amended by adding Section 2306.078 to read as follows:
96-2 Sec. 2306.078. INFORMATION REGARDING HOUSING FOR PERSONS
96-3 WITH DISABILITIES. (a) The department shall establish a system
96-4 that requires owners of state or federally assisted housing
96-5 developments with 20 or more housing units to report information
96-6 regarding housing units designed for persons with disabilities.
96-7 (b) The system must provide for each owner of a development
96-8 described by Subsection (a) with at least one housing unit designed
96-9 for a person with a disability to enter the following information
96-10 on the department's Internet site:
96-11 (1) the name, if any, of the development;
96-12 (2) the street address of the development;
96-13 (3) the number of housing units in the development
96-14 that are designed for persons with disabilities and that are
96-15 available for lease;
96-16 (4) the number of bedrooms in each housing unit
96-17 designed for a person with a disability;
96-18 (5) the special features that characterize each
96-19 housing unit's suitability for a person with a disability;
96-20 (6) the rent for each housing unit designed for a
96-21 person with a disability; and
96-22 (7) the telephone number and name of the development
96-23 manager or agent to whom inquiries by prospective tenants may be
96-24 made.
96-25 (c) The department shall require each owner to maintain
96-26 updated contact information under Subsection (b)(7) and shall
96-27 solicit the owner's voluntary provision of updated information
97-1 under Subsections (b)(3) and (6).
97-2 (d) The department shall make information provided under
97-3 this section available to the public in electronic and hard-copy
97-4 formats at no cost.
97-5 ARTICLE 5
97-6 SECTION 5.01. Subchapter D, Chapter 2306, Government Code, is
97-7 amended by adding Sections 2306.079 and 2306.080 to read as
97-8 follows:
97-9 Sec. 2306.079. REGIONAL DEVELOPMENT COORDINATOR. (a) In
97-10 this section:
97-11 (1) "Regional development coordinator" means a person
97-12 employed by or under contract with the department to perform the
97-13 duties described by this section.
97-14 (2) "Regional partner" means an entity such as a
97-15 regional planning commission, political subdivision, local
97-16 nonprofit organization, institution of higher education, community
97-17 housing development organization, housing finance corporation,
97-18 public housing authority, agricultural extension agent, local bank,
97-19 or field office or service center of the United States Department
97-20 of Agriculture Rural Development Texas that is engaged in
97-21 data-gathering projects related to the goals of the department.
97-22 (b) The department shall employ or contract with a regional
97-23 development coordinator for each uniform state service region of
97-24 this state. The primary responsibilities of a regional development
97-25 coordinator are:
97-26 (1) assisting local communities in determining how to
97-27 address affordable housing and community development needs;
98-1 (2) establishing regional planning and
98-2 resource-sharing partnerships; and
98-3 (3) facilitating the leveraging of available local,
98-4 state, and federal funds.
98-5 (c) A regional development coordinator shall:
98-6 (1) gather and manage data about affordable housing
98-7 and community development needs in the uniform state service region
98-8 the coordinator represents by:
98-9 (A) identifying and working with regional
98-10 partners;
98-11 (B) using a variety of data resources,
98-12 including:
98-13 (i) the United States Census Bureau;
98-14 (ii) the United States Department of
98-15 Housing and Urban Development;
98-16 (iii) the Texas State Data Center;
98-17 (iv) the Texas Real Estate Research
98-18 Center; and
98-19 (v) the office of the comptroller, the
98-20 Texas Department of Economic Development, and other state agencies;
98-21 (C) developing an analysis of the region's
98-22 affordable housing and community development needs based on the
98-23 data gathered and local and regional input; and
98-24 (D) establishing a framework for sharing the
98-25 data with the regional partners;
98-26 (2) use the data described by Subdivision (1) to
98-27 facilitate the development of a regional plan and shall encourage
99-1 the consensus of the regional partners concerning the plan;
99-2 (3) identify statewide and national partners for
99-3 meeting the region's affordable housing and community development
99-4 needs, including the United States Department of Housing and Urban
99-5 Development, the United States Department of Agriculture Rural
99-6 Development Texas, the Texas State Affordable Housing Corporation,
99-7 statewide nonprofit entities, banking associations, developer
99-8 associations, and foundations; and
99-9 (4) provide an information clearinghouse for the
99-10 region that facilitates planning and resource sharing by
99-11 identifying programs that leverage local, state, and federal
99-12 financial aid.
99-13 (d) In each uniform state service region, the regional
99-14 planning commission and other regional partners shall establish an
99-15 advisory committee consisting of representatives of two or more
99-16 regional partners that shall:
99-17 (1) advise the department regarding the affordable
99-18 housing and community development needs of that region;
99-19 (2) assist the department in:
99-20 (A) assigning priorities to the affordable
99-21 housing and community development needs of that region;
99-22 (B) identifying resources to address those
99-23 needs; and
99-24 (C) implementing the low income housing plan as
99-25 applied to that region; and
99-26 (3) request and gather from political subdivisions and
99-27 other appropriate entities any affordable housing and community
100-1 development plans that are relevant to the development of the
100-2 regional plan described by Subsection (c), including local plans,
100-3 regional plans from regional planning commissions, and plans
100-4 developed for the United States Department of Housing and Urban
100-5 Development consolidated planning process.
100-6 Sec. 2306.080. DATABASE INFORMATION SPECIALIST. The
100-7 director shall appoint a database information specialist. The
100-8 primary responsibility of the database information specialist is to
100-9 provide for the effective and efficient dissemination to the public
100-10 of information related to affordable housing and community
100-11 development in a form that is accessible, widely available, and
100-12 easily used.
100-13 ARTICLE 6
100-14 SECTION 6.01. Section 2306.111(c), Government Code, is
100-15 amended to read as follows:
100-16 (c) In administering federal housing funds provided to the
100-17 state under the Cranston-Gonzalez National Affordable Housing Act
100-18 (42 U.S.C. Section 12701 et seq.), the department shall expend at
100-19 least 95 percent of [give the highest priority to utilizing] these
100-20 funds for the benefit of non-participating small cities and rural
100-21 areas that do not qualify to receive funds under the
100-22 Cranston-Gonzalez National Affordable Housing Act directly from the
100-23 United States Department of Housing and Urban Development [unless
100-24 the department finds there is insufficient need and demand for
100-25 housing funds within these areas]. All funds not set aside under
100-26 this subsection shall be used for the benefit of persons with
100-27 disabilities who live in areas other than small cities and rural
101-1 areas.
101-2 ARTICLE 7
101-3 SECTION 7.01. Section 2306.223, Government Code, is amended
101-4 to read as follows:
101-5 Sec. 2306.223. CRITERIA FOR FINANCING HOUSING DEVELOPMENT OF
101-6 HOUSING SPONSOR. Notwithstanding any other provision of this
101-7 chapter, the department may not finance a housing development
101-8 undertaken by a housing sponsor under this chapter, unless the
101-9 department first determines that:
101-10 (1) the housing development is necessary to provide
101-11 needed decent, safe, and sanitary housing at rentals or prices that
101-12 individuals or families of low and very low income or families of
101-13 moderate income can afford;
101-14 (2) the housing sponsor undertaking the proposed
101-15 housing development will supply well-planned and well-designed
101-16 housing for individuals or families of low and very low income or
101-17 families of moderate income;
101-18 (3) the housing sponsor is financially responsible;
101-19 (4) the housing sponsor is not, or will not enter into
101-20 a contract for the proposed housing development with, a housing
101-21 developer that:
101-22 (A) is on the department's debarred list,
101-23 including any parts of that list that are derived from the debarred
101-24 list of the United States Department of Housing and Urban
101-25 Development;
101-26 (B) breached a contract with a public agency; or
101-27 (C) misrepresented to a subcontractor the extent
102-1 to which the developer has benefited from contracts or financial
102-2 assistance that has been awarded by a public agency, including the
102-3 scope of the developer's participation in contracts with the agency
102-4 and the amount of financial assistance awarded to the developer by
102-5 the agency;
102-6 (5) the financing of the housing development is a
102-7 public purpose and will provide a public benefit; and
102-8 (6) [(5)] the housing development will be undertaken
102-9 within the authority granted by this chapter to the housing finance
102-10 division and the housing sponsor.
102-11 SECTION 7.02. The change in law made by this Act to Section
102-12 2306.223, Government Code, applies only to an application for
102-13 financing a housing development that is submitted to the Texas
102-14 Department of Housing and Community Affairs on or after the
102-15 effective date of this Act.
102-16 ARTICLE 8
102-17 SECTION 8.01. Subchapter DD, Chapter 2306, Government Code,
102-18 is amended to read as follows:
102-19 SUBCHAPTER DD. LOW INCOME HOUSING TAX CREDIT PROGRAM
102-20 Sec. 2306.6701. PURPOSE. The department shall administer the
102-21 low income housing tax credit program to:
102-22 (1) encourage the development and preservation of
102-23 appropriate types of rental housing for households that have
102-24 difficulty finding suitable, affordable rental housing in the
102-25 private marketplace;
102-26 (2) maximize the number of suitable, affordable
102-27 residential rental units added to the state's housing supply;
103-1 (3) prevent losses for any reason to the state's
103-2 supply of suitable, affordable residential rental units by enabling
103-3 the rehabilitation of rental housing or by providing other
103-4 preventive financial support under this subchapter; and
103-5 (4) provide for the participation of for-profit
103-6 organizations and provide for and encourage the participation of
103-7 nonprofit organizations in the acquisition, development, and
103-8 operation of affordable housing developments in urban and rural
103-9 communities.
103-10 Sec. 2306.6702. DEFINITIONS. (a) In this subchapter:
103-11 (1) "Applicant" means any person or affiliate of a
103-12 person who files an application with the department requesting a
103-13 housing tax credit allocation.
103-14 (2) "Application" means an application filed with the
103-15 department by an applicant and includes any exhibits or other
103-16 supporting materials.
103-17 (3) "Application log" means a form containing at least
103-18 the information required by Section 2306.6709.
103-19 (4) "Application round" means the period beginning on
103-20 the date the department begins accepting applications and
103-21 continuing until all available housing tax credits are allocated,
103-22 but not extending past the last day of the calendar year.
103-23 (5) "At-risk development" means a development that:
103-24 (A) receives the benefit of a subsidy in the
103-25 form of a below-market interest rate loan, interest rate reduction,
103-26 rental subsidy, Section 8 housing assistance payment, rental
103-27 supplement payment, or rental assistance payment under the
104-1 following federal laws, as applicable:
104-2 (i) Sections 221(d)(3) and (5), National
104-3 Housing Act (12 U.S.C. Section 1715l);
104-4 (ii) Section 236, National Housing Act (12
104-5 U.S.C. Section 1715z-1);
104-6 (iii) Section 202, Housing Act of 1959 (12
104-7 U.S.C. Section 1701q);
104-8 (iv) Section 101, Housing and Urban
104-9 Development Act of 1965 (12 U.S.C. Section 1701s);
104-10 (v) the Section 8 Additional Assistance
104-11 Program for housing developments with HUD-Insured and HUD-Held
104-12 Mortgages administered by the United States Department of Housing
104-13 and Urban Development;
104-14 (vi) the Section 8 Housing Assistance
104-15 Program for the Disposition of HUD-Owned Projects administered by
104-16 the United States Department of Housing and Urban Development; or
104-17 (vii) Sections 514, 515, and 516, Housing
104-18 Act of 1949 (42 U.S.C. Sections 1484, 1485, and 1486); and
104-19 (B) is subject to the following conditions:
104-20 (i) the stipulation to maintain
104-21 affordability in the contract granting the subsidy is nearing
104-22 expiration; or
104-23 (ii) the federally insured mortgage on the
104-24 development is eligible for prepayment or is nearing the end of its
104-25 term.
104-26 (6) "Development" means a proposed qualified low
104-27 income housing project, as defined by Section 42(g), Internal
105-1 Revenue Code of 1986 (26 U.S.C. Section 42(g)), that consists of
105-2 one or more buildings containing multiple units, that is financed
105-3 under a common plan, and that is owned by the same person for
105-4 federal tax purposes, including a project consisting of multiple
105-5 buildings that:
105-6 (A) are located on scattered sites; and
105-7 (B) contain only rent-restricted units.
105-8 (7) "Development owner" means any person or affiliate
105-9 of a person who owns or proposes a development or expects to
105-10 acquire control of a development under a purchase contract approved
105-11 by the department.
105-12 (8) "Housing tax credit" means a tax credit allocated
105-13 under the low income housing tax credit program.
105-14 (9) "Land use restriction agreement" means an
105-15 agreement between the department, the development owner, and the
105-16 development owner's successors in interest that encumbers the
105-17 development with respect to the requirements of this subchapter and
105-18 the requirements of Section 42, Internal Revenue Code of 1986 (26
105-19 U.S.C. Section 42).
105-20 (10) "Qualified allocation plan" means a plan adopted
105-21 by the board under this subchapter that:
105-22 (A) provides the threshold, scoring, and
105-23 underwriting criteria based on housing priorities of the department
105-24 that are appropriate to local conditions;
105-25 (B) gives preference in housing tax credit
105-26 allocations to developments that, as compared to the other
105-27 developments:
106-1 (i) when practicable and feasible based on
106-2 available funding sources, serve the lowest income tenants; and
106-3 (ii) are affordable to qualified tenants
106-4 for the longest economically feasible period; and
106-5 (C) provides a procedure for the department, the
106-6 department's agent, or another private contractor of the department
106-7 to use in monitoring compliance with the qualified allocation plan
106-8 and this subchapter.
106-9 (11) "Related party" means the following individuals
106-10 or entities:
106-11 (A) the brothers, sisters, spouse, ancestors,
106-12 and descendants of a person within the third degree of
106-13 consanguinity, as determined by Chapter 573;
106-14 (B) a person and a corporation, if the person
106-15 owns more than 50 percent of the outstanding stock of the
106-16 corporation;
106-17 (C) two or more corporations that are connected
106-18 through stock ownership with a common parent possessing more than
106-19 50 percent of:
106-20 (i) the total combined voting power of all
106-21 classes of stock of each of the corporations that can vote;
106-22 (ii) the total value of shares of all
106-23 classes of stock of each of the corporations; or
106-24 (iii) the total value of shares of all
106-25 classes of stock of at least one of the corporations, excluding, in
106-26 computing that voting power or value, stock owned directly by the
106-27 other corporation;
107-1 (D) a grantor and fiduciary of any trust;
107-2 (E) a fiduciary of one trust and a fiduciary of
107-3 another trust, if the same person is a grantor of both trusts;
107-4 (F) a fiduciary of a trust and a beneficiary of
107-5 the trust;
107-6 (G) a fiduciary of a trust and a corporation if
107-7 more than 50 percent of the outstanding stock of the corporation is
107-8 owned by or for:
107-9 (i) the trust; or
107-10 (ii) a person who is a grantor of the
107-11 trust;
107-12 (H) a person or organization and an organization
107-13 that is tax-exempt under Section 501(a), Internal Revenue Code of
107-14 1986 (26 U.S.C. Section 501), and that is controlled by that person
107-15 or the person's family members or by that organization;
107-16 (I) a corporation and a partnership or joint
107-17 venture if the same persons own more than:
107-18 (i) 50 percent of the outstanding stock of
107-19 the corporation; and
107-20 (ii) 50 percent of the capital interest or
107-21 the profits' interest in the partnership or joint venture;
107-22 (J) an S corporation and another S corporation
107-23 if the same persons own more than 50 percent of the outstanding
107-24 stock of each corporation;
107-25 (K) an S corporation and a C corporation if the
107-26 same persons own more than 50 percent of the outstanding stock of
107-27 each corporation;
108-1 (L) a partnership and a person or organization
108-2 owning more than 50 percent of the capital interest or the profits'
108-3 interest in that partnership; or
108-4 (M) two partnerships, if the same person or
108-5 organization owns more than 50 percent of the capital interests or
108-6 profits' interests.
108-7 (12) "Rural area" means an area that is located:
108-8 (A) outside the boundaries of a primary
108-9 metropolitan statistical area or a metropolitan statistical area;
108-10 (B) within the boundaries of a primary
108-11 metropolitan statistical area or a metropolitan statistical area,
108-12 if the statistical area has a population of 20,000 or less and does
108-13 not share a boundary with an urban area; or
108-14 (C) in an area that is eligible for funding by
108-15 the Texas Rural Development Office of the United States Department
108-16 of Agriculture.
108-17 (13) "Rural development agency" means the state agency
108-18 designated by the legislature as primarily responsible for rural
108-19 area development in the state.
108-20 (14) "Set-aside" means a reservation of a portion of
108-21 the available housing tax credits to provide financial support for
108-22 specific types of housing or geographic locations or serve specific
108-23 types of applicants as permitted by the qualified allocation plan
108-24 on a priority basis.
108-25 (15) "Threshold criteria" means the criteria used to
108-26 determine whether the development satisfies the minimum level of
108-27 acceptability for consideration established in the department's
109-1 qualified allocation plan.
109-2 (16) "Unit" means any residential rental unit in a
109-3 development consisting of an accommodation, including a single room
109-4 used as an accommodation on a non-transient basis, that contains
109-5 separate and complete physical facilities and fixtures for living,
109-6 sleeping, eating, cooking, and sanitation.
109-7 (b) For purposes of Subsection (a)(11), the constructive
109-8 ownership provisions of Section 267, Internal Revenue Code of 1986
109-9 (26 U.S.C. Section 267), apply. The board may lower in the
109-10 qualified allocation plan the percentages described by Subsection
109-11 (a)(11).
109-12 Sec. 2306.67021. APPLICABILITY OF SUBCHAPTER. Except as
109-13 provided by Section 2306.6703, this subchapter does not apply to
109-14 the allocation of housing tax credits to developments financed
109-15 through the private activity bond program.
109-16 Sec. 2306.67022. QUALIFIED ALLOCATION PLAN; MANUAL. The
109-17 board annually shall adopt a qualified allocation plan and a
109-18 corresponding manual to provide information regarding the
109-19 administration of and eligibility for the low income housing tax
109-20 credit program.
109-21 Sec. 2306.6703. INELIGIBILITY FOR CONSIDERATION. An
109-22 application is ineligible for consideration under the low income
109-23 housing tax credit program if:
109-24 (1) at the time of application or at any time during
109-25 the two-year period preceding the date the application round
109-26 begins, the applicant or a related party is or has been:
109-27 (A) a member of the board; or
110-1 (B) the director, a deputy director, the
110-2 director of housing programs, or the low income housing tax credit
110-3 program manager employed by the department; or
110-4 (2) the applicant proposes to replace in less than 15
110-5 years any private activity bond financing of the development
110-6 described by the application, unless:
110-7 (A) the applicant proposes to maintain for a
110-8 period of 30 years or more 100 percent of the development units
110-9 supported by low income housing tax credits as rent-restricted and
110-10 exclusively for occupancy by individuals and families earning not
110-11 more than 50 percent of the area median income, adjusted for family
110-12 size; and
110-13 (B) at least one-third of all the units in the
110-14 development are public housing units or Section 8 project-based
110-15 units.
110-16 Sec. 2306.6704. PREAPPLICATION PROCESS. (a) To prevent
110-17 unnecessary filing costs, the department by rule shall establish a
110-18 voluntary preapplication process to enable a preliminary assessment
110-19 of an application proposed for filing under this subchapter.
110-20 (b) The department shall award in the application evaluation
110-21 process described by Section 2306.6710 an appropriate number of
110-22 points as an incentive for participation in the preapplication
110-23 process established under this section.
110-24 (c) The department shall reject and return to the applicant
110-25 any application assessed by the department under this section that
110-26 fails to satisfy the threshold criteria required by the board in
110-27 the qualified allocation plan.
111-1 (d) If feasible under Section 2306.67041, an application
111-2 under this section must be submitted electronically.
111-3 Sec. 2306.67041. ON-LINE APPLICATION SYSTEM. (a) The
111-4 department and the Department of Information Resources shall
111-5 cooperate to evaluate the feasibility of an on-line application
111-6 system for the low income housing tax credit program to provide the
111-7 following functions:
111-8 (1) filing of preapplications and applications
111-9 on-line;
111-10 (2) posting of on-line preapplication or application
111-11 status and the application log detailing the status of, and
111-12 department's evaluations and scores pertaining to, those
111-13 applications; and
111-14 (3) posting of comments from applicants and the public
111-15 regarding a preapplication or application.
111-16 (b) The department shall determine the process for allowing
111-17 access to on-line preapplications and applications, information
111-18 related to those applications, and department decisions relating to
111-19 those applications.
111-20 (c) In the application cycle following the date any on-line
111-21 application system becomes operational, the department shall
111-22 require use of the system for submission of preapplications and
111-23 applications under this subchapter.
111-24 (d) The department shall publish a status report on the
111-25 implementation of the on-line application on the department's
111-26 website not later than January 1, 2002.
111-27 (e) Before the implementation of the on-line application
112-1 system, the department may implement the requirements of Section
112-2 2306.6717 in any manner the department considers appropriate.
112-3 Sec. 2306.6705. GENERAL APPLICATION REQUIREMENTS. An
112-4 application must contain at a minimum the following written,
112-5 detailed information in a form prescribed by the board:
112-6 (1) a description of:
112-7 (A) the financing plan for the development,
112-8 including any nontraditional financing arrangements;
112-9 (B) the use of funds with respect to the
112-10 development;
112-11 (C) the funding sources for the development,
112-12 including:
112-13 (i) construction, permanent, and bridge
112-14 loans; and
112-15 (ii) rents, operating subsidies, and
112-16 replacement reserves; and
112-17 (D) the commitment status of the funding sources
112-18 for the development;
112-19 (2) if syndication costs are included in the eligible
112-20 basis, a justification of the syndication costs for each cost
112-21 category by an attorney or accountant specializing in tax matters;
112-22 (3) from a syndicator or a financial consultant of the
112-23 applicant, an estimate of the amount of equity dollars expected to
112-24 be raised for the development in conjunction with the amount of
112-25 housing tax credits requested for allocation to the applicant,
112-26 including:
112-27 (A) pay-in schedules; and
113-1 (B) syndicator consulting fees and other
113-2 syndication costs;
113-3 (4) if rental assistance, an operating subsidy, or an
113-4 annuity is proposed for the development, any related contract or
113-5 other agreement securing those funds and an identification of:
113-6 (A) the source and annual amount of the funds;
113-7 (B) the number of units receiving the funds; and
113-8 (C) the term and expiration date of the contract
113-9 or other agreement;
113-10 (5) if the development is located within the
113-11 boundaries of a political subdivision with a zoning ordinance,
113-12 evidence in the form of a letter from the chief executive officer
113-13 of the political subdivision or from another local official with
113-14 jurisdiction over zoning matters that states that:
113-15 (A) the development is permitted under the
113-16 provisions of the ordinance that apply to the location of the
113-17 development; or
113-18 (B) the applicant is in the process of seeking
113-19 the appropriate zoning and has signed and provided to the political
113-20 subdivision a release agreeing to hold the political subdivision
113-21 and all other parties harmless in the event that the appropriate
113-22 zoning is denied;
113-23 (6) if an occupied development is proposed for
113-24 rehabilitation:
113-25 (A) an explanation of the process used to notify
113-26 and consult with the tenants in preparing the application;
113-27 (B) a relocation plan outlining:
114-1 (i) relocation requirements; and
114-2 (ii) a budget with an identified funding
114-3 source; and
114-4 (C) if applicable, evidence that the relocation
114-5 plan has been submitted to the appropriate local agency;
114-6 (7) a certification of the applicant's compliance with
114-7 appropriate state and federal laws, as required by other state law
114-8 or by the board; and
114-9 (8) any other information required by the board in the
114-10 qualified allocation plan.
114-11 Sec. 2306.6706. ADDITIONAL APPLICATION REQUIREMENT:
114-12 NONPROFIT SET-ASIDE ALLOCATION. (a) In addition to the information
114-13 required by Section 2306.6705, an application for a housing tax
114-14 credit allocation from the nonprofit set-aside, as defined by
114-15 Section 42(h)(5), Internal Revenue Code of 1986 (26 U.S.C. Section
114-16 42(h)(5)), must contain the following written, detailed information
114-17 with respect to each development owner and each general partner of
114-18 a development owner:
114-19 (1) Internal Revenue Service documentation of
114-20 designation as a Section 501(c)(3) or 501(c)(4) organization;
114-21 (2) evidence that one of the exempt purposes of the
114-22 nonprofit organization is to provide low income housing;
114-23 (3) a description of the nonprofit organization's
114-24 participation in the construction or rehabilitation of the
114-25 development and in the ongoing operations of the development;
114-26 (4) evidence that the nonprofit organization prohibits
114-27 a member of its board of directors, other than a chief staff member
115-1 serving concurrently as a member of the board, from receiving
115-2 material compensation for service on the board;
115-3 (5) a third-party legal opinion stating that the
115-4 nonprofit organization is not affiliated with or controlled by a
115-5 for-profit organization and the basis for that opinion;
115-6 (6) a copy of the nonprofit organization's most recent
115-7 audited financial statement;
115-8 (7) a list of the names and home addresses of members
115-9 of the board of directors of the nonprofit organization;
115-10 (8) a third-party legal opinion stating that the
115-11 nonprofit organization is eligible under Subsection (b) for a
115-12 housing tax credit allocation from the nonprofit set-aside and the
115-13 basis for that opinion; and
115-14 (9) evidence that a majority of the members of the
115-15 nonprofit organization's board of directors principally reside:
115-16 (A) in this state, if the development is located
115-17 in a rural area; or
115-18 (B) not more than 90 miles from the development
115-19 in the community in which the development is located, if the
115-20 development is not located in a rural area.
115-21 (b) To be eligible for a housing tax credit allocation from
115-22 the nonprofit set-aside, a nonprofit organization must:
115-23 (1) control a majority of the development;
115-24 (2) if the organization's application is filed on
115-25 behalf of a limited partnership, be the managing general partner;
115-26 and
115-27 (3) otherwise meet the requirements of Section
116-1 42(h)(5), Internal Revenue Code of 1986 (26 U.S.C. Section
116-2 42(h)(5)).
116-3 Sec. 2306.6707. ADDITIONAL APPLICATION REQUIREMENT:
116-4 DISCLOSURE OF INTERESTED PERSONS. (a) The applicant must disclose
116-5 in the application the names of any persons, including affiliates
116-6 of those persons and related parties, providing developmental or
116-7 operational services to the development, including:
116-8 (1) a development owner;
116-9 (2) an architect;
116-10 (3) an attorney;
116-11 (4) a tax professional;
116-12 (5) a property management company;
116-13 (6) a consultant;
116-14 (7) a market analyst;
116-15 (8) a tenant services provider;
116-16 (9) a syndicator;
116-17 (10) a real estate broker or agent or a person
116-18 receiving a fee in connection with services usually provided by a
116-19 real estate broker or agent;
116-20 (11) at the time the application is submitted, the
116-21 owners of the property on which the development is located;
116-22 (12) a developer; and
116-23 (13) a builder or general contractor.
116-24 (b) For each person described by Subsection (a), the
116-25 application must disclose any company name, company contact person,
116-26 address, and telephone number.
116-27 Sec. 2306.6708. APPLICATION CHANGES OR SUPPLEMENTS. (a)
117-1 Except as provided by Subsection (b), an applicant may not change
117-2 or supplement an application in any manner after the filing
117-3 deadline.
117-4 (b) This section does not prohibit an applicant from:
117-5 (1) at the request of the department, clarifying
117-6 information in the application or correcting administrative
117-7 deficiencies in the application; or
117-8 (2) amending an application after allocation of
117-9 housing tax credits in the manner provided by Section 2306.6712.
117-10 Sec. 2306.6709. APPLICATION LOG. (a) In a form prescribed
117-11 by the department, the department shall maintain for each
117-12 application an application log that tracks the application from the
117-13 date of its submission.
117-14 (b) The application log must contain at least the following
117-15 information:
117-16 (1) the names of the applicant and related parties;
117-17 (2) the physical location of the development,
117-18 including the relevant region of the state;
117-19 (3) the amount of housing tax credits requested for
117-20 allocation by the department to the applicant;
117-21 (4) any set-aside category under which the application
117-22 is filed;
117-23 (5) the score of the application in each scoring
117-24 category adopted by the department under the qualified allocation
117-25 plan;
117-26 (6) any decision made by the department or board
117-27 regarding the application, including the department's decision
118-1 regarding whether to underwrite the application and the board's
118-2 decision regarding whether to allocate housing tax credits to the
118-3 development;
118-4 (7) the names of persons making the decisions
118-5 described by Subdivision (6), including the names of department
118-6 staff scoring and underwriting the application, to be recorded next
118-7 to the description of the applicable decision;
118-8 (8) the amount of housing tax credits allocated to the
118-9 development; and
118-10 (9) a dated record and summary of any contact between
118-11 the department staff, the board, and the applicant or any related
118-12 parties.
118-13 Sec. 2306.6710. EVALUATION AND UNDERWRITING OF APPLICATIONS.
118-14 (a) In evaluating an application, the department shall determine
118-15 whether the application satisfies the threshold criteria required
118-16 by the board in the qualified allocation plan. The department
118-17 shall reject and return to the applicant any application that fails
118-18 to satisfy the threshold criteria.
118-19 (b) If an application satisfies the threshold criteria, the
118-20 department shall score and rank the application using a point
118-21 system based on criteria that are adapted to regional market
118-22 conditions and adopted by the department, including criteria:
118-23 (1) regarding:
118-24 (A) the income levels of tenants of the
118-25 development;
118-26 (B) the rent levels of the units;
118-27 (C) the period of guaranteed affordability for
119-1 low income tenants;
119-2 (D) the cost by square foot of the development;
119-3 (E) the size, quality, and amenities of the
119-4 units;
119-5 (F) the services to be provided to tenants of
119-6 the development;
119-7 (G) the commitment of development funding by
119-8 local political subdivisions that enables additional units for
119-9 individuals and families of very low income; and
119-10 (H) the level of community support for the
119-11 application, evaluated on the basis of written statements of
119-12 support from local and state elected officials representing
119-13 constituents in areas that include the location of the development;
119-14 and
119-15 (2) imposing penalties on applicants or affiliates who
119-16 have requested extensions of department deadlines relating to
119-17 developments supported by housing tax credit allocations made in
119-18 the application round preceding the current round.
119-19 (c) The department shall publish in the qualified allocation
119-20 plan details of the scoring system used by the department to score
119-21 applications.
119-22 (d) The department shall underwrite the applications ranked
119-23 under Subsection (b) beginning with the applications with the
119-24 highest scores in each region described by Section 2306.111(d) and
119-25 in each set-aside category described in the qualified allocation
119-26 plan. Based on application rankings, the department shall continue
119-27 to underwrite applications until the department has processed
120-1 enough applications satisfying the department's underwriting
120-2 criteria to enable the allocation of all available housing tax
120-3 credits according to regional allocation goals and set-aside
120-4 categories. To enable the board to establish an applications
120-5 waiting list under Section 2306.6711, the department shall
120-6 underwrite as many additional applications as the board considers
120-7 necessary to ensure that all available housing tax credits are
120-8 allocated within the period required by law.
120-9 (e) In adopting criteria for scoring and underwriting
120-10 applications for purposes of housing tax credit allocations, the
120-11 department shall attach, consistent with Section 42, Internal
120-12 Revenue Code of 1986 (26 U.S.C. Section 42), the most weight to
120-13 criteria that will:
120-14 (1) result in an allocation of housing tax credits for
120-15 developments serving the lowest income tenants; and
120-16 (2) produce the greatest number of high quality units
120-17 committed to remaining affordable to qualified tenants for extended
120-18 periods.
120-19 Sec. 2306.6711. ALLOCATION OF HOUSING TAX CREDITS. (a) The
120-20 director shall provide the application scores to the board before
120-21 the 30th day preceding the date the board begins to issue
120-22 commitments for housing tax credits in the allocation round.
120-23 (b) Not later than the deadline specified in the qualified
120-24 allocation plan, the board shall issue commitments for available
120-25 housing tax credits based on the application evaluation process
120-26 provided by Section 2306.6710. The board may not allocate to an
120-27 applicant housing tax credits in any unnecessary amount, as
121-1 determined by the department's underwriting policy and by federal
121-2 law, and in any event may not allocate to the applicant housing tax
121-3 credits in an amount greater than $1.6 million in a single
121-4 application round.
121-5 (c) Concurrently with the initial issuance of commitments
121-6 for housing tax credits under Subsection (b), the board shall
121-7 establish a waiting list of additional applications ranked by score
121-8 in descending order of priority based on set-aside categories and
121-9 regional allocation goals.
121-10 (d) The board shall issue commitments for housing tax
121-11 credits with respect to applications on the waiting list as
121-12 additional credits become available.
121-13 (e) Not later than the 120th day after the date of the
121-14 initial issuance of commitments for housing tax credits under
121-15 Subsection (b), the department shall provide to an applicant who
121-16 did not receive a commitment under that subsection an opportunity
121-17 to meet and discuss with the department the application's
121-18 deficiencies and scoring.
121-19 Sec. 2306.6712. AMENDMENT OF APPLICATION SUBSEQUENT TO
121-20 ALLOCATION BY BOARD. (a) If a proposed modification would
121-21 materially alter a development approved for an allocation of a
121-22 housing tax credit, the department shall require the applicant to
121-23 file a formal, written amendment to the application on a form
121-24 prescribed by the department.
121-25 (b) The director shall require the department staff assigned
121-26 to underwrite applications to evaluate the amendment and provide an
121-27 analysis and written recommendation to the board. The appropriate
122-1 monitor under Section 2306.6719 shall also provide to the board an
122-2 analysis and written recommendation regarding the amendment.
122-3 (c) The board must vote on whether to approve the amendment.
122-4 The board by vote may reject an amendment and, if appropriate,
122-5 rescind the allocation of housing tax credits and reallocate the
122-6 credits to other applicants on the waiting list required by Section
122-7 2306.6711 if the board determines that the modification proposed in
122-8 the amendment:
122-9 (1) would materially alter the development in a
122-10 negative manner; or
122-11 (2) would have adversely affected the selection of the
122-12 application in the application round.
122-13 (d) Material alteration of a development includes:
122-14 (1) a significant modification of the site plan;
122-15 (2) a modification of the number of units or bedroom
122-16 mix of units;
122-17 (3) a substantive modification of the scope of tenant
122-18 services;
122-19 (4) a reduction of three percent or more in the square
122-20 footage of the units or common areas;
122-21 (5) a significant modification of the architectural
122-22 design of the development;
122-23 (6) a modification of the residential density of the
122-24 development of at least five percent; and
122-25 (7) any other modification considered significant by
122-26 the board.
122-27 (e) In evaluating the amendment under this subsection, the
123-1 department staff shall consider whether the need for the
123-2 modification proposed in the amendment was:
123-3 (1) reasonably foreseeable by the applicant at the
123-4 time the application was submitted; or
123-5 (2) preventable by the applicant.
123-6 (f) This section shall be administered in a manner that is
123-7 consistent with Section 42, Internal Revenue Code of 1986 (26
123-8 U.S.C. Section 42).
123-9 Sec. 2306.6713. HOUSING TAX CREDIT AND OWNERSHIP TRANSFERS.
123-10 (a) An applicant may not transfer an allocation of housing tax
123-11 credits or ownership of a development supported with an allocation
123-12 of housing tax credits to any person other than an affiliate unless
123-13 the applicant obtains the director's prior, written approval of the
123-14 transfer.
123-15 (b) The director may not unreasonably withhold approval of
123-16 the transfer.
123-17 (c) An applicant seeking director approval of a transfer and
123-18 the proposed transferee must provide to the department a copy of
123-19 any applicable agreement between the parties to the transfer,
123-20 including any third-party agreement with the department.
123-21 (d) On request, an applicant seeking director approval of a
123-22 transfer must provide to the department:
123-23 (1) a list of the names of transferees and related
123-24 parties; and
123-25 (2) detailed information describing the experience and
123-26 financial capacity of transferees and related parties.
123-27 (e) The development owner shall certify to the director that
124-1 the tenants in the development have been notified in writing of the
124-2 transfer before the 30th day preceding the date of submission of
124-3 the transfer request to the department.
124-4 (f) Not later than the fifth working day after the date the
124-5 department receives all necessary information under this section,
124-6 the department shall conduct a qualifications review of a
124-7 transferee to determine:
124-8 (1) the transferee's past compliance with all aspects
124-9 of the low income housing tax credit program, including land use
124-10 restriction agreements; and
124-11 (2) the sufficiency of the transferee's experience
124-12 with developments supported with housing tax credit allocations.
124-13 Sec. 2306.6714. AT-RISK DEVELOPMENT SET-ASIDE. (a) The
124-14 department shall set aside for at-risk developments not less than
124-15 15 percent of the housing tax credits available for allocation in
124-16 the calendar year.
124-17 (b) Any amount of housing tax credits set aside under this
124-18 section that remains after the initial allocation of housing tax
124-19 credits is available for allocation to any eligible applicant as
124-20 provided by the qualified allocation plan.
124-21 Sec. 2306.6715. APPEAL. (a) In a form prescribed by the
124-22 department in the qualified allocation plan, an applicant may
124-23 appeal the following decisions made by the department in the
124-24 application evaluation process provided by Section 2306.6710:
124-25 (1) a determination regarding the application's
124-26 satisfaction of threshold and underwriting criteria;
124-27 (2) the scoring of the application; and
125-1 (3) a recommendation as to the amount of housing tax
125-2 credits to be allocated to the application.
125-3 (b) An applicant may not appeal a decision made under
125-4 Section 2306.6710 regarding an application filed by another
125-5 applicant.
125-6 (c) An applicant must file a written appeal authorized by
125-7 this section with the department not later than the seventh day
125-8 after the date the department publishes the results of the
125-9 application evaluation process provided by Section 2306.6710. In
125-10 the appeal, the applicant must specifically identify the
125-11 applicant's grounds for appeal, based on the original application
125-12 and additional documentation filed with the original application.
125-13 (d) The director shall respond in writing to the appeal not
125-14 later than the 14th day after the date of receipt of the appeal. If
125-15 the applicant is not satisfied with the director's response to the
125-16 appeal, the applicant may appeal directly in writing to the board,
125-17 provided that an appeal filed with the board under this subsection
125-18 must be received by the board before:
125-19 (1) the seventh day preceding the date of the board
125-20 meeting at which the relevant allocation decision is expected to be
125-21 made; or
125-22 (2) the third day preceding the date of the board
125-23 meeting described by Subdivision (1), if the director does not
125-24 respond to the appeal before the date described by Subdivision (1).
125-25 (e) Board review of an appeal under Subsection (d) is based
125-26 on the original application and additional documentation filed with
125-27 the original application. The board may not review any information
126-1 not contained in or filed with the original application. The
126-2 decision of the board regarding the appeal is final.
126-3 Sec. 2306.6716. FEES. (a) A fee charged by the department
126-4 for filing an application may not be excessive and must reflect the
126-5 department's actual costs in processing the application, providing
126-6 copies of documents to persons connected with the application
126-7 process, and making appropriate information available to the public
126-8 through the department's website.
126-9 (b) The department shall publish not later than July 1 of
126-10 each year a schedule of application fees that specifies the amount
126-11 to be charged at each stage of the application process.
126-12 (c) In accordance with the fee schedule, the department
126-13 shall refund the balance of any fees collected for an application
126-14 that is withdrawn by the applicant or that is not fully processed
126-15 by the department. The department must provide the refund to the
126-16 applicant not later than the 30th day after the date the last
126-17 official action is taken with respect to the application.
126-18 (d) The department shall develop a sliding scale fee
126-19 schedule for applications that encourages increased participation
126-20 by community housing development organizations in the low income
126-21 housing tax credit program.
126-22 Sec. 2306.6717. PUBLIC INFORMATION AND HEARINGS. (a)
126-23 Subject to Section 2306.67041, the department shall make the
126-24 following items available on the department's website:
126-25 (1) as soon as practicable, any proposed application
126-26 submitted through the preapplication process established by this
126-27 subchapter;
127-1 (2) before the 30th day preceding the date of the
127-2 relevant board allocation decision, except as provided by
127-3 Subdivision (3), the entire application, including all supporting
127-4 documents and exhibits, the application log, a scoring sheet
127-5 providing details of the application score, and any other document
127-6 relating to the processing of the application;
127-7 (3) not later than the third working day after the
127-8 date of the relevant determination, the results of each stage of
127-9 the application process, including the results of the application
127-10 scoring and underwriting phases and the allocation phase;
127-11 (4) before the 15th day preceding the date of board
127-12 action on the amendment, notice of an amendment under Section
127-13 2306.6712 and the recommendation of the director and monitor
127-14 regarding the amendment; and
127-15 (5) an appeal filed with the department or board under
127-16 Section 2306.6715 or 2306.6721 and any other document relating to
127-17 the processing of the appeal.
127-18 (b) The department shall provide information regarding the
127-19 low income housing tax credit program, including notice regarding
127-20 public hearings, board meetings, and the opening and closing dates
127-21 for applications, to:
127-22 (1) local housing departments;
127-23 (2) newspapers;
127-24 (3) nonprofit organizations;
127-25 (4) on-site property managers of occupied developments
127-26 that are the subject of applications; and
127-27 (5) any other interested persons, including community
128-1 groups, who request the information.
128-2 (c) The department shall hold at least three public hearings
128-3 in different regions of the state to receive public comments on
128-4 applications and on other issues relating to the low income housing
128-5 tax credit program.
128-6 (d) Notwithstanding any other provision of this section, the
128-7 department may treat the financial statements of any applicant as
128-8 confidential and may elect not to disclose those statements to the
128-9 public.
128-10 Sec. 2306.6718. ELECTED OFFICIALS. (a) The department shall
128-11 provide written notice of the filing of an application to the
128-12 following elected officials:
128-13 (1) members of the legislature who represent the
128-14 community containing the development described in the application;
128-15 and
128-16 (2) the chief executive officer of the political
128-17 subdivision containing the development described in the
128-18 application.
128-19 (b) The department shall provide the elected officials with
128-20 an opportunity to comment on the application during the application
128-21 evaluation process provided by Section 2306.6710 and shall consider
128-22 those comments in evaluating applications under that section.
128-23 (c) A member of the legislature who represents the community
128-24 containing the development may hold a community meeting at which
128-25 the department shall provide appropriate representation.
128-26 (d) If the department receives written notice from the mayor
128-27 or county judge of an affected municipality or county opposing an
129-1 application, the department must contact the mayor or county judge
129-2 and offer to conduct a physical inspection of the development site
129-3 and consult with the mayor or county judge before the application
129-4 is scored.
129-5 Sec. 2306.6719. MONITORING OF COMPLIANCE. (a) The
129-6 department may contract with an independent third party to monitor
129-7 a development during its construction or rehabilitation and during
129-8 its operation for compliance with:
129-9 (1) any conditions imposed by the department in
129-10 connection with the allocation of housing tax credits to the
129-11 development; and
129-12 (2) appropriate state and federal laws, as required by
129-13 other state law or by the board.
129-14 (b) The department may assign department staff other than
129-15 housing tax credit division staff to perform the relevant
129-16 monitoring functions required by this section in the construction
129-17 or rehabilitation phase of a development.
129-18 Sec. 2306.6720. ENFORCEABILITY OF APPLICANT REPRESENTATIONS.
129-19 Each representation made by an applicant to secure a housing tax
129-20 credit allocation is enforceable by the department and the tenants
129-21 of the development supported with the allocation.
129-22 Sec. 2306.6721. DEBARMENT FROM PROGRAM PARTICIPATION. (a)
129-23 The board by rule shall adopt a policy providing for the debarment
129-24 of a person from participation in the low income housing tax credit
129-25 program as described by this section.
129-26 (b) The department may debar a person from participation in
129-27 the program on the basis of the person's past failure to comply
130-1 with any condition imposed by the department in connection with the
130-2 allocation of housing tax credits.
130-3 (c) The department shall debar a person from participation
130-4 in the program if the person:
130-5 (1) materially violates any condition imposed by the
130-6 department in connection with the allocation of housing tax
130-7 credits;
130-8 (2) is debarred from participation in federal housing
130-9 programs by the United States Department of Housing and Urban
130-10 Development; or
130-11 (3) is in material noncompliance with or has
130-12 repeatedly violated a land use restriction agreement regarding a
130-13 development supported with a housing tax credit allocation.
130-14 (d) A person debarred by the department from participation
130-15 in the program may appeal the person's debarment to the board.
130-16 Sec. 2306.6722. DEVELOPMENT ACCESSIBILITY. Any development
130-17 supported with a housing tax credit allocation shall comply with
130-18 the accessibility standards that are required under Section 504,
130-19 Rehabilitation Act of 1973 (29 U.S.C. Section 794), and specified
130-20 under 24 C.F.R. Part 8, Subpart C.
130-21 Sec. 2306.6723. COORDINATION WITH RURAL DEVELOPMENT AGENCY.
130-22 (a) The department shall jointly administer with the rural
130-23 development agency any set-aside for rural areas to:
130-24 (1) ensure the maximum use and optimum geographic
130-25 distribution of housing tax credits in rural areas; and
130-26 (2) provide for information sharing, efficient
130-27 procedures, and fulfillment of development compliance requirements
131-1 in rural areas.
131-2 (b) The rural development agency shall assist in developing
131-3 all threshold, scoring, and underwriting criteria applied to
131-4 applications eligible for the rural area set-aside. The criteria
131-5 must be approved by that agency.
131-6 (c) To ensure that the rural area set-aside receives a
131-7 sufficient volume of eligible applications, the department shall
131-8 fund and, with the rural development agency, shall jointly
131-9 implement outreach, training, and rural area capacity building
131-10 efforts as directed by the rural development agency.
131-11 (d) The department and the rural development agency shall
131-12 jointly adjust the regional allocation of housing tax credits
131-13 described by Section 2306.111 to offset the under-utilization and
131-14 over-utilization of multifamily private activity bonds and other
131-15 housing resources in the different regions of the state.
131-16 (e) From application fees collected under this subchapter,
131-17 the department shall reimburse the rural development agency for any
131-18 costs incurred by the agency in carrying out the functions required
131-19 by this section.
131-20 Sec. 2306.6724 [2306.671]. DEADLINES FOR ALLOCATION OF LOW
131-21 INCOME HOUSING TAX CREDITS. (a) Not later than September 30
131-22 [November 15] of each year, the department shall prepare and submit
131-23 to the board for adoption the qualified allocation plan required by
131-24 federal law for use by the department in setting criteria and
131-25 priorities for the allocation of tax credits under the low income
131-26 housing tax credit program.
131-27 (b) The board shall adopt and submit to the governor the
132-1 qualified allocation plan not later than November 15 [January 31].
132-2 (c) The governor shall approve, reject, or modify and
132-3 approve the qualified allocation plan not later than December 1
132-4 [February 28].
132-5 (d) An applicant for a low income housing tax credit to be
132-6 issued a commitment during the initial allocation cycle in a
132-7 calendar year must submit an application to the department not
132-8 later than March 1 [May 15].
132-9 (e) The board shall review the recommendations of department
132-10 staff regarding applications and shall issue a list of approved
132-11 applications [issue a commitment for allocation for the initial
132-12 cycle of low income housing tax credits] each year in accordance
132-13 with the qualified allocation plan not later than June 30 [July
132-14 31].
132-15 (f) The board shall issue final commitments for allocations
132-16 of housing tax credits each year in accordance with the qualified
132-17 allocation plan not later than July 31.
132-18 Sec. 2306.6725 [2306.672]. SCORING OF APPLICATIONS. (a)
132-19 [The goal of the low income housing tax credit program is to
132-20 provide permanent affordable housing.] In allocating low income
132-21 housing tax credits, the department shall score each application
132-22 using a point system based on criteria adopted by the department
132-23 that are consistent with the department's housing goals, including
132-24 criteria addressing the ability of the proposed project to:
132-25 (1) provide quality social support services to
132-26 residents;
132-27 (2) demonstrate community and neighborhood support as
133-1 defined by the qualified allocation plan;
133-2 (3) consistent with sound underwriting practices and
133-3 when economically feasible, serve individuals and families of
133-4 extremely low income by leveraging private and state and federal
133-5 resources, including federal HOPE VI grants received through the
133-6 United States Department of Housing and Urban Development;
133-7 (4) serve traditionally underserved areas;
133-8 (5) remain affordable to qualified tenants for an
133-9 extended, economically feasible period; and
133-10 (6) comply with the accessibility standards that are
133-11 required under Section 504 of the Rehabilitation Act of 1973 (29
133-12 U.S.C. Section 794), and specified under 24 C.F.R. Part 8, Subpart
133-13 C. [The department shall publish in the qualified allocation plan
133-14 any discretionary factor that the department will consider in
133-15 scoring an application.]
133-16 (b) The department shall provide appropriate incentives as
133-17 determined through the qualified allocation plan to reward
133-18 applicants who agree to equip the property that is the basis of the
133-19 application with energy saving devices that meet the standards
133-20 established by the state energy conservation office or [If an
133-21 applicant meets the department's scoring and underwriting criteria,
133-22 the department shall add:]
133-23 [(1) five bonus points to the applicant's score if the
133-24 applicant agrees] to provide to a qualified nonprofit organization
133-25 or tenant organization a right of first refusal to purchase the
133-26 property [to which the tax credit applies] at the minimum price
133-27 provided in, and in accordance with the requirements of, Section
134-1 42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
134-2 42(i)(7))[; and]
134-3 [(2) two bonus points to the applicant's score if the
134-4 application is received within the first 10 days of the application
134-5 acceptance period].
134-6 (c) On [The department shall provide the score of each
134-7 application on each criterion to the board and the governor. The
134-8 results of the scoring shall be available to the public.]
134-9 [(d) Upon] awarding tax credit allocations, the board shall
134-10 document the reasons for each project's selection, including an
134-11 explanation of:
134-12 (1) all discretionary factors used in making its
134-13 determination; and
134-14 (2) the reasons for any decision that conflicts with
134-15 the recommendations of department staff under Section 2306.6731.
134-16 (d) For each scoring criterion, the department shall use a
134-17 range of points to evaluate the degree to which a proposed project
134-18 satisfies the criterion. The department may not award a number of
134-19 points for a scoring criterion that is disproportionate to the
134-20 degree to which a proposed project complies with that criterion.
134-21 Sec. 2306.6726 [2306.673]. SALE OF CERTAIN LOW INCOME
134-22 HOUSING TAX CREDIT PROPERTY. (a) Not later than two years before
134-23 the expiration of the compliance period, a recipient of a low
134-24 income housing tax credit who agreed to provide a right of first
134-25 refusal under Section 2306.6725 [2306.672(b)(1)] and who intends to
134-26 sell the property shall notify the department of the recipient's
134-27 intent to sell. The recipient shall notify qualified nonprofit
135-1 organizations and tenant organizations of the opportunity to
135-2 purchase the property.
135-3 (b) The recipient may:
135-4 (1) during the first six-month period after notifying
135-5 the department, negotiate or enter into a purchase agreement only
135-6 with a qualified nonprofit organization that is also a community
135-7 housing development organization as defined by the federal home
135-8 investment partnership program;
135-9 (2) during the second six-month period after notifying
135-10 the department, negotiate or enter into a purchase agreement with
135-11 any qualified nonprofit organization or tenant organization; and
135-12 (3) during the year before the expiration of the
135-13 compliance period, negotiate or enter into a purchase agreement
135-14 with the department or any qualified nonprofit organization or
135-15 tenant organization approved by the department.
135-16 (c) Notwithstanding an agreement under Section 2306.6725
135-17 [2306.672(b)(1)], a recipient of a low income housing tax credit
135-18 may sell property to which the tax credit applies to any purchaser
135-19 after the expiration of the compliance period if a qualified
135-20 nonprofit organization or tenant organization does not offer to
135-21 purchase the property at the minimum price provided by Section
135-22 42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
135-23 42(i)(7)), and the department declines to purchase the property.
135-24 (d) In this section, "compliance period" has the meaning
135-25 assigned by Section 42(i)(1), Internal Revenue Code of 1986 (26
135-26 U.S.C. Section 42(i)(1)).
135-27 Sec. 2306.6727 [2306.674]. DEPARTMENT PURCHASE OF LOW INCOME
136-1 HOUSING TAX CREDIT PROPERTY. The board by rule may develop and
136-2 implement a program to purchase low income housing tax credit
136-3 property that is not purchased by a qualified nonprofit
136-4 organization or tenant organization. The department may not
136-5 purchase low income housing tax credit property if the board finds
136-6 that the purchase is not in the best interest of the state.
136-7 Sec. 2306.6730. ACCESSIBILITY REQUIRED. A project to which a
136-8 low income housing tax credit is allocated under this subchapter
136-9 shall comply with the accessibility standards that are required
136-10 under Section 504 of the Rehabilitation Act of 1973 (29 U.S.C.
136-11 Section 794), as amended, and specified under 24 C.F.R. Part 8,
136-12 Subpart C.
136-13 Sec. 2306.6731 [2306.675]. ALLOCATION DECISION; REEVALUATION
136-14 [OF LOW INCOME HOUSING TAX CREDIT]. (a) Department staff shall
136-15 provide written, documented recommendations to the board concerning
136-16 the financial or programmatic viability of each application for a
136-17 low income housing tax credit before the board makes a decision
136-18 relating to the allocation of tax credits. The board may not make
136-19 without good cause an allocation decision that conflicts with the
136-20 recommendations of department staff.
136-21 (b) Regardless of project stage, the board must reevaluate a
136-22 project that undergoes a substantial change between the time of
136-23 initial board approval of the project and the time of issuance of a
136-24 tax credit commitment for the project. The board may revoke any
136-25 tax credit commitment issued for a project that has been
136-26 unfavorably reevaluated by the board under this subsection. [Not
136-27 later than the deadline specified in Section 2306.671(e), the board
137-1 shall issue a commitment for tax credits available to the
137-2 department. Concurrently with the issuance of a commitment for
137-3 initial tax credits, the board shall establish a waiting list of
137-4 additional applications, ranked in descending order of priority, to
137-5 be issued a commitment for tax credits if additional credits become
137-6 available.]
137-7 [Sec. 2306.676. EQUAL ACCESS TO PROGRAM. The department
137-8 shall establish procedures through the qualified allocation plan to
137-9 ensure that each applicant for a low income housing tax credit has
137-10 a fair and equal opportunity to submit or resubmit an application
137-11 and submit for consideration any authorized supplementary materials
137-12 and information.]
137-13 [Sec. 2306.677. FEES. (a) A fee charged by the department
137-14 to an applicant for a low income housing tax credit may not be
137-15 excessive and must reflect the department's actual costs in
137-16 processing applications and providing copies of documents in
137-17 connection with the allocation process.]
137-18 [(b) The department shall refund a fee charged to an
137-19 applicant if the department does not score the applicant's
137-20 application, except the department may retain a reasonable portion
137-21 of the fee to compensate the department for costs associated with
137-22 the application.]
137-23 Sec. 2306.6732 [2306.678]. PUBLIC INFORMATION [AND HEARINGS
137-24 ON PROGRAM]. [(a)] The department shall provide information
137-25 regarding the low income housing tax credit program, including
137-26 notices of public hearings, meetings, and opening and closing dates
137-27 for applications for a low income housing tax credit, to local
138-1 housing departments, any appropriate newspapers of general or
138-2 limited circulation that serve the community in which the proposed
138-3 project is to be located, nonprofit organizations, on-site property
138-4 managers of occupied projects that are the subject of tax credit
138-5 applications for posting in prominent locations at those projects,
138-6 and any other interested persons and community groups[,] who
138-7 request the information. The department shall also publish the
138-8 information on the department's website.
138-9 Sec. 2306.6733. REPRESENTATION BY FORMER BOARD MEMBER OR
138-10 OTHER PERSON. (a) A former board member or a former director,
138-11 deputy director, director of housing programs, or low income
138-12 housing tax credit program manager employed by the department may
138-13 not:
138-14 (1) for compensation, represent an applicant for an
138-15 allocation of low income housing tax credits or a related party
138-16 before the second anniversary of the date that the board member's,
138-17 director's, or manager's service in office or employment with the
138-18 department ceases;
138-19 (2) represent any applicant or related party or
138-20 receive compensation for services rendered on behalf of any
138-21 applicant or related party regarding the consideration of a housing
138-22 tax credit application in which the former board member, director,
138-23 or manager participated during the period of service in office or
138-24 employment with the department, either through personal involvement
138-25 or because the matter was within the scope of the board member's,
138-26 director's, or manager's official responsibility; or
138-27 (3) for compensation, communicate directly with a
139-1 member of the legislative branch to influence legislation on behalf
139-2 of an applicant or related party before the second anniversary of
139-3 the date that the board member's, director's, or manager's service
139-4 in office or employment with the department ceases.
139-5 (b) A person commits an offense if the person violates this
139-6 section. An offense under this section is a Class A misdemeanor.
139-7 Sec. 2306.6734. MINORITY-OWNED BUSINESSES. (a) The
139-8 department shall require a person who receives an allocation of
139-9 housing tax credits to attempt to ensure that at least 30 percent
139-10 of the construction and management businesses with which the person
139-11 contracts in connection with the development are minority-owned
139-12 businesses.
139-13 (b) A person who receives an allocation of housing tax
139-14 credits must report to the department not less than once in each
139-15 90-day period following the date of allocation regarding the
139-16 percentage of businesses with which the person has contracted that
139-17 qualify as minority-owned businesses.
139-18 (c) In this section:
139-19 (1) "Minority-owned business" means a business entity
139-20 at least 51 percent of which is owned by members of a minority
139-21 group or, in the case of a corporation, at least 51 percent of the
139-22 shares of which are owned by members of a minority group, and that
139-23 is managed and controlled by members of a minority group in its
139-24 daily operations.
139-25 (2) "Minority group" includes:
139-26 (A) women;
139-27 (B) African Americans;
140-1 (C) American Indians;
140-2 (D) Asian Americans; and
140-3 (E) Mexican Americans and other Americans of
140-4 Hispanic origin.
140-5 [(b) The department shall hold at least three public
140-6 hearings in different regions of the state to receive public
140-7 comments on low income housing tax credit applications.]
140-8 SECTION 8.02. Section 2306.6730, Government Code, as added by
140-9 this Act, applies only to a project for which an application for a
140-10 low income housing tax credit is submitted on or after the
140-11 effective date of this Act.
140-12 ARTICLE 9
140-13 SECTION 9.01. Chapter 2306, Government Code, is amended by
140-14 adding Subchapter JJ to read as follows:
140-15 SUBCHAPTER JJ. TEXAS AFFORDABLE HOUSING NEEDS ASSESSMENT
140-16 Sec. 2306.881. DEFINITIONS. In this subchapter:
140-17 (1) "Border region" means the area composed of the
140-18 counties of Brewster, Brooks, Cameron, Culberson, Dimmit, Duval, El
140-19 Paso, Hidalgo, Hudspeth, Jeff Davis, Jim Hogg, Kenedy, Kinney, La
140-20 Salle, Maverick, Presidio, Starr, Val Verde, Webb, Willacy, Zapata,
140-21 and Zavala.
140-22 (2) "Public senior college or university" has the
140-23 meaning assigned by Section 61.003, Education Code.
140-24 Sec. 2306.882. TEXAS AFFORDABLE HOUSING NEEDS ASSESSMENT.
140-25 (a) In conjunction with the office of the comptroller, the
140-26 department shall assess the present and future affordable housing
140-27 needs of the border region and of the uniform state service regions
141-1 of this state.
141-2 (b) The department shall use the following factors in making
141-3 the assessment required by this subchapter:
141-4 (1) the number of extremely low, very low, and low
141-5 income households in each region;
141-6 (2) the number and type of publicly subsidized housing
141-7 units in each region;
141-8 (3) the number and amount of loans provided by the
141-9 department in each region and the income level of the recipients of
141-10 the loans;
141-11 (4) the number and amount of housing development
141-12 grants made by the department in each region and a description of
141-13 each grant;
141-14 (5) the number of substandard or inadequate housing
141-15 units in each region;
141-16 (6) cost estimates for correcting substandard and
141-17 inadequate housing conditions in each region;
141-18 (7) the number of extremely low, very low, and low
141-19 income households in each region that spend more than half of
141-20 household income on rent or mortgage payments;
141-21 (8) cost estimates for relieving housing cost burdens
141-22 for extremely low, very low, and low income households in each
141-23 region;
141-24 (9) an analysis of the market demand for housing by
141-25 extremely low, very low, and low income households;
141-26 (10) an analysis of the loans and private sector home
141-27 mortgage lending rates available to extremely low, very low, and
142-1 low income borrowers in each region;
142-2 (11) an analysis of the principal barriers to home
142-3 mortgage credit faced by extremely low, very low, and low income
142-4 borrowers; and
142-5 (12) the rate of subprime mortgage loan products in
142-6 home purchase, home repair, and home equity loans in each region.
142-7 (c) The assessment must provide a summary and conclusion
142-8 regarding the adequacy of existing housing and lending programs to
142-9 meet the affordable housing needs of each region.
142-10 (d) In making the assessment required by this subchapter,
142-11 the department shall use the most current data available from the
142-12 United States Census Bureau, the United States Department of
142-13 Housing and Urban Development, and federal and state banking
142-14 regulatory agencies.
142-15 (e) In making the assessment required by this subchapter,
142-16 the department shall project the affordable housing needs of each
142-17 region as of the end of each five-year period occurring between
142-18 September 1, 2001, and September 1, 2021, and as of September 1,
142-19 2031. The projection of affordable housing needs under this
142-20 subsection must include a projection of the costs and nature of the
142-21 affordable housing that will be needed in the future, including any
142-22 special need for single-family or multifamily housing.
142-23 Sec. 2306.883. FUNDING. The department may use any available
142-24 revenue, including legislative appropriations, to make the
142-25 assessment required by this subchapter.
142-26 Sec. 2306.884. CONTRACTUAL AUTHORITY. The department may
142-27 contract with a research center, a public senior college or
143-1 university, or a component of a public senior college or
143-2 university, including the Lyndon B. Johnson School of Public
143-3 Affairs, to make the assessment required by this subchapter.
143-4 Sec. 2306.885. REPORT. Not later than the 180th day after
143-5 the date the relevant information is released by the United States
143-6 Census Bureau, the department shall submit a report to the
143-7 governor, the lieutenant governor, and the legislature detailing
143-8 the department's findings on the present and future affordable
143-9 housing needs of the regions of this state.
143-10 Sec. 2306.886. EXPIRATION DATE. This subchapter expires
143-11 October 1, 2004.
143-12 ARTICLE 10
143-13 SECTION 10.01. Section 1372.022, Government Code, is amended
143-14 by amending Subsection (b) and adding Subsection (c) to read as
143-15 follows:
143-16 (b) If the state ceiling is computed on the basis of $75 per
143-17 capita or a greater amount, before August 15 of each year:
143-18 (1) 29.6 percent of the state ceiling is available
143-19 exclusively for reservations by issuers of qualified mortgage
143-20 bonds;
143-21 (2) 8 percent of the state ceiling is available
143-22 exclusively for reservations by issuers of state-voted issues;
143-23 (3) 4.6 percent of the state ceiling is available
143-24 exclusively for reservations by issuers of qualified small issue
143-25 bonds and enterprise zone facility bonds;
143-26 (4) 23 percent of the state ceiling is available
143-27 exclusively for reservations by issuers of qualified residential
144-1 rental project bonds;
144-2 (5) 8.8 percent of the state ceiling is available
144-3 exclusively for reservations by issuers of qualified student loan
144-4 bonds authorized by Section 53.47, Education Code; and
144-5 (6) 26 percent of the state ceiling is available
144-6 exclusively for reservations by any other issuer of bonds that
144-7 require an allocation.
144-8 (c) On and after August 15 but before September 1, that
144-9 portion of the state ceiling available for reservations becomes
144-10 available for qualified residential rental project issues in the
144-11 manner described by Section 1372.0321. On and after September 1,
144-12 that portion of the state ceiling available for reservations
144-13 becomes available to any issuer for any bonds that require an
144-14 allocation, subject to the provisions of this subchapter.
144-15 SECTION 10.02. Subchapter B, Chapter 1372, Government Code,
144-16 is amended by adding Section 1372.0231 to read as follows:
144-17 Sec. 1372.0231. DEDICATION OF PORTION OF STATE CEILING
144-18 AVAILABLE FOR QUALIFIED RESIDENTIAL RENTAL PROJECT BONDS. (a)
144-19 Until August 15, of that portion of the state ceiling that is
144-20 available exclusively for reservations by issuers of qualified
144-21 residential rental project bonds:
144-22 (1) 25 percent is available exclusively to the Texas
144-23 Department of Housing and Community Affairs in the manner described
144-24 by Subsection (b); and
144-25 (2) 75 percent is available exclusively to housing
144-26 finance corporations in the manner described by Subsections
144-27 (c)-(f).
145-1 (b) With respect to the amount of the state ceiling set
145-2 aside under Subsection (a)(1), the board shall grant reservations:
145-3 (1) in the order determined by the board by lot; and
145-4 (2) in a manner that ensures that:
145-5 (A) the set-aside amount is used for proposed
145-6 projects that are located throughout the state; and
145-7 (B) not more than 50 percent of the set-aside
145-8 amount is used for proposed projects that are located in qualified
145-9 census tracts as defined by Section 143(j), Internal Revenue Code
145-10 of 1986.
145-11 (c) With respect to the amount of the state ceiling set
145-12 aside under Subsection (a)(2), the board shall grant reservations
145-13 in a manner that ensures that not more than 50 percent of the
145-14 set-aside amount is used for proposed projects that are located in
145-15 qualified census tracts as defined by Section 143(j), Internal
145-16 Revenue Code of 1986.
145-17 (d) Before June 1, the board shall apportion the amount of
145-18 the state ceiling set aside under Subsection (a)(2) among the
145-19 uniform state service regions according to the percentage of the
145-20 state's population that resides in each of those regions.
145-21 (e) For the uniform state service regions containing Austin,
145-22 Dallas, and Houston, the board shall additionally apportion the
145-23 amount of the state ceiling set aside for each of those regions
145-24 under Subsection (d) within the region according to the percentage
145-25 of the region's population that resides in a metropolitan
145-26 statistical area and the percentage of the region's population that
145-27 resides outside of a metropolitan statistical area.
146-1 (f) In each area described by Subsection (d) or (e), the
146-2 board shall grant reservations based on the priority levels of
146-3 proposed projects as described by Section 1372.032.
146-4 (g) On or after June 1, the board may not grant available
146-5 reservations to housing finance corporations described by
146-6 Subsection (a) based on uniform state service regions or any
146-7 segments of those regions.
146-8 SECTION 10.03. Section 1372.026(a), Government Code, is
146-9 amended to read as follows:
146-10 (a) The maximum amount of the state ceiling that may be
146-11 reserved before August 15 [September 1] by a housing finance
146-12 corporation for the issuance of qualified mortgage bonds may not
146-13 exceed the amount computed as follows [by multiplying the local
146-14 population of the corporation by]:
146-15 (1) [$50,] if the local population of the housing
146-16 finance corporation is 300,000 or more, $22.5 million plus the
146-17 product of the amount by which the local population exceeds 300,000
146-18 multiplied by $11.25;
146-19 (2) [$75,] if the local population of the housing
146-20 finance corporation is 200,000 or more but less than 300,000, $20
146-21 million plus the product of the amount by which the local
146-22 population exceeds 200,000 multiplied by $22.5;
146-23 (3) [$100,] if the local population of the housing
146-24 finance corporation is 100,000 or more but less than 200,000, $15
146-25 million plus the product of the amount by which the local
146-26 population exceeds 100,000 multiplied by $50; or
146-27 (4) [$150,] if the local population of the housing
147-1 finance corporation is less than 100,000, the product of the local
147-2 population multiplied by $150.
147-3 SECTION 10.04. Subchapter B, Chapter 1372, Government Code,
147-4 is amended by adding Section 1372.0261 to read as follows:
147-5 Sec. 1372.0261. FAILURE OF HOUSING FINANCE CORPORATION TO
147-6 USE AMOUNT OF STATE CEILING ALLOCATED. (a) In this section,
147-7 "utilization percentage" means that portion of the amount of the
147-8 state ceiling allocated to a housing finance corporation with
147-9 respect to which the corporation issues private activity bonds that
147-10 result in mortgage loans or mortgage credit certificates. A
147-11 housing finance corporation's utilization percentage for an
147-12 allocation of the state ceiling is the quotient of:
147-13 (1) the amount of the state ceiling used to purchase
147-14 mortgages or mortgage-backed securities or the amount of the state
147-15 ceiling used to issue mortgage credit certificates; divided by
147-16 (2) the amount of the state ceiling allocated, minus
147-17 any amounts of the state ceiling required for debt service reserve
147-18 funds.
147-19 (b) If a housing finance corporation's issue of bonds uses a
147-20 new allocation of the state ceiling in combination with taxable
147-21 bond proceeds or with bond proceeds recycled from previous
147-22 allocations of the state ceiling, the first loans or certificates
147-23 financed are considered in computing the utilization percentage of
147-24 the new allocation of the state ceiling.
147-25 (c) If a housing finance corporation's utilization
147-26 percentage is less than 95 percent, the next time the corporation
147-27 becomes eligible for a reservation of the state ceiling, the
148-1 maximum amount of the state ceiling that may be reserved for the
148-2 corporation is equal to the amount for which the corporation would
148-3 otherwise be eligible under Section 1372.026 multiplied by the
148-4 utilization percentage of the corporation's last bond issue that
148-5 used an allocation of the state ceiling.
148-6 (d) A housing finance corporation may not be penalized under
148-7 Subsection (c) if:
148-8 (1) the corporation fails to use:
148-9 (A) bond proceeds recycled from previous
148-10 allocations of the state ceiling; or
148-11 (B) taxable bond proceeds; or
148-12 (2) as the result of an issuance of bonds, the
148-13 corporation's utilization percentage is 95 percent or greater.
148-14 SECTION 10.05. Section 1372.031, Government Code, is amended
148-15 to read as follows:
148-16 Sec. 1372.031. PRIORITIES FOR RESERVATIONS AMONG CERTAIN
148-17 ISSUERS. If, on or before October 20, more than one issuer in a
148-18 category described by Section 1372.022(a)(2), (3), [(4),] or (6)
148-19 applies for a reservation of the state ceiling for the next program
148-20 year, the board shall grant reservations in that category in the
148-21 order determined by the board by lot.
148-22 SECTION 10.06. The heading to Section 1372.032, Government
148-23 Code, is amended to read as follows:
148-24 Sec. 1372.032. PRIORITIES FOR RESERVATIONS AMONG ISSUERS OF
148-25 QUALIFIED MORTGAGE BONDS [HOUSING FINANCE CORPORATIONS].
148-26 SECTION 10.07. (a) Subchapter B, Chapter 1372, Government
148-27 Code, is amended to conform to Section 2, Chapter 131, Acts of the
149-1 76th Legislature, Regular Session, 1999, by adding Section
149-2 1372.0321 and is further amended to read as follows:
149-3 Sec. 1372.0321. PRIORITIES FOR RESERVATIONS AMONG ISSUERS OF
149-4 QUALIFIED RESIDENTIAL RENTAL PROJECT ISSUES. (a) In granting
149-5 reservations to issuers of qualified residential rental project
149-6 issues, the board shall:
149-7 (1) give first priority to:
149-8 (A) projects in which 100 percent of the
149-9 residential units in the projects are under the restriction that
149-10 the maximum allowable rents are an amount equal to 30 percent of 50
149-11 percent of the area median family income minus an allowance for
149-12 utility costs authorized under the federal low-income housing tax
149-13 credit program; and
149-14 (B) on or after June 1, projects that are
149-15 located in counties, metropolitan statistical areas, or primary
149-16 metropolitan statistical areas with area median family incomes at
149-17 or below the statewide median family income established by the
149-18 United States Department of Housing and Urban Development;
149-19 (2) give second priority to projects in which 100
149-20 percent of the residential units in the projects are under the
149-21 restriction that the maximum allowable rents are an amount equal to
149-22 30 percent of 60 percent of the area median family income minus an
149-23 allowance for utility costs authorized under the federal low-income
149-24 housing tax credit program; and
149-25 (3) give third priority to any other qualified
149-26 residential rental project.
149-27 (b) The board may not reserve a portion of the state ceiling
150-1 for a first or second priority project described by Subsection (a)
150-2 unless the board receives evidence that an application has been
150-3 filed with the Texas Department of Housing and Community Affairs
150-4 for the low-income housing tax credit that is available for
150-5 multifamily transactions that are at least 51 percent financed by
150-6 tax-exempt private activity bonds.
150-7 (b) Section 2, Chapter 131, Acts of the 76th Legislature,
150-8 Regular Session, 1999, is repealed.
150-9 SECTION 10.08. Section 1372.042(c), Government Code, is
150-10 amended to read as follows:
150-11 (c) Notwithstanding Subsections (a) and (b), if the 120-day
150-12 period or the 180-day period, as applicable, expires on or after
150-13 December 24 of the year in which the reservation was granted, the
150-14 issuer shall close on the bonds before December 24, except that if
150-15 the applicable period expires after December 31 of that year, the
150-16 issuer may notify the board in writing before December 24 of the
150-17 issuer's election to carry forward the reservation and of the
150-18 issuer's expected bond closing date. In compliance with the
150-19 requirements of Section 146(f), Internal Revenue Code of 1986, the
150-20 board shall file in a timely manner a carryforward election with
150-21 respect to any bonds expected to close after December 31 to permit
150-22 the bonds to close by the expected date, except that the board may
150-23 not file the carryforward election after February 15 of the year
150-24 following the year in which the reservation was granted. The grant
150-25 of the reservation for the balance of the 120-day period or the
150-26 180-day period, as applicable, is automatically and immediately
150-27 reinstated on the board's filing of a carryforward election with
151-1 respect to the reservation [the issuer shall close on the bonds
151-2 before December 24].
151-3 SECTION 10.09. Sections 1372.061 and 1372.062, Government
151-4 Code, are amended to read as follows:
151-5 Sec. 1372.061. DESIGNATION BY BOARD OF CERTAIN AMOUNTS OF
151-6 STATE CEILING AS CARRYFORWARD. (a) The board may designate as
151-7 carryforward:
151-8 (1) the amount of the state ceiling that is not
151-9 reserved before December 15; and
151-10 (2) any amount of the state ceiling that:
151-11 (A) was reserved before December 15; and
151-12 (B) becomes available on or after that date
151-13 because of the cancellation of a reservation.
151-14 (b) The board shall designate as carryforward a reservation
151-15 amount for which the board receives written notice from an issuer
151-16 of an election to carry forward the reservation under Section
151-17 1372.042(c) if the bonds relating to the reservation are not
151-18 required to close by December 31 of the year in which the
151-19 reservation was granted.
151-20 Sec. 1372.062. PRIORITY CLASSIFICATIONS OF CARRYFORWARD
151-21 DESIGNATIONS. (a) The board shall:
151-22 (1) designate amounts as carryforward in accordance
151-23 with the system of priority classifications specified in Sections
151-24 1372.063-1372.068; and
151-25 (2) in each classification, make the designations in
151-26 order of the application [applications] for those designations.
151-27 (b) Notwithstanding Subsection (a), the board shall
152-1 designate in compliance with the requirements of Section 146(f),
152-2 Internal Revenue Code of 1986, a carryforward relating to an
152-3 issuer's written election under Section 1372.042(c) according to
152-4 the category of bonds to which the reservation subject to the
152-5 carryforward relates.
152-6 SECTION 10.10. (a) In accordance with Section 311.031(c),
152-7 Government Code, which gives effect to a substantive amendment
152-8 enacted by the same legislature that codifies the amended statute,
152-9 the text of Section 1372.022(b), Government Code, as set out in
152-10 this Act, gives effect to changes made by Chapter 131, Acts of the
152-11 76th Legislature, Regular Session, 1999.
152-12 (b) To the extent of any conflict, the changes in law made
152-13 by this Act to Chapter 1372, Government Code, prevail over another
152-14 Act of the 77th Legislature, Regular Session, 2001, relating to
152-15 nonsubstantive additions to and corrections in enacted codes.
152-16 SECTION 10.11. Section 1372.0261, Government Code, as added
152-17 by this Act, applies only to a reservation of the state ceiling
152-18 granted on or after January 1, 2002.
152-19 ARTICLE 11
152-20 SECTION 11.01. This Act takes effect September 1, 2001.