1-1 By: Lucio, Zaffirini S.B. No. 322
1-2 (In the Senate - Filed March 9, 2001; March 14, 2001, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 17, 2001, reported adversely, with favorable
1-5 Committee Substitute; April 24, 2001, recommitted to Committee on
1-6 Intergovernmental Relations; May 7, 2001, reported adversely, with
1-7 favorable Committee Substitute by the following vote: Yeas 5, Nays
1-8 0; May 7, 2001, sent to printer.)
1-9 COMMITTEE SUBSTITUTE FOR S.B. No. 322 By: Lindsay
1-10 A BILL TO BE ENTITLED
1-11 AN ACT
1-12 relating to the continuation and functions of the Texas Department
1-13 of Housing and Community Affairs and to other matters relating to
1-14 housing or community development, including the creation of the
1-15 Manufactured Housing Board and the Office of Rural Community
1-16 Affairs.
1-17 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-18 ARTICLE 1
1-19 SECTION 1.01. Section 2306.001, Government Code, is amended
1-20 to read as follows:
1-21 Sec. 2306.001. PURPOSES. The purposes of the department are
1-22 to:
1-23 (1) assist local governments in:
1-24 (A) providing essential public services for
1-25 their residents; and
1-26 (B) overcoming financial, social, and
1-27 environmental problems;
1-28 (2) provide for the housing needs of individuals and
1-29 families of low and very low income and families of moderate
1-30 income;
1-31 (3) contribute to the preservation, development, and
1-32 redevelopment of neighborhoods and communities, including
1-33 cooperation in the preservation of government-assisted housing
1-34 occupied by individuals and families of very low and extremely low
1-35 income;
1-36 (4) assist the governor and the legislature in
1-37 coordinating federal and state programs affecting local government;
1-38 [and]
1-39 (5) inform state officials and the public of the needs
1-40 of local government; and
1-41 (6) serve as a source of information to the public
1-42 regarding all affordable housing resources and community support
1-43 services in the state.
1-44 SECTION 1.02. Subsection (b), Section 2306.021, Government
1-45 Code, is amended to read as follows:
1-46 (b) The department is composed of:
1-47 (1) the community affairs division;
1-48 (2) the housing finance division;
1-49 (3) the manufactured housing division; and
1-50 (4) [the community development division; and]
1-51 [(5)] any other division created by the director under
1-52 Section 2306.0521.
1-53 SECTION 1.03. Subchapter B, Chapter 2306, Government Code,
1-54 is amended by amending Sections 2306.022, 2306.024, 2306.025,
1-55 2306.027, 2306.033, 2306.034, and 2306.035 and adding Section
1-56 2306.028 to read as follows:
1-57 Sec. 2306.022. APPLICATION OF SUNSET ACT. The Texas
1-58 Department of Housing and Community Affairs is subject to Chapter
1-59 325 (Texas Sunset Act). Unless continued in existence as provided
1-60 by that chapter, the department is abolished and this chapter
1-61 expires September 1, 2003 [2001].
1-62 Sec. 2306.024. BOARD MEMBERS: APPOINTMENT AND COMPOSITION.
1-63 The board consists of seven public [nine] members appointed by the
1-64 governor.
2-1 Sec. 2306.025. TERMS OF BOARD MEMBERS. Members of the board
2-2 hold office for staggered terms of six years, with the terms of two
2-3 or three members expiring on January 31 of each odd-numbered year.
2-4 Sec. 2306.027. ELIGIBILITY. (a) The governor shall appoint
2-5 [make appointments] to the board public members who have a
2-6 demonstrated interest in issues related to housing and community
2-7 support services. A person appointed to the board must be a
2-8 registered voter in the state and may not hold another public
2-9 office [as follows:]
2-10 [(1) Place 1: an individual representing lending
2-11 institutions;]
2-12 [(2) Place 2: an individual representing local
2-13 government;]
2-14 [(3) Place 3: an individual representing housing
2-15 construction;]
2-16 [(4) Place 4: an individual representing
2-17 community-based nonprofit housing organizations;]
2-18 [(5) Place 5: an individual representing realtors or
2-19 housing developers;]
2-20 [(6) Place 6: an individual representing individuals
2-21 and families of low or very low income; and]
2-22 [(7) Places 7 through 9: public members].
2-23 (b) Appointments [Except as necessary to comply with the
2-24 requirements of Section 2306.026 regarding diversity, appointments]
2-25 to the board shall be made without regard to the race, color,
2-26 disability [handicap], sex, religion, age, or national origin of
2-27 the appointees and shall be made in a manner that produces
2-28 representation on the board of the different geographical regions
2-29 of this state. Appointments to the board must broadly reflect the
2-30 economic, cultural, and social diversity of the state, including
2-31 ethnic minorities, people with disabilities, and women.
2-32 (c) A person may not be a member of the board if the person
2-33 or the person's spouse:
2-34 (1) is employed by or participates in the management
2-35 of a business entity or other organization regulated by or
2-36 receiving money from the department;
2-37 (2) owns or controls, directly or indirectly, more
2-38 than a 10 percent interest in a business entity or other
2-39 organization regulated by or receiving money from the department;
2-40 or
2-41 (3) uses or receives a substantial amount of tangible
2-42 goods, services, or money from the department other than
2-43 compensation or reimbursement authorized by law for board
2-44 membership, attendance, or expenses [An elected or appointed
2-45 official of a political subdivision appointed to Place 2 on the
2-46 board is a member of the board as an additional or ex officio duty
2-47 required by the member's other official capacity, and the member's
2-48 service on the board is not dual office holding].
2-49 Sec. 2306.028. TRAINING. (a) A person who is appointed to
2-50 and qualifies for office as a member of the board may not vote,
2-51 deliberate, or be counted as a member in attendance at a meeting of
2-52 the board until the person completes a training program that
2-53 complies with this section.
2-54 (b) The training program must provide the person with
2-55 information regarding:
2-56 (1) the legislation that created the department and
2-57 the board;
2-58 (2) the programs operated by the department;
2-59 (3) the role and functions of the department;
2-60 (4) the rules of the department, with an emphasis on
2-61 the rules that relate to disciplinary and investigatory authority;
2-62 (5) the current budget for the department;
2-63 (6) the results of the most recent formal audit of the
2-64 department;
2-65 (7) the requirements of:
2-66 (A) the open meetings law, Chapter 551;
2-67 (B) the public information law, Chapter 552;
2-68 (C) the administrative procedure law, Chapter
2-69 2001; and
3-1 (D) other laws relating to public officials,
3-2 including conflict-of-interest laws;
3-3 (8) the requirements of:
3-4 (A) state and federal fair housing laws,
3-5 including Title VIII of the Civil Rights Act of 1968 (42 U.S.C.
3-6 Section 3601 et seq.) and the Fair Housing Amendments Act of 1988
3-7 (42 U.S.C. Section 3601 et seq.);
3-8 (B) the Civil Rights Act of 1964 (42 U.S.C.
3-9 Section 2000a et seq.);
3-10 (C) the Americans with Disabilities Act of 1990
3-11 (42 U.S.C. Section 12101 et seq.); and
3-12 (D) the Rehabilitation Act of 1973 (29 U.S.C.
3-13 Section 701 et seq.); and
3-14 (9) any applicable ethics policies adopted by the
3-15 department or the Texas Ethics Commission.
3-16 (c) A person appointed to the board is entitled to
3-17 reimbursement, as provided by the General Appropriations Act, for
3-18 the travel expenses incurred in attending the training program
3-19 regardless of whether the attendance at the program occurs before
3-20 or after the person qualifies for office.
3-21 Sec. 2306.033. REMOVAL OF MEMBERS. (a) It is a ground for
3-22 removal from the board that a member:
3-23 (1) does not have at the time of taking office
3-24 [appointment] the qualifications required by Section [2306.026,]
3-25 2306.027[, or 2306.028 for appointment to the board];
3-26 (2) does not maintain during [the] service on the
3-27 board the qualifications required by Section [2306.026,] 2306.027[,
3-28 or 2306.028 for appointment to the board];
3-29 (3) is ineligible for membership under [violates a
3-30 prohibition established by] Section 2306.027(c), 2306.034, or
3-31 2306.035;
3-32 (4) cannot, because of illness or disability,
3-33 discharge the member's duties for a substantial part of the
3-34 member's term [for which the member is appointed because of illness
3-35 or disability];
3-36 (5) is absent from more than half of the regularly
3-37 scheduled board meetings [of the board] that the member is eligible
3-38 to attend during a calendar year without an excuse approved [unless
3-39 the absence is excused] by a majority vote of the board; or
3-40 (6) engages in misconduct or unethical or criminal
3-41 behavior.
3-42 (b) The validity of an action of the board is not affected
3-43 by the fact that it is taken when a ground for removal of a board
3-44 member exists.
3-45 (c) If the director has knowledge that a potential ground
3-46 for removal exists, the director shall notify the presiding officer
3-47 of the board of the potential ground. The presiding officer shall
3-48 then notify the governor and the attorney general that a potential
3-49 ground for removal exists. If the potential ground for removal
3-50 involves the presiding officer, the director shall notify the next
3-51 highest ranking officer of the board, who shall then notify the
3-52 governor and the attorney general that a potential ground for
3-53 removal exists.
3-54 Sec. 2306.034. DISQUALIFICATION OF MEMBERS AND CERTAIN
3-55 EMPLOYEES. (a) In [An employee or paid consultant of a Texas
3-56 trade association in the field of banking, real estate, housing
3-57 development, or housing construction may not be a member of the
3-58 board or an employee of the department who is exempt from the
3-59 state's position classification plan or is compensated at or above
3-60 the amount prescribed by the General Appropriations Act for step 1,
3-61 salary group 17, of the position classification salary schedule.]
3-62 [(b) For the purposes of] this section, [a] "Texas trade
3-63 association" means [is] a [nonprofit,] cooperative[,] and
3-64 voluntarily joined association of business or professional
3-65 competitors in this state designed to assist its members and its
3-66 industry or profession in dealing with mutual business or
3-67 professional problems and in promoting their common interest.
3-68 (b) A person may not be a member of the board and may not be
3-69 a department employee employed in a "bona fide executive,
4-1 administrative, or professional capacity," as that phrase is used
4-2 for purposes of establishing an exemption to the overtime
4-3 provisions of the federal Fair Labor Standards Act of 1938 (29
4-4 U.S.C. Section 201 et seq.), and its subsequent amendments, if:
4-5 (1) the person is an officer, employee, or paid
4-6 consultant of a Texas trade association in the field of banking,
4-7 real estate, housing development, or housing construction; or
4-8 (2) the person's spouse is an officer, manager, or
4-9 paid consultant of a Texas trade association in the field of
4-10 banking, real estate, housing development, or housing construction.
4-11 Sec. 2306.035. LOBBYIST RESTRICTION. A person may not be
4-12 [serve as] a member of the board or act as the director of the
4-13 department or the general counsel to the board or the department if
4-14 the person is required to register as a lobbyist under Chapter 305
4-15 because of the person's activities for compensation [in or] on
4-16 behalf of a profession related to the operation of the department.
4-17 SECTION 1.04. Subsection (a), Section 2306.030, Government
4-18 Code, is amended to read as follows:
4-19 (a) The governor shall designate a member of [appoint a
4-20 presiding officer from] the board as the presiding officer of the
4-21 board to serve in that capacity at the will of the governor
4-22 [members]. The presiding officer presides at meetings of the board
4-23 and performs other duties required by this chapter.
4-24 SECTION 1.05. Section 2306.032, Government Code, is amended
4-25 by adding Subsections (c) through (g) to read as follows:
4-26 (c) All materials in the possession of the department that
4-27 are relevant to a matter proposed for discussion at a board meeting
4-28 must be sent to interested parties, posted on the department's
4-29 website, made available in hard-copy format at the department,
4-30 filed with the secretary of state for publication by reference in
4-31 the Texas Register, and disseminated by any other means required by
4-32 this chapter or by Chapter 551.
4-33 (d) The materials described by Subsection (c) must be made
4-34 available to the public as required by Subsection (c) not later
4-35 than the seventh day before the date of the meeting. The board may
4-36 not consider at the meeting any material that is not made available
4-37 to the public by the date required by this subsection.
4-38 (e) The agenda for a board meeting must state each project
4-39 the staff is recommending for assistance by the department.
4-40 (f) For each item on the board's agenda at the meeting, the
4-41 board shall provide for public comment after the presentation made
4-42 by department staff and the motions made by the board on that
4-43 topic.
4-44 (g) The board shall adopt rules that give the public a
4-45 reasonable amount of time for testimony at meetings.
4-46 SECTION 1.06. Subchapter B, Chapter 2306, Government Code,
4-47 is amended by adding Section 2306.0321 to read as follows:
4-48 Sec. 2306.0321. APPEAL OF BOARD DECISIONS. (a) The board
4-49 shall adopt rules outlining a formal process for appealing board
4-50 decisions.
4-51 (b) The rules must specify the requirements for appealing a
4-52 board decision, including:
4-53 (1) the persons eligible to appeal;
4-54 (2) the grounds for an appeal;
4-55 (3) the process for filing an appeal, including the
4-56 information that must be submitted with an appeal;
4-57 (4) a reasonable period in which an appeal must be
4-58 filed, heard, and decided;
4-59 (5) the process by which an appeal is heard and a
4-60 decision is made;
4-61 (6) the possible outcomes of an appeal; and
4-62 (7) the process by which notification of a decision
4-63 and the basis for a decision is given.
4-64 SECTION 1.07. Subchapter C, Chapter 2306, Government Code,
4-65 is amended by adding Sections 2306.051, 2306.0521, and 2306.057 to
4-66 read as follows:
4-67 Sec. 2306.051. SEPARATION OF RESPONSIBILITIES. The board
4-68 shall develop and implement policies that clearly separate the
4-69 policy-making responsibilities of the board and the management
5-1 responsibilities of the director and staff of the department.
5-2 Sec. 2306.0521. ORGANIZATIONAL FLEXIBILITY OF DEPARTMENT.
5-3 (a) Notwithstanding Section 2306.021(b) or any other provision of
5-4 this chapter, the director, with the approval of the board, may:
5-5 (1) create divisions in addition to those listed in
5-6 Section 2306.021(b) and assign to the newly created divisions any
5-7 duties and powers imposed on or granted to an existing division or
5-8 the department generally;
5-9 (2) eliminate any division listed in Section
5-10 2306.021(b) or created under this section and assign any duties or
5-11 powers previously assigned to the eliminated division to another
5-12 division listed in Section 2306.021(b) or created under this
5-13 section; or
5-14 (3) eliminate all divisions listed in Section
5-15 2306.021(b) or created under this section and reorganize the
5-16 distribution of powers and duties granted to or imposed on a
5-17 division in any manner the director determines appropriate for the
5-18 proper administration of the department.
5-19 (b) This section does not apply to the manufactured housing
5-20 division.
5-21 Sec. 2306.057. COMPLIANCE ASSESSMENT REQUIRED FOR PROJECT
5-22 APPROVAL BY BOARD. (a) Before the board approves any project
5-23 application submitted under this chapter, the department, through
5-24 the division with responsibility for compliance matters, shall:
5-25 (1) assess:
5-26 (A) the compliance history of the applicant and
5-27 any affiliate of the applicant with respect to all applicable
5-28 requirements; and
5-29 (B) the compliance issues associated with the
5-30 proposed project; and
5-31 (2) provide to the board a written report regarding
5-32 the results of the assessments described by Subdivision (1).
5-33 (b) The written report described by Subsection (a)(2) must
5-34 be included in the appropriate project file for board and
5-35 department review.
5-36 (c) The board shall fully document and disclose any
5-37 instances in which the board approves a project application despite
5-38 any noncompliance associated with the project, applicant, or
5-39 affiliate.
5-40 SECTION 1.08. Section 2306.052, Government Code, is amended
5-41 by amending Subsection (c) and adding Subsection (e) to read as
5-42 follows:
5-43 (c) The director shall develop and implement the policies
5-44 established by the board that define the responsibilities of each[:]
5-45 [(1) the director, board, and staff of the department;
5-46 and]
5-47 [(2) the community affairs division, the housing
5-48 finance division, and any other] division in the department.
5-49 (e) The board shall adopt rules and the director shall
5-50 develop and implement a program to train employees on the public
5-51 information requirements of Chapter 552. The director shall
5-52 monitor the compliance of employees with those requirements.
5-53 SECTION 1.09. Subchapter D, Chapter 2306, Government Code,
5-54 is amended by amending Section 2306.061 and adding Sections
5-55 2306.0631 and 2306.081 to read as follows:
5-56 Sec. 2306.061. STANDARDS OF [INFORMATION ON QUALIFICATIONS
5-57 AND] CONDUCT. The director or the director's designee shall become
5-58 aware of and provide to members of the board [members] and to [the]
5-59 department employees, as often as necessary, information regarding
5-60 the requirements [about the director's, members', and employees':]
5-61 [(1) qualifications] for office or employment under
5-62 this chapter, including information regarding a person's[; and]
5-63 [(2)] responsibilities under applicable laws relating
5-64 to standards of conduct for state officers or employees.
5-65 Sec. 2306.0631. STATE EMPLOYEE INCENTIVE PROGRAM. The
5-66 director or the director's designee shall provide to department
5-67 employees information and training on the benefits and methods of
5-68 participation in the state employee incentive program under
5-69 Subchapter B, Chapter 2108.
6-1 Sec. 2306.081. PROJECT COMPLIANCE; DATABASE. (a) The
6-2 department, through the division responsible for compliance
6-3 matters, shall monitor for compliance with all applicable
6-4 requirements the entire construction phase associated with any
6-5 project under this chapter. The monitoring level for each project
6-6 must be based on the amount of risk associated with the project.
6-7 (b) After completion of a project's construction phase, the
6-8 department shall periodically review the performance of the project
6-9 to confirm the accuracy of the department's initial compliance
6-10 evaluation during the construction phase.
6-11 (c) The department shall use the division responsible for
6-12 credit underwriting matters and the division responsible for
6-13 compliance matters to determine the amount of risk associated with
6-14 each project.
6-15 (d) The department shall create an easily accessible
6-16 database that contains all project compliance information developed
6-17 under this chapter.
6-18 SECTION 1.10. Subsections (b) and (c), Section 2306.066,
6-19 Government Code, are amended to read as follows:
6-20 (b) The department shall maintain a [keep an information]
6-21 file on [about] each written complaint filed with the department
6-22 [that the department has authority to resolve]. The file must
6-23 include:
6-24 (1) the name of the person who filed the complaint;
6-25 (2) the date the complaint is received by the
6-26 department;
6-27 (3) the subject matter of the complaint;
6-28 (4) the name of each person contacted in relation to
6-29 the complaint;
6-30 (5) a summary of the results of the review or
6-31 investigation of the complaint; and
6-32 (6) an explanation of the reason the file was closed,
6-33 if the department closed the file without taking action other than
6-34 to investigate the complaint.
6-35 (c) The department shall provide to the person filing the
6-36 complaint and to each person who is a subject of the complaint a
6-37 copy of the department's policies and procedures relating to
6-38 complaint investigation and resolution. The [If a written
6-39 complaint is filed with the department that the department has
6-40 authority to resolve, the] department, at least quarterly [and]
6-41 until final disposition of the complaint, shall notify the person
6-42 filing the complaint and each person who is a subject of [parties
6-43 to] the complaint of the status of the investigation [complaint]
6-44 unless the notice would jeopardize an undercover investigation.
6-45 SECTION 1.11. Section 2306.0661, Government Code, is amended
6-46 to read as follows:
6-47 Sec. 2306.0661. PUBLIC HEARINGS. (a) Except as provided by
6-48 Subsection (b), this [This] section applies only to state-funded
6-49 housing programs, programs funded with bond proceeds, the low
6-50 income housing tax credit program, and the state low income housing
6-51 plan. Federally funded programs shall comply with the federal
6-52 public participation requirements and Chapter 2105, if applicable.
6-53 (b) The department shall encourage informed and effective
6-54 public participation in the department's programs and plans by
6-55 [through] holding, on at least an annual basis in each uniform
6-56 service region of the state, a consolidated public hearing in which
6-57 the board solicits and accepts public comments regarding the
6-58 following programs:
6-59 (1) the housing trust fund program;
6-60 (2) the HOME investment partnerships program;
6-61 (3) the single-family housing mortgage revenue bond
6-62 program;
6-63 (4) the multifamily housing mortgage revenue bond
6-64 program;
6-65 (5) the low income housing tax credit program;
6-66 (6) the low income energy assistance program;
6-67 (7) any other program in the consolidated plan
6-68 submitted to the United States Department of Housing and Urban
6-69 Development; and
7-1 (8) any other program in the state low income housing
7-2 plan [hearings and soliciting and accepting public comments during
7-3 those hearings].
7-4 (c) In holding a public hearing, the department shall ensure
7-5 that:
7-6 (1) the location of the hearing is:
7-7 (A) in a public building or facility accessible
7-8 to the public;
7-9 (B) accessible to persons with disabilities; and
7-10 (C) reasonably accessible by public
7-11 transportation, if available;
7-12 (2) hearings are scheduled at times when working and
7-13 nonworking people can attend; and
7-14 (3) child care is provided where practical.
7-15 (d) [(c)] In scheduling a public hearing, the department
7-16 shall:
7-17 (1) publish notice of the time, place, and subject of
7-18 the hearing in the Texas Register and a newspaper of general
7-19 circulation in the community in which the hearing is to be held at
7-20 least seven days before the date of the hearing. Whenever
7-21 practical, the department shall publish notice of the time, place,
7-22 and subject of the hearing in the Texas Register and a newspaper of
7-23 general circulation in the community in which the hearing is to be
7-24 held at least thirty days before the date of the hearing;
7-25 (2) provide notice of the hearing to each public
7-26 library, in the community in which the hearing is to be held, for
7-27 posting in a public area of the library;
7-28 (3) provide notice of the hearing to:
7-29 (A) each member of the board;
7-30 (B) each member of the advisory committee
7-31 consulted by the department during preparation of the state low
7-32 income housing plan; and
7-33 (C) each member of the legislature;
7-34 (4) [make a reasonable effort to inform interested
7-35 persons and organizations of the hearing;]
7-36 [(5)] make information about the hearing, including,
7-37 if appropriate, the qualified allocation plan, application forms
7-38 for a low income housing tax credit, and the state low income
7-39 housing plan, available on the Internet in accordance with
7-40 Subsection (e) and with Section 2306.077; and
7-41 (5) [(6)] provide an opportunity for persons to
7-42 transmit on the Internet written testimony or comments on a subject
7-43 of a hearing in accordance with rules adopted by the board.
7-44 (e) At least six weeks before the date of the hearing, all
7-45 materials in the possession of the department that are relevant to
7-46 a matter proposed for discussion at a consolidated public hearing
7-47 under this section must be sent to interested persons and
7-48 organizations, posted on the department's website, made available
7-49 in hard-copy format at the department, filed with the secretary of
7-50 state for publication by reference in the Texas Register, and
7-51 disseminated by any other means required by this chapter or by
7-52 Chapter 551.
7-53 SECTION 1.12. Section 2306.067, Government Code, is amended
7-54 by adding Subsection (d) to read as follows:
7-55 (d) The director may enter into an agreement with the
7-56 manufactured housing division to loan or assign department
7-57 employees, equipment, and facilities to that division.
7-58 SECTION 1.13. Section 2306.0721, Government Code, is amended
7-59 by amending Subsection (c) and adding Subsection (f) to read as
7-60 follows:
7-61 (c) The plan must include:
7-62 (1) an estimate and analysis of the housing needs of
7-63 the following populations in each uniform [the] state service
7-64 region:
7-65 (A) individuals and families of moderate, low,
7-66 and very low income;
7-67 (B) individuals with special needs; and
7-68 (C) homeless individuals;
7-69 (2) a proposal to use all available housing resources
8-1 to address the housing needs of the populations described by
8-2 Subdivision (1) by establishing funding levels for all
8-3 housing-related programs;
8-4 (3) an estimate of the number of federally assisted
8-5 housing units available for individuals and families of low and
8-6 very low income and individuals with special needs in each uniform
8-7 state service region [county];
8-8 (4) a description of state programs that govern the
8-9 use of all available housing resources;
8-10 (5) a resource allocation plan that targets all
8-11 available housing resources to individuals and families of low and
8-12 very low income and individuals with special needs in each uniform
8-13 state service region;
8-14 (6) a description of the department's efforts to
8-15 monitor and analyze the unused or underused federal resources of
8-16 other state agencies for housing-related services and services for
8-17 homeless individuals and the department's recommendations to ensure
8-18 the full use by the state of all available federal resources for
8-19 those services in each uniform state service region;
8-20 (7) strategies to provide housing for individuals and
8-21 families with special needs in each uniform state service region;
8-22 (8) a description of the department's efforts to
8-23 encourage in each uniform state service region the construction of
8-24 housing units that incorporate energy efficient construction and
8-25 appliances; [and]
8-26 (9) an estimate and analysis of the housing supply in
8-27 each uniform state service region;
8-28 (10) an inventory of all publicly and, where possible,
8-29 privately funded housing resources, including public housing
8-30 authorities, housing finance corporations, community housing
8-31 development organizations, and community action agencies;
8-32 (11) strategies for meeting rural housing needs;
8-33 (12) information on the demand for contract-for-deed
8-34 conversions, services from self-help centers, consumer education,
8-35 and other colonia resident services in counties some part of which
8-36 is within 150 miles of the international border of this state;
8-37 (13) a summary of public comments received at a
8-38 hearing under this chapter or from another source that concern the
8-39 demand for colonia resident services described by Subdivision (12);
8-40 and
8-41 (14) any other housing-related information that the
8-42 state is required to include in the one-year action plan of the
8-43 consolidated plan submitted annually to the United States
8-44 Department of Housing and Urban Development.
8-45 (f) The director may subdivide the uniform state service
8-46 regions as necessary for purposes of the state low income housing
8-47 plan.
8-48 SECTION 1.14. Section 2306.0722, Government Code, is amended
8-49 to read as follows:
8-50 Sec. 2306.0722. PREPARATION OF PLAN AND REPORT. (a) Before
8-51 preparing the annual low income housing report under Section
8-52 2306.072 and the state low income housing plan under Section
8-53 2306.0721, the department shall meet with regional planning
8-54 commissions created under Chapter 391, Local Government Code,
8-55 representatives of groups with an interest in low income housing,
8-56 nonprofit housing organizations, managers, owners, and developers
8-57 of affordable housing, local government officials, and residents of
8-58 low income housing. The department shall obtain the comments and
8-59 suggestions of the representatives, officials, and residents about
8-60 the prioritization and allocation of the department's resources in
8-61 regard to housing.
8-62 (b) In preparing the annual report under Section 2306.072
8-63 and the state low income housing plan under Section 2306.0721, the
8-64 director shall:
8-65 (1) coordinate local, state, and federal housing
8-66 resources, including tax exempt housing bond financing and low
8-67 income housing tax credits;
8-68 (2) set priorities for the available housing resources
8-69 to help the neediest individuals;
9-1 (3) evaluate the success of publicly supported housing
9-2 programs;
9-3 (4) survey and identify the unmet housing needs of
9-4 individuals the department is required to assist;
9-5 (5) ensure that housing programs benefit an individual
9-6 without regard to the individual's race, ethnicity, sex, or
9-7 national origin;
9-8 (6) develop housing opportunities for individuals and
9-9 families of low and very low income and individuals with special
9-10 housing needs;
9-11 (7) develop housing programs through an open, fair,
9-12 and public process;
9-13 (8) set priorities for assistance in a manner that is
9-14 appropriate and consistent with the housing needs of the
9-15 populations described by Section 2306.0721(c)(1);
9-16 (9) incorporate recommendations that are consistent
9-17 with the consolidated plan submitted annually by the state to the
9-18 United States Department of Housing and Urban Development;
9-19 (10) identify the organizations and individuals
9-20 consulted by the department in preparing the annual report and
9-21 state low income housing plan and summarize and incorporate
9-22 comments and suggestions provided under Subsection (a) as the board
9-23 determines to be appropriate;
9-24 (11) develop a plan to respond to changes in federal
9-25 funding and programs for the provision of affordable housing; [and]
9-26 (12) use the following standardized categories to
9-27 describe the income of program applicants and beneficiaries:
9-28 (A) 0 to 30 percent of area median income
9-29 adjusted for family size;
9-30 (B) more than 30 to 60 percent of area median
9-31 income adjusted for family size;
9-32 (C) more than 60 to 80 percent of area median
9-33 income adjusted for family size;
9-34 (D) more than 80 to 115 percent of area median
9-35 income adjusted for family size; or
9-36 (E) more than 115 percent of area median income
9-37 adjusted for family size; and
9-38 (13) use the most recent census data combined with
9-39 existing data from local housing and community service providers in
9-40 the state, including public housing authorities, housing finance
9-41 corporations, community housing development organizations, and
9-42 community action agencies.
9-43 SECTION 1.15. Subsection (a), Section 2306.0723, Government
9-44 Code, is amended to read as follows:
9-45 (a) The department shall hold public hearings on the annual
9-46 state low income housing plan and report before the director
9-47 submits the report and the plan to the board. [Public hearings
9-48 shall be held in Dallas or Fort Worth, El Paso, Houston, San
9-49 Antonio, the Lower Rio Grande Valley, and at least two additional
9-50 municipalities selected by the department to represent
9-51 geographically diverse communities.] The department shall provide
9-52 notice of the public hearings as required by Section 2306.0661.
9-53 The published notice must include a summary of the report and plan.
9-54 The department shall accept comments on the report and plan at the
9-55 public hearings and for at least 30 days after the date of the
9-56 publication of the notice of the hearings.
9-57 SECTION 1.16. Section 2306.111, Government Code, is amended
9-58 by amending Subsection (d) and adding Subsections (g) and (h) to
9-59 read as follows:
9-60 (d) The department shall allocate housing funds provided to
9-61 the state under the Cranston-Gonzalez National Affordable Housing
9-62 Act (42 U.S.C. Section 12701 et seq.), housing trust funds
9-63 administered by the department under Sections 2306.201-2306.206,
9-64 and commitments issued under the federal low income housing tax
9-65 credit program administered by the department under Sections
9-66 2306.671-2306.678 to each uniform state service region based on a
9-67 formula developed by the department that is based on the need for
9-68 housing assistance and the availability of housing resources,
9-69 provided that the allocations are consistent with applicable
10-1 federal and state requirements and limitations. The department
10-2 shall use the information contained in its annual state low income
10-3 housing plan to develop the formula. If the department determines
10-4 under the formula that an insufficient number of eligible
10-5 applications for assistance out of funds or credits allocable under
10-6 this subsection are submitted to the department from a particular
10-7 uniform state service region, the department shall use the unused
10-8 funds or credits allocated to that region for all other regions
10-9 based on identified need and financial feasibility.
10-10 (g) For each uniform state service region, the department
10-11 shall establish funding priorities to ensure that:
10-12 (1) funds are awarded to project applicants who are
10-13 best able to meet recognized needs for affordable housing, as
10-14 determined by the department;
10-15 (2) when practicable, the least restrictive funding
10-16 sources are used to serve the lowest income residents; and
10-17 (3) funds are awarded based on a project applicant's
10-18 ability to:
10-19 (A) provide the greatest number of residential
10-20 units;
10-21 (B) serve persons with the lowest percent area
10-22 median family income;
10-23 (C) extend the duration of the project to serve
10-24 a continuing public need; and
10-25 (D) use other funding sources to minimize the
10-26 amount of subsidy needed to complete the project.
10-27 (h) The department by rule shall adopt a policy providing
10-28 for the reallocation of financial assistance administered by the
10-29 department, including financial assistance related to bonds issued
10-30 by the department, if the department's obligation with respect to
10-31 that assistance is prematurely terminated.
10-32 SECTION 1.17. Subchapter F, Chapter 2306, Government Code,
10-33 is amended by adding Sections 2306.1111, 2306.1112, and 2306.1113
10-34 to read as follows:
10-35 Sec. 2306.1111. UNIFORM APPLICATION AND FUNDING CYCLE.
10-36 (a) Notwithstanding any other state law and to the extent
10-37 consistent with federal law, the department shall establish a
10-38 uniform application and funding cycle for multifamily housing
10-39 programs administered by the department under this chapter.
10-40 (b) Wherever possible, the department shall use uniform
10-41 threshold requirements for multifamily housing program
10-42 applications, including uniform threshold requirements relating to
10-43 market studies and environmental reports.
10-44 Sec. 2306.1112. EXECUTIVE AWARD AND REVIEW ADVISORY
10-45 COMMITTEE. (a) The department shall establish an executive award
10-46 and review advisory committee to make recommendations to the board
10-47 regarding funding and allocation decisions.
10-48 (b) The advisory committee is composed of the administrator
10-49 of each of the department's programs and one representative from
10-50 each of the department's planning, underwriting, and compliance
10-51 functions.
10-52 (c) The advisory committee shall develop the funding
10-53 priorities required by Section 2306.111(g) and shall make funding
10-54 and allocation recommendations to the board based on the ability of
10-55 applicants to meet those priorities.
10-56 (d) The advisory committee is not subject to Chapter 2110.
10-57 Sec. 2306.1113. EX-PARTE COMMUNICATIONS. (a) During the
10-58 period beginning on the date a project application is filed and
10-59 ending on the date the board makes a final decision with respect to
10-60 any approval of that application, the following persons are
10-61 prohibited from communicating with a member of the board:
10-62 (1) the applicant or a related party, as defined by
10-63 board rules; and
10-64 (2) any person who is:
10-65 (A) active in the construction, rehabilitation,
10-66 ownership, or control of the proposed project, including:
10-67 (i) a general partner or contractor; and
10-68 (ii) a principal or affiliate of a general
10-69 partner or contractor; or
11-1 (B) employed as a lobbyist by the applicant or a
11-2 related party.
11-3 (b) Notwithstanding Subsection (a), a person described by
11-4 that subsection may communicate with a board member at any board
11-5 meeting or public hearing held with respect to the application.
11-6 SECTION 1.18. Section 2306.149, Government Code, is amended
11-7 to read as follows:
11-8 Sec. 2306.149. APPROVED MORTGAGE LENDERS. The board shall
11-9 have the specific duty and power to compile a list of approved
11-10 mortgage lenders. The board shall not approve a mortgage lender
11-11 that requires mandatory arbitration for home loans.
11-12 SECTION 1.19. Subchapter H, Chapter 2306, Government Code,
11-13 is amended by adding Section 2306.1711 to read as follows:
11-14 Sec. 2306.1711. RULEMAKING PROCEDURES FOR CERTAIN PROGRAMS.
11-15 (a) The department shall adopt rules outlining formal rulemaking
11-16 procedures for the low income housing tax credit program and the
11-17 multifamily housing mortgage revenue bond program in accordance
11-18 with Chapter 2001.
11-19 (b) The rules adopted under Subsection (a) must include:
11-20 (1) procedures for allowing interested parties to
11-21 petition the department to request the adoption of a new rule or
11-22 the amendment of an existing rule;
11-23 (2) notice requirements and deadlines for taking
11-24 certain actions; and
11-25 (3) a provision for a public hearing.
11-26 (c) The department shall provide for public input before
11-27 adopting rules for programs with requests for proposals and notices
11-28 of funding availability.
11-29 SECTION 1.20. Section 2306.252, Government Code, is amended
11-30 by amending Subsection (b) and adding Subsections (d) through (g)
11-31 to read as follows:
11-32 (b) The department, through the center, shall:
11-33 (1) provide educational material prepared in plain
11-34 language to housing advocates, housing sponsors, borrowers, and
11-35 tenants;
11-36 (2) provide technical assistance to nonprofit housing
11-37 sponsors; [and]
11-38 (3) assist in the development of housing policy,
11-39 including the annual state low income housing plan and report and
11-40 the consolidated plan;
11-41 (4) maintain communication with local governments and
11-42 act as an advocate for local governments at the state and federal
11-43 levels;
11-44 (5) assist local governments with advisory and
11-45 technical services;
11-46 (6) provide financial aid to local governments and
11-47 combinations of local governments for programs that are authorized
11-48 to receive assistance;
11-49 (7) provide information about and referrals for state
11-50 and federal programs and services that affect local governments;
11-51 (8) administer, conduct, or jointly sponsor
11-52 educational and training programs for local government officials;
11-53 (9) conduct research on problems of general concern to
11-54 local governments;
11-55 (10) collect, publish, and distribute information
11-56 useful to local governments, including information on:
11-57 (A) local government finances and employment;
11-58 (B) housing;
11-59 (C) population characteristics; and
11-60 (D) land-use patterns;
11-61 (11) encourage cooperation among local governments as
11-62 appropriate;
11-63 (12) advise and inform the governor and the
11-64 legislature about the affairs of local governments and recommend
11-65 necessary action;
11-66 (13) assist the governor in coordinating federal and
11-67 state activities affecting local governments;
11-68 (14) administer, as appropriate:
11-69 (A) state responsibilities for programs created
12-1 under the federal Economic Opportunity Act of 1964 (42 U.S.C.
12-2 Section 2701 et seq.);
12-3 (B) programs assigned to the department under
12-4 the Omnibus Budget Reconciliation Act of 1981 (Pub. L. No. 97-35);
12-5 and
12-6 (C) other federal acts creating economic
12-7 opportunity programs assigned to the department;
12-8 (15) develop a consumer education program to educate
12-9 consumers on executory contract transactions for conveyance of real
12-10 property used or to be used as the consumer's residence;
12-11 (16) adopt rules that are necessary and proper to
12-12 carry out programs and responsibilities assigned by the legislature
12-13 or the governor; and
12-14 (17) perform other duties relating to local government
12-15 that are assigned by the legislature or the governor.
12-16 (d) The center shall serve as a housing and community
12-17 services clearinghouse to provide information to the public, local
12-18 communities, housing providers, and other interested parties
12-19 regarding:
12-20 (1) the performance of each department program;
12-21 (2) the number of people served;
12-22 (3) the income of people served;
12-23 (4) the funding amounts distributed;
12-24 (5) allocation decisions;
12-25 (6) regional impact of department programs; and
12-26 (7) any other relevant information.
12-27 (e) The center shall compile the department's reports into
12-28 an integrated format and shall compile and maintain a list of all
12-29 affordable housing resources in the state, organized by community.
12-30 (f) The information required under Subsections (d) and (e)
12-31 must be readily available in:
12-32 (1) a hard-copy format; and
12-33 (2) a user-friendly format on the department's
12-34 website.
12-35 (g) The center shall provide information regarding the
12-36 department's housing and community affairs programs to the Texas
12-37 Information and Referral Network for inclusion in the statewide
12-38 information and referral network as required by Section 531.0312.
12-39 SECTION 1.21. Subchapter K, Chapter 2306, Government Code,
12-40 is amended by adding Sections 2306.256 and 2306.257 to read as
12-41 follows:
12-42 Sec. 2306.256. AFFORDABLE HOUSING PRESERVATION PROGRAM.
12-43 (a) The department shall develop and implement a program to
12-44 preserve affordable housing in this state.
12-45 (b) Through the program, the department shall:
12-46 (1) maintain data on housing projected to lose its
12-47 affordable status;
12-48 (2) develop policies necessary to ensure the
12-49 preservation of affordable housing in this state;
12-50 (3) advise other program areas with respect to the
12-51 policies; and
12-52 (4) assist those other program areas in implementing
12-53 the policies.
12-54 Sec. 2306.257. APPLICANT COMPLIANCE WITH STATE AND FEDERAL
12-55 LAWS PROHIBITING DISCRIMINATION: CERTIFICATION AND MONITORING.
12-56 (a) The department may provide assistance through a housing
12-57 program under this chapter only to an applicant who certifies the
12-58 applicant's compliance with:
12-59 (1) state and federal fair housing laws, including
12-60 Title VIII of the Civil Rights Act of 1968 (42 U.S.C. Section 3601
12-61 et seq.), the Fair Housing Amendments Act of 1988 (42 U.S.C.
12-62 Section 3601 et seq.), and Chapter 301, Property Code;
12-63 (2) the Civil Rights Act of 1964 (42 U.S.C. Section
12-64 2000a et seq.);
12-65 (3) the Americans with Disabilities Act of 1990 (42
12-66 U.S.C. Section 12101 et seq.); and
12-67 (4) the Rehabilitation Act of 1973 (29 U.S.C. Section
12-68 701 et seq.).
12-69 (b) In conjunction with the state Commission on Human
13-1 Rights, the department shall adopt rules governing the
13-2 certification process described by this section, including rules
13-3 establishing:
13-4 (1) procedures for certifying compliance;
13-5 (2) methods for measuring continued compliance; and
13-6 (3) different degrees of sanctions for noncompliance
13-7 and reasonable periods for correcting noncompliance.
13-8 (c) Sanctions imposed under Subsection (b)(3) may:
13-9 (1) include a public reprimand, termination of
13-10 assistance, and a bar on future eligibility for assistance through
13-11 a housing program under this chapter; and
13-12 (2) be imposed in addition to any action taken by the
13-13 state Commission on Human Rights.
13-14 (d) The department shall promptly notify the state
13-15 Commission on Human Rights if the department determines that a
13-16 program participant may have failed to comply with the laws listed
13-17 by Subsection (a).
13-18 SECTION 1.22. Subsections (a), (a-1), and (b), Section
13-19 2306.358, Government Code, are amended to read as follows:
13-20 (a) Of the total qualified 501(c)(3) bonds issued under
13-21 Section 145 of the Internal Revenue Code of 1986 (26 U.S.C. Section
13-22 145) in each fiscal year, it is the express intent of the
13-23 legislature that the department shall allocate qualified 501(c)(3)
13-24 bonding authority as follows:
13-25 (1) [at least 50 percent of the total annual issuance
13-26 amount authorized through the memorandum of understanding provided
13-27 for in Subsection (b) of this section is reserved for the purposes
13-28 of new construction or acquisition with substantial rehabilitation;]
13-29 [(2)] not more than 25 percent of the total annual
13-30 issuance amount authorized through the memorandum of understanding
13-31 provided for in Subsection (b) [of this section] may be used for
13-32 projects in any one metropolitan area; and
13-33 (2) [(3)] at least 15 percent of the annual issuance
13-34 amount authorized through the memorandum of understanding provided
13-35 for in Subsection (b) [of this section] is reserved for projects in
13-36 rural areas.
13-37 (a-1) For the purposes of Subsection (a), "rural[:]
13-38 [(1) "Rural] area" and "metropolitan area" shall be
13-39 defined through the memorandum of understanding provided for in
13-40 Subsection (b) [of this section.]
13-41 [(2) "Substantial rehabilitation" means rehabilitation
13-42 of a project with a minimum of $5,000 of rehabilitation cost per
13-43 unit].
13-44 (b) A qualified 501(c)(3) bond may not be issued unless
13-45 approved by the Bond Review Board. In addition, the Bond Review
13-46 Board shall enter into a memorandum of understanding with the
13-47 department specifying the amount of bonds to be issued in each
13-48 fiscal year. The department and the Bond Review Board shall review
13-49 the memorandum of understanding annually to determine the specific
13-50 amount of bonds to be issued in each fiscal year. The Bond Review
13-51 Board may not approve a proposal to issue qualified 501(c)(3) bonds
13-52 unless they meet the requirements of this section, including the
13-53 memorandum of understanding, and all other laws that may apply.
13-54 SECTION 1.23. The heading to Subchapter Z, Chapter 2306,
13-55 Government Code, is amended to read as follows:
13-56 SUBCHAPTER Z. COLONIAS [COLONIA SELF-HELP CENTERS]
13-57 SECTION 1.24. Subchapter Z, Chapter 2306, Government Code,
13-58 is amended by amending Sections 2306.584 and 2306.585 and adding
13-59 Sections 2306.590 and 2306.591 to read as follows:
13-60 Sec. 2306.584. COLONIA RESIDENT ADVISORY COMMITTEE.
13-61 (a) The board [department] shall appoint not fewer than five
13-62 persons who are residents of colonias to serve on a colonia
13-63 resident [an] advisory committee. The members of the colonia
13-64 resident advisory committee shall be selected from lists of
13-65 candidates submitted to the board [department] by local nonprofit
13-66 organizations and the commissioners court of a county in which a
13-67 self-help center is located.
13-68 (b) The board [department] shall appoint one committee
13-69 member to represent each of the counties in which self-help centers
14-1 are located. Each committee member:
14-2 (1) must be a resident of a colonia in the county the
14-3 member represents; and
14-4 (2) may not be a board member, contractor, or employee
14-5 of or have any ownership interest in an entity that is awarded a
14-6 contract under this subchapter.
14-7 Sec. 2306.585. DUTIES OF COLONIA RESIDENT ADVISORY
14-8 COMMITTEE. (a) The colonia resident advisory committee shall
14-9 advise the board [department] regarding:
14-10 (1) the needs of colonia residents;
14-11 (2) appropriate and effective programs that are
14-12 proposed or are operated through the self-help centers; and
14-13 (3) activities that may be undertaken through the
14-14 self-help centers to better serve the needs of colonia residents.
14-15 (b) The colonia resident advisory committee shall meet
14-16 before the 30th day preceding the date on which a contract is
14-17 scheduled to be awarded for the operation of a self-help center and
14-18 may meet at other times.
14-19 Sec. 2306.590. COLONIA INITIATIVES ADVISORY COMMITTEE.
14-20 (a) The board shall establish a colonia initiatives advisory
14-21 committee that is composed of the following members appointed by
14-22 the board:
14-23 (1) one member who resides in a colonia;
14-24 (2) one member who represents a nonprofit organization
14-25 that provides assistance to colonia residents;
14-26 (3) one member who represents a local political
14-27 subdivision containing all or part of a colonia;
14-28 (4) one member who represents private interests in
14-29 banking or land development; and
14-30 (5) one member who represents the public.
14-31 (b) Each member of the colonia initiatives advisory
14-32 committee other than the public member must reside within 150 miles
14-33 of the international border of this state.
14-34 (c) The colonia initiatives advisory committee shall:
14-35 (1) review public comments regarding the colonia needs
14-36 assessment incorporated into the state low income housing plan
14-37 under Section 2306.0721; and
14-38 (2) based on those public comments, recommend to the
14-39 board new colonia programs or improvements to existing colonia
14-40 programs.
14-41 Sec. 2306.591. BIENNIAL ACTION PLAN. (a) The office
14-42 established by the department to promote initiatives for colonias
14-43 shall prepare a biennial action plan addressing policy goals for
14-44 colonia programs, strategies to meet the policy goals, and the
14-45 projected outcomes with respect to the policy goals.
14-46 (b) The office shall solicit public comments regarding the
14-47 plan at a public hearing. At least six weeks before the public
14-48 hearing, the office shall prepare and publish an initial draft of
14-49 the plan.
14-50 (c) After the public hearing, the office must publish a
14-51 final plan that:
14-52 (1) lists any changes made to the initial draft of the
14-53 plan that are based on public comments regarding the initial draft;
14-54 and
14-55 (2) directly addresses those public comments.
14-56 (d) The office shall send the final plan to the colonia
14-57 initiatives advisory committee for review and comment. After
14-58 receiving comments, the office shall send the plan to the board for
14-59 final approval, with the comments of the colonia initiatives
14-60 advisory committee attached to the plan.
14-61 SECTION 1.25. Subsection (c), Section 2306.589, Government
14-62 Code, is amended to read as follows:
14-63 (c) The department may use money in the colonia set-aside
14-64 fund for specific activities that assist colonias, including:
14-65 (1) the operation and activities of the self-help
14-66 centers established under this subchapter;
14-67 (2) reimbursement of colonia resident advisory
14-68 committee members and colonia initiatives advisory committee
14-69 members for their reasonable expenses in the manner provided by
15-1 Chapter 2110 [Article 6252-33, Revised Statutes,] or the General
15-2 Appropriations Act; and
15-3 (3) funding for the provision of water and sewer
15-4 service connections in accordance with Subsection (b).
15-5 SECTION 1.26. Subchapter AA, Chapter 2306, Government Code,
15-6 is amended to read as follows:
15-7 SUBCHAPTER AA. MANUFACTURED HOUSING DIVISION
15-8 Sec. 2306.6001 [2306.601]. DEFINITIONS. In this subchapter:
15-9 (1) "Division" means the manufactured housing
15-10 division.
15-11 (2) "Division director" means the executive director
15-12 of the division.
15-13 (3) "Manufactured Housing Board" means the governing
15-14 board of the division.
15-15 Sec. 2306.6002. REGULATION AND ENFORCEMENT. The department
15-16 shall administer and enforce the Texas Manufactured Housing
15-17 Standards Act (Article 5221f, Vernon's Texas Civil Statutes)
15-18 through the [manufactured housing] division. The Manufactured
15-19 Housing Board [board] and the division director shall exercise
15-20 authority and responsibilities assigned to them under that Act.
15-21 Sec. 2306.6003. MANUFACTURED HOUSING BOARD. (a) The
15-22 Manufactured Housing Board is an independent entity within the
15-23 department, is administratively attached to the department, and is
15-24 not an advisory body to the department.
15-25 (b) The Manufactured Housing Board shall carry out the
15-26 functions and duties conferred on the Manufactured Housing Board by
15-27 this subchapter and by other law.
15-28 Sec. 2306.6004. MANUFACTURED HOUSING BOARD MEMBERSHIP.
15-29 (a) The Manufactured Housing Board consists of five public members
15-30 appointed by the governor.
15-31 (b) A person is eligible to be appointed as a public member
15-32 of the Manufactured Housing Board if the person is a citizen of the
15-33 United States and a resident of this state.
15-34 (c) A person may not be a member of the Manufactured Housing
15-35 Board if the person or the person's spouse:
15-36 (1) is registered, certified, or licensed by a
15-37 regulatory agency in the field of manufactured housing;
15-38 (2) is employed by or participates in the management
15-39 of a business entity or other organization regulated by or
15-40 receiving money from the division;
15-41 (3) owns or controls, directly or indirectly, more
15-42 than a 10 percent interest in a business entity or other
15-43 organization regulated by or receiving money from the division; or
15-44 (4) uses or receives a substantial amount of tangible
15-45 goods, services, or money from the division other than compensation
15-46 or reimbursement authorized by law for Manufactured Housing Board
15-47 membership, attendance, or expenses.
15-48 (d) Appointments to the Manufactured Housing Board shall be
15-49 made without regard to the race, color, disability, sex, religion,
15-50 age, or national origin of the appointees.
15-51 Sec. 2306.6005. CONFLICT OF INTEREST. (a) In this section,
15-52 "Texas trade association" means a cooperative and voluntarily
15-53 joined association of business or professional competitors in this
15-54 state designed to assist its members and its industry or profession
15-55 in dealing with mutual business or professional problems and in
15-56 promoting their common interest.
15-57 (b) A person may not be a member of the Manufactured Housing
15-58 Board and may not be a division employee employed in a "bona fide
15-59 executive, administrative, or professional capacity," as that
15-60 phrase is used for purposes of establishing an exemption to the
15-61 overtime provisions of the federal Fair Labor Standards Act of 1938
15-62 (29 U.S.C. Section 201 et seq.), and its subsequent amendments, if:
15-63 (1) the person is an officer, employee, or paid
15-64 consultant of a Texas trade association in the field of
15-65 manufactured housing; or
15-66 (2) the person's spouse is an officer, manager, or
15-67 paid consultant of a Texas trade association in the field of
15-68 manufactured housing.
15-69 (c) A person may not be a member of the Manufactured Housing
16-1 Board or act as the general counsel to the Manufactured Housing
16-2 Board or the division if the person is required to register as a
16-3 lobbyist under Chapter 305 because of the person's activities for
16-4 compensation on behalf of a profession related to the operation of
16-5 the division.
16-6 Sec. 2306.6006. TERMS; VACANCY. (a) The members of the
16-7 Manufactured Housing Board serve staggered six-year terms, with the
16-8 terms of one or two members expiring on January 31 of each
16-9 odd-numbered year.
16-10 (b) A person may not serve two consecutive full six-year
16-11 terms as a member of the Manufactured Housing Board.
16-12 (c) If a vacancy occurs during a member's term, the governor
16-13 shall appoint a new member to fill the unexpired term.
16-14 Sec. 2306.6007. PRESIDING OFFICER. The governor shall
16-15 designate a member of the Manufactured Housing Board as the
16-16 presiding officer of the Manufactured Housing Board to serve in
16-17 that capacity at the will of the governor.
16-18 Sec. 2306.6008. GROUNDS FOR REMOVAL. (a) It is a ground
16-19 for removal from the Manufactured Housing Board that a member:
16-20 (1) does not have at the time of taking office the
16-21 qualifications required by Section 2306.6004(b);
16-22 (2) does not maintain during service on the
16-23 Manufactured Housing Board the qualifications required by Section
16-24 2306.6004(b);
16-25 (3) is ineligible for membership under Section
16-26 2306.6004(c) or 2306.6005;
16-27 (4) cannot, because of illness or disability,
16-28 discharge the member's duties for a substantial part of the
16-29 member's term; or
16-30 (5) is absent from more than half of the regularly
16-31 scheduled Manufactured Housing Board meetings that the member is
16-32 eligible to attend during a calendar year without an excuse
16-33 approved by a majority vote of the Manufactured Housing Board.
16-34 (b) The validity of an action of the Manufactured Housing
16-35 Board is not affected by the fact that it is taken when a ground
16-36 for removal of a Manufactured Housing Board member exists.
16-37 (c) If the division director has knowledge that a potential
16-38 ground for removal exists, the division director shall notify the
16-39 presiding officer of the Manufactured Housing Board of the
16-40 potential ground. The presiding officer shall then notify the
16-41 governor and the attorney general that a potential ground for
16-42 removal exists. If the potential ground for removal involves the
16-43 presiding officer, the division director shall notify the next
16-44 highest ranking officer of the Manufactured Housing Board, who
16-45 shall then notify the governor and the attorney general that a
16-46 potential ground for removal exists.
16-47 Sec. 2306.6009. PER DIEM; REIMBURSEMENT. (a) Each member
16-48 of the Manufactured Housing Board is entitled to a per diem as set
16-49 by legislative appropriation for each day that the member engages
16-50 in the business of the Manufactured Housing Board.
16-51 (b) A Manufactured Housing Board member may be reimbursed
16-52 for actual travel expenses, including expenses for meals, lodging,
16-53 and transportation. A Manufactured Housing Board member is
16-54 entitled to reimbursement for transportation expenses as provided
16-55 by the General Appropriations Act.
16-56 (c) At the time a Manufactured Housing Board member applies
16-57 for reimbursement under this section, the member shall make a sworn
16-58 statement of the number of days the member engaged in the business
16-59 of the Manufactured Housing Board and the amount of the member's
16-60 expenses.
16-61 Sec. 2306.6010. MEETINGS. (a) The Manufactured Housing
16-62 Board shall have regular meetings as the majority of the members
16-63 may specify and special meetings at the request of the presiding
16-64 officer, any two members, or the division director.
16-65 (b) Reasonable notice of all meetings shall be given as
16-66 prescribed by Manufactured Housing Board rules.
16-67 (c) The presiding officer shall preside at all meetings of
16-68 the Manufactured Housing Board. In the absence of the presiding
16-69 officer, the members present shall select one of the members to
17-1 preside at the meeting.
17-2 Sec. 2306.6011. TRAINING. (a) A person who is appointed to
17-3 and qualifies for office as a member of the Manufactured Housing
17-4 Board may not vote, deliberate, or be counted as a member in
17-5 attendance at a meeting of the Manufactured Housing Board until the
17-6 person completes a training program that complies with this
17-7 section.
17-8 (b) The training program must provide the person with
17-9 information regarding:
17-10 (1) the legislation that created the division and the
17-11 Manufactured Housing Board;
17-12 (2) the programs operated by the division;
17-13 (3) the role and functions of the division;
17-14 (4) the rules of the division, with an emphasis on the
17-15 rules that relate to disciplinary and investigatory authority;
17-16 (5) the current budget for the division;
17-17 (6) the results of the most recent formal audit of the
17-18 division;
17-19 (7) the requirements of:
17-20 (A) the open meetings law, Chapter 551;
17-21 (B) the public information law, Chapter 552;
17-22 (C) the administrative procedure law, Chapter
17-23 2001; and
17-24 (D) other laws relating to public officials,
17-25 including conflict-of-interest laws; and
17-26 (8) any applicable ethics policies adopted by the
17-27 division or the Texas Ethics Commission.
17-28 (c) A person appointed to the Manufactured Housing Board is
17-29 entitled to reimbursement, as provided by the General
17-30 Appropriations Act, for the travel expenses incurred in attending
17-31 the training program regardless of whether the attendance at the
17-32 program occurs before or after the person qualifies for office.
17-33 Sec. 2306.6012. APPROPRIATIONS; DONATIONS. (a) The
17-34 legislature shall separately appropriate money to the Manufactured
17-35 Housing Board within the appropriations to the department for all
17-36 matters relating to the operation of the division.
17-37 (b) The Manufactured Housing Board may accept gifts and
17-38 grants of money or property under this subchapter and shall spend
17-39 the money and use the property for the purpose for which the
17-40 donation was made, except that the expenditure of money or use of
17-41 property must promote the acceptance of HUD-Code manufactured homes
17-42 as a viable source of housing for very low, low, and moderate
17-43 income families.
17-44 Sec. 2306.6013. BUDGET; SHARING OF DEPARTMENT PERSONNEL,
17-45 EQUIPMENT, AND FACILITIES. (a) The Manufactured Housing Board
17-46 shall develop a budget for the operations of the department
17-47 relating to the division.
17-48 (b) The Manufactured Housing Board shall reduce
17-49 administrative costs by entering into an agreement with the
17-50 department to enable the sharing of department personnel,
17-51 equipment, and facilities.
17-52 Sec. 2306.6014. DIVISION DIRECTOR. (a) The Manufactured
17-53 Housing Board shall employ the division director. The division
17-54 director is the Manufactured Housing Board's chief executive and
17-55 administrative officer.
17-56 (b) The division director is charged with administering,
17-57 enforcing, and carrying out the functions and duties conferred on
17-58 the division director by this subchapter and by other law.
17-59 (c) The division director serves at the pleasure of the
17-60 Manufactured Housing Board.
17-61 Sec. 2306.6015 [2306.602]. PERSONNEL. The division director
17-62 may employ staff as necessary to perform the work of the
17-63 [manufactured housing] division and may prescribe their duties and
17-64 compensation. Subject to applicable personnel policies and
17-65 regulations, the division director may remove any division
17-66 employee.
17-67 Sec. 2306.6016. SEPARATION OF RESPONSIBILITIES. The
17-68 Manufactured Housing Board shall develop and implement policies
17-69 that clearly separate the policy-making responsibilities of the
18-1 Manufactured Housing Board and the management responsibilities of
18-2 the division director and staff of the division.
18-3 Sec. 2306.6017. STANDARDS OF CONDUCT. The division director
18-4 or the division director's designee shall provide to members of the
18-5 Manufactured Housing Board and to division employees, as often as
18-6 necessary, information regarding the requirements for office or
18-7 employment under this subchapter, including information regarding a
18-8 person's responsibilities under applicable laws relating to
18-9 standards of conduct for state officers or employees.
18-10 Sec. 2306.6018. EQUAL EMPLOYMENT OPPORTUNITY. (a) The
18-11 division director or the division director's designee shall prepare
18-12 and maintain a written policy statement that implements a program
18-13 of equal employment opportunity to ensure that all personnel
18-14 decisions are made without regard to race, color, disability, sex,
18-15 religion, age, or national origin.
18-16 (b) The policy statement must include:
18-17 (1) personnel policies, including policies relating to
18-18 recruitment, evaluation, selection, training, and promotion of
18-19 personnel, that show the intent of the division to avoid the
18-20 unlawful employment practices described by Chapter 21, Labor Code;
18-21 and
18-22 (2) an analysis of the extent to which the composition
18-23 of the division's personnel is in accordance with state and federal
18-24 law and a description of reasonable methods to achieve compliance
18-25 with state and federal law.
18-26 (c) The policy statement must:
18-27 (1) be updated annually;
18-28 (2) be reviewed by the state Commission on Human
18-29 Rights for compliance with Subsection (b)(1); and
18-30 (3) be filed with the governor's office.
18-31 Sec. 2306.6019. STATE EMPLOYEE INCENTIVE PROGRAM. The
18-32 division director or the division director's designee shall provide
18-33 to division employees information and training on the benefits and
18-34 methods of participation in the state employee incentive program
18-35 under Subchapter B, Chapter 2108.
18-36 Sec. 2306.6020 [2306.603]. RULES. (a) The Manufactured
18-37 Housing Board [director] shall adopt rules as necessary to
18-38 implement this subchapter and to administer and enforce the
18-39 manufactured housing program through the [manufactured housing]
18-40 division. Rules adopted by the Manufactured Housing Board
18-41 [director] are subject to Chapter 2001[, Government Code].
18-42 (b) The Manufactured Housing Board [director] may not adopt
18-43 rules restricting competitive bidding or advertising by a person
18-44 regulated by the division except to prohibit false, misleading, or
18-45 deceptive practices by that person.
18-46 (c) The Manufactured Housing Board [director] may not
18-47 include in the rules to prohibit false, misleading, or deceptive
18-48 practices by a person regulated by the division a rule that:
18-49 (1) restricts the use of any advertising medium;
18-50 (2) restricts the person's personal appearance or the
18-51 use of the person's voice in an advertisement;
18-52 (3) relates to the size or duration of an
18-53 advertisement used by the person; or
18-54 (4) restricts the use of a trade name in advertising
18-55 by the person.
18-56 Sec. 2306.6021. PUBLIC PARTICIPATION. The Manufactured
18-57 Housing Board shall develop and implement policies that provide the
18-58 public with a reasonable opportunity to appear before the
18-59 Manufactured Housing Board and to speak on any issue under the
18-60 jurisdiction of the division.
18-61 Sec. 2306.6022. COMPLAINTS. (a) The division shall
18-62 maintain a file on each written complaint filed with the division.
18-63 The file must include:
18-64 (1) the name of the person who filed the complaint;
18-65 (2) the date the complaint is received by the
18-66 division;
18-67 (3) the subject matter of the complaint;
18-68 (4) the name of each person contacted in relation to
18-69 the complaint;
19-1 (5) a summary of the results of the review or
19-2 investigation of the complaint; and
19-3 (6) an explanation of the reason the file was closed,
19-4 if the division closed the file without taking action other than to
19-5 investigate the complaint.
19-6 (b) The division shall provide to the person filing the
19-7 complaint and to each person who is a subject of the complaint a
19-8 copy of the division's policies and procedures relating to
19-9 complaint investigation and resolution.
19-10 (c) The division, at least quarterly until final disposition
19-11 of the complaint, shall notify the person filing the complaint and
19-12 each person who is a subject of the complaint of the status of the
19-13 investigation unless the notice would jeopardize an undercover
19-14 investigation.
19-15 Sec. 2306.6023 [2306.604]. SANCTIONS AND PENALTIES.
19-16 (a) The Manufactured Housing Board [director] shall adopt rules
19-17 relating to the administrative sanctions that may be enforced
19-18 against a person regulated by the [manufactured housing] division.
19-19 If the person violates a law relating to the regulation of
19-20 manufactured housing or a rule or order adopted or issued by the
19-21 Manufactured Housing Board [director] relating to the program, the
19-22 division director may:
19-23 (1) issue a written reprimand to the person that
19-24 specifies the violation;
19-25 (2) revoke or suspend the person's certificate of
19-26 registration; or
19-27 (3) place on probation a person whose certificate of
19-28 registration has been suspended.
19-29 (b) In addition to or in lieu of a sanction imposed under
19-30 Subsection (a) of this section, the Manufactured Housing Board
19-31 [board] may assess an administrative penalty in an amount not to
19-32 exceed $1,000 for each violation.
19-33 (c) If a suspension is probated, the division director may
19-34 require the person to report regularly to the division director on
19-35 matters that are the basis of the probation.
19-36 (d) If the division director proposes to suspend or revoke a
19-37 certificate of registration or the division director proposes to
19-38 assess an administrative penalty against a person regulated by the
19-39 division, the person is entitled to a hearing before a hearings
19-40 officer appointed by the division director. The Manufactured
19-41 Housing Board [director] by rule shall prescribe the procedures by
19-42 which a decision to suspend or revoke a certificate of registration
19-43 or to assess an administrative penalty are made and are appealable.
19-44 (e) In determining the amount of an administrative penalty
19-45 assessed under this section, the Manufactured Housing Board [board]
19-46 shall consider:
19-47 (1) the seriousness of the violation;
19-48 (2) the history of previous violations;
19-49 (3) the amount necessary to deter future violations;
19-50 (4) efforts made to correct the violation; and
19-51 (5) any other matters that justice may require.
19-52 (f) If, after investigation of a possible violation and the
19-53 facts surrounding that possible violation, the division director
19-54 determines that a violation has occurred, the division director
19-55 shall issue a preliminary report stating the facts on which the
19-56 conclusion that a violation occurred is based, recommending that an
19-57 administrative penalty under this section be imposed on the person
19-58 charged, and recommending the amount of that proposed penalty. The
19-59 division director shall base the recommended amount of the proposed
19-60 penalty on the seriousness of the violation determined by
19-61 consideration of the factors set forth in Subsection (e) [of this
19-62 section].
19-63 (g) Not later than the 14th day after the date on which the
19-64 preliminary report is issued, the division director shall give
19-65 written notice of the violation to the person charged. The notice
19-66 shall include:
19-67 (1) a brief summary of the charges;
19-68 (2) a statement of the amount of the penalty
19-69 recommended; and
20-1 (3) a statement of the right of the person charged to
20-2 a hearing on the occurrence of the violation, the amount of the
20-3 penalty, or both the occurrence of the violation and the amount of
20-4 the penalty.
20-5 (h) Not later than the 20th day after the date on which the
20-6 notice is received, the person charged may accept the determination
20-7 of the division director made under Subsection (f) [of this
20-8 section], including the recommended penalty, or make a written
20-9 request for a hearing on that determination.
20-10 (i) If the person charged with the violation accepts the
20-11 determination of the division director, the division director shall
20-12 issue an order approving the determination and ordering that the
20-13 person pay the recommended penalty.
20-14 (j) If the person charged fails to respond in a timely
20-15 manner to the notice or if the person requests a hearing, the
20-16 division director shall set a hearing, give written notice of the
20-17 hearing to the person, and designate a hearings examiner to conduct
20-18 the hearing. The hearings examiner shall make findings of fact and
20-19 conclusions of law and shall promptly issue to the Manufactured
20-20 Housing Board [board] a proposal for decision as to the occurrence
20-21 of the violation and a recommendation as to the amount of the
20-22 proposed penalty if a penalty is determined to be warranted. Based
20-23 on the findings of fact and conclusions of law and the
20-24 recommendations of the hearings examiner, the Manufactured Housing
20-25 Board [board] by order may find that a violation has occurred and
20-26 may assess a penalty, or may find that no violation has occurred.
20-27 (k) The division director shall give notice of the
20-28 Manufactured Housing Board's [board's] order to the person charged.
20-29 The notice must include:
20-30 (1) separate statements of the findings of fact and
20-31 conclusions of law;
20-32 (2) the amount of any penalty assessed;
20-33 (3) a statement of the right of the person charged to
20-34 judicial review of the Manufactured Housing Board's [commission's]
20-35 order; and
20-36 (4) any other information required by law.
20-37 (l) Not later than the 30th day after the date on which the
20-38 decision is final, the person charged shall:
20-39 (1) pay the penalty in full; or
20-40 (2) if the person files a petition for judicial review
20-41 contesting the fact of the violation, the amount of the penalty, or
20-42 both the fact of the violation and the amount of the penalty:
20-43 (A) forward the amount assessed to the division
20-44 [department] for deposit in an escrow account;
20-45 (B) in lieu of payment into escrow, post with
20-46 the division [department] a supersedeas bond for the amount of the
20-47 penalty, in a form approved by the division director and effective
20-48 until judicial review of the decision is final; or
20-49 (C) without paying the amount of the penalty or
20-50 posting the supersedeas bond, pursue the judicial review.
20-51 (m) A person charged with a penalty who is financially
20-52 unable to comply with Subsection (l)(2) [of this section] is
20-53 entitled to judicial review if the person files with the court, as
20-54 part of the person's petition for judicial review, a sworn
20-55 statement that the person is unable to meet the requirements of
20-56 that subsection.
20-57 (n) If the person charged does not pay the penalty and does
20-58 not pursue judicial review, the division [department] or the
20-59 attorney general may bring an action for the collection of the
20-60 penalty.
20-61 (o) Judicial review of the order of the Manufactured Housing
20-62 Board [board] assessing the penalty is subject to the substantial
20-63 evidence rule and shall be instituted by filing a petition with a
20-64 Travis County district court.
20-65 (p) If, after judicial review, the penalty is reduced or not
20-66 assessed, the division director shall remit to the person charged
20-67 the appropriate amount, plus accrued interest if the penalty has
20-68 been paid, or shall execute a release of the bond if a supersedeas
20-69 bond has been posted. The accrued interest on amounts remitted by
21-1 the division director under this subsection shall be paid at a rate
21-2 equal to the rate charged on loans to depository institutions by
21-3 the New York Federal Reserve Bank, and shall be paid for the period
21-4 beginning on the date that the assessed penalty is paid to the
21-5 division director and ending on the date the penalty is remitted.
21-6 (q) A penalty collected under this section shall be
21-7 deposited in the state treasury to the credit of the general
21-8 revenue fund.
21-9 (r) All proceedings conducted under this section and any
21-10 review or appeal of those proceedings are subject to Chapter 2001[,
21-11 Government Code].
21-12 (s) If it appears that a person is in violation of, or is
21-13 threatening to violate, any provision of the Texas Manufactured
21-14 Housing Standards Act (Article 5221f, Vernon's Texas Civil
21-15 Statutes), or a rule or order related to the administration and
21-16 enforcement of the manufactured housing program, the attorney
21-17 general or the division director may institute an action for
21-18 injunctive relief to restrain the person from continuing the
21-19 violation and for civil penalties not to exceed $1,000 for each
21-20 violation and not exceeding $250,000 in the aggregate. A civil
21-21 action filed under this subsection shall be filed in district court
21-22 in Travis County. The attorney general and the division director
21-23 may recover reasonable expenses incurred in obtaining injunctive
21-24 relief under this subsection, including court costs, reasonable
21-25 attorney's fees, investigative costs, witness fees, and deposition
21-26 expenses.
21-27 [Sec. 2306.605. ACCEPTANCE OF DONATIONS. The department may
21-28 accept gifts and grants of money or property under this chapter and
21-29 shall spend the money and use the property for the purpose for
21-30 which the donation was made, except that the expenditure of money
21-31 or use of property must promote the acceptance of HUD-Code
21-32 manufactured homes as a viable source of housing for very low, low,
21-33 and moderate income families.]
21-34 SECTION 1.27. Subchapter DD, Chapter 2306, Government Code,
21-35 is amended by amending Sections 2306.672 and 2306.675 and adding
21-36 Sections 2306.6741, and 2306.6761 to read as follows:
21-37 Sec. 2306.672. SCORING OF APPLICATIONS. (a) The goal of
21-38 the low income housing tax credit program is to provide permanent
21-39 affordable housing. In allocating low income housing tax credits,
21-40 the department shall score each application using a point system
21-41 based on criteria adopted by the department that are consistent
21-42 with the department's housing goals, including criteria addressing:
21-43 (1) an applicant's willingness to minimize profits
21-44 with respect to the proposed project; and
21-45 (2) the ability of the proposed project to:
21-46 (A) provide quality social support services to
21-47 residents;
21-48 (B) demonstrate community and neighborhood
21-49 support;
21-50 (C) serve individuals and families of extremely
21-51 low income;
21-52 (D) serve traditionally underserved areas;
21-53 (E) leverage private and state and federal
21-54 resources, including federal HOPE VI grants received through the
21-55 United States Department of Housing and Urban Development; and
21-56 (F) provide for extended or perpetual
21-57 affordability periods.
21-58 (b) The department shall publish in the qualified allocation
21-59 plan any discretionary factor that the department will consider in
21-60 scoring an application.
21-61 (c) [(b)] If an applicant meets the department's scoring and
21-62 underwriting criteria, the department shall add:
21-63 (1) five bonus points to the applicant's score if the
21-64 applicant agrees to provide to a qualified nonprofit organization
21-65 or tenant organization a right of first refusal to purchase the
21-66 property to which the tax credit applies at the minimum price
21-67 provided in, and in accordance with the requirements of, Section
21-68 42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
21-69 42(i)(7)); and
22-1 (2) two bonus points to the applicant's score if the
22-2 application is received within the first 10 days of the application
22-3 acceptance period.
22-4 (d) [(c)] The department shall provide the score of each
22-5 application on each criterion to the board and the governor. The
22-6 results of the scoring shall be available to the public.
22-7 (e) On [(d) Upon] awarding tax credit allocations, the
22-8 board shall document the reasons for each project's selection,
22-9 including an explanation of:
22-10 (1) all discretionary factors used in making its
22-11 determination; and
22-12 (2) the reasons for any decision that conflicts with
22-13 the recommendations of department staff under Section 2306.675.
22-14 (f) For each scoring criterion, the department shall use a
22-15 range of points to evaluate the degree to which a proposed project
22-16 satisfies the criterion. The department may not award a number of
22-17 points for a scoring criterion that is disproportionate to the
22-18 degree to which a proposed project complies with that criterion.
22-19 Sec. 2306.6741. DEPARTMENT POLICY AND PROCEDURES REGARDING
22-20 RECIPIENTS OF CERTAIN FEDERAL HOUSING ASSISTANCE. (a) The
22-21 department by rule shall adopt a policy regarding the admittance to
22-22 low income housing tax credit properties of income-eligible
22-23 individuals and families receiving assistance under Section 8,
22-24 United States Housing Act of 1937 (42 U.S.C. Section 1437f).
22-25 (b) The policy must provide a reasonable minimum income
22-26 standard not otherwise prohibited by this chapter to be used by
22-27 owners of low income housing tax credit properties and must place
22-28 reasonable limits on the use of any other factors that impede the
22-29 admittance of individuals and families described by Subsection (a)
22-30 to those properties, including credit histories, security deposits,
22-31 and employment histories.
22-32 (c) The department by rule shall establish procedures to
22-33 monitor low income housing tax credit properties that refuse to
22-34 admit individuals and families described by Subsection (a). The
22-35 department by rule shall establish enforcement mechanisms with
22-36 respect to those properties, including a range of sanctions to be
22-37 imposed against the owners of those properties.
22-38 Sec. 2306.675. ALLOCATION OF LOW INCOME HOUSING TAX CREDIT.
22-39 (a) Department staff shall provide written, documented
22-40 recommendations to the board concerning the financial or
22-41 programmatic viability of each application for a low income housing
22-42 tax credit before the board makes a decision relating to the
22-43 allocation of tax credits. The board may not make without good
22-44 cause an allocation decision that conflicts with the
22-45 recommendations of department staff.
22-46 (b) Not later than the deadline specified in Section
22-47 2306.671(e), the board shall issue a commitment for tax credits
22-48 available to the department. Concurrently with the issuance of a
22-49 commitment for initial tax credits, the board shall establish a
22-50 waiting list of additional applications, ranked in descending order
22-51 of priority, to be issued a commitment for tax credits if
22-52 additional credits become available.
22-53 (c) Regardless of project stage, the board must reevaluate a
22-54 project that undergoes a substantial change between the time of
22-55 initial board approval of the project and the time of issuance of a
22-56 tax credit commitment for the project. The board may revoke any
22-57 tax credit commitment issued for a project that has been
22-58 unfavorably reevaluated by the board under this subsection.
22-59 Sec. 2306.6761. QUALIFIED NONPROFIT ORGANIZATION. (a) A
22-60 qualified nonprofit organization may compete in any low income
22-61 housing tax credit allocation pool, including:
22-62 (1) the nonprofit allocation pool;
22-63 (2) the rural projects/prison communities allocation
22-64 pool; and
22-65 (3) the general projects allocation pool.
22-66 (b) A qualified nonprofit organization submitting an
22-67 application under this subchapter must have a controlling interest
22-68 in the project proposed to be financed with a low income housing
22-69 tax credit.
23-1 SECTION 1.28. Subsections (a) and (c), Section 2306.673,
23-2 Government Code, are amended to read as follows:
23-3 (a) Not later than two years before the expiration of the
23-4 compliance period, a recipient of a low income housing tax credit
23-5 who agreed to provide a right of first refusal under Section
23-6 2306.672(c)(1) [2306.672(b)(1)] and who intends to sell the
23-7 property shall notify the department of the recipient's intent to
23-8 sell. The recipient shall notify qualified nonprofit organizations
23-9 and tenant organizations of the opportunity to purchase the
23-10 property.
23-11 (c) Notwithstanding an agreement under Section
23-12 2306.672(c)(1) [2306.672(b)(1)], a recipient of a low income
23-13 housing tax credit may sell property to which the tax credit
23-14 applies to any purchaser after the expiration of the compliance
23-15 period if a qualified nonprofit organization or tenant organization
23-16 does not offer to purchase the property at the minimum price
23-17 provided by Section 42(i)(7), Internal Revenue Code of 1986 (26
23-18 U.S.C. Section 42(i)(7)), and the department declines to purchase
23-19 the property.
23-20 SECTION 1.29. (a) Subchapter DD, Chapter 2306, Government
23-21 Code, is amended by adding Section 2306.6771 to read as follows:
23-22 Sec. 2306.6771. ACCESSIBILITY REQUIRED. A project to which
23-23 a low income housing tax credit is allocated under this subchapter
23-24 shall comply with the accessibility standards that are required
23-25 under Section 504, Rehabilitation Act of 1973 (29 U.S.C. Section
23-26 794), as amended, and specified under 24 C.F.R. Part 8, Subpart C.
23-27 (b) Section 2306.6771, Government Code, as added by this
23-28 Act, applies only to a project for which an application for a low
23-29 income housing tax credit is submitted on or after the effective
23-30 date of this Act.
23-31 SECTION 1.30. Subsection (a), Section 2306.678, Government
23-32 Code, is amended to read as follows:
23-33 (a) The department shall provide information regarding the
23-34 low income housing tax credit program, including notices of public
23-35 hearings, meetings, and opening and closing dates for applications
23-36 for a low income housing tax credit, to local housing departments,
23-37 any appropriate newspapers of general or limited circulation that
23-38 serve the community in which the proposed project is to be located,
23-39 nonprofit organizations, on-site property managers of occupied
23-40 projects that are the subject of tax credit applications for
23-41 posting in prominent locations at those projects, and any other
23-42 interested persons and community groups[,] who request the
23-43 information. The department shall also publish the information on
23-44 the department's website.
23-45 SECTION 1.31. Subtitle F, Title 4, Government Code, is
23-46 amended by adding Chapter 487 to read as follows:
23-47 CHAPTER 487. OFFICE OF RURAL COMMUNITY AFFAIRS
23-48 SUBCHAPTER A. GENERAL PROVISIONS
23-49 Sec. 487.001. DEFINITIONS. In this chapter:
23-50 (1) "Executive committee" means the executive
23-51 committee of the Office of Rural Community Affairs.
23-52 (2) "Office" means the Office of Rural Community
23-53 Affairs.
23-54 (Sections 487.002-487.020 reserved for expansion)
23-55 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
23-56 Sec. 487.021. EXECUTIVE COMMITTEE. (a) The executive
23-57 committee is the governing body of the office.
23-58 (b) The executive committee is composed of the following
23-59 nine members:
23-60 (1) three members appointed by the governor;
23-61 (2) three members appointed by the lieutenant
23-62 governor; and
23-63 (3) three members appointed by the governor based on a
23-64 list of eligible candidates submitted to the governor by the
23-65 speaker of the house of representatives.
23-66 (c) At least two persons appointed by the governor, by the
23-67 lieutenant governor, and by the governor based on the list
23-68 submitted by the speaker of the house of representatives must
23-69 possess a strong understanding of and commitment to rural interests
24-1 based on the individual's personal history, including residency,
24-2 occupation, and civic activities including county and municipal
24-3 government.
24-4 (d) Appointments to the executive committee shall be made
24-5 without regard to the race, color, disability, sex, religion, age,
24-6 or national origin of the appointees.
24-7 (e) The members of the executive committee serve for
24-8 staggered six-year terms, with the terms of three members expiring
24-9 February 1 of each odd-numbered year.
24-10 (f) Executive committee members receive no compensation but
24-11 are entitled to reimbursement of actual and necessary expenses
24-12 incurred in the performance of their duties.
24-13 (g) The members of the executive committee annually shall
24-14 elect a presiding officer from among the members of the executive
24-15 committee.
24-16 Sec. 487.022. CONFLICTS OF INTEREST. (a) In this section,
24-17 "Texas trade association" means a cooperative and voluntarily
24-18 joined association of business or professional competitors in this
24-19 state designed to assist its members and its industry or profession
24-20 in dealing with mutual business or professional problems and in
24-21 promoting their common interest.
24-22 (b) A person may not be a member of the executive committee
24-23 and may not be an office employee employed in a "bona fide
24-24 executive, administrative, or professional capacity," as that
24-25 phrase is used for purposes of establishing an exemption to the
24-26 overtime provisions of the federal Fair Labor Standards Act of 1938
24-27 (29 U.S.C. Section 201 et seq.), and its subsequent amendments, if:
24-28 (1) the person is an officer, employee, or paid
24-29 consultant of a Texas trade association in the field of rural
24-30 affairs; or
24-31 (2) the person's spouse is an officer, manager, or
24-32 paid consultant of a Texas trade association in the field of rural
24-33 affairs.
24-34 (c) A person may not be a member of the executive committee
24-35 or act as the general counsel to the executive committee or the
24-36 office if the person is required to register as a lobbyist under
24-37 Chapter 305 because of the person's activities for compensation on
24-38 behalf of a profession related to the operation of the office.
24-39 Sec. 487.023. TRAINING FOR MEMBERS OF EXECUTIVE COMMITTEE.
24-40 (a) A person who is appointed to and qualifies for office as a
24-41 member of the executive committee may not vote, deliberate, or be
24-42 counted as a member in attendance at a meeting of the executive
24-43 committee until the person completes a training program that
24-44 complies with this section.
24-45 (b) The training program must provide the person with
24-46 information regarding:
24-47 (1) the legislation that created the office and the
24-48 executive committee;
24-49 (2) the programs operated by the office;
24-50 (3) the role and functions of the office;
24-51 (4) the rules of the office, with an emphasis on any
24-52 rules that relate to disciplinary and investigatory authority;
24-53 (5) the current budget for the office;
24-54 (6) the results of the most recent formal audit of the
24-55 office;
24-56 (7) the requirements of:
24-57 (A) the open meetings law, Chapter 551;
24-58 (B) the public information law, Chapter 552;
24-59 (C) the administrative procedure law, Chapter
24-60 2001; and
24-61 (D) other laws relating to public officials,
24-62 including conflict-of-interest laws; and
24-63 (8) any applicable ethics policies adopted by the
24-64 executive committee or the Texas Ethics Commission.
24-65 (c) A person appointed to the executive committee is
24-66 entitled to reimbursement, as provided by general law and the
24-67 General Appropriations Act, for the travel expenses incurred in
24-68 attending the training program regardless of whether the attendance
24-69 at the program occurs before or after the person qualifies for
25-1 office.
25-2 Sec. 487.024. REMOVAL. (a) It is a ground for removal from
25-3 the executive committee that a member:
25-4 (1) does not have at the time of taking office the
25-5 qualifications required by Section 487.021;
25-6 (2) does not maintain during service on the executive
25-7 committee the qualifications required by Section 487.021;
25-8 (3) is ineligible for membership under Section
25-9 487.022;
25-10 (4) cannot, because of illness or disability,
25-11 discharge the member's duties for a substantial part of the
25-12 member's term; or
25-13 (5) is absent from more than half of the regularly
25-14 scheduled executive committee meetings that the member is eligible
25-15 to attend during a calendar year without an excuse approved by a
25-16 majority vote of the executive committee.
25-17 (b) The validity of an action of the executive committee is
25-18 not affected by the fact that it is taken when a ground for removal
25-19 of an executive committee member exists.
25-20 (c) If the executive director has knowledge that a potential
25-21 ground for removal exists, the executive director shall notify the
25-22 presiding officer of the executive committee of the potential
25-23 ground. The presiding officer shall then notify the governor and
25-24 the attorney general that a potential ground for removal exists.
25-25 If the potential ground for removal involves the presiding officer,
25-26 the executive director shall notify the next highest ranking
25-27 officer of the executive committee, who shall then notify the
25-28 governor and the attorney general that a potential ground for
25-29 removal exists.
25-30 Sec. 487.025. DIVISION OF RESPONSIBILITY. The executive
25-31 committee shall develop and implement policies that clearly
25-32 separate the policy-making responsibilities of the executive
25-33 committee and the management responsibilities of the executive
25-34 director and staff of the office.
25-35 Sec. 487.026. EXECUTIVE DIRECTOR. (a) The executive
25-36 committee may hire an executive director to serve as the chief
25-37 executive officer of the office and to perform the administrative
25-38 duties of the office.
25-39 (b) The executive director serves at the will of the
25-40 executive committee.
25-41 (c) The executive director may hire staff within guidelines
25-42 established by the executive committee.
25-43 Sec. 487.027. PUBLIC HEARINGS. The executive committee
25-44 shall develop and implement policies that provide the public with a
25-45 reasonable opportunity to appear before the executive committee and
25-46 to speak on any issue under the jurisdiction of the office.
25-47 Sec. 487.028. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT.
25-48 (a) The executive director or the executive director's designee
25-49 shall prepare and maintain a written policy statement that
25-50 implements a program of equal employment opportunity to ensure that
25-51 all personnel decisions are made without regard to race, color,
25-52 disability, sex, religion, age, or national origin.
25-53 (b) The policy statement must include:
25-54 (1) personnel policies, including policies relating to
25-55 recruitment, evaluation, selection, training, and promotion of
25-56 personnel, that show the intent of the office to avoid the unlawful
25-57 employment practices described by Chapter 21, Labor Code; and
25-58 (2) an analysis of the extent to which the composition
25-59 of the office's personnel is in accordance with state and federal
25-60 law and a description of reasonable methods to achieve compliance
25-61 with state and federal law.
25-62 (c) The policy statement must be:
25-63 (1) updated annually;
25-64 (2) reviewed by the state Commission on Human Rights
25-65 for compliance with Subsection (b)(1); and
25-66 (3) filed with the governor's office.
25-67 Sec. 487.029. STANDARDS OF CONDUCT. The executive director
25-68 or the executive director's designee shall provide to members of
25-69 the executive committee and to agency employees, as often as
26-1 necessary, information regarding the requirements for office or
26-2 employment under this chapter, including information regarding a
26-3 person's responsibilities under applicable laws relating to
26-4 standards of conduct for state officers or employees.
26-5 Sec. 487.030. COMPLAINTS. (a) The office shall maintain a
26-6 file on each written complaint filed with the office. The file
26-7 must include:
26-8 (1) the name of the person who filed the complaint;
26-9 (2) the date the complaint is received by the office;
26-10 (3) the subject matter of the complaint;
26-11 (4) the name of each person contacted in relation to
26-12 the complaint;
26-13 (5) a summary of the results of the review or
26-14 investigation of the complaint; and
26-15 (6) an explanation of the reason the file was closed,
26-16 if the office closed the file without taking action other than to
26-17 investigate the complaint.
26-18 (b) The office shall provide to the person filing the
26-19 complaint and to each person who is a subject of the complaint a
26-20 copy of the office's policies and procedures relating to complaint
26-21 investigation and resolution.
26-22 (c) The office, at least quarterly until final disposition
26-23 of the complaint, shall notify the person filing the complaint and
26-24 each person who is a subject of the complaint of the status of the
26-25 investigation unless the notice would jeopardize an undercover
26-26 investigation.
26-27 (Sections 487.031-487.050 reserved for expansion)
26-28 SUBCHAPTER C. GENERAL POWERS AND DUTIES
26-29 Sec. 487.051. POWERS AND DUTIES. (a) The office shall:
26-30 (1) administer the federal community development block
26-31 grant nonentitlement program; and
26-32 (2) promote the economic development and the general
26-33 welfare of rural communities in this state.
26-34 (b) The office may contract with public and private entities
26-35 in the performance of its responsibilities.
26-36 Sec. 487.052. RULES. The executive committee may adopt
26-37 rules as necessary to implement this chapter.
26-38 Sec. 487.053. GIFTS AND GRANTS. (a) The office may accept
26-39 gifts, grants, and donations from any organization for the purpose
26-40 of funding any activity under this chapter.
26-41 (b) All gifts, grants, and donations must be accepted in an
26-42 open meeting by a majority of the voting members of the executive
26-43 committee and reported in the public record of the meeting with the
26-44 name of the donor and purpose of the gift, grant, or donation.
26-45 Sec. 487.054. REPORT TO LEGISLATURE. Not later than January
26-46 1 of each odd-numbered year, the office shall submit a biennial
26-47 report to the legislature regarding the activities of the office
26-48 and any findings and recommendations relating to rural issues.
26-49 SECTION 1.32. Sections 2306.098, 2306.099, and 2306.100,
26-50 Government Code, are transferred to Chapter 487, Government Code,
26-51 redesignated as Subchapter D, Chapter 487, Government Code, and
26-52 amended to read as follows:
26-53 SUBCHAPTER D. COMMUNITY DEVELOPMENT BLOCK
26-54 GRANT NONENTITLEMENT PROGRAM
26-55 Sec. 487.101 [2306.098]. ADMINISTRATION OF COMMUNITY
26-56 DEVELOPMENT BLOCK GRANT PROGRAM; ALLOCATION OF FUNDS. (a) The
26-57 office [department] shall, under the Omnibus Budget Reconciliation
26-58 Act of 1981 (Pub.L. No. 97-35) and 24 CFR, Part 570, Subpart I,
26-59 administer the state's allocation of federal funds provided under
26-60 the community development block grant nonentitlement program
26-61 authorized by Title I of the Housing and Community Development Act
26-62 of 1974 (42 U.S.C. Section 5301 et seq.).
26-63 (b) Community development block grant program funds shall be
26-64 allocated to eligible counties and municipalities under office
26-65 [department] rules.
26-66 Sec. 487.102 [2306.099]. TRANSFER OF FEDERAL FUNDS: TEXAS
26-67 DEPARTMENT OF ECONOMIC DEVELOPMENT. (a) The office [department]
26-68 may enter into an interagency agreement with the Texas Department
26-69 of Economic Development [Commerce] to reimburse the Texas
27-1 Department of Economic Development [Commerce] for providing on
27-2 behalf of the office [department] marketing, underwriting, and any
27-3 other services on the portion of the federal community development
27-4 block grant funds allocated by the office [department] for economic
27-5 development activities.
27-6 (b) The office [department] shall allocate not more than 20
27-7 percent of the federal funds received by the department to the
27-8 Texas Department of Economic Development [Commerce] to be used for
27-9 economic development activities.
27-10 (c) The office shall monitor the activities undertaken by
27-11 the Texas Department of Economic Development [Commerce] under this
27-12 section [must be monitored by the department].
27-13 Sec. 487.1021. TRANSFER OF FEDERAL FUNDS: TEXAS DEPARTMENT
27-14 OF HOUSING AND COMMUNITY AFFAIRS. The office shall enter into an
27-15 interagency agreement with the Texas Department of Housing and
27-16 Community Affairs to reimburse the Texas Department of Housing and
27-17 Community Affairs for providing on behalf of the office oversight,
27-18 management, and any other services on the portion of the federal
27-19 community development block grant funds allocated for colonia
27-20 self-help centers.
27-21 Sec. 487.103 [2306.100]. STATE COMMUNITY DEVELOPMENT REVIEW
27-22 COMMITTEE. (a) The state community development review committee
27-23 is composed of 12 members appointed by the governor.
27-24 (b) A committee member must be:
27-25 (1) a member of the governing body of a county or
27-26 municipality eligible for funding under the community development
27-27 block grant program; or
27-28 (2) a county or municipal employee who is a supervisor
27-29 and whose regular duties include involvement in community
27-30 development activities.
27-31 (c) The ratio of county officials serving as committee
27-32 members to all committee members may not exceed the ratio of all
27-33 counties eligible for funding under the community development block
27-34 grant program to all eligible applicants.
27-35 (d) The governor shall designate the presiding officer of
27-36 the committee, who serves at the governor's pleasure.
27-37 (e) Committee members serve two-year terms expiring February
27-38 1 of each odd-numbered year.
27-39 (f) A committee member serves without compensation for
27-40 service on the committee, but is entitled to reimbursement for
27-41 reasonable and necessary expenses incurred in performing the
27-42 member's duties.
27-43 (g) Service on the committee by an officer or employee of a
27-44 county or municipality is an additional duty of the individual's
27-45 office or employment and is not dual office holding.
27-46 (h) The committee shall meet at least twice annually at the
27-47 executive director's call.
27-48 (i) The committee shall:
27-49 (1) consult with and advise the executive director on
27-50 the administration and enforcement of the community development
27-51 block grant program; and
27-52 (2) review funding applications of eligible counties
27-53 and municipalities and advise and assist the executive director
27-54 regarding the allocation of program funds to those applicants.
27-55 (j) The committee may annually recommend to the executive
27-56 director a formula for allocating funds to each geographic state
27-57 planning region established by the governor under Chapter 391,
27-58 Local Government Code. The formula must give preference to regions
27-59 according to the regions' needs.
27-60 SECTION 1.33. Section 531.0312, Government Code, is amended
27-61 by adding Subsection (d) to read as follows:
27-62 (d) The Texas Department of Housing and Community Affairs
27-63 shall provide the Texas Information and Referral Network with
27-64 information regarding the department's housing and community
27-65 affairs programs for inclusion in the statewide information and
27-66 referral network. The department shall provide the information in
27-67 a form determined by the commissioner and shall update the
27-68 information at least quarterly.
27-69 SECTION 1.34. Section 1372.023, Government Code, is amended
28-1 to read as follows:
28-2 Sec. 1372.023. DEDICATION OF PORTIONS [PORTION] OF STATE
28-3 CEILING TO TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS.
28-4 (a) Until August 15 [25], of that portion of the state ceiling
28-5 that is available exclusively for reservations by issuers of
28-6 qualified mortgage bonds, one-third is available exclusively to the
28-7 Texas Department of Housing and Community Affairs for the purpose
28-8 of issuing qualified mortgage bonds.
28-9 (b) Until August 15, of that portion of the state ceiling
28-10 that is available exclusively for reservations by issuers of
28-11 qualified residential rental project bonds, one-fourth is available
28-12 exclusively to the Texas Department of Housing and Community
28-13 Affairs in the manner described by Section 1372.0231.
28-14 (c) The Texas Department of Housing and Community Affairs
28-15 may not reserve a portion of the state ceiling that is available
28-16 exclusively for reservations by issuers of qualified residential
28-17 rental project bonds other than the portion dedicated to the
28-18 department under Subsection (b).
28-19 SECTION 1.35. Subsection (b), Section 1372.025, Government
28-20 Code, is amended to read as follows:
28-21 (b) Subsection (a) does not apply to qualified mortgage
28-22 bonds or qualified residential rental project bonds made available
28-23 exclusively to the Texas Department of Housing and Community
28-24 Affairs under Section 1372.023.
28-25 SECTION 1.36. Subdivisions (3), (7), and (8), Section 3,
28-26 Texas Manufactured Housing Standards Act (Article 5221f, Vernon's
28-27 Texas Civil Statutes), are amended to read as follows:
28-28 (3) "Board" means the Manufactured Housing Board
28-29 within the Texas Department of Housing and Community Affairs
28-30 [governing board of the department].
28-31 (7) "Department" means the Texas Department of Housing
28-32 and Community Affairs operating through its manufactured housing
28-33 division.
28-34 (8) "Director" means the executive director of the
28-35 manufactured housing division of the Texas Department of Housing
28-36 and Community Affairs [department].
28-37 SECTION 1.37. Section 7, Texas Manufactured Housing
28-38 Standards Act (Article 5221f, Vernon's Texas Civil Statutes), is
28-39 amended by amending Subsections (g) and (k) and adding Subsections
28-40 (t) through (aa) to read as follows:
28-41 (g) All licenses are valid for one year and are renewable as
28-42 provided by the director. The board by rule may adopt a system
28-43 under which licenses expire on various dates during the year. For
28-44 the year in which the license expiration date is changed, the
28-45 department shall prorate license fees on a monthly basis so that
28-46 each license holder pays only that portion of the license fee that
28-47 is allocable to the number of months during which the license is
28-48 valid. On renewal of the license on the new expiration date, the
28-49 total license renewal fee is payable.
28-50 (k) The director shall conduct any hearing involving the
28-51 denial, renewal, revocation or suspension of a license in
28-52 accordance with Chapter 2001, Government Code. The department may
28-53 place on probation a person whose license is suspended. If a
28-54 license suspension is probated, the department may require the
28-55 person:
28-56 (1) to report regularly to the department on matters
28-57 that are the basis of the probation;
28-58 (2) to limit practice to the areas prescribed by the
28-59 department; or
28-60 (3) to continue or review professional education until
28-61 the person attains a degree of skill satisfactory to the department
28-62 in those areas that are the basis of the probation.
28-63 (t) A person whose license has expired may not engage in
28-64 activities that require a license until the license has been
28-65 renewed.
28-66 (u) A person whose license has been expired for 90 days or
28-67 less may renew the license by paying to the department a renewal
28-68 fee that is equal to 1-1/2 times the normally required renewal fee.
28-69 (v) A person whose license has been expired for more than 90
29-1 days but less than one year may renew the license by paying to the
29-2 department a renewal fee that is equal to two times the normally
29-3 required renewal fee.
29-4 (w) A person whose license has been expired for one year or
29-5 more may not renew the license. The person may obtain a new
29-6 license by complying with the requirements and procedures for
29-7 obtaining an original license.
29-8 (x) A person who was licensed in this state, moved to
29-9 another state, and is currently licensed and has been in practice
29-10 in the other state for the two years preceding the date of
29-11 application may obtain a new license without fulfilling the
29-12 instruction requirements of Subsection (o). The person must pay to
29-13 the department a fee that is equal to two times the normally
29-14 required renewal fee for the license.
29-15 (y) Not later than the 30th day before the date a person's
29-16 license is scheduled to expire, the department shall send written
29-17 notice of the impending expiration to the person at the person's
29-18 last known address according to the records of the department.
29-19 (z) The board may waive any prerequisite to obtaining a
29-20 license for an applicant after reviewing the applicant's
29-21 credentials and determining that the applicant holds a license
29-22 issued by another jurisdiction that has licensing requirements
29-23 substantially equivalent to those of this state.
29-24 (aa) The board may waive any prerequisite to obtaining a
29-25 license for an applicant who holds a license issued by another
29-26 jurisdiction with which this state has a reciprocity agreement.
29-27 The board may make an agreement, subject to the approval of the
29-28 governor, with another state to allow for licensing by reciprocity.
29-29 SECTION 1.38. The Texas Manufactured Housing Standards Act
29-30 (Article 5221f, Vernon's Texas Civil Statutes) is amended by adding
29-31 a new Section 7A and redesignating the existing Section 7A as
29-32 Section 7B and amending that section to read as follows:
29-33 Sec. 7A. PROVISIONAL LICENSE. (a) The board may issue a
29-34 provisional license to an applicant currently licensed in another
29-35 jurisdiction who seeks a license in this state and who:
29-36 (1) has been licensed in good standing as a
29-37 manufacturer, retailer, broker, salesperson, rebuilder, or
29-38 installer of manufactured housing for at least two years in another
29-39 jurisdiction, including a foreign country, that has licensing
29-40 requirements substantially equivalent to the requirements of this
29-41 Act;
29-42 (2) has passed a national or other examination
29-43 recognized by the board relating to the manufactured housing
29-44 industry; and
29-45 (3) is sponsored by a person licensed by the board
29-46 under this Act with whom the provisional license holder will
29-47 practice during the time the person holds a provisional license.
29-48 (b) The board may waive the requirement of Subsection (a)(3)
29-49 for an applicant if the board determines that compliance with that
29-50 subsection would be a hardship to the applicant.
29-51 (c) A provisional license is valid until the date the board
29-52 approves or denies the provisional license holder's application for
29-53 a license.
29-54 (d) The board shall issue a license under this Act to the
29-55 provisional license holder if the provisional license holder is
29-56 eligible to be licensed under Section 7(z) or (aa) or if:
29-57 (1) the board verifies that the provisional license
29-58 holder meets the academic and experience requirements for a license
29-59 under this Act; and
29-60 (2) the provisional license holder satisfies any other
29-61 licensing requirements under this Act.
29-62 (e) The board must approve or deny a provisional license
29-63 holder's application for a license not later than the 180th day
29-64 after the date the provisional license is issued.
29-65 (f) The board may establish a fee for provisional licenses
29-66 in an amount reasonable and necessary to cover the cost of issuing
29-67 the licenses.
29-68 Sec. 7B [7A]. EDUCATION PROGRAMS. (a) The department
29-69 [director] may recognize, prepare, or administer certification
30-1 programs [and continuing education programs] for persons regulated
30-2 under this Act. Participation in the programs is voluntary.
30-3 (b) The board shall recognize, prepare, or administer
30-4 continuing education programs for its license holders. A license
30-5 holder must participate in the continuing education programs to the
30-6 extent required by the board to keep the person's license.
30-7 (c) The department [director] shall issue appropriate
30-8 certificates to those persons who complete a [the] certification
30-9 program or who participate in a [the] continuing education program
30-10 under this section.
30-11 SECTION 1.39. (a) The nine members of the governing board
30-12 of the Texas Department of Housing and Community Affairs who are
30-13 serving immediately before September 1, 2001, continue to serve as
30-14 the governing board of the department on and after that date
30-15 regardless of whether those members meet the membership
30-16 requirements prescribed by Subchapter B, Chapter 2306, Government
30-17 Code, as amended by this Act. However, the positions of those nine
30-18 members are abolished on the date on which a majority of the seven
30-19 board membership positions that are created under Subchapter B,
30-20 Chapter 2306, Government Code, as amended by this Act, are filled
30-21 by appointment by the governor and the appointees qualify for
30-22 office.
30-23 (b) The governor shall make the seven appointments to the
30-24 board under Subchapter B, Chapter 2306, Government Code, as amended
30-25 by this Act, as soon as possible on or after September 1, 2001. In
30-26 making the initial appointments, the governor shall designate two
30-27 members for terms expiring January 31, 2003, two members for terms
30-28 expiring January 31, 2005, and three members for terms expiring
30-29 January 31, 2007.
30-30 (c) The changes in law made by this Act in amending
30-31 Subchapter B, Chapter 2306, Government Code, do not affect the
30-32 ability of the director of the Texas Department of Housing and
30-33 Community Affairs who is serving on the effective date of this Act
30-34 to continue to serve in that capacity until the governing board of
30-35 the department appointed by the governor under Subchapter B,
30-36 Chapter 2306, Government Code, as amended by this Act, employs a
30-37 new director under Chapter 2306.
30-38 SECTION 1.40. (a) The governor shall make the appointments
30-39 to the Manufactured Housing Board created by Subchapter AA, Chapter
30-40 2306, Government Code, as amended by this Act, as soon as possible
30-41 on or after September 1, 2001. In making the initial appointments,
30-42 the governor shall designate one member for a term expiring January
30-43 31, 2003, two members for terms expiring January 31, 2005, and two
30-44 members for terms expiring January 31, 2007.
30-45 (b) Until the Manufactured Housing Board employs a division
30-46 director for the manufactured housing division of the Texas
30-47 Department of Housing and Community Affairs, the director of the
30-48 department may continue to carry out the functions of the division
30-49 director for that division.
30-50 SECTION 1.41. As soon as practicable after the effective
30-51 date of this Act, the new governing board of the Texas Department
30-52 of Housing and Community Affairs appointed by the governor under
30-53 Subchapter B, Chapter 2306, Government Code, as amended by this
30-54 Act, shall develop a strategic action plan to implement the
30-55 requirements of this Act. The board shall employ a director to
30-56 provide and monitor the provision of administrative support to the
30-57 board to assist in implementing the plan. The director shall
30-58 evaluate the organizational structure of the department, including
30-59 the evaluation of essential management positions, and shall make
30-60 any organizational changes necessary to implement the plan and the
30-61 other requirements of this Act.
30-62 SECTION 1.42. (a) Not later than December 31, 2002, the
30-63 Sunset Advisory Commission shall evaluate the success of the Texas
30-64 Department of Housing and Community Affairs in implementing the
30-65 requirements of this Act before that date, including actions taken
30-66 by the department with respect to the following:
30-67 (1) establishment of a functional governing board that
30-68 values public input and enables board members to develop the
30-69 expertise necessary to make informed decisions about and to ensure
31-1 the accountability of the department and the programs of the
31-2 department;
31-3 (2) establishment of an organizational structure to
31-4 develop and implement a statewide needs assessment and a
31-5 corresponding allocation process that:
31-6 (A) ensure that the state's objectives regarding
31-7 housing and community support services are fulfilled;
31-8 (B) ensure that the state's most critical needs
31-9 regarding housing and community support services are identified and
31-10 met;
31-11 (C) incorporate input from local entities;
31-12 (D) maximize the preservation of affordable
31-13 housing; and
31-14 (E) achieve the best use of state resources;
31-15 (3) development of policies and procedures that
31-16 clearly define the appropriate roles of board members, the
31-17 director, and department staff;
31-18 (4) implementation of rules outlining a formal process
31-19 to appeal board decisions; and
31-20 (5) establishment of project compliance procedures
31-21 that ensure that the programs of the department provide fair access
31-22 to housing and community support services in this state.
31-23 (b) Before January 1, 2003, the Sunset Advisory Commission
31-24 shall report the results of evaluation to the presiding officer of
31-25 each house of the legislature.
31-26 SECTION 1.43. (a) Not later than November 1, 2001, the
31-27 governor and the lieutenant governor shall appoint the initial
31-28 members of the executive committee of the Office of Rural Community
31-29 Affairs in accordance with Chapter 487, Government Code, as added
31-30 by this Act. The governor shall appoint two members and the
31-31 lieutenant governor shall appoint one member for terms expiring
31-32 February 1, 2003, the governor shall appoint two members and the
31-33 lieutenant governor shall appoint one member for terms expiring
31-34 February 1, 2005, and the governor shall appoint two members and
31-35 the lieutenant governor shall appoint one member for terms expiring
31-36 February 1, 2007. The executive committee may not take action
31-37 until a majority of the members have taken office.
31-38 (b) The Office of Rural Community Affairs shall employ an
31-39 executive director in accordance with Chapter 487, Government Code,
31-40 as added by this Act, not later than December 1, 2001.
31-41 SECTION 1.44. (a) On the date by which a majority of the
31-42 members of the executive committee of the Office of Rural Community
31-43 Affairs have taken office, all powers, duties, obligations, rights,
31-44 contracts, leases, records, personnel, property, and unspent and
31-45 unobligated appropriations and other funds of the Texas Department
31-46 of Housing and Community Affairs related to the federal community
31-47 development block grant nonentitlement program are transferred to
31-48 the Office of Rural Community Affairs, contingent upon the
31-49 development of a transition plan that ensures continued service
31-50 delivery at the local level.
31-51 (b) The transfer of the federal community development block
31-52 grant nonentitlement program to the Office of Rural Community
31-53 Affairs does not affect the validity of a right, privilege, or
31-54 obligation accrued, a contract or acquisition made, any liability
31-55 incurred, a permit or license issued, any penalty, forfeiture, or
31-56 punishment assessed, a rule adopted, a proceeding, investigation,
31-57 or remedy begun, a decision made, or other action taken by or in
31-58 connection with the program by the Texas Department of Housing and
31-59 Community Affairs.
31-60 (c) All rules, policies, procedures, and decisions of the
31-61 Texas Department of Housing and Community Affairs related to the
31-62 federal community development block grant nonentitlement program
31-63 are continued in effect as rules, policies, procedures, and
31-64 decisions of the Office of Rural Community Affairs until superseded
31-65 by a rule or other appropriate action of the Office of Rural
31-66 Community Affairs.
31-67 (d) Any action or proceeding before the Texas Department of
31-68 Housing and Community Affairs related to the federal community
31-69 development block grant nonentitlement program is transferred
32-1 without change in status to the Office of Rural Community Affairs,
32-2 and the Office of Rural Community Affairs assumes, without a change
32-3 in status, the position of the Texas Department of Housing and
32-4 Community Affairs in any action or proceeding related to the
32-5 program to which the Texas Department of Housing and Community
32-6 Affairs is a party.
32-7 (e) A fund or account administered by the Texas Department
32-8 of Economic Development relating to the federal community
32-9 development block grant nonentitlement program is not considered to
32-10 be abolished and re-created by this Act but is considered to be
32-11 transferred to the Office of Rural Community Affairs.
32-12 (f) Notwithstanding the changes in law made by this Act,
32-13 until the date the federal community development block grant
32-14 nonentitlement program is transferred to the Office of Rural
32-15 Community Affairs as provided by this Act, the Texas Department of
32-16 Housing and Community Affairs and the Texas Department of Economic
32-17 Development shall continue to exercise the powers and duties
32-18 assigned to the Texas Department of Housing and Community Affairs
32-19 and the Texas Department of Economic Development, respectively,
32-20 under the law as it existed immediately before the effective date
32-21 of this Act or as modified by another Act of the 77th Legislature,
32-22 Regular Session, 2001, that becomes law, and the former law is
32-23 continued in effect for that purpose.
32-24 SECTION 1.45. Sections 2306.023 and 2306.026, Subsection
32-25 (d), Section 2306.052, and Section 2306.092, Government Code, are
32-26 repealed.
32-27 SECTION 1.46. A member of the governing board of the Texas
32-28 Department of Housing and Community Affairs, of the Manufactured
32-29 Housing Board, or of the executive committee of the Office of Rural
32-30 Community Affairs is not subject to the prohibition imposed by
32-31 Section 2306.028, 2306.6011, or 487.023, Government Code, as
32-32 applicable, until September 1, 2002.
32-33 ARTICLE 2
32-34 SECTION 2.01. Section 2306.004, Government Code, is amended
32-35 by adding Subdivisions (31) through (34) to read as follows:
32-36 (31) "Economic submarket" means a group of borrowers
32-37 who have common home mortgage loan market eligibility
32-38 characteristics, including income level, credit history or credit
32-39 score, and employment characteristics, that are similar to Standard
32-40 and Poor's credit underwriting criteria.
32-41 (32) "Geographic submarket" means a geographic region
32-42 in the state, including a county, census tract, or municipality,
32-43 that shares similar levels of access to home mortgage credit from
32-44 the private home mortgage lending industry, as determined by the
32-45 department based on home mortgage lending data published by federal
32-46 and state banking regulatory agencies.
32-47 (33) "Rural county" means a county that is outside the
32-48 boundaries of a primary metropolitan statistical area or a
32-49 metropolitan statistical area.
32-50 (34) "Subprime loan" means a loan that is originated
32-51 by a lender designated as a subprime lender on the subprime lender
32-52 list maintained by the United States Department of Housing and
32-53 Urban Development or identified as a lender primarily engaged in
32-54 subprime lending under Section 2306.143.
32-55 SECTION 2.02. Section 2306.142, Government Code, is amended
32-56 to read as follows:
32-57 Sec. 2306.142. AUTHORIZATION OF BONDS. (a) Subject to the
32-58 requirements of this section [In its discretion], the board shall
32-59 authorize all bonds issued by the department.
32-60 (b) If the issuance is authorized by the board, the
32-61 department shall issue single-family mortgage revenue bonds to make
32-62 home mortgage credit available to economic and geographic
32-63 submarkets of borrowers who are not served or who are substantially
32-64 underserved by the conventional, Federal National Mortgage
32-65 Association, Federal Home Loan Mortgage Corporation, or Federal
32-66 Housing Administration home mortgage lending industry or by housing
32-67 finance corporations organized under Chapter 394, Local Government
32-68 Code.
32-69 (c) The board by rule shall adopt a methodology for
33-1 determining through a market study the home mortgage credit needs
33-2 in underserved economic and geographic submarkets in the state. In
33-3 conducting the market study required by this subsection, the
33-4 department or its designee shall analyze for the underserved
33-5 economic and geographic submarkets, at a minimum, the following
33-6 factors:
33-7 (1) home ownership rates;
33-8 (2) loan volume;
33-9 (3) loan approval ratios;
33-10 (4) loan interest rates;
33-11 (5) loan terms;
33-12 (6) loan availability;
33-13 (7) type and number of dwelling units; and
33-14 (8) use of subprime mortgage loan products, comparing
33-15 the volume amount of subprime loans and interest rates to "A" paper
33-16 mortgage loans as defined by Standard and Poor's credit
33-17 underwriting criteria.
33-18 (d) The department or its designee shall analyze the
33-19 potential market demand, loan availability, and private sector home
33-20 mortgage lending rates available to extremely low, very low, low,
33-21 and moderate income borrowers in the rural counties of the state,
33-22 in census tracts in which the median family income is less than 80
33-23 percent of the median family income for the county in which the
33-24 census tract is located, and in the region of the state adjacent to
33-25 the international border of the state. The department or its
33-26 designee shall establish a process for serving those counties,
33-27 census tracts, and regions through the single-family mortgage
33-28 revenue bond program in a manner proportionate to the credit needs
33-29 of those areas as determined through the department's market study.
33-30 (e) Using the market study and the analysis required by this
33-31 section, the board shall evaluate the feasibility of a
33-32 single-family mortgage revenue bond program with loan marketing,
33-33 eligibility, underwriting, structuring, collection, and foreclosure
33-34 criteria and with loan services practices that are designed to meet
33-35 the credit needs of the underserved economic and geographic
33-36 submarkets of the state, including those submarkets served
33-37 disproportionately by subprime lenders.
33-38 (f) In evaluating a proposed bond program under this
33-39 section, the board shall consider, consistent with the reasonable
33-40 financial operation of the department, specific set-asides or
33-41 reservations of mortgage loans for underserved economic and
33-42 geographic submarkets in the state, including the reservation of
33-43 funds to serve borrowers who have "A-" to "B-" credit according to
33-44 Standard and Poor's credit underwriting criteria.
33-45 (g) The department may use any source of funds or subsidy
33-46 available to the department to provide credit enhancement, down
33-47 payment assistance, pre-homebuyer and post-homebuyer counseling,
33-48 interest rate reduction, and payment of incentive lender points to
33-49 accomplish the purposes of this section in a manner considered by
33-50 the board to be consistent with the reasonable financial operation
33-51 of the department.
33-52 (h) In allocating funds under Subsection (g), the
33-53 department's highest priority is to provide assistance to borrowers
33-54 in underserved economic and geographic submarkets in the state. If
33-55 the board determines that sufficient funds are available after
33-56 fully meeting the credit needs of borrowers in those submarkets,
33-57 the department may provide assistance to other borrowers.
33-58 (i) The board shall certify that each single-family mortgage
33-59 revenue bond issued by the department under this section is
33-60 structured in a manner that serves the credit needs of borrowers in
33-61 underserved economic and geographic submarkets in the state.
33-62 (j) After any board approval and certification of a
33-63 single-family mortgage revenue bond issuance, the department shall
33-64 submit the proposed bond issuance to the Bond Review Board for
33-65 review.
33-66 (k) In the state fiscal year beginning on September 1, 2001,
33-67 the department shall:
33-68 (1) adopt by rule a market study methodology as
33-69 required by Subsection (c);
34-1 (2) conduct the market study;
34-2 (3) propose for board review a single-family mortgage
34-3 revenue bond program, including loan feature details, a program for
34-4 borrower subsidies as provided by Subsections (g) and (h), and
34-5 origination and servicing infrastructure;
34-6 (4) identify reasonable capital markets financing;
34-7 (5) conduct a public hearing on the market study
34-8 results and the proposed bond program; and
34-9 (6) submit for review by the Bond Review Board the
34-10 market study results and, if approved and certified by the board,
34-11 the proposed bond program.
34-12 (l) In the state fiscal year beginning on September 1, 2002,
34-13 and in each subsequent state fiscal year, the department shall
34-14 allocate not less than 40 percent of the total single-family
34-15 mortgage revenue bond loan volume to meet the credit needs of
34-16 borrowers in underserved economic and geographic submarkets in the
34-17 state, subject to the identification of a satisfactory market
34-18 volume demand through the market study.
34-19 (m) On completion of the market study, if the board
34-20 determines in any year that bonds intended to be issued to achieve
34-21 the purposes of this section are unfeasible or would damage the
34-22 financial condition of the department, the board may formally
34-23 appeal to the Bond Review Board the requirements of Subsection (k)
34-24 or (l), as applicable. The Bond Review Board has sole authority to
34-25 modify or waive the required allocation levels.
34-26 (n) In addition to any other loan originators selected by
34-27 the department, the department shall authorize colonia self-help
34-28 centers and any other community-based, nonprofit institutions
34-29 considered appropriate by the board to originate loans on behalf of
34-30 the department. All nonfinancial institutions acting as loan
34-31 originators under this subsection must undergo adequate training,
34-32 as prescribed by the department, to participate in the bond
34-33 program. The department may require lenders to participate in
34-34 ongoing training and underwriting compliance audits to maintain
34-35 good standing to participate in the bond program. The department
34-36 may require that lenders meet appropriate eligibility standards as
34-37 prescribed by the department.
34-38 (o) The department shall structure all single-family
34-39 mortgage revenue bond issuances in a manner designed to recover the
34-40 full costs associated with conducting the activities required by
34-41 this section.
34-42 SECTION 2.03. Subchapter G, Chapter 2306, Government Code,
34-43 is amended by adding Section 2306.143 to read as follows:
34-44 Sec. 2306.143. ALTERNATIVE TO SUBPRIME LENDER LIST. (a) If
34-45 the United States Department of Housing and Urban Development
34-46 ceases to prepare or make public a subprime lender list, the market
34-47 study required by Section 2306.142 must annually survey the 100
34-48 largest refinancing lenders and the 100 largest home purchase loan
34-49 lenders in the state to identify lenders primarily engaged in
34-50 subprime lending.
34-51 (b) The lenders included in the survey must be identified on
34-52 the basis of home mortgage loan data reported by lenders under the
34-53 Home Mortgage Disclosure Act of 1975 (12 U.S.C. Section 2801 et
34-54 seq.) and the Community Reinvestment Act of 1977 (12 U.S.C. Section
34-55 2901 et seq.).
34-56 ARTICLE 3
34-57 SECTION 3.01. Subchapter A, Chapter 2306, Government Code,
34-58 is amended by adding Section 2306.008 to read as follows:
34-59 Sec. 2306.008. PRESERVATION OF AFFORDABLE HOUSING. (a) The
34-60 department shall support in the manner described by Subsection (b)
34-61 the preservation of affordable housing for individuals with special
34-62 needs, as defined by Section 2306.511, and individuals and families
34-63 of low income at any location considered necessary by the
34-64 department.
34-65 (b) The department shall support the preservation of
34-66 affordable housing under this section by:
34-67 (1) making low-interest financing and grants available
34-68 to private for-profit and nonprofit buyers who seek to acquire,
34-69 preserve, and rehabilitate affordable housing; and
35-1 (2) prioritizing available funding and financing
35-2 resources for affordable housing preservation activities.
35-3 SECTION 3.02. Subchapter H, Chapter 2306, Government Code,
35-4 is amended by adding Section 2306.185 to read as follows:
35-5 Sec. 2306.185. LONG-TERM AFFORDABILITY AND SAFETY OF
35-6 MULTIFAMILY RENTAL HOUSING DEVELOPMENTS. (a) The department shall
35-7 adopt policies and procedures to ensure that, for a multifamily
35-8 rental housing development funded through loans, grants, or tax
35-9 credits under this chapter, the owner of the development:
35-10 (1) keeps the rents affordable for low-income tenants
35-11 for the longest period that is economically feasible; and
35-12 (2) provides regular maintenance to keep the
35-13 development sanitary, decent, and safe.
35-14 (b) In implementing Subsection (a)(1) and in developing
35-15 underwriting standards and application scoring criteria for the
35-16 award of loans, grants, or tax credits to multifamily developments,
35-17 the department shall ensure that the economic benefits of longer
35-18 affordability terms and below market rate rents are accurately
35-19 assessed and considered.
35-20 (c) The department shall require that a recipient of funding
35-21 maintains the affordability of the multifamily housing development
35-22 for households of extremely low, very low, low, and moderate
35-23 incomes for the greater of a 30-year period from the date the
35-24 recipient takes legal possession of the housing or the remaining
35-25 term of the existing federal government assistance. In addition,
35-26 the agreement between the department and the recipient shall
35-27 require the renewal of rental subsidies if available and if the
35-28 subsidies are sufficient to maintain the economic viability of the
35-29 multifamily development.
35-30 (d) The development restrictions provided by Subsection (a)
35-31 and Section 2306.269 are enforceable by the department, by tenants
35-32 of the development, or by private parties against the initial owner
35-33 or any subsequent owner. The department shall require a land use
35-34 restriction agreement providing for enforcement of the restrictions
35-35 by the department, a tenant, or a private party that includes the
35-36 right to recover reasonable attorney's fees if the party seeking
35-37 enforcement of the restriction is successful.
35-38 (e) Subsections (c) and (d) and Section 2306.269 apply only
35-39 to multifamily rental housing developments to which the department
35-40 is providing one or more of the following forms of assistance:
35-41 (1) a loan or grant in an amount greater than 33
35-42 percent of the market value of the development on the date the
35-43 recipient took legal possession of the development;
35-44 (2) a loan guarantee for a loan in an amount greater
35-45 than 33 percent of the market value of the development on the date
35-46 the recipient took legal title to the development; or
35-47 (3) a low income housing tax credit.
35-48 (f) An owner of the housing development who intends to sell,
35-49 lease, prepay the loan insured by the United States Department of
35-50 Housing and Urban Development, opt out of a housing assistance
35-51 payments contract under Section 8, United States Housing Act of
35-52 1937 (42 U.S.C. Section 1437f), or otherwise dispose of the
35-53 development shall agree to provide notice to the department at
35-54 least 12 months before the date of any attempt to dispose of the
35-55 development, prepay the loan, or opt out of the Section 8 contract
35-56 to enable the department to attempt to locate a buyer who will
35-57 conform to the development restrictions provided by this section.
35-58 (g) This section does not apply to a multifamily rental
35-59 housing development supported by qualified 501(c)(3) bonds.
35-60 SECTION 3.03. Subchapter K, Chapter 2306, Government Code,
35-61 is amended by adding Section 2306.2561 to read as follows:
35-62 Sec. 2306.2561. AFFORDABLE HOUSING PRESERVATION PROGRAM:
35-63 LOANS AND GRANTS. (a) The department, through the housing finance
35-64 division, shall provide loans and grants to political subdivisions,
35-65 housing finance corporations, public housing authorities,
35-66 for-profit organizations, nonprofit organizations, and
35-67 income-eligible individuals, families, and households for purposes
35-68 of rehabilitating housing to preserve affordability of the housing.
35-69 (b) The department may use any available revenue, including
36-1 legislative appropriations, to provide loans and grants under this
36-2 section.
36-3 SECTION 3.04. Section 2306.269, Government Code, is amended
36-4 to read as follows:
36-5 Sec. 2306.269. TENANT AND MANAGER SELECTION. (a) The
36-6 department shall set standards for tenant and management selection
36-7 by a housing sponsor.
36-8 (b) The department shall prohibit multifamily rental housing
36-9 developments funded or administered by the department from:
36-10 (1) excluding an individual or family from admission
36-11 to the development because the individual or family participates in
36-12 the housing choice voucher program under Section 8, United States
36-13 Housing Act of 1937 (42 U.S.C. Section 1437f); and
36-14 (2) using a financial or minimum income standard for
36-15 an individual or family participating in the voucher program
36-16 described by Subdivision (1) that requires the individual or family
36-17 to have a monthly income of more than 2-1/2 times the individual's
36-18 or family's share of the total monthly rent payable to the owner of
36-19 the development unit.
36-20 SECTION 3.05. Chapter 2306, Government Code, is amended by
36-21 adding Subchapter HH to read as follows:
36-22 SUBCHAPTER HH. AFFORDABLE HOUSING PRESERVATION
36-23 Sec. 2306.801. DEFINITION. In this subchapter, "federally
36-24 subsidized" means receiving financial assistance through a federal
36-25 program administered by the secretary of housing and urban
36-26 development or the secretary of agriculture under which housing
36-27 assistance is provided on the basis of income, including a program
36-28 under:
36-29 (1) Section 221(d), National Housing Act (12 U.S.C.
36-30 Section 1715l(d));
36-31 (2) Section 236, National Housing Act (12 U.S.C.
36-32 Section 1715z-1);
36-33 (3) Section 202, Housing Act of 1959 (12 U.S.C.
36-34 Section 1701q);
36-35 (4) Section 101, Housing and Urban Development Act of
36-36 1965 (12 U.S.C. Section 1701s);
36-37 (5) Section 514, 515, or 516, Housing Act of 1949 (42
36-38 U.S.C. Section 1484, 1485, or 1486); or
36-39 (6) Section 8, United States Housing Act of 1937 (42
36-40 U.S.C. Section 1437f).
36-41 Sec. 2306.802. MULTIFAMILY HOUSING PRESERVATION CLASSES.
36-42 The department shall establish two classes of priorities of
36-43 developments to preserve multifamily housing. The classes, in
36-44 order of descending priority, are:
36-45 (1) class A, which includes any federally subsidized
36-46 multifamily housing development at risk because the contract
36-47 granting a federal subsidy with a stipulation to maintain
36-48 affordability is nearing expiration or because the
36-49 government-insured mortgage on the property is eligible for
36-50 prepayment or near the end of its mortgage term; and
36-51 (2) class B, which includes any other multifamily
36-52 housing development with low-income use or rental affordability
36-53 restrictions.
36-54 Sec. 2306.803. AT-RISK MULTIFAMILY HOUSING: IDENTIFICATION,
36-55 PRIORITIZATION, AND PRESERVATION. (a) The department shall
36-56 determine the name and location of and the number of units in each
36-57 multifamily housing development that is at risk of losing its
36-58 low-income use restrictions and subsidies and that meets the
36-59 requirements of a class A priority described by Section 2306.802.
36-60 (b) The department shall maintain an accurate list of those
36-61 developments on the department's website.
36-62 (c) The department shall develop cost estimates for the
36-63 preservation and rehabilitation of the developments in priority
36-64 class A.
36-65 (d) The department shall contact owners of developments
36-66 assigned a class A priority under this section and shall attempt to
36-67 negotiate with those owners to ensure continued affordability for
36-68 individuals and families of low income under the federal housing
36-69 assistance program for those developments.
37-1 Sec. 2306.804. USE OF HOUSING PRESERVATION RESOURCES.
37-2 (a) To the extent possible, the department shall use available
37-3 resources for the preservation and rehabilitation of the
37-4 multifamily housing developments identified and listed under
37-5 Section 2306.803.
37-6 (b) To the extent possible, the department shall allocate
37-7 low-income housing tax credits to applications involving the
37-8 preservation of developments assigned a class A priority under
37-9 Section 2306.803 and in both urban and rural communities in
37-10 approximate proportion to the housing needs of each uniform state
37-11 service region.
37-12 (c) The department shall give priority to providing
37-13 financing or funding to a buyer who is supported or approved by an
37-14 association of residents of the multifamily housing development.
37-15 Sec. 2306.805. HOUSING PRESERVATION INCENTIVES PROGRAM.
37-16 (a) The department shall establish and administer a housing
37-17 preservation incentives program to provide incentives through loan
37-18 guarantees, loans, and grants to political subdivisions, housing
37-19 finance corporations, public housing authorities, for-profit
37-20 organizations, and nonprofit organizations for the acquisition and
37-21 rehabilitation of multifamily housing developments assigned a class
37-22 A or class B priority under Section 2306.803.
37-23 (b) A loan issued by a lender participating in the program
37-24 must be fully underwritten by the department.
37-25 (c) Consistent with the requirements of federal law, the
37-26 department may guarantee loans issued under the program by
37-27 obtaining a Section 108 loan guarantee from the United States
37-28 Department of Housing and Urban Development under the Housing and
37-29 Community Development Act of 1974 (42 U.S.C. Section 5308).
37-30 (d) Grants under this program may include direct subsidies
37-31 offered as an equity contribution to enable an owner to acquire and
37-32 rehabilitate a class A or class B priority property described by
37-33 Section 2306.802. Grants may also be offered to provide
37-34 consultation and technical assistance services to a nonprofit
37-35 organization seeking to acquire and rehabilitate a class A or class
37-36 B priority property.
37-37 (e) A housing development that benefits from the incentive
37-38 program under this section is subject to the requirements
37-39 concerning:
37-40 (1) long-term affordability and safety prescribed by
37-41 Section 2306.185; and
37-42 (2) tenant and manager selection prescribed by Section
37-43 2306.269.
37-44 SECTION 3.06. Chapter 2306, Government Code, is amended by
37-45 adding Subchapter II to read as follows:
37-46 SUBCHAPTER II. MULTIFAMILY HOUSING DEVELOPMENTS:
37-47 PRESERVATION OF AFFORDABILITY
37-48 Sec. 2306.851. APPLICATION. (a) This subchapter applies
37-49 only to a property owner of a multifamily housing development that
37-50 is insured or assisted under a program under Section 8, United
37-51 States Housing Act of 1937 (42 U.S.C. Section 1437f), or that is:
37-52 (1) insured or assisted under a program under:
37-53 (A) Section 221(d)(3), National Housing Act (12
37-54 U.S.C. Section 1715l);
37-55 (B) Section 236, National Housing Act (12 U.S.C.
37-56 Section 1715z-1); or
37-57 (C) Section 514, 515, or 516, Housing Act of
37-58 1949 (42 U.S.C. Section 1484, 1485, or 1486); and
37-59 (2) financed by a mortgage that is eligible for
37-60 prepayment at the option of the property owner.
37-61 (b) This subchapter does not apply to the disposal of
37-62 property because of:
37-63 (1) a governmental taking by eminent domain or
37-64 negotiated purchase;
37-65 (2) a foreclosure action;
37-66 (3) a transfer by gift, devise, or operation of law;
37-67 or
37-68 (4) a sale to a person who would be entitled to an
37-69 interest in the property if the property owner died intestate.
38-1 (c) This subchapter does not apply to property included in a
38-2 restructuring program with a participating administrative entity
38-3 designated by the United States Department of Housing and Urban
38-4 Development.
38-5 Sec. 2306.852. PROPERTY OWNER RESTRICTION. Except as
38-6 provided by this subchapter, a property owner to whom this
38-7 subchapter applies may not sell, lease, or otherwise dispose of a
38-8 multifamily housing development described by Section 2306.851(a) or
38-9 take any other action if that action will cause the disruption or
38-10 discontinuance of:
38-11 (1) the development's federal insurance or assistance;
38-12 or
38-13 (2) the provision of low-income housing assistance to
38-14 residents of the development.
38-15 Sec. 2306.853. NOTICE OF INTENT. (a) A property owner of a
38-16 multifamily housing development may take an action, sell, lease, or
38-17 otherwise dispose of the development subject to the restriction
38-18 under Section 2306.852 if the property owner provides notice by
38-19 mail of the owner's intent to the residents of the development and
38-20 to the department.
38-21 (b) The notice required by Subsection (a) must indicate, as
38-22 applicable, that the property owner intends to prepay a mortgage
38-23 under a program described by Section 2306.851(a)(1) or that a
38-24 contract formed under a program under Section 8, United States
38-25 Housing Act of 1937 (42 U.S.C. Section 1437f), will expire.
38-26 (c) The property owner shall provide the notice required by
38-27 Subsection (a) before the 90th day preceding the date of mortgage
38-28 prepayment or contract expiration, as applicable, and as otherwise
38-29 required by federal law.
38-30 (d) The notice required by this section is sufficient if the
38-31 notice meets the requirements of Section 8(c)(8), United States
38-32 Housing Act of 1937 (42 U.S.C. Section 1437f(c)(8)).
38-33 SECTION 3.07. (a) The Texas Department of Housing and
38-34 Community Affairs shall adopt the policies and procedures on the
38-35 long-term affordability and safety of multifamily rental housing
38-36 developments under Section 2306.185, Government Code, as added by
38-37 this Act, not later than November 1, 2001.
38-38 (b) The enforcement of the restrictions concerning
38-39 multifamily rental housing developments under Section 2306.185,
38-40 Government Code, as added by this Act, applies only to developments
38-41 that receive assistance from the Texas Department of Housing and
38-42 Community Affairs on or after January 1, 2002.
38-43 (c) The enforcement of restrictions concerning tenant and
38-44 manager selection under Section 2306.269, Government Code, as
38-45 amended by this Act, applies only to housing developments that
38-46 receive assistance from the Texas Department of Housing and
38-47 Community Affairs on or after January 1, 2002.
38-48 (d) The Texas Department of Housing and Community Affairs
38-49 shall create an initial list of multifamily housing developments
38-50 that are ranked by priority as required by Section 2306.803,
38-51 Government Code, as added by this Act, not later than January 1,
38-52 2002.
38-53 (e) If community development block grant funds are
38-54 transferred to another state agency, the Texas Department of
38-55 Housing and Community Affairs shall negotiate a memorandum of
38-56 understanding to permit the implementation of Section 2306.805(c),
38-57 Government Code, as added by this Act.
38-58 (f) The changes in law made by this article apply to a
38-59 multifamily housing development described by Section 2306.851,
38-60 Government Code, as added by this Act, that a property owner
38-61 intends to sell, lease, or otherwise dispose of on or after January
38-62 1, 2002.
38-63 ARTICLE 4
38-64 SECTION 4.01. Subsection (c), Section 2306.072, Government
38-65 Code, is amended to read as follows:
38-66 (c) The report must include:
38-67 (1) a complete operating and financial statement of
38-68 the department;
38-69 (2) a comprehensive statement of the activities of the
39-1 department during the preceding year to address the needs
39-2 identified in the state low income housing plan prepared as
39-3 required by Section 2306.0721, including:
39-4 (A) a statistical and narrative analysis of the
39-5 department's performance in addressing the housing needs of
39-6 individuals and families of low and very low income;
39-7 (B) the ethnic and racial composition of
39-8 individuals and families applying for and receiving assistance from
39-9 each housing-related program operated by the department; and
39-10 (C) the department's progress in meeting the
39-11 goals established in the previous housing plan;
39-12 (3) an explanation of the efforts made by the
39-13 department to ensure the participation of individuals of low income
39-14 and their community-based institutions in department programs that
39-15 affect them;
39-16 (4) a statement of the evidence that the department
39-17 has made an affirmative effort to ensure the involvement of
39-18 individuals of low income and their community-based institutions in
39-19 the allocation of funds and the planning process;
39-20 (5) a statistical analysis, delineated according to
39-21 each ethnic and racial group served by the department, that
39-22 indicates the progress made by the department in implementing the
39-23 state low income housing plan in each of the uniform state service
39-24 regions;
39-25 (6) an analysis, based on information provided by the
39-26 fair housing sponsor reports required under Section 2306.0724 and
39-27 other available data, of fair housing opportunities in each housing
39-28 development that receives financial assistance from the department
39-29 that includes the following information for each housing
39-30 development that contains 20 or more living units:
39-31 (A) the street address and municipality or
39-32 county in which the property is located;
39-33 (B) the telephone number of the property
39-34 management or leasing agent;
39-35 (C) the total number of units, reported by
39-36 bedroom size;
39-37 (D) [(C)] the total number of units, reported by
39-38 bedroom size, designed for individuals who are physically
39-39 challenged or who have special needs and the number of these
39-40 individuals served annually [as reported by each housing sponsor];
39-41 (E) the rent for each type of rental unit,
39-42 reported by bedroom size [(D) a statistical analysis of average
39-43 rents reported by county];
39-44 (F) [(E)] the race or ethnic makeup of each
39-45 project [as reported annually by each housing sponsor];
39-46 (G) [(F)] the number of units occupied by
39-47 individuals receiving government-supported housing assistance and
39-48 the type of assistance received [as reported by each housing
39-49 sponsor];
39-50 (H) the number of units occupied by individuals
39-51 and families of extremely low income, very low income, low income,
39-52 moderate income, and other levels of income;
39-53 (I) [(G)] a statement as to whether the
39-54 department has been notified of a violation of the fair housing law
39-55 that has been filed with the United States Department of Housing
39-56 and Urban Development, the Commission on Human Rights, or the
39-57 United States Department of Justice; and
39-58 (J) [(H)] a statement as to whether the
39-59 development has any instances of material noncompliance with bond
39-60 indentures or deed restrictions discovered through the normal
39-61 monitoring activities and procedures that include meeting occupancy
39-62 requirements or rent restrictions imposed by deed restriction or
39-63 financing agreements; [and]
39-64 (7) a report on the geographic distribution of low
39-65 income housing tax credits, the amount of unused low income housing
39-66 tax credits, and the amount of low income housing tax credits
39-67 received from the federal pool of unused funds from other states;
39-68 and
39-69 (8) a statistical analysis, based on information
40-1 provided by the fair housing sponsor reports required by Section
40-2 2306.0724 and other available data, of average rents reported by
40-3 county.
40-4 SECTION 4.02. Subchapter D, Chapter 2306, Government Code,
40-5 is amended by adding Section 2306.0724 to read as follows:
40-6 Sec. 2306.0724. FAIR HOUSING SPONSOR REPORT. (a) The
40-7 department shall require the owner of each housing development that
40-8 receives financial assistance from the department and that contains
40-9 20 or more living units to submit an annual fair housing sponsor
40-10 report. The report must include the relevant information necessary
40-11 for the analysis required by Section 2306.072(c)(6). In compiling
40-12 the information for the report, the owner of each housing
40-13 development shall use data current as of January 1 of the reporting
40-14 year.
40-15 (b) The department shall adopt rules regarding the procedure
40-16 for filing the report.
40-17 (c) The department shall maintain the reports in electronic
40-18 and hard-copy formats readily available to the public at no cost.
40-19 (d) A housing sponsor who fails to file a report in a timely
40-20 manner is subject to the following sanctions, as determined by the
40-21 department:
40-22 (1) denial of a request for additional funding; or
40-23 (2) an administrative penalty in an amount not to
40-24 exceed $1,000, assessed in the manner provided for an
40-25 administrative penalty under Section 2306.604.
40-26 SECTION 4.03. Section 2306.077, Government Code, is amended
40-27 by adding Subsections (d) and (e) to read as follows:
40-28 (d) The department shall provide for annual housing sponsor
40-29 reports required by Section 2306.0724 to be filed through the
40-30 Internet.
40-31 (e) The department shall provide for reports regarding
40-32 housing units designed for persons with disabilities made under
40-33 Section 2306.078 to be filed through the Internet.
40-34 SECTION 4.04. Subchapter D, Chapter 2306, Government Code,
40-35 is amended by adding Section 2306.078 to read as follows:
40-36 Sec. 2306.078. INFORMATION REGARDING HOUSING FOR PERSONS
40-37 WITH DISABILITIES. (a) The department shall establish a system
40-38 that requires owners of state or federally assisted housing
40-39 developments with 20 or more housing units to report information
40-40 regarding housing units designed for persons with disabilities.
40-41 (b) The system must provide for each owner of a development
40-42 described by Subsection (a) with at least one housing unit designed
40-43 for a person with a disability to enter the following information
40-44 on the department's Internet site:
40-45 (1) the name, if any, of the development;
40-46 (2) the street address of the development;
40-47 (3) the number of housing units in the development
40-48 that are designed for persons with disabilities and that are
40-49 available for lease;
40-50 (4) the number of bedrooms in each housing unit
40-51 designed for a person with a disability;
40-52 (5) the special features that characterize each
40-53 housing unit's suitability for a person with a disability;
40-54 (6) the rent for each housing unit designed for a
40-55 person with a disability; and
40-56 (7) the telephone number and name of the development
40-57 manager or agent to whom inquiries by prospective tenants may be
40-58 made.
40-59 (c) The department shall solicit each owner's voluntary
40-60 provision of updated information under Subsections (b)(3) and (6)
40-61 and shall require the owner to maintain updated contact information
40-62 under Subsection (b)(7).
40-63 (d) The department shall make information provided under
40-64 this section available to the public in electronic and hard-copy
40-65 formats at no cost.
40-66 ARTICLE 5
40-67 SECTION 5.01. Subchapter D, Chapter 2306, Government Code,
40-68 is amended by adding Sections 2306.079 and 2306.080 to read as
40-69 follows:
41-1 Sec. 2306.079. REGIONAL DEVELOPMENT COORDINATOR. (a) In
41-2 this section:
41-3 (1) "Regional development coordinator" means a person
41-4 employed by or under contract with the department to perform the
41-5 duties described by this section.
41-6 (2) "Regional partner" means an entity such as a
41-7 regional planning commission, political subdivision, local
41-8 nonprofit organization, institution of higher education, community
41-9 housing development organization, housing finance corporation,
41-10 public housing authority, agricultural extension agent, local bank,
41-11 or field office or service center of the United States Department
41-12 of Agriculture Rural Development Texas that is engaged in
41-13 data-gathering projects related to the goals of the department.
41-14 (b) The department shall employ or contract with a regional
41-15 development coordinator for each uniform state service region of
41-16 this state. The primary responsibilities of a regional development
41-17 coordinator are:
41-18 (1) assisting local communities in determining how to
41-19 address affordable housing and community development needs;
41-20 (2) establishing regional planning and
41-21 resource-sharing partnerships; and
41-22 (3) facilitating the leveraging of available local,
41-23 state, and federal funds.
41-24 (c) A regional development coordinator shall:
41-25 (1) gather and manage data about affordable housing
41-26 and community development needs in the uniform state service region
41-27 the coordinator represents by:
41-28 (A) identifying and working with regional
41-29 partners;
41-30 (B) using a variety of data resources,
41-31 including:
41-32 (i) the United States Census Bureau;
41-33 (ii) the United States Department of
41-34 Housing and Urban Development;
41-35 (iii) the Texas State Data Center;
41-36 (iv) the Texas Real Estate Research
41-37 Center; and
41-38 (v) the office of the comptroller, the
41-39 Texas Department of Economic Development, and other state agencies;
41-40 (C) developing an analysis of the region's
41-41 affordable housing and community development needs based on the
41-42 data gathered and local and regional input; and
41-43 (D) establishing a framework for sharing the
41-44 data with the regional partners;
41-45 (2) use the data described by Subdivision (1) to
41-46 facilitate the development of a regional plan and shall encourage
41-47 the consensus of the regional partners concerning the plan;
41-48 (3) identify statewide and national partners for
41-49 meeting the region's affordable housing and community development
41-50 needs, including the United States Department of Housing and Urban
41-51 Development, the United States Department of Agriculture Rural
41-52 Development Texas, the Texas State Affordable Housing Corporation,
41-53 statewide nonprofit entities, banking associations, developer
41-54 associations, and foundations; and
41-55 (4) provide an information clearinghouse for the
41-56 region that facilitates planning and resource sharing by
41-57 identifying programs that leverage local, state, and federal
41-58 financial aid.
41-59 (d) In each uniform state service region, the regional
41-60 planning commission and other regional partners shall establish an
41-61 advisory committee consisting of representatives of two or more
41-62 regional partners that shall:
41-63 (1) advise the department regarding the affordable
41-64 housing and community development needs of that region;
41-65 (2) assist the department in:
41-66 (A) assigning priorities to the affordable
41-67 housing and community development needs of that region;
41-68 (B) identifying resources to address those
41-69 needs; and
42-1 (C) implementing the low-income housing plan as
42-2 applied to that region; and
42-3 (3) request and gather from political subdivisions and
42-4 other appropriate entities any affordable housing and community
42-5 development plans that are relevant to the development of the
42-6 regional plan described by Subsection (c), including local plans,
42-7 regional plans from regional planning commissions, and plans
42-8 developed for the United States Department of Housing and Urban
42-9 Development consolidated planning process.
42-10 Sec. 2306.080. DATABASE INFORMATION SPECIALIST. The
42-11 director shall appoint a database information specialist. The
42-12 primary responsibility of the database information specialist is to
42-13 provide for the effective and efficient dissemination to the public
42-14 of information related to affordable housing and community
42-15 development in a form that is accessible, widely available, and
42-16 easily used.
42-17 ARTICLE 6
42-18 SECTION 6.01. Section 2306.583, Government Code, is amended
42-19 to read as follows:
42-20 Sec. 2306.583. SELF-HELP CENTERS: DESIGNATION. (a) The
42-21 department shall designate[:]
42-22 [(1)] a geographic area for the services provided by
42-23 each self-help center.
42-24 (b) In consultation with the colonia advisory committee and
42-25 the appropriate self-help center, the department shall designate[;
42-26 and]
42-27 [(2)] five colonias in each service area to receive
42-28 concentrated attention from that center.
42-29 (c) In consultation with the colonia advisory committee and
42-30 the appropriate self-help center, the [(b) The] department may
42-31 change the designation of colonias made under Subsection (b)
42-32 [(a)(2)].
42-33 SECTION 6.02. Section 2306.586, Government Code, is amended
42-34 by adding Subsection (e) to read as follows:
42-35 (e) Through a self-help center, a colonia resident may apply
42-36 for any direct loan or grant program operated by the department.
42-37 SECTION 6.03. Section 2306.587, Government Code, is amended
42-38 to read as follows:
42-39 Sec. 2306.587. OPERATION OF SELF-HELP CENTER; MONITORING.
42-40 (a) To operate a self-help center, the [The] department shall,
42-41 subject to the availability of revenue for that purpose, enter into
42-42 a four-year contract directly [for the operation of a self-help
42-43 center] with a local nonprofit organization, including a local
42-44 community action agency that qualifies as an eligible entity under
42-45 42 U.S.C. Section 9902, or a local housing authority that has
42-46 demonstrated the ability to carry out the functions of a self-help
42-47 center under this subchapter.
42-48 (b) The department is solely responsible for contract
42-49 oversight and for the monitoring of self-help centers under this
42-50 subchapter.
42-51 (c) The department and the self-help centers may apply for
42-52 and receive public or private gifts or grants to enable the centers
42-53 to achieve their purpose.
42-54 SECTION 6.04. Subsection (a), Section 2306.589, Government
42-55 Code, is amended to read as follows:
42-56 (a) The department shall establish a fund in the department
42-57 designated as the colonia set-aside fund. The department may
42-58 contribute money to the fund from any available source of revenue
42-59 that the department considers appropriate to implement the purposes
42-60 of this subchapter, except that the department may not use federal
42-61 community development block grant money authorized by Title I of
42-62 the Housing and Community Development Act of 1974 (42 U.S.C.
42-63 Section 5301 et seq.) unless the money is specifically appropriated
42-64 by the legislature for that purpose.
42-65 SECTION 6.05. Subsections (a) and (b), Section 2306.753,
42-66 Government Code, are amended to read as follows:
42-67 (a) Subject to this section, the department shall establish
42-68 eligibility requirements for an owner-builder to receive a loan
42-69 under this subchapter. The eligibility requirements must establish
43-1 a priority for loans made under this subchapter to owner-builders
43-2 with an annual income, as determined under Subsection (b)(1)
43-3 [(b)(2)], of less than $17,500.
43-4 (b) To be eligible for a loan under this subchapter, an
43-5 owner-builder:
43-6 (1) [must reside with at least two other persons
43-7 related to the owner-builder in the first degree by consanguinity
43-8 or affinity, as determined under Subchapter B, Chapter 573;]
43-9 [(2)] may not have an annual income that exceeds 60
43-10 percent, as determined by the department, of the greater of the
43-11 state or local median family income, when combined with the income
43-12 of any person who resides with the owner-builder;
43-13 (2) [(3)] must have resided in this state for the
43-14 preceding six months;
43-15 (3) [(4)] must have successfully completed an
43-16 owner-builder education class under Section 2306.756; and
43-17 (4) [(5)] must agree to:
43-18 (A) provide at least 60 percent of the labor
43-19 necessary to build the proposed housing by working through a
43-20 state-certified owner-builder housing program; or
43-21 (B) provide an amount of labor equivalent to the
43-22 amount required under Paragraph (A) in connection with building
43-23 housing for others through a state-certified nonprofit
43-24 owner-builder housing program.
43-25 SECTION 6.06. Subsections (a) and (b), Section 2306.754,
43-26 Government Code, are amended to read as follows:
43-27 (a) The department may establish the minimum amount of a
43-28 loan under this subchapter, but a loan may not exceed $30,000
43-29 [$25,000].
43-30 (b) If it is not possible for an owner-builder to purchase
43-31 necessary real property and build adequate housing for $30,000
43-32 [$25,000], the owner-builder must obtain the amount necessary that
43-33 exceeds $30,000 [$25,000] from one or more local governmental
43-34 entities, nonprofit organizations, or private lenders. The total
43-35 amount of loans made by the department and other entities to an
43-36 owner-builder under this subchapter may not exceed $60,000.
43-37 SECTION 6.07. Section 2306.755, Government Code, is amended
43-38 to read as follows:
43-39 Sec. 2306.755. NONPROFIT OWNER-BUILDER HOUSING PROGRAMS.
43-40 (a) The department may certify nonprofit owner-builder housing
43-41 programs operated by a tax-exempt organization listed under Section
43-42 501(c)(3), Internal Revenue Code of 1986, to:
43-43 (1) qualify potential owner-builders for loans under
43-44 this subchapter;
43-45 (2) provide owner-builder education classes under
43-46 Section 2306.756;
43-47 (3) assist owner-builders in building housing; and
43-48 (4) originate or service [administer] loans made [by
43-49 the department] under this subchapter.
43-50 (b) The department by rule shall adopt procedures for the
43-51 certification of nonprofit owner-builder housing programs under
43-52 this section.
43-53 SECTION 6.08. Section 2306.758, Government Code, is amended
43-54 by amending Subsection (b) and adding Subsection (c) to read as
43-55 follows:
43-56 (b) The department may also make loans under this subchapter
43-57 from:
43-58 (1) available funds in the housing trust fund
43-59 established under Section 2306.201;
43-60 (2) federal block grants that may be used for the
43-61 purposes of this subchapter; and
43-62 (3) the owner-builder revolving loan fund established
43-63 under Section 2306.7581 [amounts received by the department in
43-64 repayment of loans made under this subchapter].
43-65 (c) In a state fiscal year, the department may use not more
43-66 than 10 percent of the revenue available for purposes of this
43-67 subchapter to enhance the ability of tax-exempt organizations
43-68 described by Section 2306.755(a) to implement the purposes of this
43-69 chapter.
44-1 SECTION 6.09. Subchapter FF, Chapter 2306, Government Code,
44-2 is amended by adding Section 2306.7581 to read as follows:
44-3 Sec. 2306.7581. OWNER-BUILDER REVOLVING LOAN FUND. (a) The
44-4 department shall establish an owner-builder revolving loan fund in
44-5 the department for the sole purpose of funding loans under this
44-6 subchapter.
44-7 (a-1) Each state fiscal year the department shall transfer
44-8 at least $3 million to the owner-builder revolving loan fund from
44-9 money received under the federal HOME Investment Partnerships
44-10 program established under Title II of the Cranston-Gonzalez
44-11 National Affordable Housing Act (42 U.S.C. Section 12701 et seq.),
44-12 from money in the housing trust fund, or from money appropriated by
44-13 the legislature to the department. This subsection expires August
44-14 31, 2010.
44-15 (b) The department shall deposit money received in repayment
44-16 of a loan under this subchapter to the owner-builder revolving loan
44-17 fund.
44-18 SECTION 6.10. Chapter 2306, Government Code, is amended by
44-19 adding Subchapter GG to read as follows:
44-20 SUBCHAPTER GG. COLONIA MODEL SUBDIVISION PROGRAM
44-21 Sec. 2306.781. DEFINITION. In this subchapter, "program"
44-22 means the colonia model subdivision program established under this
44-23 subchapter.
44-24 Sec. 2306.782. ESTABLISHMENT OF PROGRAM. The department
44-25 shall establish the colonia model subdivision program to promote
44-26 the development of new, high-quality, residential subdivisions that
44-27 provide:
44-28 (1) alternatives to substandard colonias; and
44-29 (2) housing options affordable to individuals and
44-30 families of extremely low and very low income who would otherwise
44-31 move into substandard colonias.
44-32 Sec. 2306.783. COLONIA MODEL SUBDIVISION REVOLVING LOAN
44-33 FUND. (a) The department shall establish a colonia model
44-34 subdivision revolving loan fund in the department. Money in the
44-35 fund may be used only for purposes of the program.
44-36 (a-1) The department may transfer money into the colonia
44-37 model subdivision revolving loan fund using any available source of
44-38 revenue.
44-39 (a-2) On application, the department may provide a loan
44-40 under this subchapter through an eligible political subdivision
44-41 using money from the portion of community development block grant
44-42 that is set aside under federal law to provide financial assistance
44-43 to colonias. In a state fiscal year, the department may not
44-44 provide loans under this subchapter using more than $2 million from
44-45 the set-aside for colonias.
44-46 (a-3) Subsections (a-1) and (a-2) and this subsection expire
44-47 August 31, 2010.
44-48 (b) The department shall deposit money received in repayment
44-49 of loans under this subchapter to the colonia model subdivision
44-50 revolving loan fund.
44-51 Sec. 2306.784. SUBDIVISION COMPLIANCE. Any subdivision
44-52 created with assistance from the colonia model subdivision
44-53 revolving loan fund must fully comply with all state and local
44-54 laws, including any process established under state or local law
44-55 for subdividing real property.
44-56 Sec. 2306.785. PROGRAM LOANS. (a) The department may make
44-57 loans under the program only to:
44-58 (1) colonia self-help centers established under
44-59 Subchapter Z; and
44-60 (2) community housing development organizations
44-61 certified by the department.
44-62 (b) A loan made under the program may be used only for the
44-63 payment of:
44-64 (1) costs associated with the purchase of real
44-65 property;
44-66 (2) costs of surveying, platting, and subdividing or
44-67 resubdividing real property;
44-68 (3) fees, insurance costs, or recording costs
44-69 associated with the development of the subdivision;
45-1 (4) costs of providing proper infrastructure necessary
45-2 to support residential uses;
45-3 (5) real estate commissions and marketing fees; and
45-4 (6) any other costs as the department by rule
45-5 determines to be reasonable and prudent to advance the purposes of
45-6 this subchapter.
45-7 (c) A loan made by the department under the program may not
45-8 bear interest and may not exceed a term of 36 months.
45-9 (d) The department may offer a borrower under the program
45-10 one loan renewal for each subdivision.
45-11 Sec. 2306.786. ADMINISTRATION OF PROGRAM; RULES. (a) In
45-12 administering the program, the department by rule shall adopt:
45-13 (1) any subdivision standards in excess of local
45-14 standards the department considers necessary;
45-15 (2) loan application procedures;
45-16 (3) program guidelines; and
45-17 (4) contract award procedures.
45-18 (b) The department shall adopt rules to:
45-19 (1) ensure that a borrower under the program sells
45-20 real property under the program only to an individual borrower,
45-21 nonprofit housing developer, or for-profit housing developer for
45-22 the purposes of constructing residential dwelling units; and
45-23 (2) require a borrower under the program to convey
45-24 real property under the program at a cost that is affordable to:
45-25 (A) individuals and families of extremely low
45-26 income; or
45-27 (B) individuals and families of very low income.
45-28 SECTION 6.11. Subchapter B, Chapter 11, Tax Code, is amended
45-29 by adding Section 11.184 to read as follows:
45-30 Sec. 11.184. COLONIA MODEL SUBDIVISION PROGRAM. (a) An
45-31 organization is entitled to an exemption from taxation of
45-32 unimproved real property it owns if the organization:
45-33 (1) meets the requirements of a charitable
45-34 organization provided by Sections 11.18(e) and (f);
45-35 (2) purchased the property or is developing the
45-36 property with proceeds of a loan made by the Texas Department of
45-37 Housing and Community Affairs under the colonia model subdivision
45-38 program under Subchapter GG, Chapter 2306, Government Code; and
45-39 (3) owns the property for the purpose of developing a
45-40 model colonia subdivision.
45-41 (b) Property may not be exempted under Subsection (a) after
45-42 the fifth anniversary of the date the organization acquires the
45-43 property.
45-44 (c) An organization entitled to an exemption under
45-45 Subsection (a) is also entitled to an exemption from taxation of
45-46 any building or tangible personal property the organization owns
45-47 and uses in the administration of its acquisition, building,
45-48 repair, or sale of property. To qualify for an exemption under
45-49 this subsection, property must be used exclusively by the
45-50 charitable organization, except that another individual or
45-51 organization may use the property for activities incidental to the
45-52 charitable organization's use that benefit the beneficiaries of the
45-53 charitable organization.
45-54 (d) For the purposes of Subsection (e), the chief appraiser
45-55 shall determine the market value of property exempted under
45-56 Subsection (a) and shall record the market value in the appraisal
45-57 records.
45-58 (e) If the organization that owns improved or unimproved
45-59 real property that has been exempted under Subsection (a) sells the
45-60 property to a person other than a person described by Section
45-61 2306.786(b)(1), Government Code, a penalty is imposed on the
45-62 property equal to the amount of the taxes that would have been
45-63 imposed on the property in each tax year that the property was
45-64 exempted from taxation under Subsection (a), plus interest at an
45-65 annual rate of 12 percent computed from the dates on which the
45-66 taxes would have become due.
45-67 SECTION 6.12. If the administration of the federal community
45-68 development block grant program is transferred to an agency other
45-69 than the Texas Department of Housing and Community Affairs, the new
46-1 administering agency shall enter into a memorandum of understanding
46-2 with the Texas Department of Housing and Community Affairs to
46-3 permit the housing department to receive and administer the portion
46-4 of community development block grant money specifically allocated
46-5 under the General Appropriations Act to fund the operation of
46-6 colonia self-help centers. The memorandum must require the new
46-7 administering agency to transfer to the housing department a
46-8 portion of the agency's total administrative funds in the same
46-9 ratio that the portion of community development block grant money
46-10 allocated for the self-help centers bears to the total yearly
46-11 allocation of community development block grant money. The
46-12 memorandum must require the new administering agency to continue to
46-13 fund the housing department's border field offices through the
46-14 community development block grant program and must require the
46-15 housing department to exercise oversight and supervision over those
46-16 field offices and staff.
46-17 SECTION 6.13. Section 2306.760, Government Code, is
46-18 repealed.
46-19 ARTICLE 7
46-20 SECTION 7.01. Subchapter B, Chapter 1372, Government Code,
46-21 is amended by adding Section 1372.0231 to read as follows:
46-22 Sec. 1372.0231. DEDICATION OF PORTION OF STATE CEILING
46-23 AVAILABLE FOR QUALIFIED RESIDENTIAL RENTAL PROJECT BONDS.
46-24 (a) Until August 15, of that portion of the state ceiling that is
46-25 available exclusively for reservations by issuers of qualified
46-26 residential rental project bonds:
46-27 (1) 25 percent is available exclusively to the Texas
46-28 Department of Housing and Community Affairs in the manner described
46-29 by Subsection (b); and
46-30 (2) 75 percent is available exclusively to housing
46-31 finance corporations in the manner described by Subsections
46-32 (c)-(e).
46-33 (b) With respect to the amount of the state ceiling set
46-34 aside under Subsection (a)(1), the board shall grant reservations:
46-35 (1) in the order determined by the board by lot; and
46-36 (2) in a manner that ensures that:
46-37 (A) the set-aside amount is used for proposed
46-38 projects that are located throughout the state; and
46-39 (B) not more than 50 percent of the set-aside
46-40 amount is used for proposed projects that are located in qualified
46-41 census tracts as defined by Section 143(j), Internal Revenue Code
46-42 of 1986.
46-43 (c) Before June 1, the board shall apportion the amount of
46-44 state ceiling set aside under Subsection (a)(2) among the uniform
46-45 state service regions according to the percentage of the state's
46-46 population that resides in each of those regions.
46-47 (d) For the uniform state service regions containing Austin,
46-48 Dallas, and Houston, the board shall additionally apportion the
46-49 amount of the state ceiling set aside for each of those regions
46-50 under Subsection (c) within the region according to the percentage
46-51 of the region's population that resides in a metropolitan
46-52 statistical area and the percentage of the region's population that
46-53 resides outside of a metropolitan statistical area. With respect
46-54 to the amount of the state ceiling set aside for a metropolitan
46-55 statistical area under this subsection, the board shall grant
46-56 reservations in a manner that ensures that not more than 50 percent
46-57 of that set-aside amount is used for proposed projects that are
46-58 located in qualified census tracts as defined by Section 143(j),
46-59 Internal Revenue Code of 1986.
46-60 (e) In each area described by Subsection (c) or (d), the
46-61 board shall grant reservations based on the priority levels of
46-62 proposed projects as described by Section 1372.032.
46-63 (f) On or after June 1, the board may not grant available
46-64 reservations to housing finance corporations described by
46-65 Subsection (a) based on uniform state service regions or any
46-66 segments of those regions.
46-67 SECTION 7.02. Subsection (a), Section 1372.026, Government
46-68 Code, is amended to read as follows:
46-69 (a) The maximum amount of the state ceiling that may be
47-1 reserved before August 15 [September 1] by a housing finance
47-2 corporation for the issuance of qualified mortgage bonds may not
47-3 exceed the amount computed as follows [by multiplying the local
47-4 population of the corporation by]:
47-5 (1) [$50,] if the local population of the housing
47-6 finance corporation is 300,000 or more, $22.5 million plus the
47-7 product of the amount by which the local population exceeds 300,000
47-8 multiplied by $11.25;
47-9 (2) [$75,] if the local population of the housing
47-10 finance corporation is 200,000 or more but less than 300,000, $20
47-11 million plus the product of the amount by which the local
47-12 population exceeds 200,000 multiplied by $22.5;
47-13 (3) [$100,] if the local population of the housing
47-14 finance corporation is 100,000 or more but less than 200,000, $15
47-15 million plus the product of the amount by which the local
47-16 population exceeds 100,000 multiplied by $50; or
47-17 (4) [$150,] if the local population of the housing
47-18 finance corporation is less than 100,000, the product of the local
47-19 population multiplied by $150.
47-20 SECTION 7.03. Subchapter B, Chapter 1372, Government Code,
47-21 is amended by adding Section 1372.0261 to read as follows:
47-22 Sec. 1372.0261. FAILURE OF HOUSING FINANCE CORPORATION TO
47-23 USE AMOUNT OF STATE CEILING ALLOCATED. (a) In this section,
47-24 "utilization percentage" means that portion of the amount of the
47-25 state ceiling allocated to a housing finance corporation with
47-26 respect to which the corporation issues private activity bonds that
47-27 result in mortgage loans or mortgage credit certificates. A
47-28 housing finance corporation's utilization percentage for an
47-29 allocation of the state ceiling is the quotient of:
47-30 (1) the amount of state ceiling used to purchase
47-31 mortgages or mortgage-backed securities or the amount of the state
47-32 ceiling used to issue mortgage credit certificates; divided by
47-33 (2) the amount of the state ceiling allocated, minus
47-34 any amounts of the state ceiling required for debt service reserve
47-35 funds.
47-36 (b) If a housing finance corporation's issue of bonds uses a
47-37 new allocation of the state ceiling in combination with taxable
47-38 bond proceeds or with bond proceeds recycled from previous
47-39 allocations of the state ceiling, the first loans or certificates
47-40 financed are considered in computing the utilization percentage of
47-41 the new allocation of the state ceiling.
47-42 (c) If a housing finance corporation's utilization
47-43 percentage is less than 95 percent, the next time the corporation
47-44 becomes eligible for a reservation of the state ceiling, the
47-45 maximum amount of state ceiling that may be reserved for the
47-46 corporation is equal to the amount for which the corporation would
47-47 otherwise be eligible under Section 1372.026 multiplied by the
47-48 utilization percentage of the corporation's last bond issue that
47-49 used an allocation of the state ceiling.
47-50 (d) A housing finance corporation may not be penalized under
47-51 Subsection (c) if:
47-52 (1) the corporation fails to use:
47-53 (A) bond proceeds recycled from previous
47-54 allocations of the state ceiling; or
47-55 (B) taxable bond proceeds; or
47-56 (2) as the result of an issuance of bonds, the
47-57 corporation's utilization percentage is 95 percent or greater.
47-58 SECTION 7.04. Section 1372.031, Government Code, is amended
47-59 to read as follows:
47-60 Sec. 1372.031. PRIORITIES FOR RESERVATIONS AMONG CERTAIN
47-61 ISSUERS. If, on or before October 20, more than one issuer in a
47-62 category described by Section 1372.022(a)(2), (3), [(4),] or (6)
47-63 applies for a reservation of the state ceiling for the next program
47-64 year, the board shall grant reservations in that category in the
47-65 order determined by the board by lot.
47-66 SECTION 7.05. The heading to Section 1372.032, Government
47-67 Code, is amended to read as follows:
47-68 Sec. 1372.032. PRIORITIES FOR RESERVATIONS AMONG ISSUERS OF
47-69 QUALIFIED MORTGAGE BONDS [HOUSING FINANCE CORPORATIONS].
48-1 SECTION 7.06. (a) Subchapter B, Chapter 1372, Government
48-2 Code, is amended to conform to Section 2, Chapter 131, Acts of the
48-3 76th Legislature, Regular Session, 1999, by adding Section
48-4 1372.0321 and is further amended to read as follows:
48-5 Sec. 1372.0321. PRIORITIES FOR RESERVATIONS AMONG ISSUERS OF
48-6 QUALIFIED RESIDENTIAL RENTAL PROJECT ISSUES. (a) In granting
48-7 reservations to issuers of qualified residential rental project
48-8 issues, the board shall:
48-9 (1) give first priority to:
48-10 (A) projects in which 100 percent of the
48-11 residential units in the projects are under the restriction that
48-12 the maximum allowable rents are an amount equal to 30 percent of 50
48-13 percent of the area median family income minus an allowance for
48-14 utility costs authorized under the federal low-income housing tax
48-15 credit program; and
48-16 (B) on or after June 1, projects that are
48-17 located in counties, metropolitan statistical areas, or primary
48-18 metropolitan statistical areas with area median family incomes at
48-19 or below the statewide median family income established by the
48-20 United States Department of Housing and Urban Development;
48-21 (2) give second priority to projects in which 100
48-22 percent of the residential units in the projects are under the
48-23 restriction that the maximum allowable rents are an amount equal to
48-24 30 percent of 60 percent of the area median family income minus an
48-25 allowance for utility costs authorized under the federal low-income
48-26 housing tax credit program; and
48-27 (3) give third priority to any other qualified
48-28 residential rental project.
48-29 (b) The board may not reserve a portion of the state ceiling
48-30 for a first or second priority project described by Subsection (a)
48-31 unless the board receives evidence that an application has been
48-32 filed with the Texas Department of Housing and Community Affairs
48-33 for the low-income housing tax credit that is available for
48-34 multifamily transactions that are at least 51 percent financed by
48-35 tax-exempt private activity bonds.
48-36 (b) Section 2, Chapter 131, Acts of the 76th Legislature,
48-37 Regular Session, 1999, is repealed.
48-38 SECTION 7.07. Section 1372.0261, Government Code, as added
48-39 by this article, applies only to a reservation of state ceiling
48-40 granted on or after January 1, 2002.
48-41 ARTICLE 8
48-42 SECTION 8.01. This Act takes effect September 1, 2001.
48-43 * * * * *