By Bernsen                                             S.B. No. 929
         77R3242 QS-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a restriction on the financing of multifamily
 1-3     residential developments by housing finance corporations.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter Z, Chapter 394, Local Government Code,
 1-6     is amended by adding Section 394.9025 to read as follows:
 1-7           Sec. 394.9025.  MULTIFAMILY RESIDENTIAL DEVELOPMENT.  A
 1-8     housing finance corporation may not finance a multifamily
 1-9     residential development unless at least 50 percent of the units in
1-10     the residential development are reserved for the lifetime of the
1-11     residential development for occupancy by individuals and families
1-12     earning less than 100 percent of the area median family income.
1-13           SECTION 2.  The change in law made by Section 394.9025, Local
1-14     Government Code, as added by this Act, applies only to a
1-15     multifamily residential development that is financed by bonds
1-16     issued under Chapter 394, Local Government Code, as a result of an
1-17     official decision to issue bonds that occurs on or after the
1-18     effective date of this Act.
1-19           SECTION 3.  This Act takes effect August 31, 2002.