By:  Carona                                           S.B. No. 1287
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the financing of certain housing and nonhousing
 1-3     facilities by a housing finance corporation.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subdivision (13), Section 394.003, Local
 1-6     Government Code, is amended to read as follows:
 1-7                 (13)  "Residential development" means the acquisition,
 1-8     construction, reconstruction, rehabilitation, repair, alteration,
 1-9     improvement, or extension of any of the following items or any
1-10     combination of the following items for the purpose of providing
1-11     decent, safe, and sanitary housing and nonhousing facilities that
1-12     are an integral part of or are functionally related to any
1-13     affordable housing project, whether in one or multiple locations,
1-14     including any facilities used for the purpose of delivering tenant
1-15     services, as defined by Section 2306.254, Government Code:
1-16                       (A)  land, an interest in land, a building or
1-17     other structure, facility, system, fixture, improvement, addition,
1-18     appurtenance, or machinery or other equipment;
1-19                       (B)  real or personal property considered
1-20     necessary in connection with an item described by Paragraph (A); or
1-21                       (C)  real or personal property or improvements
1-22     functionally related and subordinate to an item described by
1-23     Paragraph (A).
1-24           SECTION 2.  Subsection (a), Section 394.037, Local Government
1-25     Code, is amended to read as follows:
 2-1           (a)  A housing finance corporation may issue bonds to defray,
 2-2     in whole or in part:
 2-3                 (1)  the development costs of a residential
 2-4     development; [or]
 2-5                 (2)  the costs of purchasing or funding the making of
 2-6     home mortgages, either on a first-come, first-served basis or by
 2-7     selling lender commitments, including the costs of studies and
 2-8     surveys, insurance premiums, financial advisory services, mortgage
 2-9     banking services, administrative services, underwriting fees, legal
2-10     services, accounting services, and marketing services incurred in
2-11     connection with the issuance and sale of the bonds, including bond
2-12     and interest reserve accounts, capitalized interest accounts, and
2-13     trustee, custodian, and rating agency fees; or
2-14                 (3)  any other costs associated with the provision of
2-15     decent, safe, and sanitary housing and nonhousing facilities that
2-16     are an integral part of or are functionally related to an
2-17     affordable housing project.
2-18           SECTION 3.  This Act takes effect immediately if it receives
2-19     a vote of two-thirds of all the members elected to each house, as
2-20     provided by Section 39, Article III, Texas Constitution.  If this
2-21     Act does not receive the vote necessary for immediate effect, this
2-22     Act takes effect September 1, 2001.