1-1     By:  Carona                                           S.B. No. 1287
 1-2           (In the Senate - Filed March 8, 2001; March 12, 2001, read
 1-3     first time and referred to Committee on Intergovernmental
 1-4     Relations; March 28, 2001, reported favorably by the following
 1-5     vote:  Yeas 7, Nays 0; March 28, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the financing of certain housing and nonhousing
 1-9     facilities by a housing finance corporation.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subdivision (13), Section 394.003, Local
1-12     Government Code, is amended to read as follows:
1-13                 (13)  "Residential development" means the acquisition,
1-14     construction, reconstruction, rehabilitation, repair, alteration,
1-15     improvement, or extension of any of the following items or any
1-16     combination of the following items for the purpose of providing
1-17     decent, safe, and sanitary housing and nonhousing facilities that
1-18     are an integral part of or are functionally related to any
1-19     affordable housing project, whether in one or multiple locations,
1-20     including any facilities used for the purpose of delivering tenant
1-21     services, as defined by Section 2306.254, Government Code:
1-22                       (A)  land, an interest in land, a building or
1-23     other structure, facility, system, fixture, improvement, addition,
1-24     appurtenance, or machinery or other equipment;
1-25                       (B)  real or personal property considered
1-26     necessary in connection with an item described by Paragraph (A); or
1-27                       (C)  real or personal property or improvements
1-28     functionally related and subordinate to an item described by
1-29     Paragraph (A).
1-30           SECTION 2.  Subsection (a), Section 394.037, Local Government
1-31     Code, is amended to read as follows:
1-32           (a)  A housing finance corporation may issue bonds to defray,
1-33     in whole or in part:
1-34                 (1)  the development costs of a residential
1-35     development; [or]
1-36                 (2)  the costs of purchasing or funding the making of
1-37     home mortgages, either on a first-come, first-served basis or by
1-38     selling lender commitments, including the costs of studies and
1-39     surveys, insurance premiums, financial advisory services, mortgage
1-40     banking services, administrative services, underwriting fees, legal
1-41     services, accounting services, and marketing services incurred in
1-42     connection with the issuance and sale of the bonds, including bond
1-43     and interest reserve accounts, capitalized interest accounts, and
1-44     trustee, custodian, and rating agency fees; or
1-45                 (3)  any other costs associated with the provision of
1-46     decent, safe, and sanitary housing and nonhousing facilities that
1-47     are an integral part of or are functionally related to an
1-48     affordable housing project.
1-49           SECTION 3.  This Act takes effect immediately if it receives
1-50     a vote of two-thirds of all the members elected to each house, as
1-51     provided by Section 39, Article III, Texas Constitution.  If this
1-52     Act does not receive the vote necessary for immediate effect, this
1-53     Act takes effect September 1, 2001.
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