By: Carona S.B. No. 1343
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the private activity bond allocation program.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 1372.022, Government Code, is amended by
1-5 amending Subsection (b) and adding Subsection (c) to read as
1-6 follows:
1-7 (b) If the state ceiling is computed on the basis of $75 per
1-8 capita or a greater amount, before August 15 of each year:
1-9 (1) 33.33 percent of the state ceiling is available
1-10 exclusively for reservations by issuers of qualified mortgage
1-11 bonds;
1-12 (2) 7.33 percent of the state ceiling is available
1-13 exclusively for reservations by issuers of state-voted issues;
1-14 (3) 5 percent of the state ceiling is available
1-15 exclusively for reservations by issuers of qualified small issue
1-16 bonds and enterprise zone facility bonds;
1-17 (4) 25 percent of the state ceiling is available
1-18 exclusively for reservations by issuers of qualified residential
1-19 rental project bonds;
1-20 (5) 7 percent of the state ceiling is available
1-21 exclusively for reservations by issuers of qualified student loan
1-22 bonds authorized by Section 53.47, Education Code; and
1-23 (6) 22.34 percent of the state ceiling is available
2-1 exclusively for reservation by any other issuer of bonds that
2-2 require an allocation.
2-3 (c) On and after August 15 but before September 1, that
2-4 portion of the state ceiling available for reservations becomes
2-5 available for qualified residential rental project issues in the
2-6 manner described by Section 1372.032. On and after September 1,
2-7 that portion of the state ceiling available for reservations
2-8 becomes available to any issuer for any bonds that require an
2-9 allocation, subject to the provisions of this subchapter.
2-10 SECTION 2. Subchapter B, Chapter 1372, Government Code, is
2-11 amended by adding Section 1372.0231 to read as follows:
2-12 SEC. 1372.0231. DEDICATION OF PORTION OF STATE CEILING
2-13 AVAILABLE FOR QUALIFIED RESIDENTIAL RENTAL PROJECT BONDS. Until
2-14 August 15, of that portion of the state ceiling that is available
2-15 exclusively for reservations by issuers of qualified residential
2-16 rental project bonds:
2-17 (1) 25 percent is available exclusively to the Texas
2-18 Department of Housing and Community Affairs to be used for
2-19 qualified residential rental projects throughout the state; and
2-20 (2) 75 percent is available exclusively to housing finance
2-21 corporations to be distributed as follows: (a) before June 1,
2-22 this amount of state ceiling shall be set aside, proportionately,
2-23 for the eleven Uniform State Service Regions according to a formula
2-24 based on the percentage of the state's population that resides
2-25 within each of the eleven regions. For region 3, region 6, and
2-26 region 7, the corresponding amounts available to the regions shall
3-1 be further apportioned according to the percentage of the region's
3-2 population located within a Metropolitan Statistical Area and the
3-3 percentage of the region's population located outside of the
3-4 Metropolitan Statistical Areas. Within each regional set aside,
3-5 the board shall issue reservations based on the priority level of
3-6 the project, as described in Section 1372.032; (b) on or after
3-7 June 2 but before August 15, any available reservations for
3-8 residential rental project issues shall be issued based on
3-9 priority, without regard to region, as described in Section
3-10 1372.032.
3-11 SECTION 3. Section 1372.026, Government Code, is amended to
3-12 read as follows:
3-13 Sec. 1372.026. LIMITATION ON AMOUNT OF STATE CEILING
3-14 AVAILABLE TO HOUSING FINANCE CORPORATIONS. (a) The maximum amount
3-15 of the state ceiling that may be reserved before August 15
3-16 [September 1] by a housing finance corporation for the issuance of
3-17 qualified mortgage bonds may not exceed the amount computed as
3-18 follows [by multiplying the local population of the corporation
3-19 by]:
3-20 (1) [$50,] if the local population of the housing
3-21 finance corporation is 300,000 or more, $22.5 million plus the
3-22 product of the amount by which the local population exceeds 300,000
3-23 multiplied by $11.25;
3-24 (2) ( [$75,] ) if the local population of the housing
3-25 finance corporation is 200,000 or more but less than 300,000, $20
3-26 million plus the product of the amount by which the local
4-1 population exceeds 200,000 multiplied by $22.5;
4-2 (3) ( [$100,] ) if the local population of the housing
4-3 finance corporation is 100,000 or more but less than 200,000, $15
4-4 million plus the product of the amount by which the local
4-5 population exceeds 100,000 multiplied by $50; or
4-6 (4) ( [$150,] ) if the local population of the housing
4-7 finance corporation is less than 100,000,the product of the local
4-8 population multiplied by $150.
4-9 (b) A housing finance corporation may not receive an
4-10 allocation for the issuance of qualified mortgage bonds in an
4-11 amount that exceeds $25 million.
4-12 (c) For purposes of this section, the local population of a
4-13 housing finance corporation is the population of the local
4-14 government or local governments on whose behalf a housing finance
4-15 corporation is created. If two local governments that have a
4-16 population of at least 20,000 each and that have overlapping
4-17 territory have created housing finance corporations that have the
4-18 power to issue bonds to provide financing for home mortgages, the
4-19 population of the housing finance corporation created on behalf of
4-20 the larger local government is computed by subtracting from the
4-21 population of the larger local government the population of the
4-22 part of the smaller local government that is located in the larger
4-23 local government. The reduction of population provided by this
4-24 subsection is not required if the smaller local government assigns
4-25 its authority to issue bonds, based on its population, to the
4-26 larger local government.
5-1 SECTION 4. Subchapter B, Chapter 1372, Government Code, is
5-2 amended by adding Section 1372.0261 to read as follows:
5-3 Sec. 1372.0261. FAILURE OF A HOUSING FINANCE CORPORATION TO
5-4 USE AMOUNT OF STATE CEILING ALLOCATED. (a) In this section,
5-5 "utilization percentage" means that portion of the amount of state
5-6 ceiling allocated for a housing finance corporation with respect to
5-7 which the corporation issues private activity bonds that result in
5-8 mortgage loans or mortgage credit certificates. A housing finance
5-9 corporation's utilization percentage for an allocation of the state
5-10 ceiling is the quotient of:
5-11 (1) the amount spent to purchase mortgages or
5-12 mortgage-backed securities, and/or the amount of mortgage credit
5-13 certificates issued from that allocation of the state ceiling;
5-14 divided by
5-15 (2) the amount of the state ceiling allocated, minus
5-16 any amounts required for debt service reserve funds.
5-17 (b) If a housing finance corporation's issue of bonds uses a
5-18 new allocation of the state ceiling, in combination with recycled
5-19 state ceiling and/or taxable bonds, the first loans or certificates
5-20 financed are considered in computing the utilization percentage of
5-21 the new allocation of the state ceiling.
5-22 (c) If a housing finance corporation's utilization
5-23 percentage is less than 95 percent, the next time the corporation
5-24 becomes eligible for a reservation of the state ceiling, the
5-25 maximum amount of the state ceiling that may be reserved for the
5-26 corporation is equal to the amount for which the corporation would
6-1 otherwise be eligible under Section 1372.026 multiplied by the
6-2 utilization percentage of the corporation's last bond issue that
6-3 used an allocation of the state ceiling.
6-4 (d) A housing finance corporation may not be penalized under
6-5 Subsection (c) if:
6-6 (1) the corporation fails to use:
6-7 (A) bond proceeds available from an issue of
6-8 recycled state ceiling; or
6-9 (B) taxable bond proceeds; or
6-10 (2) as the result of an issuance of bonds, the
6-11 corporation's utilization percentage is 95 percent or greater.
6-12 SECTION 5. Section 1372.031, Government Code, is amended to
6-13 read as follows:
6-14 Sec. 1372.031. PRIORITIES FOR RESERVATIONS AMONG CERTAIN
6-15 ISSUERS. If, on or before October 20, more than one issuer in a
6-16 category described by Section 1372.022(a)(2), (3), [(4),] or (6)
6-17 applies for a reservation of the state ceiling for the next program
6-18 year, the board shall grant reservations in that category in the
6-19 order determined by the board by lot.
6-20 SECTION 6. The heading to Section 1372.032, Government Code,
6-21 is amended to read as follows:
6-22 Sec. 1372.032. PRIORITIES FOR RESERVATIONS AMONG ISSUERS OF
6-23 QUALIFIES MORTGAGE BONDS [HOUSING FINANCE CORPORATIONS].
6-24 SECTION 7. (a) In accordance with Section 311.031(c),
6-25 Government Code, which gives effect to a substantive amendment
6-26 enacted by the same legislature that codifies the amended statute,
7-1 the text of Section 1372.022(b). Government Code, as set out in
7-2 this Act, gives the effect to changes made by Chapter 131, Acts of
7-3 the 76th Legislature, Regular Session, 1999.
7-4 (b) To the extent of any conflict, this Act prevails over
7-5 another Act of the 77th Legislature, Regular Session, 2001,
7-6 relating to nonsubstantive additions and corrections in enacted
7-7 codes.
7-8 SECTION 8. Section 1372.0261, Government Code, as added by
7-9 this Act, applies only to an allocation of state ceiling granted on
7-10 or after January 1, 2002.
7-11 SECTION 9. This Act takes effect September 1, 2001.