1-1 By: Carona S.B. No. 1343
1-2 (In the Senate - Filed March 8, 2001; March 13, 2001, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 9, 2001, reported favorably by the following vote:
1-5 Yeas 6, Nays 0; April 9, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the private activity bond allocation program.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 1372.022, Government Code, is amended by
1-11 amending Subsection (b) and adding Subsection (c) to read as
1-12 follows:
1-13 (b) If the state ceiling is computed on the basis of $75 per
1-14 capita or a greater amount, before August 15 of each year:
1-15 (1) 33.33 percent of the state ceiling is available
1-16 exclusively for reservations by issuers of qualified mortgage
1-17 bonds;
1-18 (2) 7.33 percent of the state ceiling is available
1-19 exclusively for reservations by issuers of state-voted issues;
1-20 (3) five percent of the state ceiling is available
1-21 exclusively for reservations by issuers of qualified small issue
1-22 bonds and enterprise zone facility bonds;
1-23 (4) 25 percent of the state ceiling is available
1-24 exclusively for reservations by issuers of qualified residential
1-25 rental project bonds;
1-26 (5) seven percent of the state ceiling is available
1-27 exclusively for reservations by issuers of qualified student loan
1-28 bonds authorized by Section 53.47, Education Code; and
1-29 (6) 22.34 percent of the state ceiling is available
1-30 exclusively for reservation by any other issuer of bonds that
1-31 require an allocation.
1-32 (c) On and after August 15 but before September 1, that
1-33 portion of the state ceiling available for reservations becomes
1-34 available for qualified residential rental project issues in the
1-35 manner described by Section 1372.0321. On and after September 1,
1-36 that portion of the state ceiling available for reservations
1-37 becomes available to any issuer for any bonds that require an
1-38 allocation, subject to the provisions of this subchapter.
1-39 SECTION 2. Subchapter B, Chapter 1372, Government Code, is
1-40 amended by adding Section 1372.0231 to read as follows:
1-41 Sec. 1372.0231. DEDICATION OF PORTION OF STATE CEILING
1-42 AVAILABLE FOR QUALIFIED RESIDENTIAL RENTAL PROJECT BONDS. Until
1-43 August 15, of that portion of the state ceiling that is available
1-44 exclusively for reservations by issuers of qualified residential
1-45 rental project bonds:
1-46 (1) 25 percent is available exclusively to the Texas
1-47 Department of Housing and Community Affairs to be used for
1-48 qualified residential rental projects throughout the state; and
1-49 (2) 75 percent is available exclusively to housing
1-50 finance corporations to be distributed as follows: (i) before
1-51 June 1, this amount of state ceiling shall be set aside,
1-52 proportionately, for the 11 uniform state service regions according
1-53 to a formula based on the percentage of the state's population that
1-54 resides within each of the 11 regions, for region 3, region 6, and
1-55 region 7, the corresponding amounts available to the regions shall
1-56 be further apportioned according to the percentage of the region's
1-57 population located within a metropolitan statistical area and the
1-58 percentage of the region's population located outside the
1-59 metropolitan statistical areas. Within each regional set-aside,
1-60 the board shall issue reservations based on the priority level of
1-61 the project, as described in Section 1372.0321; and (ii) on or
1-62 after June 2 but before August 15, any available reservations for
1-63 residential rental project issues shall be issued based on
1-64 priority, without regard to region, as described in Section
2-1 1372.0321.
2-2 SECTION 3. Section 1372.026, Government Code, is amended to
2-3 read as follows:
2-4 Sec. 1372.026. LIMITATION ON AMOUNT OF STATE CEILING
2-5 AVAILABLE TO HOUSING FINANCE CORPORATIONS. (a) The maximum amount
2-6 of the state ceiling that may be reserved before August 15
2-7 [September 1] by a housing finance corporation for the issuance of
2-8 qualified mortgage bonds may not exceed the amount computed as
2-9 follows [by multiplying the local population of the corporation
2-10 by]:
2-11 (1) [$50,] if the local population of the housing
2-12 finance corporation is 300,000 or more, $22.5 million plus the
2-13 product of the amount by which the local population exceeds 300,000
2-14 multiplied by $11.25;
2-15 (2) [$75,] if the local population of the housing
2-16 finance corporation is 200,000 or more but less than 300,000, $20
2-17 million plus the product of the amount by which the local
2-18 population exceeds 200,000 multiplied by $22.5;
2-19 (3) [$100,] if the local population of the housing
2-20 finance corporation is 100,000 or more but less than 200,000, $15
2-21 million plus the product of the amount by which the local
2-22 population exceeds 100,000 multiplied by $50; or
2-23 (4) [$150,] if the local population of the housing
2-24 finance corporation is less than 100,000, the product of the local
2-25 population multiplied by $150.
2-26 (b) A housing finance corporation may not receive an
2-27 allocation for the issuance of qualified mortgage bonds in an
2-28 amount that exceeds $25 million.
2-29 (c) For purposes of this section, the local population of a
2-30 housing finance corporation is the population of the local
2-31 government or local governments on whose behalf a housing finance
2-32 corporation is created. If two local governments that have a
2-33 population of at least 20,000 each and that have overlapping
2-34 territory have created housing finance corporations that have the
2-35 power to issue bonds to provide financing for home mortgages, the
2-36 population of the housing finance corporation created on behalf of
2-37 the larger local government is computed by subtracting from the
2-38 population of the larger local government the population of the
2-39 part of the smaller local government that is located in the larger
2-40 local government. The reduction of population provided by this
2-41 subsection is not required if the smaller local government assigns
2-42 its authority to issue bonds, based on its population, to the
2-43 larger local government.
2-44 SECTION 4. Subchapter B, Chapter 1372, Government Code, is
2-45 amended by adding Section 1372.0261 to read as follows:
2-46 Sec. 1372.0261. FAILURE OF A HOUSING FINANCE CORPORATION TO
2-47 USE AMOUNT OF STATE CEILING ALLOCATED. (a) In this section,
2-48 "utilization percentage" means that portion of the amount of state
2-49 ceiling allocated for a housing finance corporation with respect to
2-50 which the corporation issues private activity bonds that result in
2-51 mortgage loans or mortgage credit certificates. A housing finance
2-52 corporation's utilization percentage for an allocation of the state
2-53 ceiling is the quotient of:
2-54 (1) the amount spent to purchase mortgages or
2-55 mortgage-backed securities, and the amount of mortgage credit
2-56 certificates issued from that allocation of the state ceiling;
2-57 divided by
2-58 (2) the amount of the state ceiling allocated, minus
2-59 any amounts required for debt service reserve funds.
2-60 (b) If a housing finance corporation's issue of bonds uses a
2-61 new allocation of the state ceiling, in combination with recycled
2-62 state ceiling or taxable bonds, the first loans or certificates
2-63 financed are considered in computing the utilization percentage of
2-64 the new allocation of the state ceiling.
2-65 (c) If a housing finance corporation's utilization
2-66 percentage is less than 95 percent, the next time the corporation
2-67 becomes eligible for a reservation of the state ceiling, the
2-68 maximum amount of the state ceiling that may be reserved for the
2-69 corporation is equal to the amount for which the corporation would
3-1 otherwise be eligible under Section 1372.026 multiplied by the
3-2 utilization percentage of the corporation's last bond issue that
3-3 used an allocation of the state ceiling.
3-4 (d) A housing finance corporation may not be penalized under
3-5 Subsection (c) if:
3-6 (1) the corporation fails to use:
3-7 (A) bond proceeds available from an issue of
3-8 recycled state ceiling; or
3-9 (B) taxable bond proceeds; or
3-10 (2) as the result of an issuance of bonds, the
3-11 corporation's utilization percentage is 95 percent or greater.
3-12 SECTION 5. Section 1372.031, Government Code, is amended to
3-13 read as follows:
3-14 Sec. 1372.031. PRIORITIES FOR RESERVATIONS AMONG CERTAIN
3-15 ISSUERS. If, on or before October 20, more than one issuer in a
3-16 category described by Section 1372.022(a)(2), (3), [(4),] or (6)
3-17 applies for a reservation of the state ceiling for the next program
3-18 year, the board shall grant reservations in that category in the
3-19 order determined by the board by lot.
3-20 SECTION 6. The heading to Section 1372.032, Government Code,
3-21 is amended to read as follows:
3-22 Sec. 1372.032. PRIORITIES FOR RESERVATIONS AMONG ISSUERS OF
3-23 QUALIFIED MORTGAGE BONDS [HOUSING FINANCE CORPORATIONS].
3-24 SECTION 7. (a) In accordance with Subsection (c), Section
3-25 311.031, Government Code, which gives effect to a substantive
3-26 amendment enacted by the same legislature that codifies the amended
3-27 statute, the text of Subsection (b), Section 1372.022, Government
3-28 Code, as set out in this Act, gives effect to changes made by
3-29 Section 1, Chapter 131, Acts of the 76th Legislature, Regular
3-30 Session, 1999.
3-31 (b) To the extent of any conflict, this Act prevails over
3-32 another Act of the 77th Legislature, Regular Session, 2001,
3-33 relating to nonsubstantive additions and corrections in enacted
3-34 codes.
3-35 SECTION 8. Section 1372.0261, Government Code, as added by
3-36 this Act, applies only to an allocation of state ceiling granted on
3-37 or after January 1, 2002.
3-38 SECTION 9. This Act takes effect September 1, 2001.
3-39 * * * * *