78R5638 QS-D
By: Ritter, Menendez H.B. No. 1247
A BILL TO BE ENTITLED
AN ACT
relating to the creation, funding, and operation of a fire fighter
and police officer home loan program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 1372, Government Code, is
amended by adding Section 1372.0222 to read as follows:
Sec. 1372.0222. DEDICATION OF PORTION OF STATE CEILING FOR
FIRE FIGHTER AND POLICE OFFICER HOME LOAN PROGRAM. Out of that
portion of the state ceiling that is available exclusively for
reservations by issuers of qualified mortgage bonds under Section
1372.022, $25 million shall be allotted each year and made
available exclusively to the Texas State Affordable Housing
Corporation for the purpose of issuing qualified mortgage bonds in
connection with the fire fighter and police officer home loan
program established under Section 2306.563.
SECTION 2. Sections 2306.553(a) and (b), Government Code,
are amended to read as follows:
(a) The public purpose of the corporation is to perform
activities and services that the corporation's board of directors
determines will promote the public health, safety, and welfare
through the provision of adequate, safe, and sanitary housing
primarily for individuals and families of low, very low, and
extremely low income, [and] for teachers under the teachers home
loan program as provided by Section 2306.562, and for fire fighters
and police officers under the fire fighter and police officer home
loan program as provided by Section 2306.563. The activities and
services shall include engaging in mortgage banking activities and
lending transactions and acquiring, holding, selling, or leasing
real or personal property.
(b) The corporation's primary public purpose is to
facilitate the provision of housing and the making of affordable
loans to individuals and families of low, very low, and extremely
low income, [and] to teachers under the teachers home loan program,
and to fire fighters and police officers under the fire fighter and
police officer home loan program. The corporation may make first
lien, single family purchase money mortgage loans for single family
homes only to individuals and families of low, very low, and
extremely low income if the individual's or family's household
income is not more than the greater of 60 percent of the median
income for the state, as defined by the United States Department of
Housing and Urban Development, or 60 percent of the area median
family income, adjusted for family size, as defined by that
department. The corporation may make loans for multifamily
developments if:
(1) at least 40 percent of the units in a multifamily
development are affordable to individuals and families with incomes
at or below 60 percent of the median family income, adjusted for
family size; or
(2) at least 20 percent of the units in a multifamily
development are affordable to individuals and families with incomes
at or below 50 percent of the median family income, adjusted for
family size.
SECTION 3. Subchapter Y, Chapter 2306, Government Code, is
amended by adding Section 2306.563 to read as follows:
Sec. 2306.563. FIRE FIGHTER AND POLICE OFFICER HOME LOAN
PROGRAM. (a) In this section:
(1) "Fire fighter" has the meaning assigned by Section
143.003, Local Government Code.
(2) "Home" means a dwelling in this state in which a
fire fighter or police officer intends to reside as the fire
fighter's or police officer's principal residence.
(3) "Mortgage lender" has the meaning assigned by
Section 2306.004.
(4) "Police officer" has the meaning assigned by
Section 143.003, Local Government Code.
(5) "Program" means the fire fighter and police
officer home loan program.
(b) The corporation shall establish a program to provide
eligible fire fighters and police officers with low-interest home
mortgage loans.
(c) To be eligible for a loan under this section, at the time
a person files an application for the loan, the person must:
(1) be a fire fighter or police officer;
(2) reside in this state; and
(3) have an income of not more than 115 percent of area
median family income, adjusted for family size.
(d) The corporation may contract with other agencies of the
state or with private entities to determine whether applicants
qualify as fire fighters or police officers under this section or
otherwise to administer all or part of this section.
(e) The board of directors of the corporation may set and
collect from each applicant any fees the board considers reasonable
and necessary to cover the expenses of administering the program.
(f) The board of directors of the corporation shall adopt
rules governing:
(1) the administration of the program;
(2) the making of loans under the program;
(3) the criteria for approving mortgage lenders;
(4) the use of insurance on the loans and the homes
financed under the program, as considered appropriate by the board
to provide additional security for the loans;
(5) the verification of occupancy of the home by the
fire fighter or police officer as the fire fighter's or police
officer's principal residence; and
(6) the terms of any contract made with any mortgage
lender for processing, originating, servicing, or administering
the loans.
(g) The corporation shall ensure that a loan under this
section is structured in a way that complies with any requirements
associated with the source of the funds used for the loan.
(h) In addition to funds set aside for the program under
Section 1372.0222, the corporation may solicit and accept funding
for the program from the following sources:
(1) gifts and grants for the purposes of this section;
(2) available money in the housing trust fund
established under Section 2306.201, to the extent available to the
corporation;
(3) federal block grants that may be used for the
purposes of this section, to the extent available to the
corporation;
(4) other state or federal programs that provide money
that may be used for the purposes of this section; and
(5) amounts received by the corporation in repayment
of loans made under this section.
(i) This section expires September 1, 2014.
SECTION 4. The Texas State Affordable Housing Corporation
shall:
(1) aggressively pursue funding for the fire fighter
and police officer home loan program required by Section 2306.563,
Government Code, as added by this Act; and
(2) implement the fire fighter and police officer home
loan program required by that section not later than September 1,
2004.
SECTION 5. If before January 1, 2005, the legislature finds
in a scheduled review of the Texas State Affordable Housing
Corporation by the Sunset Advisory Commission under Section
2306.5521, Government Code, that the corporation should be
abolished, the fire fighter and police officer home loan program
under Section 2306.563, Government Code, as added by this Act,
shall be administered by the Texas Department of Housing and
Community Affairs in the manner provided by this Act.
SECTION 6. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.