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78R8026 KEL-D

By:  Keffer of Eastland                                           H.B. No. 2690



A BILL TO BE ENTITLED

AN ACT

relating to the allocation of housing trust funds among uniform 
state service regions.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 2306.111(d), Government Code, is amended 
to read as follows:
	(d)  The department shall allocate housing funds provided to 
the state under the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. Section 12701 et seq.)[, housing trust funds 
administered by the department under Sections 2306.201-2306.206,] 
and commitments issued under the federal low income housing tax 
credit program administered by the department under Subchapter DD 
to each uniform state service region based on a formula developed by 
the department that is based on the need for housing assistance and 
the availability of housing resources, provided that the 
allocations are consistent with applicable federal and state 
requirements and limitations.  The department shall use the 
information contained in its annual state low income housing plan 
and shall use other appropriate data to develop the formula.  If the 
department determines under the formula that an insufficient number 
of eligible applications for assistance out of funds or credits 
allocable under this subsection are submitted to the department 
from a particular uniform state service region, the department 
shall use the unused funds or credits allocated to that region for 
all other regions based on identified need and financial 
feasibility.
	SECTION 2.  Section 2306.203, Government Code, is amended to 
read as follows:
	Sec. 2306.203.  RULES REGARDING ADMINISTRATION OF HOUSING 
TRUST FUND.  The board shall adopt rules to administer the housing 
trust fund, including rules providing:
		(1)  that the division give priority to programs that 
maximize federal resources;
		(2)  for a process to set priorities for use of the 
fund, including the distribution of fund resources under a request 
for a proposal process developed and approved by the board;
		(3)  that the criteria used to rank proposals will 
include the:             
			(A)  leveraging of federal resources;                                        
			(B)  cost-effectiveness of a proposed 
development;  and                    
			(C)  extent to which individuals and families of 
very low income are served by the development;
		(4)  that funds may not be made available to a 
development that permanently and involuntarily displaces 
individuals and families of low income;
		(5)  that the board [attempt to] allocate funds equally 
among all the uniform state service regions to achieve a broad 
geographical distribution, with[:
			[(A)]  special emphasis on equitably serving 
rural and nonmetropolitan areas within those regions [; and
			[(B)  consideration of the number and percentage 
of income-qualified families in different geographical areas]; and
		(6)  that multifamily housing developed or 
rehabilitated through the fund remain affordable to 
income-qualified households for at least 20 years.
	SECTION 3.  (a)  The change in law made by this Act applies to 
housing trust funds allocated on or after the effective date of this 
Act.
	(b)  The governing board of the Texas Department of Housing 
and Community Affairs shall adopt the rules required by Section 
2306.203, Government Code, as amended by this Act, not later than 
November 1, 2003.
	SECTION 4.  This Act takes effect September 1, 2003.