78R16832 E
By: Lucio S.B. No. 284
Substitute the following for S.B. No. 284:
By: Talton C.S.S.B. No. 284
A BILL TO BE ENTITLED
AN ACT
relating to the continuation and functions of the Texas State
Affordable Housing Corporation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1372.0221, Government Code, is amended
to read as follows:
Sec. 1372.0221. DEDICATION OF PORTION OF STATE CEILING FOR
PROFESSIONAL EDUCATORS [TEACHERS] HOME LOAN PROGRAM. Until August
1, out [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 professional educators [teachers] home loan
program established under Section 2306.562.
SECTION 2. Section 1372.023(b), Government Code, is amended
to read as follows:
(b) Until August 1 [15], of that portion of the state
ceiling that is available exclusively for reservations by issuers
of qualified residential rental project bonds, one-fifth
[one-fourth] is available exclusively to the Texas Department of
Housing and Community Affairs in the manner described by Section
1372.0231.
SECTION 3. Section 1372.0231, Government Code, is amended
by amending Subsection (a) and adding Subsection (b-1) to read as
follows:
(a) Until August 1 [15], of that portion of the state
ceiling that is available exclusively for reservations by issuers
of qualified residential rental project bonds:
(1) 20 [25] percent is available exclusively to the
Texas Department of Housing and Community Affairs in the manner
described by Subsection (b); [and]
(2) 70 [75] percent is available exclusively to
housing finance corporations in the manner described by Subsections
(c)-(f); and
(3) 10 percent is available exclusively to the Texas
State Affordable Housing Corporation in the manner described by
Subsection (b-1).
(b-1) With respect to the amount of the state ceiling set
aside under Subsection (a)(3), the board shall issue qualified
residential rental project bonds and allocate bond funds at the
direction of the Texas State Affordable Housing Corporation as
provided by Section 2306.565. Issuances made by the board under
this subsection are subject to review and approval by the board
under Section 1231.041.
SECTION 4. Section 2306.057, Government Code, is amended by
adding Subsection (d) to read as follows:
(d) In assessing the compliance of the project, applicant,
or affiliate, the board shall consider any relevant compliance
information in the department's database created under Section
2306.081, including compliance information provided to the
department by the Texas State Affordable Housing Corporation.
SECTION 5. Section 2306.0721, Government Code, is amended
by adding Subsections (g) and (h) to read as follows:
(g) The department shall include the plan developed by the
Texas State Affordable Housing Corporation under Section 2306.565
in the department's resource allocation plan under Subsection
(c)(5).
(h) The department shall consider and incorporate the
specific results of the programs of the Texas State Affordable
Housing Corporation in the department's estimate and analysis of
the housing supply in each uniform state service region under
Subsection (c)(9).
SECTION 6. Section 2306.0722(b), Government Code, is
amended to read as follows:
(b) In preparing the annual report under Section 2306.072
and the state low income housing plan under Section 2306.0721, the
director shall:
(1) coordinate local, state, and federal housing
resources, including tax exempt housing bond financing and low
income housing tax credits;
(2) set priorities for the available housing resources
to help the neediest individuals;
(3) evaluate the success of publicly supported housing
programs;
(4) survey and identify the unmet housing needs of
individuals the department is required to assist;
(5) ensure that housing programs benefit an individual
without regard to the individual's race, ethnicity, sex, or
national origin;
(6) develop housing opportunities for individuals and
families of low and very low income and individuals with special
housing needs;
(7) develop housing programs through an open, fair,
and public process;
(8) set priorities for assistance in a manner that is
appropriate and consistent with the housing needs of the
populations described by Section 2306.0721(c)(1);
(9) incorporate recommendations that are consistent
with the consolidated plan submitted annually by the state to the
United States Department of Housing and Urban Development;
(10) identify the organizations and individuals
consulted by the department in preparing the annual report and
state low income housing plan and summarize and incorporate
comments and suggestions provided under Subsection (a) as the board
determines to be appropriate;
(11) develop a plan to respond to changes in federal
funding and programs for the provision of affordable housing;
(12) use the following standardized categories to
describe the income of program applicants and beneficiaries:
(A) 0 to 30 percent of area median income
adjusted for family size;
(B) more than 30 to 60 percent of area median
income adjusted for family size;
(C) more than 60 to 80 percent of area median
income adjusted for family size;
(D) more than 80 to 115 percent of area median
income adjusted for family size; or
(E) more than 115 percent of area median income
adjusted for family size; [and]
(13) use the most recent census data combined with
existing data from local housing and community service providers in
the state, including public housing authorities, housing finance
corporations, community housing development organizations, and
community action agencies; and
(14) provide the needs assessment information
compiled for the report and plan to the Texas State Affordable
Housing Corporation.
SECTION 7. Section 2306.081, Government Code, is amended by
amending Subsection (d) and adding Subsection (e) to read as
follows:
(d) The department shall create an easily accessible
database that contains all project compliance information
developed under this chapter, including project compliance
information provided to the department by the Texas State
Affordable Housing Corporation.
(e) The department shall allow the Texas State Affordable
Housing Corporation timely access to the information in the
database.
SECTION 8. Section 2306.5521, Government Code, is amended
to read as follows:
Sec. 2306.5521. SUNSET PROVISION. The Texas State
Affordable Housing Corporation is subject to Chapter 325 (Texas
Sunset Act). Unless continued in existence as provided by that
chapter, the corporation is abolished and this subchapter expires
September 1, 2009 [2003].
SECTION 9. 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 professional educators [teachers]
under the professional educators [teachers] home loan program as
provided by Section 2306.562. 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 by issuing qualified 501(c)(3)
bonds and qualified residential rental project bonds and by [the]
making [of] affordable loans to individuals and families of low,
very low, and extremely low income, and to professional educators
[teachers] under the professional educators [teachers] 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 10. Section 2306.554, Government Code, is amended
by amending Subsection (c) and adding Subsection (f) to read as
follows:
(c) A member of the corporation's board of directors is not
entitled to compensation, but is entitled to reimbursement of
travel expenses incurred by the member while conducting the
business of the board to the same extent[, as] provided by the
General Appropriations Act for a member of a state board.
(f) Appointments to the board of directors of the
corporation shall be made without regard to the race, color,
disability, sex, religion, age, or national origin of the
appointees.
SECTION 11. Subchapter Y, Chapter 2306, Government Code, is
amended by adding Sections 2306.5541, 2306.5542, and 2306.5543 to
read as follows:
Sec. 2306.5541. TERMS OF MEMBERS. The members of the board
of directors of the corporation serve staggered six-year terms,
with the terms of one or two members expiring on February 1 of each
odd-numbered year.
Sec. 2306.5542. REMOVAL OF MEMBERS. (a) It is a ground for
removal from the board of directors of the corporation that a
member:
(1) does not have at the time of taking office the
qualifications required by Section 2306.554;
(2) does not maintain during service on the board of
directors of the corporation the qualifications required by Section
2306.554;
(3) is ineligible for membership under Sections
2306.554 and 2306.5545;
(4) cannot, because of illness or disability,
discharge the member's duties for a substantial part of the member's
term; or
(5) is absent from more than half of the regularly
scheduled board meetings that the member is eligible to attend
during a calendar year without an excuse approved by a majority vote
of the board of directors.
(b) The validity of an action of the board of directors of
the corporation is not affected by the fact that it is taken when a
ground for removal of a board member exists.
(c) If the president of the corporation has knowledge that a
potential ground for removal exists, the president shall notify the
presiding officer of the board of directors of the potential
ground. The presiding officer shall then notify the governor and
the attorney general that a potential ground for removal exists. If
the potential ground for removal involves the presiding officer,
the president shall notify the next highest ranking officer of the
board of directors, who shall then notify the governor and the
attorney general that a potential ground for removal exists.
Sec. 2306.5543. TRAINING. (a) A person who is appointed
to and qualifies for office as a member of the corporation's board
of directors may not vote, deliberate, or be counted as a member in
attendance at a meeting of the board until the person completes a
training program that complies with this section.
(b) The training program must provide the person with
information regarding:
(1) the legislation that created the corporation and
the corporation's board of directors;
(2) the programs operated by the corporation;
(3) the role and functions of the corporation;
(4) the rules of the corporation with an emphasis on
the rules that relate to disciplinary and investigatory authority;
(5) the current budget for the corporation;
(6) the results of the most recent formal audit of the
corporation;
(7) the requirements of:
(A) the open meetings law, Chapter 551;
(B) the public information law, Chapter 552;
(C) the administrative procedure law, Chapter
2001; and
(D) other laws relating to public officials,
including conflict-of-interest laws; and
(8) any applicable ethics policies adopted by the
corporation or the Texas Ethics Commission.
(c) A person appointed to the corporation's board of
directors is entitled to reimbursement, to the same extent provided
by the General Appropriations Act for a member of a state board, for
the travel expenses incurred in attending the training program
regardless of whether the attendance at the program occurs before
or after the person qualifies for office.
SECTION 12. Section 2306.5545, Government Code, is amended
to read as follows:
Sec. 2306.5545. CONFLICT OF INTEREST POLICIES. (a) The
board of directors of the corporation shall develop and implement
policies relating to employee conflicts of interest that are
substantially similar to comparable policies that govern state
employees.
(b) A person may not be a member of the corporation's board
of directors and may not be a corporation employee employed in a
"bona fide executive, administrative, or professional capacity,"
as that phrase is used for purposes of establishing an exemption to
the overtime provisions of the federal Fair Labor Standards Act of
1938 (29 U.S.C. Section 201 et seq.), and its subsequent
amendments, if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association in the field of banking,
real estate, housing development, or housing construction; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of banking,
real estate, housing development, or housing construction.
(c) A person may not be a member of the corporation's board
of directors or act as the general counsel to the board of directors
or the corporation if the person is required to register as a
lobbyist under Chapter 305 because of the person's activities for
compensation on behalf of a profession related to the operation of
the corporation.
(d) In this section, "Texas trade association" means a
cooperative and voluntarily joined statewide association of
business or professional competitors in this state designed to
assist its members and its industry or profession in dealing with
mutual business or professional problems and in promoting their
common interest.
SECTION 13. Subchapter Y, Chapter 2306, Government Code, is
amended by adding Sections 2306.5546, 2306.5547, and 2306.5548 to
read as follows:
Sec. 2306.5546. STANDARDS OF CONDUCT. The president of the
corporation or the president's designee shall provide to members of
the board of directors of the corporation and to corporation
employees, as often as necessary, information regarding the
requirements for office or employment under this subchapter,
including information regarding a person's responsibilities under
applicable laws relating to standards of conduct for state officers
or employees.
Sec. 2306.5547. DIVISION OF RESPONSIBILITY. The board of
directors of the corporation shall develop and implement policies
that clearly separate the policymaking responsibilities of the
board of directors and the management responsibilities of the
president and the staff of the corporation.
Sec. 2306.5548. EQUAL EMPLOYMENT OPPORTUNITY POLICY.
(a) The president of the corporation or the president's designee
shall prepare and maintain a written policy statement that
implements a program of equal employment opportunity to ensure that
all personnel decisions are made without regard to race, color,
disability, sex, religion, age, or national origin.
(b) The policy statement must include:
(1) personnel policies, including policies relating
to recruitment, evaluation, selection, training, and promotion of
personnel, that show the intent of the corporation to avoid the
unlawful employment practices described by Chapter 21, Labor Code;
and
(2) an analysis of the extent to which the composition
of the corporation's personnel is in accordance with state and
federal law and a description of reasonable methods to achieve
compliance with state and federal law.
(c) The policy statement must be:
(1) updated annually; and
(2) filed with the governor's office.
SECTION 14. The heading to Section 2306.562, Government
Code, is amended to read as follows:
Sec. 2306.562. PROFESSIONAL EDUCATORS [TEACHERS] HOME LOAN
PROGRAM.
SECTION 15. Sections 2306.562(a)-(d) and (f), Government
Code, are amended to read as follows:
(a) In this section:
(1) "Home" means a dwelling in this state in which a
professional educator [teacher] intends to reside as the
professional educator's [teacher's] principal residence.
(2) "Mortgage lender" has the meaning assigned by
Section 2306.004.
(3) "Professional educator" means a classroom
teacher, full-time paid teacher's aide, full-time librarian,
full-time counselor certified under Subchapter B, Chapter 21,
Education Code, or full-time school nurse.
(4) "Program" means the professional educators
[teachers] home loan program.
[(4) "Teacher" means a person who is a classroom
teacher as defined by Section 5.001, Education Code.]
(b) The corporation shall establish a program to provide
eligible professional educators [teachers] whose income does not
exceed 115 percent of area median family income, adjusted for
family size, with low-interest home mortgage loans.
(c) To be eligible for a loan under this section, a
professional educator [teacher] must:
(1) [have been residing in this state for the
five-year period preceding the date the teacher files an
application for a loan under this section;
[(2) have been working as a teacher for the three-year
period preceding the application date; and
[(3)] reside in this state on the application date;
and
(2) be employed by a school district in this state on
the application date.
(d) The corporation may contract with other agencies of the
state or with private entities to determine whether applicants
qualify as professional educators [teachers] under this section or
otherwise to administer all or part of this section.
(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
professional educator [teacher] as the professional educator's
[teacher's] principal residence; and
(6) the terms of any contract made with any mortgage
lender for processing, originating, servicing, or administering
the loans.
SECTION 16. Subchapter Y, Chapter 2306, Government Code, is
amended by adding Sections 2306.563 through 2306.569 to read as
follows:
Sec. 2306.563. PUBLIC BENEFIT REQUIREMENT. (a) The
corporation shall implement a requirement that a community housing
development organization that receives an issuance of qualified
501(c)(3) bonds from the corporation to develop property must
invest at least one dollar in projects and services that benefit
income-eligible persons for each dollar of taxes that is not
imposed on the property as a result of a property tax exemption
received under Section 11.182, Tax Code.
(b) The projects and services must benefit income-eligible
persons in the county in which the property supported with the tax
exemption is located.
(c) The projects and services must consist of:
(1) rent reduction;
(2) capital improvement projects; or
(3) social, educational, or economic development
services.
(d) The corporation and the organization may determine on a
case-by-case basis the specific projects and services in which the
organization must invest under this section.
(e) The dollar-for-dollar public benefit requirement
imposed by this section shall be reduced by an amount equal to each
dollar that, in lieu of taxes, a community housing development
organization pays to a taxing unit for which the property receives
an exemption under Section 11.182, Tax Code.
(f) In implementing the public benefit requirement, the
corporation shall adopt guidelines for reasonable rent reductions,
capital improvement projects, and social, educational, and
economic development services.
Sec. 2306.564. REVIEW OF QUALIFIED 501(c)(3) BOND ISSUANCE
POLICIES. (a) The corporation shall review annually its qualified
501(c)(3) bond issuance policies, including the public benefit
requirement implemented under Section 2306.563.
(b) The corporation shall give to the secretary of state for
publication in the Texas Register any proposed policy revisions and
allow a reasonable period for public comment.
(c) The board of directors of the corporation must approve
any change to the bond issuance policies.
Sec. 2306.565. ISSUANCE OF QUALIFIED RESIDENTIAL RENTAL
PROJECT BONDS; ALLOCATION OF BOND FUNDS. (a) The corporation shall
direct the Bond Review Board on the issuance of the portion of state
ceiling set aside for the corporation under Section 1372.0231(a).
(b) The board of directors of the corporation shall adopt
guidelines governing the method by which the corporation identifies
target areas for the allocation of qualified residential rental
project bond funds. The guidelines must include a clear
demonstration of local need and community support for a housing
development.
(c) The corporation shall research the state's strategic
housing needs by coordinating with the department and reviewing
relevant needs assessment information, as required by Section
2306.566. The corporation shall also solicit information regarding
housing needs from local and regional housing organizations.
(d) The board of directors of the corporation shall adopt
criteria governing the method by which the corporation solicits
proposals for housing developments in areas targeted by the
corporation. The guidelines must state the criteria to be included
in the corporation's requests for proposals. The requests for
proposals must comply with any relevant federal requirements.
(e) The board of directors of the corporation shall adopt
criteria governing the method by which the staff of the corporation
scores and ranks applications for an allocation under this section
that are received in response to a request for proposals. The
criteria must include:
(1) the cost per unit of the housing development;
(2) the proposed rent for a unit; and
(3) the income ranges of individuals and families to
be served by the housing development.
(f) The board of directors of the corporation shall identify
housing developments with respect to which the board anticipates
directing the Bond Review Board to allocate bond funds under this
section, based on the highest scores received in the scoring and
ranking process described by Subsection (e).
(g) After the board of directors of the corporation has
identified housing developments under Subsection (f), the
corporation shall hold public hearings, as required by federal law,
on the housing developments identified by the board.
(h) Following the public hearings, the staff shall prepare
final evaluations and recommendations for the board, incorporating
any public comments received at the hearings. The board shall
consider the staff's recommendations in making its final decisions
regarding the allocation of bond funds for housing developments
under this section and shall inform the Bond Review Board of those
decisions.
(i) The corporation shall pay the department a reasonable
fee for underwriting an application for an allocation of low income
housing tax credits if the housing development proposed in the
application is or will be supported by an allocation of bond funds
under this section.
(j) The decisions made by the corporation regarding the
allocation of bond funds under this section are not subject to the
restrictions in Section 1372.0321, as added by Chapter 1367 or
1420, Acts of the 77th Legislature, Regular Session, 2001.
Sec. 2306.566. COORDINATION REGARDING STATE LOW INCOME
HOUSING PLAN. (a) The corporation shall review the needs
assessment information provided to the corporation by the
department under Section 2306.0722(b).
(b) The corporation shall develop a plan to meet the state's
most pressing housing needs identified in the needs assessment
information and provide the plan to the department for
incorporation into the state low income housing plan.
(c) The corporation's plan must include specific proposals
to help serve rural and other underserved areas of the state.
Sec. 2306.567. COMPLIANCE INFORMATION. (a) The
corporation shall provide to the department electronic copies of
all compliance information compiled by the corporation.
(b) Before approving an application regarding a housing
development, the corporation shall consider any relevant
compliance information in the department's database created under
Section 2306.081.
Sec. 2306.568. RECORD OF COMPLAINTS. (a) The corporation
shall maintain a file on each written complaint filed with the
corporation. The file must include:
(1) the name of the person who filed the complaint;
(2) the date the complaint is received by the
corporation;
(3) the subject matter of the complaint;
(4) the name of each person contacted in relation to
the complaint;
(5) a summary of the results of the review or
investigation of the complaint; and
(6) an explanation of the reason the file was closed,
if the corporation closed the file without taking action other than
to investigate the complaint.
(b) The corporation shall provide to the person filing the
complaint and to each person who is a subject of the complaint a
copy of the corporation's policies and procedures relating to
complaint investigation and resolution.
(c) The corporation, at least quarterly until final
disposition of the complaint, shall notify the person filing the
complaint and each person who is a subject of the complaint of the
status of the investigation unless the notice would jeopardize an
undercover investigation.
Sec. 2306.569. EFFECTIVE USE OF TECHNOLOGY. The
corporation's board of directors shall develop and implement a
policy requiring the president of the corporation and corporation
employees to research and propose appropriate technological
solutions to improve the corporation's ability to perform its
functions. The technological solutions must:
(1) ensure that the public is able to easily find
information about the corporation on the Internet;
(2) ensure that persons who want to use the
corporation's services are able to:
(A) interact with the corporation through the
Internet; and
(B) access any service that can be provided
effectively through the Internet; and
(3) be cost-effective and developed through the
corporation's planning processes.
SECTION 17. Section 6, Chapter 1194, Acts of the 77th
Legislature, Regular Session, 2001, is amended to read as follows:
Sec. 6. The Texas State Affordable Housing Corporation
shall[:
[(1) give priority to a teacher who resides or teaches
in an area of the state with a teacher shortage, as determined by
the commissioner of education;
[(2)] aggressively pursue funding for the
professional educators [teachers] home loan program required by
Section 2306.562, Government Code[, as added by this Act; and
[(3) implement the teachers home loan program required
by that section not later than September 1, 2002].
SECTION 18. (a) The change in law made by this Act in
amending Chapter 1372, Government Code, applies only to an
application for an amount of the state ceiling set aside for issuers
of qualified mortgage bonds or qualified residential rental project
bonds in a year beginning on or after January 1, 2004. An
application for an amount of the state ceiling set aside for issuers
of qualified mortgage bonds or qualified residential rental project
bonds in 2003 is governed by the law in effect immediately before
the effective date of this Act, and the former law is continued in
effect for that purpose.
(b) The offices of the board of directors of the Texas State
Affordable Housing Corporation serving immediately before the
effective date of this Act are abolished at the time three or more
of the newly appointed directors under Subsection (c) of this
section qualify for office. The changes in law made by this Act to
the qualifications of or prohibitions on members of the board of
directors do not affect the entitlement of a member serving
immediately before the effective date of this Act to continue to
serve as provided by this subsection.
(c) The governor shall make five appointments to the board
of directors of the Texas State Affordable Housing Corporation in
accordance with Section 2306.554, Government Code, as amended by
this Act, as soon as possible on or after the effective date of this
Act. In making appointments under this subsection, the governor
shall designate:
(1) one member for a term expiring February 1, 2005;
(2) two members for terms expiring February 1, 2007;
and
(3) two members for terms expiring February 1, 2009.
(d) A member of the board of directors of the Texas State
Affordable Housing Corporation appointed under Subsection (c) of
this section is not required to comply with the training
requirement prescribed by Section 2306.5543, Government Code, as
added by this Act, until September 1, 2004.
(e) This Act does not prohibit a person who is a member of
the board of directors of the Texas State Affordable Housing
Corporation immediately before the effective date of this Act from
being appointed as a member of the board of directors on or after
the effective date of this Act if the person has the qualifications
required for the position under Subchapter Y, Chapter 2306,
Government Code, as amended by this Act.
SECTION 19. Section 2306.568, Government Code, as added by
this Act, applies only to a complaint filed with the board of
directors of the Texas State Affordable Housing Corporation on or
after the effective date of this Act, regardless of whether the
conduct or act that is the subject of the complaint occurred or was
committed before, on, or after the effective date of this Act.
SECTION 20. This Act takes effect September 1, 2003.