By: Shapleigh S.B. No. 1077
(In the Senate - Filed March 10, 2003; March 17, 2003, read
first time and referred to Committee on International Relations and
Trade; April 28, 2003, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 4, Nays 0;
April 28, 2003, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1077 By: Shapleigh
A BILL TO BE ENTITLED
AN ACT
relating to the provision of assistance to colonias and colonia
residents in certain areas of the state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter GG, Chapter 2306,
Government Code, as added by Chapter 1367, Acts of the 77th
Legislature, Regular Session, 2001, is amended to read as follows:
SUBCHAPTER GG. COLONIA MODEL SUBDIVISION AND DOWN PAYMENT
ASSISTANCE PROGRAMS [PROGRAM]
SECTION 2. Section 2306.781, Government Code, as added by
Chapter 1367, Acts of the 77th Legislature, Regular Session, 2001,
is amended to read as follows:
Sec. 2306.781. DEFINITIONS [DEFINITION]. In this
subchapter:
(1) "Down payment assistance program" means the
colonia down payment program established under this subchapter.
(2) [,] "Model subdivision program" means the colonia
model subdivision program established under this subchapter.
SECTION 3. The heading to Section 2306.782, Government
Code, as added by Chapter 1367, Acts of the 77th Legislature,
Regular Session, 2001, is amended to read as follows:
Sec. 2306.782. ESTABLISHMENT OF MODEL SUBDIVISION PROGRAM.
SECTION 4. Subsection (a), Section 2306.783, Government
Code, as added by Chapter 1367, Acts of the 77th Legislature,
Regular Session, 2001, is amended to read as follows:
(a) The department shall establish a colonia model
subdivision revolving loan fund in the department. Money in the
fund may be used only for purposes of the model subdivision program.
SECTION 5. Section 2306.785, Government Code, as added by
Chapter 1367, Acts of the 77th Legislature, Regular Session, 2001,
is amended to read as follows:
Sec. 2306.785. MODEL SUBDIVISION PROGRAM LOANS. (a) The
department may make loans under the model subdivision program only
to:
(1) colonia self-help centers established under
Subchapter Z; and
(2) community housing development organizations
certified by the department.
(b) A loan made under the model subdivision program may be
used only for the payment of:
(1) costs associated with the purchase of real
property;
(2) costs of surveying, platting, and subdividing or
resubdividing real property;
(3) fees, insurance costs, or recording costs
associated with the development of the subdivision;
(4) costs of providing proper infrastructure
necessary to support residential uses;
(5) real estate commissions and marketing fees; and
(6) any other costs as the department by rule
determines to be reasonable and prudent to advance the purposes of
this subchapter.
(c) A loan made by the department under the model
subdivision program may not bear interest and may not exceed a term
of 36 months.
(d) The department may offer a borrower under the model
subdivision program one loan renewal for each subdivision.
SECTION 6. Section 2306.786, Government Code, as added by
Chapter 1367, Acts of the 77th Legislature, Regular Session, 2001,
is amended to read as follows:
Sec. 2306.786. ADMINISTRATION OF MODEL SUBDIVISION
PROGRAM; RULES. (a) In administering the model subdivision
program, the department by rule shall adopt:
(1) any subdivision standards in excess of local
standards the department considers necessary;
(2) loan application procedures;
(3) program guidelines; and
(4) contract award procedures.
(b) The department shall adopt rules to:
(1) ensure that a borrower under the model subdivision
program sells real property under the program only to an individual
borrower, nonprofit housing developer, or for-profit housing
developer for the purposes of constructing residential dwelling
units; and
(2) require a borrower under the model subdivision
program to convey real property under the program at a cost that is
affordable to:
(A) individuals and families of extremely low
income; or
(B) individuals and families of very low income.
SECTION 7. Subchapter GG, Chapter 2306, Government Code, as
added by Chapter 1367, Acts of the 77th Legislature, Regular
Session, 2001, is amended by adding Section 2306.787 to read as
follows:
Sec. 2306.787. COLONIA DOWN PAYMENT ASSISTANCE PROGRAM.
(a) In this section:
(1) "Colonia" means a geographic area that:
(A) is an economically distressed area as defined
by Section 17.921, Water Code; and
(B) is located in a county any part of which is
within 50 miles of an international border.
(2) "Eligible individuals and families" means
individuals and families of extremely low and very low income who
reside in a colonia.
(b) The department shall establish the colonia down payment
assistance program to provide down payment assistance to
individuals and families of extremely low and very low income who
would otherwise remain in substandard colonias. Down payment
assistance may be provided in the form of low-interest loans,
credit enhancement, or any other appropriate form of loan-related
assistance.
(c) On application, the department may provide a loan to
eligible individuals and families under this section by using, in
an amount not to exceed $2 million for each state fiscal year, money
from federal housing funds provided to the state under the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
Section 12701 et seq.).
(d) A loan made by the department under the down payment
assistance program may bear interest at a reasonable rate set by the
department and may not exceed a term of 30 years.
(e) In administering the down payment assistance program,
the department by rule shall adopt program guidelines and loan
application procedures.
SECTION 8. The Texas Department of Housing and Community
Affairs shall adopt the rules required by Section 2306.787,
Government Code, as added by this Act, not later than December 1,
2003.
SECTION 9. This Act takes effect September 1, 2003.
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