79R313 QS-D
By: Cook of Navarro H.B. No. 156
A BILL TO BE ENTITLED
AN ACT
relating to the eligibility of certain law enforcement officers to
participate in a low-interest home loan program offered by the
state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 2306.563, Government
Code, as added by Chapter 1050, Acts of the 78th Legislature,
Regular Session, 2003, is amended to read as follows:
Sec. 2306.563. FIRE FIGHTER AND LAW ENFORCEMENT [POLICE]
OFFICER HOME LOAN PROGRAM.
SECTION 2. Sections 2306.563(a)(2), (4), and (5),
Government Code, as added by Chapter 1050, Acts of the 78th
Legislature, Regular Session, 2003, are amended to read as follows:
(2) "Home" means a dwelling in this state in which a
fire fighter or law enforcement [police] officer intends to reside
as the fire fighter's or the law enforcement [police] officer's
principal residence.
(4) "Law enforcement officer" means a police officer
as defined ["Police officer" has the meaning assigned] by Section
143.003, Local Government Code, or a sheriff or deputy sheriff.
(5) "Program" means the fire fighter and law
enforcement [police] officer home loan program.
SECTION 3. Sections 2306.563(b), (c), (d), and (f),
Government Code, as added by Chapter 1050, Acts of the 78th
Legislature, Regular Session, 2003, are amended to read as follows:
(b) The corporation shall establish a program to provide
eligible fire fighters and law enforcement [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 law enforcement [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 law enforcement [police] officers 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
fire fighter or law enforcement [police] officer as the fire
fighter's or the law enforcement [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.
SECTION 4. Section 1372.0222, Government Code, is amended
to read as follows:
Sec. 1372.0222. DEDICATION OF PORTION OF STATE CEILING FOR
FIRE FIGHTER AND LAW ENFORCEMENT [POLICE] OFFICER HOME LOAN
PROGRAM. Until August 1, 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
law enforcement [police] officer home loan program established
under Section 2306.563.
SECTION 5. 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, for professional educators under the
professional educators home loan program as provided by Section
2306.562, and for fire fighters and law enforcement [police]
officers under the fire fighter and law enforcement [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 by issuing qualified 501(c)(3)
bonds and qualified residential rental project bonds and by making
affordable loans to individuals and families of low, very low, and
extremely low income, to professional educators under the
professional educators home loan program, and to fire fighters and
law enforcement [police] officers under the fire fighter and law
enforcement [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 6. This Act takes effect September 1, 2005.