79R1747 YDB-D
By: Guillen H.B. No. 181
A BILL TO BE ENTITLED
AN ACT
relating to the eligibility of certain corrections and peace
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. This Act may be cited as the "Protectors
Provision Act."
SECTION 2. 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, CORRECTIONS OFFICER, AND PEACE
[POLICE] OFFICER HOME LOAN PROGRAM.
SECTION 3. Section 2306.563(a), Government Code, as added
by Chapter 1050, Acts of the 78th Legislature, Regular Session,
2003, is amended by amending Subdivisions (2), (4), and (5) and
adding Subdivision (6) to read as follows:
(2) "Home" means a dwelling in this state in which a
fire fighter, corrections officer, or peace [police] officer
intends to reside as the fire fighter's or the [police] officer's
principal residence.
(4) "Peace officer" ["Police officer"] has the meaning
assigned by Section 1.07(a)(36), Penal [143.003, Local Government]
Code.
(5) "Program" means the fire fighter, corrections
officer, and peace [police] officer home loan program.
(6) "Corrections officer" means an officer or employee
of a correctional facility described by Section 1.07(a)(14)(A),
(B), or (D), Penal Code.
SECTION 4. 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, corrections officers, and peace [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, corrections officer, or peace
[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, corrections officers, or peace [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, corrections officer, or peace [police] officer as the
fire fighter's or the [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 5. Section 1372.0222, Government Code, is amended
to read as follows:
Sec. 1372.0222. DEDICATION OF PORTION OF STATE CEILING FOR
FIRE FIGHTER, CORRECTIONS OFFICER, AND PEACE [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, corrections officer, and peace [police] officer home loan
program established under Section 2306.563.
SECTION 6. 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, corrections officers, and peace
[police] officers under the fire fighter, corrections officer, and
peace [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,
corrections officers, and peace [police] officers under the fire
fighter, corrections officer, and peace [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 7. This Act takes effect September 1, 2005.