79R4370 MFC-D
By: Ritter H.B. No. 1007
A BILL TO BE ENTITLED
AN ACT
relating to certain low-interest home loan programs administered by
the Texas State Affordable Housing Corporation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.563, Government Code, as added by
Chapter 1050, Acts of the 78th Legislature, Regular Session, 2003,
is renumbered as Section 2306.5621, Government Code, and amended to
read as follows:
Sec. 2306.5621 [Sec. 2306.563]. FIRE FIGHTER AND LAW
ENFORCEMENT OR SECURITY [POLICE] OFFICER HOME LOAN PROGRAM. (a) In
this section:
(1) "Fire fighter" means a member of a fire department
who performs a function listed in [has the meaning assigned by]
Section 419.021(3)(C), [143.003, Local] Government Code.
(2) "Home" means a dwelling in this state in which a
fire fighter, corrections officer, county jailer, public security
officer, or peace [police] officer intends to reside as the fire
fighter's or the [police] officer's or jailer's principal
residence.
(3) "Mortgage lender" has the meaning assigned by
Section 2306.004.
(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, law enforcement
officer, and security [police] officer home loan program.
(6) "Corrections officer" means an officer of a state
jail felony facility authorized by Subchapter A, Chapter 507.
(7) "County jailer" has the meaning assigned by
Section 1701.001, Occupations Code.
(8) "Public security officer" has the meaning assigned
by Section 1701.001, Occupations Code.
(b) The corporation shall establish a program to provide
eligible fire fighters, corrections officers, county jailers,
public security 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, county
jailer, public security 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, or the maximum
amount permitted by Section 143(f), Internal Revenue Code of 1986,
whichever is greater.
(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, county jailers,
public security officers, or peace [police] officers under this
section or otherwise to administer all or part of this section.
(e) The board of directors of the corporation may set and
collect from each applicant any fees the board considers reasonable
and necessary to cover the expenses of administering the program.
(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, county jailer, public security
officer, or peace [police] officer as the fire fighter's or the
[police] officer's or jailer's principal residence; and
(6) the terms of any contract made with any mortgage
lender for processing, originating, servicing, or administering
the loans.
(g) The corporation shall ensure that a loan under this
section is structured in a way that complies with any requirements
associated with the source of the funds used for the loan.
(h) In addition to funds set aside for the program under
Section 1372.0222, the corporation may solicit and accept funding
for the program from the following sources:
(1) gifts and grants for the purposes of this section;
(2) available money in the housing trust fund
established under Section 2306.201, to the extent available to the
corporation;
(3) federal block grants that may be used for the
purposes of this section, to the extent available to the
corporation;
(4) other state or federal programs that provide money
that may be used for the purposes of this section; and
(5) amounts received by the corporation in repayment
of loans made under this section.
(h-1) To fund home mortgage loans for eligible fire
fighters, corrections officers, county jailers, public security
officers, and peace officers under this section, the corporation
may use proceeds received from the sale of bonds, notes, or other
obligations issued under the fire fighter and police officer home
loan program as that program existed immediately before amendment
of this section by the 79th Legislature, Regular Session, 2005,
regardless of the eligibility standards for loans made under the
fire fighter and police officer home loan program and regardless of
when the corporation received the proceeds from those bonds, notes,
or other obligations issued under that program.
(i) This section expires September 1, 2014.
SECTION 2. 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 OR SECURITY [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, law enforcement officer, and security [police] officer
home loan program established under Section 2306.5621 [2306.563].
SECTION 3. Section 1372.025(b), Government Code, is amended
to read as follows:
(b) Subsection (a) does not apply to qualified mortgage
bonds or qualified residential rental project bonds made available
exclusively to the Texas Department of Housing and Community
Affairs under Section 1372.023 or the Texas State Affordable
Housing Corporation under Sections 1372.0221 and 1372.0222.
SECTION 4. Section 1372.028(d), Government Code, is amended
to read as follows:
(d) An issuer is not required to provide the statement
required by Subsection (c)(3)(F) if the issuer:
(1) is an issuer of a state-voted issue;
(2) is the Texas Department of Housing and Community
Affairs, [or] the Texas Agricultural Finance Authority, or the
Texas State Affordable Housing Corporation; or
(3) provides evidence that one or more binding
contracts have been entered into, or other evidence acceptable to
the board as described by program rule, to spend the unexpended
proceeds by the later of:
(A) 12 months after the date the board receives
the application; or
(B) December 31 of the program year for which the
application is filed.
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, corrections officers, county
jailers, public security officers, and peace [police] officers
under the fire fighter, law enforcement officer, and security
[police] officer home loan program as provided by Section 2306.5621
[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, county jailers, public security officers,
and peace [police] officers under the fire fighter, law enforcement
officer, and security [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 immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.