79R5161 MFC-D

By:  Leibowitz                                                    H.B. No. 1391



A BILL TO BE ENTITLED

AN ACT

relating to the type of homes that may be financed under certain 
veterans' assistance programs.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 162.003(c), Natural Resources Code, is 
amended to read as follows:
	(c)  The board shall determine the quality and type of homes 
to be financed under the Veterans' Housing Assistance Program.  In 
the program, the board shall prohibit the financing of homes that 
are newly constructed by volume builders who do not make available 
for construction a floor plan that is designed to be accessible for 
persons with special needs.  In this subsection, "volume builder" 
means a builder who sells at least 25 homes each year.
	SECTION 2.  Section 164.003, Natural Resources Code, is 
amended to read as follows:
	Sec. 164.003.  FINANCIAL ASSISTANCE PROGRAMS.  (a) The board 
may establish one or more programs for providing financial 
assistance to veterans under this chapter.  A program may be limited 
to the purpose of purchasing land, selling land to veterans, making 
home mortgage loans to veterans, or providing one or more veterans 
homes or veterans cemeteries.
	(b)  To the extent a financial assistance program is for the 
purpose of purchasing land or selling land to veterans, the program 
shall be administered, to the extent consistent with this chapter 
and otherwise deemed practicable and desirable by the board, in 
accordance with the board's Veterans' Land Program.
	(c)  To the extent a financial assistance program is for the 
purpose of making home mortgage loans to veterans, the program 
shall be administered, to the extent consistent with this chapter 
and otherwise deemed practicable and desirable by the board, in 
accordance with the board's Veterans' Housing Assistance Program.  
In the program, the board shall prohibit the financing of homes that 
are newly constructed by volume builders who do not make available 
for construction a floor plan that is designed to be accessible for 
persons with special needs.  In this subsection, "volume builder" 
has the meaning assigned by Section 162.003(c).
	SECTION 3.  Beginning on the effective date of this Act, the 
Veterans' Land Board shall prohibit the financing of homes as 
described by Sections 162.003(c) and 164.003, Natural Resources 
Code, as amended by this Act, except that the board may not prohibit 
the financing of homes for which a contractual obligation exists on 
the effective date of this Act.
	SECTION 4.  This Act takes effect September 1, 2005.