79R5313 MFC-F
By: Menendez H.B. No. 2714
A BILL TO BE ENTITLED
AN ACT
relating to the operation and functions of the Texas Department of
Housing and Community Affairs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.093, Government Code, is amended to
read as follows:
Sec. 2306.093. HOUSING ASSISTANCE GOAL. In administering
the programs under this subchapter, the department [By action of
the board the community affairs division] shall have a goal to apply
a minimum of 25 percent of the community affairs division's total
housing-related funds toward housing assistance for individuals
and families of very low income.
SECTION 2. Section 2306.111, Government Code, is amended by
amending Subsections (b), (c-2), (d), (e), (f), and (i) and adding
Subsections (c-3) and (d-2) to read as follows:
(b) The department [housing finance division] shall adopt a
goal to apply an aggregate minimum of 25 percent of the housing
finance division's total housing funds toward housing assistance
for individuals and families of extremely low and very low income if
it is possible to obtain the operating subsidies necessary to meet
that goal.
(c-2) In allocating set-aside funds under Subsection (c),
the department may not give preference to nonprofit providers of
affordable housing, except as expressly required by federal law.
(c-3) The department by rule shall set aside five percent of
the funds available under Subsection (c) for the benefit of
individuals with special needs who live in small cities and rural
areas that do not qualify to receive funds under the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
Section 12701 et seq.) directly from the United States Department
of Housing and Urban Development. The department shall annually
use $10 million of the funds available under Subsection (c) for
multifamily housing development construction or rehabilitation in
an application cycle that is open to all eligible applicants under
Section 2306.202. If the department does not receive a sufficient
number of financially feasible applications for housing for
individuals with special needs or multifamily housing development
construction or rehabilitation within 120 days of the beginning of
the application cycle, the funds shall be made available for other
purposes authorized under the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. Section 12701 et seq.).
(d) The department shall allocate housing funds provided to
the state under the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. Section 12701 et seq.), housing trust funds
administered by the department under Sections 2306.201-2306.206,
and commitments issued under the federal low income housing tax
credit program administered by the department under Subchapter DD
to all urban areas, historically underserved urban [urban/exurban]
areas, as described by Section 2306.1116, and rural areas of each
uniform state service region based on a formula developed by the
department that is based on the need for housing assistance and the
availability of housing resources in those urban areas,
historically underserved urban [urban/exurban] areas, if
applicable, and rural areas, provided that the allocations are
consistent with applicable federal and state requirements and
limitations. The department shall use the information contained in
its annual state low income housing plan and shall use other
appropriate data to develop the formula. For purposes of the
formula, in determining the availability of housing resources with
respect to the department's multifamily housing development
construction or rehabilitation programs, the department shall
consider the dollar amount of multifamily tax exempt bonds, HOME
funds used for multifamily housing development construction or
rehabilitation, and financing provided by or through a governmental
unit for multifamily housing development construction or
rehabilitation but may not include financing involved in the
transfer of ownership of an existing development. If the
department determines under the formula that an insufficient number
of eligible applications for assistance out of funds or credits
allocable under this subsection are submitted to the department
from a particular uniform state service region, the department
shall use the unused funds or credits allocated to that region for
all urban areas, historically underserved urban [urban/exurban]
areas, if applicable, and rural areas in other uniform state
service regions based on identified need and financial feasibility.
(d-2) Notwithstanding Subsection (d), if the department
determines that there is less than $5 million in housing trust funds
available in a calendar year to allocate according to Sections
2306.201-2306.206, the department shall allocate the housing trust
funds among the uniform state service regions without dividing the
funds between urban and rural areas. For each uniform state service
region, the department will make the first award of funds under this
subsection to the applicant with the highest scoring rural
application.
(e) The department shall include in its annual low income
housing plan under Section 2306.0721:
(1) the formula developed by the department under
Subsection (d); and
(2) the allocation targets established under the
formula for the urban areas, historically underserved urban
[urban/exurban] areas, if applicable, and rural areas of each
uniform state service region.
(f) The department shall include in its annual low income
housing report under Section 2306.072 the amounts of funds and
credits allocated to the urban areas, historically underserved
urban [urban/exurban] areas, if applicable, and rural areas of each
uniform state service region in the preceding year for each federal
and state program affected by the requirements of Subsection (d).
(i) The director shall designate an employee of the
department to act as the information officer and as a liaison with
the public regarding each application seeking an allocation of
housing funds described by this section. The department liaison
shall provide written notice to the state senator and state
representative of the district containing the development that is
the subject of the application. The liaison shall provide to the
elected state officials during the application process periodic
status reports containing information relating to department or
board actions on the application.
SECTION 3. Section 2306.111(c), Government Code, as amended
by Chapters 1367 and 1448, Acts of the 77th Legislature, Regular
Session, 2001, is reenacted and amended to read as follows:
(c) Except as provided by Subsection (c-3), in [In]
administering federal housing funds provided to the state under the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
Section 12701 et seq.), the department shall expend 100 [at least
95] percent of these funds for:
(1) the benefit of non-participating small cities and
rural areas that do not qualify to receive funds under the
Cranston-Gonzalez National Affordable Housing Act directly from
the United States Department of Housing and Urban Development; or
(2) the preservation of existing affordable housing
that receives financing from the United States Department of
Agriculture. [All funds not set aside under this subsection shall
be used for the benefit of persons with disabilities who live in
areas other than small cities and rural areas.]
SECTION 4. Section 2306.1111(a), Government Code, is
amended to read as follows:
(a) Notwithstanding any other state law and to the extent
consistent with federal law, the department shall establish a
uniform application and funding cycle for all single-family and
multifamily housing programs administered by the department under
this chapter, including a uniform application and funding cycle for
housing sponsors of multifamily housing developments applying for
funding under the housing funds provided to the state under the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
Section 12701 et seq.), housing trust funds administered by the
department under Sections 2306.201-2306.206, and commitments
issued under the federal low income housing tax credit program
administered by the department under Subchapter DD. If the
department does not receive a sufficient number of financially
feasible applications during the uniform application and funding
cycle under this subsection, the department may consider additional
applications for housing funds, except that the department may not
consider any applications submitted after the 120th day before the
beginning of the uniform application and funding cycle.
SECTION 5. Subchapter F, Chapter 2306, Government Code, is
amended by adding Section 2306.1116 to read as follows:
Sec. 2306.1116. HISTORICALLY UNDERSERVED URBAN AREAS. (a)
In this subchapter, a historically underserved urban area is a
community that:
(1) in uniform state service region three:
(A) is located in Collin, Dallas, Denton, Ellis,
Hood, Hunt, Kaufman, Johnson, Parker, Rockwall, or Tarrant County;
(B) is not located within the municipal
boundaries of Arlington, Dallas, or Fort Worth; and
(C) does not meet the definition of a rural area;
(2) in uniform state service region six:
(A) is located in Chambers, Fort Bend, Harris,
Liberty, Montgomery, or Waller County;
(B) is not located within the municipal
boundaries of Houston; and
(C) does not meet the definition of a rural area;
(3) in uniform state service region seven:
(A) is located in Bastrop, Caldwell, Hays,
Travis, or Williamson County;
(B) is not located within the municipal
boundaries of Austin; and
(C) does not meet the definition of a rural area;
or
(4) in uniform state service region nine:
(A) is located in Atascosa, Bexar, Comal,
Guadalupe, or Wilson County;
(B) is not located within the municipal
boundaries of San Antonio; and
(C) does not meet the definition of a rural area.
(b) The identification of the counties described by
Subsection (a) shall be periodically adjusted as necessary to
conform with the definition or identification of metropolitan
statistical areas for uniform state service regions three, six,
seven, and nine.
(c) In administering the federal low income housing tax
credit program, the department shall further subdivide the urban
allocation in any uniform state service region containing a
historically underserved urban area, based on the ratio in
population between the total number of historically underserved
urban areas within an urban area and the population of the urban
area as a whole.
(d) Notwithstanding this section and Section 2306.111,
before the application of the regional allocation formula for
calendar years 2006 and 2007, the department shall allocate an
additional $2 million per year to uniform state service region
nine, an additional $1 million per year to uniform state service
region 13, and an additional $750,000 per year to uniform state
service region 11 to alleviate the underfunding for those uniform
state service regions in prior years.
(e) The department shall use forward financial commitments
in 2005 or 2006 to satisfy the provisions of Subsection (d).
(f) In allocating federal low income housing tax credit
commitments under Subchapter DD, the department shall use five
percent of each uniform state service region's allocation to
developments financed through the Texas Rural Development Office of
the United States Department of Agriculture that:
(1) do not exceed 48 units if the development requires
new construction; or
(2) are any size if rehabilitation is involved.
(g) Any funds allocated to developments that satisfy the
requirements of this section and that involve rehabilitation must
come from the funds set aside for at-risk developments under
Section 2306.6714.
SECTION 6. Section 2306.111(g), Government Code, is
repealed.
SECTION 7. The changes in law made by this Act relating to
the evaluation of applications for financial assistance
administered by the Texas Department of Housing and Community
Affairs apply only to an application submitted on or after the
effective date of this Act. An application submitted before the
effective date of this Act is governed by the law in effect when the
application was submitted, and the former law is continued in
effect for that purpose.
SECTION 8. 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.