Amend HB 3873 (Senate committee printing) by striking SECTION 
24, adding the following SECTIONS, and renumbering subsequent 
SECTIONS accordingly:
	SECTION ____  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)  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:
		(1)  [at least] 95 percent of these funds for 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; and
		(2)  five percent of these[.  All] funds [not set aside 
under this subsection shall be used] for the benefit of persons with 
disabilities who live in any area of this state [areas other than 
non-participating areas].
	SECTION ____  Section 2306.111, Government Code, is amended 
by amending Subsections (d-1):
	(d-1)  Funds or credits are not required to be allocated 
according to the regional allocation formula under Subsection (d) 
if:
		(1)  the funds or credits are reserved for 
contract-for-deed conversions or for set-asides mandated by state 
or federal law; and
		(2)  each contract-for-deed allocation or set-aside 
allocation equals not more than 10 percent of the total allocation 
of funds or credits for the applicable program;
		(3)  the funds or credits are allocated by the 
department primarily to serve persons with disabilities.
	SECTION ____  It is the intent of the legislature that the 
passage by the 80th Legislature, Regular Session, 2007, of another 
bill that amends Chapter 2306, Government Code, and the amendments 
made by this Act shall be harmonized, if possible, as provided by 
Section 311.025(b), Government Code, so that effect may be given to 
each.  If the amendments made by this Act to Chapter 2306, 
Government Code, and the amendments made to Chapter 2306, 
Government Code, by any other bill are irreconcilable, it is the 
intent of the legislature that this Act prevail, regardless of the 
relative dates of enactment of this Act and the other bill or bills, 
but only to the extent that any differences are irreconcilable.
	SECTION ____  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 ____  The following provisions of the Government 
Code are repealed:  
		(1)  Sections 2306.021, 2306.062, 2306.0631, 
2306.0661, 2306.0721(h), 2306.079, 2306.081(e), 2306.254, 
2306.257(b), (c), and (d), and 2306.806;
		(2)  Subchapter N, Chapter 2306;                                              
		(3)  Subchapter BB, Chapter 2306;                                             
		(4)  Subchapter CC, Chapter 2306; and                                         
		(5)  Subchapter EE, Chapter 2306.