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A BILL TO BE ENTITLED
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AN ACT
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relating to the owner-builder loan program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2306.753(b), Government Code, is amended |
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to read as follows: |
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(b) To be eligible for a loan under this subchapter, an |
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owner-builder: |
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(1) may not have an annual income that exceeds 60 |
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percent, as determined by the department, of the greater of the |
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state or local median family income, when combined with the income |
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of any person who resides with the owner-builder; |
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(2) must have resided in this state for the preceding |
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six months; |
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(3) must have successfully completed an owner-builder |
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education class under Section 2306.756; and |
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(4) [must agree to:
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[(A) provide at least 60 percent of the labor
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necessary to build the proposed housing] by working through a |
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state-certified nonprofit owner-builder housing program, must |
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agree to provide a reasonable amount of labor, as established by |
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department rule, to build: |
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(A) the proposed housing; or |
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(B) [provide an amount of labor equivalent to the
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amount required under Paragraph (A) in connection with building] |
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housing for others [through a state-certified nonprofit
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owner-builder housing program]. |
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SECTION 2. Sections 2306.754(a) and (b), Government Code, |
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are amended to read as follows: |
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(a) The department may establish the minimum amount of a |
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loan under this subchapter, but a loan may not exceed 50 percent of |
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an amount equal to 75 percent of the area loan limit for the county |
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in which the real property is located, as established and updated at |
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least annually for the direct single family housing programs |
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operated by the rural housing service of the United States |
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Department of Agriculture, as described by 7 C.F.R. Part 3550 |
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[$30,000]. |
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(b) If it is not possible for an owner-builder to purchase |
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necessary real property and build adequate housing for the minimum |
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loan amount established as described by Subsection (a) [$30,000], |
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the owner-builder must obtain the additional amount necessary [that
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exceeds $30,000] from one or more local governmental entities, |
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nonprofit organizations, or private lenders. The total amount of |
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loans made by the department and other entities to an owner-builder |
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under this subchapter may not exceed 75 percent of the area loan |
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limit for the county in which the real property is located, as |
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established and updated at least annually for the direct single |
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family housing programs operated by the rural housing service of |
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the United States Department of Agriculture, as described by 7 |
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C.F.R. Part 3550 [$60,000]. |
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SECTION 3. Section 2306.753(d), Government Code, is |
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repealed. |
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SECTION 4. The changes in law made by this Act apply to a |
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loan that is initially awarded to an owner-builder under Subchapter |
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FF, Chapter 2306, Government Code, on or after the effective date of |
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this Act. |
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SECTION 5. This Act takes effect September 1, 2007. |