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A BILL TO BE ENTITLED
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AN ACT
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relating to the operation and administration of the Texas |
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First-Time Homebuyer Program by the Texas Department of Housing and |
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Community Affairs and to certain down payment assistance under that |
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program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 2306, Government Code, is amended by |
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adding Subchapter MM to read as follows: |
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SUBCHAPTER MM. TEXAS FIRST-TIME HOMEBUYER PROGRAM |
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Sec. 2306.1071. DEFINITIONS. In this subchapter: |
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(1) "First-time homebuyer" means a person who: |
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(A) resides in this state on the date on which an |
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application is filed; and |
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(B) has not owned a home during the three years |
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preceding the date on which an application under this subchapter is |
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filed. |
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(2) "Home" means a dwelling in this state in which a |
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first-time homebuyer intends to reside as the homebuyer's principal |
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residence. |
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(3) "Mortgage lender" has the meaning assigned by |
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Section 2306.004. |
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(4) "Program" means the Texas First-Time Homebuyer |
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Program. |
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(5) "Targeted area" means a census tract in which 70 |
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percent or more of the families have incomes that are 80 percent or |
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less of the statewide median income or an area of chronic economic |
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distress. |
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Sec. 2306.1072. TEXAS FIRST-TIME HOMEBUYER PROGRAM. (a) |
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The Texas First-Time Homebuyer Program shall facilitate the |
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origination of single-family mortgage loans for eligible |
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first-time homebuyers. |
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(b) The program may include down payment and closing cost |
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assistance. |
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Sec. 2306.1073. ADMINISTRATION OF PROGRAM; RULES. (a) The |
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department shall administer the program. |
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(b) The board shall adopt rules governing: |
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(1) the administration of the program; |
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(2) the making of loans under the program; |
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(3) the criteria for approving participating mortgage |
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lenders; |
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(4) the use of insurance on the loans and the homes |
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financed under the program, as considered appropriate by the board |
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to provide additional security for the loans; |
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(5) the verification of occupancy of the home by the |
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homebuyer as the homebuyer's principal residence; and |
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(6) the terms of any contract made with any mortgage |
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lender for processing, originating, servicing, or administering |
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the loans. |
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Sec. 2306.1074. ELIGIBILITY. (a) To be eligible for a |
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mortgage loan under this subchapter, a homebuyer must: |
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(1) qualify as a first-time homebuyer under this |
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subchapter; |
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(2) have an income of not more than 115 percent of area |
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median family income, adjusted for family size, as permitted by |
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Section 143, Internal Revenue Code of 1986; and |
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(3) meet any additional requirements or limitations |
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prescribed by the department. |
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(b) To be eligible for a loan under this subchapter to |
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assist a homebuyer with down payment and closing costs, a homebuyer |
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must: |
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(1) qualify as a first-time homebuyer under this |
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subchapter; |
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(2) have an income of not more than 80 percent of area |
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median family income, adjusted for family size, as permitted by |
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Section 143, Internal Revenue Code of 1986, if the homebuyer is |
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purchasing a property that is not located in a targeted area; and |
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(3) meet any additional requirements or limitations |
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prescribed by the department. |
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(c) The department may contract with other agencies of the |
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state or with private entities to determine whether applicants |
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qualify as first-time homebuyers under this section or otherwise to |
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administer all or part of this section. |
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Sec. 2306.1075. FEES. The board of directors of the |
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department may set and collect from each applicant any fees the |
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board considers reasonable and necessary to cover the expenses of |
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administering the program. |
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Sec. 2306.1076. FUNDING. (a) The department shall ensure |
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that a loan under this section is structured in a way that complies |
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with any requirements associated with the source of the funds used |
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for the loan. |
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(b) In addition to funds set aside for the program under |
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Section 1372.023, the department may solicit and accept funding for |
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the program from the following sources: |
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(1) gifts and grants for the purposes of this section; |
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and |
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(2) any source of funds or subsidy available to the |
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department as provided by Section 2306.142. |
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SECTION 2. (a) The Texas Department of Housing and |
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Community Affairs shall adopt the rules required by Section |
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2306.1073, Government Code, as added by this Act, not later than |
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December 1, 2007. |
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(b) The changes in law made by this Act apply only to an |
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application for assistance from the Texas First-Time Homebuyer |
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Program that is filed on or after January 1, 2008. |
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SECTION 3. This Act takes effect September 1, 2007. |