80R4862 EJI-D

By: Rodriguez H.B. No. 3627

A BILL TO BE ENTITLED

AN ACT

relating to housing funds for certain disabled persons and the creation of the person with permanent disability home loan program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. 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 the [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, except that the department may elect to spend any amount of the [. 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 2. Section 2306.111(d-1), Government Code, is amended to read as follows:

(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, including any set-asides allocated by the department for persons with disabilities under Subsection (c); 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.

SECTION 3. Subchapter B, Chapter 1372, Government Code, is amended by adding Section 1372.0225 to read as follows:

Sec. 1372.0225. DEDICATION OF PORTION OF STATE CEILING FOR PERSON WITH PERMANENT DISABILITY HOME LOAN PROGRAM. Until August 1, out of that portion of the state ceiling that is available exclusively for reservations by issuers of qualified mortgage bonds under Section 1372.022, $5 million shall be allotted each year and made available exclusively to the Texas State Affordable Housing Corporation for the purpose of issuing qualified mortgage bonds in connection with the person with permanent disability home loan program established under Section 2306.5624.

SECTION 4. Sections 2306.553(a) and (b), Government Code, are amended to read as follows:

(a) The public purpose of the corporation is to perform activities and services that the corporation's board of directors determines will promote the public health, safety, and welfare through the provision of adequate, safe, and sanitary housing primarily for individuals and families of low, very low, and extremely low income and[,] for persons who are eligible for loans [professional educators] under the [professional educators] home loan programs [program as] provided by Sections [Section] 2306.562, [for fire fighters, corrections officers, county jailers, public security officers, and peace officers under the fire fighter, law enforcement officer, and security officer home loan program as provided by Section] 2306.5621, [and for professional nursing program faculty members under the professional nursing program faculty member home loan program as provided by Section] 2306.5622, and 2306.5624. The activities and services shall include engaging in mortgage banking activities and lending transactions and acquiring, holding, selling, or leasing real or personal property.

(b) The corporation's primary public purpose is to facilitate the provision of housing by issuing qualified 501(c)(3) bonds and qualified residential rental project bonds and by making affordable loans to individuals and families of low, very low, and extremely low income and[,] to persons who are eligible for loans under the home loan programs provided by Sections 2306.562, 2306.5621, 2306.5622, and 2306.5624 [professional educators under the professional educators home loan program, to fire fighters, corrections officers, county jailers, public security officers, and peace officers under the fire fighter, law enforcement officer, and security officer home loan program, and to professional nursing program faculty members under the professional nursing program faculty member home loan program]. The corporation may make first lien, single family purchase money mortgage loans for single family homes only to individuals and families of low, very low, and extremely low income if the individual's or family's household income is not more than the greater of 60 percent of the median income for the state, as defined by the United States Department of Housing and Urban Development, or 60 percent of the area median family income, adjusted for family size, as defined by that department. The corporation may make loans for multifamily developments if:

(1) at least 40 percent of the units in a multifamily development are affordable to individuals and families with incomes at or below 60 percent of the median family income, adjusted for family size; or

(2) at least 20 percent of the units in a multifamily development are affordable to individuals and families with incomes at or below 50 percent of the median family income, adjusted for family size.

SECTION 5. Subchapter Y, Chapter 2306, Government Code, is amended by adding Section 2306.5624 to read as follows:

Sec. 2306.5624. PERSON WITH PERMANENT DISABILITY HOME LOAN PROGRAM. (a) In this section:

(1) "Home" means a dwelling in this state in which a person with a permanent disability intends to reside as the person's principal residence.

(2) "Mortgage lender" has the meaning assigned by Section 2306.004.

(3) "Person with a permanent disability" means a person who has a permanent disability under the meaning of "disability" assigned by Section 3(2), Americans with Disabilities Act of 1990 (42 U.S.C. Section 12102(2)).

(4) "Program" means the person with permanent disability home loan program.

(b) The corporation shall establish a program to provide low-interest home mortgage loans to eligible persons with permanent disabilities and parents, legal guardians, or conservators of children who are persons with permanent disabilities.

(c) To be eligible for a loan under this section, at the time a person files an application for the loan, the person must:

(1) be a person with a permanent disability or the parent, legal guardian, or conservator of a child who is a person with a permanent disability;

(2) reside in this state; and

(3) have an income of not more than 115 percent of area median family income, adjusted for family size.

(d) The corporation may contract with other agencies of the state or with private entities to determine whether applicants qualify under this section as persons with permanent disabilities or parents, legal guardians, or conservators of children who are persons with permanent disabilities or otherwise to administer all or part of this section.

(e) The board of directors of the corporation may set and collect from each applicant any fees the board considers reasonable and necessary to cover the expenses of administering the program.

(f) The board of directors of the corporation shall adopt rules governing:

(1) the administration of the program;

(2) the making of loans under the program;

(3) the criteria for approving mortgage lenders;

(4) the use of insurance on the loans and the homes financed under the program, as considered appropriate by the board to provide additional security for the loans;

(5) the verification of occupancy of the home by the person with a permanent disability as the person's principal residence; and

(6) the terms of any contract made with any mortgage lender for processing, originating, servicing, or administering the loans.

(g) The corporation shall ensure that a loan under this section is structured in a way that complies with any requirements associated with the source of the funds used for the loan.

(h) In addition to funds set aside for the program under Section 1372.0225, the corporation may solicit and accept funding for the program from the following sources:

(1) gifts and grants for the purposes of this section;

(2) available money in the housing trust fund established under Section 2306.201, to the extent available to the corporation;

(3) federal block grants that may be used for the purposes of this section, to the extent available to the corporation;

(4) other state or federal programs that provide money that may be used for the purposes of this section; and

(5) amounts received by the corporation in repayment of loans made under this section.

(i) This section expires September 1, 2018.

SECTION 6. The Texas State Affordable Housing Corporation shall:

(1) aggressively pursue funding for the person with permanent disability home loan program required by Section 2306.5624, Government Code, as added by this Act; and

(2) implement the person with permanent disability home loan program required by that section not later than September 1, 2007, or as soon thereafter as practicable.

SECTION 7. 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, 2007.