80R15805 KCR-D

By: Menendez H.B. No. 3878

Substitute the following for H.B. No. 3878:

By: Martinez Fischer C.S.H.B. No. 3878

A BILL TO BE ENTITLED

AN ACT

relating to the operation and management of the Texas State Affordable Housing Corporation.

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

SECTION 1. Section 654.011, Government Code, is amended by adding Subsection (c) to read as follows:

(c) Notwithstanding Subsections (a) and (b) of this section, Section 654.012(4), or any other law, the position classification plan applies to all hourly, part-time, temporary, and regular, full-time salaried employees of the Texas State Affordable Housing Corporation, including the president of that corporation.

SECTION 2. Subchapter D, Chapter 2306, Government Code, is amended by adding Section 2306.07051 to read as follows:

Sec. 2306.07051. APPROVAL OF TEXAS STATE AFFORDABLE HOUSING CORPORATION. (a) Not later than March 1 of each odd-numbered year, the department shall approve or disapprove the biennial budget submitted by the Texas State Affordable Housing Corporation under Section 2306.572.

(b) If the department disapproves a biennial budget submitted under Section 2306.572, the department shall:

(1) inform the corporation in writing of the reason for the disapproval and the manner in which the budget must be changed to be approved; and

(2) request a revised biennial budget from the corporation.

(c) Not later than July 1 of each odd-numbered year, the department shall approve a biennial budget for the Texas State Affordable Housing Corporation for the state fiscal biennium that begins on September 1 of that same odd-numbered year.

SECTION 3. Section 2306.205, Government Code, is amended by amending Subsection (f) and adding Subsection (g) to read as follows:

(f) In addition to the money transferred into the housing trust fund under this section, and subject to Subsection (e), the department shall transfer into the fund the amount of any of the following types of revenue the Texas State Affordable Housing Corporation receives that exceeds the amount needed by the department or the Texas State Affordable Housing Corporation to pay the corporation's operating and overhead costs and maintain the corporation's fund reserves, including an insurance reserve or credit enhancement reserve established to administer the program:

(1) any origination fee, asset oversight fee, or [and] servicing fee the department or the Texas State Affordable Housing Corporation receives in relation to the administration of its 501(c)(3) bond program established pursuant to Section 2306.358; and

(2) any other revenue that the corporation receives from a source not described by Subdivision (1), other than donations made directly to [that exceeds the amount needed by the department or] the Texas State Affordable Housing Corporation [to pay its operating and overhead costs and fund reserves, including an insurance reserve or credit enhancement reserve established by the board in administering the program].

(g) The Texas State Affordable Housing Corporation promptly shall transfer to the department any excess revenue described by Subsection (f).

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 and[, 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]. 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 and 2306.5621 [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. The heading to Section 2306.5545, Government Code, is amended to read as follows:

Sec. 2306.5545. ETHICS AND CONFLICT OF INTEREST POLICIES.

SECTION 6. Section 2306.5545(a), Government Code, is amended to read as follows:

(a) The board of directors of the corporation shall require corporation employees to comply with the same ethical standards, rules, and laws with which Texas Department of Housing and Community Affairs employees must comply, including any standards, rules, or laws that prohibit Texas Department of Housing and Community Affairs employees from lobbying or engaging in lobby-related activities [develop and implement policies relating to employee conflicts of interest that are substantially similar to comparable policies that govern state employees].

SECTION 7. Section 2306.562(a), Government Code, is amended by amending Subdivision (3) and adding Subdivision (5) to read as follows:

(3) "Professional educator" means a classroom teacher, full-time paid teacher's aide, full-time librarian, full-time counselor certified under Subchapter B, Chapter 21, Education Code, [or] full-time school nurse, or a full-time faculty member of an undergraduate professional nursing program or graduate professional nursing program.

(5) "Undergraduate professional nursing program" and "graduate professional nursing program" have the meanings assigned by Section 54.221, Education Code.

SECTION 8. Sections 2306.562(b) and (c), Government Code, are amended to read as follows:

(b) The corporation shall establish a program to provide low-interest home mortgage loans to eligible professional educators whose income does not exceed 115 percent of area median family income, adjusted for family size[, with low-interest home mortgage loans].

(c) To be eligible for a loan under this section, a professional educator must:

(1) reside in this state on the application date; and

(2) be employed by a school district or be a full-time faculty member of an undergraduate professional nursing program or graduate professional nursing program in this state on the application date.

SECTION 9. Sections 2306.565(e) and (i), Government Code, are amended to read as follows:

(e) The board of directors of the corporation shall adopt criteria governing the method by which the staff of the corporation scores and ranks applications for an allocation under this section that are received in response to a request for proposals. The criteria must be substantially similar to, and at least as stringent as, the criteria the executive award and review advisory committee uses to develop funding priorities under Section 2306.1112. The criteria must also include:

(1) the cost per unit of the housing development;

(2) the proposed rent for a unit; and

(3) the income ranges of individuals and families to be served by the housing development.

(i) In underwriting an application, the corporation shall use underwriting standards that are similar to, and at least as stringent as, any underwriting standards that the executive award and review advisory committee recommends or develops under Section 2306.1112. The corporation shall pay the department a reasonable fee for underwriting an application for an allocation of low income housing tax credits if the housing development proposed in the application is or will be supported by an allocation of bond funds under this section.

SECTION 10. Subchapter Y, Chapter 2306, Government Code, is amended by adding Sections 2306.570 through 2306.572 to read as follows:

Sec. 2306.570. LOCATION OF OFFICE. (a) The administrative offices of the corporation must be located:

(1) in office space that is owned or leased by this state; and

(2) if possible, in the same building as or near to the administrative offices of a state agency or agencies that administer affordable housing programs in this state.

(b) The corporation's board of directors shall terminate, on the earliest date possible without the corporation being assessed a penalty of any nature, any lease or lease agreement that secures administrative office space for the corporation and that violates Subsection (a). This subsection expires on the date that the corporation first relocates the administrative offices of the corporation to a location that complies with Subsection (a).

Sec. 2306.571. SALARY OF EMPLOYEES AND PRESIDENT. (a) The corporation may not pay an employee of the corporation an amount that exceeds any applicable salary rates and provisions in the General Appropriations Act for a similarly classified employee that is subject to those salary rates and provisions.

(b) The corporation may not pay the president of the corporation a salary that exceeds the maximum salary for a Group IV exempt position as specified in the General Appropriations Act.

Sec. 2306.572. BUDGET REVIEW AND APPROVAL. (a) Not later than January 15 of each odd-numbered year, the corporation shall submit the corporation's proposed budget for the state fiscal biennium that begins on September 1 of that same odd-numbered year to:

(1) the presiding officer of each legislative standing committee with jurisdiction over affordable housing programs, for the committees' review; and

(2) the Texas Department of Housing and Community Affairs, for the department's approval.

(b) The corporation shall comply with a request for a revised biennial budget made under Section 2306.07051.

SECTION 11. Sections 1372.0223 and 2306.5622, Government Code, are repealed.

SECTION 12. This Act takes effect September 1, 2007.