80R7539 KCR-D

By: Menendez H.B. No. 3878

A BILL TO BE ENTITLED

AN ACT

relating to the transfer of the powers and duties of the Texas State Affordable Housing Corporation to the Texas Department of Housing and Community Affairs, including the transfer of certain housing programs to that department.

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

SECTION 1. Subchapter C, Chapter 2306, Government Code, is amended by adding Section 2306.058 to read as follows:

Sec. 2306.058. TRANSITION PLAN FOR CERTAIN POWERS, DUTIES, AND PROGRAMS; RULES. (a) The director by rule shall adopt a transition plan for the department's assumption of the former powers and duties of the Texas State Affordable Housing Corporation under Section 2306.551. The transition plan must include a timetable with specific steps and deadlines needed to fully complete the transfer. The transition plan must ensure that the transfer is fully implemented not later than September 1, 2009.

(b) The director may adopt rules necessary to improve the efficiency or effectiveness of any program that is transferred to the department as a result of the department's assumption of the former powers and duties of the Texas State Affordable Housing Corporation under Section 2306.551, including rules that combine the operation of programs already administered by the department and a program or programs that are transferred to the department from the Texas State Affordable Housing Corporation.

SECTION 2. Subchapter Y, Chapter 2306, Government Code, is amended by amending Section 2306.551 and adding Section 2306.5511 to read as follows:

Sec. 2306.551. TRANSFER OF CORPORATION POWERS AND DUTIES AND ASSETS. (a) The powers and duties of the corporation under this chapter or other law are transferred to the Texas Department of Housing and Community Affairs.

(b) The corporation shall transfer to the Texas Department of Housing and Community Affairs:

(1) all assets owned or distributed by the corporation, including any real or personal property owned by the corporation and any bond revenue distributed by the corporation;

(2) all records related to the operation of any home loan programs under this chapter; and

(3) any applications pending with the corporation on the date the corporation is dissolved by the board of the corporation.

(c) The board of the corporation shall:

(1) take all necessary actions to dissolve the corporation; and

(2) at the request of the director, assist the director in formulating the transition plan under Section 2306.058.

Sec. 2306.5511. DEFINITION; CONSTRUCTION OF OTHER LAW. (a) In this subchapter, "corporation" means the Texas State Affordable Housing Corporation.

(b) A reference in law to the corporation is a reference to the Texas Department of Housing and Community Affairs.

SECTION 3. 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 4. 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 5. 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 6. Sections 1372.0223, 2306.255(g), 2306.552, and 2306.5622, Government Code, are repealed.

SECTION 7. This Act takes effect September 1, 2007.