80R5657 KCR-D

By: West, Royce S.B. No. 729

A BILL TO BE ENTITLED

AN ACT

relating to the issuance and use of private activity bonds by the Texas State Affordable Housing Corporation and housing finance corporations.

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

SECTION 1. Section 1372.0221, Government Code, is amended to read as follows:

Sec. 1372.0221. DEDICATION OF PORTION OF STATE CEILING FOR PROFESSIONAL EDUCATORS HOME LOAN PROGRAM. Until August 1, out of that portion of the state ceiling that is available exclusively for reservations by the Texas State Affordable Housing Corporation [issuers of qualified mortgage bonds] under Section 1372.0223, 54.5 percent [1372.022, $25 million] shall be allotted each year and made available [exclusively] to the corporation [Texas State Affordable Housing Corporation] for the purpose of issuing qualified mortgage bonds in connection with the professional educators home loan program established under Section 2306.562.

SECTION 2. Section 1372.0222, Government Code, is amended to read as follows:

Sec. 1372.0222. DEDICATION OF PORTION OF STATE CEILING FOR FIRE FIGHTER AND LAW ENFORCEMENT OR SECURITY OFFICER HOME LOAN PROGRAM. Until August 1, out of that portion of the state ceiling that is available exclusively for reservations by the Texas State Affordable Housing Corporation [issuers of qualified mortgage bonds] under Section 1372.0223, 45.5 percent [1372.022, $25 million] shall be allotted each year and made available [exclusively] to the corporation [Texas State Affordable Housing Corporation] for the purpose of issuing qualified mortgage bonds in connection with the fire fighter, law enforcement officer, and security officer home loan program established under Section 2306.5621.

SECTION 3. Section 1372.037(a), Government Code, is amended to read as follows:

(a) Except as provided by Subsection (b), before September 1 the board may not grant for any single project a reservation for that year that is greater than:

(1) [$25 million, if the issuer is an issuer of qualified mortgage bonds, other than the Texas Department of Housing and Community Affairs;

[(2)] $50 million, if the issuer is an issuer of a state-voted issue, other than the Texas Higher Education Coordinating Board, or $75 million, if the issuer is the Texas Higher Education Coordinating Board;

(2) [(3)] the amount to which the Internal Revenue Code limits issuers of qualified small issue bonds and enterprise zone facility bonds, if the issuer is an issuer of those bonds;

(3) [(4)] the lesser of $15 million or 15 percent of the amount set aside for reservation by issuers of qualified residential rental project bonds, if the issuer is an issuer of those bonds;

(4) [(5)] the amount as prescribed in Sections 1372.033(d), (e), and (f), if the issuer is an issuer authorized by Section 53.47, Education Code, to issue qualified student loan bonds; or

(5) [(6)] $50 million, if the issuer is any other issuer of bonds that require an allocation.

SECTION 4. Section 1372.0223, Government Code, is amended to read as follows:

Sec. 1372.0223. DEDICATION OF PORTION OF STATE CEILING TO CERTAIN ISSUERS OF QUALIFIED MORTGAGE BONDS [FOR PROFESSIONAL NURSING PROGRAM FACULTY MEMBER HOME LOAN PROGRAM]. Until August 15 [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:

(1) 10 percent is[, $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; and

(2) 56.66 percent is available exclusively to housing finance corporations for the purpose of issuing qualified mortgage bonds [in connection with the professional nursing program faculty member home loan program established under Section 2306.5622].

SECTION 5. 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 6. 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 7. 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 8. Sections 1372.026(b) and 2306.5622, Government Code, are repealed.

SECTION 9. This Act takes effect September 1, 2007.