|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
|
relating to the provision of affordable housing in this state. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Subchapter I, Chapter 487, Government Code, is |
|
amended by adding Sections 487.355 and 487.356 to read as follows: |
|
Sec. 487.355. NONBORDER COLONIA FUND. (a) In this |
|
section, "nonborder colonia" means a geographic area that: |
|
(1) is located in a county all parts of which are |
|
located at least 150 miles from the international border of this |
|
state; |
|
(2) is located in a county or municipality that is |
|
eligible, as identified by office rule, to receive community |
|
development block grant money under this subchapter; |
|
(3) consists of 11 or more dwellings that are located |
|
in close proximity to each other in an area that may be described as |
|
a community or neighborhood; and |
|
(4) either: |
|
(A) has a majority population composed of |
|
individuals and families of low income, based on the federal Office |
|
of Management and Budget poverty index, and meets the |
|
qualifications of an economically distressed area under Section |
|
17.921, Water Code; or |
|
(B) has the physical and economic |
|
characteristics of a colonia, as determined by the office. |
|
(b) The nonborder colonia fund is an account in the general |
|
revenue fund. |
|
(c) In each state fiscal year, from amounts allocated to the |
|
state under the federal community development block grant |
|
nonentitlement program authorized by Title I of the Housing and |
|
Community Development Act of 1974 (42 U.S.C. Section 5301 et seq.), |
|
the office shall set aside and transfer to the account for the |
|
purposes of this section the portion of that money, not to exceed |
|
$7.5 million each year, that exceeds the amount provided to the |
|
state under that program for the state fiscal year ending August 31, |
|
2008. |
|
(d) Except as provided by Subsection (e), amounts deposited |
|
to the account may be appropriated to the office only for the |
|
benefit of counties and municipalities identified by office rule as |
|
eligible to receive community development block grant money under |
|
this subchapter for: |
|
(1) housing initiatives for nonborder colonias |
|
located in those counties and municipalities, including |
|
infrastructure associated with new construction, rehabilitation, |
|
or improvements; and |
|
(2) the improvement of the housing conditions in those |
|
colonias. |
|
(e) Amounts deposited to the account may not be appropriated |
|
to the office for financial assistance to political subdivisions |
|
for the construction, acquisition, or improvement of water supply |
|
and sewer services, as described by Section 17.922, Water Code. |
|
(f) Sections 403.095 and 404.071 do not apply to the |
|
account. |
|
Sec. 487.356. COORDINATION WITH TEXAS DEPARTMENT OF HOUSING |
|
AND COMMUNITY AFFAIRS. The office shall work with the Texas |
|
Department of Housing and Community Affairs to: |
|
(1) identify available sources of funding for housing |
|
initiatives in a county or municipality that is eligible, as |
|
identified by office rule, to receive financial assistance from the |
|
nonborder colonia fund established by Section 487.355; |
|
(2) coordinate housing initiatives that receive funds |
|
under Section 487.355(d); and |
|
(3) make available on or before August 1 of each year a |
|
plan that addresses the housing and infrastructure needs for the |
|
following state fiscal year for at least one colonia, as defined by |
|
Section 2306.083. |
|
SECTION 2. Subchapter E, Chapter 2306, Government Code, is |
|
amended by adding Sections 2306.098 and 2306.099 to read as |
|
follows: |
|
Sec. 2306.098. COORDINATION WITH OFFICE OF RURAL COMMUNITY |
|
AFFAIRS. The department shall work with the Office of Rural |
|
Community Affairs to: |
|
(1) identify available sources of funding for housing |
|
initiatives in a county or municipality that is eligible, as |
|
identified by office rule, to receive financial assistance from the |
|
nonborder colonia fund established by Section 487.355; |
|
(2) coordinate housing initiatives that receive funds |
|
under Section 487.355(d); and |
|
(3) make available on or before August 1 of each year a |
|
plan that addresses the housing and infrastructure needs for the |
|
following state fiscal year for at least one colonia, as defined by |
|
Section 2306.083. |
|
Sec. 2306.099. RURAL HOUSING FIELD OFFICES. (a) The board |
|
by rule shall: |
|
(1) establish field offices in rural areas of each |
|
uniform state service region to assist political subdivisions and |
|
nonprofit entities in developing or administering affordable |
|
housing programs in those areas; and |
|
(2) specify the duties for each field office. |
|
(b) The rules under Subsection (a) must include the |
|
following duties for each field office: |
|
(1) identifying affordable housing needs for rural |
|
areas of the uniform state service region in which the field office |
|
is located; |
|
(2) identifying state and federal programs that may |
|
address the needs identified under Subdivision (1); |
|
(3) facilitating the development of relationships |
|
that will assist in building local capacity to address the needs |
|
identified under Subdivision (1); and |
|
(4) providing information regarding state programs to |
|
assist in the development of affordable housing for rural areas of |
|
the uniform state service region in which the field office is |
|
located. |
|
SECTION 3. Section 2306.201, Government Code, is amended by |
|
amending Subsection (b) and adding Subsection (c) to read as |
|
follows: |
|
(b) The fund consists of: |
|
(1) appropriations or transfers made to the fund; |
|
(2) unencumbered fund balances; |
|
(3) public or private gifts, [or] grants, or |
|
donations; |
|
(4) investment income, including all interest, |
|
dividends, capital gains, or other income from the investment of |
|
any portion of the fund; |
|
(5) repayments received on loans made from the fund; |
|
and |
|
(6) funds from any other source. |
|
(c) The department may accept gifts, grants, or donations |
|
for the housing trust fund. All funds received for the housing |
|
trust fund under Subsection (b) shall be deposited or transferred |
|
into the Texas Treasury Safekeeping Trust Company. |
|
SECTION 4. Section 2306.202(a), Government Code, is amended |
|
to read as follows: |
|
(a) The department, through the housing finance division, |
|
shall use the housing trust fund to provide loans, grants, or other |
|
comparable forms of assistance to local units of government, public |
|
housing authorities, nonprofit organizations, and income-eligible |
|
individuals, families, and households to finance, acquire, |
|
rehabilitate, and develop decent, safe, and sanitary housing. In |
|
each biennium the first $2.6 million available through the housing |
|
trust fund for loans, grants, or other comparable forms of |
|
assistance shall be set aside and made available exclusively for |
|
local units of government, public housing authorities, and |
|
nonprofit organizations. Any additional funds may also be made |
|
available to for-profit organizations provided that [so long as] at |
|
least 45 percent of available funds, as determined on September 1 of |
|
each state fiscal year, in excess of the first $2.6 million shall be |
|
made available to nonprofit organizations for the purpose of |
|
acquiring, rehabilitating, and developing decent, safe, and |
|
sanitary housing. The remaining portion shall be distributed to |
|
[competed for by] nonprofit organizations, for-profit |
|
organizations, and other eligible entities. Notwithstanding any |
|
other section of this chapter, but subject to the limitations in |
|
Section 2306.251(c), the department may also use the fund to |
|
acquire property to endow the fund. |
|
SECTION 5. Section 2306.203, Government Code, is amended to |
|
read as follows: |
|
Sec. 2306.203. RULES REGARDING ADMINISTRATION OF HOUSING |
|
TRUST FUND. The board shall adopt rules to administer the housing |
|
trust fund, including rules providing: |
|
(1) that the division give priority to programs that |
|
maximize federal resources; |
|
(2) for a process to set priorities for use of the |
|
fund, including the distribution of fund resources in accordance |
|
with a plan that is [under a request for a proposal process] |
|
developed and approved by the board and included in the |
|
department's annual report regarding the housing trust fund as |
|
described in the General Appropriations Act; |
|
(3) that the criteria used to evaluate a proposed |
|
activity [rank proposals] will include the: |
|
(A) leveraging of [federal] resources; |
|
(B) cost-effectiveness of the [a] proposed |
|
activity [development]; and |
|
(C) extent to which individuals and families of |
|
very low income are served by the proposed activity [development]; |
|
(4) that funds may not be made available for a proposed |
|
activity [to a development] that permanently and involuntarily |
|
displaces individuals and families of low income; |
|
(5) that the board attempt to allocate funds to |
|
achieve a broad geographical distribution with: |
|
(A) special emphasis on equitably serving rural |
|
and nonmetropolitan areas; and |
|
(B) consideration of the number and percentage of |
|
income-qualified families in different geographical areas; and |
|
(6) that multifamily housing developed or |
|
rehabilitated through the fund remain affordable to |
|
income-qualified households for at least 20 years. |
|
SECTION 6. Chapter 2306, Government Code, is amended by |
|
adding Subchapter N to read as follows: |
|
SUBCHAPTER N. OFFICE OF RURAL COMMUNITY AND SMALL MUNICIPALITY |
|
HOUSING INITIATIVES |
|
Sec. 2306.301. DEFINITION. In this subchapter, "office" |
|
means the office established by Section 2306.302 to support rural |
|
community and small municipality housing initiatives. |
|
Sec. 2306.302. ESTABLISHMENT OF OFFICE. (a) The |
|
department shall establish an office to support rural community and |
|
small municipality housing initiatives. |
|
(b) The department by rule shall define for purposes of this |
|
subchapter: |
|
(1) a rural community; and |
|
(2) a small municipality. |
|
(c) Subject to available funding, the department by rule may |
|
establish not more than seven field offices as part of the office. |
|
(d) The office shall work with each regional council of |
|
government to: |
|
(1) match housing sponsors to the housing needs of |
|
rural communities and small municipalities; and |
|
(2) identify available sources of funds for those |
|
housing needs. |
|
(e) The office shall use funds available from the housing |
|
trust fund established under Section 2306.201 to administer |
|
capacity building programs for rural communities and small |
|
municipalities. |
|
(f) The office shall coordinate a meeting at least two times |
|
each year between department program directors and representatives |
|
of rural communities and small municipalities to discuss best |
|
practices for rural community and small municipality housing |
|
initiatives. |
|
(g) The office shall establish an online clearinghouse of |
|
information relating to best practices for rural community and |
|
small municipality housing initiatives. |
|
(h) The director may assign additional duties to the office. |
|
Sec. 2306.303. REGIONAL HOUSING DEVELOPMENT ORGANIZATIONS. |
|
(a) The office shall establish regional nonprofit housing |
|
development organizations that serve rural communities and small |
|
municipalities in accordance with the purposes of this subchapter. |
|
(b) To implement this section, the department may use any |
|
money available to the department for the purpose, including gifts, |
|
grants, and donations and funds allocated to the state under the |
|
federal HOME Investment Partnerships program established under |
|
Title II of the Cranston-Gonzalez National Affordable Housing Act |
|
(42 U.S.C. Section 12701 et seq.). |
|
Sec. 2306.304. TRAINING. (a) The office annually shall |
|
provide to elected officials, community organizations, nonprofit |
|
organizations, and private developers a training course that |
|
addresses housing programs and techniques that increase housing |
|
opportunities in rural communities and small municipalities. The |
|
office shall provide the course at an appropriate location selected |
|
by the office and shall make the course available online in real |
|
time. |
|
(b) The department periodically shall also provide to |
|
elected officials a training course regarding housing programs and |
|
sources of funding for these programs. |
|
Sec. 2306.305. HOUSING DEVELOPMENT PLANNING ASSISTANCE. On |
|
the request of the governing body of a municipality or county, the |
|
office shall assign an employee or independent contractor to assist |
|
the municipality or county in: |
|
(1) developing comprehensive housing plans for rural |
|
communities and small municipalities in that county; |
|
(2) supporting housing development initiatives in |
|
those communities and municipalities; and |
|
(3) identifying financial resources available for |
|
those plans and initiatives. |
|
Sec. 2306.306. RURAL COMMUNITY AND SMALL MUNICIPALITY |
|
HOUSING DEVELOPMENT PILOT PROJECTS. Notwithstanding other program |
|
rules and procedures of the department, the department may |
|
establish pilot projects to test and develop new approaches to |
|
providing housing in rural communities and small municipalities |
|
for: |
|
(1) individuals and families of low income; and |
|
(2) individuals and families of very low income. |
|
Sec. 2306.307. AGRICULTURAL WORKER HOUSING INITIATIVE. |
|
(a) The office shall fund housing initiatives that serve |
|
agricultural workers and their families, including: |
|
(1) new housing initiatives; |
|
(2) housing rehabilitation initiatives; or |
|
(3) tenant-based rental assistance. |
|
(b) The office may designate as a pilot project a housing |
|
initiative implemented under this section for agricultural workers |
|
and their families. |
|
(c) The office shall coordinate with appropriate divisions |
|
of the department to: |
|
(1) document agricultural worker housing needs; |
|
(2) determine whether a housing need documented by the |
|
department is critical; and |
|
(3) develop initiatives to address those housing |
|
needs. |
|
(d) The department may use any available funds to implement |
|
this section, including gifts, grants, and donations and funds |
|
allocated to the department under the federal HOME Investment |
|
Partnerships program established under Title II of the |
|
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. |
|
Section 12701 et seq.). |
|
(e) In this section, "agricultural worker": |
|
(1) means a person who receives a substantial portion |
|
of income from employment that involves: |
|
(A) the primary production of agricultural or |
|
aquacultural commodities; or |
|
(B) the handling of agricultural or aquacultural |
|
commodities in an unprocessed state, including handling those |
|
commodities in a feedlot or a meat processing plant; and |
|
(2) includes a person who is retired or disabled but |
|
was employed as described by Subdivision (1) at the time of that |
|
person's retirement or disablement. |
|
Sec. 2306.308. COMMUNITY DEVELOPMENT CORPORATION FOR |
|
AGRICULTURAL WORKER HOUSING FACILITIES. (a) In this section, |
|
"community development corporation" means a private, nonprofit |
|
corporation organized to foster economic growth and |
|
revitalization, create small businesses, or develop affordable |
|
housing in a defined neighborhood or for a targeted population. |
|
(b) Using existing resources, the department shall create a |
|
statewide community development corporation charged with |
|
developing, acquiring, and rehabilitating housing facilities in |
|
appropriate areas in the state for agricultural workers and their |
|
families. |
|
(c) The department shall work with the community |
|
development corporation to implement the findings and |
|
recommendations of the department in the report submitted under |
|
Section 2(f), Chapter 60 (H.B. 1099), Acts of the 79th Legislature, |
|
Regular Session, 2005. |
|
(d) The department may use any available funds to implement |
|
this section, including gifts, grants, and donations and funds |
|
allocated to the department under the federal HOME Investment |
|
Partnerships program established under Title II of the |
|
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. |
|
Section 12701 et seq.). |
|
(e) In this section, "agricultural worker": |
|
(1) means a person who receives a substantial portion |
|
of income from employment that involves: |
|
(A) the primary production of agricultural or |
|
aquacultural commodities; or |
|
(B) the handling of agricultural or aquacultural |
|
commodities in an unprocessed state, including handling those |
|
commodities in a feedlot or a meat processing plant; and |
|
(2) includes a person who is retired or disabled but |
|
was employed as described by Subdivision (1) at the time of that |
|
person's retirement or disablement. |
|
SECTION 7. Chapter 2306, Government Code, is amended by |
|
adding Subchapter EE to read as follows: |
|
SUBCHAPTER EE. RURAL HOUSING LAND ASSEMBLAGE PROGRAM |
|
Sec. 2306.701. SHORT TITLE. This subchapter may be cited as |
|
the Rural Housing Land Assemblage Program Act. |
|
Sec. 2306.702. DEFINITIONS. In this subchapter: |
|
(1) "Affordable" means that the monthly mortgage |
|
payment or contract rent does not exceed 30 percent of the |
|
applicable median income for that unit size, in accordance with the |
|
income and rent limit rules adopted by the department. |
|
(2) "Low-income household" means: |
|
(A) for rental housing, a household with a gross |
|
income not to exceed 80 percent of the greater of the area median |
|
income or national nonmetropolitan median income, adjusted for |
|
household size, as determined annually by the United States |
|
Department of Housing and Urban Development; or |
|
(B) for purchased housing, a household with a |
|
gross income not to exceed 80 percent of the greater of the area |
|
median income or the state median income, adjusted for household |
|
size, as determined annually by the United States Department of |
|
Housing and Urban Development or by the department based on data |
|
from the United States Department of Housing and Urban Development, |
|
as appropriate. |
|
(3) "Office" means the Office of Rural Community |
|
Affairs. |
|
(4) "Rural county" means, notwithstanding Section |
|
2306.004, a county classified as a rural county by the United States |
|
Department of Agriculture for purposes of the rural housing loan |
|
programs authorized by the Housing Act of 1949 (42 U.S.C. Section |
|
1471 et seq.). |
|
(5) "Rural housing land assemblage entity" means an |
|
entity established or designated by the governing bodies of one or |
|
more rural municipalities or rural counties for the purpose of |
|
participating in the rural housing land assemblage program. |
|
(6) "Rural housing land assemblage program" means a |
|
program established by the department to acquire, hold, and |
|
transfer real property under this subchapter for the purpose of |
|
providing affordable housing for low-income households. |
|
(7) "Rural municipality" means a municipality |
|
classified as a rural municipality by the United States Department |
|
of Agriculture for purposes of the rural housing loan programs |
|
authorized by the Housing Act of 1949 (42 U.S.C. Section 1471 et |
|
seq.). |
|
Sec. 2306.703. RURAL HOUSING LAND ASSEMBLAGE PROGRAM. |
|
(a) The department, in consultation with the office, shall |
|
establish the rural housing land assemblage program. |
|
(b) The governing bodies of one or more rural municipalities |
|
or rural counties may agree to establish a rural housing land |
|
assemblage entity and for that purpose may apply to participate in |
|
the rural housing land assemblage program. |
|
(c) The department and the office shall: |
|
(1) jointly select not more than five applications for |
|
participation in the program; and |
|
(2) enter into a memorandum of understanding to |
|
establish a selection procedure and address performance of other |
|
duties imposed on the department and the office under this |
|
subchapter. |
|
(d) If selected to participate in the program, a |
|
municipality or county shall: |
|
(1) enter into interlocal agreements with any other |
|
municipalities or counties selected to participate in the program |
|
with that municipality or county, subject to the provisions of this |
|
subchapter; and |
|
(2) establish or designate a rural housing land |
|
assemblage entity to exercise powers as described by this |
|
subchapter. |
|
Sec. 2306.704. RURAL HOUSING LAND ASSEMBLAGE ENTITY. For |
|
the purpose of providing affordable housing for low-income |
|
households, a rural housing land assemblage entity may acquire, |
|
hold, and transfer real property that is not improved with a |
|
habitable building or buildings and is otherwise unoccupied. |
|
Sec. 2306.705. PRIVATE SALE TO LAND ASSEMBLAGE ENTITY. |
|
(a) Notwithstanding any other law and except as provided by |
|
Subsection (f), real property that is ordered sold pursuant to |
|
foreclosure of a tax lien may be sold in a private sale to a rural |
|
housing land assemblage entity by the officer charged with the sale |
|
of the property, without first offering the property for sale as |
|
otherwise provided by Section 34.01, Tax Code, if: |
|
(1) the property is used for the purpose of providing |
|
affordable housing as described by Section 2306.704; |
|
(2) the market value of the property as appraised by |
|
the local appraisal district and as specified in the judgment of |
|
foreclosure is less than the total amount due under the judgment, |
|
including all taxes, penalties, and interest, plus the value of |
|
nontax liens held by a taxing unit and awarded by the judgment, |
|
court costs, and the cost of the sale; |
|
(3) the property is not improved with a habitable |
|
building or buildings and is otherwise unoccupied; |
|
(4) there are delinquent taxes on the property for a |
|
total of at least five years; and |
|
(5) each municipality or county that established or |
|
designated the rural housing land assemblage entity has executed |
|
with the other taxing units that are parties to the tax suit an |
|
interlocal agreement that enables those units to retain the right |
|
to withhold consent to the sale of specific properties to the rural |
|
housing land assemblage entity. |
|
(b) A sale of property for use in connection with the rural |
|
housing land assemblage program is a sale for a public purpose. |
|
(c) If the person being sued in a suit for foreclosure of a |
|
tax lien does not contest the market value of the property in the |
|
suit, the person waives the right to challenge the amount of the |
|
market value determined by the court for purposes of the sale of the |
|
property under Section 33.50, Tax Code. |
|
(d) For any sale of property under this section, each person |
|
who was a defendant to the judgment, or that person's attorney, |
|
shall be given, not later than the 60th day before the date of sale, |
|
written notice of the proposed method of sale of the property by the |
|
officer charged with the sale of the property. Notice shall be |
|
given in the manner prescribed by Rule 21a, Texas Rules of Civil |
|
Procedure. |
|
(e) After receipt of the notice required by Subsection (d) |
|
and before the date of the proposed sale, the owner of the property |
|
subject to sale may file with the officer charged with the sale a |
|
written request that the property not be sold in the manner provided |
|
by this section. |
|
(f) If the officer charged with the sale receives a written |
|
request as provided by Subsection (e), the officer shall sell the |
|
property as otherwise provided in Section 34.01, Tax Code. |
|
(g) The owner of the property subject to sale may not |
|
receive any proceeds of a sale under this section. However, the |
|
owner does not have any personal liability for a deficiency of the |
|
judgment as a result of a sale under this section. |
|
(h) Notwithstanding any other law, if consent is given by |
|
the taxing units that are a party to the judgment, property may be |
|
sold to the rural housing land assemblage entity for less than the |
|
market value of the property as specified in the judgment or less |
|
than the total of all taxes, penalties, and interest, plus the value |
|
of nontax liens held by a taxing unit and awarded by the judgment, |
|
court costs, and the cost of the sale. |
|
(i) The deed of conveyance of the property sold to a rural |
|
housing land assemblage entity under this section conveys to the |
|
entity the right, title, and interest acquired or held by each |
|
taxing unit that was a party to the judgment, subject to the right |
|
of redemption. |
|
Sec. 2306.706. EXEMPTION FROM AD VALOREM TAXATION. |
|
Property sold to and held by a rural housing land assemblage entity |
|
for subsequent resale is entitled to an exemption from ad valorem |
|
taxation for a period not to exceed three years from the date of |
|
acquisition. The exemption period may be renewed for a property for |
|
an additional period, not to exceed three years, on approval of the |
|
governing body of each participating municipality or county and any |
|
other taxing unit in which the property is located. Property is |
|
entitled to an exemption under this section only during the period |
|
the property is held by the rural housing land assemblage entity. |
|
Sec. 2306.707. REGIONAL WORKSHOPS. (a) The department and |
|
the office shall conduct regional workshops for rural housing land |
|
assemblage entities. A workshop must include information regarding |
|
the operation of the rural housing land assemblage program, such as |
|
reporting and audit requirements for rural housing land assemblage |
|
entities, affordability terms, additional income targeting, and |
|
the imposition of deed and resale restrictions on real property |
|
sold under the program to achieve the purpose of providing |
|
affordable housing for low-income households. |
|
(b) The department and the office shall contract for |
|
technical assistance in conducting the workshops, if necessary. |
|
Sec. 2306.708. FUNDING; REPORT. (a) The department shall |
|
allocate $1 million to the rural housing land assemblage program |
|
from funds allocated to the department under the federal HOME |
|
Investment Partnerships program established under Title II of the |
|
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. |
|
Section 12701 et seq.). |
|
(b) The office shall allocate $1 million to the rural |
|
housing land assemblage program from funds allocated to the office |
|
under the federal community development block grant nonentitlement |
|
program authorized by Title I of the Housing and Community |
|
Development Act of 1974 (42 U.S.C. Section 5301 et seq.). |
|
(c) Not later than December 1, 2012, the department and the |
|
office jointly shall submit a report to the legislature on the |
|
establishment and implementation of the rural housing land |
|
assemblage program. |
|
(d) This section expires September 1, 2013. |
|
Sec. 2306.709. OPEN RECORDS AND MEETINGS. A rural housing |
|
land assemblage entity is subject to Chapters 551 and 552. |
|
Sec. 2306.710. RECORDS; AUDIT. (a) A rural housing land |
|
assemblage entity shall keep accurate minutes of its meetings and |
|
shall keep accurate records and books of account that conform with |
|
generally accepted principles of accounting and that clearly |
|
reflect the income and expenses of the rural housing land |
|
assemblage entity and all transactions in relation to its property. |
|
(b) A rural housing land assemblage entity shall file with |
|
the department and each participating municipality or county, not |
|
later than the 120th day after the close of the entity's fiscal |
|
year, annual audited financial statements prepared by a certified |
|
public accountant. The financial transactions of the rural housing |
|
land assemblage entity are subject to audit by a participating |
|
municipality or county and by the department. |
|
SECTION 8. Section 2306.753(b), Government Code, is amended |
|
to read as follows: |
|
(b) To be eligible for a loan under this subchapter, an |
|
owner-builder: |
|
(1) may not have an annual income that exceeds 60 |
|
percent, as determined by the department, of the greater of the |
|
state or local median family income, when combined with the income |
|
of any person who resides with the owner-builder; |
|
(2) must have resided in this state for the preceding |
|
six months; |
|
(3) must have successfully completed an owner-builder |
|
education class under Section 2306.756; and |
|
(4) must agree to: |
|
(A) provide through personal labor at least 65 |
|
[60] percent of the labor necessary to build or rehabilitate the |
|
proposed housing by working through a state-certified |
|
owner-builder housing program; [or] |
|
(B) provide an amount of personal labor |
|
equivalent to the amount required under Paragraph (A) in connection |
|
with building or rehabilitating housing for others through a |
|
state-certified [nonprofit] owner-builder housing program; |
|
(C) provide through the noncontract labor of |
|
friends, family, or volunteers and through personal labor at least |
|
65 percent of the labor necessary to build or rehabilitate the |
|
proposed housing by working through a state-certified |
|
owner-builder housing program; or |
|
(D) if due to documented disability or other |
|
limiting circumstances as defined by department rule the |
|
owner-builder cannot provide the amount of personal labor otherwise |
|
required by this subdivision, provide through the noncontract labor |
|
of friends, family, or volunteers at least 65 percent of the labor |
|
necessary to build or rehabilitate the proposed housing by working |
|
through a state-certified owner-builder housing program. |
|
SECTION 9. Sections 2306.754(a), (b), and (c), Government |
|
Code, are amended to read as follows: |
|
(a) The department may establish the minimum amount of a |
|
loan under this subchapter, but a loan made by the department may |
|
not exceed $45,000 [$30,000]. |
|
(b) If it is not possible for an owner-builder to purchase |
|
necessary real property and build or rehabilitate adequate housing |
|
for $45,000 [$30,000], the owner-builder must obtain the amount |
|
necessary that exceeds $45,000 [$30,000] from other sources of |
|
funds [one or more local governmental entities, nonprofit
|
|
organizations, or private lenders]. The total amount of amortized, |
|
repayable loans made by the department and other entities to an |
|
owner-builder under this subchapter may not exceed $90,000 |
|
[$60,000]. |
|
(c) A loan made by the department under this subchapter: |
|
(1) may not exceed a term of 30 years; |
|
(2) may bear interest at a fixed rate of not more than |
|
three percent or bear interest in the following manner: |
|
(A) no interest for the first two years of the |
|
loan; |
|
(B) beginning with the second anniversary of the |
|
date the loan was made, interest at the rate of one percent a year; |
|
(C) beginning on the third anniversary of the |
|
date the loan was made and ending on the sixth anniversary of the |
|
date the loan was made, interest at a rate that is one percent |
|
greater than the rate borne in the preceding year; and |
|
(D) beginning on the sixth anniversary of the |
|
date the loan was made and continuing through the remainder of the |
|
loan term, interest at the rate of five percent; and |
|
(3) shall [may] be secured by: |
|
(A) a first lien by the department on the real |
|
property if the loan is the largest amortized, repayable loan |
|
secured by the real property; or |
|
(B) a co-first lien or subordinate lien as |
|
determined by department rule, if the loan is not the largest loan |
|
as described by Paragraph (A)[, including a lien that is
|
|
subordinate to a lien that secures a loan made under Subsection (b)
|
|
and that is greater than the department's lien]. |
|
SECTION 10. Section 2306.755(a), Government Code, is |
|
amended to read as follows: |
|
(a) The department may certify nonprofit owner-builder |
|
housing programs operated by a tax-exempt organization listed under |
|
Section 501(c)(3), Internal Revenue Code of 1986, to: |
|
(1) qualify potential owner-builders for loans under |
|
this subchapter; |
|
(2) provide owner-builder education classes under |
|
Section 2306.756; |
|
(3) assist owner-builders in building or |
|
rehabilitating housing; and |
|
(4) originate or service loans made under this |
|
subchapter. |
|
SECTION 11. Section 2306.756(a), Government Code, is |
|
amended to read as follows: |
|
(a) A state-certified nonprofit owner-builder housing |
|
program shall offer owner-builder education classes to potential |
|
owner-builders. A class under this section must provide |
|
information on: |
|
(1) the financial responsibilities of an |
|
owner-builder under this subchapter, including the consequences of |
|
an owner-builder's failure to meet those responsibilities; |
|
(2) the building or rehabilitation of housing by |
|
owner-builders; |
|
(3) resources for low-cost building materials |
|
available to owner-builders; and |
|
(4) resources for building or rehabilitation |
|
assistance available to owner-builders. |
|
SECTION 12. Section 2306.757, Government Code, is amended |
|
to read as follows: |
|
Sec. 2306.757. LOAN PRIORITY FOR WAIVER OF LOCAL GOVERNMENT |
|
FEES. In making loans under this subchapter, the department shall |
|
give priority to loans to owner-builders who will reside in |
|
counties or municipalities that agree in writing to waive capital |
|
recovery fees, building permit fees, inspection fees, or other fees |
|
related to the building or rehabilitation of the housing to be built |
|
or improved with the loan proceeds. |
|
SECTION 13. Section 2306.758(c), Government Code, is |
|
amended to read as follows: |
|
(c) In a state fiscal year, the department may use not more |
|
than 10 percent of the revenue available for purposes of this |
|
subchapter to enhance the ability of tax-exempt organizations |
|
described by Section 2306.755(a) to implement the purposes of this |
|
chapter and to enhance the number of such organizations that are |
|
able to implement those purposes. The department shall use that |
|
available revenue to provide financial assistance, technical |
|
training, and management support for the purposes of this |
|
subsection. |
|
SECTION 14. Section 2306.7581(a-1), Government Code, is |
|
amended to read as follows: |
|
(a-1) Each state fiscal year the department shall transfer |
|
at least $3 million to the owner-builder revolving fund from money |
|
received under the federal HOME Investment Partnerships program |
|
established under Title II of the Cranston-Gonzalez National |
|
Affordable Housing Act (42 U.S.C. Section 12701 et seq.), from |
|
money in the housing trust fund, or from money appropriated by the |
|
legislature to the department. This subsection expires August 31, |
|
2020 [2010]. |
|
SECTION 15. Chapter 2306, Government Code, is amended by |
|
adding Subchapter JJ to read as follows: |
|
SUBCHAPTER JJ. TEXAS SECURE LOAN PILOT PROGRAM |
|
Sec. 2306.871. DEFINITION. In this subchapter, "program" |
|
means the Texas secure loan pilot program. |
|
Sec. 2306.872. TEXAS SECURE LOAN PILOT PROGRAM. (a) The |
|
department shall establish the Texas secure loan pilot program to |
|
provide to individuals and families of low income mortgage loans |
|
that allow modifications to the terms of the loans, such as |
|
adjustments to the period of the loans and to interest rates, to |
|
assist program participants in avoiding foreclosure of those loans. |
|
(b) The program may include the provision of down payment |
|
and closing cost assistance. |
|
(c) The department may work with mortgage brokers, lenders, |
|
and nonprofit organizations to design mortgage loan products |
|
available under the program. |
|
Sec. 2306.873. ADMINISTRATION OF PROGRAM; RULES. (a) The |
|
department shall administer the program. |
|
(b) The board shall adopt rules governing: |
|
(1) the administration of the program, including the |
|
origination of loans under the program; |
|
(2) the criteria for approving another entity to |
|
service loans originated under the program; |
|
(3) 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; |
|
(4) the verification of occupancy of the home by the |
|
homebuyer as the homebuyer's principal residence; |
|
(5) the terms of any memorandum of understanding or |
|
contract with another entity for processing, servicing, or |
|
administering the loans; |
|
(6) the types of loan modifications that would assist |
|
a homebuyer in avoiding foreclosure of a loan under this |
|
subchapter; and |
|
(7) criteria for authorizing loan modifications for |
|
homebuyers whose income is adversely affected by circumstances such |
|
as unemployment, a reduction of wages or hours of employment, |
|
illness, or the death of a spouse or other person contributing to |
|
the income of a homebuyer. |
|
Sec. 2306.874. ELIGIBILITY. (a) To be eligible for a |
|
mortgage loan issued by the department under this subchapter, a |
|
homebuyer must: |
|
(1) earn an income, adjusted for family size, of not |
|
more than: |
|
(A) 80 percent of the area median income if the |
|
homebuyer lives in a rural area; or |
|
(B) 60 percent of the area median income if the |
|
homebuyer lives in an urban area; |
|
(2) intend to occupy, as the homebuyer's principal |
|
residence, the home for which the mortgage loan is issued; and |
|
(3) meet any additional eligibility requirements or |
|
limitations prescribed by the department. |
|
(b) The department may enter into memoranda of |
|
understanding with other agencies of the state or may contract with |
|
private entities to process, service, or administer all or a |
|
portion of the loans issued under this subchapter. |
|
SECTION 16. The change in law made by this Act in amending |
|
Sections 2306.202, 2306.203, and 2306.758, Government Code, |
|
applies beginning with the state fiscal year that begins September |
|
1, 2009. |
|
SECTION 17. The Texas Department of Housing and Community |
|
Affairs shall create the community development corporations |
|
required by Section 2306.308, Government Code, as added by this |
|
Act, as soon as practicable after the effective date of this Act, |
|
but not later than October 1, 2009. |
|
SECTION 18. Not later than October 1, 2009, the Texas |
|
Department of Housing and Community Affairs shall adopt the rules |
|
required by Subchapter N, Chapter 2306, Government Code, as added |
|
by this Act. |
|
SECTION 19. Not later than January 1, 2010, the Texas |
|
Department of Housing and Community Affairs and the Office of Rural |
|
Community Affairs shall allocate the funds required by Section |
|
2306.708, Government Code, as added by this Act, to the rural |
|
housing land assemblage program established under Subchapter EE, |
|
Chapter 2306, Government Code, as added by this Act. |
|
SECTION 20. The change in law made by this Act in amending |
|
Sections 2306.753 and 2306.754, Government Code, applies only to |
|
owner-builder loans granted by the department on or after the |
|
effective date of this Act. An owner-builder loan granted before |
|
the effective date of this Act is governed by the law in effect at |
|
the time the loan was granted, and the former law is continued in |
|
effect for that purpose. |
|
SECTION 21. The board of directors of the Texas Department |
|
of Housing and Community Affairs shall adopt the rules required by |
|
Subchapter JJ, Chapter 2306, Government Code, as added by this Act, |
|
not later than October 1, 2009, and the Texas Department of Housing |
|
and Community Affairs shall begin issuing loans under the Texas |
|
secure loan pilot program not later than January 1, 2010. |
|
SECTION 22. This Act does not make an appropriation. A |
|
provision in this Act that creates a new governmental program, |
|
creates a new entitlement, or imposes a new duty on a governmental |
|
entity is not mandatory during a fiscal period for which the |
|
legislature has not made a specific appropriation to implement the |
|
provision. |
|
SECTION 23. This Act takes effect September 1, 2009. |
|
|
|
* * * * * |