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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of a down payment assistance program |
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for certain professional educators by the Texas State Affordable |
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Housing Corporation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter Y, Chapter 2306, Government Code, is |
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amended by adding Section 2306.5622 to read as follows: |
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Sec. 2306.5622. PROFESSIONAL EDUCATORS DOWN PAYMENT |
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ASSISTANCE PROGRAM IN CERTAIN COUNTIES. (a) In this section: |
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(1) "Low-wealth school district" means a school |
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district that: |
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(A) has a low wealth per student, as determined |
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jointly by the commissioner of education and the corporation; and |
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(B) is located in a county with a population of |
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more than one million and in which more than 80 percent of the |
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population resides in a single municipality. |
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(2) "Professional educator" means a classroom |
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teacher, full-time paid teacher's aide, full-time librarian, |
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full-time counselor certified under Subchapter B, Chapter 21, |
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Education Code, or full-time school nurse. |
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(3) "Wealth per student" means the taxable value of |
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property in a school district, as determined under Subchapter M, |
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Chapter 403, divided by the number of students enrolled in the |
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district. |
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(b) The corporation, in consultation with the commissioner |
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of education and low-wealth school districts, shall establish a |
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program providing to eligible professional educators down payment |
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assistance in the form of deferred forgivable second-lien loans. |
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Loans provided under this section must: |
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(1) with a total matching amount not to exceed $4,000 |
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as described by this subdivision, match each dollar of an eligible |
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professional educator's down payment contribution toward the |
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purchase of a home, with: |
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(A) a mandatory contribution, as funds are |
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available and not to exceed $2,000, from the corporation; and |
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(B) an additional optional contribution, not to |
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exceed $2,000, from the applicable low-wealth school district; and |
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(2) be forgiven at the rate of one-third of the |
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original balance of the loan for each year that the professional |
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educator remains employed by the district after the issuance of the |
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loan. |
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(c) To be eligible for down payment assistance under this |
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section, a professional educator must: |
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(1) be employed by a low-wealth school district for |
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the six-month period preceding the application date; |
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(2) have an income that does not exceed the greater of: |
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(A) 115 percent of area median family income, |
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adjusted for family size; or |
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(B) the maximum amount permitted by Section |
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143(f), Internal Revenue Code of 1986; |
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(3) meet the creditworthiness and purchase price |
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standards established by corporation rule; |
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(4) complete a homebuyer education course; |
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(5) occupy the purchased home as the educator's |
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primary residence; and |
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(6) purchase a home in the low-wealth school district |
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in which the professional educator is employed. |
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(d) A professional educator who receives down payment |
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assistance through a second-lien loan under this section shall |
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repay the outstanding balance of the loan if the person: |
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(1) ceases to be a professional educator employed by |
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the low-wealth school district in which the home is located; or |
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(2) ceases to occupy the home as the educator's primary |
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residence. |
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(e) The corporation may contract with the State Board for |
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Educator Certification, the Texas Education Agency, or other |
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agencies of the state or with private entities to: |
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(1) determine whether applicants qualify as |
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professional educators under this section; or |
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(2) otherwise administer all or part of this section. |
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(f) The board of directors of the corporation may set and |
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collect from each applicant any fees the board considers reasonable |
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and necessary to cover the expenses of administering the program. |
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(g) The board of directors of the corporation shall adopt |
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program guidelines governing: |
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(1) the administration of the program; |
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(2) the issuance of down payment assistance under the |
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program; |
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(3) creditworthiness and purchase price standards; |
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and |
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(4) the verification of occupancy of the home as the |
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professional educator's principal residence. |
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(h) The corporation shall ensure that down payment |
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assistance under this section is structured in a way that complies |
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with any requirements associated with the source of the funds used |
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for the assistance. |
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(i) The corporation may solicit and accept funding for the |
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program from the following sources: |
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(1) low-wealth school districts; |
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(2) gifts and grants for the purposes of this section; |
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(3) any state or federal programs that provide money |
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that may be used for the purposes of this section; and |
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(4) amounts received by the corporation in any |
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repayments of loans made under this section. |
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SECTION 2. The Texas State Affordable Housing Corporation |
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shall adopt the program guidelines required by Section |
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2306.5622(g), Government Code, as added by this Act, not later than |
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December 1, 2009. |
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SECTION 3. This Act takes effect September 1, 2009. |
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