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A BILL TO BE ENTITLED
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AN ACT
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relating to the operation and administration of the owner-builder |
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loan program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2306.753, Government Code, is amended by |
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amending Subsections (a) and (b) and adding Subsection (e) to read |
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as follows: |
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(a) Subject to this section, the department shall establish |
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eligibility requirements for an owner-builder to receive a loan |
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under this subchapter. The eligibility requirements must establish |
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a priority for loans made under this subchapter to owner-builders |
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with an annual income that does not exceed 30 percent, as determined |
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by the department, of the greater of the state or local median |
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family income, when combined with the income of any person who |
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resides with the owner-builder [, as determined under Subsection
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(b)(1), of less than $17,500]. |
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(b) To be eligible for a loan under this subchapter, an |
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owner-builder: |
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(1) may not have an annual income that exceeds 60 |
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percent, as determined by the department, of the greater of the |
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state or local median family income, when combined with the income |
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of any person who resides with the owner-builder; |
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(2) must have resided in this state for the preceding |
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six months; |
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(3) must have successfully completed an owner-builder |
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education class under Section 2306.756; and |
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(4) must agree to provide, personally or through the |
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noncontract labor of family members related within the third degree |
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of consanguinity or second degree of affinity, as determined under |
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Subchapter B, Chapter 573: |
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(A) [provide] at least 60 percent of the labor |
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necessary to build the proposed housing by working through a |
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state-certified owner-builder housing program; or |
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(B) [provide] an amount of labor equivalent to |
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the amount required under Paragraph (A) in connection with building |
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housing for others through a state-certified nonprofit |
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owner-builder housing program. |
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(e) If after the first 210 days of availability in the |
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program year the funds set aside under Subsection (d) have not been |
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reserved for that purpose, the funds may be made available to other |
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eligible applicants under this subchapter. |
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SECTION 2. Section 2306.754, Government Code, is amended by |
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amending Subsections (a), (b), and (c) and adding Subsection (c-1) |
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to read as follows: |
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(a) The department may establish the minimum amount of a |
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loan under this subchapter, but a loan may not exceed $45,000 |
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[$30,000]. |
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(b) If it is not possible for an owner-builder to purchase |
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necessary real property and build adequate housing for $45,000 |
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[$30,000], the owner-builder must obtain the amount necessary that |
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exceeds $45,000 [$30,000] from one or more local governmental |
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entities, nonprofit organizations, or private lenders. The |
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department may not provide directly or indirectly any part of the |
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additional amount permitted by this subsection. The total amount |
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of loans made by the department and other entities to an |
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owner-builder under this subchapter, excluding the amounts of any |
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deferred forgivable loans made by a party other than the |
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department, may not exceed $90,000 [$60,000]. |
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(c) A loan made by the department under this subchapter: |
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(1) may not exceed a term of 30 years; |
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(2) may bear interest at a fixed rate of not more than |
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three percent or bear interest in the following manner: |
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(A) no interest for the first two years of the |
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loan; |
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(B) beginning with the second anniversary of the |
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date the loan was made, interest at the rate of one percent a year; |
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(C) beginning on the third anniversary of the |
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date the loan was made and ending on the sixth anniversary of the |
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date the loan was made, interest at a rate that is one percent |
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greater than the rate borne in the preceding year; and |
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(D) beginning on the sixth anniversary of the |
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date the loan was made and continuing through the remainder of the |
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loan term, interest at the rate of five percent; and |
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(3) must [may] be secured by a lien on the real |
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property. |
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(c-1) A department lien under Subsection (c)(3) may be [,
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including a lien that is] subordinate to a lien that secures a loan |
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made by another party under Subsection (b) only if the original |
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principle amount of the loan made under Subsection (b) exceeds 55 |
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percent of the total loan amount, excluding the amounts of any |
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deferred forgivable loans made by the other party [and that is
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greater than the department's lien]. |
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SECTION 3. Section 2306.758(a), Government Code, is amended |
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to read as follows: |
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(a) The department may [shall] solicit gifts and grants to |
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make loans under this subchapter. |
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SECTION 4. The changes in law made by this Act apply only to |
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a loan application submitted to the Texas Department of Housing and |
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Community Affairs on or after the effective date of this Act. A |
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loan application submitted to the department before the effective |
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date of this Act is governed by the law in effect on the date the |
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application was submitted, and the former law is continued in |
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effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2009. |