81R6708 ACP-F

By: Menendez H.B. No. 3432

A BILL TO BE ENTITLED

AN ACT

relating to the administration of the Texas Department of Housing and Community Affairs.

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

SECTION 1. Sections 2306.004(12-a) and (26-a), Government Code, are amended to read as follows:

(12-a) "Grant" means financial assistance that is awarded in the form of money to a housing sponsor for a specific purpose and that is not required to be repaid. [For purposes of this chapter, a grant includes a forgivable loan.]

(26-a) "Rehabilitation" means the improvement or modification of an existing residential development through an alteration, addition, or enhancement. The term includes the demolition of an existing residential development [and the reconstruction of any development units], but does not include the improvement or modification of an existing residential development for the purpose of an adaptive reuse of the development.

SECTION 2. Sections 2306.030(b) and (c), Government Code, are amended to read as follows:

(b) The board shall elect the following officers:

(1) from the members of the board, an assistant presiding officer to perform the duties of the presiding officer when the presiding officer is not present or is incapable of performing duties of the presiding officer; and

(2) a secretary to be the official custodian of the minutes, books, records, and seal of the board and to perform other duties assigned by the board[; and

[(3) a treasurer to perform duties assigned by the board].

(c) The office [offices] of secretary [and treasurer may be held by one individual, and the holder of each of these offices] need not be a board member. The board may appoint one or more individuals who are not members to be assistant secretaries to perform any duty of the secretary.

SECTION 3. Subchapter B, Chapter 2306, Government Code, is amended by adding Section 2306.0351 to read as follows:

Sec. 2306.0351. PUBLIC HOUSING AUTHORITY BOARD: APPOINTMENT AND COMPOSITION. (a) The department shall establish a public housing authority board.

(b) The public housing authority board is composed of:

(1) the seven members of the board; and

(2) one representative who participates in a public housing authority voucher program administered through the department, appointed by the governor.

(c) The board member appointed under Subsection (b)(2):

(1) serves a three-year term; and

(2) is not required to meet any other qualifications of appointment required of the members of the board of the department but is subject to the restrictions provided by Sections 2306.034 and 2306.035.

(d) The public housing authority board shall investigate and report on issues related to public housing and the voucher programs administered by the department.

(e) The public housing authority board shall meet at least once each year.

(f) A public housing authority board meeting may be held in conjunction with a regularly scheduled board meeting.

(g) For purposes of this section, the presiding officer named under Section 2306.030 serves as the presiding officer of the public housing authority board.

(h) The presiding officer of the public housing authority board serves as an ex officio, nonvoting member.

SECTION 4. Section 2306.045, Government Code, is amended by adding Subsection (c) to read as follows:

(c) To accomplish the purposes of this section, the board may request the director to transfer an administrative law judge into the department on a temporary or permanent basis and may contract with a qualified individual to serve as temporary administrative law judge as necessary.

SECTION 5. Section 2306.0503, Government Code, is amended to read as follows:

Sec. 2306.0503. ADMINISTRATIVE PROCEDURE. (a) A proceeding to impose the penalty is considered to be a contested case under Chapter 2001.

(b) If this chapter conflicts with Chapter 2001, this chapter controls.

SECTION 6. Section 2306.052(b), Government Code, is amended to read as follows:

(b) The director shall:

(1) administer and organize the work of the department consistent with this chapter and with sound organizational management that promotes efficient and effective operation;

(2) appoint and remove personnel employed by the department;

(3) submit, through and with the approval of the board and the governor, requests for appropriations and other money to operate the department;

(4) administer all money entrusted to the department;

(5) administer all money and investments of the department subject to:

(A) department indentures and contracts;

(B) Sections 2306.118 through 2306.120; and

(C) an action of the board under Section 2306.351; and

(6) perform other functions that may be assigned by the board or the governor.

SECTION 7. Section 2306.0521(a), Government Code, is amended to read as follows:

(a) The [Notwithstanding Section 2306.021(b) or any other provision of this chapter, the] director, with the approval of the board, may:

(1) create divisions [in addition to those listed in Section 2306.021(b)] and assign to the newly created divisions any duties and powers imposed on or granted to an existing division or the department generally; or

(2) eliminate any division [listed in Section 2306.021(b) or created under this section and assign any duties or powers previously assigned to the eliminated division to another division listed in Section 2306.021(b) or created under this section; or

[(3) eliminate all divisions listed in Section 2306.021(b) or created under this section] and reorganize the distribution of powers and duties granted to or imposed on a division in any manner the director determines appropriate for the proper administration of the department.

SECTION 8. Section 2306.057(a), Government Code, is amended to read as follows:

(a) Before the board approves any project application submitted under this chapter, the department, through the division with responsibility for compliance matters, shall[:

[(1)] assess:

(1) [(A)] the compliance history in this state of the applicant and any affiliate of the applicant with respect to all applicable requirements; and

(2) [(B)] the compliance issues associated with the proposed project[; and

[(2) provide to the board a written report regarding the results of the assessments described by Subdivision (1)].

SECTION 9. Section 2306.092, Government Code, is amended to read as follows:

Sec. 2306.092. DUTIES REGARDING CERTAIN PROGRAMS CREATED UNDER FEDERAL LAW. As consistent with its purposes, the [The] department shall administer programs, as appropriate under policies established by the board, implementing[:

[(1)] state responsibilities established [for programs created] under [the federal Economic Opportunity Act of 1964 (42 U.S.C. Section 2701 et seq.);

[(2) programs assigned to the department under the Omnibus Budget Reconciliation Act of 1981 (Pub.L. No. 97-35); and

[(3) other] federal [acts creating economic opportunity] programs and assigned by law or by executive order to the department.

SECTION 10. Section 2306.111(d), Government Code, is amended to read as follows:

(d) The department shall allocate housing funds provided to the state under the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. Section 12701 et seq.), housing trust funds administered by the department under Sections 2306.201-2306.206, and commitments issued under the federal low income housing tax credit program administered by the department under Subchapter DD to all urban areas and rural areas of each uniform state service region based on a formula developed by the department under Section 2306.1115. Except as otherwise provided this chapter, if [If] the department determines under the formula that an insufficient number of eligible applications for assistance out of funds or credits allocable under this subsection are submitted to the department from a particular uniform state service region, the department shall use the unused funds or credits allocated to that region for all urban areas and rural areas in other uniform state service regions based on identified need and financial feasibility.

SECTION 11. Section 2306.148, Government Code, is amended to read as follows:

Sec. 2306.148. UNDERWRITING STANDARDS. The board shall have the specific duty and power to adopt underwriting standards for grants or loans made or financed by the housing finance division.

SECTION 12. Section 2306.174, Government Code, is amended to read as follows:

Sec. 2306.174. ACQUISITION AND DISPOSITION OF PROPERTY. The department may:

(1) acquire, own, rent, lease, accept, hold, or dispose of any real, personal, or mixed property, or any interest in property, including a right or easement, in performing its duties and exercising its powers under this chapter, by purchase, exchange, gift, assignment, transfer, foreclosure, sale, lease, or otherwise;

(2) hold, manage, operate, or improve real, personal, or mixed property, except that:

(A) the department is restricted in acquiring property under Section 2306.251 unless it is required to foreclose on a delinquent loan and elects to acquire the property at foreclosure;

(B) the department shall make a diligent effort to sell a housing development acquired through foreclosure to a purchaser who will be required to pay ad valorem taxes on the housing development or, if such a purchaser cannot be found, to another purchaser; and

(C) the department shall sell a multifamily housing development acquired through foreclosure not later than the third anniversary of the date of acquisition unless the board adopts a resolution stating the reason [that a purchaser cannot be found after diligent search by the housing finance division, in which case the department shall continue to try to find a purchaser and shall sell] the [housing] development has not been sold [when a purchaser is found]; and

(3) lease or rent land or a dwelling, house, accommodation, building, structure, or facility from a private party to carry out the housing finance division's purposes.

SECTION 13. Section 2306.2561(a), Government Code, is amended to read as follows:

(a) The department, through the housing finance division, may [shall] provide loans and grants to political subdivisions, housing finance corporations, public housing authorities, for-profit organizations, nonprofit organizations, and income-eligible individuals, families, and households for purposes of rehabilitating housing to preserve affordability of the housing.

SECTION 14. Section 2306.903(a), Government Code, is amended to read as follows:

(a) The Texas Interagency Council for the Homeless is composed of:

(1) one representative from each of the following agencies, appointed by the administrative head of that agency:

(A) [the Texas Department of Health;

[(B)] the [Texas] Department of State Health [Human] Services;

[(C) the Texas Department of Mental Health and Mental Retardation;]

(B) [(D)] the Texas Department of Criminal Justice;

(C) [(E)] the [Texas] Department of [on] Aging and Disability Services;

(D) [(F)] the Department of Assistive and Rehabilitative Services [Texas Rehabilitation Commission];

(E) [(G)] the Texas Education Agency;

[(H) the Texas Commission on Alcohol and Drug Abuse;]

(F) [(I)] the Department of Family and Protective [and Regulatory] Services;

(G) [(J)] the Health and Human Services Commission;

(H) [(K)] the Texas Workforce Commission;

(I) [(L)] the Texas Youth Commission; and

(J) [(M)] the Texas Veterans Commission;

(2) two representatives from the department[, one each from the community affairs division and the housing finance division], appointed by the director; [and]

(3) three members representing service providers to the homeless, one each appointed by the governor, the lieutenant governor, and the speaker of the house of representatives; and

(4) one representative from each municipality that has a population of 250,000 or more, appointed by the governing body of that municipality.

SECTION 15. The following provisions of the Government Code are repealed:

(1) Section 2306.004(23-a);

(2) Section 2306.004(28-b);

(3) Section 2306.057(b);

(4) Section 2306.232;

(5) Section 2306.258; and

(6) Section 2306.803(c).

SECTION 16. (a) The changes in law made by this Act relating to the evaluation of applications for financial assistance administered by the Texas Department of Housing and Community Affairs apply only to an application submitted on or after the effective date of this Act. An application submitted before the effective date of this Act is governed by the law in effect when the application was submitted, and the former law is continued in effect for that purpose.

(b) As soon as practicable after the effective date of this Act, the governor shall appoint an initial representative participating in a public housing authority voucher program to the public housing authority board as required by Section 2306.0351, Government Code, as added by this Act.

(c) As soon as practicable after the effective date of this Act, the governing body of each municipality that has a population of 250,000 or more shall appoint an initial representative from the municipality to the Texas Interagency Council for the Homeless as required by Section 2306.903(a), Government Code, as amended by this Act.

SECTION 17. This Act takes effect September 1, 2009.