81R3362 JAM-D

By: Deuell S.B. No. 1002

A BILL TO BE ENTITLED

AN ACT

relating to the continuation and functions of the Texas State Affordable Housing Corporation; providing penalties.

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

SECTION 1. Section 2306.5521, Government Code, is amended to read as follows:

Sec. 2306.5521. SUNSET PROVISION. The Texas State Affordable Housing Corporation is subject to Chapter 325 (Texas Sunset Act). Unless continued in existence as provided by that chapter, the corporation is abolished and this subchapter expires September 1, 2015 [2009].

SECTION 2. Sections 2306.554(a) and (b), Government Code, are amended to read as follows:

(a) The board of directors of the corporation consists of seven [five] members appointed by the governor. One member must represent the interests of individuals and families served by the corporation's single-family mortgage loan programs, one member must represent nonprofit housing organizations, and the remaining five members must [who] represent one or more [any] of the following areas:

(1) state or federal savings banks or savings and loan associations;

(2) community banks with assets of $200 million or less;

(3) large metropolitan banks with assets of more than $1 billion;

(4) asset management companies;

(5) mortgage servicing companies;

(6) builders;

(7) real estate developers;

(8) real estate brokers;

(9) community or economic development organizations;

(10) private mortgage companies;

(11) nonprofit housing development companies;

(12) attorneys;

(13) investment bankers;

(14) underwriters;

(15) private mortgage insurance companies;

(16) appraisers;

(17) property management companies;

(18) financial advisors;

(19) nonprofit foundations;

(20) financial advisors; or

(21) any other area of expertise that the governor finds necessary for the successful operation of the corporation.

(b) The governor shall designate a member of the corporation's board of directors as the presiding officer of the [corporation's] board of directors to serve in that capacity at the pleasure of the governor [from the members].

SECTION 3. Section 2306.5541, Government Code, is amended to read as follows:

Sec. 2306.5541. TERMS OF MEMBERS. The members of the board of directors of the corporation serve staggered six-year terms, with the terms of [one or] two or three members expiring on February 1 of each odd-numbered year.

SECTION 4. Sections 2306.5543(b) and (c), Government Code, are amended to read as follows:

(b) The training program must provide the person with information regarding:

(1) the legislation that created the corporation [and the corporation's board of directors];

(2) the programs, functions, rules, and budget of the corporation [the programs operated by the corporation];

(3) [the role and functions of the corporation;

[(4) the rules of the corporation with an emphasis on the rules that relate to disciplinary and investigatory authority;

[(5) the current budget for the corporation;

[(6)] the results of the most recent formal audit of the corporation;

(4) [(7)] the requirements of laws relating to[:

[(A) the] open meetings, [law, Chapter 551;

[(B) the] public information, [law, Chapter 552;

[(C) the] administrative procedure, and conflicts of interest [law, Chapter 2001; and

[(D) other laws relating to public officials, including conflict-of-interest laws]; and

(5) [(8)] any applicable ethics policies adopted by the corporation or the Texas Ethics Commission.

(c) A person appointed to the corporation's board of directors is entitled to reimbursement, as [to the same extent] provided by the General Appropriations Act [for a member of a state board], for the travel expenses incurred in attending the training program regardless of whether the attendance at the program occurs before or after the person qualifies for office.

SECTION 5. Section 2306.5545(b), Government Code, is amended to read as follows:

(b) A person may not be a member of the corporation's board of directors and may not be a corporation employee employed in a "bona fide executive, administrative, or professional capacity," as that phrase is used for purposes of establishing an exemption to the overtime provisions of the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.), and its subsequent amendments, if:

(1) the person is an officer, employee, or paid consultant of a Texas trade association in the field of banking, mortgage lending, real estate, housing development, or housing construction; or

(2) the person's spouse is an officer, manager, or paid consultant of a Texas trade association in the field of banking, mortgage lending, real estate, housing development, or housing construction.

SECTION 6. Section 2306.559(d), Government Code, is amended to read as follows:

(d) The report must include:

(1) a statement of support, revenue, and expenses and change in fund balances;

(2) a statement of functional expenses; [and]

(3) balance sheets for all funds;

(4) the number, amount, and purpose of private gifts, grants, donations, or other funds applied for and received;

(5) the number, amount, and purpose of loans provided to affordable housing developers, regardless of whether the corporation provides those loans directly to the developers or administers the loans from another source;

(6) the amount and source of funds deposited into any fund created by the corporation for the purpose of providing grants and the number, amount, and purpose of any grants provided; and

(7) the total amount of annual revenue generated by the corporation in excess of its expenditures.

SECTION 7. Subchapter Y, Chapter 2306, Government Code, is amended by adding Section 2306.5671 to read as follows:

Sec. 2306.5671. COMPLIANCE WITH CONTRACT TERMS. A contract or agreement between the corporation and a housing sponsor that receives financing by or through the corporation for the purpose of providing affordable multifamily housing must contain a provision stating that if the housing sponsor fails to comply with the terms of the contract or agreement, the corporation may, as appropriate:

(1) assess administrative penalties;

(2) remove the manager of the affected property and select a new manager;

(3) withdraw reserve funds to make needed repairs and replacements to the property; or

(4) appoint the corporation as a receiver to protect and operate the property.

SECTION 8. Section 2306.568, Government Code, is amended to read as follows:

Sec. 2306.568. RECORD OF COMPLAINTS. (a) The corporation shall maintain a system to promptly and efficiently act on complaints [file on each written complaint] filed with the corporation. The corporation shall maintain information about parties to the complaint, [file must include:

[(1) the name of the person who filed the complaint;

[(2) the date the complaint is received by the corporation;

[(3)] the subject matter of the complaint,[;

[(4) the name of each person contacted in relation to the complaint;

[(5)] a summary of the results of the review or investigation of the complaint, and its disposition[; and

[(6) an explanation of the reason the file was closed, if the corporation closed the file without taking action other than to investigate the complaint].

(b) The corporation shall make information available describing its [provide to the person filing the complaint and to each person who is a subject of the complaint a copy of the corporation's policies and] procedures for [relating to] complaint investigation and resolution.

(c) The corporation[, at least quarterly until final disposition of the complaint,] shall periodically notify the [person filing the] complaint parties [and each person who is a subject of the complaint] of the status of the complaint until final disposition [investigation unless the notice would jeopardize an undercover investigation].

SECTION 9. Section 2306.569, Government Code, is amended to read as follows:

Sec. 2306.569. EFFECTIVE USE OF TECHNOLOGY. The corporation's board of directors shall [develop and] implement a policy requiring the [president of the] corporation [and corporation employees] to use [research and propose] appropriate technological solutions to improve the corporation's ability to perform its functions. The policy [technological solutions] must[:

[(1)] ensure that the public is able to [easily find information about the corporation on the Internet;

[(2) ensure that persons who want to use the corporation's services are able to:

[(A)] interact with the corporation on [through] the Internet[; and

[(B) access any service that can be provided effectively through the Internet; and

[(3) be cost-effective and developed through the corporation's planning processes].

SECTION 10. Section 2306.5671, Government Code, as added by this Act, does not affect the terms of a contract or agreement entered into before the effective date of this Act, except that if the contract or agreement is renewed, modified, or extended on or after the effective date of this Act, Section 2306.5671 applies to the contract or agreement beginning on the date of renewal, modification, or extension.

SECTION 11. (a) Promptly after this Act takes effect, the governor shall appoint two additional members to the board of directors of the Texas State Affordable Housing Corporation. In appointing those members, the governor shall appoint one person to a term expiring February 1, 2011, and one to a term expiring February 1, 2013. As provided by Section 2306.554(a), Government Code, as amended by this Act:

(1) one member appointed under this subsection must represent the interests of individuals and families served by the Texas State Affordable Housing Corporation's single-family mortgage loan programs, unless the governor determines that a current member of the board of directors represents those persons; and

(2) one member appointed under this subsection must represent nonprofit housing organizations, unless the governor determines that a current member of the board of directors represents those organizations.

(b) Until all appointees to the board of directors of the Texas State Affordable Housing Corporation have taken office, a quorum of the board is a majority of the number of members who are qualified.

SECTION 12. This Act takes effect September 1, 2009.