|
|
|
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. SMALL MUNICIPALITY AND RURAL AREA HOUSING |
|
DEVELOPMENT FUND. (a) In this section, "colonia" means a |
|
geographic area that: |
|
(1) is located in a county or municipality that is |
|
eligible, as identified by office rule, to receive financial |
|
assistance from the community development block grant colonia fund |
|
under this subchapter; |
|
(2) 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 |
|
(3) 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 department. |
|
(b) The small municipality and rural area housing |
|
development fund is an account in the general revenue fund. |
|
(c) In each state fiscal year, the office shall set aside |
|
for the purposes of this section an amount of money, not to exceed |
|
$7.5 million each year, that is equal to any amount provided to the |
|
community development block grant colonia fund under this |
|
subchapter that exceeds the amount provided to that colonia fund |
|
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: |
|
(1) housing initiatives in eligible counties and |
|
municipalities under office rules; or |
|
(2) the improvement of the housing conditions in a |
|
colonia. |
|
(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 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 community development block |
|
grant colonia fund under this subchapter. |
|
SECTION 2. Section 2306.0521(b), Government Code, is |
|
amended to read as follows: |
|
(b) This section does not apply to: |
|
(1) the manufactured housing division; or |
|
(2) the division for rural community and small |
|
municipality housing initiatives established by Section 2306.302. |
|
SECTION 3. Subchapter E, Chapter 2306, Government Code, is |
|
amended by adding Section 2306.098 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 identify available sources of funding for |
|
housing initiatives in eligible counties and municipalities, as |
|
described by Section 487.356. |
|
SECTION 4. Section 2306.253, Government Code, is amended by |
|
adding Subsections (a-1) and (a-2) to read as follows: |
|
(a-1) In addition to the education program implemented |
|
under Subsection (a), the department shall develop and implement a |
|
homebuyer education program designed to provide information and |
|
counseling to individuals and families of low income in rural |
|
communities and small municipalities. The education program must |
|
address topics relating to: |
|
(1) the home buying process; |
|
(2) financial literacy; |
|
(3) foreclosure remediation; and |
|
(4) other programs determined by the department as |
|
necessary to increase home ownership by individuals and families of |
|
low income. |
|
(a-2) The department may require any person who receives |
|
mortgage-based financial assistance from the department to |
|
complete the homebuyer education program established by Subsection |
|
(a-1). |
|
SECTION 5. Chapter 2306, Government Code, is amended by |
|
adding Subchapter N to read as follows: |
|
SUBCHAPTER N. RURAL COMMUNITY AND SMALL MUNICIPALITY HOUSING |
|
INITIATIVES |
|
Sec. 2306.301. DEFINITION. In this subchapter, "division" |
|
means the division established by Section 2306.302 to support rural |
|
community and small municipality housing initiatives. |
|
Sec. 2306.302. ESTABLISHMENT OF DIVISION. (a) The |
|
department shall establish a division to support rural community |
|
and small municipality housing initiatives. |
|
(b) The department by rule shall define: |
|
(1) a small municipality; and |
|
(2) a rural community. |
|
Sec. 2306.303. REGIONAL HOUSING DEVELOPMENT ORGANIZATIONS. |
|
(a) The division 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 |
|
legislative appropriations and gifts, grants, and donations. |
|
(c) The division may use the services of the Texas State |
|
Affordable Housing Corporation when necessary to accomplish the |
|
purposes of this section. |
|
Sec. 2306.304. TRAINING. The division 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 |
|
division shall provide the course at an appropriate location |
|
selected by the division and shall make the course available online |
|
in real time. |
|
Sec. 2306.305. RURAL GRANTS ADMINISTRATOR. (a) The |
|
director shall designate a rural grants administrator within the |
|
division established by Section 2306.302. |
|
(b) The rural grants administrator shall: |
|
(1) oversee and coordinate department initiatives |
|
that are directed toward specific rural communities or small |
|
municipalities; and |
|
(2) provide information to the director and the board |
|
regarding the impact of proposed department programs, rules, and |
|
initiatives on housing opportunities in rural communities and small |
|
municipalities. |
|
Sec. 2306.306. HOUSING DEVELOPMENT PLANNING ASSISTANCE. On |
|
the request of the governing body of a municipality or county, the |
|
division shall assign a department 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. 2306.307. 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; |
|
(2) individuals and families of very low income; or |
|
(3) agricultural workers. |
|
Sec. 2306.308. AGRICULTURAL WORKER HOUSING INITIATIVE. (a) |
|
The division shall fund housing initiatives that serve agricultural |
|
workers, including: |
|
(1) new housing initiatives; |
|
(2) housing rehabilitation initiatives; or |
|
(3) tenant-based rental assistance. |
|
(b) The division may designate a housing initiative for |
|
agricultural workers as a pilot project authorized under Section |
|
2306.307. |
|
(c) The division shall coordinate with other 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 legislative appropriations and gifts, |
|
grants, and donations. |
|
Sec. 2306.309. RURAL LAND BANK DEMONSTRATION PROGRAM. (a) |
|
The department may adopt a rural land bank demonstration program, |
|
or may enter into a memorandum of understanding requiring the Texas |
|
State Affordable Housing Corporation to adopt a rural land bank |
|
demonstration program, in which the officer charged with selling |
|
real property ordered sold pursuant to foreclosure of a tax lien may |
|
sell certain eligible real property by private sale for purposes of |
|
affordable housing development as provided by department rule. |
|
(b) The department may adopt any rules necessary for the |
|
purposes of the program, including a rule to establish or approve a |
|
land bank for the purpose of acquiring, holding, and transferring |
|
unimproved real property under this section. |
|
SECTION 6. Section 2306.67022, Government Code, is amended |
|
to read as follows: |
|
Sec. 2306.67022. QUALIFIED ALLOCATION PLAN; MANUAL. (a) |
|
The board annually shall adopt a qualified allocation plan and a |
|
corresponding manual to provide information regarding the |
|
administration of and eligibility for the low income housing tax |
|
credit program. |
|
(b) The board shall adopt any provisions in the qualified |
|
allocation plan that the board considers necessary to facilitate |
|
the efficient delivery of multifamily housing to rural areas in |
|
this state. |
|
SECTION 7. Section 2306.6723(b), Government Code, is |
|
amended to read as follows: |
|
(b) The rural development agency shall assist in developing |
|
all threshold, scoring, and underwriting criteria applied to |
|
applications eligible for the rural area set-aside. The criteria |
|
must be approved by that agency. To the extent permitted by federal |
|
law and notwithstanding any funding priorities otherwise provided |
|
by state law, the threshold, scoring, and underwriting criteria |
|
developed and approved under this section must ensure that |
|
applications for allocations of housing tax credits to small-scale |
|
developments located in rural areas are not placed, based solely on |
|
the size of the proposed developments, at a competitive |
|
disadvantage with applications for allocations of housing tax |
|
credits to other developments located in those areas. For purposes |
|
of this subsection, "small-scale development" means a development |
|
with fewer than 33 units. |
|
SECTION 8. Chapter 2306, Government Code, is amended by |
|
adding Subchapter NN to read as follows: |
|
SUBCHAPTER NN. TEXAS SECURE LOAN PILOT PROGRAM |
|
Sec. 2306.1081. DEFINITION. In this subchapter, "program" |
|
means the Texas secure loan pilot program. |
|
Sec. 2306.1082. TEXAS SECURE LOAN PILOT PROGRAM. (a) The |
|
department shall establish the Texas secure loan pilot program to |
|
provide first lien and second lien single-family mortgage loans to |
|
individuals and families of low income. |
|
(b) The program may include the provision of down payment |
|
and closing cost assistance. |
|
Sec. 2306.1083. 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; and |
|
(6) criteria for authorizing the modification of loan |
|
terms 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. 2306.1084. 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. |
|
Sec. 2306.1085. ALLOCATION OF LOANS. The department shall |
|
issue at least 50 percent of all loans under this subchapter to |
|
homebuyers whose incomes do not exceed 60 percent of area median |
|
family income, adjusted for family size. |
|
Sec. 2306.1086. LOAN TERMS; RECOVERY OF PRINCIPAL. (a) The |
|
department shall establish reasonable interest rates for first lien |
|
and second lien mortgage loans under this subchapter to allow full |
|
repayment of those loans by low-income homebuyers. |
|
(b) The department shall recover the full amount of the |
|
principal of a loan issued under this subchapter. |
|
Sec. 2306.1087. MODIFICATION OF LOAN TERMS. If a homebuyer |
|
meets the criteria adopted by the department under Section |
|
2306.1083(b)(6), the department or other servicer of the loan may |
|
modify the terms of the loan by: |
|
(1) suspending payments for a specific period; |
|
(2) extending the term of the loan to reduce the amount |
|
of the payments; or |
|
(3) lowering the interest rate to reduce the amount of |
|
the payments. |
|
Sec. 2306.1088. INITIATION OF MODIFIED LOAN TERMS. (a) |
|
Regardless of whether a loan payment is missed, the modification of |
|
loan terms under Section 2306.1087 may be requested by the |
|
homebuyer or initiated by the department or other servicer of the |
|
loan. |
|
(b) If a homebuyer misses a scheduled payment for a loan |
|
under this subchapter, the department or other servicer of the loan |
|
shall contact the homebuyer and determine the reason for the missed |
|
payment. If the payment was missed for a reason meeting the |
|
criteria adopted by the board under Section 2306.1083(b)(6), the |
|
department or servicer may modify the terms of the loan under |
|
Section 2306.1087. |
|
Sec. 2306.1089. EDUCATION SERVICES FOR HOMEBUYERS. The |
|
department shall provide homebuyer and homeowner education and |
|
counseling services to persons receiving loans under this |
|
subchapter. |
|
Sec. 2306.1090. FUNDING. (a) The department shall ensure |
|
that a loan issued under this subchapter is structured in a way that |
|
complies with any requirements associated with the source of the |
|
funds used for the loan. |
|
(b) In addition to funds set aside for the program under |
|
Section 1372.023 and any other available funds, including |
|
legislative appropriations, the department may solicit and accept |
|
gifts and grants for the purposes of this subchapter. |
|
(c) The department may package, securitize, and sell the |
|
loans issued under this subchapter and use the proceeds of the sale |
|
to issue additional loans. |
|
SECTION 9. Subtitle C, Title 12, Local Government Code, is |
|
amended by adding Chapter 394A to read as follows: |
|
CHAPTER 394A. RURAL HOUSING LAND ASSEMBLAGE PROGRAM |
|
Sec. 394A.001. SHORT TITLE. This chapter may be cited as |
|
the Rural Housing Land Assemblage Program Act. |
|
Sec. 394A.002. DEFINITIONS. In this chapter: |
|
(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) "Department" means the Texas Department of Housing |
|
and Community Affairs. |
|
(3) "Low-income household" means: |
|
(A) for rental housing, a household with a gross |
|
income not to exceed 60 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. |
|
(4) "Rural county" means 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 |
|
implementing and operating a rural housing land assemblage program. |
|
(6) "Rural housing land assemblage program" means a |
|
program 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. 394A.003. RURAL HOUSING LAND ASSEMBLAGE PROGRAM. The |
|
governing bodies of one or more rural municipalities or rural |
|
counties may participate in a rural housing land assemblage |
|
program. As part of the program, a participating municipality or |
|
county shall: |
|
(1) enter into interlocal agreements with any other |
|
participating municipalities or counties governing the scope and |
|
operation of the program, subject to the provisions of this |
|
chapter; and |
|
(2) establish or designate an entity to serve as the |
|
rural housing land assemblage entity in charge of implementing and |
|
operating the program. |
|
Sec. 394A.004. RURAL HOUSING LAND ASSEMBLAGE ENTITY. A |
|
rural housing land assemblage entity may acquire, hold, and |
|
transfer, for the purpose of providing affordable housing for |
|
low-income households, real property that is not improved with a |
|
habitable building or buildings and is otherwise unoccupied. |
|
Sec. 394A.005. 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 394A.004; |
|
(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 participates in |
|
the rural housing land assemblage program has executed with the |
|
other taxing units that are parties to the tax suit an interlocal |
|
agreement that enables those units to agree to participate in the |
|
program while retaining 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. 394A.006. 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. 394A.007. DEPARTMENT RULEMAKING AUTHORITY. The |
|
department shall develop and adopt additional guidelines and rules |
|
governing the operation of a rural housing land assemblage program, |
|
including 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. |
|
Sec. 394A.008. OPEN RECORDS AND MEETINGS. A rural housing |
|
land assemblage entity is subject to Chapters 551 and 552, |
|
Government Code. |
|
Sec. 394A.009. 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 |
|
each participating municipality or county not later than the 90th |
|
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 10. (a) Not later than December 1, 2009, the Texas |
|
Department of Housing and Community Affairs shall implement the |
|
homebuyer education program required by Section 2306.253(a-1), |
|
Government Code, as added by this Act. |
|
(b) 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 11. The changes in law made by this Act in amending |
|
Subchapter DD, Chapter 2306, Government Code, apply only to an |
|
application cycle that begins on or after the effective date of this |
|
Act. An application cycle that begins before the effective date of |
|
this Act is governed by the law in effect when the application cycle |
|
began, and the former law is continued in effect for that purpose. |
|
SECTION 12. The Texas Department of Housing and Community |
|
Affairs shall adopt the rules required by Subchapter NN, Chapter |
|
2306, Government Code, as added by this Act, not later than October |
|
1, 2009, and shall begin issuing loans under the Texas secure loan |
|
pilot program not later than January 1, 2010. |
|
SECTION 13. This Act takes effect September 1, 2009. |