81R4351 ACP-D

By: Lucio S.B. No. 2290

A BILL TO BE ENTITLED

AN ACT

relating to providing housing assistance to rural communities and small municipalities.

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

SECTION 1. 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 2. 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 3. 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 division 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 division 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 division 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 4. (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 5. This Act takes effect September 1, 2009.