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A BILL TO BE ENTITLED
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AN ACT
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relating to establishing a grant program in the Texas Department of |
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Housing and Community Affairs to assist certain organizations that |
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make residential mortgage loans to residents of certain |
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neighborhoods. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter K, Chapter 2306, Government Code, is |
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amended by adding Section 2306.2562 to read as follows: |
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Sec. 2306.2562. AFFORDABLE HOMEOWNERSHIP ASSISTANCE |
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PROGRAM. (a) In this section, "residential mortgage loan" has the |
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meaning assigned by Section 180.002, Finance Code. |
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(b) The department shall create and administer a program to |
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provide grants to assist organizations to make below-market rate |
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residential mortgage loans to residents of neighborhoods that have |
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homeownership rates of less than 50 percent. |
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(c) To be eligible to receive a grant under this section, an |
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organization must: |
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(1) have a history of making below-market rate |
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residential mortgage loans to low and moderate income households; |
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(2) provide homebuyer education services; and |
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(3) provide post-home purchase counseling and support |
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services. |
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(d) The board shall adopt rules to implement the program |
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established under this section. |
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(e) In adopting rules under this section, the board shall: |
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(1) require an organization to use grant money awarded |
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under this section to make residential mortgage loans to residents |
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of this state described by Subsection (b) at a below-market |
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interest rate; and |
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(2) in awarding grants under the program, give |
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priority to organizations that qualify for matching funds from |
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federal or private sources. |
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(f) An organization awarded a grant under this section shall |
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submit to the department an annual report that contains information |
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regarding the organization's use of the grant money and the |
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reinvestment of loan principal and interest payments made to that |
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organization. |
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(g) The department shall consult with the Department of |
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Savings and Mortgage Lending in creating and administering the |
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program under this section. |
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SECTION 2. Not later than December 1, 2015, the governing |
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board of the Texas Department of Housing and Community Affairs |
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shall adopt the rules required by Section 2306.2562, Government |
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Code, as added by this Act. |
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SECTION 3. This Act takes effect September 1, 2015. |