| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to establishing a grant program in the Department of |
|
|
Savings and Mortgage Lending to assist certain organizations that |
|
|
make residential mortgage loans to residents of certain |
|
|
neighborhoods. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Chapter 13, Finance Code, is amended by adding |
|
|
Section 13.017 to read as follows: |
|
|
Sec. 13.017. AFFORDABLE HOMEOWNERSHIP ASSISTANCE PROGRAM. |
|
|
(a) In this section, "residential mortgage loan" has the meaning |
|
|
assigned by Section 180.002. |
|
|
(b) The Department of Savings and Mortgage Lending shall |
|
|
create and administer a program to provide grants to assist |
|
|
organizations to make below-market rate residential mortgage loans |
|
|
to residents of neighborhoods that have homeownership rates of less |
|
|
than 50 percent. |
|
|
(c) To be eligible to receive a grant under this section, an |
|
|
organization must: |
|
|
(1) have a history of making below-market rate |
|
|
residential mortgage loans to low and moderate income households; |
|
|
(2) provide homebuyer education services; and |
|
|
(3) provide post-home purchase counseling and support |
|
|
services. |
|
|
(d) The finance commission shall adopt rules to implement |
|
|
the program established under this section. |
|
|
(e) In adopting rules under this section, the finance |
|
|
commission shall: |
|
|
(1) require an organization to use grant money awarded |
|
|
under this section to make residential mortgage loans to residents |
|
|
of this state described by Subsection (a) at a below-market |
|
|
interest rate; and |
|
|
(2) require that in awarding grants the Department of |
|
|
Savings and Mortgage Lending give priority to organizations that |
|
|
qualify for matching funds from federal or private sources. |
|
|
(f) An organization awarded a grant under this section shall |
|
|
submit to the Department of Savings and Mortgage Lending an annual |
|
|
report that contains information regarding the organization's use |
|
|
of the grant money and the reinvestment of loan principal and |
|
|
interest payments made to that organization. |
|
|
SECTION 2. Not later than December 1, 2015, the Finance |
|
|
Commission of Texas shall adopt the rules required by Section |
|
|
13.017, Finance Code, as added by this Act. |
|
|
SECTION 3. This Act takes effect September 1, 2015. |