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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 Department of |
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Savings and Mortgage Lending 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. Chapter 13, Finance Code, is amended by adding |
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Section 13.017 to read as follows: |
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Sec. 13.017. AFFORDABLE HOMEOWNERSHIP ASSISTANCE PROGRAM. |
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(a) In this section, "residential mortgage loan" has the meaning |
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assigned by Section 180.002. |
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(b) The Department of Savings and Mortgage Lending shall |
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create and administer a program to provide grants to assist |
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organizations to make below-market rate residential mortgage loans |
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to residents of neighborhoods that have homeownership rates of less |
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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 finance commission shall adopt rules to implement |
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the program established under this section. |
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(e) In adopting rules under this section, the finance |
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commission 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 (a) at a below-market |
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interest rate; and |
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(2) require that in awarding grants the Department of |
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Savings and Mortgage Lending give priority to organizations that |
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qualify for matching funds from 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 of Savings and Mortgage Lending an annual |
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report that contains information regarding the organization's use |
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of the grant money and the reinvestment of loan principal and |
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interest payments made to that organization. |
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SECTION 2. Not later than December 1, 2015, the Finance |
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Commission of Texas shall adopt the rules required by Section |
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13.017, Finance Code, as added by this Act. |
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SECTION 3. This Act takes effect September 1, 2015. |