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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment and administration of a program |
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designed to increase the availability of affordable housing. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 2306, Government Code, is amended by |
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adding Subchapter OO to read as follows: |
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SUBCHAPTER OO. TEXAS CASA LOAN PROGRAM |
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Sec. 2306.10001. DEFINITION. In this subchapter, "program" |
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means the community affordable safe assistance loan program. |
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Sec. 2306.10002. TEXAS CASA LOAN PROGRAM. The department |
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shall establish the community affordable safe assistance loan |
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program to provide individuals and families of low and very low |
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income, first-time homebuyers, minorities, credit-challenged |
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residents, and other homebuyers in this state the opportunity to |
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purchase affordable housing in a manner that encourages long-term |
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value, improves general living conditions for homebuyers, expands |
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the local tax base, and increases the use of and investment in local |
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properties held under any existing neighborhood stabilization |
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program for the area. |
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Sec. 2306.10003. ADMINISTRATION OF PROGRAM; RULES. (a) The |
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department shall administer the program as a partnership of the |
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department with nonprofit lenders, community development financial |
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institutions, private lenders, and the applicable federal home loan |
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banks for the affected areas. |
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(b) The board, in consultation with participating nonprofit |
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lenders, community development financial institutions, and private |
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lenders and with the applicable federal home loan banks, shall |
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adopt rules governing the administration of the program, including: |
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(1) eligibility criteria for receiving a loan under |
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the program; |
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(2) criteria for participation in the program by |
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nonprofit lenders, community development financial institutions, |
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and private lenders; |
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(3) the involvement of third-party lending |
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institutions; |
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(4) criteria for determining what properties may be |
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eligible for inclusion in the program, which must include |
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properties held under the neighborhood stabilization program, if |
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any; |
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(5) requirements relating to loans made for properties |
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held under the neighborhood stabilization program; |
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(6) requirements ensuring that a loan issued under |
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this subchapter is structured in a way that complies with any |
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requirements associated with the source of the funds used for the |
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loan; and |
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(7) provisions implementing and enforcing eligibility |
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requirements under Section 2306.10004. |
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(c) The department may enter into a memorandum of |
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understanding with a state agency or may contract with a private |
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entity to administer all or a portion of the activities required |
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under this subchapter. |
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(d) The department may reserve for payment of |
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administrative expenses of the department, participating nonprofit |
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lenders, community development financial institutions, and private |
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lenders, and the applicable federal home loan banks, not more than |
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five percent of money received for the program under this |
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subchapter. |
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Sec. 2306.10004. HOMEBUYER ELIGIBILITY. To be eligible for |
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a loan issued under the program, a homebuyer must: |
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(1) have an annual income, adjusted for family size, |
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of not more than: |
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(A) 80 percent of the area median income if the |
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homebuyer lives in a rural area; or |
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(B) 60 percent of the area median income if the |
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homebuyer lives in an urban area; |
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(2) intend to occupy the purchased home as the |
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homebuyer's primary residence for a period established by |
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department rule; and |
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(3) meet any additional eligibility requirements or |
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limitations prescribed by the department. |
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Sec. 2306.10005. ALLOCATION OF LOANS. The department shall |
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issue not less than 50 percent of all loans under this subchapter to |
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homebuyers whose incomes do not exceed 60 percent of the area median |
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family income, adjusted for family size. |
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Sec. 2306.10006. LOAN TERMS; RECOVERY OF PRINCIPAL. The |
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department shall establish reasonable interest rates for mortgage |
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loans issued under this subchapter and shall design the program to |
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maximize the likelihood of recovering full repayment of those loans |
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by homebuyers, including principal and interest. |
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Sec. 2306.10007. FUNDING. (a) The department may fund the |
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program with: |
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(1) money appropriated to the department for that |
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purpose; |
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(2) money set aside for the department under Section |
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1372.023; |
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(3) proceeds from the sale of loans under Subsection |
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(b); and |
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(4) any other available money, including gifts and |
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grants made for the purposes of this subchapter. |
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(b) The department may package, securitize, and sell the |
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loans issued under this subchapter. |
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(c) As part of the program, the department may participate |
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in loan pools that enable the department to leverage private funds |
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with nonprofit lenders, community development financial |
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institutions, private lenders, and federal home loan banks to |
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better serve individuals and families of low and very low income, |
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first-time homebuyers, minorities, credit-challenged residents, |
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and other homebuyers in this state. |
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Sec. 2306.10008. APPLICABILITY OF OTHER LAW. To the extent |
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that a requirement of this subchapter conflicts with a requirement |
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provided by another law, the more restrictive requirement prevails. |
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SECTION 2. (a) The Texas Department of Housing and |
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Community Affairs shall adopt the rules required by Subchapter OO, |
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Chapter 2306, Government Code, as added by this Act, not later than |
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December 31, 2015. |
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(b) Not later than March 1, 2016, the Texas Department of |
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Housing and Community Affairs shall begin making the funds |
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available through the program established by Subchapter OO, Chapter |
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2306, Government Code, as added by this Act. |
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SECTION 3. This Act takes effect September 1, 2015. |