84R24831 JAM-F

By: Lucio S.B. No. 2063

A BILL TO BE ENTITLED

AN ACT

relating to the establishment and administration of the Texas Safe Home Program.

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

SECTION 1. The heading to Section 2306.188, Government Code, is amended to read as follows:

Sec. 2306.188. ESTABLISHING HOME OWNERSHIP IN DISASTER AREA OR UNDER TEXAS SAFE HOME PROGRAM.

SECTION 2. Section 2306.188(a), Government Code, is amended to read as follows:

(a) An applicant for federally provided financial assistance administered by the department to repair or rebuild a home damaged by a natural disaster or an applicant for assistance under the Texas Safe Home Program established under Subchapter OO may establish ownership of the home through nontraditional documentation of title. The department shall process an application for that assistance as if the applicant is the record title holder of the affected real property if the applicant provides to the department:

(1) on a form prescribed by the department, an affidavit summarizing the basis on which the applicant claims to be the holder of record title or, if applicable, a successor in interest to the holder of record title and stating that:

(A) there is no other person entitled to claim any ownership interest in the property; or

(B) each person who may be entitled to claim an ownership interest in the property has given consent to the application or cannot be located after a reasonable effort; and

(2) other documentation, including tax receipts, utility bills, or evidence of insurance for the home, that indicates that the applicant exercised ownership over the property for the period claimed by the applicant [at the time of the natural disaster].

SECTION 3. Chapter 2306, Government Code, is amended by adding Subchapter OO to read as follows:

SUBCHAPTER OO. TEXAS SAFE HOME PROGRAM

Sec. 2306.10001. TEXAS SAFE HOME PROGRAM. (a) The department shall establish and administer a program to provide financial assistance for the repair of or the demolition and replacement of owner-occupied single-family homes that are in a condition that poses a risk to the health and safety of the occupants.

(b) The board shall adopt rules to implement the program described by this section. Rules adopted under this section must establish:

(1) a formula that distributes to each uniform state service region appropriated funds by considering publicly available data regarding levels of poverty, levels of substandard housing, and population, including the percentage of population composed of persons with disabilities, elderly persons, and households with children, in each region;

(2) detailed criteria for regional administrators to use in determining whether a homeowner is eligible for participation in the program, including a process for documenting the condition of a home in a written report after a physical inspection of the home;

(3) requirements for regional administrators to develop and administer priority waitlists for participation in the program;

(4) standards for assessing the real property on which a home is located;

(5) procedures to ensure compliance with federal national flood insurance program requirements; and

(6) extended owner occupancy requirements for new or repaired homes.

Sec. 2306.10002. REGIONAL ADMINISTRATOR. In each uniform state service region the department shall attempt to identify a single governmental administrator, including a consortium of councils of government or other governmental entities, or a nonprofit entity to administer the program in all portions of that region. In a uniform state service region in which no administrator is identified, the funds may be awarded to the councils of government in that region pro rata based on population.

Sec. 2306.10003. HOMEOWNER ELIGIBILITY. To be eligible for assistance under the program, a homeowner:

(1) may not have an annual income that, as determined by the department and when combined with the income of all persons who reside with the homeowner, exceeds 50 percent of the greater of the state or local median household income; and

(2) must own and occupy a home, including a manufactured home:

(A) as a primary residence for a period of not less than the 180 days preceding the date of the homeowner's application for assistance under this subchapter; and

(B) that has, after inspection by the regional administrator, been identified as substandard, in need of repair or replacement, and posing a potential risk to the health and safety of the occupants.

Sec. 2306.10004. TEMPORARY RELOCATION. If a homeowner is approved for participation in the program, the regional administrator promptly shall assist the occupants of the home in relocating to temporary housing for a period not to exceed two years pending the repair or replacement of the home. Funds appropriated to the program may be used to provide assistance under this section. Priority waitlists must assign the highest priority to households receiving temporary housing assistance using program funds.

Sec. 2306.10005. INSURANCE PROCEEDS. If a homeowner has filed a claim for insurance proceeds associated with damage to the home, any proceeds from the claim must first be used to pay for any covered repair or replacement costs of the home.

Sec. 2306.10006. ADMINISTRATIVE COSTS. The department may reserve for payment of administrative expenses not more than 10 percent of money received for the program under this subchapter. Of the 10 percent, the department shall determine an appropriate allocation to cover the administrative expenses of regional administrators.

SECTION 4. This Act takes effect September 1, 2015.