By: Lucio, Zaffirini S.B. No. 2063

(In the Senate - Filed April 22, 2015; April 22, 2015, read first time and referred to Committee on Intergovernmental Relations; May 5, 2015, reported adversely, with favorable Committee Substitute by the following vote: Yeas 6, Nays 1; May 5, 2015, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR S.B. No. 2063 By: Lucio

A BILL TO BE ENTITLED

AN ACT

relating to the establishment and administration of the Texas Safe Home Demonstration 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 DEMONSTRATION 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 Demonstration 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 DEMONSTRATION PROGRAM

Sec. 2306.10001. TEXAS SAFE HOME DEMONSTRATION PROGRAM. (a) The department shall establish in certain counties designated by the department a demonstration 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) Financial assistance administered under this subchapter may be provided in the form of a grant, partial grant, loan, or forgivable loan. Money appropriated to the demonstration program is not part of the housing trust fund. The regional allocation formula described under Section 2306.1115 does not apply to financial assistance administered under this subchapter if the money appropriated for the purpose does not exceed $3 million for each state fiscal year.

(c) The board may adopt rules to implement the program described by this section. The department shall establish criteria to implement the demonstration program, including:

(1) a formula that distributes, to each uniform state service region containing a county in which the demonstration program is implemented, appropriated funds after 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 to be used in determining whether a homeowner is eligible for participation in the demonstration 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 the development and administration of priority waitlists for participation in the demonstration 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;

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

(7) criteria for the acceptance of third-party contributions, including volunteer labor or additional loans, grants, or other financial assistance; and

(8) oversight and monitoring criteria for participating administrators.

Sec. 2306.10002. ADMINISTRATORS. In each uniform state service region containing a county in which the demonstration program is implemented, 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 demonstration 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 demonstration 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 financial assistance under this subchapter; and

(B) that has, after an inspection conducted under the demonstration program, 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 demonstration program, the occupants of the home shall be assisted 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 demonstration program may be used to provide assistance under this section. A priority waitlist must assign the highest priority to households receiving temporary housing assistance using demonstration 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 demonstration program under this subchapter. Of the 10 percent, the department shall determine an appropriate allocation to cover the administrative expenses of any identified administrators.

SECTION 4. The Texas Department of Housing and Community Affairs is required to implement this Act only if the legislature appropriates money specifically for that purpose. If the legislature does not appropriate money specifically for that purpose, the department may, but it is not required to, implement this Act using other appropriations available for that purpose.

SECTION 5. This Act takes effect September 1, 2015.

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