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A BILL TO BE ENTITLED
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AN ACT
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relating to predevelopment loans provided to community housing |
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development organizations by the Texas Department of Housing and |
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Community Affairs. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter J, Chapter 2306, Government Code, is |
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amended by adding Section 2306.233 to read as follows: |
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Sec. 2306.233. PREDEVELOPMENT LOANS. (a) The department |
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may issue to a community housing development organization certified |
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by the department a project-specific predevelopment loan to |
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facilitate the development of a project that, if considered |
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feasible, will receive an award of financial assistance under the |
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terms of the federal HOME Investment Partnerships Program |
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established under Title II of the Cranston-Gonzalez National |
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Affordable Housing Act (42 U.S.C. Section 12701 et seq.). |
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(b) A predevelopment loan issued under this section may not |
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be used to pay: |
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(1) project costs that exceed customary and reasonable |
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project preparation costs; or |
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(2) administrative expenses of a community housing |
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development organization. |
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SECTION 2. This Act takes effect September 1, 2017. |