86R3610 JG-F
 
  By: Watson S.B. No. 544
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the administration of federal funds under the
  Cranston-Gonzalez National Affordable Housing Act.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 2306.111(c), (c-1), and (c-2),
  Government Code, are amended to read as follows:
         (c)  In administering federal housing funds provided to the
  state under the Cranston-Gonzalez National Affordable Housing Act
  (42 U.S.C. Section 12701 et seq.), the department shall allocate 
  [expend]:
               (1)  95 percent of these funds for the benefit of
  non-participating small cities and rural areas that do not qualify
  to receive funds under the Cranston-Gonzalez National Affordable
  Housing Act directly from the United States Department of Housing
  and Urban Development, except that an amount not to exceed 15
  percent of the funds allocated under this subdivision may be
  allocated to participating jurisdictions as necessary to meet the
  requirements of federal law; and
               (2)  five percent of these funds for the benefit of
  persons with disabilities who live in any area of this state.
         (c-1)  Eligibility to apply for set-aside funds under
  Subsection (c) is determined by federal law [The following entities
  are eligible to apply for set-aside funds under Subsection (c):
               [(1)     nonprofit providers of affordable housing,
  including community housing development organizations; and
               [(2)  for-profit providers of affordable housing].
         (c-2)  In allocating set-aside funds under Subsection (c),
  the department:
               (1)  may not give preference to nonprofit providers of
  affordable housing, except as necessary to meet the requirements of 
  [required by] federal law; and
               (2)  shall allocate funds in accordance with any
  applicable spending plan required under federal law.
         SECTION 2.  The change in law made by this Act in amending
  Section 2306.111, Government Code, applies only to an application
  for financial assistance that is submitted to the Texas Department
  of Housing and Community Affairs on or after January 1, 2020.  An
  application for financial assistance that is submitted to the
  department before January 1, 2020, is governed by the law in effect
  immediately before the effective date of this Act, and the former
  law is continued in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2019.