89R10560 JAM-D

By: Goodwin H.B. No. 2425

A BILL TO BE ENTITLED

AN ACT

relating to the purpose of and programs administered by the Texas State Affordable Housing Corporation.

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

SECTION 1. Section 2306.553, Government Code, is amended to read as follows:

Sec. 2306.553. PURPOSES. (a) The public purpose of the corporation is to perform activities and services that the corporation's board of directors determines will promote the public health, safety, and welfare through the provision of adequate, safe, and sanitary housing primarily for individuals and families of low income, individuals and families of very low income, individuals and families of [and] extremely low income, and [for] persons who are eligible for loans under the home loan program provided by Section 2306.5621. The activities and services shall include engaging in mortgage banking activities and lending transactions and acquiring, holding, selling, or leasing real or personal property.

(b) The corporation's primary public purpose is to facilitate the provision of housing by issuing qualified 501(c)(3) bonds and qualified residential rental project bonds and by making affordable loans to individuals and families of low income, individuals and families of very low income, individuals and families of [and] extremely low income, and [to] persons who are eligible for loans under the home loan program provided by Section 2306.5621. The corporation may make first lien, single family purchase money mortgage loans for single family homes [only] to individuals and families of low, very low, and extremely low income only if the individual's or family's household income is not more than the greater of 60 percent of the median income for the state, as defined by the United States Department of Housing and Urban Development, or 60 percent of the area median family income, adjusted for family size, as defined by that department. The corporation may make loans for multifamily developments if:

(1) at least 40 percent of the units in a multifamily development are affordable to individuals and families with incomes at or below 60 percent of the median family income, adjusted for family size; or

(2) at least 20 percent of the units in a multifamily development are affordable to individuals and families with incomes at or below 50 percent of the median family income, adjusted for family size.

(c) To the extent reasonably practicable, the corporation shall use the services of banks, community banks, savings banks, thrifts, savings and loan associations, private mortgage companies, nonprofit organizations, and other lenders for the origination of all loans contemplated by this subchapter and assist the lenders in providing credit primarily to individuals and families of low income, individuals and families of very low income, individuals and families of [and] extremely low income, and persons who are eligible for loans under the home loan program provided by Section 2306.5621.

SECTION 2. Section 2306.555(d), Government Code, is amended to read as follows:

(d) All of the mortgage banking operations shall be dedicated to the furtherance of facilitating affordable housing finance primarily for the benefit of:

(1) individuals and families of low, very low, and extremely low income who, generally, are not afforded housing finance options through conventional lending channels; and

(2) persons who are eligible for loans under the home loan program provided by Section 2306.5621.

SECTION 3. Section 2306.5621(a), Government Code, is amended by amending Subdivision (2) and adding Subdivisions (17), (18), and (19) to read as follows:

(2) "Home" means a dwelling in this state in which a fire fighter, corrections officer, county jailer, public security officer, peace officer, municipal employee, nurse, social worker, professional educator, veteran, or person defined as emergency medical services personnel under this section intends to reside as the borrower's principal residence.

(17) "Municipal employee" means a permanent, full-time employee of a municipality.

(18) "Nurse" has the meaning assigned by Section 303.001, Occupations Code.

(19) "Social worker" has the meaning assigned by Section 505.002, Occupations Code.

SECTION 4. Sections 2306.5621(b), (c), (d), (f), and (h-1), Government Code, are amended to read as follows:

(b) The corporation shall establish a program to provide eligible persons [fire fighters, corrections officers, county jailers, public security officers, peace officers, emergency medical services personnel, professional educators, and veterans] with low-interest home mortgage loans.

(c) To be eligible for a loan under this section, at the time a person files an application for the loan, the person must:

(1) be a:

(A) fire fighter, corrections officer, county jailer, public security officer, peace officer, municipal employee, nurse, social worker, veteran, or person defined as emergency medical services personnel under this section; or

(B) professional educator who is employed by a school district or is an allied health or professional nursing program faculty member in this state;

(2) reside in this state; and

(3) have an income of not more than 140 [115] percent of area median family income, adjusted for family size, or the maximum amount permitted by Section 143(f), Internal Revenue Code of 1986, whichever is greater.

(d) The corporation may contract with other agencies of the state or with private entities to determine whether applicants qualify as fire fighters, corrections officers, county jailers, public security officers, peace officers, municipal employees, nurses, social workers, emergency medical services personnel, professional educators, or veterans under this section or otherwise to administer all or part of this section.

(f) The board of directors of the corporation shall adopt rules governing:

(1) the administration of the program;

(2) the making of loans under the program;

(3) the criteria for approving mortgage lenders;

(4) the use of insurance on the loans and the homes financed under the program, as considered appropriate by the board to provide additional security for the loans;

(5) the verification of occupancy of the home by the fire fighter, corrections officer, county jailer, public security officer, peace officer, municipal employee, nurse, social worker, professional educator, veteran, or person defined as emergency medical services personnel as the borrower's principal residence; and

(6) the terms of any contract made with any mortgage lender for processing, originating, servicing, or administering the loans.

(h-1) To fund home mortgage loans for eligible persons [fire fighters, corrections officers, county jailers, public security officers, peace officers, emergency medical services personnel, professional educators, and veterans] under this section, the corporation may use any proceeds received from the sale of bonds, notes, or other obligations issued under the home loan program provided by this section, regardless of any amendments to the eligibility standards for loans made under the program and regardless of when the corporation received the proceeds from those bonds, notes, or other obligations issued under the program.

SECTION 5. This Act takes effect September 1, 2025.