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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of the workforce housing program by |
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the Texas Department of Housing and Community Affairs. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter K, Chapter 2306, Government Code, is |
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amended by adding Section 2306.2595 to read as follows: |
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Sec. 2306.2595. WORKFORCE HOUSING PROGRAM. (a) In this |
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section: |
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(1) "Fund" means the workforce housing fund. |
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(2) "Mezzanine real estate loan" has the meaning |
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assigned by Section 425.1185, Insurance Code. |
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(3) "Program" means the workforce housing program. |
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(b) The department shall establish: |
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(1) the workforce housing program to provide financial |
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assistance to developers of multifamily housing to facilitate the |
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construction and rehabilitation of eligible workforce housing |
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developments in this state; and |
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(2) a workforce housing advisory committee to assist |
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the department in implementing this section. |
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(c) Financial assistance may be awarded for the purposes |
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described by this section from the fund described by Subsection (f) |
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to developers in the form of low-interest loans offered below |
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market rate, which: |
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(1) must be structured as mezzanine real estate loans; |
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(2) must be set at a rate that is one percent higher |
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than the secured overnight financing rate published by the Federal |
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Reserve Bank of New York or its successor entity; and |
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(3) may not exceed 20 percent of the initial |
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construction or rehabilitation costs of the eligible development. |
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(d) To be eligible for the financial assistance received by |
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a developer under the program, a workforce housing development: |
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(1) must consist of new construction or a substantial |
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rehabilitation of an existing facility; |
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(2) must reserve at least 75 percent of the units in |
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the development for occupancy of individuals and families earning |
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not more than 120 percent of the area median income, adjusted for |
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family size; |
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(3) for an income-restricted unit, may not charge rent |
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in an amount that exceeds 30 percent of the monthly income |
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restriction described by Subdivision (2); and |
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(4) must maintain the affordability requirements |
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described by Subdivisions (2) and (3) for a period of not less than |
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20 years following the date of receipt of financial assistance |
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under this section. |
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(e) The department, in consultation with the workforce |
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housing advisory committee established under Subsection (b)(2), |
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shall adopt rules to implement the program, including rules that: |
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(1) provide criteria for determining which developers |
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and workforce housing developments may participate in the program; |
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and |
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(2) provide a scoring system to prioritize the |
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developments for which developers may use financial assistance |
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under the program. |
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(f) The workforce housing fund is a special account in the |
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state treasury. The fund consists of: |
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(1) money appropriated to the board for a purpose of |
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the fund; |
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(2) repayment of principal and interest from loans |
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made from the fund; |
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(3) money the board transfers to the fund from any |
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available source; |
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(4) depository interest allocable to the fund and |
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other investment returns on money in the fund; |
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(5) money from gifts, grants, or donations to the |
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fund; and |
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(6) any other fees or sources of revenue that the |
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legislature may dedicate for deposit to the fund. |
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(g) Financial assistance provided from the fund to a |
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developer for an eligible workforce housing development must be |
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spent by the recipient on the development not later than 36 months |
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after the date the assistance is received. |
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(h) Money provided from the fund that is not spent as |
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required by Subsection (g) must be returned to the department and |
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deposited to the credit of the fund. |
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SECTION 2. This Act takes effect September 1, 2025. |