HLS 11RS-1001 ORIGINAL
Page 1 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2011
HOUSE BILL NO. 590
BY REPRESENTATIVES CARMODY AND TUCKER
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
HOUSING: Creates the Louisiana Housing Corporation and consolidates state housing
programs
AN ACT1
To enact Chapter 3-G or Title 40 of the Louisiana Revised Statutes of 1950, to be comprised2
of R.S. 40:600.86 through R.S. 600.110 and R.S. 42:1124.2, and to repeal R.S.3
36:769(J),Chapter 3-A of Title 40 of the Louisiana Revised Statutes of 1950,4
comprised of R.S. 40:600.1 through 600.25.1, and Chapter 3-E of Title 40 of the5
Louisiana Revised Statutes of 1950, comprised of R.S. 40:600.61 through 600.68,6
relative to housing authorities; to create the Louisiana Housing Corporation and7
provide for its powers, functions, and duties; to provide for the abolishment of8
certain programs or agencies, the consolidation of housing programs and the transfer9
of certain programs or agencies; to provide for the filing of certain financial10
disclosure statements relative to certain boards and commissions; to provide terms,11
conditions definitions, procedures, and effects; to provide for an effective date; and12
to provide for related matters.13
Be it enacted by the Legislature of Louisiana:14
Section 1. Chapter 3-G of Title 40 of the Louisiana Revised Statutes of 1950,15
comprised of R.S. 40:600.86 through 600.110 is hereby enacted to read as follows: 16
CHAPTER 3-G. LOUISIANA HOUSING CORPORATION ACT17
§600.86. Short title; findings; purpose18
A. This Chapter shall be known and may be referred to as the "Louisiana19
Housing Corporation Act."20 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 2 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
B. (1) The legislature hereby finds and declares that there exists in the state1
of Louisiana a serious shortage of decent, safe, and sanitary residential housing.2
(2) The legislature hereby finds and declares further that private enterprise3
and investment unaided has not been able to produce the needed construction of4
decent, safe, and sanitary residential housing at prices which persons and families5
of low or moderate income can afford, or to achieve the urgently needed6
rehabilitation of existing inadequate and substandard residential housing. The7
legislature further finds and declares that it is imperative that the supply of8
residential housing for persons and families of low or moderate income be increased9
substantially and that private enterprise and investors be encouraged to sponsor,10
build, and rehabilitate residential housing for such persons and families.11
(3) The legislature hereby finds and declares further that a major cause of the12
shortage of residential housing is the inadequate supply of funds available from13
private mortgage lenders for residential housing mortgage loans at interest rates14
within the financial means of persons and families of low or moderate income.15
(4) The legislature hereby finds and declares that the limited resources16
available directly to the state or its agencies may be more effectively and efficiently17
utilized if a single corporation is authorized and directed to coordinate housing18
programs administered by the state or its agencies and instrumentalities.19
(5) The legislature hereby finds and declares further that additional financial20
resources and technical skills must be available in local communities if the state is21
to mobilize the capacity of the private sector, including nonprofit community22
housing development organizations, to provide a more adequate supply of decent,23
safe, and sanitary housing.24
(6) The legislature hereby finds and declares further that state leadership is25
needed to achieve an adequate supply of affordable housing for all residents of the26
state and that such leadership shall be provided through the corporation.27
(7) The legislature hereby finds and declares further that this corporation28
should have the maximum amount of flexibility, responsibility, and discretion to29 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 3 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
assure that all the residents of the state shall have access to decent, safe, sanitary, and1
affordable housing; therefore, in carrying out the purposes of this Chapter, the2
corporation shall be presumed to possess broad powers and legal prerogatives which3
enable the corporation to carry out its purposes directly or indirectly through one or4
more nonprofit subsidiaries.5
§600.87. Definitions6
The following terms whenever used or referred to in this Chapter shall have7
the following meanings, unless the context clearly indicate otherwise:8
(1) "Corporation" means the Louisiana Housing Corporation created by this9
Chapter.10
(2) "Bonds" means the bonds, notes, renewal notes, refunding bonds, interim11
certificates, certificates of indebtedness, debentures, or other obligations or12
evidences of indebtedness authorized to be issued by the corporation pursuant to the13
provisions of this Chapter.14
(3) "Federal government" means the United States of America and any15
agency or instrumentality, corporate or otherwise, of the United States of America.16
(4) "Insured mortgage" means a mortgage loan for the acquisition,17
construction, rehabilitation or improvement of residential housing located within the18
state which is insured or guaranteed in whole or in part by the federal or state19
government, or any instrumentality or agency of the federal government or the state20
government, including the Louisiana Housing Corporation, or by a private mortgage21
insurance company, which insures the holder of the mortgage against financial loss.22
(5) "Lending institution" means any bank, bank or trust company, building23
and loan association, homestead, insurance company, investment banker, mortgage24
banker or company, pension or retirement fund, savings bank or savings and loan25
association which is authorized to do business in Louisiana.26
(6) "Mortgage" means a conventional mortgage evidencing a contract by27
which a person binds all or part of his immovable property in favor of another to28 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 4 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
secure the execution and enforcement of a contract, but without divesting oneself of1
the possession of said property.2
(7) "Mortgage loan" means a financial obligation secured by a mortgage.3
(8) "Persons or families of low or moderate income" means persons as4
defined in Section 143 of the Internal Revenue Code, 23 U.S.C. 143.5
(9) "Residential housing" means a specific work or improvement within the6
state undertaken primarily to provide decent, safe and sanitary dwelling7
accommodations for persons of low or moderate income, including but not limited8
to, the acquisition, construction, rehabilitation or improvement of land, buildings and9
improvements thereto in connection with apartments, condominiums, single family10
homes, townhouses, and nonhousing facilities appurtenant thereto.11
(10) "State" means the state of Louisiana.12
(11) "State agency" means any board, authority, agency, department,13
commission, public corporation, body corporate and politic or instrumentality of the14
state.15
(12) "Subsidiary" means any nonprofit corporation in which the board of16
directors of the corporation constitute a majority of the governing body of such17
entity.18
§600.88. Creation of the agency19
There is hereby created a public body corporate and politic known as the20
Louisiana Housing Corporation. The Louisiana Housing Corporation, hereinafter21
referred to as the agency or corporation, shall be a political subdivision and22
instrumentality of the state.23
§600.89. Organization of the agency24
A. The Louisiana Housing Corporation shall be governed by a board of25
directors composed of the following members:26
(1) One member shall be the state treasurer or his designee.27
(2) Six members shall be appointed by the governor, each of whom shall28
serve at the pleasure of the governor, shall be residents of the state, and shall have29 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 5 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
three to five years of experience in one or more of the fields of banking, mortgage,1
residential construction, real estate, nonprofit residential development, bonds, grants,2
or programs of the Department of Housing and Urban Development.3
(3) Each appointment by the governor shall be submitted to the Senate for4
confirmation.5
(4) Two additional members shall be appointed as follows:6
(a) One person appointed by the president of the Senate.7
(b) One person appointed by the speaker of the House of Representatives.8
B. In the event of a vacancy in the office of any member of the board of9
directors, the governor shall appoint a replacement to serve for the remainder of the10
unexpired term.11
C.(1) Each member of the board of directors shall hold office until the12
member resigns or is removed from office or until his successor has been appointed13
and has qualified.14
(2) No appointed member shall serve more than four years, unless the15
member has been re-appointed and re-confirmed.16
(3) Any appointed member shall be eligible for reappointment.17
(4) Any member of the board of directors of the corporation may be removed18
from office by the governor for incompetence, malfeasance, misconduct or willful19
neglect of duty, after reasonable notice and a public hearing, unless the same are20
expressly waived in writing.21
(5) Each member of the corporation appointed by the governor shall, before22
entering office, take the oath of office required of public officials to administer the23
duties of his office faithfully and impartially, and a record of such oath shall be filed24
with the secretary of state.25
D. Each member of the board of directors shall file financial disclosure26
statements pursuant to R.S. 42:1124.2.27
§600.89. Officers of the agency; duties; liability28
A. Executive director.29 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 6 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(1) Appointment.1
(a) An executive director of the corporation shall be appointed by the board2
subject to the approval of the governor. Any person nominated shall meet all the3
requirements for being a member of the board of directors. Should the governor4
refuse to confirm the appointment of the executive director, then the board shall5
submit another name.6
(b) The person whose appointment was refused shall not be renamed for7
confirmation for a period of two years.8
(c) The governor shall, within thirty days after the nomination of the9
executive director, either approve or reject the nomination.10
(2) Duties; requirements11
(a) The executive director of the corporation shall manage the daily affairs12
of the corporation and shall have such powers and duties as specified by this Chapter13
and by the board of directors.14
(b) The executive director shall not be a member of the board.15
(c) The executive director of the corporation shall serve at the pleasure of the16
board of directors.17
B. The executive director shall submit a staffing plan to the board for its18
approval. 19
C. No officer or employee shall be a member of the board.20
E. The powers of the board.21
(1) The powers of the corporation shall be vested in the board of directors22
thereof in office from time to time.23
(2) A majority of the members of the board currently serving shall constitute24
a quorum for the transaction of any business and for the exercise of any power or25
function of the agency. No vacant office shall be included in the determination of26
the number of member of the board necessary to establish a quorum.27
(3) No vacancy in the board shall impair the rights of a quorum of the board28
to exercise any power or function of the corporation.29 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 7 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(4) Action may be taken by the board upon an affirmative vote of a majority1
of the members present.2
F. The corporation shall be domiciled in Baton Rouge.3
G. The corporation shall adopt bylaws for its own governance, provided that4
such bylaws shall not conflict with any of the provisions of this Chapter or with any5
other law applicable to public bodies or agencies.6
H. No member of the board of directors shall be charged personally with any7
liability whatsoever by reason of any act or omission committed or suffered in the8
performance of his duties as member of the board or with respect to the operations9
of the corporation, but any act, liability for omission or obligation of a member in the10
performance of his duties or with respect to the operations of the corporation shall11
extend to the whole of the property of the corporation, or so much thereof as may be12
necessary or available to discharge such liability or obligation, and not otherwise.13
I. If any member of the board of directors, officer, or employee of the14
corporation shall have an interest, either direct or indirect, in any contract to which15
the corporation is, or is to be, a party, or in any lending institution requesting a loan16
from, or offering to sell insured mortgage loans to the corporation, such interest shall17
be disclosed to the corporation in writing and shall be set forth in the minutes of the18
corporation.19
J. Fiscal matters.20
(1) The corporation shall operate from self-generated revenues and shall be21
a budget unit of the state.22
(2) The corporation may receive state appropriations and the expenditure of23
such appropriated funds shall be subject to budgetary controls or authority of the24
Division of Administration.25
(3) The corporation shall establish an operating budget for the use of its26
revenues, subject to approval by a two-thirds vote of the board of directors of the27
corporation.28 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 8 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(4) The fiscal year for the corporation shall run concurrently with the fiscal1
year of the state.2
(5) Any budget adopted shall be effective for that fiscal year.3
(6) The corporation shall adhere to the requirements of R.S. 39:71, et seq.4
§600.90. Powers and duties of the corporation5
A. The corporation shall have the powers necessary or convenient to carry6
out and effectuate the purposes and provisions of this Chapter, including the7
following powers in addition to all other powers granted by other provisions of this8
Chapter:9
(1) The corporation may sue and be sued in its own name.10
(2) The corporation may establish a seal and alter the same at its pleasure.11
(3) The corporation may adopt bylaws for the internal organization and12
government of the corporation.13
(4) The corporation may make and execute contracts and all other14
instruments necessary or convenient for the exercise of its powers and functions15
under this Chapter with any federal or state governmental agency, public or private16
corporation, lending institution or other entity or person.17
(5) The corporation may accept donations of movable or immovable18
property from any source and receive appropriations from the legislature or financial19
assistance or subsidies from the federal or state government.20
(6) The corporation may, subject to the rights of holders of bonds of the21
corporation, renegotiate, refinance or foreclose on any mortgage or commence any22
action or protect or enforce any right or benefit conferred upon the corporation by23
any law, mortgage, contract or other agreement and bid for and purchase such24
property at any foreclosure or at any other sale or otherwise acquire or take25
possession of any such property; and in such event the agency may complete,26
administer, pay the principal of and interest on any obligation incurred in connection27
with such property, dispose of and otherwise deal with such property in such manner28 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 9 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
as may be necessary or desirable to protect the interest of the corporation or of1
holders of its bonds therein.2
(7) The corporation may procure or provide for the procurement of insurance3
or reinsurance against any loss in connection with its property or operations,4
including but not limited to, insurance, reinsurance or other guarantees from a5
federal or state governmental agency or private insurance company for the payment6
of any bonds issued by the corporation or bonds, notes, or any other obligations or7
evidences of indebtedness issued or made by any lending institution or other entity8
or person or insurance or reinsurance against loss with respect to mortgages or9
mortgage loans, including the power to pay premiums on such insurance or10
reinsurance.11
(8) The corporation may insure, reinsure, or cause to be insured or reinsured12
mortgage loans or mortgages on residential housing, to receive premiums on such13
insurance or reinsurance, and to establish reserves for losses, and to participate in the14
insurance or reinsurance of mortgage loans or mortgages on residential housing with15
the federal or state government.16
(9) The corporation may enter into agreements and contracts with persons17
and entities including, but not limited to, the federal or state government or its18
subdivisions, agencies or instrumentalities, or with mortgagors or lending19
institutions.20
(10) The corporation may undertake and carry out or authorize the21
completion of studies and analyses of housing conditions and needs within the state22
and ways of meeting such needs, to make such studies and analyses available to the23
public and to the housing industry, and to engage in research to disseminate24
information on housing, in coordination with the Division of Administration, office25
of community development.26
(11) The corporation may accept federal, state, or private financial or27
technical assistance; comply with any conditions for such assistance; and become a28 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 10 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
"co-insurer" with the United States Department of Housing and Urban Development1
or other appropriate federal agency for housing finance programs.2
(12) The corporation may collect fees and charges in connection with its3
loans, insurance, commitments, and services including, but not limited to,4
reimbursement of costs of issuing bonds, service charges, and insurance premiums.5
(13) The corporation may purchase secured loans or make lending6
commitments to purchase or sell construction or mortgage loans with respect to7
residential housing; make secured loans to lending institutions, including8
commitments therefor, with respect to the making of construction or mortgage loans9
by lending institutions for residential housing.10
(14) The corporation may acquire or contract to acquire from any person,11
firm, corporation, municipality, federal or state agency, by grant, purchase or12
otherwise, movable or immovable property or any interest therein; to own, hold,13
clear, improve, lease, construct, or rehabilitate, and to sell, invest, assign, exchange,14
transfer, convey, lease, mortgage, or otherwise dispose of or encumber the same,15
subject to the rights of holders of the bonds of the agency, at public or private sale,16
with or without public bidding.17
(15) The corporation may borrow money, issue bonds and provide for the18
rights of the lenders or holders thereof.19
(16) The corporation may, subject to the rights of holders of the bonds of the20
agency, consent to any modification with respect to the rate of interest, time payment21
of any installment of principal or interest, security or other term of any loan,22
contract, mortgage, mortgage loan or commitment therefor or agreement of any kind23
to which the corporation is a party or beneficiary.24
(17) The corporation may maintain an office, in addition to the office in25
Baton Rouge, at such place or places in the state as the corporation shall determine.26
(18) In carrying out its functions under this Chapter, the corporation shall27
accomplish the following:28 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 11 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(a) The corporation shall adopt rules and regulations which shall require fair,1
impartial, and equitable treatment of all lending institutions by the corporation.2
(b) Such rules and regulations shall insure that favoritism shall not be an3
element in the allocation of services by the corporation and that objective standards4
and criteria shall control and govern access to the allocation of services and functions5
authorized by this Chapter.6
(c) The board of commissioners of the corporation shall establish policy for7
housing finance for all units, divisions, agencies, public corporations, and8
instrumentalities of the state involved directly or indirectly in financing single family9
or multi-family housing.10
(19) The corporation may purchase secured loans or make lending11
commitments to purchase loans on multi-family housing projects under such12
guidelines, rules, and restrictions as shall be adopted by the corporation.13
(20) The corporation is authorized to sell residential loans purchased by it14
or by others either singly or in "packages" or pools to investors, including the15
retirement plans and trusts established for the employees of the state and its16
subdivisions, agencies, instrumentalities, and units of government which may be17
authorized to purchase residential first mortgages for investment purposes; however,18
all such mortgage loans purchased by the corporation for resale shall have been made19
on real estate in the state.20
(21) Notwithstanding any provisions of this Chapter or any other law to the21
contrary, specifically R.S. 12:202.1, the corporation may create or cause to be22
created such nonprofit corporations as may be necessary or expedient to participate23
in housing programs of the federal government or its agencies and instrumentalities.24
(22) Notwithstanding the provisions of this Chapter or any other law to the25
contrary, specifically R.S. 12:202.1, the corporation may create or cause to be26
created such nonprofit corporations as may be necessary or desirable to establish27
housing equity funds, the purpose of which shall be to direct the investment of28
capital primarily from Louisiana residents to residential housing developments29 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 12 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
qualifying under Section 42 of the Internal Revenue Code of 1986 for low income1
housing credits.2
(23) The corporation shall administer the federal grants for energy assistance3
and weatherization services for low-income persons.4
(24) The corporation shall administer the Louisiana Housing Trust Fund.5
(25) Notwithstanding any provisions of this Chapter or any other law to the6
contrary, the corporation is authorized to:7
(a) Sponsor a statewide community housing development organization to8
partnership with or to expand the capacity of local nonprofit organizations in limited9
resource communities and to develop and manage affordable residential rental10
housing in partnership with such local nonprofit organizations.11
(b) Originate and fund second mortgage loans to persons or households of12
very low, low, or moderate income as defined by the United States Department of13
Housing and Urban Development.14
(c) Finance directly pools of loans to public housing authorities as15
established under the Louisiana Housing Authorities Law, contained in R.S. 40:38116
et seq.17
(d) Establish one or more subsidiaries to carry out the purposes of this18
Chapter.19
(26)(a) Notwithstanding any provisions of law to the contrary, the20
corporation is authorized and required to assume administration or management of21
disaster recovery programs funded by the Department of Housing and Urban22
Development Community Development Block Grants as designated by the governor.23
(b) In the event that a state agency has contracts in place for the purpose of24
the implementation of such programs, the agency may transfer to the corporation the25
contracts or the portion of the contracts related to the programs transferred.26
(27) Notwithstanding any provisions of law to the contrary, the following27
programs in the Department of Children and Family Services shall be transferred to28
the agency:29 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 13 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(a) Louisiana Emergency Shelter Grants program.1
(b) Rapid Re-housing program.2
(28) The corporation shall have all the powers and duties in the Louisiana3
Housing Authorities Law pursuant to R.S. 40:381, et seq.4
B. The corporation may promulgate rules, regulations, or such other5
procedures for the coordination of all state-administered housing programs.6
Notwithstanding any provisions of this Chapter or any other provision of the law to7
the contrary, every department, agency, or instrumentality of the state administering8
any federal or state housing resource shall provide assistance to the corporation,9
including but not limited to, information, technical assistance, and personnel of such10
department, agency, or instrumentality, which is being or may be used to provide11
decent, safe, sanitary, and affordable housing to the residents of the state in order to12
accomplish the goals and to comply with the provisions of this Chapter.13
C. (1) The Louisiana Housing Corporation is authorized and directed to14
cooperate and coordinate with units of general local government, local public15
housing authorities, and other instrumentalities of local government, including but16
not limited to public trusts and local nonprofit housing corporations, in developing17
a comprehensive plan and housing strategy as required by the Department of18
Housing and Urban Development. Such plan shall be submitted to the House19
Committee on Municipal, Parochial and Cultural Affairs and the Senate Committee20
on Local and Municipal Affairs for review within thirty days of its completion.21
D.(1) The Louisiana Housing Corporation shall submit to the House22
Committee on Municipal, Parochial and Cultural Affairs and the Senate Committee23
on Local and Municipal Affairs each Comprehensive Housing Affordability Strategy24
(CHAS) and any amendment thereto prepared by or on behalf of the state and units25
of local government pursuant to 24 CFR Part 91 for review within thirty days of their26
completion.27
(2) Each CHAS shall contain a statement identifying the resources28
reasonably expected to be made available from the United States Department of29 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 14 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Housing and Urban Development, other federal or state and local governments for1
rental assistance, homeless assistance, production of new units, rehabilitation of2
existing units, acquisition of existing units and any other assistance provided to carry3
out the following purposes of the Cranston-Gonzales National Affordable Housing4
Act:5
(1) To help families not owning a home to save for a down payment for the6
purchase of a home.7
(2) To retain, wherever practical, as housing affordable to low-income8
families, those dwelling units produced for such purpose with federal assistance.9
(3) To extend and strengthen partnerships among all levels of government10
and the private sector, including for-profit and nonprofit organizations, in the11
production and operation of housing affordable to low-income and moderate-income12
families.13
(4) To expand and improve federal rental assistance for very low-income14
families.15
(5) To increase the supply of supportive housing, which combines structural16
features and services needed to enable persons with special needs to live with dignity17
and independence.18
§600.91. Purchase of mortgage loans 19
A. The corporation may purchase, or contract to purchase, insured mortgage20
loans with respect to residential housing from lending institutions, at such prices and21
upon such terms and conditions as it shall determine by rules or regulations adopted22
by the board of directors. All lending institutions are authorized to sell insured23
mortgage loans to the corporation in accordance with the provisions of this Chapter24
and the rules and regulations of the corporation.25
B. The corporation may require as a condition of purchase of any insured26
mortgage loan from a lending institution that the lending institution represent and27
warrant to the corporation all of the following: 28 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 15 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(1) The unpaid balance of the mortgage loan and the interest rate thereon1
have been accurately stated to the agency and that the interest rate is not usurious.2
(2) The amount of the unpaid principal balance of the mortgage loan is justly3
due and owing in accordance with the terms thereof. 4
(3) The lending institution has no notice of the existence of any5
counterclaim, offset or defense asserted by the mortgagor or his successor in interest.6
(4) The mortgage loan is evidenced by a note and a mortgage which has been7
properly recorded in the parish in which the immovable property is situated. 8
(5) The mortgage constitutes a valid first lien on the immovable property9
described to the agency, subject to property taxes not yet due, installments of10
assessments not yet due, and such servitudes, encumbrances or restrictions which do11
not adversely affect to a material degree the use or value of the immovable property12
or the improvements thereon. 13
(6) The mortgage loan when made was lawful under federal or state law, or14
both, whichever governed the making of the loan, and would be lawful on the date15
of purchase by the agency if made by the lending institution on that date in the16
amount of the unpaid principal balance.17
(7) The mortgagor is not now in default in the payment of any installment18
of principal or interest, escrow funds, property taxes or otherwise in the performance19
of his obligations under the mortgage loan documents and has not to the knowledge20
of the lending institution been in default in the performance of any such obligation21
for a period of longer than sixty days during the life of the mortgage.22
(8) The improvements to the mortgaged property are covered by a valid and23
current policy of insurance, in full force and effect, issued by an insurance company24
authorized to issue such policies in the state and providing fire and extended25
coverage in an amount not less than the outstanding principal balance of the26
mortgage loan or the maximum insurable value of the mortgaged property,27
whichever is greater.28 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 16 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(9) The mortgage loan meets the prevailing investment quality standards for1
mortgage loans of that type in the state and is an insured mortgage loan.2
C. A lending institution shall be liable to the corporation for any damages3
suffered by the corporation by reason of the untruth of any representation or the4
breach of any warranty and, in the event that any representation shall prove to be5
untrue when made or in the event of any breach of warranty, the lending institution6
at the option of the agency shall repurchase the mortgage loan for the original7
purchase price, adjusted for amounts subsequently paid thereon and for damages8
incurred by the corporation, as the corporation may determine.9
D. The corporation may require the recording of an assignment of any10
mortgage loan or mortgage purchased by it from a lending institution. The11
corporation shall not be required to inspect or take possession of the mortgage loan12
documents if the lending institution from which the mortgage loan is purchased by13
the corporation shall enter into a contract with the corporation to service such14
mortgage loan and to account to the corporation regarding such mortgage loan.15
E. If the corporation purchases a mortgage loan from a lending institution,16
the corporation may contract with that or another lending institution to act as17
servicing agent for the corporation for the collection of mortgage loan payments18
from the mortgagor and for the exercise of the rights and the discharge of the19
responsibilities provided for in the mortgage loan documents and federal and state20
law.21
F. To the extent that any provisions of this Section may be inconsistent with22
any provision of law of the state governing lending institutions, the provisions of this23
Section shall control.24
G. Notwithstanding anything in this Chapter or in any other law to the25
contrary, the corporation may directly fund insured mortgage loans in connection26
with a federal program if benefits provided by such program would not otherwise be27
made available within the state.28
§600.92. Loans to lending institutions 29 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 17 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
A. (1) The corporation may make, or contract to make, secured loans to1
lending institutions at such interest rates, terms and conditions as it shall determine2
by rules or regulations adopted by the board of directors.3
(2)All lending institutions are authorized to borrow funds from the4
corporation in accordance with the provisions of this Chapter and the rules and5
regulations of the corporation.6
(3) The corporation shall require that the proceeds of its loans to lending7
institutions or an equivalent amount shall be used by such lending institutions to8
make mortgage loans with respect to residential housing located within the state,9
subject to such terms and conditions as the corporation may prescribe.10
B. The corporation shall require that each lending institution which is the11
recipient of a loan pursuant to this Section shall issue and deliver to the corporation12
an evidence of its indebtedness to the corporation, which shall constitute a general13
obligation of such lending institution and shall bear such date or dates, shall mature14
at such time or times, shall be subject to such prepayment, and shall contain such15
other provisions consistent with this Section as the corporation shall determine.16
C. Notwithstanding any other provisions of this Section to the contrary, the17
interest rate or rates and other terms of such loans to lending institutions made from18
the proceeds of any issue of bonds of the corporation shall be at least sufficient to19
assure the payment of said bonds and the interest thereon as the bonds become due.20
D. The corporation shall require that loans made to lending institutions21
pursuant to this Section shall be additionally secured as to payment of both principal22
and interest by a pledge of collateral security in such amounts and consisting of such23
obligations, securities or mortgages as the corporation shall determine to be24
necessary to assure the payment of such loans and the interest thereon as the same25
become due.26
E. (1) The corporation may require that collateral for loans to lending27
institutions be deposited with a bank, trust company or other financial institution28 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 18 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
acceptable to the corporation located either within or outside the state as designated1
by the corporation.2
(2) In the absence of such requirement, a lending institution that is the3
recipient of a loan from the corporation shall enter into an agreement with the4
corporation containing such provisions as the corporation shall deem necessary or5
desirable to adequately identify and maintain such collateral, to service such6
collateral, and to require that such lending institution shall hold such collateral as7
agent for the corporation and shall be accountable to the corporation as the trustee8
of an express trust for the application and disposition thereof and the income9
therefrom solely to the uses and purposes in accordance with the provisions of such10
agreement.11
(3) A copy of each such agreement and any revisions or supplements thereto12
shall be filed with the secretary of state, and no further filing or other action under13
any other law of the state shall be required to perfect the security interest of the14
corporation in such collateral or any additions thereto or substitutions therefor, and15
the lien and trust for the benefit of the corporation so created shall be binding from16
and after the time made against all parties having claims of any kind in tort, contract,17
or otherwise against such lending institution.18
(4) The corporation may also establish such additional requirements as it19
shall deem necessary with respect to the pledging, assigning, setting aside or holding20
of such collateral and the making of substitutions therefor or additions thereto and21
the disposition of income and receipts therefrom.22
F. The corporation shall require lending institutions that are the recipients23
of loans from the corporation to submit evidence satisfactory to the agency that the24
lending institution has used the proceeds of such loans by the corporation, or any25
equivalent amount, to make mortgage loans with respect to residential housing and26
that the lending institution has complied with the terms and conditions of such loans27
as prescribed by the corporation. In connection therewith, the corporation, through28 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 19 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
its employees or agents, may inspect the books and records of such lending1
institution.2
G. The corporation may require as a condition of any loans to lending3
institutions such representations and warranties as it shall determine to be necessary4
or desirable to service such loans and implement the provisions of this Section.5
H. Subject to the rights of holders of bonds of the agency, the corporation6
may collect, enforce the collection of, and foreclose on any collateral securing its7
loans to lending institutions and acquire or take possession of such collateral and sell8
the same at private or public sale, with or without public bidding, and otherwise deal9
with such collateral as may be necessary to protect the interest of the corporation10
therein.11
I. To the extent that any provisions of this Section may be inconsistent with12
any provision of the law of the state governing lending institutions, the provisions13
of this Section shall control.14
§600.93. Bonds of the corporation15
A. The agency is hereby authorized and empowered to issue from time to16
time bonds, notes, renewal notes, refunding bonds, interim certificates, certificates17
of indebtedness, debentures, or other obligations or evidences of indebtedness18
(hereinafter referred to collectively as "bonds") whether the interest thereon is19
subject to taxation under the Internal Revenue Code of 1986 as now enacted or20
subsequently amended or is exempt therefrom to provide funds for and to fulfill and21
achieve its authorized public functions or corporate purposes as set forth in this22
Chapter including but not limited to the following purposes:23
(1) The purchase of insured mortgage loans from lending institutions.24
(2) The making of secured loans to lending institutions.25
(3) For construction of residential buildings.26
(4) For the purchase of residential loans previously made and secured by first27
mortgages and for the purchase of securities fully collateralized by first mortgages28
on residential housing.29 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 20 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(5) For the purchase of "pre-packaged" residential first mortgage loans for1
investment or resale.2
(6) For the payment of interest on bonds of the corporation, the3
establishment of reserves to secure such bonds, the establishment of reserves with4
respect to the insurance of mortgage loans for residential housing.5
(7) For all other expenditures of the corporation incident to and necessary6
or convenient to carry out its public functions or corporate purposes. 7
B. Except as may otherwise be provided by the corporation, all bonds issued8
by the agency shall be negotiable instruments and may be general obligations of the9
agency, secured by the full faith and credit of the agency and payable out of any10
money, assets or revenues of the agency or from any other sources whatsoever that11
may be available to the agency.12
C. The bonds of the corporation shall be solely the obligations of the13
corporation. In no event shall any bonds of the corporation constitute an obligation,14
either general or special, of the state, any municipality or any other political15
subdivision of the state or constitute or give rise to a pecuniary liability of the state,16
any municipality or any other political subdivision of the state; nor shall the agency17
have the power to pledge the general credit or taxing power of the state, any18
municipality or any other political subdivision of the state.19
D. Bonds shall be authorized, issued and sold by a resolution or resolutions20
of the agency adopted as provided in this Chapter. Such bonds may be of such21
series, bear such date or dates, mature at such time or times, bear interest at such rate22
or rates, payable at such time or times, be in such denominations, be sold at such23
price or prices, at public or private negotiated sale, after advertisement as is provided24
for in R.S. 39:1421 through R.S. 39:1427, be in such form, either in coupon form,25
registered as to principal only or fully registered without coupons, carry such26
registration and exchangeability privileges, be payable at such place or places, be27
subject to such terms of redemption, and be entitled to such priorities on the income,28
revenue and receipts of, or available to, the agency as may be provided by the agency29 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 21 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
in the resolution or resolutions providing for the issuance and sale of the bonds of the1
agency.2
E. The bonds of the agency shall be signed by such commissioners or3
officers of the agency, by either manual or facsimile signatures, as shall be4
determined by resolution or resolutions of the agency, and shall have impressed or5
imprinted thereon the seal of the agency, or a facsimile thereof. The coupons6
attached to coupon bonds of the agency shall bear the facsimile signature of such7
commissioner or officer of the agency as shall be determined by resolution or8
resolutions of the agency.9
F. Any bonds of the agency may be validly issued, sold and delivered,10
notwithstanding that one or more of the commissioners or officers of the agency11
signing such bonds, or whose facsimile signature or signatures may be on the bonds12
or on coupons shall have ceased to be such commissioner or officer of the agency at13
the time such bonds shall actually have been delivered.14
G. Bonds of the agency may be sold in such manner and from time to time15
as may be determined by the agency to be most beneficial, and the agency may pay16
all expenses, premiums, or commissions which it may deem necessary or17
advantageous in connection with the issuance and sale thereof, subject to the18
provisions of this Chapter.19
H. Bonds of the agency may be issued under and subject to such terms,20
covenants or conditions, consistent with this Chapter, as may be determined by21
resolution or resolutions of the agency to be necessary or desirable, including, but22
not limited to all of the following:23
(1) The establishment of a trust indenture or indentures by and between the24
agency and a corporate trustee, which may be any bank or trust company having the25
powers of a trust company, located within or without the state, that is acceptable to26
the agency.27
(a) Such trust indenture may provide for the pledging or assigning of any28
assets or income from assets to which or in which the agency has any rights or29 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 22 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
interest, and may further provide for such other rights and remedies exercisable by1
the trustee as may be proper for the protection of the holders of the bonds of the2
agency, and not otherwise in violation of law.3
(b) Such agreement may provide for the restriction of the rights of any4
individual holder of bonds of the agency.5
(c) Such trust indenture may provide that all expenses incurred in carrying6
out the provisions of such trust indenture may be treated as a part of the cost of7
operation of the agency.8
(d) The trust indenture may contain any further provisions which are9
reasonable to delineate further the respective rights, duties, safeguards,10
responsibilities and liabilities of the agency.11
(2) The pledge or creation of a lien, to the extent provided by resolution or12
resolutions of the agency, on all or any part of the money, assets or revenues of the13
agency or on any money or assets held by others for the benefit of the agency to14
secure the payment of such bonds. 15
(3) Provisions for the custody, collection, securing, investment and payment16
of any money of or due to the agency. 17
(4) The creation or funding of reserves or sinking funds and the regulation18
or disposition thereof.19
(5) Limitations on the purposes to which the proceeds of the sale of any issue20
of bonds then or thereafter to be issued may be applied. 21
(6) Limitations on the issuance of additional bonds and on the refunding of22
outstanding or other bonds.23
(7) The procedure, if any, by which the terms of any contract with the24
holders of bonds of the agency may be amended or abrogated, the amount of bonds25
the holders of which must consent thereto, and the manner in which such consent26
may be given.27
(8) The creation of special funds into which any money of the agency may28
be deposited.29 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 23 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(9) The vesting in a trustee or trustees of such properties, rights, powers and1
duties in trust as the agency may by resolution determine. 2
(10) The definition of the acts or omissions which shall constitute a default3
in the obligations and duties of the agency and providing for the rights and remedies4
of the holders of bonds of the agency in the event of such default in accordance with5
the provisions of the Chapter and the general laws of the state.6
(11) Any other matters of like or different character, which in any way affect7
the security and protection of the bonds and the rights of the holders thereof.8
I. The agency is hereby granted the total allocation for qualified mortgage9
bonds for state housing finance agency issuers pursuant to the federal Mortgage10
Subsidy Bond Tax Act of 1980, 26 U.S.C. 103A. Any allocation made pursuant to11
the this act to issuers other than state housing finance agency issues which have not12
been sold by September 1 of each year may be allocated, in whole or in part, by the13
governor of the state of Louisiana to the agency.14
§600.94. Statutory pledge 15
Any pledge made by the agency shall be valid and binding from the time16
when the pledge is made. The money, assets or revenues of the agency so pledged17
and thereafter received by the agency shall immediately be subject to the lien of such18
pledge without any physical delivery thereof or further act, and the lien of any such19
pledge shall be valid and binding as against all parties having claims of any kind in20
tort, contract, or otherwise against the agency, irrespective of whether such parties21
have notice thereof. Neither the resolution or any other instrument by which a22
pledge is created need be recorded or filed in order to establish and perfect a lien or23
security interest in the property so pledged.24
§600.95. Refunding bonds 25
A. Subject to the rights of the holders of the bonds of the agency, the agency26
is hereby authorized and empowered to issue from time to time its bonds for the27
purpose of refunding any bonds of the agency then outstanding, together with the28 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 24 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
payment of any redemption premiums thereon and interest accrued or to accrue to1
the date of redemption of such outstanding bonds.2
B. All such refunding bonds of the agency shall be issued, sold or3
exchanged, and delivered, shall be secured, and shall be subject to the provisions of4
this Chapter in the same manner and to the same extent as any other bonds issued by5
the agency pursuant to this Chapter, unless otherwise determined by resolution of the6
agency.7
C. Refunding bonds issued by the agency as herein provided may be sold or8
exchanged for outstanding bonds of the agency and, if sold, the proceeds thereof may9
be applied, in addition to any other authorized purposes, to the purchase, redemption10
or payment of such outstanding bonds.11
D. Pending the application of the proceeds of any such refunding bonds, with12
any other available funds, to the payment of the principal, accrued interest, and any13
redemption premiums, if any, on the bonds being refunded, and, if so provided or14
permitted in the trust indenture or the resolution of the agency authorizing the15
issuance of such refunding bonds, to the payment of any interest on such refunding16
bonds and any expenses in connection with such refunding, such proceeds may be17
invested in direct obligations of, or obligations the principal and interest on which18
are unconditionally guaranteed by, the United States which shall mature or which19
shall be subject to redemption by the holders thereof, at the option of such holders,20
not later than the respective dates when the proceeds, together with the interest21
accruing thereon, will be required for the purposes intended. 22
§600.96. Liability of commissioners, officers or employees of the agency 23
The commissioners, officers or employees of the agency, or any other person24
executing the bonds of the agency shall not be personally liable on the bonds or be25
subject to any personal liability or accountability by reason of the issuance, sale or26
delivery thereof while acting within the scope of their authority.27
§600.97. Purchase of bonds by corporation 28 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 25 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Subject to the rights of holders of bonds, the agency shall have the power out1
of any funds available therefor, to purchase bonds of the agency, which shall2
thereupon be cancelled, at a price not exceeding either of the following:3
(1) If the bonds are then subject to optional redemption, the optional4
redemption price then applicable plus accrued interest to the next interest payment5
date thereon.6
(2) If the bonds are not then subject to optional redemption, the optional7
redemption price applicable on the first date after such purchase upon which the8
notes or bonds become subject to optional redemption plus accrued interest to such9
date.10
§600.98. Approval of issuance of bonds by State Bond Commission 11
The approval of the State Bond Commission shall be obtained prior to the12
issuance of any bonds of the agency. No notice to, or consent or approval by any13
other governmental body or public officer shall be required as a prerequisite to the14
issuance, sale or delivery of any bonds of the agency, or to the making of any loans15
by the agency to lending institutions, or to the purchase of insured mortgage loans16
by the agency from lending institutions, or to the insurance by the agency of any17
mortgage loan with respect to residential housing, or to the exercise of any other18
public function or corporate power of the agency, except as is expressly provided in19
this Chapter.20
§600.99. Exemption from taxes 21
A. It is hereby determined that the creation of the agency and the carrying22
out of its public functions and corporate purposes is, in all respects, a public and23
governmental purpose for the benefit of the people of the state, and for the24
improvement of their health, safety, welfare, comfort and security and that said25
functions and purposes are public purposes and that the agency will be performing26
an essential governmental function in the exercise of the powers conferred upon it27
by this Chapter.28 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 26 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
B. The money, assets, revenues and operations of the agency shall be exempt1
from all taxation by the state or any of its political subdivisions.2
C. The agency shall not be required to pay any recording fee or transfer tax3
of any kind on account of instruments recorded by it or on its behalf.4
D. All bonds, notes, renewal notes, refunding bonds, interim certificates,5
certificates of indebtedness, debentures or other obligations or evidences of6
indebtedness, hereinafter collectively referred to as "bonds", authorized to be issued7
by the agency pursuant to the provisions of this Chapter, together with interest8
thereon, income therefrom, and gain upon the sale thereof shall be exempt from all9
state and local taxes.10
§600.100. Covenant of state11
In consideration of the acceptance of and payment for the bonds of the12
agency by the holders thereof, the state does hereby pledge to and agree with the13
holders of any bonds of the agency issued pursuant to the provisions of this Chapter,14
that the state will not impair, limit or alter the rights hereby vested in the agency to15
fulfill the terms of any agreements made with the holders of the bonds of the agency,16
or in any way impair the rights or remedies of such holders thereof, until such bonds,17
together with the interest thereon, with interest on any unpaid installments of18
interest, and all costs and expenses in connection with any action or proceedings by19
or on behalf of such holders, are fully met and discharged. The agency is authorized20
to include this pledge and agreement of the state in any agreement with the holders21
of bonds of the agency.22
§600.101. Trust funds23
All monies received by the agency pursuant to the provisions of this Chapter24
shall be deemed to be trust funds, to be held and applied solely to or for the public25
functions and corporate purposes of the agency.26
§600.102. Bonds as legal investment and security for public deposits 27
A. The state and all public officers, any parish or municipality, or other28
subdivision or instrumentality of the state, any bank, banker, trust company, savings29 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 27 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
bank and institution, building and loan association, savings and loan association,1
investment company or any person carrying on a banking or investment business,2
any insurance company or business, insurance associations and any person carrying3
on an insurance business, and any executor, administrator, curator, trustee and other4
fiduciary, and retirement system or pension fund may legally invest any sinking5
funds, monies, or other funds belonging to them or within their control in any bonds6
issued by the agency pursuant to the provisions of this Chapter, and such bonds shall7
be authorized security for all public deposits.8
B. It is the purpose of this Section to authorize such persons, firms,9
corporations, associations, political subdivisions and officers, or other entities, public10
or private, to use any funds owned or controlled by them, including, but not limited11
to, sinking, insurance, investment, retirement, compensation, pension and trust funds,12
and funds held on deposit, for the purchase of any such bonds of the agency, and that13
any such bonds shall be authorized security for all public deposits. However,14
nothing contained in this Section with regard to legal investments or security for15
public deposits shall be construed as relieving any such person, firm or corporation16
or other entity from any duty of exercising reasonable care in selecting securities.17
§600.103. Accounts and audits18
A. Subject to the provisions of any contract with the holders of its bonds, the19
agency shall establish a system of accounts.20
B. The Legislative Auditor shall prepare an annual audit of the accounts and21
operations of the agency.22
C. The agency shall submit to the governor and to both houses of the23
legislature an annual report on the operations of the agency, together with a copy of24
the report of every audit of the books and accounts of the agency, within sixty days25
from the receipt thereof by the agency.26
§600.104. Cooperation of state agencies 27 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 28 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
All state officers and agencies are authorized to render such services to the1
agency within their respective functions as may be requested by the agency. §600.105.2
Suits to determine validity of bonds 3
Any suit to determine the validity of bonds of the agency shall be brought4
only in accordance with R.S. 13:5121 et seq.5
§600.106. State appropriations or grants 6
The state may make grants or appropriations of money or property to the7
agency for the purpose of enabling it to carry out its public functions and corporate8
purposes.9
§600.107. Termination of agency10
A. The agency and its corporate and public existence shall continue until11
terminated by law, provided that no such law shall take effect so long as the agency12
shall have bonds outstanding, unless adequate provision has been made for the13
payment thereof.14
B. Upon termination of the existence of the agency, all of its rights, money,15
assets and revenues in excess of its obligations shall pass to and be vested in the16
state.17
§600.108. Construction of Chapter 18
This Chapter being necessary for the welfare of the state and its residents19
shall be liberally construed to effect the purposes thereof.20
§600.109. Fees21
A. The corporation may charge application fees, processing fees, closing22
costs, and mortgage and title insurance fees.23
B. The corporation shall in accordance with the Administrative Procedure24
Act, R.S. 49:950, et seq., promulgate the schedule of fees to be charged by the25
corporation in connection with the programs administered by it. Such schedule shall26
be submitted for approval to the Joint Legislative Committee on the Budget.27
§600.110. Mortgage foreclosure counseling28 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 29 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
A.(1) The Louisiana Housing Corporation, hereinafter referred to as the1
agency, may establish a program to provide free mortgage foreclosure counseling2
and education to homeowners who have defaulted or are in danger of defaulting on3
the mortgages on their homes.4
(2) If the agency establishes such a program, the agency may work with the5
office of financial institutions and the office of financial institutions shall cooperate6
with the agency to effectuate the purposes of this Section.7
(3) The agency may enter into an agreement with any public, private, or8
nonprofit entity to carry out any part of the mortgage foreclosure counseling and9
education program.10
(4) The program may include a central toll-free telephone number that11
homeowners may call to receive mortgage foreclosure counseling and education.12
(5) The agency may award grants for the training of counselors who will13
provide mortgage foreclosure counseling and education from funds14
appropriated by the legislature for that purpose or any other funding available15
for that purpose.16
(6) The agency may establish standards for the certification of17
counselors who will provide mortgage foreclosure counseling and education.18
B. The program shall be funded through self-generated funds of the19
agency; however, the agency may solicit contributions and grants from the20
private sector, nonprofit entities, and the federal government to assist in21
carrying out the purposes of this Section.22
C. The agency shall annually submit a report to the Senate Committee23
on Commerce, Consumer Protection and International Affairs and the House24
Committee on Commerce on the operation of the mortgage foreclosure25
counseling and education program and shall include a summary of the26
mortgage foreclosure rates and trends in Louisiana and the United States.27
Section 2. R.S. 42:1124.2 is hereby amended and enacted to read as follows: 28 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 30 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
§1124.2. Financial disclosure; certain elected officials; members of certain1
boards and commissions; ethics administrator2
A. Each of the following, except a person who is required to file a3
financial statement pursuant to R.S. 42:1124, shall annually file a financial4
statement as provided in this Section:5
* * *6
(5) Each member of the board of directors of the Louisiana Housing7
Corporation.8
* * *9
Section 3. R.S. 36:769(J), Chapter 3-A. of Title 40 of the Louisiana Revised Statutes10
of 1950, comprised of R.S. 40:600.1 through 600.25.1 and Chapter 3-E. of Title 40 of the11
Louisiana Revised Statutes of 1950, comprised of R.S. 40:600.61 through 600.68 are hereby12
repealed in their entirety.13
Section 4. A. On the effective date of this Act, the Louisiana Housing Finance14
Agency and the Road Home Corporation, also known as the Louisiana Land Trust, herein15
after collectively referred to as the "transferred agencies", shall be abolished and their16
functions transferred to the Louisiana Housing Corporation created by this Act. The creation17
of the Louisiana Housing Corporation under this Act shall not affect or impair in any manner18
contract rights enjoyed by the holders of any outstanding bonds of the transferred agencies19
to the extent required by such contract rights on the property subject to the payment of20
principal of and interest on such bonds shall continue to be levied provided, however, the21
Louisiana Housing Corporation shall assume all indebtedness of the transferred agencies.22
B. The legislature hereby specifically states that this Act is in no way and to no23
extent intended to nor shall it be construed in any manner which will impair the contractual24
or other obligations of the transferred agencies or of the state of Louisiana. It is hereby25
specifically provided that all obligations of the abolished agencies, whose powers, duties,26
functions, and responsibilities are transferred in accordance with this Act, hereafter shall be27
deemed to be the obligations of the Louisiana Housing Corporation and of its commissioners28
or officers to the same extent as if originally made by them. In like manner, and in order to29 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 31 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
prevent any violation of the provisions, terms, or conditions of any gift, donation, deed, will,1
trust, or other instrument or disposition by which property of any kind has been vested in the2
abolished agencies, or diversion from the purposes for which such property was thus vested,3
it is hereby specifically provided that each such instrument or disposition hereafter shall be4
deemed to have been vested in the Louisiana Housing Corporation and its commissioners5
or officers in the same manner and to the same extent as if originally so done.6
C. The Louisiana Housing Corporation and its commissioners or officers shall be the7
successor in every way to each such agency or program in which transfer is provided for in8
this Act, including all of the obligations and debts of each such agency. All funds heretofore9
dedicated by or under authority of the constitution and laws of this state or any of its10
subdivisions to the payment of any bonds issued for construction or improvements for any11
institution or facility under the control of any such agency shall continue to be collected and12
dedicated to the payment of those bonds, unless under the constitution and laws such bonds13
are now being paid out of moneys in the Bond Security and Redemption Fund. In like14
manner, all other dedications and allocations of revenues and sources of revenues heretofore15
made, which are constitutional under the Louisiana Constitution of 1974, shall continue,16
until otherwise hereafter provided by the constitution, in the same manner, to the same17
extent, and for the same purposes as were provided prior to the enactment of this Act. 18
D. This Act shall not be construed or applied in any way which will prevent full19
compliance by the state, or any department, office, or agency thereof, with the requirements20
of any Act of the Congress of the United States or any regulation made thereunder by which21
federal aid or other federal assistance has been or hereafter is made available to this state,22
or any department, office, agency, or subdivision thereof, anything contained in this Act to23
the contrary notwithstanding, and such compliance hereafter shall be accomplished by the24
commissioners or officers insofar as such compliance affects the transferred agencies in25
accordance with the provisions of this Act. 26
E. On the effective date of this Act, the transferred agencies shall be abolished and27
the Louisiana Housing Corporation shall be created. All unfinished business, references in28
laws and documents, employe es, property, obligations, and books and records of the29 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 32 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
transferred agencies shall be transferred as provided in this Act. Upon the abolition of the1
transferred agencies, any pending or unfinished business shall be taken over and be2
completed by the Louisiana Housing Corporation with the same power and authorization as3
that of the transferred agencies and the Louisiana Housing Corporation shall be the successor4
in every way to the transferred agencies for the purpose of completing such business. Any5
reference in laws and documents to the transferred agencies shall be deemed to apply to the6
Louisiana Housing Corporation. Any legal proceeding to which the transferred agencies is7
a party and which is filed, initiated, or pending before any court on the effective date of this8
Act, and all documents involved in or affected by said legal proceeding, shall retain their9
effectiveness and shall be continued in the name of the Louisiana Housing Corporation. All10
further legal proceedings and documents in the continuation, disposition, and enforcement11
of such legal proceeding shall be in the name of the Louisiana Housing Corporation, and the12
Louisiana Housing Corporation shall be substituted for the transferred agencies without13
necessity for amendment of any document. This Act shall not be construed so as to impair14
the effectiveness of any rule or policy of the transferred agencies and any such rule or policy15
shall remain effective as provided therein or until changed as otherwise provided by law.16
This Act shall not be construed so as to impair the contractual or other obligations of the17
transferred agencies or of the state of Louisiana. All obligations of the transferred agencies18
shall be the obligations of the Louisiana Housing Corporation. The Louisiana Housing19
Corporation shall be the successor in every way to the transferred agencies, including all of20
its obligations and debts. All dedications and allocations of revenues and sources of revenues21
heretofore made shall continue in the same manner, to the same extent, and for the same22
purposes as were provided prior to the enactment of this Act, unless and until other provision23
is made therefor. This Act shall not be construed or applied in any way which will prevent24
full compliance by the state, or any department, office, or agency thereof, with the25
requirements of any Act of the Congress of the United States or any regulation made26
thereunder by which federal aid or other federal assistance has been or hereafter is made27
available. All books, papers, records, money, actions, and other property of every kind,28
movable and immovable, real and personal, heretofore possessed, controlled, or used by the29 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 33 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
transferred agencies is hereby transferred to the Louisiana Housing Corporation. All1
employees heretofore engaged in the performance of duties of the transferred agencies,2
insofar as practicable and necessary are hereby transferred to the Louisiana Housing3
Corporation and shall continue to perform the duties heretofore performed, subject to4
applicable state civil service laws, rules, and regulations and other applicable laws. Subject5
to such laws, positions in the unclassified service shall remain in the unclassified service.6
Section 5. A. In order to effect an orderly transfer of the programs, powers, duties,7
responsibilities, and functions as provided in this Act, the procedures to be followed for such8
purposes shall be set forth in this Section.9
B. No later than six months from the effective date of this Act, the board of directors10
of the Louisiana Housing Corporation shall be appointed as provided for in this Act.11
C. The full implementation of the transfer of programs, powers, duties,12
responsibilities, and functions necessary to implement the provisions of this Act shall be13
effective not later than six months from the effective date of this Act.14
D.(1) On or after the effective date of this Act, the commissioner of administration,15
the president of the Senate or his designee, and speaker of the House of Representatives or16
his designee shall form a transition committee that shall be terminated no more than six17
months from the effective date of this Act. 18
(2) The transition committee shall determine such workable transition plans for the19
transfer of programs, powers, duties, responsibilities, and functions as shall be necessary to20
implement the provisions of this Act. Such plans shall include detailed procedures for such21
realignment, distribution, assignment, consolidation, and coordination of agencies, programs22
and functions designated within this Act. Such plans shall include detailed procedures for23
the transfer and utilization of positions, personnel, funds, office space, facilities, equipment,24
and such other detail as is necessary to effectuate the purpose of this Act. The transition25
committee shall have the authority to establish subcommittees to report and make26
recommendations with respect to transition plans and their implementation. 27
Section 6. The Louisiana State Law Institute is hereby directed to change all28
references to the "Louisiana Housing Finance Agency", the "Road Home Corporation" or29 HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 34 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
the "Louisiana Land Trust" to the "Louisiana Housing Corporation" throughout the1
Louisiana Revised Statute of 1950.2
Section 7. This Act shall become effective upon signature by the governor or, if not3
signed by the governor, upon expiration of the time for bills to become law without signature4
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If5
vetoed by the governor and subsequently approved by the legislature, this Act shall become6
effective on the day following such approval.7
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Carmody HB No. 590
Present law includes provisions regarding the Louisiana Housing Finance Authority, the
Road Home Corporation, the Louisiana Land Trust, and the Louisiana Housing Corporation
which together are charged with the responsibility of providing access to decent, safe,
sanitary, and affordable housing.
Proposed law repeals all of the previous entities, charged with the responsibility of providing
access to decent, safe, sanitary, and affordable housing and transfers that responsibility to
the newly created Louisiana Housing Corporation.
Proposed law includes legislative findings regarding access to decent, safe, sanitary, and
affordable residential housing and the definitions of terms used in the Chapter.
Proposed law provides for the creation of the Louisiana Housing Corporation and for its
organization, including being governed by an appointed board of directors, and those
appointed by the governor shall be subject to Senate confirmation.
Proposed law provides for the powers, duties, and procedures of the corporation.
Proposed law corporation shall have powers necessary to undertake and perform the
purposes of the act, including, but not limited to the following:
1. To execute contracts of various types.
2. To sue and be sued.
3. To accept donations of both movable and immovable property.
4. To procure insurance and reinsurance.
5. To contract with state and federal government agencies and with mortgage
and lending institutions.
6. To set and collect fees.
7. To own, hold, clear, improve, lease, sell, convey, and invest in immovable
property.
8. To borrow money and issue bonds.
Proposed law requires the corporation to establish policy for housing finance for all entities
involved in financing single family or multi-family housing. HB NO. 590
HLS 11RS-1001 ORIGINAL
Page 35 of 35
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Proposed law provides for the development of a plan for the realignment, distribution,
assignment, consolidation, and cooperation of agencies and the procedures for the transfer
of both programs and personnel involved in the agencies which are consolidated into the
Louisiana Housing Corporation.
Proposed law provides that the corporation may sell residential loans and may package such
loans for sale.
Proposed law provides for the Louisiana Housing Corporation to have all legal duties and
powers to improve the access to decent, safe, sanitary, and affordable housing for residents
of Louisiana.
Proposed law provides that the corporation may establish requirements for lending
institutions that hold collateral and those that are recipients of loans from the corporation.
Proposed law provides procedures regulating the issuance of and the sale of such bonds as
the corporation is authorized to issue.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 40:600.86-600.110; 42:1124.2; repeals R.S. 40:600.1-600.25.1 and 40:600.61-
600.68.)