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Regular Session, 2011
SENATE BILL NO. 249
BY SENATOR RISER AND REPRESENTATIVE TUCKER
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
HOUSING. Creates Louisiana Housing Corporation. (gov sig)
AN ACT1
To enact Chapter 3-G of 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 SB NO. 249
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§600.86. Short title; findings; purpose1
A. This Chapter shall be known and may be referred to as the2
"Louisiana Housing Corporation Act".3
B. (1) The legislature hereby finds and declares that there exists in the4
state of Louisiana a serious shortage of decent, safe, and sanitary residential5
housing.6
(2) The legislature hereby finds and declares further that private7
enterprise and investment unaided has not been able to produce the needed8
construction of decent, safe, and sanitary residential housing at prices which9
persons and families of low or moderate income can afford, or to achieve the10
urgently needed rehabilitation of existing inadequate and substandard11
residential housing. The legislature further finds and declares that it is12
imperative that the supply of residential housing for persons and families of low13
or moderate income be increased substantially and that private enterprise and14
investors be encouraged to sponsor, build, and rehabilitate residential housing15
for such persons and families.16
(3) The legislature hereby finds and declares further that a major cause17
of the shortage of residential housing is the inadequate supply of funds available18
from private mortgage lenders for residential housing mortgage loans at19
interest rates within the financial means of persons and families of low or20
moderate income.21
(4) The legislature hereby finds and declares that the limited resources22
available directly to the state or its agencies may be more effectively and23
efficiently utilized if a single corporation is authorized and directed to24
coordinate housing programs administered by the state or its agencies and25
instrumentalities.26
(5) The legislature hereby finds and declares further that additional27
financial resources and technical skills must be available in local communities28
if the state is to mobilize the capacity of the private sector, including nonprofit29 SB NO. 249
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community housing development organizations, to provide a more adequate1
supply of decent, safe, and sanitary housing.2
(6) The legislature hereby finds and declares further that state3
leadership is needed to achieve an adequate supply of affordable housing for all4
residents of the state and that such leadership shall be provided through the5
corporation.6
(7) The legislature hereby finds and declares further that this7
corporation should have the maximum amount of flexibility, responsibility, and8
discretion to assure that all the residents of the state shall have access to decent,9
safe, sanitary, and affordable housing; therefore, in carrying out the purposes10
of this Chapter, the corporation shall be presumed to possess broad powers and11
legal prerogatives which enable the corporation to carry out its purposes12
directly or indirectly through one or more nonprofit subsidiaries.13
§600.87. Definitions14
The following terms whenever used or referred to in this Chapter shall15
have the following meanings, unless the context clearly indicate otherwise:16
(1) "Corporation" means the Louisiana Housing Corporation created17
by this Chapter.18
(2) "Bonds" means the bonds, notes, renewal notes, refunding bonds,19
interim certificates, certificates of indebtedness, debentures, or other obligations20
or evidences of indebtedness authorized to be issued by the corporation21
pursuant to the provisions of this Chapter.22
(3) "Federal government" means the United States of America and any23
agency or instrumentality, corporate or otherwise, of the United States of24
America.25
(4) "Insured mortgage" means a mortgage loan for the acquisition,26
construction, rehabilitation or improvement of residential housing located27
within the state which is insured or guaranteed in whole or in part by the28
federal or state government, or any instrumentality or agency of the federal29 SB NO. 249
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government or the state government, including the Louisiana Housing1
Corporation, or by a private mortgage insurance company, which insures the2
holder of the mortgage against financial loss.3
(5) "Lending institution" means any bank, bank or trust company,4
building and loan association, homestead, insurance company, investment5
banker, mortgage banker or company, pension or retirement fund, savings6
bank or savings and loan association which is authorized to do business in7
Louisiana.8
(6) "Mortgage" means a conventional mortgage evidencing a contract9
by which a person binds all or part of his immovable property in favor of10
another to secure the execution and enforcement of a contract, but without11
divesting oneself of the possession of said property.12
(7) "Mortgage loan" means a financial obligation secured by a13
mortgage.14
(8) "Persons or families of low or moderate income" means persons as15
defined in Section 143 of the Internal Revenue Code, 23 U.S.C. 143.16
(9) "Residential housing" means a specific work or improvement within17
the state undertaken primarily to provide decent, safe and sanitary dwelling18
accommodations for persons of low or moderate income, including but not19
limited to, the acquisition, construction, rehabilitation or improvement of land,20
buildings and improvements thereto in connection with apartments,21
condominiums, single family homes, townhouses, and nonhousing facilities22
appurtenant thereto.23
(10) "State" means the state of Louisiana.24
(11) "State agency" means any board, authority, agency, department,25
commission, public corporation, body corporate and politic or instrumentality26
of the state.27
(12) "Subsidiary" means any nonprofit corporation in which the board28
of directors of the corporation constitute a majority of the governing body of29 SB NO. 249
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such entity.1
§600.88. Creation of the agency2
There is hereby created a public body corporate and politic known as the3
Louisiana Housing Corporation. The Louisiana Housing Corporation,4
hereinafter referred to as the agency or corporation, shall be a political5
subdivision and instrumentality of the state.6
§600.89. Organization of the agency7
A. The Louisiana Housing Corporation shall be governed by a board of8
directors composed of the following members:9
(1) One member shall be the state treasurer or his designee.10
(2) Six members shall be appointed by the governor, each of whom shall11
serve at the pleasure of the governor, shall be residents of the state, and shall12
have three to five years of experience in one or more of the fields of banking,13
mortgage, residential construction, real estate, nonprofit residential14
development, bonds, grants, or programs of the Department of Housing and15
Urban Development.16
(3) Each appointment by the governor shall be submitted to the Senate17
for confirmation.18
(4) Two additional members shall be appointed as follows:19
(a) One person appointed by the president of the Senate.20
(b) One person appointed by the speaker of the House of21
Representatives.22
B. In the event of a vacancy in the office of any member of the board of23
directors, the governor shall appoint a replacement to serve for the remainder24
of the unexpired term.25
C.(1) Each member of the board of directors shall hold office until the26
member resigns or is removed from office or until his successor has been27
appointed and has qualified.28
(2) No appointed member shall serve more than four years, unless the29 SB NO. 249
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member has been re-appointed and re-confirmed.1
(3) Any appointed member shall be eligible for reappointment.2
(4) Any member of the board of directors of the corporation may be3
removed from office by the governor for incompetence, malfeasance,4
misconduct or willful neglect of duty, after reasonable notice and a public5
hearing, unless the same are expressly waived in writing.6
(5) Each member of the corporation appointed by the governor shall,7
before entering office, take the oath of office required of public officials to8
administer the duties of his office faithfully and impartially, and a record of9
such oath shall be filed with the secretary of state.10
D. Each member of the board of directors shall file financial disclosure11
statements pursuant to R.S. 42:1124.2.12
§600.89. Officers of the agency; duties; liability13
A. Executive director.14
(1) Appointment.15
(a) An executive director of the corporation shall be appointed by the16
board subject to the approval of the governor. Any person nominated shall17
meet all the requirements for being a member of the board of directors. Should18
the governor refuse to confirm the appointment of the executive director, then19
the board shall submit another name.20
(b) The person whose appointment was refused shall not be renamed for21
confirmation for a period of two years.22
(c) The governor shall, within thirty days after the nomination of the23
executive director, either approve or reject the nomination.24
(2) Duties; requirements25
(a) The executive director of the corporation shall manage the daily26
affairs of the corporation and shall have such powers and duties as specified by27
this Chapter and by the board of directors.28
(b) The executive director shall not be a member of the board.29 SB NO. 249
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(c) The executive director of the corporation shall serve at the pleasure1
of the board of directors.2
B. The executive director shall submit a staffing plan to the board for3
its approval. 4
C. No officer or employee shall be a member of the board.5
E. The powers of the board.6
(1) The powers of the corporation shall be vested in the board of7
directors thereof in office from time to time.8
(2) A majority of the members of the board currently serving shall9
constitute a quorum for the transaction of any business and for the exercise of10
any power or function of the agency. No vacant office shall be included in the11
determination of the number of members of the board necessary to establish a12
quorum.13
(3) No vacancy in the board shall impair the rights of a quorum of the14
board to exercise any power or function of the corporation.15
(4) Action may be taken by the board upon an affirmative vote of a16
majority of the members present.17
F. The corporation shall be domiciled in Baton Rouge.18
G. The corporation shall adopt bylaws for its own governance, provided19
that such bylaws shall not conflict with any of the provisions of this Chapter or20
with any other law applicable to public bodies or agencies.21
H. No member of the board of directors shall be charged personally with22
any liability whatsoever by reason of any act or omission committed or suffered23
in the performance of his duties as member of the board or with respect to the24
operations of the corporation, but any act, liability for omission or obligation25
of a member in the performance of his duties or with respect to the operations26
of the corporation shall extend to the whole of the property of the corporation,27
or so much thereof as may be necessary or available to discharge such liability28
or obligation, and not otherwise.29 SB NO. 249
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I. If any member of the board of directors, officer, or employee of the1
corporation shall have an interest, either direct or indirect, in any contract to2
which the corporation is, or is to be, a party, or in any lending institution3
requesting a loan from, or offering to sell insured mortgage loans to the4
corporation, such interest shall be disclosed to the corporation in writing and5
shall be set forth in the minutes of the corporation.6
J. Fiscal matters.7
(1) The corporation shall operate from self-generated revenues and shall8
be a budget unit of the state.9
(2) The corporation may receive state appropriations and the10
expenditure of such appropriated funds shall be subject to budgetary controls11
or authority of the Division of Administration.12
(3) The corporation shall establish an operating budget for the use of its13
revenues, subject to approval by a two-thirds vote of the board of directors of14
the corporation.15
(4) The fiscal year for the corporation shall run concurrently with the16
fiscal year of the state.17
(5) Any budget adopted shall be effective for that fiscal year.18
(6) The corporation shall adhere to the requirements of R.S. 39:71, et19
seq.20
§600.90. Powers and duties of the corporation21
A. The corporation shall have the powers necessary or convenient to22
carry out and effectuate the purposes and provisions of this Chapter, including23
the following powers in addition to all other powers granted by other provisions24
of this Chapter:25
(1) The corporation may sue and be sued in its own name.26
(2) The corporation may establish a seal and alter the same at its27
pleasure.28
(3) The corporation may adopt bylaws for the internal organization and29 SB NO. 249
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government of the corporation.1
(4) The corporation may make and execute contracts and all other2
instruments necessary or convenient for the exercise of its powers and functions3
under this Chapter with any federal or state governmental agency, public or4
private corporation, lending institution or other entity or person.5
(5) The corporation may accept donations of movable or immovable6
property from any source and receive appropriations from the legislature or7
financial assistance or subsidies from the federal or state government.8
(6) The corporation may, subject to the rights of holders of bonds of the9
corporation, renegotiate, refinance or foreclose on any mortgage or commence10
any action or protect or enforce any right or benefit conferred upon the11
corporation by any law, mortgage, contract or other agreement and bid for and12
purchase such property at any foreclosure or at any other sale or otherwise13
acquire or take possession of any such property; and in such event the agency14
may complete, administer, pay the principal of and interest on any obligation15
incurred in connection with such property, dispose of and otherwise deal with16
such property in such manner as may be necessary or desirable to protect the17
interest of the corporation or of holders of its bonds therein.18
(7) The corporation may procure or provide for the procurement of19
insurance or reinsurance against any loss in connection with its property or20
operations, including but not limited to, insurance, reinsurance or other21
guarantees from a federal or state governmental agency or private insurance22
company for the payment of any bonds issued by the corporation or bonds,23
notes, or any other obligations or evidences of indebtedness issued or made by24
any lending institution or other entity or person or insurance or reinsurance25
against loss with respect to mortgages or mortgage loans, including the power26
to pay premiums on such insurance or reinsurance.27
(8) The corporation may insure, reinsure, or cause to be insured or28
reinsured mortgage loans or mortgages on residential housing, to receive29 SB NO. 249
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premiums on such insurance or reinsurance, and to establish reserves for losses,1
and to participate in the insurance or reinsurance of mortgage loans or2
mortgages on residential housing with the federal or state government.3
(9) The corporation may enter into agreements and contracts with4
persons and entities including, but not limited to, the federal or state5
government or its subdivisions, agencies or instrumentalities, or with6
mortgagors or lending institutions.7
(10) The corporation may undertake and carry out or authorize the8
completion of studies and analyses of housing conditions and needs within the9
state and ways of meeting such needs, to make such studies and analyses10
available to the public and to the housing industry, and to engage in research11
to disseminate information on housing, in coordination with the Division of12
Administration, office of community development.13
(11) The corporation may accept federal, state, or private financial or14
technical assistance; comply with any conditions for such assistance; and15
become a "co-insurer" with the United States Department of Housing and16
Urban Development or other appropriate federal agency for housing finance17
programs.18
(12) The corporation may collect fees and charges in connection with its19
loans, insurance, commitments, and services including, but not limited to,20
reimbursement of costs of issuing bonds, service charges, and insurance21
premiums.22
(13) The corporation may purchase secured loans or make lending23
commitments to purchase or sell construction or mortgage loans with respect24
to residential housing; make secured loans to lending institutions, including25
commitments therefor, with respect to the making of construction or mortgage26
loans by lending institutions for residential housing.27
(14) The corporation may acquire or contract to acquire from any28
person, firm, corporation, municipality, federal or state agency, by grant,29 SB NO. 249
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purchase or otherwise, movable or immovable property or any interest therein;1
to own, hold, clear, improve, lease, construct, or rehabilitate, and to sell, invest,2
assign, exchange, transfer, convey, lease, mortgage, or otherwise dispose of or3
encumber the same, subject to the rights of holders of the bonds of the agency,4
at public or private sale, with or without public bidding.5
(15) The corporation may borrow money, issue bonds and provide for6
the rights of the lenders or holders thereof.7
(16) The corporation may, subject to the rights of holders of the bonds8
of the agency, consent to any modification with respect to the rate of interest,9
time payment of any installment of principal or interest, security or other term10
of any loan, contract, mortgage, mortgage loan or commitment therefor or11
agreement of any kind to which the corporation is a party or beneficiary.12
(17) The corporation may maintain an office, in addition to the office in13
Baton Rouge, at such place or places in the state as the corporation shall14
determine.15
(18) In carrying out its functions under this Chapter, the corporation16
shall accomplish the following:17
(a) The corporation shall adopt rules and regulations which shall require18
fair, impartial, and equitable treatment of all lending institutions by the19
corporation.20
(b) Such rules and regulations shall insure that favoritism shall not be21
an element in the allocation of services by the corporation and that objective22
standards and criteria shall control and govern access to the allocation of23
services and functions authorized by this Chapter.24
(c) The board of commissioners of the corporation shall establish policy25
for housing finance for all units, divisions, agencies, public corporations, and26
instrumentalities of the state involved directly or indirectly in financing single27
family or multi-family housing.28
(19) The corporation may purchase secured loans or make lending29 SB NO. 249
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commitments to purchase loans on multi-family housing projects under such1
guidelines, rules, and restrictions as shall be adopted by the corporation.2
(20) The corporation is authorized to sell residential loans purchased by3
it or by others either singly or in "packages" or pools to investors, including the4
retirement plans and trusts established for the employees of the state and its5
subdivisions, agencies, instrumentalities, and units of government which may6
be authorized to purchase residential first mortgages for investment purposes;7
however, all such mortgage loans purchased by the corporation for resale shall8
have been made on real estate in the state.9
(21) Notwithstanding any provisions of this Chapter or any other law to10
the contrary, specifically R.S. 12:202.1, the corporation may create or cause to11
be created such nonprofit corporations as may be necessary or expedient to12
participate in housing programs of the federal government or its agencies and13
instrumentalities.14
(22) Notwithstanding the provisions of this Chapter or any other law to15
the contrary, specifically R.S. 12:202.1, the corporation may create or cause to16
be created such nonprofit corporations as may be necessary or desirable to17
establish housing equity funds, the purpose of which shall be to direct the18
investment of capital primarily from Louisiana residents to residential housing19
developments qualifying under Section 42 of the Internal Revenue Code of 198620
for low income housing credits.21
(23) The corporation shall administer the federal grants for energy22
assistance and weatherization services for low-income persons.23
(24) The corporation shall administer the Louisiana Housing Trust24
Fund.25
(25) Notwithstanding any provisions of this Chapter or any other law to26
the contrary, the corporation is authorized to:27
(a) Sponsor a statewide community housing development organization28
to partnership with or to expand the capacity of local nonprofit organizations29 SB NO. 249
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in limited resource communities and to develop and manage affordable1
residential rental housing in partnership with such local nonprofit2
organizations.3
(b) Originate and fund second mortgage loans to persons or households4
of very low, low, or moderate income as defined by the United States5
Department of Housing and Urban Development.6
(c) Finance directly pools of loans to public housing authorities as7
established under the Louisiana Housing Authorities Law, contained in R.S.8
40:381 et seq.9
(d) Establish one or more subsidiaries to carry out the purposes of this10
Chapter.11
(26)(a) Notwithstanding any provisions of law to the contrary, the12
corporation is authorized and required to assume administration or13
management of disaster recovery programs funded by the Department of14
Housing and Urban Development Community Development Block Grants as15
designated by the governor.16
(b) In the event that a state agency has contracts in place for the purpose17
of the implementation of such programs, the agency may transfer to the18
corporation the contracts or the portion of the contracts related to the programs19
transferred.20
(27) Notwithstanding any provisions of law to the contrary, the following21
programs in the Department of Children and Family Services shall be22
transferred to the agency:23
(a) Louisiana Emergency Shelter Grants program.24
(b) Rapid Re-housing program.25
(28) The corporation shall have all the powers and duties in the26
Louisiana Housing Authorities Law pursuant to R.S. 40:381, et seq.27
B. The corporation may promulgate rules, regulations, or such other28
procedures for the coordination of all state-administered housing programs.29 SB NO. 249
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Notwithstanding any provisions of this Chapter or any other provision of the1
law to the contrary, every department, agency, or instrumentality of the state2
administering any federal or state housing resource shall provide assistance to3
the corporation, including but not limited to, information, technical assistance,4
and personnel of such department, agency, or instrumentality, which is being5
or may be used to provide decent, safe, sanitary, and affordable housing to the6
residents of the state in order to accomplish the goals and to comply with the7
provisions of this Chapter.8
C. The Louisiana Housing Corporation is authorized and directed to9
cooperate and coordinate with units of general local government, local public10
housing authorities, and other instrumentalities of local government, including11
but not limited to public trusts and local nonprofit housing corporations, in12
developing a comprehensive plan and housing strategy as required by the13
Department of Housing and Urban Development. Such plan shall be submitted14
to the House Committee on Municipal, Parochial and Cultural Affairs and the15
Senate Committee on Local and Municipal Affairs for review within thirty days16
of its completion.17
D.(1) The Louisiana Housing Corporation shall submit to the House18
Committee on Municipal, Parochial and Cultural Affairs and the Senate19
Committee on Local and Municipal Affairs each Comprehensive Housing20
Affordability Strategy (CHAS) and any amendment thereto prepared by or on21
behalf of the state and units of local government pursuant to 24 CFR Part 91 for22
review within thirty days of their completion.23
(2) Each CHAS shall contain a statement identifying the resources24
reasonably expected to be made available from the United States Department25
of Housing and Urban Development, other federal or state and local26
governments for rental assistance, homeless assistance, production of new units,27
rehabilitation of existing units, acquisition of existing units and any other28
assistance provided to carry out the following purposes of the Cranston-29 SB NO. 249
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Gonzales National Affordable Housing Act:1
(a) To help families not owning a home to save for a down payment for2
the purchase of a home.3
(b) To retain, wherever practical, as housing affordable to low-income4
families, those dwelling units produced for such purpose with federal assistance.5
(c) To extend and strengthen partnerships among all levels of6
government and the private sector, including for-profit and nonprofit7
organizations, in the production and operation of housing affordable to low-8
income and moderate-income families.9
(d) To expand and improve federal rental assistance for very low-income10
families.11
(e) To increase the supply of supportive housing, which combines12
structural features and services needed to enable persons with special needs to13
live with dignity and independence.14
§600.91. Purchase of mortgage loans 15
A. The corporation may purchase, or contract to purchase, insured16
mortgage loans with respect to residential housing from lending institutions, at17
such prices and upon such terms and conditions as it shall determine by rules18
or regulations adopted by the board of directors. All lending institutions are19
authorized to sell insured mortgage loans to the corporation in accordance with20
the provisions of this Chapter and the rules and regulations of the corporation.21
B. The corporation may require as a condition of purchase of any22
insured mortgage loan from a lending institution that the lending institution23
represent and warrant to the corporation all of the following: 24
(1) The unpaid balance of the mortgage loan and the interest rate25
thereon have been accurately stated to the agency and that the interest rate is26
not usurious.27
(2) The amount of the unpaid principal balance of the mortgage loan is28
justly due and owing in accordance with the terms thereof. 29 SB NO. 249
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(3) The lending institution has no notice of the existence of any1
counterclaim, offset or defense asserted by the mortgagor or his successor in2
interest.3
(4) The mortgage loan is evidenced by a note and a mortgage which has4
been properly recorded in the parish in which the immovable property is5
situated. 6
(5) The mortgage constitutes a valid first lien on the immovable7
property described to the agency, subject to property taxes not yet due,8
installments of assessments not yet due, and such servitudes, encumbrances or9
restrictions which do not adversely affect to a material degree the use or value10
of the immovable property or the improvements thereon. 11
(6) The mortgage loan when made was lawful under federal or state law,12
or both, whichever governed the making of the loan, and would be lawful on the13
date of purchase by the agency if made by the lending institution on that date14
in the amount of the unpaid principal balance.15
(7) The mortgagor is not now in default in the payment of any16
installment of principal or interest, escrow funds, property taxes or otherwise17
in the performance of his obligations under the mortgage loan documents and18
has not to the knowledge of the lending institution been in default in the19
performance of any such obligation for a period of longer than sixty days during20
the life of the mortgage.21
(8) The improvements to the mortgaged property are covered by a valid22
and current policy of insurance, in full force and effect, issued by an insurance23
company authorized to issue such policies in the state and providing fire and24
extended coverage in an amount not less than the outstanding principal balance25
of the mortgage loan or the maximum insurable value of the mortgaged26
property, whichever is greater.27
(9) The mortgage loan meets the prevailing investment quality standards28
for mortgage loans of that type in the state and is an insured mortgage loan.29 SB NO. 249
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C. A lending institution shall be liable to the corporation for any1
damages suffered by the corporation by reason of the untruth of any2
representation or the breach of any warranty and, in the event that any3
representation shall prove to be untrue when made or in the event of any breach4
of warranty, the lending institution at the option of the agency shall repurchase5
the mortgage loan for the original purchase price, adjusted for amounts6
subsequently paid thereon and for damages incurred by the corporation, as the7
corporation may determine.8
D. The corporation may require the recording of an assignment of any9
mortgage loan or mortgage purchased by it from a lending institution. The10
corporation shall not be required to inspect or take possession of the mortgage11
loan documents if the lending institution from which the mortgage loan is12
purchased by the corporation shall enter into a contract with the corporation13
to service such mortgage loan and to account to the corporation regarding such14
mortgage loan.15
E. If the corporation purchases a mortgage loan from a lending16
institution, the corporation may contract with that or another lending17
institution to act as servicing agent for the corporation for the collection of18
mortgage loan payments from the mortgagor and for the exercise of the rights19
and the discharge of the responsibilities provided for in the mortgage loan20
documents and federal and state law.21
F. To the extent that any provisions of this Section may be inconsistent22
with any provision of law of the state governing lending institutions, the23
provisions of this 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 in26
connection with a federal program if benefits provided by such program would27
not otherwise be made available within the state.28
§600.92. Loans to lending institutions 29 SB NO. 249
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A. (1) The corporation may make, or contract to make, secured loans to1
lending institutions at such interest rates, terms and conditions as it shall2
determine 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 institutions8
to make mortgage loans with respect to residential housing located within the9
state, subject to such terms and conditions as the corporation may prescribe.10
B. The corporation shall require that each lending institution which is11
the recipient of a loan pursuant to this Section shall issue and deliver to the12
corporation an evidence of its indebtedness to the corporation, which shall13
constitute a general obligation of such lending institution and shall bear such14
date or dates, shall mature at such time or times, shall be subject to such15
prepayment, and shall contain such other provisions consistent with this Section16
as the corporation shall determine.17
C. Notwithstanding any other provisions of this Section to the contrary,18
the interest rate or rates and other terms of such loans to lending institutions19
made from the proceeds of any issue of bonds of the corporation shall be at least20
sufficient to assure the payment of said bonds and the interest thereon as the21
bonds become due.22
D. The corporation shall require that loans made to lending institutions23
pursuant to this Section shall be additionally secured as to payment of both24
principal and interest by a pledge of collateral security in such amounts and25
consisting of such obligations, securities or mortgages as the corporation shall26
determine to be necessary to assure the payment of such loans and the interest27
thereon as the same become due.28
E. (1) The corporation may require that collateral for loans to lending29 SB NO. 249
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institutions be deposited with a bank, trust company or other financial1
institution acceptable to the corporation located either within or outside the2
state as designated by the corporation.3
(2) In the absence of such requirement, a lending institution that is the4
recipient of a loan from the corporation shall enter into an agreement with the5
corporation containing such provisions as the corporation shall deem necessary6
or desirable to adequately identify and maintain such collateral, to service such7
collateral, and to require that such lending institution shall hold such collateral8
as agent for the corporation and shall be accountable to the corporation as the9
trustee of an express trust for the application and disposition thereof and the10
income therefrom solely to the uses and purposes in accordance with the11
provisions of such agreement.12
(3) A copy of each such agreement and any revisions or supplements13
thereto shall be filed with the secretary of state, and no further filing or other14
action under any other law of the state shall be required to perfect the security15
interest of the corporation in such collateral or any additions thereto or16
substitutions therefor, and the lien and trust for the benefit of the corporation17
so created shall be binding from and after the time made against all parties18
having claims of any kind in tort, contract, or otherwise against such lending19
institution.20
(4) The corporation may also establish such additional requirements as21
it shall deem necessary with respect to the pledging, assigning, setting aside or22
holding of such collateral and the making of substitutions therefor or additions23
thereto and the disposition of income and receipts therefrom.24
F. The corporation shall require lending institutions that are the25
recipients of loans from the corporation to submit evidence satisfactory to the26
agency that the lending institution has used the proceeds of such loans by the27
corporation, or any equivalent amount, to make mortgage loans with respect to28
residential housing and that the lending institution has complied with the terms29 SB NO. 249
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and conditions of such loans as prescribed by the corporation. In connection1
therewith, the corporation, through its employees or agents, may inspect the2
books and records of such lending institution.3
G. The corporation may require as a condition of any loans to lending4
institutions such representations and warranties as it shall determine to be5
necessary or desirable to service such loans and implement the provisions of this6
Section.7
H. Subject to the rights of holders of bonds of the agency, the8
corporation may collect, enforce the collection of, and foreclose on any9
collateral securing its loans to lending institutions and acquire or take10
possession of such collateral and sell the same at private or public sale, with or11
without public bidding, and otherwise deal with such collateral as may be12
necessary to protect the interest of the corporation therein.13
I. To the extent that any provisions of this Section may be inconsistent14
with any provision of the law of the state governing lending institutions, the15
provisions of this Section shall control.16
§600.93. Bonds of the corporation17
A. The agency is hereby authorized and empowered to issue from time18
to time bonds, notes, renewal notes, refunding bonds, interim certificates,19
certificates of indebtedness, debentures, or other obligations or evidences of20
indebtedness (hereinafter referred to collectively as "bonds") whether the21
interest thereon is subject to taxation under the Internal Revenue Code of 198622
as now enacted or subsequently amended or is exempt therefrom to provide23
funds for and to fulfill and achieve its authorized public functions or corporate24
purposes as set forth in this Chapter including but not limited to the following25
purposes:26
(1) The purchase of insured mortgage loans from lending institutions.27
(2) The making of secured loans to lending institutions.28
(3) For construction of residential buildings.29 SB NO. 249
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(4) For the purchase of residential loans previously made and secured1
by first mortgages and for the purchase of securities fully collateralized by first2
mortgages on residential housing.3
(5) For the purchase of "pre-packaged" residential first mortgage loans4
for investment or resale.5
(6) For the payment of interest on bonds of the corporation, the6
establishment of reserves to secure such bonds, the establishment of reserves7
with respect to the insurance of mortgage loans for residential housing.8
(7) For all other expenditures of the corporation incident to and9
necessary or convenient to carry out its public functions or corporate purposes.10
B. Except as may otherwise be provided by the corporation, all bonds11
issued by the agency shall be negotiable instruments and may be general12
obligations of the agency, secured by the full faith and credit of the agency and13
payable out of any money, assets or revenues of the agency or from any other14
sources whatsoever that may be available to the agency.15
C. The bonds of the corporation shall be solely the obligations of the16
corporation. In no event shall any bonds of the corporation constitute an17
obligation, either general or special, of the state, any municipality or any other18
political subdivision of the state or constitute or give rise to a pecuniary liability19
of the state, any municipality or any other political subdivision of the state; nor20
shall the agency have the power to pledge the general credit or taxing power of21
the state, any municipality or any other political subdivision of the state.22
D. Bonds shall be authorized, issued and sold by a resolution or23
resolutions of the agency adopted as provided in this Chapter. Such bonds may24
be of such series, bear such date or dates, mature at such time or times, bear25
interest at such rate or rates, payable at such time or times, be in such26
denominations, be sold at such price or prices, at public or private negotiated27
sale, after advertisement as is provided for in R.S. 39:1421 through R.S.28
39:1427, be in such form, either in coupon form, registered as to principal only29 SB NO. 249
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or fully registered without coupons, carry such registration and exchangeability1
privileges, be payable at such place or places, be subject to such terms of2
redemption, and be entitled to such priorities on the income, revenue and3
receipts of, or available to, the agency as may be provided by the agency in the4
resolution or resolutions providing for the issuance and sale of the bonds of the5
agency.6
E. The bonds of the agency shall be signed by such commissioners or7
officers of the agency, by either manual or facsimile signatures, as shall be8
determined by resolution or resolutions of the agency, and shall have impressed9
or imprinted thereon the seal of the agency, or a facsimile thereof. The coupons10
attached to coupon bonds of the agency shall bear the facsimile signature of11
such commissioner or officer of the agency as shall be determined by resolution12
or resolutions of the agency.13
F. Any bonds of the agency may be validly issued, sold and delivered,14
notwithstanding that one or more of the commissioners or officers of the agency15
signing such bonds, or whose facsimile signature or signatures may be on the16
bonds or on coupons shall have ceased to be such commissioner or officer of the17
agency at the time such bonds shall actually have been delivered.18
G. Bonds of the agency may be sold in such manner and from time to19
time as may be determined by the agency to be most beneficial, and the agency20
may pay all expenses, premiums, or commissions which it may deem necessary21
or advantageous in connection with the issuance and sale thereof, subject to the22
provisions of this Chapter.23
H. Bonds of the agency may be issued under and subject to such terms,24
covenants or conditions, consistent with this Chapter, as may be determined by25
resolution or resolutions of the agency to be necessary or desirable, including,26
but not limited to all of the following:27
(1) The establishment of a trust indenture or indentures by and between28
the agency and a corporate trustee, which may be any bank or trust company29 SB NO. 249
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having the powers of a trust company, located within or without the state, that1
is acceptable to the agency.2
(a) Such trust indenture may provide for the pledging or assigning of3
any assets or income from assets to which or in which the agency has any rights4
or interest, and may further provide for such other rights and remedies5
exercisable by the trustee as may be proper for the protection of the holders of6
the bonds of the agency, and not otherwise in violation of law.7
(b) Such agreement may provide for the restriction of the rights of any8
individual holder of bonds of the agency.9
(c) Such trust indenture may provide that all expenses incurred in10
carrying out the provisions of such trust indenture may be treated as a part of11
the cost of operation of the agency.12
(d) The trust indenture may contain any further provisions which are13
reasonable to delineate further the respective rights, duties, safeguards,14
responsibilities and liabilities of the agency.15
(2) The pledge or creation of a lien, to the extent provided by resolution16
or resolutions of the agency, on all or any part of the money, assets or revenues17
of the agency or on any money or assets held by others for the benefit of the18
agency to secure the payment of such bonds. 19
(3) Provisions for the custody, collection, securing, investment and20
payment of any money of or due to the agency. 21
(4) The creation or funding of reserves or sinking funds and the22
regulation or disposition thereof.23
(5) Limitations on the purposes to which the proceeds of the sale of any24
issue of bonds then or thereafter to be issued may be applied. 25
(6) Limitations on the issuance of additional bonds and on the refunding26
of outstanding or other bonds.27
(7) The procedure, if any, by which the terms of any contract with the28
holders of bonds of the agency may be amended or abrogated, the amount of29 SB NO. 249
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bonds the holders of which must consent thereto, and the manner in which such1
consent may be given.2
(8) The creation of special funds into which any money of the agency3
may be deposited.4
(9) The vesting in a trustee or trustees of such properties, rights, powers5
and duties in trust as the agency may by resolution determine. 6
(10) The definition of the acts or omissions which shall constitute a7
default in the obligations and duties of the agency and providing for the rights8
and remedies of the holders of bonds of the agency in the event of such default9
in accordance with the provisions of the Chapter and the general laws of the10
state.11
(11) Any other matters of like or different character, which in any way12
affect the security and protection of the bonds and the rights of the holders13
thereof.14
I. The agency is hereby granted the total allocation for qualified15
mortgage bonds for state housing finance agency issuers pursuant to the federal16
Mortgage Subsidy Bond Tax Act of 1980, 26 U.S.C. 103A. Any allocation made17
pursuant to the this act to issuers other than state housing finance agency issues18
which have not been sold by September 1 of each year may be allocated, in19
whole or in part, by the governor of the state of Louisiana to the agency.20
§600.94. Statutory pledge 21
Any pledge made by the agency shall be valid and binding from the time22
when the pledge is made. The money, assets or revenues of the agency so23
pledged and thereafter received by the agency shall immediately be subject to24
the lien of such pledge without any physical delivery thereof or further act, and25
the lien of any such pledge shall be valid and binding as against all parties26
having claims of any kind in tort, contract, or otherwise against the agency,27
irrespective of whether such parties have notice thereof. Neither the resolution28
or any other instrument by which a pledge is created need be recorded or filed29 SB NO. 249
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in order to establish and perfect a lien or security interest in the property so1
pledged.2
§600.95. Refunding bonds 3
A. Subject to the rights of the holders of the bonds of the agency, the4
agency is hereby authorized and empowered to issue from time to time its bonds5
for the purpose of refunding any bonds of the agency then outstanding, together6
with the payment of any redemption premiums thereon and interest accrued or7
to accrue to the date of redemption of such outstanding bonds.8
B. All such refunding bonds of the agency shall be issued, sold or9
exchanged, and delivered, shall be secured, and shall be subject to the10
provisions of this Chapter in the same manner and to the same extent as any11
other bonds issued by the agency pursuant to this Chapter, unless otherwise12
determined by resolution of the agency.13
C. Refunding bonds issued by the agency as herein provided may be sold14
or exchanged for outstanding bonds of the agency and, if sold, the proceeds15
thereof may be applied, in addition to any other authorized purposes, to the16
purchase, redemption or payment of such outstanding bonds.17
D. Pending the application of the proceeds of any such refunding bonds,18
with any other available funds, to the payment of the principal, accrued interest,19
and any redemption premiums, if any, on the bonds being refunded, and, if so20
provided or permitted in the trust indenture or the resolution of the agency21
authorizing the issuance of such refunding bonds, to the payment of any interest22
on such refunding bonds and any expenses in connection with such refunding,23
such proceeds may be invested in direct obligations of, or obligations the24
principal and interest on which are unconditionally guaranteed by, the United25
States which shall mature or which shall be subject to redemption by the26
holders thereof, at the option of such holders, not later than the respective dates27
when the proceeds, together with the interest accruing thereon, will be required28
for the purposes intended. 29 SB NO. 249
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§600.96. Liability of commissioners, officers or employees of the agency 1
The commissioners, officers or employees of the agency, or any other2
person executing the bonds of the agency shall not be personally liable on the3
bonds or be subject to any personal liability or accountability by reason of the4
issuance, sale or delivery thereof while acting within the scope of their5
authority.6
§600.97. Purchase of bonds by corporation 7
Subject to the rights of holders of bonds, the agency shall have the power8
out of any funds available therefor, to purchase bonds of the agency, which shall9
thereupon be cancelled, at a price not exceeding either of the following:10
(1) If the bonds are then subject to optional redemption, the optional11
redemption price then applicable plus accrued interest to the next interest12
payment date thereon.13
(2) If the bonds are not then subject to optional redemption, the optional14
redemption price applicable on the first date after such purchase upon which15
the notes or bonds become subject to optional redemption plus accrued interest16
to such date.17
§600.98. Approval of issuance of bonds by State Bond Commission 18
The approval of the State Bond Commission shall be obtained prior to19
the issuance of any bonds of the agency. No notice to, or consent or approval20
by any other governmental body or public officer shall be required as a21
prerequisite to the issuance, sale or delivery of any bonds of the agency, or to22
the making of any loans by the agency to lending institutions, or to the purchase23
of insured mortgage loans by the agency from lending institutions, or to the24
insurance by the agency of any mortgage loan with respect to residential25
housing, or to the exercise of any other public function or corporate power of26
the agency, except as is expressly provided in this Chapter.27
§600.99. Exemption from taxes 28
A. It is hereby determined that the creation of the agency and the29 SB NO. 249
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carrying out of its public functions and corporate purposes is, in all respects, a1
public and governmental purpose for the benefit of the people of the state, and2
for the improvement of their health, safety, welfare, comfort and security and3
that said functions and purposes are public purposes and that the agency will4
be performing an essential governmental function in the exercise of the powers5
conferred upon it by this Chapter.6
B. The money, assets, revenues and operations of the agency shall be7
exempt from all taxation by the state or any of its political subdivisions.8
C. The agency shall not be required to pay any recording fee or transfer9
tax of any kind on account of instruments recorded by it or on its behalf.10
D. All bonds, notes, renewal notes, refunding bonds, interim certificates,11
certificates of indebtedness, debentures or other obligations or evidences of12
indebtedness, hereinafter collectively referred to as "bonds", authorized to be13
issued by the agency pursuant to the provisions of this Chapter, together with14
interest thereon, income therefrom, and gain upon the sale thereof shall be15
exempt from all state and local taxes.16
§600.100. Covenant of state17
In consideration of the acceptance of and payment for the bonds of the18
agency by the holders thereof, the state does hereby pledge to and agree with the19
holders of any bonds of the agency issued pursuant to the provisions of this20
Chapter, that the state will not impair, limit or alter the rights hereby vested in21
the agency to fulfill the terms of any agreements made with the holders of the22
bonds of the agency, or in any way impair the rights or remedies of such holders23
thereof, until such bonds, together with the interest thereon, with interest on24
any unpaid installments of interest, and all costs and expenses in connection25
with any action or proceedings by or on behalf of such holders, are fully met26
and discharged. The agency is authorized to include this pledge and agreement27
of the state in any agreement with the holders of bonds of the agency.28
§600.101. Trust funds29 SB NO. 249
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All monies received by the agency pursuant to the provisions of this1
Chapter shall be deemed to be trust funds, to be held and applied solely to or for2
the public functions and corporate purposes of the agency.3
§600.102. Bonds as legal investment and security for public deposits 4
A. The state and all public officers, any parish or municipality, or other5
subdivision or instrumentality of the state, any bank, banker, trust company,6
savings bank and institution, building and loan association, savings and loan7
association, investment company or any person carrying on a banking or8
investment business, any insurance company or business, insurance associations9
and any person carrying on an insurance business, and any executor,10
administrator, curator, trustee and other fiduciary, and retirement system or11
pension fund may legally invest any sinking funds, monies, or other funds12
belonging to them or within their control in any bonds issued by the agency13
pursuant to the provisions of this Chapter, and such bonds shall be authorized14
security for all public deposits.15
B. It is the purpose of this Section to authorize such persons, firms,16
corporations, associations, political subdivisions and officers, or other entities,17
public or private, to use any funds owned or controlled by them, including, but18
not limited to, sinking, insurance, investment, retirement, compensation,19
pension and trust funds, and funds held on deposit, for the purchase of any such20
bonds of the agency, and that any such bonds shall be authorized security for21
all public deposits. However, nothing contained in this Section with regard to22
legal investments or security for public deposits shall be construed as relieving23
any such person, firm or corporation or other entity from any duty of exercising24
reasonable care in selecting securities.25
§600.103. Accounts and audits26
A. Subject to the provisions of any contract with the holders of its bonds,27
the agency shall establish a system of accounts.28
B. The Legislative Auditor shall prepare an annual audit of the accounts29 SB NO. 249
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and operations of the agency.1
C. The agency shall submit to the governor and to both houses of the2
legislature an annual report on the operations of the agency, together with a3
copy of the report of every audit of the books and accounts of the agency, within4
sixty days from the receipt thereof by the agency.5
§600.104. Cooperation of state agencies 6
All state officers and agencies are authorized to render such services to7
the agency within their respective functions as may be requested by the agency.8
§600.105. Suits to determine validity of bonds 9
Any suit to determine the validity of bonds of the agency shall be brought10
only in accordance with R.S. 13:5121 et seq.11
§600.106. State appropriations or grants 12
The state may make grants or appropriations of money or property to13
the agency for the purpose of enabling it to carry out its public functions and14
corporate purposes.15
§600.107. Termination of agency16
A. The agency and its corporate and public existence shall continue until17
terminated by law, provided that no such law shall take effect so long as the18
agency shall have bonds outstanding, unless adequate provision has been made19
for the payment thereof.20
B. Upon termination of the existence of the agency, all of its rights,21
money, assets and revenues in excess of its obligations shall pass to and be22
vested in the state.23
§600.108. Construction of Chapter 24
This Chapter being necessary for the welfare of the state and its25
residents shall be liberally construed to effect the purposes thereof.26
§600.109. Fees27
A. The corporation may charge application fees, processing fees, closing28
costs, and mortgage and title insurance fees.29 SB NO. 249
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B. The corporation shall in accordance with the Administrative1
Procedure Act, R.S. 49:950, et seq., promulgate the schedule of fees to be2
charged by the corporation in connection with the programs administered by3
it. Such schedule shall be submitted for approval to the Joint Legislative4
Committee on the Budget.5
§600.110. Mortgage foreclosure counseling6
A.(1) The Louisiana Housing Corporation, hereinafter referred to as the7
agency, may establish a program to provide free mortgage foreclosure8
counseling and education to homeowners who have defaulted or are in danger9
of defaulting on the mortgages on their homes.10
(2) If the agency establishes such a program, the agency may work with11
the office of financial institutions and the office of financial institutions shall12
cooperate with the agency to effectuate the purposes of this Section.13
(3) The agency may enter into an agreement with any public, private, or14
nonprofit entity to carry out any part of the mortgage foreclosure counseling15
and education program.16
(4) The program may include a central toll-free telephone number that17
homeowners may call to receive mortgage foreclosure counseling and education.18
(5) The agency may award grants for the training of counselors who will19
provide mortgage foreclosure counseling and education from funds20
appropriated by the legislature for that purpose or any other funding available21
for that purpose.22
(6) The agency may establish standards for the certification of23
counselors who will provide mortgage foreclosure counseling and education.24
B. The program shall be funded through self-generated funds of the25
agency; however, the agency may solicit contributions and grants from the26
private sector, nonprofit entities, and the federal government to assist in27
carrying out the purposes of this Section.28
C. The agency shall annually submit a report to the Senate Committee29 SB NO. 249
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on Commerce, Consumer Protection and International Affairs and the House1
Committee on Commerce on the operation of the mortgage foreclosure2
counseling and education program and shall include a summary of the3
mortgage foreclosure rates and trends in Louisiana and the United States.4
Section 2. R.S. 42:1124.2 is hereby amended and enacted to read as follows: 5
§1124.2. Financial disclosure; certain elected officials; members of certain6
boards and commissions; ethics administrator7
A. Each of the following, except a person who is required to file a8
financial statement pursuant to R.S. 42:1124, shall annually file a financial9
statement as provided in this Section:10
* * *11
(5) Each member of the board of directors of the Louisiana Housing12
Corporation.13
* * *14
Section 3. R.S. 36:769(J), Chapter 3-A. of Title 40 of the Louisiana Revised Statutes15
of 1950, comprised of R.S. 40:600.1 through 600.25.1 and Chapter 3-E. of Title 40 of the16
Louisiana Revised Statutes of 1950, comprised of R.S. 40:600.61 through 600.68 are hereby17
repealed in their entirety.18
Section 4. A. On the effective date of this Act, the Louisiana Housing Finance19
Agency and the Road Home Corporation, also known as the Louisiana Land Trust, herein20
after collectively referred to as the "transferred agencies", shall be abolished and their21
functions transferred to the Louisiana Housing Corporation created by this Act. The creation22
of the Louisiana Housing Corporation under this Act shall not affect or impair in any manner23
contract rights enjoyed by the holders of any outstanding bonds of the transferred agencies24
to the extent required by such contract rights on the property subject to the payment of25
principal of and interest on such bonds shall continue to be levied provided, however, the26
Louisiana Housing Corporation shall assume all indebtedness of the transferred agencies.27
B. The legislature hereby specifically states that this Act is in no way and to no28
extent intended to nor shall it be construed in any manner which will impair the contractual29 SB NO. 249
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or other obligations of the transferred agencies or of the state of Louisiana. It is hereby1
specifically provided that all obligations of the abolished agencies, whose powers, duties,2
functions, and responsibilities are transferred in accordance with this Act, hereafter shall be3
deemed to be the obligations of the Louisiana Housing Corporation and of its commissioners4
or officers to the same extent as if originally made by them. In like manner, and in order to5
prevent any violation of the provisions, terms, or conditions of any gift, donation, deed, will,6
trust, or other instrument or disposition by which property of any kind has been vested in the7
abolished agencies, or diversion from the purposes for which such property was thus vested,8
it is hereby specifically provided that each such instrument or disposition hereafter shall be9
deemed to have been vested in the Louisiana Housing Corporation and its commissioners10
or officers in the same manner and to the same extent as if originally so done.11
C. The Louisiana Housing Corporation and its commissioners or officers shall be the12
successor in every way to each such agency or program in which transfer is provided for in13
this Act, including all of the obligations and debts of each such agency. All funds heretofore14
dedicated by or under authority of the constitution and laws of this state or any of its15
subdivisions to the payment of any bonds issued for construction or improvements for any16
institution or facility under the control of any such agency shall continue to be collected and17
dedicated to the payment of those bonds, unless under the constitution and laws such bonds18
are now being paid out of moneys in the Bond Security and Redemption Fund. In like19
manner, all other dedications and allocations of revenues and sources of revenues heretofore20
made, which are constitutional under the Louisiana Constitution of 1974, shall continue,21
until otherwise hereafter provided by the constitution, in the same manner, to the same22
extent, and for the same purposes as were provided prior to the enactment of this Act. 23
D. This Act shall not be construed or applied in any way which will prevent full24
compliance by the state, or any department, office, or agency thereof, with the requirements25
of any Act of the Congress of the United States or any regulation made thereunder by which26
federal aid or other federal assistance has been or hereafter is made available to this state,27
or any department, office, agency, or subdivision thereof, anything contained in this Act to28
the contrary notwithstanding, and such compliance hereafter shall be accomplished by the29 SB NO. 249
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words in boldface type and underscored are additions.
commissioners or officers insofar as such compliance affects the transferred agencies in1
accordance with the provisions of this Act. 2
E. On the effective date of this Act, the transferred agencies shall be abolished and3
the Louisiana Housing Corporation shall be created. All unfinished business, references in4
laws and documents, employees, property, obligations, and books and records of the5
transferred agencies shall be transferred as provided in this Act. Upon the abolition of the6
transferred agencies, any pending or unfinished business shall be taken over and be7
completed by the Louisiana Housing Corporation with the same power and authorization as8
that of the transferred agencies and the Louisiana Housing Corporation shall be the successor9
in every way to the transferred agencies for the purpose of completing such business. Any10
reference in laws and documents to the transferred agencies shall be deemed to apply to the11
Louisiana Housing Corporation. Any legal proceeding to which the transferred agencies is12
a party and which is filed, initiated, or pending before any court on the effective date of this13
Act, and all documents involved in or affected by said legal proceeding, shall retain their14
effectiveness and shall be continued in the name of the Louisiana Housing Corporation. All15
further legal proceedings and documents in the continuation, disposition, and enforcement16
of such legal proceeding shall be in the name of the Louisiana Housing Corporation, and the17
Louisiana Housing Corporation shall be substituted for the transferred agencies without18
necessity for amendment of any document. This Act shall not be construed so as to impair19
the effectiveness of any rule or policy of the transferred agencies and any such rule or policy20
shall remain effective as provided therein or until changed as otherwise provided by law.21
This Act shall not be construed so as to impair the contractual or other obligations of the22
transferred agencies or of the state of Louisiana. All obligations of the transferred agencies23
shall be the obligations of the Louisiana Housing Corporation. The Louisiana Housing24
Corporation shall be the successor in every way to the transferred agencies, including all of25
its obligations and debts. All dedications and allocations of revenues and sources of revenues26
heretofore made shall continue in the same manner, to the same extent, and for the same27
purposes as were provided prior to the enactment of this Act, unless and until other provision28
is made therefor. This Act shall not be construed or applied in any way which will prevent29 SB NO. 249
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full compliance by the state, or any department, office, or agency thereof, with the1
requirements of any Act of the Congress of the United States or any regulation made2
thereunder by which federal aid or other federal assistance has been or hereafter is made3
available. All books, papers, records, money, actions, and other property of every kind,4
movable and immovable, real and personal, heretofore possessed, controlled, or used by the5
transferred agencies is hereby transferred to the Louisiana Housing Corporation. All6
employees heretofore engaged in the performance of duties of the transferred agencies,7
insofar as practicable and necessary are hereby transferred to the Louisiana Housing8
Corporation and shall continue to perform the duties heretofore performed, subject to9
applicable state civil service laws, rules, and regulations and other applicable laws. Subject10
to such laws, positions in the unclassified service shall remain in the unclassified service.11
Section 5. A. In order to effect an orderly transfer of the programs, powers, duties,12
responsibilities, and functions as provided in this Act, the procedures to be followed for such13
purposes shall be set forth in this Section.14
B. No later than six months from the effective date of this Act, the board of directors15
of the Louisiana Housing Corporation shall be appointed as provided for in this Act.16
C. The full implementation of the transfer of programs, powers, duties,17
responsibilities, and functions necessary to implement the provisions of this Act shall be18
effective not later than six months from the effective date of this Act.19
D.(1) On or after the effective date of this Act, the commissioner of administration,20
the president of the Senate or his designee, and speaker of the House of Representatives or21
his designee shall form a transition committee that shall be terminated no more than six22
months from the effective date of this Act. 23
(2) The transition committee shall determine such workable transition plans for the24
transfer of programs, powers, duties, responsibilities, and functions as shall be necessary to25
implement the provisions of this Act. Such plans shall include detailed procedures for such26
realignment, distribution, assignment, consolidation, and coordination of agencies, programs27
and functions designated within this Act. Such plans shall include detailed procedures for28
the transfer and utilization of positions, personnel, funds, office space, facilities, equipment,29 SB NO. 249
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and such other detail as is necessary to effectuate the purpose of this Act. The transition1
committee shall have the authority to establish subcommittees to report and make2
recommendations with respect to transition plans and their implementation. 3
Section 6. The Louisiana State Law Institute is hereby directed to change all4
references to the "Louisiana Housing Finance Agency", the "Road Home Corporation" or5
the "Louisiana Land Trust" to the "Louisiana Housing Corporation" throughout the6
Louisiana Revised Statute of 1950.7
Section 7. This Act shall become effective upon signature by the governor or, if not8
signed by the governor, upon expiration of the time for bills to become law without signature9
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If10
vetoed by the governor and subsequently approved by the legislature, this Act shall become11
effective on the day following such approval.12
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Mary Dozier O'Brien.
DIGEST
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. SB NO. 249
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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.
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. 36:769(J), R.S. 40:600.1-600.25.1
and 40:600.61-600.68.)