81R3362 JAM-D
By: McClendon H.B. No. 1650
A BILL TO BE ENTITLED
AN ACT
relating to the continuation and functions of the Texas State
Affordable Housing Corporation; providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.5521, Government Code, is amended
to read as follows:
Sec. 2306.5521. SUNSET PROVISION. The Texas State
Affordable Housing Corporation is subject to Chapter 325 (Texas
Sunset Act). Unless continued in existence as provided by that
chapter, the corporation is abolished and this subchapter expires
September 1, 2015 [2009].
SECTION 2. Sections 2306.554(a) and (b), Government Code,
are amended to read as follows:
(a) The board of directors of the corporation consists of
seven [five] members appointed by the governor. One member must
represent the interests of individuals and families served by the
corporation's single-family mortgage loan programs, one member
must represent nonprofit housing organizations, and the remaining
five members must [who] represent one or more [any] of the following
areas:
(1) state or federal savings banks or savings and loan
associations;
(2) community banks with assets of $200 million or
less;
(3) large metropolitan banks with assets of more than
$1 billion;
(4) asset management companies;
(5) mortgage servicing companies;
(6) builders;
(7) real estate developers;
(8) real estate brokers;
(9) community or economic development organizations;
(10) private mortgage companies;
(11) nonprofit housing development companies;
(12) attorneys;
(13) investment bankers;
(14) underwriters;
(15) private mortgage insurance companies;
(16) appraisers;
(17) property management companies;
(18) financial advisors;
(19) nonprofit foundations;
(20) financial advisors; or
(21) any other area of expertise that the governor
finds necessary for the successful operation of the corporation.
(b) The governor shall designate a member of the
corporation's board of directors as the presiding officer of the
[corporation's] board of directors to serve in that capacity at the
pleasure of the governor [from the members].
SECTION 3. Section 2306.5541, Government Code, is amended
to read as follows:
Sec. 2306.5541. TERMS OF MEMBERS. The members of the board
of directors of the corporation serve staggered six-year terms,
with the terms of [one or] two or three members expiring on February
1 of each odd-numbered year.
SECTION 4. Sections 2306.5543(b) and (c), Government Code,
are amended to read as follows:
(b) The training program must provide the person with
information regarding:
(1) the legislation that created the corporation [and
the corporation's board of directors];
(2) the programs, functions, rules, and budget of the
corporation [the programs operated by the corporation];
(3) [the role and functions of the corporation;
[(4) the rules of the corporation with an emphasis on
the rules that relate to disciplinary and investigatory authority;
[(5) the current budget for the corporation;
[(6)] the results of the most recent formal audit of the
corporation;
(4) [(7)] the requirements of laws relating to[:
[(A) the] open meetings, [law, Chapter 551;
[(B) the] public information, [law, Chapter 552;
[(C) the] administrative procedure, and
conflicts of interest [law, Chapter 2001; and
[(D) other laws relating to public officials,
including conflict-of-interest laws]; and
(5) [(8)] any applicable ethics policies adopted by
the corporation or the Texas Ethics Commission.
(c) A person appointed to the corporation's board of
directors is entitled to reimbursement, as [to the same extent]
provided by the General Appropriations Act [for a member of a state
board], for the travel expenses incurred in attending the training
program regardless of whether the attendance at the program occurs
before or after the person qualifies for office.
SECTION 5. Section 2306.5545(b), Government Code, is
amended to read as follows:
(b) A person may not be a member of the corporation's board
of directors and may not be a corporation employee employed in a
"bona fide executive, administrative, or professional capacity,"
as that phrase is used for purposes of establishing an exemption to
the overtime provisions of the federal Fair Labor Standards Act of
1938 (29 U.S.C. Section 201 et seq.), and its subsequent
amendments, if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association in the field of banking,
mortgage lending, real estate, housing development, or housing
construction; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of banking,
mortgage lending, real estate, housing development, or housing
construction.
SECTION 6. Section 2306.559(d), Government Code, is amended
to read as follows:
(d) The report must include:
(1) a statement of support, revenue, and expenses and
change in fund balances;
(2) a statement of functional expenses; [and]
(3) balance sheets for all funds;
(4) the number, amount, and purpose of private gifts,
grants, donations, or other funds applied for and received;
(5) the number, amount, and purpose of loans provided
to affordable housing developers, regardless of whether the
corporation provides those loans directly to the developers or
administers the loans from another source;
(6) the amount and source of funds deposited into any
fund created by the corporation for the purpose of providing grants
and the number, amount, and purpose of any grants provided; and
(7) the total amount of annual revenue generated by
the corporation in excess of its expenditures.
SECTION 7. Subchapter Y, Chapter 2306, Government Code, is
amended by adding Section 2306.5671 to read as follows:
Sec. 2306.5671. COMPLIANCE WITH CONTRACT TERMS. A contract
or agreement between the corporation and a housing sponsor that
receives financing by or through the corporation for the purpose of
providing affordable multifamily housing must contain a provision
stating that if the housing sponsor fails to comply with the terms
of the contract or agreement, the corporation may, as appropriate:
(1) assess administrative penalties;
(2) remove the manager of the affected property and
select a new manager;
(3) withdraw reserve funds to make needed repairs and
replacements to the property; or
(4) appoint the corporation as a receiver to protect
and operate the property.
SECTION 8. Section 2306.568, Government Code, is amended to
read as follows:
Sec. 2306.568. RECORD OF COMPLAINTS. (a) The corporation
shall maintain a system to promptly and efficiently act on
complaints [file on each written complaint] filed with the
corporation. The corporation shall maintain information about
parties to the complaint, [file must include:
[(1) the name of the person who filed the complaint;
[(2) the date the complaint is received by the
corporation;
[(3)] the subject matter of the complaint,[;
[(4) the name of each person contacted in relation to
the complaint;
[(5)] a summary of the results of the review or
investigation of the complaint, and its disposition[; and
[(6) an explanation of the reason the file was closed,
if the corporation closed the file without taking action other than
to investigate the complaint].
(b) The corporation shall make information available
describing its [provide to the person filing the complaint and to
each person who is a subject of the complaint a copy of the
corporation's policies and] procedures for [relating to] complaint
investigation and resolution.
(c) The corporation[, at least quarterly until final
disposition of the complaint,] shall periodically notify the
[person filing the] complaint parties [and each person who is a
subject of the complaint] of the status of the complaint until final
disposition [investigation unless the notice would jeopardize an
undercover investigation].
SECTION 9. Section 2306.569, Government Code, is amended to
read as follows:
Sec. 2306.569. EFFECTIVE USE OF TECHNOLOGY. The
corporation's board of directors shall [develop and] implement a
policy requiring the [president of the] corporation [and
corporation employees] to use [research and propose] appropriate
technological solutions to improve the corporation's ability to
perform its functions. The policy [technological solutions] must[:
[(1)] ensure that the public is able to [easily find
information about the corporation on the Internet;
[(2) ensure that persons who want to use the
corporation's services are able to:
[(A)] interact with the corporation on [through]
the Internet[; and
[(B) access any service that can be provided
effectively through the Internet; and
[(3) be cost-effective and developed through the
corporation's planning processes].
SECTION 10. Section 2306.5671, Government Code, as added by
this Act, does not affect the terms of a contract or agreement
entered into before the effective date of this Act, except that if
the contract or agreement is renewed, modified, or extended on or
after the effective date of this Act, Section 2306.5671 applies to
the contract or agreement beginning on the date of renewal,
modification, or extension.
SECTION 11. (a) Promptly after this Act takes effect, the
governor shall appoint two additional members to the board of
directors of the Texas State Affordable Housing Corporation. In
appointing those members, the governor shall appoint one person to
a term expiring February 1, 2011, and one to a term expiring
February 1, 2013. As provided by Section 2306.554(a), Government
Code, as amended by this Act:
(1) one member appointed under this subsection must
represent the interests of individuals and families served by the
Texas State Affordable Housing Corporation's single-family
mortgage loan programs, unless the governor determines that a
current member of the board of directors represents those persons;
and
(2) one member appointed under this subsection must
represent nonprofit housing organizations, unless the governor
determines that a current member of the board of directors
represents those organizations.
(b) Until all appointees to the board of directors of the
Texas State Affordable Housing Corporation have taken office, a
quorum of the board is a majority of the number of members who are
qualified.
SECTION 12. This Act takes effect September 1, 2009.