Texas 2009 - 81st Regular

Texas House Bill HB2296 Compare Versions

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1	1	By: Davis of Dallas H.B. No. 2296
2	2	Substitute the following for H.B. No. 2296:
3	3	By: Turner of Tarrant C.S.H.B. No. 2296
4	4
5	5
6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to the administration of certain housing funds by the
9	9	Texas Department of Housing and Community Affairs.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 2306.201, Government Code, is amended by
12	12	amending Subsection (b) and adding Subsection (c) to read as
13	13	follows:
14	14	(b) The fund consists of:
15	15	(1) appropriations or transfers made to the fund;
16	16	(2) unencumbered fund balances;
17	17	(3) public or private gifts, [or] grants, or
18	18	donations;
19	19	(4) investment income, including all interest,
20	20	dividends, capital gains, or other income from the investment of
21	21	any portion of the fund;
22	22	(5) repayments received on loans made from the fund;
23	23	and
24	24	(6) funds from any other source.
25	25	(c) The department may accept gifts, grants, or donations
26	26	for the housing trust fund. All funds received for the housing
27	27	trust fund under Subsection (b) shall be deposited or transferred
28	28	into the Texas Treasury Safekeeping Trust Company.
29	29	SECTION 2. Section 2306.202(a), Government Code, is amended
30	30	to read as follows:
31	31	(a) The department, through the housing finance division,
32	32	shall use the housing trust fund to provide loans, grants, or other
33	33	comparable forms of assistance to local units of government, public
34	34	housing authorities, nonprofit organizations, and income-eligible
35	35	individuals, families, and households to finance, acquire,
36	36	rehabilitate, and develop decent, safe, and sanitary housing. In
37	37	each biennium the first $2.6 million available through the housing
38	38	trust fund for loans, grants, or other comparable forms of
39	39	assistance shall be set aside and made available exclusively for
40	40	local units of government, public housing authorities, and
41	41	nonprofit organizations. Any additional funds may also be made
42	42	available to for-profit organizations provided that [so long as] at
43	43	least 45 percent of available funds, as determined on September 1 of
44	44	each state fiscal year, in excess of the first $2.6 million shall be
45	45	made available to nonprofit organizations for the purpose of
46	46	acquiring, rehabilitating, and developing decent, safe, and
47	47	sanitary housing. The remaining portion shall be distributed to
48	48	[competed for by] nonprofit organizations, for-profit
49	49	organizations, and other eligible entities. Notwithstanding any
50	50	other section of this chapter, but subject to the limitations in
51	51	Section 2306.251(c), the department may also use the fund to
52	52	acquire property to endow the fund.
53	53	SECTION 3. Section 2306.203, Government Code, is amended to
54	54	read as follows:
55	55	Sec. 2306.203. RULES REGARDING ADMINISTRATION OF HOUSING
56	56	TRUST FUND. The board shall adopt rules to administer the housing
57	57	trust fund, including rules providing:
58	58	(1) that the division give priority to programs that
59	59	maximize federal resources;
60	60	(2) for a process to set priorities for use of the
61	61	fund, including the distribution of fund resources in accordance
62	62	with a plan that is [under a request for a proposal process]
63	63	developed and approved by the board and included in the
64	64	department's annual report regarding the housing trust fund as
65	65	described in the General Appropriations Act;
66	66	(3) that the criteria used to evaluate a proposed
67	67	activity [rank proposals] will include the:
68	68	(A) leveraging of [federal] resources;
69	69	(B) cost-effectiveness of the [a] proposed
70	70	activity [development]; and
71	71	(C) extent to which individuals and families of
72	72	very low income are served by the proposed activity [development];
73	73	(4) that funds may not be made available for a proposed
74	74	activity [to a development] that permanently and involuntarily
75	75	displaces individuals and families of low income;
76	76	(5) that the board attempt to allocate funds to
77	77	achieve a broad geographical distribution with:
78	78	(A) special emphasis on equitably serving rural
79	79	and nonmetropolitan areas; and
80	80	(B) consideration of the number and percentage of
81	81	income-qualified families in different geographical areas; and
82	82	(6) that multifamily housing developed or
83	83	rehabilitated through the fund remain affordable to
84	84	income-qualified households for at least 20 years.
85	85	SECTION 4. Section 2306.753(b), Government Code, is amended
86	86	to read as follows:
87	87	(b) To be eligible for a loan under this subchapter, an
88	88	owner-builder:
89	89	(1) may not have an annual income that exceeds 60
90	90	percent, as determined by the department, of the greater of the
91	91	state or local median family income, when combined with the income
92	92	of any person who resides with the owner-builder;
93	93	(2) must have resided in this state for the preceding
94	94	six months;
95	95	(3) must have successfully completed an owner-builder
96	96	education class under Section 2306.756; and
97	97	(4) must agree to:
98	98	(A) provide through personal labor at least 65
99	99	[60] percent of the labor necessary to build or rehabilitate the
100	100	proposed housing by working through a state-certified
101	101	owner-builder housing program; [or]
102	102	(B) provide an amount of personal labor
103	103	equivalent to the amount required under Paragraph (A) in connection
104	104	with building or rehabilitating housing for others through a
105	105	state-certified [nonprofit] owner-builder housing program;
106	106	(C) provide through the noncontract labor of
107	107	friends, family, or volunteers and through personal labor at least
108	108	65 percent of the labor necessary to build or rehabilitate the
109	109	proposed housing by working through a state-certified
110	110	owner-builder housing program; or
111	111	(D) if due to documented disability or other
112	112	limiting circumstances as defined by department rule the
113	113	owner-builder cannot provide the amount of personal labor otherwise
114	114	required by this subdivision, provide through the noncontract labor
115	115	of friends, family, or volunteers at least 65 percent of the labor
116	116	necessary to build or rehabilitate the proposed housing by working
117	117	through a state-certified owner-builder housing program.
118	118	SECTION 5. Sections 2306.754(a), (b), and (c), Government
119	119	Code, are amended to read as follows:
120	120	(a) The department may establish the minimum amount of a
121	121	loan under this subchapter, but a loan made by the department may
122	122	not exceed $45,000 [$30,000].
123	123	(b) If it is not possible for an owner-builder to purchase
124	124	necessary real property and build or rehabilitate adequate housing
125	125	for $45,000 [$30,000], the owner-builder must obtain the amount
126	126	necessary that exceeds $45,000 [$30,000] from other sources of
127	127	funds [one or more local governmental entities, nonprofit
128	128	organizations, or private lenders]. The total amount of amortized,
129	129	repayable loans made by the department and other entities to an
130	130	owner-builder under this subchapter may not exceed $90,000
131	131	[$60,000].
132	132	(c) A loan made by the department under this subchapter:
133	133	(1) may not exceed a term of 30 years;
134	134	(2) may bear interest at a fixed rate of not more than
135	135	three percent or bear interest in the following manner:
136	136	(A) no interest for the first two years of the
137	137	loan;
138	138	(B) beginning with the second anniversary of the
139	139	date the loan was made, interest at the rate of one percent a year;
140	140	(C) beginning on the third anniversary of the
141	141	date the loan was made and ending on the sixth anniversary of the
142	142	date the loan was made, interest at a rate that is one percent
143	143	greater than the rate borne in the preceding year; and
144	144	(D) beginning on the sixth anniversary of the
145	145	date the loan was made and continuing through the remainder of the
146	146	loan term, interest at the rate of five percent; and
147	147	(3) shall [may] be secured by:
148	148	(A) a first lien by the department on the real
149	149	property if the loan is the largest amortized, repayable loan
150	150	secured by the real property; or
151	151	(B) a co-first lien or subordinate lien as
152	152	determined by department rule, if the loan is not the largest loan
153	153	as described by Paragraph (A)[, including a lien that is
154	154	subordinate to a lien that secures a loan made under Subsection (b)
155	155	and that is greater than the department's lien].
156	156	SECTION 6. Section 2306.755(a), Government Code, is amended
157	157	to read as follows:
158	158	(a) The department may certify nonprofit owner-builder
159	159	housing programs operated by a tax-exempt organization listed under
160	160	Section 501(c)(3), Internal Revenue Code of 1986, to:
161	161	(1) qualify potential owner-builders for loans under
162	162	this subchapter;
163	163	(2) provide owner-builder education classes under
164	164	Section 2306.756;
165	165	(3) assist owner-builders in building or
166	166	rehabilitating housing; and
167	167	(4) originate or service loans made under this
168	168	subchapter.
169	169	SECTION 7. Section 2306.756(a), Government Code, is amended
170	170	to read as follows:
171	171	(a) A state-certified nonprofit owner-builder housing
172	172	program shall offer owner-builder education classes to potential
173	173	owner-builders. A class under this section must provide
174	174	information on:
175	175	(1) the financial responsibilities of an
176	176	owner-builder under this subchapter, including the consequences of
177	177	an owner-builder's failure to meet those responsibilities;
178	178	(2) the building or rehabilitation of housing by
179	179	owner-builders;
180	180	(3) resources for low-cost building materials
181	181	available to owner-builders; and
182	182	(4) resources for building or rehabilitation
183	183	assistance available to owner-builders.
184	184	SECTION 8. Section 2306.757, Government Code, is amended to
185	185	read as follows:
186	186	Sec. 2306.757. LOAN PRIORITY FOR WAIVER OF LOCAL GOVERNMENT
187	187	FEES. In making loans under this subchapter, the department shall
188	188	give priority to loans to owner-builders who will reside in
189	189	counties or municipalities that agree in writing to waive capital
190	190	recovery fees, building permit fees, inspection fees, or other fees
191	191	related to the building or rehabilitation of the housing to be built
192	192	or improved with the loan proceeds.
193	193	SECTION 9. Section 2306.758(c), Government Code, is amended
194	194	to read as follows:
195	195	(c) In a state fiscal year, the department may use not more
196	196	than 10 percent of the revenue available for purposes of this
197	197	subchapter to enhance the ability of tax-exempt organizations
198	198	described by Section 2306.755(a) to implement the purposes of this
199	199	chapter and to enhance the number of such organizations that are
200	200	able to implement those purposes. The department shall use that
201	201	available revenue to provide financial assistance, technical
202	202	training, and management support for the purposes of this
203	203	subsection.
204	204	SECTION 10. Section 2306.7581(a-1), Government Code, is
205	205	amended to read as follows:
206	206	(a-1) Each state fiscal year the department shall transfer
207	207	at least $3 million to the owner-builder revolving fund from money
208	208	received under the federal HOME Investment Partnerships program
209	209	established under Title II of the Cranston-Gonzalez National
210	210	Affordable Housing Act (42 U.S.C. Section 12701 et seq.), from
211	211	money in the housing trust fund, or from money appropriated by the
212	212	legislature to the department. This subsection expires August 31,
213	213	2020 [2010].
214	214	SECTION 11. (a) The change in law made by this Act in
215	215	amending Sections 2306.202, 2306.203, and 2306.758, Government
216	216	Code, applies beginning with the state fiscal year that begins
217	217	September 1, 2009.
218	218	(b) The change in law made by this Act in amending Sections
219	219	2306.753 and 2306.754, Government Code, applies only to
220	220	owner-builder loans granted by the department on or after the
221	221	effective date of this Act. An owner-builder loan granted before
222	222	the effective date of this Act is governed by the law in effect at
223	223	the time the loan was granted, and the former law is continued in
224	224	effect for that purpose.
225	225	SECTION 12. This Act takes effect immediately if it
226	226	receives a vote of two-thirds of all the members elected to each
227	227	house, as provided by Section 39, Article III, Texas Constitution.
228	228	If this Act does not receive the vote necessary for immediate
229	229	effect, this Act takes effect September 1, 2009.