Texas 2009 - 81st Regular

Texas House Bill HB3430 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R6800 JAM-F
2	2	By: Menendez H.B. No. 3430
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the operation and administration of the owner-builder
8	8	loan program.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 2306.753, Government Code, is amended by
11	11	amending Subsections (a) and (b) and adding Subsection (e) to read
12	12	as follows:
13	13	(a) Subject to this section, the department shall establish
14	14	eligibility requirements for an owner-builder to receive a loan
15	15	under this subchapter. The eligibility requirements must establish
16	16	a priority for loans made under this subchapter to owner-builders
17	17	with an annual income that does not exceed 30 percent, as determined
18	18	by the department, of the greater of the state or local median
19	19	family income, when combined with the income of any person who
20	20	resides with the owner-builder [, as determined under Subsection
21	21	(b)(1), of less than $17,500].
22	22	(b) To be eligible for a loan under this subchapter, an
23	23	owner-builder:
24	24	(1) may not have an annual income that exceeds 60
25	25	percent, as determined by the department, of the greater of the
26	26	state or local median family income, when combined with the income
27	27	of any person who resides with the owner-builder;
28	28	(2) must have resided in this state for the preceding
29	29	six months;
30	30	(3) must have successfully completed an owner-builder
31	31	education class under Section 2306.756; and
32	32	(4) must agree to provide, personally or through the
33	33	noncontract labor of family members related within the third degree
34	34	of consanguinity or second degree of affinity, as determined under
35	35	Subchapter B, Chapter 573:
36	36	(A) [provide] at least 60 percent of the labor
37	37	necessary to build the proposed housing by working through a
38	38	state-certified owner-builder housing program; or
39	39	(B) [provide] an amount of labor equivalent to
40	40	the amount required under Paragraph (A) in connection with building
41	41	housing for others through a state-certified nonprofit
42	42	owner-builder housing program.
43	43	(e) If after the first 210 days of availability in the
44	44	program year the funds set aside under Subsection (d) have not been
45	45	reserved for that purpose, the funds may be made available to other
46	46	eligible applicants under this subchapter.
47	47	SECTION 2. Section 2306.754, Government Code, is amended by
48	48	amending Subsections (a), (b), and (c) and adding Subsection (c-1)
49	49	to read as follows:
50	50	(a) The department may establish the minimum amount of a
51	51	loan under this subchapter, but a loan may not exceed $45,000
52	52	[$30,000].
53	53	(b) If it is not possible for an owner-builder to purchase
54	54	necessary real property and build adequate housing for $45,000
55	55	[$30,000], the owner-builder must obtain the amount necessary that
56	56	exceeds $45,000 [$30,000] from one or more local governmental
57	57	entities, nonprofit organizations, or private lenders. The
58	58	department may not provide directly or indirectly any part of the
59	59	additional amount permitted by this subsection. The total amount
60	60	of loans made by the department and other entities to an
61	61	owner-builder under this subchapter, excluding the amounts of any
62	62	deferred forgivable loans made by a party other than the
63	63	department, may not exceed $90,000 [$60,000].
64	64	(c) A loan made by the department under this subchapter:
65	65	(1) may not exceed a term of 30 years;
66	66	(2) may bear interest at a fixed rate of not more than
67	67	three percent or bear interest in the following manner:
68	68	(A) no interest for the first two years of the
69	69	loan;
70	70	(B) beginning with the second anniversary of the
71	71	date the loan was made, interest at the rate of one percent a year;
72	72	(C) beginning on the third anniversary of the
73	73	date the loan was made and ending on the sixth anniversary of the
74	74	date the loan was made, interest at a rate that is one percent
75	75	greater than the rate borne in the preceding year; and
76	76	(D) beginning on the sixth anniversary of the
77	77	date the loan was made and continuing through the remainder of the
78	78	loan term, interest at the rate of five percent; and
79	79	(3) must [may] be secured by a lien on the real
80	80	property.
81	81	(c-1) A department lien under Subsection (c)(3) may be [,
82	82	including a lien that is] subordinate to a lien that secures a loan
83	83	made by another party under Subsection (b) only if the original
84	84	principle amount of the loan made under Subsection (b) exceeds 55
85	85	percent of the total loan amount, excluding the amounts of any
86	86	deferred forgivable loans made by the other party [and that is
87	87	greater than the department's lien].
88	88	SECTION 3. Section 2306.758(a), Government Code, is amended
89	89	to read as follows:
90	90	(a) The department may [shall] solicit gifts and grants to
91	91	make loans under this subchapter.
92	92	SECTION 4. The changes in law made by this Act apply only to
93	93	a loan application submitted to the Texas Department of Housing and
94	94	Community Affairs on or after the effective date of this Act. A
95	95	loan application submitted to the department before the effective
96	96	date of this Act is governed by the law in effect on the date the
97	97	application was submitted, and the former law is continued in
98	98	effect for that purpose.
99	99	SECTION 5. This Act takes effect September 1, 2009.