Texas 2009 - 81st Regular

Texas Senate Bill SB1861 Compare Versions

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1	1	81R34757 ACP/JAM-F
2	2	By: Ellis S.B. No. 1861
3	3	Substitute the following for S.B. No. 1861:
4	4	By: Alvarado C.S.S.B. No. 1861
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the transfer of powers, duties, and programs to, and the
10	10	continuation of, the Texas Department of Housing and Community
11	11	Affairs, to the establishment and administration of certain other
12	12	programs and divisions within the department, and to other
13	13	provisions relating to fair or affordable housing.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Section 2306.001, Government Code, is amended to
16	16	read as follows:
17	17	Sec. 2306.001. PURPOSES. The purposes of the department
18	18	are to:
19	19	(1) assist local governments in:
20	20	(A) providing essential public services for
21	21	their residents; and
22	22	(B) overcoming financial, social, and
23	23	environmental problems;
24	24	(2) provide for the housing needs of individuals and
25	25	families of low, very low, and extremely low income and families of
26	26	moderate income;
27	27	(3) contribute to the preservation, development, and
28	28	redevelopment of neighborhoods and communities, including
29	29	cooperation in the preservation of government-assisted housing
30	30	occupied by individuals and families of very low and extremely low
31	31	income;
32	32	(4) assist the governor and the legislature in
33	33	coordinating federal and state programs affecting local
34	34	government;
35	35	(5) inform state officials and the public of the needs
36	36	of local government;
37	37	(6) serve as the lead agency for:
38	38	(A) addressing at the state level the problem of
39	39	homelessness in this state;
40	40	(B) coordinating interagency efforts to address
41	41	homelessness; and
42	42	(C) addressing at the state level and
43	43	coordinating interagency efforts to address any problem associated
44	44	with homelessness, including hunger; [and]
45	45	(7) serve as a source of information to the public
46	46	regarding all affordable housing resources and community support
47	47	services in the state; and
48	48	(8) administer programs to achieve the purposes
49	49	described by this section and implement procedures to improve the
50	50	efficiency of those programs and to maximize federal funding.
51	51	SECTION 2. Section 2306.022, Government Code, is amended to
52	52	read as follows:
53	53	Sec. 2306.022. APPLICATION OF SUNSET ACT. The Texas
54	54	Department of Housing and Community Affairs is subject to Chapter
55	55	325 (Texas Sunset Act). Unless continued in existence as provided
56	56	by that chapter, the department is abolished and this chapter
57	57	expires September 1, 2013 [2011].
58	58	SECTION 3. Section 2306.041, Government Code, is amended to
59	59	read as follows:
60	60	Sec. 2306.041. IMPOSITION OF PENALTY. The board shall
61	61	[may] impose an administrative penalty on a person who violates
62	62	this chapter or a rule or order adopted under this chapter.
63	63	SECTION 4. Subchapter C, Chapter 2306, Government Code, is
64	64	amended by adding Section 2306.058 to read as follows:
65	65	Sec. 2306.058. TRANSITION PLAN FOR CERTAIN POWERS, DUTIES,
66	66	AND PROGRAMS; RULES. (a) The director by rule shall adopt a
67	67	transition plan for the department's assumption of the former
68	68	powers and duties of the Texas State Affordable Housing Corporation
69	69	under Section 2306.551. The transition plan must:
70	70	(1) include a timetable with specific steps and
71	71	deadlines needed to fully complete the transfer; and
72	72	(2) ensure that the transfer is fully implemented not
73	73	later than January 1, 2010.
74	74	(b) The director may adopt rules necessary to improve the
75	75	efficiency or effectiveness of any program that is transferred to
76	76	the department as a result of the department's assumption of the
77	77	former powers and duties of the Texas State Affordable Housing
78	78	Corporation under Section 2306.551, including rules that provide
79	79	for consolidating the operation of programs already administered by
80	80	the department and a program or programs that are transferred to the
81	81	department from the Texas State Affordable Housing Corporation.
82	82	(c) Notwithstanding Subsection (b), the director may not
83	83	consolidate or eliminate the programs administered under Sections
84	84	2306.562 and 2306.5621.
85	85	SECTION 5. Subchapter D, Chapter 2306, Government Code, is
86	86	amended by adding Sections 2306.0725 and 2306.084 to read as
87	87	follows:
88	88	Sec. 2306.0725. LONG-RANGE LOW INCOME HOUSING PLAN.
89	89	(a) The director shall prepare and submit to the board an
90	90	integrated long-range state low income housing plan covering at
91	91	least six years.
92	92	(b) Not later than the 30th day after the date the board
93	93	receives and approves the plan, the board shall submit the plan to
94	94	the governor, the lieutenant governor, and the speaker of the house
95	95	of representatives.
96	96	(c) The plan must establish policy goals for meeting low
97	97	income housing needs on a statewide and regional basis and
98	98	prescribe strategies to meet those goals. The plan must include:
99	99	(1) an estimate and analysis of the housing needs of
100	100	the following populations in each uniform state service region:
101	101	(A) individuals and families of moderate, low,
102	102	very low, and extremely low income;
103	103	(B) individuals with special needs, with
104	104	specific emphasis on the needs of elderly individuals and
105	105	individuals with disabilities; and
106	106	(C) homeless individuals;
107	107	(2) a proposal to use all available housing resources
108	108	to address the housing needs of the populations described by
109	109	Subdivision (1) by establishing funding levels for all
110	110	housing-related programs;
111	111	(3) an estimate of the number of federally assisted
112	112	housing units available for individuals and families of low and
113	113	very low income and individuals with special needs in each uniform
114	114	state service region;
115	115	(4) a description of state programs that govern the
116	116	use of all available housing resources;
117	117	(5) a resource allocation plan that targets all
118	118	available housing resources to individuals and families of low and
119	119	very low income and individuals with special needs in each uniform
120	120	state service region;
121	121	(6) a description of the department's efforts to
122	122	monitor and analyze the unused or underused federal resources of
123	123	other state agencies for housing-related services and services for
124	124	homeless individuals and the department's recommendations to
125	125	ensure the full use by the state of all available federal resources
126	126	for those services in each uniform state service region;
127	127	(7) strategies to provide housing for individuals and
128	128	families with special needs in each uniform state service region;
129	129	(8) a description of the department's efforts to
130	130	encourage in each uniform state service region the construction of
131	131	housing units that incorporate energy efficient construction and
132	132	appliances;
133	133	(9) an estimate and analysis of the housing supply in
134	134	each uniform state service region;
135	135	(10) an inventory of all publicly and, where possible,
136	136	privately funded housing resources, including public housing
137	137	authorities, housing finance corporations, community housing
138	138	development organizations, and community action agencies;
139	139	(11) strategies for meeting rural housing needs;
140	140	(12) an action plan for colonias that addresses
141	141	current policy goals for colonia programs, strategies to meet the
142	142	policy goals, and the projected outcomes with respect to the policy
143	143	goals; and
144	144	(13) strategies for eliminating redundant and
145	145	inefficient practices.
146	146	(d) The priorities and policies in each housing plan adopted
147	147	by the department must be consistent to the extent practical with
148	148	the priorities and policies established in the long-range state low
149	149	income housing plan.
150	150	(e) The director may subdivide the uniform state service
151	151	regions as necessary for purposes of the long-range state low
152	152	income housing plan.
153	153	Sec. 2306.084. GENERAL ENFORCEMENT AUTHORITY; STUDY. (a)
154	154	The department shall develop and implement procedures to ensure
155	155	that all programs administered by the department comply with the
156	156	requirements of this chapter and applicable federal laws.
157	157	(b) The department shall conduct a study to determine
158	158	whether the creation of new programs or expansion of existing
159	159	services would improve the department's ability to perform the
160	160	duties assigned by this chapter.
161	161	SECTION 6. Subchapter E, Chapter 2306, Government Code, is
162	162	amended by adding Sections 2306.095, 2306.096, 2306.0971, and
163	163	2306.0972 to read as follows:
164	164	Sec. 2306.095. FINANCIAL ASSISTANCE FOR LOCAL INITIATIVES
165	165	REGARDING THE HOMELESS. (a) The department shall provide
166	166	financial assistance to political subdivisions, housing finance
167	167	corporations, for-profit corporations, and nonprofit organizations
168	168	that provide services for individuals and families who are
169	169	homeless.
170	170	(b) Assistance provided under this section must be used only
171	171	to support local initiatives regarding homeless individuals and
172	172	families.
173	173	(c) The department shall seek any federal funding available
174	174	for the purposes of the program.
175	175	(d) The department may adopt rules to administer this
176	176	section.
177	177	Sec. 2306.096. HOMELESS GRANT PROGRAM. (a) The department
178	178	shall provide grants, supportive housing services, and housing
179	179	retention services to support services offered to homeless persons
180	180	by political subdivisions, housing finance corporations,
181	181	for-profit corporations, and nonprofit organizations.
182	182	(b) Grants made under this section must be used only for
183	183	support services for homeless persons, including:
184	184	(1) case management;
185	185	(2) job training, placement, and retention;
186	186	(3) housing placement and retention; and
187	187	(4) mental health services.
188	188	(c) The department may adopt rules to administer this
189	189	section.
190	190	Sec. 2306.0971. SUPPLEMENTAL ASSISTANCE PROGRAM FOR
191	191	CERTAIN WEATHERIZATION-RELATED MEASURES. (a) In addition to the
192	192	Energy Services Program for Low-Income Individuals established
193	193	under Section 2306.097, the department shall establish a program
194	194	that provides financial assistance for residential
195	195	weatherization-related measures that do not qualify for federal
196	196	funds under the weatherization assistance program for low-income
197	197	persons but that, if performed, would allow a person to receive that
198	198	federal assistance.
199	199	(b) The department by rule shall establish eligibility
200	200	criteria for a person to receive financial assistance for
201	201	residential weatherization-related measures described by
202	202	Subsection (a). The criteria must ensure that any
203	203	weatherization-related measures performed will allow a person to
204	204	receive federal assistance under the weatherization assistance
205	205	program. The income criteria must be equivalent to the income
206	206	criteria for a person to receive federal assistance under the
207	207	weatherization assistance program.
208	208	Sec. 2306.0972. WEATHERIZATION PILOT PROGRAM. (a) The
209	209	department may establish a pilot program to study the effectiveness
210	210	of weatherization measures in increasing residential energy
211	211	efficiency for individuals and families of low income.
212	212	(b) If the department establishes a pilot program under this
213	213	section, not later than December 1, 2010, the department shall
214	214	submit a report to the legislature regarding its findings and
215	215	recommendations under the pilot program.
216	216	(c) This section expires September 1, 2011.
217	217	SECTION 7. Section 2306.111(d-1), Government Code, is
218	218	amended to read as follows:
219	219	(d-1) In allocating low income housing tax credit
220	220	commitments under Subchapter DD, the department shall, before
221	221	applying the regional allocation formula prescribed by Section
222	222	2306.1115, set aside for at-risk developments, as defined by
223	223	Section 2306.6702, not less than the minimum amount of housing tax
224	224	credits required under Section 2306.6714. Funds or credits are
225	225	also not required to be allocated according to the regional
226	226	allocation formula under Subsection (d) if:
227	227	(1) the funds or credits are reserved for
228	228	contract-for-deed conversions or for set-asides mandated by state
229	229	or federal law, including the nonprofit set-aside mandated by
230	230	Section 42(h)(5), Internal Revenue Code of 1986 (26 U.S.C. Section
231	231	42(h)(5)), and each contract-for-deed allocation or set-aside
232	232	allocation equals not more than 10 percent of the total allocation
233	233	of funds or credits for the applicable program;
234	234	(2) the funds or credits are allocated by the
235	235	department primarily to serve persons with disabilities; or
236	236	(3) the funds are housing trust funds administered by
237	237	the department under Sections 2306.201-2306.206 that are not
238	238	otherwise required to be set aside under state or federal law and do
239	239	not exceed $3 million during each application cycle.
240	240	SECTION 8. Section 2306.1114(a), Government Code, is
241	241	amended to read as follows:
242	242	(a) Not later than the 14th day after the date an
243	243	application or a proposed application for housing funds described
244	244	by Section 2306.111 has been filed, the department shall provide
245	245	written notice of the filing of the application or proposed
246	246	application to the following persons:
247	247	(1) the United States representative who represents
248	248	the community containing the development described in the
249	249	application;
250	250	(2) members of the legislature who represent the
251	251	community containing the development described in the application;
252	252	(3) the presiding officer of the governing body of the
253	253	political subdivision containing the development described in the
254	254	application;
255	255	(4) any member of the governing body of a political
256	256	subdivision who represents the area containing the development
257	257	described in the application;
258	258	(5) the superintendent and the presiding officer of
259	259	the board of trustees of the school district containing the
260	260	development described in the application; and
261	261	(6) any neighborhood organizations on record with the
262	262	state, municipality, or county in which the development described
263	263	in the application is to be located and whose boundaries contain the
264	264	proposed development site.
265	265	SECTION 9. Subchapter F, Chapter 2306, Government Code, is
266	266	amended by adding Section 2306.122 to read as follows:
267	267	Sec. 2306.122. ASSISTANCE FROM AMERICAN RECOVERY AND
268	268	REINVESTMENT ACT OF 2009. (a) To the extent permitted by federal
269	269	law, in administering money provided to the department under the
270	270	American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5),
271	271	the department shall secure the interests of the state through
272	272	bonds, retention of ownership interests in the affected properties,
273	273	or restrictive covenants or liens filed in real property records
274	274	for the affected properties.
275	275	(b) The interests of the state must be secured with respect
276	276	to the use of federal money described by Subsection (a) until the
277	277	department and the state do not have any specified liability to
278	278	repay or recapture that money.
279	279	SECTION 10. Subchapter K, Chapter 2306, Government Code, is
280	280	amended by adding Section 2306.260 to read as follows:
281	281	Sec. 2306.260. USE OF CERTAIN FEDERAL ASSISTANCE TO FUND
282	282	PILOT PROGRAMS. The department may fund existing pilot programs or
283	283	create new pilot programs as appropriate using federal supplemental
284	284	appropriations under the American Recovery and Reinvestment Act of
285	285	2009 (Pub. L. No. 111-5) or any other similar federal legislation
286	286	that is enacted on or after January 1, 2009. This section expires
287	287	December 31, 2011.
288	288	SECTION 11. Subchapter Y, Chapter 2306, Government Code, is
289	289	amended by amending Section 2306.551 and adding Section 2306.5511
290	290	to read as follows:
291	291	Sec. 2306.551. TRANSFER OF CORPORATION POWERS AND DUTIES
292	292	AND ASSETS. (a) The powers and duties of the corporation under
293	293	this chapter or other law are transferred to the Texas Department of
294	294	Housing and Community Affairs.
295	295	(b) The corporation shall transfer to the Texas Department
296	296	of Housing and Community Affairs:
297	297	(1) all assets owned or distributed by the
298	298	corporation, including any real or personal property owned by the
299	299	corporation and any bond revenue distributed by the corporation;
300	300	(2) all records related to the operation of any home
301	301	loan programs under this chapter; and
302	302	(3) any applications pending with the corporation on
303	303	the date the corporation is dissolved by the board of the
304	304	corporation.
305	305	(c) The board of the corporation shall:
306	306	(1) take all necessary actions to dissolve the
307	307	corporation; and
308	308	(2) at the request of the director, assist the
309	309	director in formulating the transition plan under Section 2306.058.
310	310	Sec. 2306.5511. DEFINITION; CONSTRUCTION OF OTHER LAW. (a)
311	311	In this subchapter, "corporation" means the Texas State Affordable
312	312	Housing Corporation.
313	313	(b) A reference in law to the corporation is a reference to
314	314	the Texas Department of Housing and Community Affairs.
315	315	SECTION 12. Section 2306.557, Government Code, is amended
316	316	to read as follows:
317	317	Sec. 2306.557. DISTRIBUTION OF EARNINGS. (a) Any part of
318	318	earnings remaining after payment of expenses and any establishment
319	319	of reserves by the corporation's board of directors may not inure to
320	320	any person except that the corporation shall use these excess
321	321	earnings to further the corporation's new or existing affordable
322	322	housing initiatives if the corporation's board of directors
323	323	determines that sufficient provision has been made for the full
324	324	payment of the expenses, bonds, and other obligations of the
325	325	corporation and for any establishment of reserves by the
326	326	corporation's board of directors.
327	327	(b) Notwithstanding any provision to the contrary, all
328	328	earnings from bonds issued under Section 2306.5551, 2306.562,
329	329	2306.5621, or 2306.565 shall be allocated to the homeless grant
330	330	program under Section 2306.095.
331	331	SECTION 13. Section 2306.6703(a), Government Code, is
332	332	amended to read as follows:
333	333	(a) An application is ineligible for consideration under
334	334	the low income housing tax credit program if:
335	335	(1) at the time of application or at any time during
336	336	the two-year period preceding the date the application round
337	337	begins, the applicant or a related party is or has been:
338	338	(A) a member of the board; or
339	339	(B) the director, a deputy director, the director
340	340	of housing programs, the director of compliance, the director of
341	341	underwriting, or the low income housing tax credit program manager
342	342	employed by the department;
343	343	(2) the applicant proposes to replace in less than 15
344	344	years any private activity bond financing of the development
345	345	described by the application, unless:
346	346	(A) at least one-third of all the units in the
347	347	development are public housing units or Section 8 project-based
348	348	units and the applicant proposes to maintain for a period of 30
349	349	years or more 100 percent of the [development] units supported by
350	350	housing tax credits as rent-restricted and exclusively for
351	351	occupancy by individuals and families earning not more than 50
352	352	percent of the area median income, adjusted for family size[; and
353	353	[(B) at least one-third of all the units in the
354	354	development are public housing units or Section 8 project-based
355	355	units];
356	356	(B) the applicable private activity bonds will be
357	357	redeemed only in an amount consistent with their proportionate
358	358	amortization; or
359	359	(C) if the redemption of the applicable private
360	360	activity bonds will occur in the first five years of the operation
361	361	of the development and will reduce the amount of bonds outstanding
362	362	to less than 50 percent of the cost of the real property plus
363	363	depreciable basis:
364	364	(i) the Bond Review Board determines that
365	365	there will be money available to fund all other multifamily
366	366	developments financed by the bonds without requiring any reduction
367	367	in the financing for those developments;
368	368	(ii) the applicable private activity bonds
369	369	will be redeemed according to underwriting criteria established by
370	370	the department; and
371	371	(iii) the applicable private activity bonds
372	372	will be redeemed only in an amount necessary to ensure the financial
373	373	feasibility of the development described by the application;
374	374	(3) the applicant proposes to construct a new
375	375	development that is located one linear mile or less from a
376	376	development that:
377	377	(A) serves the same type of household as the new
378	378	development, regardless of whether the developments serve
379	379	families, elderly individuals, or another type of household;
380	380	(B) has received an allocation of housing tax
381	381	credits for new construction at any time during the three-year
382	382	period preceding the date the application round begins; and
383	383	(C) has not been withdrawn or terminated from the
384	384	low income housing tax credit program; or
385	385	(4) the development is located in a municipality or,
386	386	if located outside a municipality, a county that has more than twice
387	387	the state average of units per capita supported by housing tax
388	388	credits or private activity bonds, unless the applicant:
389	389	(A) has obtained prior approval of the
390	390	development from the governing body of the appropriate municipality
391	391	or county containing the development; and
392	392	(B) has included in the application a written
393	393	statement of support from that governing body referencing this
394	394	section and authorizing an allocation of housing tax credits for
395	395	the development.
396	396	SECTION 14. Section 2306.6704(b-1), Government Code, is
397	397	amended to read as follows:
398	398	(b-1) The preapplication process must require the applicant
399	399	to provide the department with evidence that the applicant has
400	400	notified the following entities with respect to the filing of the
401	401	application:
402	402	(1) any neighborhood organizations on record with the
403	403	state, municipality, or county in which the development is to be
404	404	located and whose boundaries contain the proposed development site;
405	405	(2) the superintendent and the presiding officer of
406	406	the board of trustees of the school district containing the
407	407	development;
408	408	(3) the presiding officer of the governing body of any
409	409	municipality containing the development and all elected members of
410	410	that body;
411	411	(4) the presiding officer of the governing body of the
412	412	county containing the development and all elected members of that
413	413	body; and
414	414	(5) the state senator and state representative of the
415	415	district containing the development.
416	416	SECTION 15. Section 2306.6705, Government Code, is amended
417	417	to read as follows:
418	418	Sec. 2306.6705. GENERAL APPLICATION REQUIREMENTS. An
419	419	application must contain at a minimum the following written,
420	420	detailed information in a form prescribed by the board:
421	421	(1) a description of:
422	422	(A) the financing plan for the development,
423	423	including any nontraditional financing arrangements;
424	424	(B) the use of funds with respect to the
425	425	development;
426	426	(C) the funding sources for the development,
427	427	including:
428	428	(i) construction, permanent, and bridge
429	429	loans; and
430	430	(ii) rents, operating subsidies, and
431	431	replacement reserves; and
432	432	(D) the commitment status of the funding sources
433	433	for the development;
434	434	(2) if syndication costs are included in the eligible
435	435	basis, a justification of the syndication costs for each cost
436	436	category by an attorney or accountant specializing in tax matters;
437	437	(3) from a syndicator or a financial consultant of the
438	438	applicant, an estimate of the amount of equity dollars expected to
439	439	be raised for the development in conjunction with the amount of
440	440	housing tax credits requested for allocation to the applicant,
441	441	including:
442	442	(A) pay-in schedules; and
443	443	(B) syndicator consulting fees and other
444	444	syndication costs;
445	445	(4) if rental assistance, an operating subsidy, or an
446	446	annuity is proposed for the development, any related contract or
447	447	other agreement securing those funds and an identification of:
448	448	(A) the source and annual amount of the funds;
449	449	(B) the number of units receiving the funds; and
450	450	(C) the term and expiration date of the contract
451	451	or other agreement;
452	452	(5) if the development is located within the
453	453	boundaries of a political subdivision with a zoning ordinance,
454	454	evidence in the form of a letter from the chief executive officer of
455	455	the political subdivision or from another local official with
456	456	jurisdiction over zoning matters that states that:
457	457	(A) the development is permitted under the
458	458	provisions of the ordinance that apply to the location of the
459	459	development; or
460	460	(B) the applicant is in the process of seeking
461	461	the appropriate zoning and has signed and provided to the political
462	462	subdivision a release agreeing to hold the political subdivision
463	463	and all other parties harmless in the event that the appropriate
464	464	zoning is denied;
465	465	(6) if an occupied development is proposed for
466	466	rehabilitation:
467	467	(A) an explanation of the process used to notify
468	468	and consult with the tenants in preparing the application;
469	469	(B) a relocation plan outlining:
470	470	(i) relocation requirements; and
471	471	(ii) a budget with an identified funding
472	472	source; and
473	473	(C) if applicable, evidence that the relocation
474	474	plan has been submitted to the appropriate local agency;
475	475	(7) a certification of the applicant's compliance with
476	476	appropriate state and federal laws, as required by other state law
477	477	or by the board;
478	478	(8) any other information required by the board in the
479	479	qualified allocation plan; and
480	480	(9) evidence that the applicant has notified the
481	481	following entities with respect to the filing of the application:
482	482	(A) any neighborhood organizations on record
483	483	with the state, municipality, or county in which the development is
484	484	to be located and whose boundaries contain the proposed development
485	485	site;
486	486	(B) the superintendent and the presiding officer
487	487	of the board of trustees of the school district containing the
488	488	development;
489	489	(C) the presiding officer of the governing body
490	490	of any municipality containing the development and all elected
491	491	members of that body;
492	492	(D) the presiding officer of the governing body
493	493	of the county containing the development and all elected members of
494	494	that body; and
495	495	(E) the state senator and state representative of
496	496	the district containing the development.
497	497	SECTION 16. Sections 2306.6710(b) and (f), Government Code,
498	498	are amended to read as follows:
499	499	(b) If an application satisfies the threshold criteria, the
500	500	department shall score and rank the application using a point
501	501	system that:
502	502	(1) prioritizes in descending order criteria
503	503	regarding:
504	504	(A) financial feasibility of the development
505	505	based on the supporting financial data required in the application
506	506	that will include a project underwriting pro forma from the
507	507	permanent or construction lender;
508	508	(B) quantifiable community participation with
509	509	respect to the development, evaluated on the basis of written
510	510	statements from any neighborhood organizations on record with the
511	511	state, municipality, or county in which the development is to be
512	512	located and whose boundaries contain the proposed development site;
513	513	(C) the income levels of tenants of the
514	514	development;
515	515	(D) the size and quality of the units;
516	516	(E) the commitment of development funding by
517	517	local political subdivisions;
518	518	(F) the level of community support in connection
519	519	with [for] the application, evaluated on the basis of written
520	520	statements from the state representative or the state senator that
521	521	represents the district containing the proposed development site;
522	522	(G) the rent levels of the units;
523	523	(H) the cost of the development by square foot;
524	524	(I) the services to be provided to tenants of the
525	525	development; and
526	526	(J) whether, at the time the complete application
527	527	is submitted or at any time within the two-year period preceding the
528	528	date of submission, the proposed development site is located in an
529	529	area declared to be a disaster under Section 418.014;
530	530	(2) uses criteria imposing penalties on applicants or
531	531	affiliates who have requested extensions of department deadlines
532	532	relating to developments supported by housing tax credit
533	533	allocations made in the application round preceding the current
534	534	round or a developer or principal of the applicant that has been
535	535	removed by the lender, equity provider, or limited partners for its
536	536	failure to perform its obligations under the loan documents or
537	537	limited partnership agreement; and
538	538	(3) encourages applicants to provide free notary
539	539	public service to the residents of the developments for which the
540	540	allocation of housing tax credits is requested.
541	541	(f) In evaluating the level of community support in
542	542	connection with [for] an application under Subsection (b)(1)(F),
543	543	the department shall award:
544	544	(1) positive points for positive written statements
545	545	received in support of the application;
546	546	(2) negative points for negative written statements
547	547	received in opposition to the application; [and]
548	548	(3) one-half of one positive point for each written
549	549	statement received that generally supports affordable housing in
550	550	the district containing the proposed development site, except that
551	551	the total number of positive points awarded under this subdivision
552	552	may not exceed the total number of positive points awarded under
553	553	Subdivision (1); and
554	554	(4) one-half of one negative point for each written
555	555	statement received that expresses no additional need for affordable
556	556	housing in the district containing the proposed development site,
557	557	except that the total number of negative points awarded under this
558	558	subdivision may not exceed the total number of negative points
559	559	awarded under Subdivision (2) [zero points for neutral statements
560	560	received].
561	561	SECTION 17. Section 2306.6711, Government Code, is amended
562	562	by amending Subsection (b) and adding Subsection (g) to read as
563	563	follows:
564	564	(b) Not later than the deadline specified in the qualified
565	565	allocation plan, the board shall issue commitments for available
566	566	housing tax credits based on the application evaluation process
567	567	provided by Section 2306.6710. The board may not allocate to an
568	568	applicant housing tax credits in any unnecessary amount, as
569	569	determined by the department's underwriting policy and by federal
570	570	law, and in any event may not, except as permitted by Subsection
571	571	(g), allocate to the applicant housing tax credits in an amount
572	572	greater than $3 [$2] million in a single application round.
573	573	(g) Beginning in 2012, on January 1 of each even-numbered
574	574	year, the department may adjust the maximum amount of the
575	575	allocation prescribed by Subsection (b) by an amount equal to the
576	576	amount prescribed by that subsection multiplied by the percentage
577	577	change during the preceding state fiscal biennium in the Consumer
578	578	Price Index for All Urban Consumers (CPI-U), U.S. City Average,
579	579	published monthly by the United States Bureau of Labor Statistics,
580	580	or its successor in function. The department shall publish the new
581	581	amount in the qualified allocation plan.
582	582	SECTION 18. Subchapter DD, Chapter 2306, Government Code,
583	583	is amended by adding Sections 2306.6736 and 2306.6737 to read as
584	584	follows:
585	585	Sec. 2306.6736. LOW INCOME HOUSING TAX CREDITS FINANCED
586	586	UNDER AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009. (a) Except
587	587	as provided by Subsection (b), a reference in this chapter to the
588	588	administration of the low income housing tax credit program applies
589	589	to federally administered money:
590	590	(1) received by the department under the American
591	591	Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5), or any
592	592	similar federal legislation that is enacted on or after January 1,
593	593	2009; and
594	594	(2) that is required to be allocated by the department
595	595	in the same manner and subject to the same limitations as
596	596	allocations of housing tax credits.
597	597	(b) Notwithstanding any other provision of this chapter,
598	598	including Sections 2306.1111 and 2306.6724, the department may
599	599	establish a separate application procedure for money described by
600	600	Subsection (a), the application period of which must begin on the
601	601	date the department begins accepting applications for the money and
602	602	must continue until all the available money is allocated.
603	603	(c) This section expires August 31, 2011.
604	604	Sec. 2306.6737. PROHIBITED PRACTICES. (a) Notwithstanding
605	605	any other law, a development owner of a development supported with a
606	606	housing tax credit allocation may not:
607	607	(1) lock out or threaten to lock out any person
608	608	residing in the development except by judicial process unless the
609	609	exclusion results from:
610	610	(A) a necessity to perform bona fide repairs or
611	611	construction work; or
612	612	(B) an emergency; or
613	613	(2) seize or threaten to seize the personal property
614	614	of any person residing in the development except by judicial
615	615	process unless the resident has abandoned the premises.
616	616	(b) Each development owner shall:
617	617	(1) include a conspicuous provision in the lease
618	618	agreement prohibiting the owner from engaging in a practice
619	619	described by Subsection (a); and
620	620	(2) remove in the manner specified by department rule
621	621	any provisions in the lease agreement that are contrary to
622	622	Subsection (a).
623	623	SECTION 19. Chapter 2306, Government Code, is amended by
624	624	adding Subchapter NN to read as follows:
625	625	SUBCHAPTER NN. TEXAS AFFORDABLE HOUSING INITIATIVE
626	626	Sec. 2306.1081. PURPOSE. The purpose of this subchapter is
627	627	to promote housing independence and prevent unnecessary and
628	628	expensive institutionalization of the state's extremely low income
629	629	elderly and homeless populations and persons with disabilities.
630	630	Sec. 2306.1082. DEFINITIONS. In this subchapter:
631	631	(1) "Elderly person" means a person 62 years of age or
632	632	older or of an age specified by the applicable federal program.
633	633	(2) "Extremely low income" means a household with a
634	634	combined income that is not more than 30 percent of the area median
635	635	income or applicable federal poverty line, as determined under
636	636	Section 2306.123 or 2306.1231.
637	637	(3) "Initiative plan" means the single unified plan
638	638	developed by the task force under Section 2306.1087.
639	639	(4) "Noninstitutionalized housing" means a privately
640	640	owned home, apartment, or group home.
641	641	(5) "Participating agency" means the Texas Department
642	642	of Housing and Community Affairs, the Health and Human Services
643	643	Commission, the Department of State Health Services, the Department
644	644	of Aging and Disability Services, the Public Utility Commission of
645	645	Texas, the Department of Assistive and Rehabilitative Services, or
646	646	the Office of Rural Community Affairs.
647	647	(6) "Service-enriched housing" means a living
648	648	arrangement that provides health services or social services, or
649	649	both, in an accessible, supportive environment.
650	650	(7) "Task force" means the Texas Affordable Housing
651	651	Initiative Task Force.
652	652	Sec. 2306.1083. ADMINISTRATIVE AND RULEMAKING AUTHORITY.
653	653	(a) A regulatory official has broad authority to administer,
654	654	interpret, and enforce this subchapter.
655	655	(b) A rulemaking authority has broad authority to adopt
656	656	rules to implement this subchapter to carry out the legislature's
657	657	intent.
658	658	Sec. 2306.1084. COMPOSITION OF TASK FORCE. (a) The Texas
659	659	Affordable Housing Initiative Task Force is composed of:
660	660	(1) one representative from each of the following
661	661	agencies, appointed by the head of that agency:
662	662	(A) the Health and Human Services Commission;
663	663	(B) the Department of State Health Services;
664	664	(C) the Department of Aging and Disability
665	665	Services;
666	666	(D) the Department of Assistive and
667	667	Rehabilitative Services;
668	668	(E) the Public Utility Commission of Texas; and
669	669	(F) the Office of Rural Community Affairs;
670	670	(2) two representatives from the department,
671	671	including the director and a person appointed by the director;
672	672	(3) one member representing advocacy organizations
673	673	and service providers to homeless persons, appointed by the
674	674	governor;
675	675	(4) one member representing advocacy organizations
676	676	and service providers to elderly persons, appointed by the
677	677	governor; and
678	678	(5) one member representing advocacy organizations
679	679	and service providers to persons with disabilities, appointed by
680	680	the governor.
681	681	(b) A member of the task force serves at the pleasure of the
682	682	appointing official or until termination of the member's employment
683	683	or association, as applicable, with the entity the member
684	684	represents.
685	685	(c) A member of the task force representing a state agency
686	686	must have:
687	687	(1) administrative responsibility for programs for
688	688	homeless or elderly persons or persons with disabilities or related
689	689	services provided by the agency that the member represents; and
690	690	(2) authority to make decisions for and commit
691	691	resources of the agency, subject to the approval of the head of the
692	692	agency or the board of directors of the agency.
693	693	Sec. 2306.1085. OPERATION OF TASK FORCE. (a) The director
694	694	serves as the presiding officer of the task force.
695	695	(b) The task force shall meet at least quarterly.
696	696	(c) The task force shall keep minutes and records of
697	697	attendance with respect to the meetings of the task force.
698	698	(d) An action taken by the task force must be approved by a
699	699	majority vote of the members present.
700	700	(e) The task force may select and use advisors.
701	701	(f) The department shall provide clerical and advisory
702	702	support staff to the task force.
703	703	(g) Chapter 2110 does not apply to the task force.
704	704	Sec. 2306.1086. GIFTS AND GRANTS. The task force may
705	705	solicit and accept gifts, grants, and donations from a public or
706	706	private source for use in carrying out the task force's duties under
707	707	this subchapter.
708	708	Sec. 2306.1087. DUTIES OF TASK FORCE. The task force shall:
709	709	(1) coordinate interdepartmental and interagency
710	710	plans and develop and annually update a unified initiative plan to:
711	711	(A) not later than January 1, 2020, reduce by at
712	712	least 20 percent the number of persons desiring and capable of
713	713	living independently who are compelled to reside in
714	714	Medicaid-supported nursing homes, state institutions, and publicly
715	715	supported homeless shelters by making it possible for those persons
716	716	to remain and live independently in noninstitutionalized housing,
717	717	especially their own homes;
718	718	(B) ensure that the numbers of persons and
719	719	households assisted under programs under this subchapter in each
720	720	uniform state service region are in approximate proportion to the
721	721	numbers of eligible persons and households residing in that uniform
722	722	state service region;
723	723	(C) develop new, more cost-effective programs
724	724	and strategies to use existing public and private resources to
725	725	provide housing and reduce the residential energy cost burden on
726	726	extremely low income homeless or elderly persons or persons with
727	727	disabilities;
728	728	(D) affirmatively further fair housing
729	729	opportunities by making available noninstitutionalized housing
730	730	opportunities to extremely low income homeless or elderly persons
731	731	or persons with disabilities; and
732	732	(E) coordinate housing and health services to
733	733	meet the demands of extremely low income homeless or elderly
734	734	persons or persons with disabilities by promoting service-enriched
735	735	housing opportunities within a wide range of noninstitutionalized
736	736	housing, including homes currently owned and rented by those
737	737	persons to the extent possible;
738	738	(2) determine the programmatic approaches, levels of
739	739	funding, and funding sources necessary to carry out the initiative
740	740	plan;
741	741	(3) research housing needs and programs to achieve the
742	742	goals of the initiative plan; and
743	743	(4) aggregate, analyze, and report the program
744	744	initiatives and resource commitments of each participating agency
745	745	with respect to activities under the Texas Affordable Housing
746	746	Initiative and certify whether sufficient programs have been
747	747	initiated and sufficient resources have been committed to meet the
748	748	goals of the initiative plan.
749	749	Sec. 2306.1088. REPORT. (a) Not later than September 1,
750	750	2010, the task force shall submit a copy of the initiative plan,
751	751	including an accounting of the funds allocated or expended and the
752	752	number and geographic, demographic, and economic characteristics
753	753	of persons served by each participating agency through the
754	754	initiative plan, to:
755	755	(1) the governor;
756	756	(2) the lieutenant governor;
757	757	(3) the speaker of the house of representatives;
758	758	(4) the Legislative Budget Board;
759	759	(5) the legislative oversight committees for the
760	760	department; and
761	761	(6) the legislative oversight committees for the
762	762	Office of Rural Community Affairs.
763	763	(b) This section expires December 31, 2010.
764	764	Sec. 2306.1089. SERVICE-ENRICHED HOUSING INITIATIVE. (a)
765	765	The task force shall plan and take necessary actions to improve
766	766	coordination between housing and health services programs to
767	767	increase state efforts to offer service-enriched housing,
768	768	including:
769	769	(1) identifying barriers preventing or slowing
770	770	service-enriched housing efforts, such as:
771	771	(A) regulatory, administrative, or funding
772	772	barriers; or
773	773	(B) ineffective or limited coordination among
774	774	state agencies;
775	775	(2) developing a system and plan to cross-educate
776	776	selected staff in agencies represented on the task force and other
777	777	state and local agencies to increase the number of staff with
778	778	expertise in both housing and health services programs;
779	779	(3) identifying opportunities for state housing and
780	780	health services agencies to provide technical assistance and
781	781	training to local housing and health services entities regarding
782	782	the cross-education of staff, agency and entity coordination, and
783	783	opportunities to increase local efforts to create service-enriched
784	784	housing;
785	785	(4) developing suggested performance measures to
786	786	track progress in:
787	787	(A) reducing or eliminating barriers in creating
788	788	service-enriched housing;
789	789	(B) increasing the coordination among housing
790	790	and health services agencies;
791	791	(C) increasing the number of state housing and
792	792	health services staff who have expertise in both housing and health
793	793	services programs; and
794	794	(D) increasing the instances of state housing and
795	795	health services staff providing technical assistance to local
796	796	communities to increase the number of service-enriched housing
797	797	projects; and
798	798	(5) implementing the related portions of the
799	799	initiative plan and tracking the progress of implementation.
800	800	(b) In implementing program activities described by this
801	801	section, the task force shall ensure that the provision of
802	802	service-enriched housing is available to eligible persons on an
803	803	equal basis whether they choose to move from their existing homes to
804	804	noninstitutionalized housing developments with enriched services
805	805	or whether they elect to receive the services in other
806	806	noninstitutionalized housing. The task force shall act to ensure
807	807	that no state action or policy forces an elderly person or a person
808	808	with a disability to choose between living independently and
809	809	obtaining services similar to those provided in an institutional
810	810	setting.
811	811	SECTION 20. Chapter 301, Property Code, is amended by
812	812	adding Subchapter J to read as follows:
813	813	SUBCHAPTER J. STATE AND MUNICIPAL ACTIONS FOR
814	814	FAIR HOUSING
815	815	Sec. 301.201. ADMINISTRATION OF STATE PROGRAMS AND
816	816	ACTIVITIES RELATING TO HOUSING AND URBAN DEVELOPMENT. Each state
817	817	agency shall administer state programs and activities relating to
818	818	housing and urban development in a manner that affirmatively
819	819	furthers the goals of fair housing under this chapter.
820	820	Sec. 301.202. ADMINISTRATION OF MUNICIPAL PROGRAMS AND
821	821	ACTIVITIES RELATING TO HOUSING AND URBAN DEVELOPMENT. Each
822	822	municipality shall administer municipal programs and activities
823	823	relating to housing and urban development in a manner that
824	824	affirmatively furthers the goals of fair housing under this
825	825	chapter.
826	826	SECTION 21. Section 11.182, Tax Code, is amended by
827	827	amending Subsections (b), (e), (h), (j), and (k) and adding
828	828	Subsections (b-1) and (b-2) to read as follows:
829	829	(b) An organization is entitled to an exemption from
830	830	taxation of improved or unimproved real property it owns if the
831	831	organization:
832	832	(1) is organized as a community housing development
833	833	organization;
834	834	(2) meets the requirements of a charitable
835	835	organization provided by Sections 11.18(e) and (f);
836	836	(3) owns the property for the purpose of building or
837	837	repairing housing on the property to sell without profit to a
838	838	low-income or moderate-income individual or family satisfying the
839	839	organization's eligibility requirements or to rent without profit
840	840	to such an individual or family; and
841	841	(4) engages [exclusively] in the building, repair, and
842	842	sale or rental of housing as described by Subdivision (3) and
843	843	related activities.
844	844	(b-1) Notwithstanding Subsections (b)(1) and (2), an owner
845	845	of improved or unimproved real property that is not an organization
846	846	described by Subsections (b)(1) and (2) is entitled to an exemption
847	847	from taxation of the property under Subsection (b) if the owner
848	848	otherwise qualifies for the exemption and the owner is:
849	849	(1) a limited partnership of which 100 percent of the
850	850	interest of the general partner is owned or controlled by an
851	851	organization described by Subsections (b)(1) and (2); or
852	852	(2) an entity 100 percent of the interest in which is
853	853	owned or controlled by an organization described by Subsections
854	854	(b)(1) and (2).
855	855	(b-2) A reference in this section to an organization
856	856	includes a limited partnership or other entity described by
857	857	Subsection (b-1).
858	858	(e) In addition to meeting the applicable requirements of
859	859	Subsections (b) and (c), to receive an exemption under Subsection
860	860	(b) for improved real property that is [includes a housing project
861	861	constructed after December 31, 2001, and] financed with qualified
862	862	501(c)(3) bonds issued under Section 145 of the Internal Revenue
863	863	Code of 1986, tax-exempt private activity bonds subject to volume
864	864	cap, or low-income housing tax credits, the organization must:
865	865	(1) [control 100 percent of the interest in the
866	866	general partner if the project is owned by a limited partnership;
867	867	[(2)] comply with all rules of and laws administered
868	868	by the Texas Department of Housing and Community Affairs applicable
869	869	to community housing development organizations; and
870	870	(2) [(3)] submit annually to the Texas Department of
871	871	Housing and Community Affairs and to the governing body of each
872	872	taxing unit for which the project receives an exemption for the
873	873	housing project evidence demonstrating that the organization spent
874	874	an amount equal to at least 90 percent of the project's cash flow in
875	875	the preceding fiscal year as determined by the audit required by
876	876	Subsection (g), for eligible persons in the county in which the
877	877	property is located, on social, educational, or economic
878	878	development services, capital improvement projects, or rent
879	879	reduction.
880	880	(h) Subsections (d) and (e)(2) [(e)(3)] do not apply to
881	881	property owned by an organization if:
882	882	(1) the entity that provided the financing for the
883	883	acquisition or construction of the property:
884	884	(A) requires the organization to make payments in
885	885	lieu of taxes to the school district in which the property is
886	886	located; or
887	887	(B) restricts the amount of rent the organization
888	888	may charge for dwelling units on the property; or
889	889	(2) the organization has entered into an agreement
890	890	with each taxing unit for which the property receives an exemption
891	891	to spend in each tax year for the purposes provided by Subsection
892	892	(d) or (e)(2) [(e)(3)] an amount equal to the total amount of taxes
893	893	imposed on the property in the tax year preceding the year in which
894	894	the organization acquired the property.
895	895	(j) An organization may not receive an exemption under
896	896	Subsection (b) or (f) for property for a tax year unless the
897	897	organization applied for or received an exemption under that
898	898	subsection for the property for any part of the 2003 tax year.
899	899	(k) Notwithstanding Subsection (j) of this section and
900	900	Sections 11.43(a) and (c), an exemption under Subsection (b) or (f)
901	901	does not terminate because of a change in the ownership of the
902	902	property if the property is sold at a foreclosure sale and, not
903	903	later than the 30th day after the date of the sale, the owner of the
904	904	property submits to the chief appraiser evidence that the property
905	905	is owned by an organization that meets the requirements of
906	906	Subsections (b)(1), (2), and (4) or is owned by a limited
907	907	partnership described by Subsection (b-1)(1) or an entity described
908	908	by Subsection (b-1)(2) that meets the requirements of Subsection
909	909	(b)(4). If the owner of the property submits the evidence required
910	910	by this subsection, the exemption continues to apply to the
911	911	property for the remainder of the current tax year and for
912	912	subsequent tax years until the owner ceases to qualify the property
913	913	for the exemption. This subsection does not prohibit the chief
914	914	appraiser from requiring the owner to file a new application to
915	915	confirm the owner's current qualification for the exemption as
916	916	provided by Section 11.43(c).
917	917	SECTION 22. Sections 11.1825(c) and (t), Tax Code, are
918	918	amended to read as follows:
919	919	(c) Notwithstanding Subsection (b), an owner of real
920	920	property that is not an organization described by that subsection
921	921	is entitled to an exemption from taxation of property under this
922	922	section if the property otherwise qualifies for the exemption and
923	923	the owner is:
924	924	(1) a limited partnership of which an organization
925	925	that meets the requirements of Subsection (b) controls 100 percent
926	926	of the general partner interest; [or]
927	927	(2) an entity the parent of which is an organization
928	928	that meets the requirements of Subsection (b); or
929	929	(3) an entity the parent of which is controlled by an
930	930	organization that meets the requirements of Subsection (b).
931	931	(t) Notwithstanding Section 11.43(c), an exemption under
932	932	this section does not terminate because of a change in ownership of
933	933	the property if:
934	934	(1) the property is foreclosed on for any reason and,
935	935	not later than the 30th day after the date of the foreclosure sale,
936	936	the owner of the property submits to the chief appraiser evidence
937	937	that the property is owned by:
938	938	(A) an organization that meets the requirements
939	939	of Subsection (b); or
940	940	(B) an entity that meets the requirements of
941	941	Subsections (c) and (d); or
942	942	(2) in the case of property owned by an entity
943	943	described by Subsections (c) and (d), the organization meeting the
944	944	requirements of Subsection (b) that controls the general partner
945	945	interest of, [or] is the parent of, or controls the parent of the
946	946	entity as described by Subsection (c) ceases to serve in that
947	947	capacity and, not later than the 30th day after the date the
948	948	cessation occurs, the owner of the property submits evidence to the
949	949	chief appraiser that the organization has been succeeded in that
950	950	capacity by another organization that meets the requirements of
951	951	Subsection (b).
952	952	SECTION 23. Subchapter C, Chapter 487, Government Code, is
953	953	amended by adding Section 487.062 to read as follows:
954	954	Sec. 487.062. COMPLIANCE WITH TEXAS AFFORDABLE HOUSING
955	955	INITIATIVE. The office shall designate a representative to the
956	956	Texas Affordable Housing Initiative Task Force under Section
957	957	2306.1084, shall implement the plan enacted, and shall take all
958	958	other actions required to achieve the goals of the Texas Affordable
959	959	Housing Initiative under Subchapter NN, Chapter 2306.
960	960	SECTION 24. Subchapter B, Chapter 531, Government Code, is
961	961	amended by adding Section 531.0973 to read as follows:
962	962	Sec. 531.0973. COMPLIANCE WITH TEXAS AFFORDABLE HOUSING
963	963	INITIATIVE. The commission shall designate a representative to the
964	964	Texas Affordable Housing Initiative Task Force under Section
965	965	2306.1084, shall implement the plan enacted, and shall take all
966	966	other actions required to achieve the goals of the Texas Affordable
967	967	Housing Initiative under Subchapter NN, Chapter 2306.
968	968	SECTION 25. Subchapter C, Chapter 2306, Government Code, is
969	969	amended by adding Section 2306.059 to read as follows:
970	970	Sec. 2306.059. COMPLIANCE WITH TEXAS AFFORDABLE HOUSING
971	971	INITIATIVE. The department shall designate a representative to the
972	972	Texas Affordable Housing Initiative Task Force under Section
973	973	2306.1084, shall implement the plan enacted, and shall take all
974	974	other actions required to achieve the goals of the Texas Affordable
975	975	Housing Initiative under Subchapter NN.
976	976	SECTION 26. Subchapter D, Chapter 1001, Health and Safety
977	977	Code, is amended by adding Section 1001.076 to read as follows:
978	978	Sec. 1001.076. COMPLIANCE WITH TEXAS AFFORDABLE HOUSING
979	979	INITIATIVE. The department shall designate a representative to the
980	980	Texas Affordable Housing Initiative Task Force under Section
981	981	2306.1084, Government Code, shall implement the plan enacted, and
982	982	shall take all other actions required to achieve the goals of the
983	983	Texas Affordable Housing Initiative under Subchapter NN, Chapter
984	984	2306, Government Code.
985	985	SECTION 27. Subchapter D, Chapter 117, Human Resources
986	986	Code, is amended by adding Section 117.075 to read as follows:
987	987	Sec. 117.075. COMPLIANCE WITH TEXAS AFFORDABLE HOUSING
988	988	INITIATIVE. The department shall designate a representative to the
989	989	Texas Affordable Housing Initiative Task Force under Section
990	990	2306.1084, Government Code, shall implement the plan enacted, and
991	991	shall take all other actions required to achieve the goals of the
992	992	Texas Affordable Housing Initiative under Subchapter NN, Chapter
993	993	2306, Government Code.
994	994	SECTION 28. Subchapter D, Chapter 161, Human Resources
995	995	Code, is amended by adding Section 161.076 to read as follows:
996	996	Sec. 161.076. COMPLIANCE WITH TEXAS AFFORDABLE HOUSING
997	997	INITIATIVE. The department shall designate a representative to the
998	998	Texas Affordable Housing Initiative Task Force under Section
999	999	2306.1084, Government Code, shall implement the plan enacted, and
1000	1000	shall take all other actions required to achieve the goals of the
1001	1001	Texas Affordable Housing Initiative under Subchapter NN, Chapter
1002	1002	2306, Government Code.
1003	1003	SECTION 29. Subchapter A, Chapter 12, Utilities Code, is
1004	1004	amended by adding Section 12.006 to read as follows:
1005	1005	Sec. 12.006. COMPLIANCE WITH TEXAS AFFORDABLE HOUSING
1006	1006	INITIATIVE. The commission shall designate a representative to the
1007	1007	Texas Affordable Housing Initiative Task Force under Section
1008	1008	2306.1084, Government Code, shall implement the plan enacted, and
1009	1009	shall take all other actions required to achieve the goals of the
1010	1010	Texas Affordable Housing Initiative under Subchapter NN, Chapter
1011	1011	2306, Government Code.
1012	1012	SECTION 30. Sections 2306.255(g) and 2306.552, Government
1013	1013	Code, are repealed.
1014	1014	SECTION 31. (a) The Texas State Affordable Housing
1015	1015	Corporation is abolished on January 1, 2010.
1016	1016	(b) All powers, duties, obligations, rights, contracts,
1017	1017	funds, unspent appropriations, records, and real or personal
1018	1018	property of the Texas State Affordable Housing Corporation shall be
1019	1019	transferred to the Texas Department of Housing and Community
1020	1020	Affairs not later than January 1, 2010.
1021	1021	(c) A policy, procedure, or decision of the Texas State
1022	1022	Affordable Housing Corporation relating to a duty of that
1023	1023	corporation that is transferred to the authority of the Texas
1024	1024	Department of Housing and Community Affairs under Section 2306.551,
1025	1025	Government Code, as amended by this Act, continues in effect as a
1026	1026	policy, procedure, or decision of the Texas Department of Housing
1027	1027	and Community Affairs until superseded by an act of the director of
1028	1028	the Texas Department of Housing and Community Affairs.
1029	1029	(d) Except as otherwise provided by this Act, the validity
1030	1030	of a plan or procedure adopted, contract or acquisition made,
1031	1031	proceeding begun, grant or loan awarded, obligation incurred, right
1032	1032	accrued, or other action taken by or in connection with the
1033	1033	authority of the Texas State Affordable Housing Corporation before
1034	1034	that corporation is abolished under Subsection (a) of this section
1035	1035	is not affected by the abolishment.
1036	1036	(e) The director of the Texas Department of Housing and
1037	1037	Community Affairs shall adopt rules relating to the transfer of the
1038	1038	programs assigned to the Texas Department of Housing and Community
1039	1039	Affairs under Section 2306.551, Government Code, as amended by this
1040	1040	Act, not later than October 1, 2009.
1041	1041	SECTION 32. The executive director of the Texas Department
1042	1042	of Housing and Community Affairs shall submit to the governing
1043	1043	board of the department the first long-range state low income
1044	1044	housing plan, as required by Section 2306.0725, Government Code, as
1045	1045	added by this Act, not later than March 18, 2010.
1046	1046	SECTION 33. The Texas Department of Housing and Community
1047	1047	Affairs shall adopt the rules required by Section 2306.0971,
1048	1048	Government Code, as added by this Act, not later than December 1,
1049	1049	2009.
1050	1050	SECTION 34. The changes in law made by this Act relating to
1051	1051	applications and evaluations of applications for financial
1052	1052	assistance administered by the Texas Department of Housing and
1053	1053	Community Affairs apply only to an application filed on or after the
1054	1054	effective date of this Act. An application filed before the
1055	1055	effective date of this Act is governed by the law in effect on the
1056	1056	date the application was filed, and the former law is continued in
1057	1057	effect for that purpose.
1058	1058	SECTION 35. The Texas Department of Housing and Community
1059	1059	Affairs shall adopt rules as necessary to implement and enforce
1060	1060	Section 2306.6737, Government Code, as added by this Act, not later
1061	1061	than November 1, 2009.
1062	1062	SECTION 36. As soon as possible after the effective date of
1063	1063	this Act, the governor and the heads of the applicable state
1064	1064	agencies shall appoint members to the Texas Affordable Housing
1065	1065	Initiative Task Force in accordance with Subchapter NN, Chapter
1066	1066	2306, Government Code, as added by this Act.
1067	1067	SECTION 37. Sections 11.182 and 11.1825, Tax Code, as
1068	1068	amended by this Act, apply only to ad valorem taxes imposed for a
1069	1069	tax year beginning on or after the effective date of this Act.
1070	1070	SECTION 38. This Act does not make an appropriation. A
1071	1071	provision in this Act that creates a new governmental program,
1072	1072	creates a new entitlement, or imposes a new duty on a governmental
1073	1073	entity is not mandatory during a fiscal period for which the
1074	1074	legislature has not made a specific appropriation to implement the
1075	1075	provision.
1076	1076	SECTION 39. (a) Except as provided by Subsections (b) and
1077	1077	(c) of this section, this Act takes effect September 1, 2009.
1078	1078	(b) Sections 2306.122 and 2306.6736, Government Code, as
1079	1079	added by this Act, take effect immediately if this Act receives a
1080	1080	vote of two-thirds of all the members elected to each house, as
1081	1081	provided by Section 39, Article III, Texas Constitution. If this
1082	1082	Act does not receive the vote necessary for immediate effect,
1083	1083	Sections 2306.122 and 2306.6736, Government Code, as added by this
1084	1084	Act, take effect September 1, 2009.
1085	1085	(c) Sections 11.182 and 11.1825, Tax Code, as amended by
1086	1086	this Act, take effect January 1, 2010.