81R34757 ACP/JAM-F
By: Ellis S.B. No. 1861
Substitute the following for S.B. No. 1861:
By: Alvarado C.S.S.B. No. 1861
A BILL TO BE ENTITLED
AN ACT
relating to the transfer of powers, duties, and programs to, and the
continuation of, the Texas Department of Housing and Community
Affairs, to the establishment and administration of certain other
programs and divisions within the department, and to other
provisions relating to fair or affordable housing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.001, Government Code, is amended to
read as follows:
Sec. 2306.001. PURPOSES. The purposes of the department
are to:
(1) assist local governments in:
(A) providing essential public services for
their residents; and
(B) overcoming financial, social, and
environmental problems;
(2) provide for the housing needs of individuals and
families of low, very low, and extremely low income and families of
moderate income;
(3) contribute to the preservation, development, and
redevelopment of neighborhoods and communities, including
cooperation in the preservation of government-assisted housing
occupied by individuals and families of very low and extremely low
income;
(4) assist the governor and the legislature in
coordinating federal and state programs affecting local
government;
(5) inform state officials and the public of the needs
of local government;
(6) serve as the lead agency for:
(A) addressing at the state level the problem of
homelessness in this state;
(B) coordinating interagency efforts to address
homelessness; and
(C) addressing at the state level and
coordinating interagency efforts to address any problem associated
with homelessness, including hunger; [and]
(7) serve as a source of information to the public
regarding all affordable housing resources and community support
services in the state; and
(8) administer programs to achieve the purposes
described by this section and implement procedures to improve the
efficiency of those programs and to maximize federal funding.
SECTION 2. Section 2306.022, Government Code, is amended to
read as follows:
Sec. 2306.022. APPLICATION OF SUNSET ACT. The Texas
Department of Housing and Community Affairs is subject to Chapter
325 (Texas Sunset Act). Unless continued in existence as provided
by that chapter, the department is abolished and this chapter
expires September 1, 2013 [2011].
SECTION 3. Section 2306.041, Government Code, is amended to
read as follows:
Sec. 2306.041. IMPOSITION OF PENALTY. The board shall
[may] impose an administrative penalty on a person who violates
this chapter or a rule or order adopted under this chapter.
SECTION 4. Subchapter C, Chapter 2306, Government Code, is
amended by adding Section 2306.058 to read as follows:
Sec. 2306.058. TRANSITION PLAN FOR CERTAIN POWERS, DUTIES,
AND PROGRAMS; RULES. (a) The director by rule shall adopt a
transition plan for the department's assumption of the former
powers and duties of the Texas State Affordable Housing Corporation
under Section 2306.551. The transition plan must:
(1) include a timetable with specific steps and
deadlines needed to fully complete the transfer; and
(2) ensure that the transfer is fully implemented not
later than January 1, 2010.
(b) The director may adopt rules necessary to improve the
efficiency or effectiveness of any program that is transferred to
the department as a result of the department's assumption of the
former powers and duties of the Texas State Affordable Housing
Corporation under Section 2306.551, including rules that provide
for consolidating the operation of programs already administered by
the department and a program or programs that are transferred to the
department from the Texas State Affordable Housing Corporation.
(c) Notwithstanding Subsection (b), the director may not
consolidate or eliminate the programs administered under Sections
2306.562 and 2306.5621.
SECTION 5. Subchapter D, Chapter 2306, Government Code, is
amended by adding Sections 2306.0725 and 2306.084 to read as
follows:
Sec. 2306.0725. LONG-RANGE LOW INCOME HOUSING PLAN.
(a) The director shall prepare and submit to the board an
integrated long-range state low income housing plan covering at
least six years.
(b) Not later than the 30th day after the date the board
receives and approves the plan, the board shall submit the plan to
the governor, the lieutenant governor, and the speaker of the house
of representatives.
(c) The plan must establish policy goals for meeting low
income housing needs on a statewide and regional basis and
prescribe strategies to meet those goals. The plan must include:
(1) an estimate and analysis of the housing needs of
the following populations in each uniform state service region:
(A) individuals and families of moderate, low,
very low, and extremely low income;
(B) individuals with special needs, with
specific emphasis on the needs of elderly individuals and
individuals with disabilities; and
(C) homeless individuals;
(2) a proposal to use all available housing resources
to address the housing needs of the populations described by
Subdivision (1) by establishing funding levels for all
housing-related programs;
(3) an estimate of the number of federally assisted
housing units available for individuals and families of low and
very low income and individuals with special needs in each uniform
state service region;
(4) a description of state programs that govern the
use of all available housing resources;
(5) a resource allocation plan that targets all
available housing resources to individuals and families of low and
very low income and individuals with special needs in each uniform
state service region;
(6) a description of the department's efforts to
monitor and analyze the unused or underused federal resources of
other state agencies for housing-related services and services for
homeless individuals and the department's recommendations to
ensure the full use by the state of all available federal resources
for those services in each uniform state service region;
(7) strategies to provide housing for individuals and
families with special needs in each uniform state service region;
(8) a description of the department's efforts to
encourage in each uniform state service region the construction of
housing units that incorporate energy efficient construction and
appliances;
(9) an estimate and analysis of the housing supply in
each uniform state service region;
(10) an inventory of all publicly and, where possible,
privately funded housing resources, including public housing
authorities, housing finance corporations, community housing
development organizations, and community action agencies;
(11) strategies for meeting rural housing needs;
(12) an action plan for colonias that addresses
current policy goals for colonia programs, strategies to meet the
policy goals, and the projected outcomes with respect to the policy
goals; and
(13) strategies for eliminating redundant and
inefficient practices.
(d) The priorities and policies in each housing plan adopted
by the department must be consistent to the extent practical with
the priorities and policies established in the long-range state low
income housing plan.
(e) The director may subdivide the uniform state service
regions as necessary for purposes of the long-range state low
income housing plan.
Sec. 2306.084. GENERAL ENFORCEMENT AUTHORITY; STUDY. (a)
The department shall develop and implement procedures to ensure
that all programs administered by the department comply with the
requirements of this chapter and applicable federal laws.
(b) The department shall conduct a study to determine
whether the creation of new programs or expansion of existing
services would improve the department's ability to perform the
duties assigned by this chapter.
SECTION 6. Subchapter E, Chapter 2306, Government Code, is
amended by adding Sections 2306.095, 2306.096, 2306.0971, and
2306.0972 to read as follows:
Sec. 2306.095. FINANCIAL ASSISTANCE FOR LOCAL INITIATIVES
REGARDING THE HOMELESS. (a) The department shall provide
financial assistance to political subdivisions, housing finance
corporations, for-profit corporations, and nonprofit organizations
that provide services for individuals and families who are
homeless.
(b) Assistance provided under this section must be used only
to support local initiatives regarding homeless individuals and
families.
(c) The department shall seek any federal funding available
for the purposes of the program.
(d) The department may adopt rules to administer this
section.
Sec. 2306.096. HOMELESS GRANT PROGRAM. (a) The department
shall provide grants, supportive housing services, and housing
retention services to support services offered to homeless persons
by political subdivisions, housing finance corporations,
for-profit corporations, and nonprofit organizations.
(b) Grants made under this section must be used only for
support services for homeless persons, including:
(1) case management;
(2) job training, placement, and retention;
(3) housing placement and retention; and
(4) mental health services.
(c) The department may adopt rules to administer this
section.
Sec. 2306.0971. SUPPLEMENTAL ASSISTANCE PROGRAM FOR
CERTAIN WEATHERIZATION-RELATED MEASURES. (a) In addition to the
Energy Services Program for Low-Income Individuals established
under Section 2306.097, the department shall establish a program
that provides financial assistance for residential
weatherization-related measures that do not qualify for federal
funds under the weatherization assistance program for low-income
persons but that, if performed, would allow a person to receive that
federal assistance.
(b) The department by rule shall establish eligibility
criteria for a person to receive financial assistance for
residential weatherization-related measures described by
Subsection (a). The criteria must ensure that any
weatherization-related measures performed will allow a person to
receive federal assistance under the weatherization assistance
program. The income criteria must be equivalent to the income
criteria for a person to receive federal assistance under the
weatherization assistance program.
Sec. 2306.0972. WEATHERIZATION PILOT PROGRAM. (a) The
department may establish a pilot program to study the effectiveness
of weatherization measures in increasing residential energy
efficiency for individuals and families of low income.
(b) If the department establishes a pilot program under this
section, not later than December 1, 2010, the department shall
submit a report to the legislature regarding its findings and
recommendations under the pilot program.
(c) This section expires September 1, 2011.
SECTION 7. Section 2306.111(d-1), Government Code, is
amended to read as follows:
(d-1) In allocating low income housing tax credit
commitments under Subchapter DD, the department shall, before
applying the regional allocation formula prescribed by Section
2306.1115, set aside for at-risk developments, as defined by
Section 2306.6702, not less than the minimum amount of housing tax
credits required under Section 2306.6714. Funds or credits are
also not required to be allocated according to the regional
allocation formula under Subsection (d) if:
(1) the funds or credits are reserved for
contract-for-deed conversions or for set-asides mandated by state
or federal law, including the nonprofit set-aside mandated by
Section 42(h)(5), Internal Revenue Code of 1986 (26 U.S.C. Section
42(h)(5)), and each contract-for-deed allocation or set-aside
allocation equals not more than 10 percent of the total allocation
of funds or credits for the applicable program;
(2) the funds or credits are allocated by the
department primarily to serve persons with disabilities; or
(3) the funds are housing trust funds administered by
the department under Sections 2306.201-2306.206 that are not
otherwise required to be set aside under state or federal law and do
not exceed $3 million during each application cycle.
SECTION 8. Section 2306.1114(a), Government Code, is
amended to read as follows:
(a) Not later than the 14th day after the date an
application or a proposed application for housing funds described
by Section 2306.111 has been filed, the department shall provide
written notice of the filing of the application or proposed
application to the following persons:
(1) the United States representative who represents
the community containing the development described in the
application;
(2) members of the legislature who represent the
community containing the development described in the application;
(3) the presiding officer of the governing body of the
political subdivision containing the development described in the
application;
(4) any member of the governing body of a political
subdivision who represents the area containing the development
described in the application;
(5) the superintendent and the presiding officer of
the board of trustees of the school district containing the
development described in the application; and
(6) any neighborhood organizations on record with the
state, municipality, or county in which the development described
in the application is to be located and whose boundaries contain the
proposed development site.
SECTION 9. Subchapter F, Chapter 2306, Government Code, is
amended by adding Section 2306.122 to read as follows:
Sec. 2306.122. ASSISTANCE FROM AMERICAN RECOVERY AND
REINVESTMENT ACT OF 2009. (a) To the extent permitted by federal
law, in administering money provided to the department under the
American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5),
the department shall secure the interests of the state through
bonds, retention of ownership interests in the affected properties,
or restrictive covenants or liens filed in real property records
for the affected properties.
(b) The interests of the state must be secured with respect
to the use of federal money described by Subsection (a) until the
department and the state do not have any specified liability to
repay or recapture that money.
SECTION 10. Subchapter K, Chapter 2306, Government Code, is
amended by adding Section 2306.260 to read as follows:
Sec. 2306.260. USE OF CERTAIN FEDERAL ASSISTANCE TO FUND
PILOT PROGRAMS. The department may fund existing pilot programs or
create new pilot programs as appropriate using federal supplemental
appropriations under the American Recovery and Reinvestment Act of
2009 (Pub. L. No. 111-5) or any other similar federal legislation
that is enacted on or after January 1, 2009. This section expires
December 31, 2011.
SECTION 11. Subchapter Y, Chapter 2306, Government Code, is
amended by amending Section 2306.551 and adding Section 2306.5511
to read as follows:
Sec. 2306.551. TRANSFER OF CORPORATION POWERS AND DUTIES
AND ASSETS. (a) The powers and duties of the corporation under
this chapter or other law are transferred to the Texas Department of
Housing and Community Affairs.
(b) The corporation shall transfer to the Texas Department
of Housing and Community Affairs:
(1) all assets owned or distributed by the
corporation, including any real or personal property owned by the
corporation and any bond revenue distributed by the corporation;
(2) all records related to the operation of any home
loan programs under this chapter; and
(3) any applications pending with the corporation on
the date the corporation is dissolved by the board of the
corporation.
(c) The board of the corporation shall:
(1) take all necessary actions to dissolve the
corporation; and
(2) at the request of the director, assist the
director in formulating the transition plan under Section 2306.058.
Sec. 2306.5511. DEFINITION; CONSTRUCTION OF OTHER LAW. (a)
In this subchapter, "corporation" means the Texas State Affordable
Housing Corporation.
(b) A reference in law to the corporation is a reference to
the Texas Department of Housing and Community Affairs.
SECTION 12. Section 2306.557, Government Code, is amended
to read as follows:
Sec. 2306.557. DISTRIBUTION OF EARNINGS. (a) Any part of
earnings remaining after payment of expenses and any establishment
of reserves by the corporation's board of directors may not inure to
any person except that the corporation shall use these excess
earnings to further the corporation's new or existing affordable
housing initiatives if the corporation's board of directors
determines that sufficient provision has been made for the full
payment of the expenses, bonds, and other obligations of the
corporation and for any establishment of reserves by the
corporation's board of directors.
(b) Notwithstanding any provision to the contrary, all
earnings from bonds issued under Section 2306.5551, 2306.562,
2306.5621, or 2306.565 shall be allocated to the homeless grant
program under Section 2306.095.
SECTION 13. Section 2306.6703(a), Government Code, is
amended to read as follows:
(a) An application is ineligible for consideration under
the low income housing tax credit program if:
(1) at the time of application or at any time during
the two-year period preceding the date the application round
begins, the applicant or a related party is or has been:
(A) a member of the board; or
(B) the director, a deputy director, the director
of housing programs, the director of compliance, the director of
underwriting, or the low income housing tax credit program manager
employed by the department;
(2) the applicant proposes to replace in less than 15
years any private activity bond financing of the development
described by the application, unless:
(A) at least one-third of all the units in the
development are public housing units or Section 8 project-based
units and the applicant proposes to maintain for a period of 30
years or more 100 percent of the [development] units supported by
housing tax credits as rent-restricted and exclusively for
occupancy by individuals and families earning not more than 50
percent of the area median income, adjusted for family size[; and
[(B) at least one-third of all the units in the
development are public housing units or Section 8 project-based
units];
(B) the applicable private activity bonds will be
redeemed only in an amount consistent with their proportionate
amortization; or
(C) if the redemption of the applicable private
activity bonds will occur in the first five years of the operation
of the development and will reduce the amount of bonds outstanding
to less than 50 percent of the cost of the real property plus
depreciable basis:
(i) the Bond Review Board determines that
there will be money available to fund all other multifamily
developments financed by the bonds without requiring any reduction
in the financing for those developments;
(ii) the applicable private activity bonds
will be redeemed according to underwriting criteria established by
the department; and
(iii) the applicable private activity bonds
will be redeemed only in an amount necessary to ensure the financial
feasibility of the development described by the application;
(3) the applicant proposes to construct a new
development that is located one linear mile or less from a
development that:
(A) serves the same type of household as the new
development, regardless of whether the developments serve
families, elderly individuals, or another type of household;
(B) has received an allocation of housing tax
credits for new construction at any time during the three-year
period preceding the date the application round begins; and
(C) has not been withdrawn or terminated from the
low income housing tax credit program; or
(4) the development is located in a municipality or,
if located outside a municipality, a county that has more than twice
the state average of units per capita supported by housing tax
credits or private activity bonds, unless the applicant:
(A) has obtained prior approval of the
development from the governing body of the appropriate municipality
or county containing the development; and
(B) has included in the application a written
statement of support from that governing body referencing this
section and authorizing an allocation of housing tax credits for
the development.
SECTION 14. Section 2306.6704(b-1), Government Code, is
amended to read as follows:
(b-1) The preapplication process must require the applicant
to provide the department with evidence that the applicant has
notified the following entities with respect to the filing of the
application:
(1) any neighborhood organizations on record with the
state, municipality, or county in which the development is to be
located and whose boundaries contain the proposed development site;
(2) the superintendent and the presiding officer of
the board of trustees of the school district containing the
development;
(3) the presiding officer of the governing body of any
municipality containing the development and all elected members of
that body;
(4) the presiding officer of the governing body of the
county containing the development and all elected members of that
body; and
(5) the state senator and state representative of the
district containing the development.
SECTION 15. Section 2306.6705, Government Code, is amended
to read as follows:
Sec. 2306.6705. GENERAL APPLICATION REQUIREMENTS. An
application must contain at a minimum the following written,
detailed information in a form prescribed by the board:
(1) a description of:
(A) the financing plan for the development,
including any nontraditional financing arrangements;
(B) the use of funds with respect to the
development;
(C) the funding sources for the development,
including:
(i) construction, permanent, and bridge
loans; and
(ii) rents, operating subsidies, and
replacement reserves; and
(D) the commitment status of the funding sources
for the development;
(2) if syndication costs are included in the eligible
basis, a justification of the syndication costs for each cost
category by an attorney or accountant specializing in tax matters;
(3) from a syndicator or a financial consultant of the
applicant, an estimate of the amount of equity dollars expected to
be raised for the development in conjunction with the amount of
housing tax credits requested for allocation to the applicant,
including:
(A) pay-in schedules; and
(B) syndicator consulting fees and other
syndication costs;
(4) if rental assistance, an operating subsidy, or an
annuity is proposed for the development, any related contract or
other agreement securing those funds and an identification of:
(A) the source and annual amount of the funds;
(B) the number of units receiving the funds; and
(C) the term and expiration date of the contract
or other agreement;
(5) if the development is located within the
boundaries of a political subdivision with a zoning ordinance,
evidence in the form of a letter from the chief executive officer of
the political subdivision or from another local official with
jurisdiction over zoning matters that states that:
(A) the development is permitted under the
provisions of the ordinance that apply to the location of the
development; or
(B) the applicant is in the process of seeking
the appropriate zoning and has signed and provided to the political
subdivision a release agreeing to hold the political subdivision
and all other parties harmless in the event that the appropriate
zoning is denied;
(6) if an occupied development is proposed for
rehabilitation:
(A) an explanation of the process used to notify
and consult with the tenants in preparing the application;
(B) a relocation plan outlining:
(i) relocation requirements; and
(ii) a budget with an identified funding
source; and
(C) if applicable, evidence that the relocation
plan has been submitted to the appropriate local agency;
(7) a certification of the applicant's compliance with
appropriate state and federal laws, as required by other state law
or by the board;
(8) any other information required by the board in the
qualified allocation plan; and
(9) evidence that the applicant has notified the
following entities with respect to the filing of the application:
(A) any neighborhood organizations on record
with the state, municipality, or county in which the development is
to be located and whose boundaries contain the proposed development
site;
(B) the superintendent and the presiding officer
of the board of trustees of the school district containing the
development;
(C) the presiding officer of the governing body
of any municipality containing the development and all elected
members of that body;
(D) the presiding officer of the governing body
of the county containing the development and all elected members of
that body; and
(E) the state senator and state representative of
the district containing the development.
SECTION 16. Sections 2306.6710(b) and (f), Government Code,
are amended to read as follows:
(b) If an application satisfies the threshold criteria, the
department shall score and rank the application using a point
system that:
(1) prioritizes in descending order criteria
regarding:
(A) financial feasibility of the development
based on the supporting financial data required in the application
that will include a project underwriting pro forma from the
permanent or construction lender;
(B) quantifiable community participation with
respect to the development, evaluated on the basis of written
statements from any neighborhood organizations on record with the
state, municipality, or county in which the development is to be
located and whose boundaries contain the proposed development site;
(C) the income levels of tenants of the
development;
(D) the size and quality of the units;
(E) the commitment of development funding by
local political subdivisions;
(F) the level of community support in connection
with [for] the application, evaluated on the basis of written
statements from the state representative or the state senator that
represents the district containing the proposed development site;
(G) the rent levels of the units;
(H) the cost of the development by square foot;
(I) the services to be provided to tenants of the
development; and
(J) whether, at the time the complete application
is submitted or at any time within the two-year period preceding the
date of submission, the proposed development site is located in an
area declared to be a disaster under Section 418.014;
(2) uses criteria imposing penalties on applicants or
affiliates who have requested extensions of department deadlines
relating to developments supported by housing tax credit
allocations made in the application round preceding the current
round or a developer or principal of the applicant that has been
removed by the lender, equity provider, or limited partners for its
failure to perform its obligations under the loan documents or
limited partnership agreement; and
(3) encourages applicants to provide free notary
public service to the residents of the developments for which the
allocation of housing tax credits is requested.
(f) In evaluating the level of community support in
connection with [for] an application under Subsection (b)(1)(F),
the department shall award:
(1) positive points for positive written statements
received in support of the application;
(2) negative points for negative written statements
received in opposition to the application; [and]
(3) one-half of one positive point for each written
statement received that generally supports affordable housing in
the district containing the proposed development site, except that
the total number of positive points awarded under this subdivision
may not exceed the total number of positive points awarded under
Subdivision (1); and
(4) one-half of one negative point for each written
statement received that expresses no additional need for affordable
housing in the district containing the proposed development site,
except that the total number of negative points awarded under this
subdivision may not exceed the total number of negative points
awarded under Subdivision (2) [zero points for neutral statements
received].
SECTION 17. Section 2306.6711, Government Code, is amended
by amending Subsection (b) and adding Subsection (g) to read as
follows:
(b) Not later than the deadline specified in the qualified
allocation plan, the board shall issue commitments for available
housing tax credits based on the application evaluation process
provided by Section 2306.6710. The board may not allocate to an
applicant housing tax credits in any unnecessary amount, as
determined by the department's underwriting policy and by federal
law, and in any event may not, except as permitted by Subsection
(g), allocate to the applicant housing tax credits in an amount
greater than $3 [$2] million in a single application round.
(g) Beginning in 2012, on January 1 of each even-numbered
year, the department may adjust the maximum amount of the
allocation prescribed by Subsection (b) by an amount equal to the
amount prescribed by that subsection multiplied by the percentage
change during the preceding state fiscal biennium in the Consumer
Price Index for All Urban Consumers (CPI-U), U.S. City Average,
published monthly by the United States Bureau of Labor Statistics,
or its successor in function. The department shall publish the new
amount in the qualified allocation plan.
SECTION 18. Subchapter DD, Chapter 2306, Government Code,
is amended by adding Sections 2306.6736 and 2306.6737 to read as
follows:
Sec. 2306.6736. LOW INCOME HOUSING TAX CREDITS FINANCED
UNDER AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009. (a) Except
as provided by Subsection (b), a reference in this chapter to the
administration of the low income housing tax credit program applies
to federally administered money:
(1) received by the department under the American
Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5), or any
similar federal legislation that is enacted on or after January 1,
2009; and
(2) that is required to be allocated by the department
in the same manner and subject to the same limitations as
allocations of housing tax credits.
(b) Notwithstanding any other provision of this chapter,
including Sections 2306.1111 and 2306.6724, the department may
establish a separate application procedure for money described by
Subsection (a), the application period of which must begin on the
date the department begins accepting applications for the money and
must continue until all the available money is allocated.
(c) This section expires August 31, 2011.
Sec. 2306.6737. PROHIBITED PRACTICES. (a) Notwithstanding
any other law, a development owner of a development supported with a
housing tax credit allocation may not:
(1) lock out or threaten to lock out any person
residing in the development except by judicial process unless the
exclusion results from:
(A) a necessity to perform bona fide repairs or
construction work; or
(B) an emergency; or
(2) seize or threaten to seize the personal property
of any person residing in the development except by judicial
process unless the resident has abandoned the premises.
(b) Each development owner shall:
(1) include a conspicuous provision in the lease
agreement prohibiting the owner from engaging in a practice
described by Subsection (a); and
(2) remove in the manner specified by department rule
any provisions in the lease agreement that are contrary to
Subsection (a).
SECTION 19. Chapter 2306, Government Code, is amended by
adding Subchapter NN to read as follows:
SUBCHAPTER NN. TEXAS AFFORDABLE HOUSING INITIATIVE
Sec. 2306.1081. PURPOSE. The purpose of this subchapter is
to promote housing independence and prevent unnecessary and
expensive institutionalization of the state's extremely low income
elderly and homeless populations and persons with disabilities.
Sec. 2306.1082. DEFINITIONS. In this subchapter:
(1) "Elderly person" means a person 62 years of age or
older or of an age specified by the applicable federal program.
(2) "Extremely low income" means a household with a
combined income that is not more than 30 percent of the area median
income or applicable federal poverty line, as determined under
Section 2306.123 or 2306.1231.
(3) "Initiative plan" means the single unified plan
developed by the task force under Section 2306.1087.
(4) "Noninstitutionalized housing" means a privately
owned home, apartment, or group home.
(5) "Participating agency" means the Texas Department
of Housing and Community Affairs, the Health and Human Services
Commission, the Department of State Health Services, the Department
of Aging and Disability Services, the Public Utility Commission of
Texas, the Department of Assistive and Rehabilitative Services, or
the Office of Rural Community Affairs.
(6) "Service-enriched housing" means a living
arrangement that provides health services or social services, or
both, in an accessible, supportive environment.
(7) "Task force" means the Texas Affordable Housing
Initiative Task Force.
Sec. 2306.1083. ADMINISTRATIVE AND RULEMAKING AUTHORITY.
(a) A regulatory official has broad authority to administer,
interpret, and enforce this subchapter.
(b) A rulemaking authority has broad authority to adopt
rules to implement this subchapter to carry out the legislature's
intent.
Sec. 2306.1084. COMPOSITION OF TASK FORCE. (a) The Texas
Affordable Housing Initiative Task Force is composed of:
(1) one representative from each of the following
agencies, appointed by the head of that agency:
(A) the Health and Human Services Commission;
(B) the Department of State Health Services;
(C) the Department of Aging and Disability
Services;
(D) the Department of Assistive and
Rehabilitative Services;
(E) the Public Utility Commission of Texas; and
(F) the Office of Rural Community Affairs;
(2) two representatives from the department,
including the director and a person appointed by the director;
(3) one member representing advocacy organizations
and service providers to homeless persons, appointed by the
governor;
(4) one member representing advocacy organizations
and service providers to elderly persons, appointed by the
governor; and
(5) one member representing advocacy organizations
and service providers to persons with disabilities, appointed by
the governor.
(b) A member of the task force serves at the pleasure of the
appointing official or until termination of the member's employment
or association, as applicable, with the entity the member
represents.
(c) A member of the task force representing a state agency
must have:
(1) administrative responsibility for programs for
homeless or elderly persons or persons with disabilities or related
services provided by the agency that the member represents; and
(2) authority to make decisions for and commit
resources of the agency, subject to the approval of the head of the
agency or the board of directors of the agency.
Sec. 2306.1085. OPERATION OF TASK FORCE. (a) The director
serves as the presiding officer of the task force.
(b) The task force shall meet at least quarterly.
(c) The task force shall keep minutes and records of
attendance with respect to the meetings of the task force.
(d) An action taken by the task force must be approved by a
majority vote of the members present.
(e) The task force may select and use advisors.
(f) The department shall provide clerical and advisory
support staff to the task force.
(g) Chapter 2110 does not apply to the task force.
Sec. 2306.1086. GIFTS AND GRANTS. The task force may
solicit and accept gifts, grants, and donations from a public or
private source for use in carrying out the task force's duties under
this subchapter.
Sec. 2306.1087. DUTIES OF TASK FORCE. The task force shall:
(1) coordinate interdepartmental and interagency
plans and develop and annually update a unified initiative plan to:
(A) not later than January 1, 2020, reduce by at
least 20 percent the number of persons desiring and capable of
living independently who are compelled to reside in
Medicaid-supported nursing homes, state institutions, and publicly
supported homeless shelters by making it possible for those persons
to remain and live independently in noninstitutionalized housing,
especially their own homes;
(B) ensure that the numbers of persons and
households assisted under programs under this subchapter in each
uniform state service region are in approximate proportion to the
numbers of eligible persons and households residing in that uniform
state service region;
(C) develop new, more cost-effective programs
and strategies to use existing public and private resources to
provide housing and reduce the residential energy cost burden on
extremely low income homeless or elderly persons or persons with
disabilities;
(D) affirmatively further fair housing
opportunities by making available noninstitutionalized housing
opportunities to extremely low income homeless or elderly persons
or persons with disabilities; and
(E) coordinate housing and health services to
meet the demands of extremely low income homeless or elderly
persons or persons with disabilities by promoting service-enriched
housing opportunities within a wide range of noninstitutionalized
housing, including homes currently owned and rented by those
persons to the extent possible;
(2) determine the programmatic approaches, levels of
funding, and funding sources necessary to carry out the initiative
plan;
(3) research housing needs and programs to achieve the
goals of the initiative plan; and
(4) aggregate, analyze, and report the program
initiatives and resource commitments of each participating agency
with respect to activities under the Texas Affordable Housing
Initiative and certify whether sufficient programs have been
initiated and sufficient resources have been committed to meet the
goals of the initiative plan.
Sec. 2306.1088. REPORT. (a) Not later than September 1,
2010, the task force shall submit a copy of the initiative plan,
including an accounting of the funds allocated or expended and the
number and geographic, demographic, and economic characteristics
of persons served by each participating agency through the
initiative plan, to:
(1) the governor;
(2) the lieutenant governor;
(3) the speaker of the house of representatives;
(4) the Legislative Budget Board;
(5) the legislative oversight committees for the
department; and
(6) the legislative oversight committees for the
Office of Rural Community Affairs.
(b) This section expires December 31, 2010.
Sec. 2306.1089. SERVICE-ENRICHED HOUSING INITIATIVE. (a)
The task force shall plan and take necessary actions to improve
coordination between housing and health services programs to
increase state efforts to offer service-enriched housing,
including:
(1) identifying barriers preventing or slowing
service-enriched housing efforts, such as:
(A) regulatory, administrative, or funding
barriers; or
(B) ineffective or limited coordination among
state agencies;
(2) developing a system and plan to cross-educate
selected staff in agencies represented on the task force and other
state and local agencies to increase the number of staff with
expertise in both housing and health services programs;
(3) identifying opportunities for state housing and
health services agencies to provide technical assistance and
training to local housing and health services entities regarding
the cross-education of staff, agency and entity coordination, and
opportunities to increase local efforts to create service-enriched
housing;
(4) developing suggested performance measures to
track progress in:
(A) reducing or eliminating barriers in creating
service-enriched housing;
(B) increasing the coordination among housing
and health services agencies;
(C) increasing the number of state housing and
health services staff who have expertise in both housing and health
services programs; and
(D) increasing the instances of state housing and
health services staff providing technical assistance to local
communities to increase the number of service-enriched housing
projects; and
(5) implementing the related portions of the
initiative plan and tracking the progress of implementation.
(b) In implementing program activities described by this
section, the task force shall ensure that the provision of
service-enriched housing is available to eligible persons on an
equal basis whether they choose to move from their existing homes to
noninstitutionalized housing developments with enriched services
or whether they elect to receive the services in other
noninstitutionalized housing. The task force shall act to ensure
that no state action or policy forces an elderly person or a person
with a disability to choose between living independently and
obtaining services similar to those provided in an institutional
setting.
SECTION 20. Chapter 301, Property Code, is amended by
adding Subchapter J to read as follows:
SUBCHAPTER J. STATE AND MUNICIPAL ACTIONS FOR
FAIR HOUSING
Sec. 301.201. ADMINISTRATION OF STATE PROGRAMS AND
ACTIVITIES RELATING TO HOUSING AND URBAN DEVELOPMENT. Each state
agency shall administer state programs and activities relating to
housing and urban development in a manner that affirmatively
furthers the goals of fair housing under this chapter.
Sec. 301.202. ADMINISTRATION OF MUNICIPAL PROGRAMS AND
ACTIVITIES RELATING TO HOUSING AND URBAN DEVELOPMENT. Each
municipality shall administer municipal programs and activities
relating to housing and urban development in a manner that
affirmatively furthers the goals of fair housing under this
chapter.
SECTION 21. Section 11.182, Tax Code, is amended by
amending Subsections (b), (e), (h), (j), and (k) and adding
Subsections (b-1) and (b-2) to read as follows:
(b) An organization is entitled to an exemption from
taxation of improved or unimproved real property it owns if the
organization:
(1) is organized as a community housing development
organization;
(2) meets the requirements of a charitable
organization provided by Sections 11.18(e) and (f);
(3) owns the property for the purpose of building or
repairing housing on the property to sell without profit to a
low-income or moderate-income individual or family satisfying the
organization's eligibility requirements or to rent without profit
to such an individual or family; and
(4) engages [exclusively] in the building, repair, and
sale or rental of housing as described by Subdivision (3) and
related activities.
(b-1) Notwithstanding Subsections (b)(1) and (2), an owner
of improved or unimproved real property that is not an organization
described by Subsections (b)(1) and (2) is entitled to an exemption
from taxation of the property under Subsection (b) if the owner
otherwise qualifies for the exemption and the owner is:
(1) a limited partnership of which 100 percent of the
interest of the general partner is owned or controlled by an
organization described by Subsections (b)(1) and (2); or
(2) an entity 100 percent of the interest in which is
owned or controlled by an organization described by Subsections
(b)(1) and (2).
(b-2) A reference in this section to an organization
includes a limited partnership or other entity described by
Subsection (b-1).
(e) In addition to meeting the applicable requirements of
Subsections (b) and (c), to receive an exemption under Subsection
(b) for improved real property that is [includes a housing project
constructed after December 31, 2001, and] financed with qualified
501(c)(3) bonds issued under Section 145 of the Internal Revenue
Code of 1986, tax-exempt private activity bonds subject to volume
cap, or low-income housing tax credits, the organization must:
(1) [control 100 percent of the interest in the
general partner if the project is owned by a limited partnership;
[(2)] comply with all rules of and laws administered
by the Texas Department of Housing and Community Affairs applicable
to community housing development organizations; and
(2) [(3)] submit annually to the Texas Department of
Housing and Community Affairs and to the governing body of each
taxing unit for which the project receives an exemption for the
housing project evidence demonstrating that the organization spent
an amount equal to at least 90 percent of the project's cash flow in
the preceding fiscal year as determined by the audit required by
Subsection (g), for eligible persons in the county in which the
property is located, on social, educational, or economic
development services, capital improvement projects, or rent
reduction.
(h) Subsections (d) and (e)(2) [(e)(3)] do not apply to
property owned by an organization if:
(1) the entity that provided the financing for the
acquisition or construction of the property:
(A) requires the organization to make payments in
lieu of taxes to the school district in which the property is
located; or
(B) restricts the amount of rent the organization
may charge for dwelling units on the property; or
(2) the organization has entered into an agreement
with each taxing unit for which the property receives an exemption
to spend in each tax year for the purposes provided by Subsection
(d) or (e)(2) [(e)(3)] an amount equal to the total amount of taxes
imposed on the property in the tax year preceding the year in which
the organization acquired the property.
(j) An organization may not receive an exemption under
Subsection (b) or (f) for property for a tax year unless the
organization applied for or received an exemption under that
subsection for the property for any part of the 2003 tax year.
(k) Notwithstanding Subsection (j) of this section and
Sections 11.43(a) and (c), an exemption under Subsection (b) or (f)
does not terminate because of a change in the ownership of the
property if the property is sold at a foreclosure sale and, not
later than the 30th day after the date of the sale, the owner of the
property submits to the chief appraiser evidence that the property
is owned by an organization that meets the requirements of
Subsections (b)(1), (2), and (4) or is owned by a limited
partnership described by Subsection (b-1)(1) or an entity described
by Subsection (b-1)(2) that meets the requirements of Subsection
(b)(4). If the owner of the property submits the evidence required
by this subsection, the exemption continues to apply to the
property for the remainder of the current tax year and for
subsequent tax years until the owner ceases to qualify the property
for the exemption. This subsection does not prohibit the chief
appraiser from requiring the owner to file a new application to
confirm the owner's current qualification for the exemption as
provided by Section 11.43(c).
SECTION 22. Sections 11.1825(c) and (t), Tax Code, are
amended to read as follows:
(c) Notwithstanding Subsection (b), an owner of real
property that is not an organization described by that subsection
is entitled to an exemption from taxation of property under this
section if the property otherwise qualifies for the exemption and
the owner is:
(1) a limited partnership of which an organization
that meets the requirements of Subsection (b) controls 100 percent
of the general partner interest; [or]
(2) an entity the parent of which is an organization
that meets the requirements of Subsection (b); or
(3) an entity the parent of which is controlled by an
organization that meets the requirements of Subsection (b).
(t) Notwithstanding Section 11.43(c), an exemption under
this section does not terminate because of a change in ownership of
the property if:
(1) the property is foreclosed on for any reason and,
not later than the 30th day after the date of the foreclosure sale,
the owner of the property submits to the chief appraiser evidence
that the property is owned by:
(A) an organization that meets the requirements
of Subsection (b); or
(B) an entity that meets the requirements of
Subsections (c) and (d); or
(2) in the case of property owned by an entity
described by Subsections (c) and (d), the organization meeting the
requirements of Subsection (b) that controls the general partner
interest of, [or] is the parent of, or controls the parent of the
entity as described by Subsection (c) ceases to serve in that
capacity and, not later than the 30th day after the date the
cessation occurs, the owner of the property submits evidence to the
chief appraiser that the organization has been succeeded in that
capacity by another organization that meets the requirements of
Subsection (b).
SECTION 23. Subchapter C, Chapter 487, Government Code, is
amended by adding Section 487.062 to read as follows:
Sec. 487.062. COMPLIANCE WITH TEXAS AFFORDABLE HOUSING
INITIATIVE. The office shall designate a representative to the
Texas Affordable Housing Initiative Task Force under Section
2306.1084, shall implement the plan enacted, and shall take all
other actions required to achieve the goals of the Texas Affordable
Housing Initiative under Subchapter NN, Chapter 2306.
SECTION 24. Subchapter B, Chapter 531, Government Code, is
amended by adding Section 531.0973 to read as follows:
Sec. 531.0973. COMPLIANCE WITH TEXAS AFFORDABLE HOUSING
INITIATIVE. The commission shall designate a representative to the
Texas Affordable Housing Initiative Task Force under Section
2306.1084, shall implement the plan enacted, and shall take all
other actions required to achieve the goals of the Texas Affordable
Housing Initiative under Subchapter NN, Chapter 2306.
SECTION 25. Subchapter C, Chapter 2306, Government Code, is
amended by adding Section 2306.059 to read as follows:
Sec. 2306.059. COMPLIANCE WITH TEXAS AFFORDABLE HOUSING
INITIATIVE. The department shall designate a representative to the
Texas Affordable Housing Initiative Task Force under Section
2306.1084, shall implement the plan enacted, and shall take all
other actions required to achieve the goals of the Texas Affordable
Housing Initiative under Subchapter NN.
SECTION 26. Subchapter D, Chapter 1001, Health and Safety
Code, is amended by adding Section 1001.076 to read as follows:
Sec. 1001.076. COMPLIANCE WITH TEXAS AFFORDABLE HOUSING
INITIATIVE. The department shall designate a representative to the
Texas Affordable Housing Initiative Task Force under Section
2306.1084, Government Code, shall implement the plan enacted, and
shall take all other actions required to achieve the goals of the
Texas Affordable Housing Initiative under Subchapter NN, Chapter
2306, Government Code.
SECTION 27. Subchapter D, Chapter 117, Human Resources
Code, is amended by adding Section 117.075 to read as follows:
Sec. 117.075. COMPLIANCE WITH TEXAS AFFORDABLE HOUSING
INITIATIVE. The department shall designate a representative to the
Texas Affordable Housing Initiative Task Force under Section
2306.1084, Government Code, shall implement the plan enacted, and
shall take all other actions required to achieve the goals of the
Texas Affordable Housing Initiative under Subchapter NN, Chapter
2306, Government Code.
SECTION 28. Subchapter D, Chapter 161, Human Resources
Code, is amended by adding Section 161.076 to read as follows:
Sec. 161.076. COMPLIANCE WITH TEXAS AFFORDABLE HOUSING
INITIATIVE. The department shall designate a representative to the
Texas Affordable Housing Initiative Task Force under Section
2306.1084, Government Code, shall implement the plan enacted, and
shall take all other actions required to achieve the goals of the
Texas Affordable Housing Initiative under Subchapter NN, Chapter
2306, Government Code.
SECTION 29. Subchapter A, Chapter 12, Utilities Code, is
amended by adding Section 12.006 to read as follows:
Sec. 12.006. COMPLIANCE WITH TEXAS AFFORDABLE HOUSING
INITIATIVE. The commission shall designate a representative to the
Texas Affordable Housing Initiative Task Force under Section
2306.1084, Government Code, shall implement the plan enacted, and
shall take all other actions required to achieve the goals of the
Texas Affordable Housing Initiative under Subchapter NN, Chapter
2306, Government Code.
SECTION 30. Sections 2306.255(g) and 2306.552, Government
Code, are repealed.
SECTION 31. (a) The Texas State Affordable Housing
Corporation is abolished on January 1, 2010.
(b) All powers, duties, obligations, rights, contracts,
funds, unspent appropriations, records, and real or personal
property of the Texas State Affordable Housing Corporation shall be
transferred to the Texas Department of Housing and Community
Affairs not later than January 1, 2010.
(c) A policy, procedure, or decision of the Texas State
Affordable Housing Corporation relating to a duty of that
corporation that is transferred to the authority of the Texas
Department of Housing and Community Affairs under Section 2306.551,
Government Code, as amended by this Act, continues in effect as a
policy, procedure, or decision of the Texas Department of Housing
and Community Affairs until superseded by an act of the director of
the Texas Department of Housing and Community Affairs.
(d) Except as otherwise provided by this Act, the validity
of a plan or procedure adopted, contract or acquisition made,
proceeding begun, grant or loan awarded, obligation incurred, right
accrued, or other action taken by or in connection with the
authority of the Texas State Affordable Housing Corporation before
that corporation is abolished under Subsection (a) of this section
is not affected by the abolishment.
(e) The director of the Texas Department of Housing and
Community Affairs shall adopt rules relating to the transfer of the
programs assigned to the Texas Department of Housing and Community
Affairs under Section 2306.551, Government Code, as amended by this
Act, not later than October 1, 2009.
SECTION 32. The executive director of the Texas Department
of Housing and Community Affairs shall submit to the governing
board of the department the first long-range state low income
housing plan, as required by Section 2306.0725, Government Code, as
added by this Act, not later than March 18, 2010.
SECTION 33. The Texas Department of Housing and Community
Affairs shall adopt the rules required by Section 2306.0971,
Government Code, as added by this Act, not later than December 1,
2009.
SECTION 34. The changes in law made by this Act relating to
applications and evaluations of applications for financial
assistance administered by the Texas Department of Housing and
Community Affairs apply only to an application filed on or after the
effective date of this Act. An application filed before the
effective date of this Act is governed by the law in effect on the
date the application was filed, and the former law is continued in
effect for that purpose.
SECTION 35. The Texas Department of Housing and Community
Affairs shall adopt rules as necessary to implement and enforce
Section 2306.6737, Government Code, as added by this Act, not later
than November 1, 2009.
SECTION 36. As soon as possible after the effective date of
this Act, the governor and the heads of the applicable state
agencies shall appoint members to the Texas Affordable Housing
Initiative Task Force in accordance with Subchapter NN, Chapter
2306, Government Code, as added by this Act.
SECTION 37. Sections 11.182 and 11.1825, Tax Code, as
amended by this Act, apply only to ad valorem taxes imposed for a
tax year beginning on or after the effective date of this Act.
SECTION 38. This Act does not make an appropriation. A
provision in this Act that creates a new governmental program,
creates a new entitlement, or imposes a new duty on a governmental
entity is not mandatory during a fiscal period for which the
legislature has not made a specific appropriation to implement the
provision.
SECTION 39. (a) Except as provided by Subsections (b) and
(c) of this section, this Act takes effect September 1, 2009.
(b) Sections 2306.122 and 2306.6736, Government Code, as
added by this Act, take effect immediately if this Act receives a
vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect,
Sections 2306.122 and 2306.6736, Government Code, as added by this
Act, take effect September 1, 2009.
(c) Sections 11.182 and 11.1825, Tax Code, as amended by
this Act, take effect January 1, 2010.