82R9223 JAM-F
By: J. Davis of Harris H.B. No. 2660
A BILL TO BE ENTITLED
AN ACT
relating to transferring certain functions of the Texas Department
of Housing and Community Affairs to the Texas State Affordable
Housing Corporation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1372.0221, Government Code, is amended
to read as follows:
Sec. 1372.0221. DEDICATION OF PORTION OF STATE CEILING FOR
PROFESSIONAL EDUCATORS HOME LOAN PROGRAM. Until August 7, out of
that portion of the state ceiling that is available exclusively for
reservations by the Texas State Affordable Housing Corporation
under Section 1372.0223, 20 [54.5] percent shall be allotted each
year and made available to the corporation for the purpose of
issuing qualified mortgage bonds in connection with the
professional educators home loan program established under Section
2306.562.
SECTION 2. Section 1372.0222, Government Code, is amended
to read as follows:
Sec. 1372.0222. DEDICATION OF PORTION OF STATE CEILING FOR
FIRE FIGHTER, LAW ENFORCEMENT OR SECURITY OFFICER, AND EMERGENCY
MEDICAL SERVICES PERSONNEL HOME LOAN PROGRAM. Until August 7, out
of that portion of the state ceiling that is available exclusively
for reservations by the Texas State Affordable Housing Corporation
under Section 1372.0223, 10 [45.5] percent shall be allotted each
year and made available to the corporation for the purpose of
issuing qualified mortgage bonds in connection with the fire
fighter, law enforcement or security officer, and emergency medical
services personnel home loan program established under Section
2306.5621.
SECTION 3. Subchapter B, Chapter 1372, Government Code, is
amended by adding Section 1372.02221 to read as follows:
Sec. 1372.02221. DEDICATION OF PORTION OF STATE CEILING FOR
PROGRAMS ADMINISTERED BY TEXAS STATE AFFORDABLE HOUSING
CORPORATION. Until August 7, out of that portion of the state
ceiling that is available exclusively for reservations by the Texas
State Affordable Housing Corporation under Section 1372.0223, 70
percent shall be allotted each year and made available to the
corporation for the purpose of issuing qualified mortgage bonds in
connection with the programs established under Sections 2306.562
and 2306.5621 or any other home loan program administered by the
corporation.
SECTION 4. Section 1372.0223, Government Code, is amended
to read as follows:
Sec. 1372.0223. DEDICATION OF PORTION OF STATE CEILING TO
[CERTAIN] ISSUERS OF QUALIFIED MORTGAGE BONDS. Until August 7, out
of that portion of the state ceiling that is available exclusively
for reservations by issuers of qualified mortgage bonds under
Section 1372.022:
(1) 40 [10] percent is available exclusively to the
Texas State Affordable Housing Corporation for the purpose of
issuing qualified mortgage bonds; and
(2) 60 [56.66] percent is available exclusively to
housing finance corporations for the purpose of issuing qualified
mortgage bonds.
SECTION 5. Sections 1372.0231(a), (b-1), (c), (d), (g), and
(i), Government Code, are amended to read as follows:
(a) Until August 15, of that portion of the state ceiling
that is available exclusively for reservations by issuers of
qualified residential rental project bonds:
(1) 80 [20 percent is available exclusively to the
Texas Department of Housing and Community Affairs in the manner
described by Subsection (b);
[(2) 70] percent is available exclusively to housing
finance corporations in the manner described by Subsections
(c)-(f); and
(2) 20 [(3) 10] percent is available exclusively to
the Texas State Affordable Housing Corporation in the manner
described by Subsection (b-1).
(b-1) With respect to the amount of the state ceiling set
aside under Subsection (a)(2) [(a)(3)], the board shall issue
qualified residential rental project bonds and allocate bond funds
at the direction of the Texas State Affordable Housing Corporation
as provided by Section 2306.565. Issuances made by the board under
this subsection are subject to review and approval by the board
under Section 1231.041.
(c) With respect to the amount of the state ceiling set
aside under Subsection (a)(1) [(a)(2)], the board shall grant
reservations in a manner that ensures that not more than 50 percent
of the set-aside amount is used for proposed projects that are
located in qualified census tracts as defined by the most recent
publication by the United States Department of Housing and Urban
Development.
(d) Except as provided by Subsection (i), before May 1, the
board shall apportion the amount of the state ceiling set aside
under Subsection (a)(1) [(a)(2)] among the uniform state service
regions according to the percentage of the state's population that
resides in each of those regions.
(g) On or after May 1, the board may not grant available
reservations to housing finance corporations described by
Subsection (a)(1) [(a)] based on uniform state service regions or
any segments of those regions.
(i) Before May 1, the board shall apportion the amount of
the state ceiling set aside under Subsection (a)(1) [(a)(2)] only
among uniform state service regions with respect to which an issuer
has submitted an application for a reservation of the state ceiling
on or before March 1.
SECTION 6. Section 1372.025(b), Government Code, is amended
to read as follows:
(b) Subsection (a) does not apply to qualified mortgage
bonds or qualified residential rental project bonds made available
exclusively to [the Texas Department of Housing and Community
Affairs under Section 1372.023 or] the Texas State Affordable
Housing Corporation under Sections 1372.0221, [and] 1372.0222, and
1372.02221.
SECTION 7. Section 1372.028(d), Government Code, is amended
to read as follows:
(d) An issuer is not required to provide the statement
required by Subsection (c)(3)(F) if the issuer:
(1) is an issuer of a state-voted issue;
(2) is the [Texas Department of Housing and Community
Affairs or the] Texas State Affordable Housing Corporation; or
(3) provides evidence that one or more binding
contracts have been entered into, or other evidence acceptable to
the board as described by program rule, to spend the unexpended
proceeds by the later of:
(A) 12 months after the date the board receives
the application; or
(B) December 31 of the program year for which the
application is filed.
SECTION 8. Section 1372.037(a), Government Code, is amended
to read as follows:
(a) Except as provided by Subsection (b), before August 15
the board may not grant for any single project a reservation for
that year that is greater than:
(1) $40 million, if the issuer is an issuer of
qualified mortgage bonds, other than the [Texas Department of
Housing and Community Affairs or the] Texas State Affordable
Housing Corporation;
(2) $50 million, if the issuer is an issuer of a
state-voted issue, other than the Texas Higher Education
Coordinating Board, or $75 million, if the issuer is the Texas
Higher Education Coordinating Board;
(3) the amount to which the Internal Revenue Code
limits issuers of qualified small issue bonds and enterprise zone
facility bonds, if the issuer is an issuer of those bonds;
(4) the lesser of $20 million or 15 percent of the
amount set aside for reservation by issuers of qualified
residential rental project bonds, if the issuer is an issuer of
those bonds;
(5) the amount as prescribed in Sections 1372.033(d),
(e), and (f), if the issuer is an issuer authorized by Section
53B.47, Education Code, to issue qualified student loan bonds; or
(6) $50 million, if the issuer is any other issuer of
bonds that require an allocation.
SECTION 9. Section 1372.040, Government Code, is amended to
read as follows:
Sec. 1372.040. RESERVATION BY CERTAIN ISSUERS OF QUALIFIED
MORTGAGE BONDS OF MONEY FOR MORTGAGES FOR CERTAIN PERSONS. An
issuer of qualified mortgage bonds, other than the [Texas
Department of Housing and Community Affairs or the] Texas State
Affordable Housing Corporation, shall reserve for six months 50
percent of the funds available for loans outside the federally
designated target areas to provide mortgages to individuals and
families with incomes below 80 percent of the applicable median
family income, as defined by Section 143(f)(4), Internal Revenue
Code (26 U.S.C. Section 143(f)(4)).
SECTION 10. Section 2306.1076(b), Government Code, is
amended to read as follows:
(b) The [In addition to funds set aside for the program
under Section 1372.023, the] department may solicit and accept
funding for the program from gifts and grants for the purposes of
this section.
SECTION 11. Section 2306.253, Government Code, is
transferred to Subchapter Y, Chapter 2306, Government Code,
redesignated as Section 2306.570, Government Code, and amended to
read as follows:
Sec. 2306.570 [2306.253]. HOMEBUYER EDUCATION PROGRAM.
(a) The corporation [department] shall develop and implement a
statewide homebuyer education program designed to provide
information and counseling to prospective homebuyers about the home
buying process.
(b) The corporation [department] shall develop the program
in cooperation with the Texas AgriLife [Agricultural] Extension
Service, the Health and [Texas Department of] Human Services
Commission, the Real Estate [Research] Center at Texas A&M
University, the Texas Workforce Commission, experienced homebuyer
education providers, community-based organizations, and advocates
of affordable housing. When feasible, the corporation [The
department] shall implement the program through the self-help
centers established under Subchapter Z [when feasible].
(c) The corporation [department] shall make full use of
existing training and informational materials available from
sources such as the United States Department of Housing and Urban
Development, the cooperative extension system, the Neighborhood
Reinvestment Corporation, and existing homebuyer education
providers.
(d) In order to implement this section, the corporation
[department] may use money available to the corporation
[department] for housing purposes that the corporation
[department] is not prohibited from spending on the homebuyer
education program, including:
(1) the amount of administrative or service fees the
corporation [department] receives from the issuance or refunding of
bonds that exceeds the amount the corporation [department] needs to
pay its overhead costs in administering its bond programs; and
(2) money the corporation [department] receives from
other entities by gift or grant under a contract.
SECTION 12. The heading to Section 2306.565, Government
Code, is amended to read as follows:
Sec. 2306.565. ISSUANCE OF QUALIFIED RESIDENTIAL RENTAL
PROJECT BONDS; ALLOCATION OF BOND FUNDS; COMPLIANCE MONITORING.
SECTION 13. Section 2306.565, Government Code, is amended
by adding Subsection (k) to read as follows:
(k) The corporation shall perform compliance monitoring and
physical inspections to ensure that recipients of money funded by
bonds issued by the corporation or the department under Section
1372.0231(a) comply with all legal and contractual requirements for
receiving that money, except that the department shall continue to
perform compliance monitoring and physical inspections in relation
to contracts maintained under department programs that are
otherwise funded using federal money.
SECTION 14. The following provisions of the Government Code
are repealed:
(1) Section 1372.023;
(2) Section 1372.0231(b), as amended by Chapters 330
(S.B. 264) and 1329 (S.B. 1664), Acts of the 78th Legislature,
Regular Session, 2003; and
(3) Section 1372.0231(h).
SECTION 15. The change in law made by this Act in amending
Chapter 1372, Government Code, applies only to a reservation of
state ceiling granted on or after January 1, 2012.
SECTION 16. This Act takes effect immediately if it
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, this Act takes effect September 1, 2011.