By: J. Davis of Harris, Dutton H.B. No. 2660
A BILL TO BE ENTITLED
AN ACT
relating to the functions of the Texas Department of Housing and
Community Affairs and transferring certain department functions to
the Texas State Affordable Housing Corporation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter K, Chapter 2306, Government Code, is
amended by adding Section 2306.2585 to read as follows:
Sec. 2306.2585. HOMELESS HOUSING AND SERVICES PROGRAM. (a)
The department may administer a homeless housing and services
program in each municipality in this state with a population of
285,500 or more to:
(1) provide for the construction, development, or
procurement of housing for homeless persons; and
(2) provide local programs to prevent and eliminate
homelessness.
(b) If the department implements the homeless housing and
services program under Subsection (a), the department shall adopt
rules to govern the program, including rules that:
(1) provide for the allocation of any available
funding; and
(2) provide detailed guidelines as to the scope of the
local programs in the municipalities described by Subsection (a).
(c) The department may use any available revenue, including
legislative appropriations, and shall solicit and accept gifts and
grants for the purposes of this section. The department shall use
gifts and grants received for the purposes of this section before
using any other revenue.
SECTION 2. 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 3. 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 4. 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 5. 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 6. Section 1372.023, Government Code, is amended by
adding Subsection (d) to read as follows:
(d) The Texas Department of Housing and Community Affairs
may not issue qualified mortgage bonds after September 1, 2011,
except as necessary to complete its activity under the New Issue
Bond Program.
SECTION 7. Section 1372.025(b), Government Code, is amended
to read as follows:
(b) Subsection (a) does not apply to:
(1) [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
(2) qualified mortgage bonds made available
exclusively to the Texas State Affordable Housing Corporation under
Sections 1372.0221, [and] 1372.0222, and 1372.02221.
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. Subchapter Y, Chapter 2306, Government Code, is
amended by adding Section 2306.5622 to read as follows:
Sec. 2306.5622. TEXAS FIRST-TIME HOMEBUYER PROGRAM. (a)
In this section:
(1) "First-time homebuyer" means a person who has not
owned a home during the three years preceding the date on which an
application under this section is filed.
(2) "Home" means a dwelling in this state in which a
first-time homebuyer intends to reside as the homebuyer's principal
residence.
(3) "Program" means the Texas First-Time Homebuyer
Program.
(b) The Texas First-Time Homebuyer Program shall facilitate
the origination of single-family mortgage loans for eligible
first-time homebuyers.
(c) The program may include down payment and closing cost
assistance.
(d) The corporation shall administer the program.
(e) The board of directors of the corporation shall adopt
rules governing:
(1) the administration of the program;
(2) the making of loans under the program;
(3) the criteria for approving participating mortgage
lenders;
(4) the use of insurance on the loans and the homes
financed under the program, as considered appropriate by the
corporation's board to provide additional security for the loans;
(5) the verification of occupancy of the home by the
homebuyer as the homebuyer's principal residence; and
(6) the terms of any contract made with any mortgage
lender for processing, originating, servicing, or administering
the loans.
(f) To be eligible for a mortgage loan under this section, a
homebuyer must:
(1) qualify as a first-time homebuyer under this
section;
(2) have an income of not more than 115 percent of area
median family income or 140 percent of area median family income in
targeted areas; and
(3) meet any additional requirements or limitations
prescribed by the corporation.
(g) To be eligible for a loan under this section to assist a
homebuyer with down payment and closing costs, a homebuyer must:
(1) qualify as a first-time homebuyer under this
section;
(2) have an income of not more than 80 percent of area
median family income; and
(3) meet any additional requirements or limitations
prescribed by the corporation.
(h) The corporation may contract with other agencies of the
state or with private entities to determine whether applicants
qualify as first-time homebuyers under this section or otherwise to
administer all or part of this section.
(i) The board of directors of the corporation may set and
collect from each applicant any fees that board considers
reasonable and necessary to cover the expenses of administering the
program.
(j) The corporation shall ensure that a loan under this
section is structured in a way that complies with any requirements
associated with the source of the funds used for the loan.
(k) In addition to funds set aside for the program under
Section 1372.0223(1), the corporation 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. Section 2306.591(b), Government Code, is
amended to read as follows:
(b) An owner of a manufactured home is not eligible to
participate in a grant loan program offered by the department[,
including the single-family mortgage revenue bond program under
Section 2306.142,] unless the owner complies with Subsection (a).
SECTION 13. The following provisions of the Government Code
are repealed:
(1) Section 1372.023(a);
(2) Sections 2306.142 and 2306.143; and
(3) Subchapter MM, Chapter 2306.
SECTION 14. 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 15. (a) As soon as practicable after the effective
date of this Act, the Texas Department of Housing and Community
Affairs and the Texas State Affordable Housing Corporation shall
develop a transition plan for transferring the functions performed
by the department under Subchapter MM, Chapter 2306, Government
Code, to the corporation. The transition plan must include a
timetable with specific steps and deadlines needed to complete the
transfer.
(b) In accordance with the transition plan developed by the
Texas Department of Housing and Community Affairs and the Texas
State Affordable Housing Corporation under Subsection (a) of this
section, on November 1, 2011:
(1) all functions and activities relating to
Subchapter MM, Chapter 2306, Government Code, performed by the
Texas Department of Housing and Community Affairs immediately
before that date are transferred to the Texas State Affordable
Housing Corporation under Section 2306.5622, Government Code, as
added by this Act;
(2) a rule or form adopted by the executive director of
the Texas Department of Housing and Community Affairs that relates
to Subchapter MM, Chapter 2306, Government Code, is a rule or form
of the Texas State Affordable Housing Corporation and remains in
effect until amended or replaced by the corporation;
(3) a reference in law to or an administrative rule of
the Texas Department of Housing and Community Affairs that relates
to Subchapter MM, Chapter 2306, Government Code, means the Texas
State Affordable Housing Corporation;
(4) a loan issued by the Texas Department of Housing
and Community Affairs under Subchapter MM, Chapter 2306, Government
Code, or an application for a loan under that subchapter pending
before the department on the effective date of this Act is
transferred without change in status to the Texas State Affordable
Housing Corporation, and the corporation assumes, as appropriate
and without a change in status, the position of the department in
relation to that loan or application;
(5) any employee of the Texas Department of Housing
and Community Affairs who is primarily involved in administering
Subchapter MM, Chapter 2306, Government Code, becomes an employee
of the Texas State Affordable Housing Corporation;
(6) all money, contracts, leases, property, and
obligations of the Texas Department of Housing and Community
Affairs that are related to Subchapter MM, Chapter 2306, Government
Code, are transferred to the Texas State Affordable Housing
Corporation;
(7) all property that is in the custody of the Texas
Department of Housing and Community Affairs and related to
Subchapter MM, Chapter 2306, Government Code, is transferred to the
Texas State Affordable Housing Corporation; and
(8) the unexpended and unobligated balance of any
money that is appropriated by the legislature for the Texas
Department of Housing and Community Affairs and related to
Subchapter MM, Chapter 2306, Government Code, is transferred to the
Texas State Affordable Housing Corporation.
(c) Before November 1, 2011, the Texas Department of Housing
and Community Affairs may agree with the Texas State Affordable
Housing Corporation to transfer any property of the department to
the corporation to implement the transfer required by this Act.
(d) In the period beginning on the effective date of this
Act and ending on November 1, 2011, the Texas Department of Housing
and Community Affairs shall continue to perform functions and
activities under Subchapter MM, Chapter 2306, Government Code, as
if that subchapter had not been repealed by this Act, and the former
law is continued in effect for that purpose.
SECTION 16. This Act takes effect September 1, 2011.