82R4537 AJZ-D
By: Vo H.B. No. 741
A BILL TO BE ENTITLED
AN ACT
relating to criteria for financing certain multifamily housing
developments.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.223, Government Code, is amended to
read as follows:
Sec. 2306.223. CRITERIA FOR FINANCING HOUSING DEVELOPMENT
OF HOUSING SPONSOR. (a) Notwithstanding any other provision of
this chapter, the department may not finance a housing development
undertaken by a housing sponsor under this chapter, unless the
department first determines that:
(1) the housing development is necessary to provide
needed decent, safe, and sanitary housing at rentals or prices that
individuals or families of low and very low income or families of
moderate income can afford;
(2) the housing sponsor undertaking the proposed
housing development will supply well-planned and well-designed
housing for individuals or families of low and very low income or
families of moderate income;
(3) the housing sponsor is financially responsible;
(4) the housing sponsor is not, or will not enter into
a contract for the proposed housing development with, a housing
developer that:
(A) is on the department's debarred list,
including any parts of that list that are derived from the debarred
list of the United States Department of Housing and Urban
Development;
(B) breached a contract with a public agency; or
(C) misrepresented to a subcontractor the extent
to which the developer has benefited from contracts or financial
assistance that has been awarded by a public agency, including the
scope of the developer's participation in contracts with the agency
and the amount of financial assistance awarded to the developer by
the agency;
(5) the financing of the housing development is a
public purpose and will provide a public benefit; [and]
(6) the housing development will be undertaken within
the authority granted by this chapter to the housing finance
division and the housing sponsor; and
(7) for a general multifamily housing development that
will be located within the boundaries of a small school district and
consist only of new construction, the addition of the housing
development will not cause the total number of housing units within
such developments within the boundaries of the district to exceed
60 units per square mile.
(b) In this section:
(1) "General multifamily housing development" means a
multifamily housing development that will not primarily serve
elderly individuals.
(2) "Small school district" means a school district
that is 50 square miles or less in size.
SECTION 2. The change in law made by this Act in amending
Section 2306.223, Government Code, applies only to a multifamily
housing development for which the Texas Department of Housing and
Community Affairs first awards financing for new construction on or
after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2011.