83R10483 JAM-F
By: Lucio S.B. No. 1551
A BILL TO BE ENTITLED
AN ACT
relating to the provision of affordable housing and other services
in the Lower Rio Grande Valley.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 301, Labor Code, is
amended by adding Section 301.070 to read as follows:
Sec. 301.070. LOCAL HIRING PROGRAM IN LOWER RIO GRANDE
VALLEY. (a) This section applies only to employment arising in
connection with a federal or state contract or grant in relation to
a public construction project in the Lower Rio Grande Valley.
(b) The commission shall develop, promulgate, monitor, and
enforce regulations necessary to ensure that, to the greatest
extent feasible, and consistent with existing federal, state, and
local laws and regulations, opportunities for training and
employment are given to persons of low and very low income who
reside in the census tract, metropolitan area, or county in which
the project described by Subsection (a) is located.
(c) The commission shall use existing services or
procedures to provide job information services, job referral, and
reporting and tracking to support the goals and activities provided
under this section.
(d) The commission shall establish uniform procedures for
state agencies to use and provisions to include in contracts and
grant agreements to implement this section. The commission shall
establish uniform penalties and sanctions to be applied to secure
the hiring and contracting outcomes required under this section.
(e) The commission may establish incentives to be awarded to
contractors who comply with the hiring and contracting requirements
under this section.
(f) The commission shall give priority to establishing
requirements that provide that:
(1) not less than 30 percent of the persons employed to
carry out a project are persons of low and very low income residing
within the smallest geographic service area in which the project is
located; and
(2) not less than 15 percent of contracts or
subcontracts are awarded to business concerns that provide economic
opportunities for persons of low and very low income who reside in
the area in which the project is located.
(g) In this section, "a business concern that provides
economic opportunities" means a business concern that meets
criteria established by the commission.
SECTION 2. Subtitle C, Title 12, Local Government Code, is
amended by adding Chapter 394A to read as follows:
CHAPTER 394A. LOWER RIO GRANDE VALLEY COLONIA AND REGIONAL
HOUSING DEVELOPMENT INITIATIVE
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 394A.001. DEFINITIONS. In this chapter:
(1) "Authority" means the Land Use, Colonia, and
Housing Authority established under Section 394A.151.
(2) "Board" means the board of directors of the
authority.
(3) "Council" means the Lower Rio Grande Valley
Development Council.
(4) "Development district" means an enhanced urban
residential development district established under Subchapter F.
(5) "District" means a colonia improvement district
established under Subchapter E.
Sec. 394A.002. APPLICABILITY. This chapter applies only to
Cameron, Hidalgo, and Willacy Counties and the Lower Rio Grande
Valley Development Council.
SUBCHAPTER B. POWERS AND DUTIES OF COUNCIL
Sec. 394A.051. POWERS AND DUTIES OF COUNCIL. In
administering this chapter, the council shall:
(1) employ staff to carry out housing planning and
program contracting activities;
(2) provide for the maximum feasible participation of
persons of low, very low, and extremely low income and residents of
colonias, colonia improvement districts, and enhanced urban
residential development districts in the programs established
under this chapter;
(3) utilize nonprofit housing providers located
within the region to carry out housing activities unless the
authority makes a determination through a competitive procurement
process that:
(A) nonprofit housing providers in the region
cannot provide the services; or
(B) the cost of services would be materially in
excess of that of other providers;
(4) prepare a regional analysis of impediments to fair
housing in a manner consistent with the requirements of the United
States Department of Housing and Urban Development and:
(A) adopt plans, administer programs, and expend
resources in a manner that addresses the issues identified in the
analysis; and
(B) provide an annual statement on its website
detailing the progress made implementing action steps to overcome
the impediments identified in the analysis;
(5) provide information to state and federal agencies,
as needed;
(6) maintain on its website a list of associations
representing low-income persons and colonias;
(7) maintain and post on its website all transcripts,
accounts, minutes, and other records related to the meetings of the
authority; and
(8) adopt and implement a local and regional hiring
plan that is consistent with:
(A) Section 394A.057;
(B) Section 301.070, Labor Code; and
(C) standards and regulations adopted by the
United States Department of Housing and Urban Development and the
General Land Office.
Sec. 394A.052. HOUSING AND COMMUNITY DEVELOPMENT INVENTORY
AND MARKET ASSESSMENT. (a) Every five years, the council shall
prepare for review and approval by the authority a regional
assessment of community development conditions in colonias that
includes an assessment of public services and facilities and
housing availability, affordability, conditions, needs, and market
demand.
(b) To determine housing needs under Subsection (a), the
council shall use the methodology established by the United States
Department of Housing and Urban Development to assess worst-case
housing needs of homeowners and renters.
Sec. 394A.053. AFFORDABLE HOUSING PLAN. (a) Annually the
council shall develop for review and approval by the authority a
plan to expend resources made available to the council under this
chapter for owner and renter occupied housing.
(b) The council's housing program allocations, housing
policies, and community development policies impacting housing
shall be consistent with those necessary to prioritize assistance
to worst-case housing needs of homeowners and renters identified
through the assessment conducted under Section 394A.052.
Sec. 394A.054. ADMINISTRATION OF FUNDS. (a) In
administering funds under this chapter, the council shall:
(1) expend no more than eight percent of available
funds for program administration purposes;
(2) ensure that administrative expenses are
consistent with any requirements or restrictions imposed by a grant
or funding source;
(3) expend funds in a manner that benefits households
of low, very low, and extremely low income at levels proportionate
to their percentage of households in the region that have
worst-case housing needs;
(4) ensure that programs are efficiently and promptly
administered; and
(5) allocate money in a manner that is consistent with
an affordable housing plan adopted under Section 394A.053.
(b) To ensure efficient implementation of the programs
provided under this chapter, a state agency that transfers funds to
the council may:
(1) establish expenditure schedules for money
provided to the council under this chapter;
(2) reclaim funds that are not spent in a manner
consistent with a schedule established under Subdivision (1); and
(3) redistribute funds reclaimed under Subdivision
(2) to support affordable housing in the region in a manner that is
consistent with this chapter.
Sec. 394A.055. COOPERATION WITH COLONIA OMBUDSPERSONS. (a)
The council shall enter into an agreement with the secretary of
state to assign colonia ombudspersons currently working in the
region to cooperate with the council to carry out the purposes,
activities, and plans established in this chapter.
(b) The colonia ombudspersons shall support the council in
carrying out this chapter by producing, updating, and maintaining
an accurate publicly available database of colonias that documents
the availability, conditions, and adequacy of housing and public
services in those colonias, including streetlights, storm
drainage, garbage collection, public transportation, roads,
sidewalks, distance to the schools that serve the colonia, commute
times for students to those schools, and distance to essential
services, including hospitals and grocery stores.
Sec. 394A.056. MODEL SUBDIVISION RULES; STUDY,
MODIFICATION, AND ENFORCEMENT. (a) In conjunction with the
colonia ombudspersons, the council shall review ongoing compliance
with existing model subdivision rules in colonias and new
subdivisions and survey the effectiveness of existing model
subdivision rules by examining health and safety conditions in
subdivisions developed under existing rules.
(b) Based on the review conducted under Subsection (a), the
council shall recommend to the counties in its jurisdiction any
necessary changes to model subdivision rules needed to:
(1) protect the health, safety, and financial
condition of the residents of affected subdivisions and colonias;
and
(2) ensure that colonias are provided infrastructure
that will facilitate their annexation into adjacent incorporated
cities.
(c) The council shall determine and recommend to a county
commissioners court any necessary additional public improvements
to the model subdivision rules not currently required in order to
provide essential public safety amenities, including sidewalks,
streetlights, safe roads, access to public transportation and
schools, and proper interconnection with transportation systems.
(d) The council shall investigate issues of noncompliance
with the model subdivision rules, refer noncompliance issues to the
appropriate county attorney, and consider initiating enforcement
actions.
(e) On receipt of a petition filed in a manner prescribed by
the council and signed by residents comprising five percent of the
total households residing in a colonia, the council, with the
approval of the authority, may initiate a legal action on behalf of
residents of the colonia to enforce model subdivision rules by
suing the developer of the colonia for a violation of the rules.
(f) The council may utilize available funds and apply for
grants and other funding sources to support the cost of dedicated
personnel within the county attorney's office to enforce model
subdivision rules.
Sec. 394A.057. REGIONAL HIRING PLAN; ADVISORY COMMITTEE.
(a) The council, with the approval of the authority, shall
establish a regional hiring plan that complies with Section
301.070, Labor Code. The plan must provide for outreach to workers
and qualified businesses, public information, job training
activities, compliance certification, and reporting requirements
for hiring for projects using financial assistance provided by the
council.
(b) Reporting requirements under the plan must provide for
monthly reports which detail for each grant or contract the number
of workers hired and retained, the number of hours worked, and the
amount of gross wages paid.
(c) The council shall establish a monitoring and advisory
committee to review reports submitted under this section. The
committee shall advise the council and the authority regarding the
effectiveness of the plan and the plan's compliance with Section
301.070, Labor Code.
SUBCHAPTER C. FINANCING OF PROGRAMS
Sec. 394A.101. COMMUNITY DEVELOPMENT BLOCK GRANT COLONIA
SET-ASIDE. The Department of Agriculture shall transfer to the
council each year a portion of the community development block
grant allocation received from the United States Department of
Housing and Urban Development that is required under federal law to
be used in colonias. The amount transferred shall be calculated
based on Cameron, Hidalgo, and Willacy Counties' pro rata share of
the number of colonia residents in this state as determined by the
secretary of state. The council shall provide reports and maintain
records as required by the Department of Agriculture for purposes
of accounting, compliance, and reporting to the United States
Department of Housing and Urban Development. The Department of
Agriculture shall transfer a proportionate share of the state's
community development block grant allocation of administrative
funds to the council to carry out activities under this chapter.
Sec. 394A.102. TRANSPORTATION AND PUBLIC SAFETY RESOURCES.
The Texas Department of Transportation and the Texas Department of
Public Safety shall cooperate with the council to identify funding
resources and prioritize existing regional funding for a colonia
public safety program.
Sec. 394A.103. SETTLEMENT FUNDS FROM COLONIA ENFORCEMENT
LITIGATION. The attorney general shall transfer to the council for
use in carrying out activities authorized under this chapter funds
in excess of attorney's fees secured through litigation related to
colonias and model subdivision rules in cases arising in Cameron,
Hidalgo, and Willacy Counties.
Sec. 394A.104. OTHER FUNDS. The council may apply for
grants and use other funds available to it to carry out the purposes
of this chapter.
SUBCHAPTER D. LAND USE, COLONIA, AND HOUSING AUTHORITY
Sec. 394A.151. LAND USE, COLONIA, AND HOUSING AUTHORITY.
The council shall establish a Land Use, Colonia, and Housing
Authority.
Sec. 394A.152. POWERS AND DUTIES OF AUTHORITY. The
authority shall:
(1) review and approve the housing and community
development inventory and market assessment developed under
Section 394A.052;
(2) review and approve the affordable housing plan
developed under Section 394A.053;
(3) review and approve the regional low-income housing
tax credit enhancements provided under Section 2306.67251,
Government Code;
(4) cooperate with existing local housing finance
corporations;
(5) approve the establishment of colonia improvement
districts under Subchapter E;
(6) approve colonia improvement district plans;
(7) assess the effectiveness of and make
recommendations for the model subdivision rules;
(8) approve enhanced urban residential development
districts and related incentives;
(9) oversee the colonia covenant enactment and
enforcement program;
(10) monitor and advise the council on all activities
under the authority's jurisdiction;
(11) develop a plan for the allocation of resources
provided under Section 394A.102; and
(12) establish a citizen participation process
designed to secure effective involvement of the intended
beneficiaries of the activities, funds, programs, and policies
established by or administered under this chapter.
Sec. 394A.153. BOARD; QUALIFICATIONS OF MEMBERS. (a) The
authority is governed by a board appointed by the council.
(b) The council shall appoint to the board from each county:
(1) the county judge;
(2) the mayor of the most populous municipality;
(3) an elected official from a municipality not
described by Subdivision (2);
(4) a county director of planning;
(5) a resident of a colonia;
(6) a representative of a nonprofit organization
representing colonia residents; and
(7) a person of extremely low or very low income living
in an incorporated area.
(c) At least one member selected under Subsection (b)(3)
must be from a municipality with a population of less than 5,000.
(d) The council shall establish rules and procedures to
prevent conflicts of interest on the part of members. A person may
not be a member of the board if the person or the person's spouse:
(1) is employed by or participates in the management
of a business entity or other organization regulated by or
receiving money from the authority;
(2) owns or controls, directly or indirectly, more
than a 10 percent interest in a business entity or other
organization regulated by or receiving money from the authority; or
(3) uses or receives a substantial amount of tangible
goods, services, or money from the authority other than
compensation or reimbursement authorized by law for board
membership, attendance, or expenses.
Sec. 394A.154. TERMS OF MEMBERS. Members appointed under
Sections 394A.153(b)(1)-(4) are eligible to serve as long as the
member holds the office or position which qualified them for the
appointment. All other members serve staggered three-year terms
with the terms of three members expiring each year.
Sec. 394A.155. MEETINGS OF AUTHORITY. (a) The authority's
internal auditor, fraud prevention coordinator, or ethics advisor
may meet in an executive session of the board to discuss issues
related to fraud, waste, or abuse.
(b) Meetings of the authority are subject to the open
meetings law, Chapter 551, Government Code. Authority board members
shall receive training in the requirements of that chapter.
(c) The authority:
(1) may hold meetings when called by the presiding
officer or seven of the members;
(2) shall keep minutes and complete transcripts of
meetings;
(3) shall post on the council's website not later than
the third day before the date of a board meeting all materials
provided to the board that are relevant to a matter proposed for
discussion at the meeting;
(4) shall make available in hard copy format to the
members of the public in attendance at the meeting any materials
provided to the board by the council at a board meeting;
(5) shall provide for public comment for each item on
the board's agenda at the meeting after the presentation made by
council staff and the motions made by the board on that topic; and
(6) shall adopt rules that give the public a
reasonable amount of time for testimony at meetings.
Sec. 394A.156. ADOPTION OF AFFORDABLE HOUSING PLAN; HEARING
REQUIRED. (a) Prior to adopting the plan developed under Section
394A.053, the authority shall hold a public hearing in each county
in an area that is convenient and proximate to large populations of
colonia residents.
(b) Hearings shall be held not earlier than 5:30 p.m. or
later than 8:00 p.m.
(c) The authority shall mail a notice of the hearing in
English and Spanish to any association listed on the council
website that represents low-income persons and colonias.
(d) Professional simultaneous translation from English to
Spanish and from Spanish to English shall be provided at the
hearing.
(e) No fewer than nine authority board members must be
present at each public hearing.
Sec. 394A.157. ENACTMENT OF RESTRICTIVE COVENANTS. (a)
Notwithstanding any other law, on petition of 51 percent of the
residents of a colonia the authority may enact a restrictive
covenant in the colonia that provides for:
(1) residential or commercial building standards or
codes;
(2) maximum impervious cover on a lot;
(3) permitted land uses;
(4) non-permitted nuisances;
(5) a program and fee for solid waste services to be
paid by residents and property owners; or
(6) a program and fee for street lighting to be paid by
residents and property owners.
(b) Before enacting a restrictive covenant, the authority
shall:
(1) hold a public hearing in the manner provided by
this section; and
(2) determine the extent to which existing conditions
to be addressed by the proposed covenant negatively affect the
health, safety, and real property values of the residents and
property owners of the colonia.
(c) The hearing required under Subsection (b)(1) shall be
held in the colonia if suitable meeting facilities are available
or, if suitable meeting facilities are not available, in the
closest suitable and available public facility.
(d) The hearing must be held not earlier than 5:30 p.m. or
later than 8:00 p.m.
(e) Not earlier than the 10th day before the hearing date,
the authority shall:
(1) post at the entrance of the colonia in English and
Spanish notice of the hearing on a sign that is not less than eight
square feet; and
(2) mail to each resident and property owner in the
colonia by regular mail a notice of the hearing in English and
Spanish.
(f) Professional simultaneous translation from English to
Spanish and from Spanish to English must be provided at the hearing.
(g) No fewer than nine authority board members must be
present at the public hearing.
(h) A restrictive covenant enacted under this section may be
enforced by a resident or a property owner of the colonia or by the
council with approval of the authority in response to an
enforcement petition as provided by Subsection (i).
(i) The authority, on receipt of a petition filed in a
manner prescribed by the council and signed by five percent of the
residents in a colonia, may initiate a legal action on behalf of
residents of a colonia to enforce restrictive covenants by suing
for a violation of a covenant recorded in a plan, plat, or replat or
a covenant enacted under this section.
(j) The council, with approval of the authority, shall
develop rules and guidelines for the petition and public hearing
process required under this section.
SUBCHAPTER E. COLONIA IMPROVEMENT DISTRICTS
Sec. 394A.201. COLONIA IMPROVEMENT DISTRICTS. (a) The
authority may establish a colonia improvement district only on
receipt of a petition, in a manner prescribed by the authority, that
represents not less than 51 percent of the households residing in
the proposed district.
(b) A district shall facilitate comprehensive planning for
housing, community development needs, public infrastructure, and
public services in colonias.
(c) A district shall be staffed by the council and may plan
and administer programs in colonias.
(d) The council may use resources available to it under this
chapter to assist in the creation, administration, and management
of a district.
(e) A district may be comprised of one or more contiguous or
noncontiguous colonias located in an unincorporated area of a
county.
Sec. 394A.202. DISTRICT BOARD. On designation of an area as
a district, the authority shall establish a process for the
election by residents of a district board composed of five
residents for each 1,000 households located within the district.
Actions of the authority in carrying out programs and activities
under this section are subject to the approval of the district
board.
Sec. 394A.203. FUNCTIONS OF DISTRICT. (a) Subject to the
advice and consent of a district board, the authority may:
(1) establish a management district to carry out
functions permitted under state law;
(2) adopt a binding land use plan governing permitted
land uses;
(3) establish minimum standards for residential and
nonresidential structures and contract with a municipality or
county to enforce those standards;
(4) establish and administer a tax increment
reinvestment zone or tax increment financing to fund housing
improvements and repairs or provide public services and public
facilities;
(5) impose and collect fees for services provided by
the authority;
(6) withhold services from and assess reasonable
penalties against persons who are delinquent in the payment of a fee
imposed by Subdivision (5); and
(7) consistent with the powers of a homeowners'
association, place a lien on real property to secure payment of fees
and fines.
(b) Before imposing a fee under Subsection (a)(5), the
authority shall provide information to persons subject to the fee
to inform them of the cost of services and consequences for failure
to pay fees.
(c) The failure of a person to satisfy a lien imposed under
Subsection (a)(7) is not cause to foreclose the lien.
(d) The authority may enter into a contract for improvements
and services in a district with units of government, the council,
private entities, and individuals. The council shall award
contracts for goods and services in a manner that is consistent with
the requirements of this chapter.
Sec. 394A.204. COMPREHENSIVE NEEDS ASSESSMENT AND PLANNING
STUDY. On establishment of a district the council shall, for each
colonia in the district, begin a comprehensive needs assessment and
planning study that employs community planners to work in
cooperation with residents of the district, county officials, and
nearby city officials to assess housing, public services, and
public infrastructure needs including:
(1) essential public services;
(2) transportation;
(3) solid waste disposal;
(4) drainage;
(5) land use regulation;
(6) building codes;
(7) health codes;
(8) hazardous conditions;
(9) provisions of utilities;
(10) public safety;
(11) sidewalks;
(12) elimination of blight;
(13) streetlights;
(14) energy savings and efficiencies;
(15) parks and recreational facilities; and
(16) development of underutilized or abandoned
property.
Sec. 394A.205. DISTRICT PLAN. (a) Before any improvements
or activities that will have a financial impact on residents of a
district are undertaken, the authority shall:
(1) prepare and approve a plan to address the needs
established in the assessment conducted under Section 394A.204;
(2) identify appropriate resources and funding
strategies necessary to implement the plan; and
(3) coordinate with county and municipal officials for
implementation of the plan.
(b) A plan shall emphasize improving the housing, public
services, and public infrastructure within a colonia to a level
that will facilitate the annexation of a colonia into adjacent
municipalities when appropriate.
(c) The authority shall ensure that, taking into account the
household incomes of residents of a colonia, the financial impacts
of the plan do not constitute an excessive or unreasonable
financial burden. The authority shall develop a method for
determining excessive financial burden that takes into account
housing costs, property taxes, utilities, and payments and fees
paid to the district. The authority shall hold public hearings
regarding the calculation of excessive financial burden under this
section.
Sec. 394A.206. EXPANSION OF DISTRICT. On receipt of a
petition from 51 percent of the households residing in a colonia
desiring inclusion in an existing district, the authority may
expand the district to include the colonia.
Sec. 394A.207. ANNEXATION OF COLONIA BY MUNICIPALITY. (a)
In order to provide and maintain public services, the council shall
coordinate with residents of a district and adjacent municipalities
to provide planning and financial assistance to encourage the
annexation of a colonia by a municipality as appropriate and when
consistent with the interests and desires of the residents of the
district.
(b) When financial incentives are provided to a
municipality to facilitate annexation of a colonia, the authority
shall require the municipality to enter into a binding agreement
providing that not more than four years after annexation public
services and facilities will be fully provided to the annexed
colonia in a manner substantially equal to those provided to the
rest of the municipality.
(c) The authority may enter into an agreement with a
municipality to extend the time an annexing municipality is
required to provide full public services to a colonia as necessary
to provide incentives for annexation. In entering into an
agreement to delay the provision of services to an annexed colonia,
the authority shall require that any municipal taxes imposed on the
newly annexed colonia be reduced during the period when full public
services are not provided.
Sec. 394A.208. DISTRICT SAFETY PROGRAM. The council shall
cooperate with the appropriate regional engineers of the Texas
Department of Transportation and the Texas Department of Public
Safety to develop, identify, and secure funding for a public safety
program for a district. A program developed under this section
shall coordinate the provision of street lighting utilizing money
allocated for that purpose.
Sec. 394A.209. COORDINATION OF COLONIA SELF-HELP CENTER
ACTIVITIES IN DISTRICT. The council and the Texas Department of
Housing and Community Affairs shall cooperate to direct the
activities of colonia self-help centers to target districts
established under this subchapter.
SUBCHAPTER F. ENHANCED URBAN RESIDENTIAL DEVELOPMENT DISTRICTS
Sec. 394A.251. ENHANCED URBAN RESIDENTIAL DEVELOPMENT
DISTRICT. On application by a municipality accompanied by a
petition bearing the signature of not less than 51 percent of the
residents of the proposed enhanced urban residential development
district, the authority may designate one or more areas within the
extraterritorial jurisdiction of the municipality as an enhanced
urban residential development district to:
(1) prevent the proliferation of substandard colonias
and suburban sprawl in unincorporated areas; and
(2) promote quality, affordable, and orderly
residential development through building standards, land use
planning, and financial incentives for public improvements and
housing assistance.
Sec. 394A.252. CONSIDERATION AND APPROVAL OF APPLICATION.
(a) In considering an application for the establishment of a
development district, the authority shall apply criteria developed
and adopted by the authority.
(b) The authority shall grant or deny preliminary approval
for the establishment of a development district not later than the
180th day after receipt of a valid application and petition.
(c) Not later than the 30th day after preliminary approval
by the authority, the applying municipality shall establish a
citizen participation plan acceptable to the authority to permit
residents and property owners within the proposed development
district to participate in the production of a comprehensive plan
for the development district. The terms of the public
participation process must comply with the requirements provided
for the establishment of a colonia improvement district in
Subchapter E.
(d) Not later than the 180th day after preliminary approval
by the authority, the applying municipality shall file with the
authority a final application that contains:
(1) a comprehensive public improvement and housing
plan that:
(A) complies with Section 394A.253; and
(B) identifies in detail the powers the
municipality proposes to exercise within the development district;
(2) the detailed financing plan for public
improvements and housing assistance and the funding sources;
(3) if zoning or land use controls are proposed, a
detailed zoning map and description of the land use controls filed
by the municipality with the authority; and
(4) a binding legal commitment on the part of the
municipality to provide the services and housing assistance set
forth in the plan with an accompanying timeline stating the date
that annexation of the development district will occur.
(e) The authority may not approve an application that does
not demonstrate an achievable financial plan with committed
financial resources.
Sec. 394A.253. DEVELOPMENT DISTRICT PUBLIC IMPROVEMENT AND
HOUSING PLAN. A comprehensive public improvement and housing plan
for a proposed development district must provide that:
(1) not less than 25 percent of the owner and renter
occupied residential units developed in the development district
are affordable to households of extremely low, very low, and low
incomes in the proportions identified in the regional affordable
housing plan; and
(2) any public incentives provided will provide
diversity of housing types and costs with adequate provision of
housing affordability for low-income homeowners and renters in the
development district.
Sec. 394A.254. MUNICIPAL POWERS IN DEVELOPMENT DISTRICT.
(a) A municipality establishing a development district may:
(1) enact and enforce building, use, and zoning
restrictions in the development district in the same manner as in
the municipality's corporate limits provided that in enforcing
building standards on properties within a development district a
municipality may not assess a fine against a property owner of an
existing owner-occupied residential structure for a building code
violation the remedy for which would result in an excessive housing
cost financial burden to the owner occupant;
(2) assess a fine against a homeowner in the
development district who refuses to remedy a building code
violation if the municipality offers financial assistance to remedy
the building code violation provided the cost of the financial
assistance does not cause a household to suffer an excessive
housing cost financial burden;
(3) in a manner otherwise consistent with other state
and federal law, apply for grants and other financial assistance;
(4) expend funds for public improvements and housing
assistance; and
(5) as a condition of receipt of public improvements,
direct or indirect benefits of public improvements, or housing
assistance, require a builder or developer to provide a portion of
housing constructed in the development district to be affordable in
a manner that meets the affordable housing requirements of the
development district.
(b) On application of a municipality, the authority may:
(1) grant the municipality the authority to establish
and operate municipal utility districts, management districts, tax
increment reinvestment zones, and tax increment financing in a
development district to provide for property acquisition, public
infrastructure, affordable housing, and the enforcement of
standards in a district; and
(2) develop and provide incentives to developers to
acquire property and provide affordable housing in the development
district to make use of existing public infrastructure and
services, minimize transportation costs, and preserve agricultural
land and open spaces.
(c) The establishment and operation of an entity authorized
under Subsection (b)(1) is subject to the same governance and
restrictions as is provided regarding these activities in a
district established under Subchapter E, including the
requirements that 51 percent of the residents of the area approve
the establishment of the district and citizens are represented on a
board controlling assessments and activities.
(d) For purposes of Subsection (a)(1), "excessive housing
cost financial burden" means a housing cost, including property
taxes, utilities, house payments, fees for services paid to the
development district, and the cost of repairs to comply with
building standards, that exceeds 30 percent of the household's
adjusted gross income.
Sec. 394A.255. ANNEXATION OF DEVELOPMENT DISTRICT. A
municipality must agree to annex and provide all public services to
a development district not more than 12 years after the designation
of the development district.
SUBCHAPTER G. OTHER PROGRAMS
Sec. 394A.301. COLONIA LAND BANK. (a) The council may
establish a colonia land bank to provide affordable housing in any
part of the region served by the council.
(b) A land bank established under this section shall be
operated by the authority subject to the provisions applicable to
the operation of a land bank established under Chapter 379C.
(c) The council shall prioritize the acquisition of
abandoned or tax foreclosed property in colonias to encourage the
orderly and complete development of those communities.
Sec. 394A.302. REGIONAL COLONIA DRAINAGE PLAN. The council
shall enter into an agreement with the Texas Water Development
Board to:
(1) establish reasonable and appropriate standards
for storm water protection for colonias and development districts;
(2) examine and consider low-impact and alternative
approaches to storm water protection to reduce costs and speed the
provision of protection to colonias;
(3) develop a comprehensive regional colonia storm
water drainage plan to mitigate storm water flooding within
colonias;
(4) develop cost estimates for each colonia in the
region for the provision of recommended storm water protection in
the colonia including appropriately engineered storm water
drainage that connects with the regional drainage system; and
(5) identify, apply for, secure, and administer grants
and other funding to carry out the plan developed under this
section.
Sec. 394A.303. ENERGY SELF-SUFFICIENCY PROGRAM. (a) The
council shall:
(1) cooperate with the Public Utility Commission of
Texas, local public housing authorities, affordable housing
providers, and homeowners to establish, evaluate, and report on an
energy self-sufficiency program;
(2) develop an agreement with an energy systems
provider to administer a distributed renewable generation energy
system; and
(3) ensure the greatest proportion of the economic
benefits of the program accrue to the benefit of colonia residents
by encouraging competition among applicant energy systems
providers.
(b) The program established under this section must:
(1) evaluate appropriate technologies, including
solar, wind, geothermal, and fuel cell, for very low income
households in the Lower Rio Grande Valley and shall propose a
demonstration program to implement one or more of the technologies
in the region;
(2) evaluate power purchase agreements on public
housing authorities, affordable rental housing, and owner and
rental housing occupied by households of very low and extremely low
income; and
(3) prioritize households of extremely low and very
low income for participation in the program.
SECTION 3. Subchapter DD, Chapter 2306, Government Code, is
amended by adding Section 2306.67251 to read as follows:
Sec. 2306.67251. REGIONAL LOW-INCOME HOUSING TAX CREDIT
ENHANCEMENTS. Notwithstanding any other law, the board shall
provide through the qualified allocation plan regional scoring
incentives necessary to ensure that housing tax credits are awarded
to developments in the Lower Rio Grande Valley region in a manner
that produces housing consistent with the plan developed under
Section 394A.053, Local Government Code.
SECTION 4. (a) Not later than March 1, 2014, the executive
director of the Texas Workforce Commission shall adopt rules
necessary to implement Section 301.070, Labor Code, as added by
this Act.
(b) Not later than September 1, 2014, the Lower Rio Grande
Valley Development Council shall provide to the governor, the
lieutenant governor, the speaker of the house of representatives,
and the committee in each house of the legislature that has primary
jurisdiction over housing matters a report that details the
implementation of Chapter 394A, Local Government Code, as added by
this Act, and makes recommendations regarding additional authority
needed to achieve the purposes of that chapter.
(c) Not later than September 1, 2014, the Lower Rio Grande
Valley Development Council and the Texas Water Development Board
shall submit to the governor, the lieutenant governor, the speaker
of the house of representatives, and the committee in each house of
the legislature that has primary jurisdiction over housing matters
a report detailing the needs and costs identified in Section
394A.302, Local Government Code, as added by this Act.
(d) Not later than March 1, 2014, the Lower Rio Grande
Valley Development Council shall complete the initial housing and
community development inventory and market assessment required by
Section 394A.052, Local Government Code, as added by this Act.
(e) Not later than September 1, 2014, the Lower Rio Grande
Valley Development Council shall adopt the initial affordable
housing plan required by Section 394A.053, Local Government Code,
as added by this Act.
(f) Not later October 1, 2014, after the adoption by the
Lower Rio Grande Valley Development Council of the initial
affordable housing plan under Section 394A.053, Local Government
Code, as added by this Act, the Texas Department of Housing and
Community Affairs shall review the initial plan and submit to the
council for comment proposed modifications to the qualified
allocation plan to provide regional scoring incentives required
under Section 2306.67251, Government Code, as added by this Act.
(g) The change in law made by this Act in adding Section
2306.67251, Government Code, applies only to the allocation of
low-income housing tax credits for an application cycle that begins
on or after January 1, 2015. The allocation of low-income housing
tax credits for an application cycle that begins before January 1,
2015, is governed by the law in effect on the date the application
cycle began, and the former law is continued in effect for that
purpose.
(h) The board of the Texas Department of Housing and
Community Affairs shall adopt any rules required by Section
2306.67251, Government Code, as added by this Act, in conjunction
with the qualified allocation plan created for the 2015 application
cycle, and the department during that cycle shall begin allocating
low-income housing tax credits as provided under Section
2306.67251, Government Code, as added by this Act.
SECTION 5. This Act takes effect September 1, 2013.