By: Lucio S.B. No. 1742
A BILL TO BE ENTITLED
AN ACT
relating to the creation, fiscal oversight and administration of
the Texas Housing Innovations Competition Fund; making an
appropriation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Y, Chapter 2306, Government Code, is
amended by adding Section 2306.570 to read as follows:
Sec. 2306.570. TEXAS HOUSING INNOVATIONS COMPETITION FUND.
(a) In this section, "Competition Oversight Committee" means the
committee established under Subsection (c).
(b) The Texas Housing Innovations Competition Fund is a
dedicated account in the Texas Treasury Safekeeping Trust Company.
Money appropriated, credited or deposited to the fund, interest
earned on money in the account and loans repaid to the account shall
be deposited to the credit of the account for exclusive use by the
corporation to encourage cities, counties, councils of
governments, housing finance agencies, public housing authorities,
for-profit affordable housing developers and non-profit
affordable housing developers to innovate new, better, more
affordable and more effective solutions to providing quality
housing and shelter for low income, very low income, and extremely
low income Texans through:
(1) providing homeownership;
(2) providing affordable rental housing;
(3) providing innovative ways to return foreclosed
homes to occupancy;
(4) providing quality affordable housing
opportunities to special needs Texans, including veterans, the
elderly, persons with disabilities, farmworkers and colonia
residents;
(5) providing shelter, transitional and permanent
housing and services to Texans who are homeless; and
(6) supporting programs to construct or rehabilitate
affordable housing for individuals and families of low income, very
low income, and extremely low income.
(c) The Competition Oversight Committee is a committee
within the corporation consisting of seven members, with one member
each appointed by the governor, the lieutenant governor, the
speaker of the house of representatives, the attorney general, the
comptroller of public accounts, the board of the Texas Department
of Housing and Community Affairs, and the corporation's board of
directors. Each member of the committee must have experience in the
are of affordable housing for individuals and families of low
income, very low income, and extremely low income. The members
serve staggered three-year terms, with either two or three of the
members' terms expiring February 1 of each year. A vacancy on the
oversight committee shall be filled in the same manner as a regular
appointment to the vacant position. A member of the oversight
committee is not entitled to compensation for service on the
committee.
(d) The oversight committee shall:
(1) oversee the administration of the money in the
fund for the purposes established under Subsection (b) and
according to the plan established under Subdivision (2) of this
subsection;
(2) establishes an annual program area or areas from
the categories in Subsection (b);
(3) oversees the competition and makes the annual
award recommendations to the Legislative Budget Board as provided
in Subsection (i); and
(4) approves the annual report to the legislature on
the status of the competition as provided in Subsection (j).
(e) No less that 75 percent of all funds awarded annually
through the competition shall be in the form of repayable loans,
including regularly amortizing loans or due on sale loans.
(f) Entities eligible to participate in the competition are
cities, counties, councils of government, for profit developers of
affordable housing, non-profit developers of affordable housing,
faith-based institutions, housing authorities, homeless service
organizations, homebuyer education providers and housing
counseling providers.
(g) The guidelines of the competition adopted by the
Competition Oversight Committee shall seek to stimulate innovation
in housing affordability, housing finance, housing design, energy
efficiency, marketing, outreach to underserved populations and
areas for the purpose of housing extremely low, very low and low
income Texans.
(h) In administering the program, the Competition Oversight
Committee shall ensure that over the duration of any five year
period, funds are used to equitably undertake projects in rural
areas, small towns, urban and exurban communities and in regions
throughout the State as well as proportionately addressing the
housing and shelter needs of extremely low, very low and low income
Texans.
(i) Prior to awards being made, the recommendations and
proposed awards adopted by the Competition Oversight Committee
shall be submitted to the Legislative Budget Board of Directors for
final approval.
(j) Not later than September 1 of each year, the corporation
shall submit to the legislature a report based on the results of the
competition detailing the status and accomplishments of the fund,
the performance of the outstanding loans and recommendations for
changes to housing programs and policies within state supported
affordable housing programs.
(k) If the Texas housing innovations competition fund is
created by legislation enacted by the 83rd Legislature, Regular
Session, 2013, the amount of $50 million is appropriated from the
general revenue fund to the comptroller for the purpose of
depositing that amount to the credit of the Texas housing
innovations competition fund as money available for use by the
Texas State Affordable Housing Corporation for the purposes of the
Texas housing innovations competition fund implementation.
SECTION 2. (a) The initial members of the Fund Oversight
Committee appointed under Section 2306.570(c), Government Code, as
added by this Act, shall draw lots to determine which two directors
serve a one-year term, which two directors serve a two-year term,
and which three directors serve a three-year term.
(b) Successor directors shall serve three-year terms.
SECTION 3. This Act takes effect September 1, 2013.