By: Davis of Dallas H.B. No. 2473
A BILL TO BE ENTITLED
AN ACT
relating to establishing a grant program in the Department of
Savings and Mortgage Lending to assist certain organizations that
make residential mortgage loans to residents of certain
neighborhoods.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 13, Finance Code, is amended by adding
Section 13.017 to read as follows:
Sec. 13.017. AFFORDABLE HOMEOWNERSHIP ASSISTANCE PROGRAM.
(a) In this section, "residential mortgage loan" has the meaning
assigned by Section 180.002.
(b) The Department of Savings and Mortgage Lending shall
create and administer a program to provide grants to assist
organizations to make below-market rate residential mortgage loans
to residents of neighborhoods that have homeownership rates of less
than 50 percent.
(c) To be eligible to receive a grant under this section, an
organization must:
(1) have a history of making below-market rate
residential mortgage loans to low and moderate income households;
(2) provide homebuyer education services; and
(3) provide post-home purchase counseling and support
services.
(d) The finance commission shall adopt rules to implement
the program established under this section.
(e) In adopting rules under this section, the finance
commission shall:
(1) require an organization to use grant money awarded
under this section to make residential mortgage loans to residents
of this state described by Subsection (a) at a below-market
interest rate; and
(2) require that in awarding grants the Department of
Savings and Mortgage Lending give priority to organizations that
qualify for matching funds from federal or private sources.
(f) An organization awarded a grant under this section shall
submit to the Department of Savings and Mortgage Lending an annual
report that contains information regarding the organization's use
of the grant money and the reinvestment of loan principal and
interest payments made to that organization.
SECTION 2. Not later than December 1, 2015, the Finance
Commission of Texas shall adopt the rules required by Section
13.017, Finance Code, as added by this Act.
SECTION 3. This Act takes effect September 1, 2015.