84R22977 GRM-F
By: Davis of Dallas H.B. No. 2473
Substitute the following for H.B. No. 2473:
By: Longoria C.S.H.B. No. 2473
A BILL TO BE ENTITLED
AN ACT
relating to establishing a grant program in the Texas Department of
Housing and Community Affairs 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. Subchapter K, Chapter 2306, Government Code, is
amended by adding Section 2306.2562 to read as follows:
Sec. 2306.2562. AFFORDABLE HOMEOWNERSHIP ASSISTANCE
PROGRAM. (a) In this section, "residential mortgage loan" has the
meaning assigned by Section 180.002, Finance Code.
(b) The department 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 board shall adopt rules to implement the program
established under this section.
(e) In adopting rules under this section, the board 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 (b) at a below-market
interest rate; and
(2) in awarding grants under the program, 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 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.
(g) The department shall consult with the Department of
Savings and Mortgage Lending in creating and administering the
program under this section.
SECTION 2. Not later than December 1, 2015, the governing
board of the Texas Department of Housing and Community Affairs
shall adopt the rules required by Section 2306.2562, Government
Code, as added by this Act.
SECTION 3. This Act takes effect September 1, 2015.