By: Lucio, Zaffirini S.B. No. 2063
(In the Senate - Filed April 22, 2015; April 22, 2015, read
first time and referred to Committee on Intergovernmental
Relations; May 5, 2015, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 6, Nays 1;
May 5, 2015, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 2063 By: Lucio
A BILL TO BE ENTITLED
AN ACT
relating to the establishment and administration of the Texas Safe
Home Demonstration Program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 2306.188, Government
Code, is amended to read as follows:
Sec. 2306.188. ESTABLISHING HOME OWNERSHIP IN DISASTER AREA
OR UNDER TEXAS SAFE HOME DEMONSTRATION PROGRAM.
SECTION 2. Section 2306.188(a), Government Code, is amended
to read as follows:
(a) An applicant for federally provided financial
assistance administered by the department to repair or rebuild a
home damaged by a natural disaster or an applicant for assistance
under the Texas Safe Home Demonstration Program established under
Subchapter OO may establish ownership of the home through
nontraditional documentation of title. The department shall
process an application for that assistance as if the applicant is
the record title holder of the affected real property if the
applicant provides to the department:
(1) on a form prescribed by the department, an
affidavit summarizing the basis on which the applicant claims to be
the holder of record title or, if applicable, a successor in
interest to the holder of record title and stating that:
(A) there is no other person entitled to claim
any ownership interest in the property; or
(B) each person who may be entitled to claim an
ownership interest in the property has given consent to the
application or cannot be located after a reasonable effort; and
(2) other documentation, including tax receipts,
utility bills, or evidence of insurance for the home, that
indicates that the applicant exercised ownership over the property
for the period claimed by the applicant [at the time of the natural
disaster].
SECTION 3. Chapter 2306, Government Code, is amended by
adding Subchapter OO to read as follows:
SUBCHAPTER OO. TEXAS SAFE HOME DEMONSTRATION PROGRAM
Sec. 2306.10001. TEXAS SAFE HOME DEMONSTRATION PROGRAM.
(a) The department shall establish in certain counties designated
by the department a demonstration program to provide financial
assistance for the repair of or the demolition and replacement of
owner-occupied single-family homes that are in a condition that
poses a risk to the health and safety of the occupants.
(b) Financial assistance administered under this subchapter
may be provided in the form of a grant, partial grant, loan, or
forgivable loan. Money appropriated to the demonstration program
is not part of the housing trust fund. The regional allocation
formula described under Section 2306.1115 does not apply to
financial assistance administered under this subchapter if the
money appropriated for the purpose does not exceed $3 million for
each state fiscal year.
(c) The board may adopt rules to implement the program
described by this section. The department shall establish criteria
to implement the demonstration program, including:
(1) a formula that distributes, to each uniform state
service region containing a county in which the demonstration
program is implemented, appropriated funds after considering
publicly available data regarding levels of poverty, levels of
substandard housing, and population, including the percentage of
population composed of persons with disabilities, elderly persons,
and households with children, in each region;
(2) detailed criteria to be used in determining
whether a homeowner is eligible for participation in the
demonstration program, including a process for documenting the
condition of a home in a written report after a physical inspection
of the home;
(3) requirements for the development and
administration of priority waitlists for participation in the
demonstration program;
(4) standards for assessing the real property on which
a home is located;
(5) procedures to ensure compliance with federal
national flood insurance program requirements;
(6) extended owner occupancy requirements for new or
repaired homes;
(7) criteria for the acceptance of third-party
contributions, including volunteer labor or additional loans,
grants, or other financial assistance; and
(8) oversight and monitoring criteria for
participating administrators.
Sec. 2306.10002. ADMINISTRATORS. In each uniform state
service region containing a county in which the demonstration
program is implemented, the department shall attempt to identify a
single governmental administrator, including a consortium of
councils of government or other governmental entities, or a
nonprofit entity to administer the demonstration program in all
portions of that region. In a uniform state service region in which
no administrator is identified, the funds may be awarded to the
councils of government in that region pro rata based on population.
Sec. 2306.10003. HOMEOWNER ELIGIBILITY. To be eligible for
assistance under the demonstration program, a homeowner:
(1) may not have an annual income that, as determined
by the department and when combined with the income of all persons
who reside with the homeowner, exceeds 50 percent of the greater of
the state or local median household income; and
(2) must own and occupy a home, including a
manufactured home:
(A) as a primary residence for a period of not
less than the 180 days preceding the date of the homeowner's
application for financial assistance under this subchapter; and
(B) that has, after an inspection conducted under
the demonstration program, been identified as substandard, in need
of repair or replacement, and posing a potential risk to the health
and safety of the occupants.
Sec. 2306.10004. TEMPORARY RELOCATION. If a homeowner is
approved for participation in the demonstration program, the
occupants of the home shall be assisted in relocating to temporary
housing for a period not to exceed two years pending the repair or
replacement of the home. Funds appropriated to the demonstration
program may be used to provide assistance under this section. A
priority waitlist must assign the highest priority to households
receiving temporary housing assistance using demonstration program
funds.
Sec. 2306.10005. INSURANCE PROCEEDS. If a homeowner has
filed a claim for insurance proceeds associated with damage to the
home, any proceeds from the claim must first be used to pay for any
covered repair or replacement costs of the home.
Sec. 2306.10006. ADMINISTRATIVE COSTS. The department may
reserve for payment of administrative expenses not more than 10
percent of money received for the demonstration program under this
subchapter. Of the 10 percent, the department shall determine an
appropriate allocation to cover the administrative expenses of any
identified administrators.
SECTION 4. The Texas Department of Housing and Community
Affairs is required to implement this Act only if the legislature
appropriates money specifically for that purpose. If the
legislature does not appropriate money specifically for that
purpose, the department may, but it is not required to, implement
this Act using other appropriations available for that purpose.
SECTION 5. This Act takes effect September 1, 2015.
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