| 1 | 1 | | 85R14526 JAM-F |
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| 2 | 2 | | By: Guillen H.B. No. 2528 |
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| 3 | 3 | | Substitute the following for H.B. No. 2528: |
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| 4 | 4 | | By: Alvarado C.S.H.B. No. 2528 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to predevelopment loans provided to community housing |
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| 10 | 10 | | development organizations by the Texas Department of Housing and |
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| 11 | 11 | | Community Affairs. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Subchapter J, Chapter 2306, Government Code, is |
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| 14 | 14 | | amended by adding Section 2306.233 to read as follows: |
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| 15 | 15 | | Sec. 2306.233. PREDEVELOPMENT LOANS. (a) The department |
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| 16 | 16 | | may issue to a community housing development organization certified |
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| 17 | 17 | | by the department a project-specific predevelopment loan to |
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| 18 | 18 | | facilitate the development of a project that, if considered |
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| 19 | 19 | | feasible, will receive an award of financial assistance under the |
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| 20 | 20 | | terms of the federal HOME Investment Partnerships Program |
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| 21 | 21 | | established under Title II of the Cranston-Gonzalez National |
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| 22 | 22 | | Affordable Housing Act (42 U.S.C. Section 12701 et seq.). |
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| 23 | 23 | | (b) A predevelopment loan issued under this section may not |
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| 24 | 24 | | be used to pay: |
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| 25 | 25 | | (1) project costs that exceed customary and reasonable |
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| 26 | 26 | | project preparation costs; or |
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| 27 | 27 | | (2) administrative expenses of a community housing |
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| 28 | 28 | | development organization. |
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| 29 | 29 | | SECTION 2. This Act takes effect September 1, 2017. |
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