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