BILL ANALYSIS Senate Research Center C.S.S.B. 989 85R25493 JG-F By: Watson Intergovernmental Relations 4/25/2017 Committee Report (Substituted) AUTHOR'S / SPONSOR'S STATEMENT OF INTENT The Texas Bootstrap Loan Program is a self-help housing construction program that provides very low-income families (owner-builders) an opportunity to purchase or refinance real property on which to build new housing or repair their existing homes through "sweat equity." To qualify, an owner-builder's household income may not exceed 60 percent of area median family income and the total loan amount the owner-builder secures for purchase of the land and construction cannot exceed $90,000. The program receives $3 million in funding annually from the State Housing Trust Fund as well as repayments on the loans issued in previous years. The issue C.S.S.B. 989 addresses is that the $90,000 cap has excluded many individuals in areas of the state that have experienced rapid property value growth. To remedy this problem, C.S.S.B. 989 removes that cap, but maintains the $45,000 cap for funds loaned by the statethereby qualifying more individuals, but not costing the state additional funds. By making this change, more families will be empowered to build a home for themselves. Lastly, C.S.S.B. extends the Sunset date for the provision of funds from the Housing Trust Fund to the later of September 1, 2025, or when the payments received from previously issued loans equal the amounts issued in new loans for that year. C.S.S.B. 989 amends current law relating to the maximum loan amount made to persons under the owner-builder loan program. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the Texas Department of Housing and Community Affairs in SECTION 2 of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 2306.754(b), Government Code, to delete existing text prohibiting the total amount of amortized, repayable loans made by the Texas Department of Housing and Community Affairs (TDHCA) and other entities to an owner-builder under this subchapter (Economic Development Programs Involving Both State and Local Governments) from exceeding $90,000. SECTION 2. Requires TDHCA, as soon as practicable after the effective date of this Act, to adopt rules necessary to implement Section 2306.754(b), Government Code. SECTION 3. Effective date: upon passage or September 1, 2017.
BILL ANALYSIS
Senate Research Center C.S.S.B. 989
85R25493 JG-F By: Watson
Intergovernmental Relations
4/25/2017
Committee Report (Substituted)
Senate Research Center
C.S.S.B. 989
85R25493 JG-F
By: Watson
Intergovernmental Relations
4/25/2017
Committee Report (Substituted)
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
The Texas Bootstrap Loan Program is a self-help housing construction program that provides very low-income families (owner-builders) an opportunity to purchase or refinance real property on which to build new housing or repair their existing homes through "sweat equity." To qualify, an owner-builder's household income may not exceed 60 percent of area median family income and the total loan amount the owner-builder secures for purchase of the land and construction cannot exceed $90,000. The program receives $3 million in funding annually from the State Housing Trust Fund as well as repayments on the loans issued in previous years.
The issue C.S.S.B. 989 addresses is that the $90,000 cap has excluded many individuals in areas of the state that have experienced rapid property value growth. To remedy this problem, C.S.S.B. 989 removes that cap, but maintains the $45,000 cap for funds loaned by the statethereby qualifying more individuals, but not costing the state additional funds. By making this change, more families will be empowered to build a home for themselves.
Lastly, C.S.S.B. extends the Sunset date for the provision of funds from the Housing Trust Fund to the later of September 1, 2025, or when the payments received from previously issued loans equal the amounts issued in new loans for that year.
C.S.S.B. 989 amends current law relating to the maximum loan amount made to persons under the owner-builder loan program.
RULEMAKING AUTHORITY
Rulemaking authority is expressly granted to the Texas Department of Housing and Community Affairs in SECTION 2 of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 2306.754(b), Government Code, to delete existing text prohibiting the total amount of amortized, repayable loans made by the Texas Department of Housing and Community Affairs (TDHCA) and other entities to an owner-builder under this subchapter (Economic Development Programs Involving Both State and Local Governments) from exceeding $90,000.
SECTION 2. Requires TDHCA, as soon as practicable after the effective date of this Act, to adopt rules necessary to implement Section 2306.754(b), Government Code.
SECTION 3. Effective date: upon passage or September 1, 2017.