86R9510 JAM-F
By: Walle H.B. No. 1402
A BILL TO BE ENTITLED
AN ACT
relating to the purposes of and income eligibility limits for
participation in programs offered by the Texas State Affordable
Housing Corporation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.551, Government Code, is amended to
read as follows:
Sec. 2306.551. DEFINITIONS [DEFINITION]. In this
subchapter:
(1) "Corporation" [, "corporation"] means the Texas
State Affordable Housing Corporation.
(2) "Economic development opportunities" means
financing activities that:
(A) maintain or increase employment in an area of
high unemployment or an area with a concentration of low-income to
moderate-income households;
(B) constitute activities that would not
otherwise occur in the area in the absence of economic development;
(C) support the public purposes of the
corporation described by Section 2306.553; and
(D) do not limit, impair, or conflict with the
public purposes or activities of the Texas Economic Development and
Tourism Office established under Chapter 481, including duties,
powers, or purposes relating to the:
(i) Texas Economic Development Corporation
established under Section 481.024;
(ii) capital access fund established under
Section 481.402; and
(iii) capital access program established
under Section 481.405.
SECTION 2. Section 2306.553, Government Code, is amended to
read as follows:
Sec. 2306.553. PURPOSES. (a) The public purpose of the
corporation is to perform activities and services that the
corporation's board of directors determines will promote the public
health, safety, and welfare through the provision of adequate,
safe, and sanitary housing and economic development opportunities
primarily for individuals and families of low to moderate [, very
low, and extremely low] income and for persons who are eligible for
loans under the home loan program provided by Section 2306.5621.
The activities and services shall include engaging in mortgage
banking activities and lending transactions and acquiring,
holding, selling, or leasing real or personal property.
(b) The corporation's primary public purpose is to
facilitate the provision of housing by issuing qualified 501(c)(3)
bonds and qualified residential rental project bonds and by making
affordable loans to individuals and families of low to moderate [,
very low, and extremely low] income and to persons who are eligible
for loans under the home loan program provided by Section
2306.5621.
(b-1) The corporation may make first lien, single family
purchase money mortgage loans for single family homes only to
individuals and families of low to moderate [, very low, and
extremely low] income [if the individual's or family's household
income is not more than the greater of 60 percent of the median
income for the state, as defined by the United States Department of
Housing and Urban Development, or 60 percent of the area median
family income, adjusted for family size, as defined by that
department].
(b-2) The corporation may make loans for multifamily
developments if:
(1) at least 40 percent of the units in a multifamily
development are affordable to individuals and families with incomes
at or below 60 percent of the median family income, adjusted for
family size; or
(2) at least 20 percent of the units in a multifamily
development are affordable to individuals and families with incomes
at or below 50 percent of the median family income, adjusted for
family size.
(c) To the extent reasonably practicable, the corporation
shall use the services of banks, community banks, savings banks,
thrifts, savings and loan associations, private mortgage
companies, nonprofit organizations, and other lenders for the
origination of all loans contemplated by this subchapter and assist
the lenders in providing credit primarily to individuals and
families of low to moderate [, very low, and extremely low] income.
SECTION 3. Section 2306.555(d), Government Code, is amended
to read as follows:
(d) All of the mortgage banking operations shall be
dedicated to the furtherance of facilitating affordable housing
finance primarily for the benefit of individuals and families of
low to moderate [, very low, and extremely low] income who,
generally, are not afforded housing finance options through
conventional lending channels.
SECTION 4. Section 2306.5552, Government Code, is amended
to read as follows:
Sec. 2306.5552. TECHNICAL AND FINANCIAL ASSISTANCE
PROVIDED TO NONPROFIT ORGANIZATIONS. The corporation shall
supplement the technical and financial capacity of other
appropriate nonprofit organizations to provide for the multifamily
and single-family housing needs of individuals and families of low
to moderate [, very low, and extremely low] income.
SECTION 5. This Act takes effect September 1, 2019.