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Texas House Bill HB1402

Texas 2019 - 86th Regular

Texas House Bill HB1402 Compare Versions

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1-By: Walle, Meyer (Senate Sponsor - Lucio) H.B. No. 1402
2- (In the Senate - Received from the House April 24, 2019;
3- April 25, 2019, read first time and referred to Committee on
4- Intergovernmental Relations; May 6, 2019, reported adversely, with
5- favorable Committee Substitute by the following vote: Yeas 4,
6- Nays 3; May 6, 2019, sent to printer.)
7-Click here to see the committee vote
8- COMMITTEE SUBSTITUTE FOR H.B. No. 1402 By: Lucio
1+86R10898 JAM-F
2+ By: Walle, Meyer H.B. No. 1402
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104
115 A BILL TO BE ENTITLED
126 AN ACT
137 relating to the purposes of and income eligibility limits for
148 participation in programs offered by the Texas State Affordable
159 Housing Corporation.
1610 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1711 SECTION 1. Section 2306.551, Government Code, is amended to
1812 read as follows:
1913 Sec. 2306.551. DEFINITIONS [DEFINITION]. In this
2014 subchapter:
2115 (1) "Corporation" [, "corporation"] means the Texas
2216 State Affordable Housing Corporation.
2317 (2) "Economic development opportunities" means
2418 financing activities that:
2519 (A) maintain or increase employment in an area of
2620 high unemployment or an area with a concentration of individuals
2721 and families of moderate, low, very low, and extremely low income;
2822 (B) constitute activities that would not
2923 otherwise occur in the area in the absence of economic development;
3024 (C) support the public purposes of the
3125 corporation described by Section 2306.553; and
3226 (D) do not limit, impair, or conflict with the
3327 public purposes or activities of the Texas Economic Development and
3428 Tourism Office established under Chapter 481, including duties,
3529 powers, or purposes relating to the:
3630 (i) Texas Economic Development Corporation
3731 established under Section 481.024;
3832 (ii) capital access fund established under
3933 Section 481.402; and
4034 (iii) capital access program established
4135 under Section 481.405.
42- SECTION 2. Section 2306.553(a), Government Code, is amended
36+ SECTION 2. Section 2306.553, Government Code, is amended to
37+ read as follows:
38+ Sec. 2306.553. PURPOSES. (a) The public purpose of the
39+ corporation is to perform activities and services that the
40+ corporation's board of directors determines will promote the public
41+ health, safety, and welfare through the provision of adequate,
42+ safe, and sanitary housing and economic development opportunities
43+ primarily for individuals and families of moderate, low, very low,
44+ and extremely low income and for persons who are eligible for loans
45+ under the home loan program provided by Section 2306.5621. The
46+ activities and services shall include engaging in mortgage banking
47+ activities and lending transactions and acquiring, holding,
48+ selling, or leasing real or personal property.
49+ (b) The corporation's primary public purpose is to
50+ facilitate the provision of housing by issuing qualified 501(c)(3)
51+ bonds and qualified residential rental project bonds and by making
52+ affordable loans to individuals and families of moderate, low, very
53+ low, and extremely low income and to persons who are eligible for
54+ loans under the home loan program provided by Section 2306.5621.
55+ (b-1) The corporation may make first lien, single family
56+ purchase money mortgage loans for single family homes only to
57+ individuals and families of moderate, low, very low, and extremely
58+ low income [if the individual's or family's household income is not
59+ more than the greater of 60 percent of the median income for the
60+ state, as defined by the United States Department of Housing and
61+ Urban Development, or 60 percent of the area median family income,
62+ adjusted for family size, as defined by that department].
63+ (b-2) The corporation may make loans for multifamily
64+ developments if:
65+ (1) at least 40 percent of the units in a multifamily
66+ development are affordable to individuals and families with incomes
67+ at or below 60 percent of the median family income, adjusted for
68+ family size; or
69+ (2) at least 20 percent of the units in a multifamily
70+ development are affordable to individuals and families with incomes
71+ at or below 50 percent of the median family income, adjusted for
72+ family size.
73+ (c) To the extent reasonably practicable, the corporation
74+ shall use the services of banks, community banks, savings banks,
75+ thrifts, savings and loan associations, private mortgage
76+ companies, nonprofit organizations, and other lenders for the
77+ origination of all loans contemplated by this subchapter and assist
78+ the lenders in providing credit primarily to individuals and
79+ families of moderate, low, very low, and extremely low income.
80+ SECTION 3. Section 2306.555(d), Government Code, is amended
4381 to read as follows:
44- (a) The public purpose of the corporation is to perform
45- activities and services that the corporation's board of directors
46- determines will promote the public health, safety, and welfare
47- through the provision of adequate, safe, and sanitary housing and
48- economic development opportunities primarily for individuals and
49- families of moderate, low, very low, and extremely low income and
50- for persons who are eligible for loans under the home loan program
51- provided by Section 2306.5621. The activities and services shall
52- include engaging in mortgage banking activities and lending
53- transactions and acquiring, holding, selling, or leasing real or
54- personal property.
55- SECTION 3. This Act takes effect September 1, 2019.
56- * * * * *
82+ (d) All of the mortgage banking operations shall be
83+ dedicated to the furtherance of facilitating affordable housing
84+ finance primarily for the benefit of individuals and families of
85+ moderate, low, very low, and extremely low income who, generally,
86+ are not afforded housing finance options through conventional
87+ lending channels.
88+ SECTION 4. Section 2306.5552, Government Code, is amended
89+ to read as follows:
90+ Sec. 2306.5552. TECHNICAL AND FINANCIAL ASSISTANCE
91+ PROVIDED TO NONPROFIT ORGANIZATIONS. The corporation shall
92+ supplement the technical and financial capacity of other
93+ appropriate nonprofit organizations to provide for the multifamily
94+ and single-family housing needs of individuals and families of
95+ moderate, low, very low, and extremely low income.
96+ SECTION 5. This Act takes effect September 1, 2019.