5 | 3 | | |
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6 | 4 | | |
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7 | 5 | | A BILL TO BE ENTITLED |
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8 | 6 | | AN ACT |
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9 | 7 | | relating to the administration of federal funds under the |
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10 | 8 | | Cranston-Gonzalez National Affordable Housing Act. |
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11 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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12 | 10 | | SECTION 1. Sections 2306.111(c), (c-1), and (c-2), |
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13 | 11 | | Government Code, are amended to read as follows: |
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14 | 12 | | (c) In administering federal housing funds provided to the |
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15 | 13 | | state under the Cranston-Gonzalez National Affordable Housing Act |
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16 | 14 | | (42 U.S.C. Section 12701 et seq.), the department shall allocate |
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17 | 15 | | [expend]: |
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18 | 16 | | (1) 95 percent of these funds for the benefit of |
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19 | 17 | | non-participating small cities and rural areas that do not qualify |
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20 | 18 | | to receive funds under the Cranston-Gonzalez National Affordable |
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21 | 19 | | Housing Act directly from the United States Department of Housing |
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22 | 20 | | and Urban Development, except that an amount not to exceed 15 |
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23 | 21 | | percent of the funds allocated under this subdivision may be |
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24 | 22 | | allocated to participating jurisdictions as necessary to meet the |
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25 | 23 | | requirements of federal law; and |
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29 | 26 | | (c-1) Eligibility to apply for set-aside funds under |
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30 | 27 | | Subsection (c) is determined by federal law [The following entities |
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31 | 28 | | are eligible to apply for set-aside funds under Subsection (c): |
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32 | 29 | | [(1) nonprofit providers of affordable housing, |
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33 | 30 | | including community housing development organizations; and |
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34 | 31 | | [(2) for-profit providers of affordable housing]. |
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35 | 32 | | (c-2) In allocating set-aside funds under Subsection (c), |
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36 | 33 | | the department: |
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37 | 34 | | (1) may not give preference to nonprofit providers of |
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38 | 35 | | affordable housing, except as necessary to meet the requirements of |
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39 | 36 | | [required by] federal law; and |
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40 | | - | (2) shall allocate funds: |
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41 | | - | (A) in accordance with any applicable spending |
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42 | | - | plan required under federal law; and |
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43 | | - | (B) in a manner that ensures that, to the |
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44 | | - | greatest extent possible, an allocation required only under state |
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45 | | - | law is made before an allocation is made solely to meet the |
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46 | | - | requirements of federal law. |
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| 37 | + | (2) shall allocate funds in accordance with any |
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| 38 | + | applicable spending plan required under federal law. |
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47 | 39 | | SECTION 2. The change in law made by this Act in amending |
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48 | 40 | | Section 2306.111, Government Code, applies only to an application |
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49 | 41 | | for financial assistance that is submitted to the Texas Department |
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50 | 42 | | of Housing and Community Affairs on or after January 1, 2020. An |
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51 | 43 | | application for financial assistance that is submitted to the |
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52 | 44 | | department before January 1, 2020, is governed by the law in effect |
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53 | 45 | | immediately before the effective date of this Act, and the former |
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54 | 46 | | law is continued in effect for that purpose. |
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55 | 47 | | SECTION 3. This Act takes effect September 1, 2019. |
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