Texas 2019 - 86th Regular

Texas Senate Bill SB1114 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Lucio S.B. No. 1114
	2	+	(In the Senate - Filed February 26, 2019; March 7, 2019,
	3	+	read first time and referred to Committee on Intergovernmental
	4	+	Relations; March 20, 2019, rereferred to Committee on Education;
	5	+	April 4, 2019, reported adversely, with favorable Committee
	6	+	Substitute by the following vote: Yeas 6, Nays 0; April 4, 2019,
	7	+	sent to printer.)
	8	+	Click here to see the committee vote
	9	+	COMMITTEE SUBSTITUTE FOR S.B. No. 1114 By: Lucio
2	10
3	11
4	12		A BILL TO BE ENTITLED
5	13		AN ACT
6	14		relating to the sale or donation of certain school district
7	15		property for the development of affordable housing for school
8	16		district personnel and other income-eligible persons.
9	17		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	18		SECTION 1. Subchapter D, Chapter 11, Education Code, is
11	19		amended by adding Section 11.15415 to read as follows:
12	20		Sec. 11.15415. SALE OR DONATION OF PROPERTY FOR DEVELOPMENT
13	21		OF AFFORDABLE HOUSING. (a) This section applies only to a board of
14	22		trustees of an independent school district located in a county
15	23		that:
16	24		(1) borders the United Mexican States and the Gulf of
17	25		Mexico;
18	26		(2) borders the Gulf of Mexico and has a population of
19	27		less than 10,000; or
20	28		(3) is adjacent to a county described by Subdivision
21	29		(1) or (2) and has a population of more than 20,000.
22	30		(b) Notwithstanding any other provision of law, the board of
23	31		trustees of an independent school district to which this section
24	32		applies may by resolution authorize the sale, at less than fair
25	33		market value, or donation of any property held in trust for public
26	34		school purposes to the Texas State Affordable Housing Corporation
27	35		or another nonprofit organization with expertise in developing
28	36		affordable housing for the development of affordable housing under
29	37		Section 2306.570, Government Code.
30	38		(c) Before adopting a resolution to sell or donate property
31	39		under this section, the board of trustees of an independent school
32	40		district:
33	41		(1) shall:
34	42		(A) hold a public hearing concerning the sale or
35	43		donation of the property and, in addition to any other notice
36	44		required, give notice of the hearing by publishing the subject
37	45		matter, location, date, and time of the hearing in a newspaper
38	46		having general circulation in the territory of the district;
39	47		(B) ensure that the sale or donation complies
40	48		with Section 52, Article III, Texas Constitution, and any other
41	49		applicable provisions of the Texas Constitution;
42	50		(C) ensure that a percentage of the housing units
43	51		on the property will be reserved for income-eligible school
44	52		district personnel, including educators, school nurses, school
45	53		counselors, and other administrative staff of the school; and
46	54		(D) ensure that the sale or donation will serve a
47	55		public purpose; and
48	56		(2) may:
49	57		(A) require that a percentage of the housing
50	58		units developed on the property be reserved for persons eligible to
51	59		receive a loan under Section 2306.5621, Government Code; and
52	60		(B) require that a percentage of the housing
53	61		units developed on the property be reserved for other
54	62		income-eligible persons in a manner that serves community needs, as
55	63		determined by the board.
56	64		SECTION 2. Section 2306.553, Government Code, is amended to
57	65		read as follows:
58	66		Sec. 2306.553. PURPOSES. (a) The public purpose of the
59	67		corporation is to perform activities and services that the
60	68		corporation's board of directors determines will promote the public
61	69		health, safety, and welfare through the provision of adequate,
62	70		safe, and sanitary housing primarily for individuals and families
63	71		of moderate, low, very low, and extremely low income and for persons
64	72		who are eligible for loans under the home loan program provided by
65	73		Section 2306.5621 or who are eligible to receive affordable housing
66	74		under Section 2306.570. The activities and services shall include
67	75		engaging in mortgage banking activities and lending transactions
68	76		and acquiring, holding, selling, or leasing real or personal
69	77		property.
70	78		(b) The corporation's primary public purpose is to
71	79		facilitate the provision of housing by issuing qualified 501(c)(3)
72	80		bonds and qualified residential rental project bonds and by making
73	81		affordable loans to individuals and families of moderate, low, very
74	82		low, and extremely low income and to persons who are eligible for
75	83		loans under the home loan program provided by Section 2306.5621.
76	84		(b-1) The corporation may make first lien, single family
77	85		purchase money mortgage loans for single family homes only to
78	86		individuals and families of moderate, low, very low, and extremely
79	87		low income [if the individual's or family's household income is not
80	88		more than the greater of 60 percent of the median income for the
81	89		state, as defined by the United States Department of Housing and
82	90		Urban Development, or 60 percent of the area median family income,
83	91		adjusted for family size, as defined by that department].
84	92		(b-2) The corporation may make loans for multifamily
85	93		developments if:
86	94		(1) at least 40 percent of the units in a multifamily
87	95		development are affordable to individuals and families with incomes
88	96		at or below 60 percent of the median family income, adjusted for
89	97		family size; or
90	98		(2) at least 20 percent of the units in a multifamily
91	99		development are affordable to individuals and families with incomes
92	100		at or below 50 percent of the median family income, adjusted for
93	101		family size.
94	102		(c) To the extent reasonably practicable, the corporation
95	103		shall use the services of banks, community banks, savings banks,
96	104		thrifts, savings and loan associations, private mortgage
97	105		companies, nonprofit organizations, and other lenders for the
98	106		origination of all loans contemplated by this subchapter and assist
99	107		the lenders in providing credit primarily to individuals and
100	108		families of moderate, low, very low, and extremely low income.
101	109		SECTION 3. Section 2306.555(d), Government Code, is amended
102	110		to read as follows:
103	111		(d) All of the mortgage banking operations shall be
104	112		dedicated to the furtherance of facilitating affordable housing
105	113		finance primarily for the benefit of individuals and families of
106	114		moderate, low, very low, and extremely low income who, generally,
107	115		are not afforded housing finance options through conventional
108	116		lending channels.
109	117		SECTION 4. Section 2306.5552, Government Code, is amended
110	118		to read as follows:
111	119		Sec. 2306.5552. TECHNICAL AND FINANCIAL ASSISTANCE
112	120		PROVIDED TO NONPROFIT ORGANIZATIONS. The corporation shall
113	121		supplement the technical and financial capacity of other
114	122		appropriate nonprofit organizations to provide for the multifamily
115	123		and single-family housing needs of individuals and families of
116	124		moderate, low, very low, and extremely low income.
117	125		SECTION 5. Subchapter Y, Chapter 2306, Government Code, is
118	126		amended by adding Section 2306.570 to read as follows:
119	127		Sec. 2306.570. DEVELOPMENT OF AFFORDABLE HOUSING FOR
120	128		CERTAIN SCHOOL DISTRICT PERSONNEL. (a) The corporation or a
121	129		nonprofit organization designated by the corporation with
122	130		expertise in developing affordable housing may purchase or receive
123	131		property under Section 11.15415, Education Code, to develop
124	132		multifamily and single-family affordable housing units for:
125	133		(1) school district personnel, including educators,
126	134		school nurses, school counselors, and other administrative staff of
127	135		the school district; or
128	136		(2) other persons specified by Section
129	137		11.15415(c)(2), Education Code.
130	138		(b) The corporation or a nonprofit organization that
131	139		purchases or receives property to develop affordable housing shall:
132	140		(1) ensure that the property will be used in
133	141		accordance with the public purposes of the corporation outlined
134	142		under Section 2306.553; and
135	143		(2) impose deed restrictions requiring the sale or
136	144		rental of the property to moderate or low income households.
137	145		(c) For multifamily housing units developed under this
138	146		section, the deed restrictions must require that:
139	147		(1) not less than 80 percent of the units must be
140	148		occupied by and affordable to families with a household income of
141	149		not more than 80 percent of the annual area median family income,
142	150		based on gross household income and adjusted for household size,
143	151		for the county or metropolitan statistical area in which the units
144	152		are located; and
145	153		(2) for multifamily housing units available for rent:
146	154		(A) not less than 40 percent of the units must be
147	155		occupied by and affordable to families with a household income of
148	156		not more than 60 percent of the annual area median family income,
149	157		based on gross household income and adjusted for household size,
150	158		for the county or metropolitan statistical area in which the units
151	159		are located; or
152	160		(B) not less than 20 percent of the units must be
153	161		occupied by and affordable to families with a household income of
154	162		not more than 50 percent of the annual area median family income,
155	163		based on gross household income and adjusted for household size,
156	164		for the county or metropolitan statistical area in which the units
157	165		are located.
158	166		(d) For single-family housing units developed under this
159	167		section, the deed restrictions must require that:
160	168		(1) not less than 50 percent of the units must be sold
161	169		to families with a household income of not more than 80 percent of
162	170		the annual area median family income, based on gross household
163	171		income and adjusted for household size, for the county or
164	172		metropolitan statistical area in which the units are located; and
165	173		(2) the remaining units must be sold to families with a
166	174		household income of not more than 120 percent of the annual area
167	175		median family income, based on gross household income and adjusted
168	176		for household size, for the county or metropolitan statistical area
169	177		in which the units are located.
170	178		SECTION 6. This Act takes effect immediately if it receives
171	179		a vote of two-thirds of all the members elected to each house, as
172	180		provided by Section 39, Article III, Texas Constitution. If this
173	181		Act does not receive the vote necessary for immediate effect, this
174	182		Act takes effect September 1, 2019.
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