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