Texas 2025 - 89th Regular

Texas House Bill HB2425 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R10560 JAM-D
2	2	By: Goodwin H.B. No. 2425
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the purpose of and programs administered by the Texas
10	10	State Affordable Housing Corporation.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 2306.553, Government Code, is amended to
13	13	read as follows:
14	14	Sec. 2306.553. PURPOSES. (a) The public purpose of the
15	15	corporation is to perform activities and services that the
16	16	corporation's board of directors determines will promote the public
17	17	health, safety, and welfare through the provision of adequate,
18	18	safe, and sanitary housing primarily for individuals and families
19	19	of low income, individuals and families of very low income,
20	20	individuals and families of [and] extremely low income, and [for]
21	21	persons who are eligible for loans under the home loan program
22	22	provided by Section 2306.5621. The activities and services shall
23	23	include engaging in mortgage banking activities and lending
24	24	transactions and acquiring, holding, selling, or leasing real or
25	25	personal property.
26	26	(b) The corporation's primary public purpose is to
27	27	facilitate the provision of housing by issuing qualified 501(c)(3)
28	28	bonds and qualified residential rental project bonds and by making
29	29	affordable loans to individuals and families of low income,
30	30	individuals and families of very low income, individuals and
31	31	families of [and] extremely low income, and [to] persons who are
32	32	eligible for loans under the home loan program provided by Section
33	33	2306.5621. The corporation may make first lien, single family
34	34	purchase money mortgage loans for single family homes [only] to
35	35	individuals and families of low, very low, and extremely low income
36	36	only if the individual's or family's household income is not more
37	37	than the greater of 60 percent of the median income for the state,
38	38	as defined by the United States Department of Housing and Urban
39	39	Development, or 60 percent of the area median family income,
40	40	adjusted for family size, as defined by that department. The
41	41	corporation may make loans for multifamily developments if:
42	42	(1) at least 40 percent of the units in a multifamily
43	43	development are affordable to individuals and families with incomes
44	44	at or below 60 percent of the median family income, adjusted for
45	45	family size; or
46	46	(2) at least 20 percent of the units in a multifamily
47	47	development are affordable to individuals and families with incomes
48	48	at or below 50 percent of the median family income, adjusted for
49	49	family size.
50	50	(c) To the extent reasonably practicable, the corporation
51	51	shall use the services of banks, community banks, savings banks,
52	52	thrifts, savings and loan associations, private mortgage
53	53	companies, nonprofit organizations, and other lenders for the
54	54	origination of all loans contemplated by this subchapter and assist
55	55	the lenders in providing credit primarily to individuals and
56	56	families of low income, individuals and families of very low
57	57	income, individuals and families of [and] extremely low income, and
58	58	persons who are eligible for loans under the home loan program
59	59	provided by Section 2306.5621.
60	60	SECTION 2. Section 2306.555(d), Government Code, is amended
61	61	to read as follows:
62	62	(d) All of the mortgage banking operations shall be
63	63	dedicated to the furtherance of facilitating affordable housing
64	64	finance primarily for the benefit of:
65	65	(1) individuals and families of low, very low, and
66	66	extremely low income who, generally, are not afforded housing
67	67	finance options through conventional lending channels; and
68	68	(2) persons who are eligible for loans under the home
69	69	loan program provided by Section 2306.5621.
70	70	SECTION 3. Section 2306.5621(a), Government Code, is
71	71	amended by amending Subdivision (2) and adding Subdivisions (17),
72	72	(18), and (19) to read as follows:
73	73	(2) "Home" means a dwelling in this state in which a
74	74	fire fighter, corrections officer, county jailer, public security
75	75	officer, peace officer, municipal employee, nurse, social worker,
76	76	professional educator, veteran, or person defined as emergency
77	77	medical services personnel under this section intends to reside as
78	78	the borrower's principal residence.
79	79	(17) "Municipal employee" means a permanent,
80	80	full-time employee of a municipality.
81	81	(18) "Nurse" has the meaning assigned by Section
82	82	303.001, Occupations Code.
83	83	(19) "Social worker" has the meaning assigned by
84	84	Section 505.002, Occupations Code.
85	85	SECTION 4. Sections 2306.5621(b), (c), (d), (f), and (h-1),
86	86	Government Code, are amended to read as follows:
87	87	(b) The corporation shall establish a program to provide
88	88	eligible persons [fire fighters, corrections officers, county
89	89	jailers, public security officers, peace officers, emergency
90	90	medical services personnel, professional educators, and veterans]
91	91	with low-interest home mortgage loans.
92	92	(c) To be eligible for a loan under this section, at the time
93	93	a person files an application for the loan, the person must:
94	94	(1) be a:
95	95	(A) fire fighter, corrections officer, county
96	96	jailer, public security officer, peace officer, municipal
97	97	employee, nurse, social worker, veteran, or person defined as
98	98	emergency medical services personnel under this section; or
99	99	(B) professional educator who is employed by a
100	100	school district or is an allied health or professional nursing
101	101	program faculty member in this state;
102	102	(2) reside in this state; and
103	103	(3) have an income of not more than 140 [115] percent
104	104	of area median family income, adjusted for family size, or the
105	105	maximum amount permitted by Section 143(f), Internal Revenue Code
106	106	of 1986, whichever is greater.
107	107	(d) The corporation may contract with other agencies of the
108	108	state or with private entities to determine whether applicants
109	109	qualify as fire fighters, corrections officers, county jailers,
110	110	public security officers, peace officers, municipal employees,
111	111	nurses, social workers, emergency medical services personnel,
112	112	professional educators, or veterans under this section or otherwise
113	113	to administer all or part of this section.
114	114	(f) The board of directors of the corporation shall adopt
115	115	rules governing:
116	116	(1) the administration of the program;
117	117	(2) the making of loans under the program;
118	118	(3) the criteria for approving mortgage lenders;
119	119	(4) the use of insurance on the loans and the homes
120	120	financed under the program, as considered appropriate by the board
121	121	to provide additional security for the loans;
122	122	(5) the verification of occupancy of the home by the
123	123	fire fighter, corrections officer, county jailer, public security
124	124	officer, peace officer, municipal employee, nurse, social worker,
125	125	professional educator, veteran, or person defined as emergency
126	126	medical services personnel as the borrower's principal residence;
127	127	and
128	128	(6) the terms of any contract made with any mortgage
129	129	lender for processing, originating, servicing, or administering
130	130	the loans.
131	131	(h-1) To fund home mortgage loans for eligible persons [fire
132	132	fighters, corrections officers, county jailers, public security
133	133	officers, peace officers, emergency medical services personnel,
134	134	professional educators, and veterans] under this section, the
135	135	corporation may use any proceeds received from the sale of bonds,
136	136	notes, or other obligations issued under the home loan program
137	137	provided by this section, regardless of any amendments to the
138	138	eligibility standards for loans made under the program and
139	139	regardless of when the corporation received the proceeds from those
140	140	bonds, notes, or other obligations issued under the program.
141	141	SECTION 5. This Act takes effect September 1, 2025.