Texas 2025 - 89th Regular

Texas Senate Bill SB234 Compare Versions

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Old	New	Differences
1	1	89R5092 JAM-D
2	2	By: Johnson S.B. No. 234
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the establishment of the workforce housing program by
10	10	the Texas Department of Housing and Community Affairs.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter K, Chapter 2306, Government Code, is
13	13	amended by adding Section 2306.2595 to read as follows:
14	14	Sec. 2306.2595. WORKFORCE HOUSING PROGRAM. (a) In this
15	15	section:
16	16	(1) "Fund" means the workforce housing fund.
17	17	(2) "Mezzanine real estate loan" has the meaning
18	18	assigned by Section 425.1185, Insurance Code.
19	19	(3) "Program" means the workforce housing program.
20	20	(b) The department shall establish the workforce housing
21	21	program to provide financial assistance to developers of
22	22	multifamily housing to facilitate the construction and
23	23	rehabilitation of eligible workforce housing developments in this
24	24	state. Financial assistance may be awarded for the purposes
25	25	described by this section from the fund described by Subsection (f)
26	26	to developers in the form of low-interest loans offered below
27	27	market rate, which:
28	28	(1) must be structured as mezzanine real estate loans;
29	29	and
30	30	(2) may not exceed 20 percent of the initial
31	31	construction or rehabilitation costs of the eligible development.
32	32	(c) To be eligible for the financial assistance received by
33	33	a developer under the program, a workforce housing development:
34	34	(1) must consist of new construction or a substantial
35	35	rehabilitation of an existing facility;
36	36	(2) must reserve a specified percentage of the units
37	37	in the development for occupancy of individuals and families
38	38	earning:
39	39	(A) not more than 50 percent of the area median
40	40	income, adjusted for family size;
41	41	(B) not more than 60 percent of the area median
42	42	income, adjusted for family size;
43	43	(C) not more than 80 percent of the area median
44	44	income, adjusted for family size;
45	45	(D) not more than 100 percent of the area median
46	46	income, adjusted for family size; and
47	47	(E) not more than 120 percent of the area median
48	48	income, adjusted for family size;
49	49	(3) for an income-restricted unit, may not charge rent
50	50	in an amount that exceeds 30 percent of the monthly income
51	51	restriction applicable to that unit under Subdivision (2); and
52	52	(4) must maintain the affordability requirements
53	53	described by Subdivisions (2) and (3) for a period of not less than
54	54	20 years following the date of receipt of financial assistance
55	55	under this section.
56	56	(d) The department shall adopt rules to implement the
57	57	program, including rules that:
58	58	(1) provide criteria for determining which developers
59	59	and workforce housing developments may participate in the program;
60	60	(2) specify the percentage of units that a development
61	61	must reserve to satisfy the affordability requirements under
62	62	Subsection (c)(2), to demonstrate eligibility for financial
63	63	assistance awarded to developers under the program; and
64	64	(3) provide a scoring system to prioritize the
65	65	developments for which developers may use financial assistance
66	66	under the program.
67	67	(e) The scoring system established under Subsection (d)(3)
68	68	must give priority to workforce housing developments that reserve a
69	69	greater number of units for lower area median incomes and must award
70	70	higher value loans to developers for eligible developments in
71	71	proportion to the affordability of the developments.
72	72	(f) The workforce housing fund is a special account in the
73	73	state treasury. The fund consists of:
74	74	(1) money appropriated to the board for a purpose of
75	75	the fund;
76	76	(2) repayment of principal and interest from loans
77	77	made from the fund;
78	78	(3) money the board transfers to the fund from any
79	79	available source;
80	80	(4) depository interest allocable to the fund and
81	81	other investment returns on money in the fund;
82	82	(5) money from gifts, grants, or donations to the
83	83	fund; and
84	84	(6) any other fees or sources of revenue that the
85	85	legislature may dedicate for deposit to the fund.
86	86	(g) Financial assistance provided from the fund to a
87	87	developer for an eligible workforce housing development must be
88	88	spent by the recipient on the development not later than 36 months
89	89	after the date the assistance is received.
90	90	(h) Money provided from the fund that is not spent as
91	91	required by Subsection (g) must be returned to the department and
92	92	deposited to the credit of the fund.
93	93	SECTION 2. This Act takes effect September 1, 2025.