89R11993 JAM-D
By: Johnson S.B. No. 960
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of the workforce housing program by
the Texas Department of Housing and Community Affairs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter K, Chapter 2306, Government Code, is
amended by adding Section 2306.2595 to read as follows:
Sec. 2306.2595. WORKFORCE HOUSING PROGRAM. (a) In this
section:
(1) "Fund" means the workforce housing fund.
(2) "Mezzanine real estate loan" has the meaning
assigned by Section 425.1185, Insurance Code.
(3) "Program" means the workforce housing program.
(b) The department shall establish:
(1) the workforce housing program to provide financial
assistance to developers of multifamily housing to facilitate the
construction and rehabilitation of eligible workforce housing
developments in this state; and
(2) a workforce housing advisory committee to assist
the department in implementing this section.
(c) Financial assistance may be awarded for the purposes
described by this section from the fund described by Subsection (f)
to developers in the form of low-interest loans offered below
market rate, which:
(1) must be structured as mezzanine real estate loans;
(2) must be set at a rate that is one percent higher
than the secured overnight financing rate published by the Federal
Reserve Bank of New York or its successor entity; and
(3) may not exceed 20 percent of the initial
construction or rehabilitation costs of the eligible development.
(d) To be eligible for the financial assistance received by
a developer under the program, a workforce housing development:
(1) must consist of new construction or a substantial
rehabilitation of an existing facility;
(2) must reserve at least 75 percent of the units in
the development for occupancy of individuals and families earning
not more than 120 percent of the area median income, adjusted for
family size;
(3) for an income-restricted unit, may not charge rent
in an amount that exceeds 30 percent of the monthly income
restriction described by Subdivision (2); and
(4) must maintain the affordability requirements
described by Subdivisions (2) and (3) for a period of not less than
20 years following the date of receipt of financial assistance
under this section.
(e) The department, in consultation with the workforce
housing advisory committee established under Subsection (b)(2),
shall adopt rules to implement the program, including rules that:
(1) provide criteria for determining which developers
and workforce housing developments may participate in the program;
and
(2) provide a scoring system to prioritize the
developments for which developers may use financial assistance
under the program.
(f) The workforce housing fund is a special account in the
state treasury. The fund consists of:
(1) money appropriated to the board for a purpose of
the fund;
(2) repayment of principal and interest from loans
made from the fund;
(3) money the board transfers to the fund from any
available source;
(4) depository interest allocable to the fund and
other investment returns on money in the fund;
(5) money from gifts, grants, or donations to the
fund; and
(6) any other fees or sources of revenue that the
legislature may dedicate for deposit to the fund.
(g) Financial assistance provided from the fund to a
developer for an eligible workforce housing development must be
spent by the recipient on the development not later than 36 months
after the date the assistance is received.
(h) Money provided from the fund that is not spent as
required by Subsection (g) must be returned to the department and
deposited to the credit of the fund.
SECTION 2. This Act takes effect September 1, 2025.