Bill Text: TX HB1402 | 2019-2020 | 86th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the purposes of and income eligibility limits for participation in programs offered by the Texas State Affordable Housing Corporation.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Engrossed - Dead) 2019-05-22 - Not again placed on intent calendar [HB1402 Detail]
Download: Texas-2019-HB1402-Introduced.html
Bill Title: Relating to the purposes of and income eligibility limits for participation in programs offered by the Texas State Affordable Housing Corporation.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Engrossed - Dead) 2019-05-22 - Not again placed on intent calendar [HB1402 Detail]
Download: Texas-2019-HB1402-Introduced.html
86R9510 JAM-F | ||
By: Walle | H.B. No. 1402 |
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relating to the purposes of and income eligibility limits for | ||
participation in programs offered by the Texas State Affordable | ||
Housing Corporation. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 2306.551, Government Code, is amended to | ||
read as follows: | ||
Sec. 2306.551. DEFINITIONS [ |
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subchapter: | ||
(1) "Corporation" [ |
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State Affordable Housing Corporation. | ||
(2) "Economic development opportunities" means | ||
financing activities that: | ||
(A) maintain or increase employment in an area of | ||
high unemployment or an area with a concentration of low-income to | ||
moderate-income households; | ||
(B) constitute activities that would not | ||
otherwise occur in the area in the absence of economic development; | ||
(C) support the public purposes of the | ||
corporation described by Section 2306.553; and | ||
(D) do not limit, impair, or conflict with the | ||
public purposes or activities of the Texas Economic Development and | ||
Tourism Office established under Chapter 481, including duties, | ||
powers, or purposes relating to the: | ||
(i) Texas Economic Development Corporation | ||
established under Section 481.024; | ||
(ii) capital access fund established under | ||
Section 481.402; and | ||
(iii) capital access program established | ||
under Section 481.405. | ||
SECTION 2. Section 2306.553, Government Code, is amended to | ||
read as follows: | ||
Sec. 2306.553. PURPOSES. (a) The public purpose of the | ||
corporation is to perform activities and services that the | ||
corporation's board of directors determines will promote the public | ||
health, safety, and welfare through the provision of adequate, | ||
safe, and sanitary housing and economic development opportunities | ||
primarily for individuals and families of low to moderate [ |
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loans under the home loan program provided by Section 2306.5621. | ||
The activities and services shall include engaging in mortgage | ||
banking activities and lending transactions and acquiring, | ||
holding, selling, or leasing real or personal property. | ||
(b) The corporation's primary public purpose is to | ||
facilitate the provision of housing by issuing qualified 501(c)(3) | ||
bonds and qualified residential rental project bonds and by making | ||
affordable loans to individuals and families of low to moderate [ |
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for loans under the home loan program provided by Section | ||
2306.5621. | ||
(b-1) The corporation may make first lien, single family | ||
purchase money mortgage loans for single family homes only to | ||
individuals and families of low to moderate [ |
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(b-2) The corporation may make loans for multifamily | ||
developments if: | ||
(1) at least 40 percent of the units in a multifamily | ||
development are affordable to individuals and families with incomes | ||
at or below 60 percent of the median family income, adjusted for | ||
family size; or | ||
(2) at least 20 percent of the units in a multifamily | ||
development are affordable to individuals and families with incomes | ||
at or below 50 percent of the median family income, adjusted for | ||
family size. | ||
(c) To the extent reasonably practicable, the corporation | ||
shall use the services of banks, community banks, savings banks, | ||
thrifts, savings and loan associations, private mortgage | ||
companies, nonprofit organizations, and other lenders for the | ||
origination of all loans contemplated by this subchapter and assist | ||
the lenders in providing credit primarily to individuals and | ||
families of low to moderate [ |
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SECTION 3. Section 2306.555(d), Government Code, is amended | ||
to read as follows: | ||
(d) All of the mortgage banking operations shall be | ||
dedicated to the furtherance of facilitating affordable housing | ||
finance primarily for the benefit of individuals and families of | ||
low to moderate [ |
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generally, are not afforded housing finance options through | ||
conventional lending channels. | ||
SECTION 4. Section 2306.5552, Government Code, is amended | ||
to read as follows: | ||
Sec. 2306.5552. TECHNICAL AND FINANCIAL ASSISTANCE | ||
PROVIDED TO NONPROFIT ORGANIZATIONS. The corporation shall | ||
supplement the technical and financial capacity of other | ||
appropriate nonprofit organizations to provide for the multifamily | ||
and single-family housing needs of individuals and families of low | ||
to moderate [ |
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SECTION 5. This Act takes effect September 1, 2019. |