86R9510 JAM-F
	By: Walle	H.B. No. 1402

	A BILL TO BE ENTITLED
	AN ACT
	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 [DEFINITION]. In this
	subchapter:
	(1)  "Corporation" [, "corporation"] means the Texas
	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 [, very
	low, and extremely low] income and for persons who are eligible for
	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 [,
	very low, and extremely low] income and to persons who are eligible
	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 [, very low, and
	extremely low] income [if the individual's or family's household
	income is not more than the greater of 60 percent of the median
	income for the state, as defined by the United States Department of
	Housing and Urban Development, or 60 percent of the area median
	family income, adjusted for family size, as defined by that
	department].
	(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 [, very low, and extremely low] income.
	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 [, very low, and extremely low] income who,
	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 [, very low, and extremely low] income.
	SECTION 5.  This Act takes effect September 1, 2019.