Bill Text: TX HB2660 | 2011-2012 | 82nd Legislature | Engrossed
Bill Title: Relating to the functions of the Texas Department of Housing and Community Affairs and transferring certain department functions to the Texas State Affordable Housing Corporation.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2011-05-11 - Referred to Intergovernmental Relations [HB2660 Detail]
Download: Texas-2011-HB2660-Engrossed.html
By: J. Davis of Harris, Dutton | H.B. No. 2660 |
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relating to the functions of the Texas Department of Housing and | ||
Community Affairs and transferring certain department functions to | ||
the Texas State Affordable Housing Corporation. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter K, Chapter 2306, Government Code, is | ||
amended by adding Section 2306.2585 to read as follows: | ||
Sec. 2306.2585. HOMELESS HOUSING AND SERVICES PROGRAM. (a) | ||
The department may administer a homeless housing and services | ||
program in each municipality in this state with a population of | ||
285,500 or more to: | ||
(1) provide for the construction, development, or | ||
procurement of housing for homeless persons; and | ||
(2) provide local programs to prevent and eliminate | ||
homelessness. | ||
(b) If the department implements the homeless housing and | ||
services program under Subsection (a), the department shall adopt | ||
rules to govern the program, including rules that: | ||
(1) provide for the allocation of any available | ||
funding; and | ||
(2) provide detailed guidelines as to the scope of the | ||
local programs in the municipalities described by Subsection (a). | ||
(c) The department may use any available revenue, including | ||
legislative appropriations, and shall solicit and accept gifts and | ||
grants for the purposes of this section. The department shall use | ||
gifts and grants received for the purposes of this section before | ||
using any other revenue. | ||
SECTION 2. Section 1372.0221, Government Code, is amended | ||
to read as follows: | ||
Sec. 1372.0221. DEDICATION OF PORTION OF STATE CEILING FOR | ||
PROFESSIONAL EDUCATORS HOME LOAN PROGRAM. Until August 7, out of | ||
that portion of the state ceiling that is available exclusively for | ||
reservations by the Texas State Affordable Housing Corporation | ||
under Section 1372.0223, 20 [ |
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year and made available to the corporation for the purpose of | ||
issuing qualified mortgage bonds in connection with the | ||
professional educators home loan program established under Section | ||
2306.562. | ||
SECTION 3. Section 1372.0222, Government Code, is amended | ||
to read as follows: | ||
Sec. 1372.0222. DEDICATION OF PORTION OF STATE CEILING FOR | ||
FIRE FIGHTER, LAW ENFORCEMENT OR SECURITY OFFICER, AND EMERGENCY | ||
MEDICAL SERVICES PERSONNEL HOME LOAN PROGRAM. Until August 7, out | ||
of that portion of the state ceiling that is available exclusively | ||
for reservations by the Texas State Affordable Housing Corporation | ||
under Section 1372.0223, 10 [ |
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year and made available to the corporation for the purpose of | ||
issuing qualified mortgage bonds in connection with the fire | ||
fighter, law enforcement or security officer, and emergency medical | ||
services personnel home loan program established under Section | ||
2306.5621. | ||
SECTION 4. Subchapter B, Chapter 1372, Government Code, is | ||
amended by adding Section 1372.02221 to read as follows: | ||
Sec. 1372.02221. DEDICATION OF PORTION OF STATE CEILING FOR | ||
PROGRAMS ADMINISTERED BY TEXAS STATE AFFORDABLE HOUSING | ||
CORPORATION. Until August 7, out of that portion of the state | ||
ceiling that is available exclusively for reservations by the Texas | ||
State Affordable Housing Corporation under Section 1372.0223, 70 | ||
percent shall be allotted each year and made available to the | ||
corporation for the purpose of issuing qualified mortgage bonds in | ||
connection with the programs established under Sections 2306.562 | ||
and 2306.5621 or any other home loan program administered by the | ||
corporation. | ||
SECTION 5. Section 1372.0223, Government Code, is amended | ||
to read as follows: | ||
Sec. 1372.0223. DEDICATION OF PORTION OF STATE CEILING TO | ||
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of that portion of the state ceiling that is available exclusively | ||
for reservations by issuers of qualified mortgage bonds under | ||
Section 1372.022: | ||
(1) 40 [ |
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Texas State Affordable Housing Corporation for the purpose of | ||
issuing qualified mortgage bonds; and | ||
(2) 60 [ |
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housing finance corporations for the purpose of issuing qualified | ||
mortgage bonds. | ||
SECTION 6. Section 1372.023, Government Code, is amended by | ||
adding Subsection (d) to read as follows: | ||
(d) The Texas Department of Housing and Community Affairs | ||
may not issue qualified mortgage bonds after September 1, 2011, | ||
except as necessary to complete its activity under the New Issue | ||
Bond Program. | ||
SECTION 7. Section 1372.025(b), Government Code, is amended | ||
to read as follows: | ||
(b) Subsection (a) does not apply to: | ||
(1) [ |
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residential rental project bonds made available exclusively to the | ||
Texas Department of Housing and Community Affairs under Section | ||
1372.023; or | ||
(2) qualified mortgage bonds made available | ||
exclusively to the Texas State Affordable Housing Corporation under | ||
Sections 1372.0221, [ |
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SECTION 8. Section 1372.037(a), Government Code, is amended | ||
to read as follows: | ||
(a) Except as provided by Subsection (b), before August 15 | ||
the board may not grant for any single project a reservation for | ||
that year that is greater than: | ||
(1) $40 million, if the issuer is an issuer of | ||
qualified mortgage bonds, other than the [ |
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Housing Corporation; | ||
(2) $50 million, if the issuer is an issuer of a | ||
state-voted issue, other than the Texas Higher Education | ||
Coordinating Board, or $75 million, if the issuer is the Texas | ||
Higher Education Coordinating Board; | ||
(3) the amount to which the Internal Revenue Code | ||
limits issuers of qualified small issue bonds and enterprise zone | ||
facility bonds, if the issuer is an issuer of those bonds; | ||
(4) the lesser of $20 million or 15 percent of the | ||
amount set aside for reservation by issuers of qualified | ||
residential rental project bonds, if the issuer is an issuer of | ||
those bonds; | ||
(5) the amount as prescribed in Sections 1372.033(d), | ||
(e), and (f), if the issuer is an issuer authorized by Section | ||
53B.47, Education Code, to issue qualified student loan bonds; or | ||
(6) $50 million, if the issuer is any other issuer of | ||
bonds that require an allocation. | ||
SECTION 9. Section 1372.040, Government Code, is amended to | ||
read as follows: | ||
Sec. 1372.040. RESERVATION BY CERTAIN ISSUERS OF QUALIFIED | ||
MORTGAGE BONDS OF MONEY FOR MORTGAGES FOR CERTAIN PERSONS. An | ||
issuer of qualified mortgage bonds, other than the [ |
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Affordable Housing Corporation, shall reserve for six months 50 | ||
percent of the funds available for loans outside the federally | ||
designated target areas to provide mortgages to individuals and | ||
families with incomes below 80 percent of the applicable median | ||
family income, as defined by Section 143(f)(4), Internal Revenue | ||
Code (26 U.S.C. Section 143(f)(4)). | ||
SECTION 10. Subchapter Y, Chapter 2306, Government Code, is | ||
amended by adding Section 2306.5622 to read as follows: | ||
Sec. 2306.5622. TEXAS FIRST-TIME HOMEBUYER PROGRAM. (a) | ||
In this section: | ||
(1) "First-time homebuyer" means a person who has not | ||
owned a home during the three years preceding the date on which an | ||
application under this section is filed. | ||
(2) "Home" means a dwelling in this state in which a | ||
first-time homebuyer intends to reside as the homebuyer's principal | ||
residence. | ||
(3) "Program" means the Texas First-Time Homebuyer | ||
Program. | ||
(b) The Texas First-Time Homebuyer Program shall facilitate | ||
the origination of single-family mortgage loans for eligible | ||
first-time homebuyers. | ||
(c) The program may include down payment and closing cost | ||
assistance. | ||
(d) The corporation shall administer the program. | ||
(e) The board of directors of the corporation shall adopt | ||
rules governing: | ||
(1) the administration of the program; | ||
(2) the making of loans under the program; | ||
(3) the criteria for approving participating mortgage | ||
lenders; | ||
(4) the use of insurance on the loans and the homes | ||
financed under the program, as considered appropriate by the | ||
corporation's board to provide additional security for the loans; | ||
(5) the verification of occupancy of the home by the | ||
homebuyer as the homebuyer's principal residence; and | ||
(6) the terms of any contract made with any mortgage | ||
lender for processing, originating, servicing, or administering | ||
the loans. | ||
(f) To be eligible for a mortgage loan under this section, a | ||
homebuyer must: | ||
(1) qualify as a first-time homebuyer under this | ||
section; | ||
(2) have an income of not more than 115 percent of area | ||
median family income or 140 percent of area median family income in | ||
targeted areas; and | ||
(3) meet any additional requirements or limitations | ||
prescribed by the corporation. | ||
(g) To be eligible for a loan under this section to assist a | ||
homebuyer with down payment and closing costs, a homebuyer must: | ||
(1) qualify as a first-time homebuyer under this | ||
section; | ||
(2) have an income of not more than 80 percent of area | ||
median family income; and | ||
(3) meet any additional requirements or limitations | ||
prescribed by the corporation. | ||
(h) The corporation may contract with other agencies of the | ||
state or with private entities to determine whether applicants | ||
qualify as first-time homebuyers under this section or otherwise to | ||
administer all or part of this section. | ||
(i) The board of directors of the corporation may set and | ||
collect from each applicant any fees that board considers | ||
reasonable and necessary to cover the expenses of administering the | ||
program. | ||
(j) The corporation shall ensure that a loan under this | ||
section is structured in a way that complies with any requirements | ||
associated with the source of the funds used for the loan. | ||
(k) In addition to funds set aside for the program under | ||
Section 1372.0223(1), the corporation may solicit and accept | ||
funding for the program from gifts and grants for the purposes of | ||
this section. | ||
SECTION 11. Section 2306.253, Government Code, is | ||
transferred to Subchapter Y, Chapter 2306, Government Code, | ||
redesignated as Section 2306.570, Government Code, and amended to | ||
read as follows: | ||
Sec. 2306.570 [ |
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(a) The corporation [ |
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statewide homebuyer education program designed to provide | ||
information and counseling to prospective homebuyers about the home | ||
buying process. | ||
(b) The corporation [ |
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in cooperation with the Texas AgriLife [ |
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Service, the Health and [ |
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Commission, the Real Estate [ |
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University, the Texas Workforce Commission, experienced homebuyer | ||
education providers, community-based organizations, and advocates | ||
of affordable housing. When feasible, the corporation [ |
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centers established under Subchapter Z [ |
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(c) The corporation [ |
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existing training and informational materials available from | ||
sources such as the United States Department of Housing and Urban | ||
Development, the cooperative extension system, the Neighborhood | ||
Reinvestment Corporation, and existing homebuyer education | ||
providers. | ||
(d) In order to implement this section, the corporation | ||
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education program, including: | ||
(1) the amount of administrative or service fees the | ||
corporation [ |
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bonds that exceeds the amount the corporation [ |
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pay its overhead costs in administering its bond programs; and | ||
(2) money the corporation [ |
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other entities by gift or grant under a contract. | ||
SECTION 12. Section 2306.591(b), Government Code, is | ||
amended to read as follows: | ||
(b) An owner of a manufactured home is not eligible to | ||
participate in a grant loan program offered by the department[ |
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SECTION 13. The following provisions of the Government Code | ||
are repealed: | ||
(1) Section 1372.023(a); | ||
(2) Sections 2306.142 and 2306.143; and | ||
(3) Subchapter MM, Chapter 2306. | ||
SECTION 14. The change in law made by this Act in amending | ||
Chapter 1372, Government Code, applies only to a reservation of | ||
state ceiling granted on or after January 1, 2012. | ||
SECTION 15. (a) As soon as practicable after the effective | ||
date of this Act, the Texas Department of Housing and Community | ||
Affairs and the Texas State Affordable Housing Corporation shall | ||
develop a transition plan for transferring the functions performed | ||
by the department under Subchapter MM, Chapter 2306, Government | ||
Code, to the corporation. The transition plan must include a | ||
timetable with specific steps and deadlines needed to complete the | ||
transfer. | ||
(b) In accordance with the transition plan developed by the | ||
Texas Department of Housing and Community Affairs and the Texas | ||
State Affordable Housing Corporation under Subsection (a) of this | ||
section, on November 1, 2011: | ||
(1) all functions and activities relating to | ||
Subchapter MM, Chapter 2306, Government Code, performed by the | ||
Texas Department of Housing and Community Affairs immediately | ||
before that date are transferred to the Texas State Affordable | ||
Housing Corporation under Section 2306.5622, Government Code, as | ||
added by this Act; | ||
(2) a rule or form adopted by the executive director of | ||
the Texas Department of Housing and Community Affairs that relates | ||
to Subchapter MM, Chapter 2306, Government Code, is a rule or form | ||
of the Texas State Affordable Housing Corporation and remains in | ||
effect until amended or replaced by the corporation; | ||
(3) a reference in law to or an administrative rule of | ||
the Texas Department of Housing and Community Affairs that relates | ||
to Subchapter MM, Chapter 2306, Government Code, means the Texas | ||
State Affordable Housing Corporation; | ||
(4) a loan issued by the Texas Department of Housing | ||
and Community Affairs under Subchapter MM, Chapter 2306, Government | ||
Code, or an application for a loan under that subchapter pending | ||
before the department on the effective date of this Act is | ||
transferred without change in status to the Texas State Affordable | ||
Housing Corporation, and the corporation assumes, as appropriate | ||
and without a change in status, the position of the department in | ||
relation to that loan or application; | ||
(5) any employee of the Texas Department of Housing | ||
and Community Affairs who is primarily involved in administering | ||
Subchapter MM, Chapter 2306, Government Code, becomes an employee | ||
of the Texas State Affordable Housing Corporation; | ||
(6) all money, contracts, leases, property, and | ||
obligations of the Texas Department of Housing and Community | ||
Affairs that are related to Subchapter MM, Chapter 2306, Government | ||
Code, are transferred to the Texas State Affordable Housing | ||
Corporation; | ||
(7) all property that is in the custody of the Texas | ||
Department of Housing and Community Affairs and related to | ||
Subchapter MM, Chapter 2306, Government Code, is transferred to the | ||
Texas State Affordable Housing Corporation; and | ||
(8) the unexpended and unobligated balance of any | ||
money that is appropriated by the legislature for the Texas | ||
Department of Housing and Community Affairs and related to | ||
Subchapter MM, Chapter 2306, Government Code, is transferred to the | ||
Texas State Affordable Housing Corporation. | ||
(c) Before November 1, 2011, the Texas Department of Housing | ||
and Community Affairs may agree with the Texas State Affordable | ||
Housing Corporation to transfer any property of the department to | ||
the corporation to implement the transfer required by this Act. | ||
(d) In the period beginning on the effective date of this | ||
Act and ending on November 1, 2011, the Texas Department of Housing | ||
and Community Affairs shall continue to perform functions and | ||
activities under Subchapter MM, Chapter 2306, Government Code, as | ||
if that subchapter had not been repealed by this Act, and the former | ||
law is continued in effect for that purpose. | ||
SECTION 16. This Act takes effect September 1, 2011. |