1-1 AN ACT
1-2 relating to the continuation and functions of the Texas State
1-3 Affordable Housing Corporation.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter B, Chapter 1372, Government Code, is
1-6 amended by adding Section 1372.0221 to read as follows:
1-7 Sec. 1372.0221. DEDICATION OF PORTION OF STATE CEILING FOR
1-8 TEACHERS HOME LOAN PROGRAM. Out of that portion of the state
1-9 ceiling that is available exclusively for reservations by issuers
1-10 of qualified mortgage bonds under Section 1372.022, $25 million
1-11 shall be allotted each year and made available exclusively to the
1-12 Texas State Affordable Housing Corporation for the purpose of
1-13 issuing qualified mortgage bonds in connection with the teachers
1-14 home loan program established under Section 2306.562.
1-15 SECTION 2. Section 2306.5521, Government Code, is amended to
1-16 read as follows:
1-17 Sec. 2306.5521. SUNSET PROVISION. The Texas State Affordable
1-18 Housing Corporation is subject to Chapter 325 (Texas Sunset Act).
1-19 Unless continued in existence as provided by that chapter, the
1-20 corporation is abolished and this subchapter expires September 1,
1-21 2003 [
1-22 SECTION 3. Sections 2306.553(a) and (b), Government Code,
1-23 are amended to read as follows:
1-24 (a) The public purpose of the corporation is to perform
2-1 activities and services that the corporation's board of directors
2-2 determines will promote the public health, safety, and welfare
2-3 through the provision of adequate, safe, and sanitary housing
2-4 primarily for individuals and families of low, very low, and
2-5 extremely low income, and for teachers under the teachers home loan
2-6 program as provided by Section 2306.562. The activities and
2-7 services shall include engaging in mortgage banking activities and
2-8 lending transactions and acquiring, holding, selling, or leasing
2-9 real or personal property.
2-10 (b) The corporation's primary public purpose is to
2-11 facilitate the provision of housing and the making of affordable
2-12 loans to individuals and families of low, very low, and extremely
2-13 low income, and to teachers under the teachers home loan program.
2-14 The corporation may make first lien, single family purchase money
2-15 mortgage loans for single family homes only to individuals and
2-16 families of low, very low, and extremely low income if the
2-17 individual's or family's household income is not more than the
2-18 greater of 60 percent of the median income for the state, as
2-19 defined by the United States Department of Housing and Urban
2-20 Development, or 60 percent of the area median family income,
2-21 adjusted for family size, as defined by that department. The
2-22 corporation may make loans for multifamily developments if:
2-23 (1) at least 40 percent of the units in a multifamily
2-24 development are affordable to individuals and families with incomes
2-25 at or below 60 percent of the median family income, adjusted for
2-26 family size; or
2-27 (2) at least 20 percent of the units in a multifamily
3-1 development are affordable to individuals and families with incomes
3-2 at or below 50 percent of the median family income, adjusted for
3-3 family size.
3-4 SECTION 4. Subchapter Y, Chapter 2306, Government Code, is
3-5 amended by adding Sections 2306.5551 and 2306.5552 to read as
3-7 Sec. 2306.5551. BOARD DELEGATION OF AUTHORITY TO ISSUE BONDS
3-8 OR OTHER OBLIGATIONS. (a) The board of directors of the
3-9 corporation may delegate to a member of the board or to an employee
3-10 of the corporation the authority to enter into a contract to issue
3-11 bonds or other obligations for the corporation.
3-12 (b) The person to whom contract authority is delegated under
3-13 this section shall report to the board as frequently as considered
3-14 necessary by the board all of the person's activities relating to
3-15 the issuance of bonds or other obligations.
3-16 Sec. 2306.5552. TECHNICAL AND FINANCIAL ASSISTANCE PROVIDED
3-17 TO NONPROFIT ORGANIZATIONS. The corporation shall supplement the
3-18 technical and financial capacity of other appropriate nonprofit
3-19 organizations to provide for the multifamily and single-family
3-20 housing needs of individuals and families of low, very low, and
3-21 extremely low income.
3-22 SECTION 5. Subchapter Y, Chapter 2306, Government Code, is
3-23 amended by adding Section 2306.562 to read as follows:
3-24 Sec. 2306.562. TEACHERS HOME LOAN PROGRAM. (a) In this
3-26 (1) "Home" means a dwelling in this state in which a
3-27 teacher intends to reside as the teacher's principal residence.
4-1 (2) "Mortgage lender" has the meaning assigned by
4-2 Section 2306.004.
4-3 (3) "Program" means the teachers home loan program.
4-4 (4) "Teacher" means a person who is a classroom
4-5 teacher as defined by Section 5.001, Education Code.
4-6 (b) The corporation shall establish a program to provide
4-7 eligible teachers whose income does not exceed 115 percent of area
4-8 median family income, adjusted for family size, with low-interest
4-9 home mortgage loans.
4-10 (c) To be eligible for a loan under this section, a teacher
4-12 (1) have been residing in this state for the five-year
4-13 period preceding the date the teacher files an application for a
4-14 loan under this section;
4-15 (2) have been working as a teacher for the three-year
4-16 period preceding the application date; and
4-17 (3) reside in this state on the application date.
4-18 (d) The corporation may contract with other agencies of the
4-19 state or with private entities to determine whether applicants
4-20 qualify as teachers under this section or otherwise to administer
4-21 all or part of this section.
4-22 (e) The board of directors of the corporation may set and
4-23 collect from each applicant any fees the board considers reasonable
4-24 and necessary to cover the expenses of administering the program.
4-25 (f) The board of directors of the corporation shall adopt
4-26 rules governing:
4-27 (1) the administration of the program;
5-1 (2) the making of loans under the program;
5-2 (3) the criteria for approving mortgage lenders;
5-3 (4) the use of insurance on the loans and the homes
5-4 financed under the program, as considered appropriate by the board
5-5 to provide additional security for the loans;
5-6 (5) the verification of occupancy of the home by the
5-7 teacher as the teacher's principal residence; and
5-8 (6) the terms of any contract made with any mortgage
5-9 lender for processing, originating, servicing, or administering the
5-11 (g) The corporation shall ensure that a loan under this
5-12 section is structured in a way that complies with any requirements
5-13 associated with the source of the funds used for the loan.
5-14 (h) In addition to funds set aside for the program under
5-15 Section 1372.0221, the corporation may solicit and accept funding
5-16 for the program from the following sources:
5-17 (1) gifts and grants for the purposes of this section;
5-18 (2) available money in the housing trust fund
5-19 established under Section 2306.201, to the extent available to the
5-21 (3) federal block grants that may be used for the
5-22 purposes of this section, to the extent available to the
5-24 (4) other state or federal programs that provide money
5-25 that may be used for the purposes of this section; and
5-26 (5) amounts received by the corporation in repayment
5-27 of loans made under this section.
6-1 (i) This section expires September 1, 2012.
6-2 SECTION 6. The Texas State Affordable Housing Corporation
6-4 (1) give priority to a teacher who resides or teaches
6-5 in an area of the state with a teacher shortage, as determined by
6-6 the commissioner of education;
6-7 (2) aggressively pursue funding for the teachers home
6-8 loan program required by Section 2306.562, Government Code, as
6-9 added by this Act; and
6-10 (3) implement the teachers home loan program required
6-11 by that section not later than September 1, 2002.
6-12 SECTION 7. (a) If the legislature finds in a scheduled
6-13 review of the Texas State Affordable Housing Corporation by the
6-14 Sunset Advisory Commission under Section 2306.5521, Government
6-15 Code, that the teachers home loan program under Section 2306.562,
6-16 Government Code, as added by this Act, is not being managed to
6-17 accomplish the goal of providing low-interest home mortgage loans
6-18 to teachers, the legislature shall make specific recommendations to
6-19 remedy any problems.
6-20 (b) If the legislature finds in a scheduled review of the
6-21 Texas State Affordable Housing Corporation by the Sunset Advisory
6-22 Commission under Section 2306.5521, Government Code, that the
6-23 corporation should be abolished, the teachers home loan program
6-24 under Section 2306.562, Government Code, as added by this Act,
6-25 shall be transferred to another appropriate state agency.
6-26 SECTION 8. This Act takes effect immediately if it receives
6-27 a vote of two-thirds of all the members elected to each house, as
7-1 provided by Section 39, Article III, Texas Constitution. If this
7-2 Act does not receive the vote necessary for immediate effect, this
7-3 Act takes effect September 1, 2001.
President of the Senate Speaker of the House
I certify that H.B. No. 3451 was passed by the House on April
26, 2001, by the following vote: Yeas 145, Nays 0, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 3451 on May 25, 2001, by the following vote: Yeas 106, Nays 0,
1 present, not voting.
Chief Clerk of the House
I certify that H.B. No. 3451 was passed by the Senate, with
amendments, on May 16, 2001, by the following vote: Yeas 30, Nays
0, 1 present, not voting.
Secretary of the Senate