HB21 - Relating to housing finance corporations; authorizing a fee.

      H.B. No. 21         AN ACT   relating to housing finance corporations; authorizing a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 394.004, Local Government Code, is   amended to read as follows:          Sec. 394.004.  APPLICATION OF CHAPTER TO CERTAIN RESIDENTIAL   DEVELOPMENTS.  This chapter applies only to a residential   development at least 90 percent of which is for use by or is   intended to be occupied by households [ persons ] of low and moderate   income whose adjusted gross income [ , together with the adjusted   gross income of all persons who intend to reside with those persons   in one dwelling unit, ] did not for the preceding tax year exceed the   maximum amount constituting moderate income as defined under the   housing finance corporation's rules, resolutions relating to the   issuance of bonds, or financing documents relating to the issuance   of bonds.          SECTION 2.  Subchapter A, Chapter 394, Local Government   Code, is amended by adding Section 394.0045 to read as follows:           Sec.   394.0045.     APPLICABILITY OF OPEN MEETINGS AND OPEN   RECORDS LAWS.   (a)   Chapter 551, Government Code, applies to actions   and proceedings under this chapter.           (b)     Chapter 552, Government Code, applies to all records of   a housing finance corporation.          SECTION 3.  The heading to Section 394.031, Local Government   Code, is amended to read as follows:          Sec. 394.031.  EXERCISE OF POWERS ; AREA OF OPERATION .          SECTION 4.  Section 394.031, Local Government Code, is   amended by adding Subsections (c), (d), and (e) to read as follows:           (c)     Subject to Subsection (d), the area in which a housing   finance corporation may own real property for residential   development or engage in residential development is limited to:                 (1)     for a housing finance corporation sponsored by a   municipality under Section 394.011, the boundaries of the   municipality that sponsored the corporation;                   (2)     for a housing finance corporation sponsored by a   county under Section 394.011, the boundaries of the county that   sponsored the corporation; or                 (3)     for a housing finance corporation sponsored by   more than one local government under Section 394.012:                       (A)     the boundaries of each municipal sponsor of   the corporation; and                         (B)     the boundaries of each county sponsor of the   corporation.           (d)     A housing finance corporation may own real property for   residential development or engage in residential development   outside an area described by Subsection (c) only if a resolution or   order, as applicable, approving that ownership or development in   the outside area is adopted by the governing bodies of:                 (1)     each municipality that contains any part of the   outside area in which the corporation proposes to own real property   for residential development or engage in residential development;                 (2)     for a residential development or home located in   the unincorporated area of a county, each county that contains any   part of the outside area in which the corporation proposes to own   real property for residential development or engage in residential   development; and                 (3)     any housing finance corporation sponsored by a   municipality or county described by Subdivision (1) or (2), as   applicable.           (e)     This section does not prohibit or limit a housing   finance corporation from owning real property outside an area   described by Subsection (c) or (d) if the property is not owned for   purposes of residential development.          SECTION 5.  Section 394.032(e), Local Government Code, is   amended to read as follows:          (e)  A housing finance corporation may delegate to the Texas   Department of Housing and Community Affairs the authority to act on   its behalf in the financing, refinancing, acquisition, leasing,   ownership, improvement, and disposal of home mortgages or   residential developments, [ within and outside the jurisdiction of   the housing finance corporation, ] including its authority to issue   bonds for those purposes.          SECTION 6.  Section 394.037, Local Government Code, is   amended by adding Subsection (a-1) to read as follows:           (a-1)     A housing finance corporation may issue bonds under   this chapter for a purpose described by Subsection (a) only to   finance or support a residential development or home that is   located or will be constructed:                 (1)     within the boundaries of a local government in   which a housing finance corporation is permitted to own real   property for residential development or engage in residential   development under Section 394.031(c); or                 (2)     outside the boundaries of a local government   described by Subdivision (1) if a resolution or order, as   applicable, approving the issuance of bonds is adopted by the   governing body of:                         (A)     each municipality that contains any part of   the residential development or home; and                       (B)     for a residential development or home located   in the unincorporated area of a county, each county that contains   any part of the residential development or home.          SECTION 7.  Section 394.039, Local Government Code, is   amended to read as follows:          Sec. 394.039.  SPECIFIC POWERS RELATING TO FINANCIAL AND   PROPERTY TRANSACTIONS. Subject to Sections 394.031(c), (d), and   (e), a  [ A ] housing finance corporation may:                (1)  lend money for its corporate purposes, invest and   reinvest its funds, and take and hold real or personal property as   security for the payment of the loaned or invested funds;                (2)  mortgage, pledge, or grant security interests in   any residential development, home mortgage, note, or other property   in favor of the holders of bonds issued for those items;                (3)  purchase, receive, lease, or otherwise acquire,   own, hold, improve, use, or deal in and with real or personal   property or interests in that property, [ wherever the property is   located, ] as required by the purposes of the corporation or as   donated to the corporation; and                (4)  sell, convey, mortgage, pledge, lease, exchange,   transfer, and otherwise dispose of all or part of its property and   assets.          SECTION 8.  Section 394.9025, Local Government Code, is   amended to read as follows:          Sec. 394.9025.  MULTIFAMILY RESIDENTIAL DEVELOPMENT.  (a)     Following a public hearing by the governing body of the applicable   local government , a housing finance corporation may , subject to the   geographic limitations of Section 394.037(a-1), issue bonds to   finance a multifamily residential development to be owned by the   housing finance corporation if :                 (1)   at least 50 percent of the units in the multifamily   residential development are reserved for occupancy by individuals   and families earning less than 80 percent of the area median family   income ; or                 (2)     the units in the multifamily residential   development are reserved in the manner provided by Section   394.9026(c)(1) .          (b)  Following a public hearing by the governing body of the   applicable local government, a housing finance corporation may ,   subject to the geographic limitations of Section 394.037(a-1),   issue bonds to finance a multifamily residential development to be   owned by the housing finance corporation in accordance with Section   394.004 if the housing finance corporation receives approval of the   governing body of the local government.          SECTION 9.  Subchapter Z, Chapter 394, Local Government   Code, is amended by adding Sections 394.9026 and 394.9027 to read as   follows:           Sec.   394.9026.     ADDITIONAL CONDITIONS FOR BENEFICIAL AD   VALOREM TAX TREATMENT RELATING TO CERTAIN MULTIFAMILY RESIDENTIAL   DEVELOPMENTS. (a)   In this section:                 (1)     "Housing choice voucher program" means the housing   choice voucher program under Section 8, United States Housing Act   of 1937 (42 U.S.C. Section 1437f).                 (2)  "Housing finance corporation user" means:                       (A)  a housing finance corporation; or                       (B)     for a multifamily residential development   that is not owned directly by a housing finance corporation, a   public-private partnership entity or a developer or other person or   entity that has an ownership interest or a leasehold or other   possessory interest in multifamily residential development   financed or supported by a housing finance corporation.                 (3)     "Lower income housing unit" means a residential   unit reserved for occupancy by an individual or family earning not   more than 60 percent of the area median income, adjusted for family   size, as defined by the United States Department of Housing and   Urban Development.                 (4)     "Maximum market rent" means, with respect to a   particular income-restricted unit, the average annual rent charged   for all non-income-restricted units in the development having the   same or substantially similar floor plan as the income-restricted   unit.                 (5)     "Middle income housing unit" means a residential   unit reserved for occupancy by an individual or family earning not   more than 100 percent of the area median income, adjusted for family   size, as defined by the United States Department of Housing and   Urban Development.                 (6)     "Moderate income housing unit" means a residential   unit reserved for occupancy by an individual or family earning not   more than 80 percent of the area median income, adjusted for family   size, as defined by the United States Department of Housing and   Urban Development.                 (7)     "Multifamily residential development" means any   residential development consisting of four or more residential   units intended for occupancy as rentals, regardless of whether the   units are attached or detached.                 (8)     "Rent" means any recurring fee or charge a tenant   is required to pay as a condition of occupancy, including a fee or   charge for the use of a common area or facility reasonably   associated with residential rental property. The term does not   include fees and charges for services or amenities that are   optional for a te [Text truncated for display. Full text available on Congress.gov.]