HB2425 - Relating to the purpose of and programs administered by the Texas State Affordable Housing Corporation.

  89R10560 JAM-D     By: Goodwin H.B. No. 2425       A BILL TO BE ENTITLED   AN ACT   relating to the purpose of and programs administered by the Texas   State Affordable Housing Corporation.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  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 primarily for individuals and families   of low income , individuals and families of very low income ,   individuals and families of [ 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 income ,   individuals and families of very low income , individuals and   families of [ and ] extremely low income , and [ to ] persons who are   eligible for loans under the home loan program provided by Section   2306.5621.  The corporation may make first lien, single family   purchase money mortgage loans for single family homes [ only ] to   individuals and families of low, very low, and extremely low income   only 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.  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 income , individuals and families of very low   income , individuals and families of [ and ] extremely low income , and   persons who are eligible for loans under the home loan program   provided by Section 2306.5621 .          SECTION 2.  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 :                 (1)   individuals and families of low, very low, and   extremely low income who, generally, are not afforded housing   finance options through conventional lending channels ; and                   (2)     persons who are eligible for loans under the home   loan program provided by Section 2306.5621 .          SECTION 3.  Section 2306.5621(a), Government Code, is   amended by amending Subdivision (2) and adding Subdivisions (17),   (18), and (19) to read as follows:                (2)  "Home" means a dwelling in this state in which a   fire fighter, corrections officer, county jailer, public security   officer, peace officer, municipal employee, nurse, social worker,     professional educator, veteran, or person defined as emergency   medical services personnel under this section intends to reside as   the borrower's principal residence.                 (17)     "Municipal employee" means a permanent,   full-time employee of a municipality.                 (18)     "Nurse" has the meaning assigned by Section   303.001, Occupations Code.                 (19)     "Social worker" has the meaning assigned by   Section 505.002, Occupations Code.          SECTION 4.  Sections 2306.5621(b), (c), (d), (f), and (h-1),   Government Code, are amended to read as follows:          (b)  The corporation shall establish a program to provide   eligible persons [ fire fighters, corrections officers, county   jailers, public security officers, peace officers, emergency   medical services personnel, professional educators, and veterans ]   with low-interest home mortgage loans.          (c)  To be eligible for a loan under this section, at the time   a person files an application for the loan, the person must:                (1)  be a:                      (A)  fire fighter, corrections officer, county   jailer, public security officer, peace officer, municipal   employee, nurse, social worker, veteran, or person defined as   emergency medical services personnel under this section; or                      (B)  professional educator who is employed by a   school district or is an allied health or professional nursing   program faculty member in this state;                (2)  reside in this state; and                (3)  have an income of not more than 140  [ 115 ] percent   of area median family income, adjusted for family size, or the   maximum amount permitted by Section 143(f), Internal Revenue Code   of 1986, whichever is greater.          (d)  The corporation may contract with other agencies of the   state or with private entities to determine whether applicants   qualify as fire fighters, corrections officers, county jailers,   public security officers, peace officers, municipal employees,   nurses, social workers,  emergency medical services personnel,   professional educators, or veterans under this section or otherwise   to administer all or part of this section.          (f)  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 mortgage lenders;                (4)  the use of insurance on the loans and the homes   financed under the program, as considered appropriate by the board   to provide additional security for the loans;                (5)  the verification of occupancy of the home by the   fire fighter, corrections officer, county jailer, public security   officer, peace officer, municipal employee, nurse, social worker,     professional educator, veteran, or person defined as emergency   medical services personnel as the borrower's principal residence;   and                (6)  the terms of any contract made with any mortgage   lender for processing, originating, servicing, or administering   the loans.          (h-1)  To fund home mortgage loans for eligible persons  [ fire   fighters, corrections officers, county jailers, public security   officers, peace officers, emergency medical services personnel,   professional educators, and veterans ] under this section, the   corporation may use any proceeds received from the sale of bonds,   notes, or other obligations issued under the home loan program   provided by this section, regardless of any amendments to the   eligibility standards for loans made under the program and   regardless of when the corporation received the proceeds from those   bonds, notes, or other obligations issued under the program.          SECTION 5.  This Act takes effect September 1, 2025.