HB4589 - Relating to the operation and functions of the Texas Department of Housing and Community Affairs.

      By: Cole H.B. No. 4589       A BILL TO BE ENTITLED   AN ACT   relating to the operation and functions of the Texas Department of   Housing and Community Affairs.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 2306.004(3), Government Code, is amended   to read as follows:                 (3)     "Contract for Deed" means a seller-financed   contract for the conveyance of real property under which:                       (A)     legal title does not pass to the purchaser   until the consideration of the contract is fully paid to the seller;   and                       (B)     the seller's remedy for nonpayment is   recision or forfeiture or acceleration of any remaining payments   rather than judicial or nonjudicial foreclosure.                 (3)     "Contract for Deed" a seller-financed executory   contract for the conveyance of real property, as further defined in   chapter 5, subchapter D, Property Code, under which:                       (A)     upon recordation of the contract for deed in   the county in which the property is located, the contract for deed   shall be the same as a deed with a vendor's lien. The vendor's lien   is for the amount of the unpaid contract price, less any lawful   deductions, and may be enforced by foreclosure sale under Section   5.066, Property Code, or by judicial foreclosure. A general   warranty is implied unless otherwise limited by the recorded   executory contract, and the seller is not required to continue   insuring the property; and                       (B)     if the contract for deed has not been   recorded, the seller may enforce the remedy of rescission or of   forfeiture and acceleration as further outlined in Section 5.064   Property Code against the buyer in default under a contract for   deed; and                       (C)     for purposes of department loan programs,   satisfaction of this section raises the presumption that ownership   of a residential property under a contract for deed that has been   properly recorded as vested in the buyer.          SECTION 2.  Section 2306.004(36), Government Code, is   amended to read as follows:                (36)  "Urban area" means the area that is located   within the boundaries of a primary metropolitan statistical area or   a metropolitan statistical area other than an area described by   Subdivision (28-a)(B) or eligible for funding as described by   Subdivision (28-a)(C) .          SECTION 3.  Section 2306.057(b), Government Code, is amended   to read as follows:          Sec. 2306.057.  COMPLIANCE ASSESSMENT REQUIRED FOR PROJECT   APPROVAL BY BOARD. (a) Before the board approves any project   application submitted under this chapter, the department, through   the division with responsibility for compliance matters, shall:                (1)  assess:                      (A)  the compliance history in this state of the   applicant and any affiliate of the applicant with respect to all   applicable requirements; and                      (B)  the compliance issues associated with the   proposed project; and                (2)  provide to the board a written report regarding   the results of the assessments described by Subdivision (1).          (b)  The written report described by Subsection (a)(2) must   be included in the appropriate project file for board and   department review. may be a summary of any concerns or conditions   identified in the compliance assessment.   Full project files shall   be made available to the board upon request.          (c)  The board shall fully document and disclose any   instances in which the board approves a project application despite   any noncompliance associated with the project, applicant, or   affiliate.          (d)  In assessing the compliance of the project, applicant,   or affiliate, the board shall consider any relevant compliance   information in the department's database created under Section   2306.081, including compliance information provided to the   department by the Texas State Affordable Housing Corporation.          SECTION 4.  Section 2306.1112, Government Code, is amended   to read as follows:          Sec. 2306.1112.  EXECUTIVE AWARD AND REVIEW ADVISORY   COMMITTEE. (a) The department shall establish an executive award   and review process advisory committee to make recommendations to   the board regarding funding and allocation decisions.          (b)   Prior to making recommendations to the Board, the   Director shall consult with The advisory committee must include   representatives from the department's underwriting and compliance   functions and from the divisions responsible for administering   federal housing funds provided to the state under the   Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.   Section 12701 et seq.) and for administering low income housing tax   credits.          (c)  The advisory committee is not subject to Chapter 2110.          (d)  expired.          SECTION 5.  Section 2306.1113, Government Code, is amended   by amending subchapter (a-2) to read as follows:          Sec. 2306.1113.  EX PARTE COMMUNICATIONS. (a) During the   period beginning on the date project applications are filed in an   application cycle and ending on the date the board makes a final   decision with respect to the approval of any application in that   cycle, a member of the board may not communicate with the following   persons:                (1)  an applicant or a related party, as defined by   state law, including board rules, and federal law; and                (2)  any person who is:                      (A)  active in the construction, rehabilitation,   ownership, or control of a proposed project, including:                            (i)  a general partner or contractor; and                            (ii)  a principal or affiliate of a general   partner or contractor; or                      (B)  employed as a consultant, lobbyist, or   attorney by an applicant or a related party.          (a-1)  Subject to Subsection (a-2), during the period   beginning on the date project applications are filed in an   application cycle and ending on the date the board makes a final   decision with respect to the approval of any application in that   cycle, an employee of the department may communicate about an   application with the following persons:                (1)  the applicant or a related party, as defined by   state law, including board rules, and federal law; and                (2)  any person who is:                      (A)  active in the construction, rehabilitation,   ownership, or control of the proposed project, including:                            (i)  a general partner or contractor; and                            (ii)  a principal or affiliate of a general   partner or contractor; or                      (B)  employed as a consultant, lobbyist, or   attorney by the applicant or a related party.          (a-2)  A communication under Subsection (a-1) may be oral or   in any written form, including electronic communication through the   Internet, and must satisfy the following conditions:                (1)  the communication must be restricted to technical   or administrative matters directly affecting the application; and                 (2)     the communication may must occur or be received on   the premises of the department during established business hours;   and                ( 3 2 )  a record of the communication must be maintained   and included with the application for purposes of board review and   must contain the following information:                      (A)  the date, time, and means of communication;                      (B)  the names and position titles of the persons   involved in the communication and, if applicable, the person's   relationship to the applicant;                      (C)  the subject matter of the communication; and                      (D)  a summary of any action taken as a result of   the communication.          SECTION 6.  Sections 2306.142 and 2306.143, Government Code,   are repealed.          SECTION 7.  Section 2306.0723, Government Code, is repealed.          SECTION 8.  Subchapter NN, Government Code, is repealed.          SECTION 9.  Section 2306.353, Government Code, is amended by   adding the following subchapters:           (d)     In this section, "credit agreement" and "obligation"   have the meanings assigned by Section 1371.001, Government Code.           (e)     Notwithstanding any other statute, the board may   exercise any of the rights or powers of the governing body of an   issuer under Chapter 1371, Government Code, and may enter into a   credit agreement under that chapter. An obligation issued under   this section is an obligation under Chapter 1371, Government Code,   but is not required to be rated as required by that chapter.          SECTION 10.  Section 2306.6712, Government Code, is amended   by amending subchapter (d) to read as follows:          Sec. 2306.6712.  AMENDMENT OF APPLICATION SUBSEQUENT TO   ALLOCATION BY BOARD. (a) If a proposed modification would   materially alter a development approved for an allocation of a   housing tax credit or other multifamily funding , the department   shall require the applicant to file a formal, written amendment to   the application on a form prescribed by the department.          (b)  The director shall require the department staff   assigned to underwrite applications to evaluate the amendment and   provide an analysis and written recommendation to the board. The   appropriate monitor under Section 2306.6719 shall also provide to   the board an analysis and written recommendation regarding the   amendment.          (c)  The board must vote on whether to approve the amendment.   Th [Text truncated for display. Full text available on Congress.gov.]