H.B. No. 1637
 
 
 
 
AN ACT
  relating to the operation and administration of the Texas
  First-Time Homebuyer Program by the Texas Department of Housing and
  Community Affairs and to certain down payment assistance under that
  program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 2306, Government Code, is amended by
  adding Subchapter MM to read as follows:
  SUBCHAPTER MM. TEXAS FIRST-TIME HOMEBUYER PROGRAM
         Sec. 2306.1071.  DEFINITIONS. In this subchapter:
               (1)  "First-time homebuyer" means a person who:
                     (A)  resides in this state on the date on which an
  application is filed; and
                     (B)  has not owned a home during the three years
  preceding the date on which an application under this subchapter 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)  "Mortgage lender" has the meaning assigned by
  Section 2306.004.
               (4)  "Program" means the Texas First-Time Homebuyer
  Program.
         Sec. 2306.1072.  TEXAS FIRST-TIME HOMEBUYER PROGRAM. (a)  
  The Texas First-Time Homebuyer Program shall facilitate the
  origination of single-family mortgage loans for eligible
  first-time homebuyers.
         (b)  The program may include down payment and closing cost
  assistance.
         Sec. 2306.1073.  ADMINISTRATION OF PROGRAM; RULES. (a)  The
  department shall administer the program.
         (b) The board 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 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.
         Sec. 2306.1074.  ELIGIBILITY. (a) To be eligible for a
  mortgage loan under this subchapter, a homebuyer must:
               (1)  qualify as a first-time homebuyer under this
  subchapter;
               (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 department.
         (b)  To be eligible for a loan under this subchapter to
  assist a homebuyer with down payment and closing costs, a homebuyer
  must:
               (1)  qualify as a first-time homebuyer under this
  subchapter;
               (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 department.
         (c)  The department 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.
         Sec. 2306.1075.  FEES. The board of directors of the
  department may set and collect from each applicant any fees the
  board considers reasonable and necessary to cover the expenses of
  administering the program.
         Sec. 2306.1076.  FUNDING. (a) The department 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.
         (b)  In addition to funds set aside for the program under
  Section 1372.023, the department may solicit and accept funding for
  the program from gifts and grants for the purposes of this section.
         SECTION 2.  (a) The Texas Department of Housing and
  Community Affairs shall adopt the rules required by Section
  2306.1073, Government Code, as added by this Act, not later than
  December 1, 2007.
         (b)  The changes in law made by this Act apply only to an
  application for assistance from the Texas First-Time Homebuyer
  Program that is filed on or after January 1, 2008.
         SECTION 3.  This Act takes effect September 1, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1637 was passed by the House on May
  11, 2007, by the following vote:  Yeas 144, Nays 0, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 1637 on May 25, 2007, by the following vote:  Yeas 138, Nays 0,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 1637 was passed by the Senate, with
  amendments, on May 22, 2007, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor