H.B. No. 3552
 
 
 
 
AN ACT
  relating to the issuance of private activity bonds and to certain
  home loan programs.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1372.002, Government Code, is amended by
  amending Subsection (a) and adding Subsections (c) and (d) to read
  as follows:
         (a)  For purposes of this chapter, a project is:
               (1)  an eligible facility or facilities that are [is]
  proposed to be financed, in whole or in part, by an issue of
  qualified residential rental project bonds; [or]
               (2)  in connection with an issue of qualified mortgage
  bonds or qualified student loan bonds, the providing of financial
  assistance to qualified mortgagors or students located in all or
  any part of the jurisdiction of the issuer; or
               (3)  an eligible facility that is proposed to be
  financed, in whole or in part, by an issue of bonds other than bonds
  described by Subdivision (1) or (2).
         (c)  For purposes of Subsection (a)(1), an application under
  this chapter may include either the rehabilitation or new
  construction, or both the rehabilitation and new construction, of
  qualified residential rental facilities located at multiple sites
  and with respect to which 51 percent or more of the residential
  units are located:
               (1)  in a county with a population of less than 75,000;
  or
               (2)  in a county in which the median income is less than
  the median income for the state, provided that the units are located
  in that portion of the county that is not included in a metropolitan
  statistical area containing one or more projects that are proposed
  to be financed, in whole or in part, by an issuance of bonds.
         (d)  For purposes of Subsection (c), in an application for a
  reservation, the number of sites may be reduced as needed without
  affecting their status as a project for purposes of the
  application, provided that the final application for a reservation
  contains at least two sites.
         SECTION 2.  Section 1372.0221, Government Code, is amended
  to read as follows:
         Sec. 1372.0221. DEDICATION OF PORTION OF STATE CEILING FOR
  PROFESSIONAL EDUCATORS HOME LOAN PROGRAM.  Until August 7 [1], out
  of that portion of the state ceiling that is available exclusively
  for reservations by the Texas State Affordable Housing Corporation
  [issuers of qualified mortgage bonds] under Section 1372.0223, 54.5
  percent [1372.022, $25 million] shall be allotted each year and
  made available [exclusively] to the corporation [Texas State
  Affordable Housing Corporation] for the purpose of issuing
  qualified mortgage bonds in connection with the professional
  educators home loan program established under Section 2306.562.
         SECTION 3.  Section 1372.0222, Government Code, is amended
  to read as follows:
         Sec. 1372.0222.  DEDICATION OF PORTION OF STATE CEILING FOR
  FIRE FIGHTER AND LAW ENFORCEMENT OR SECURITY OFFICER HOME LOAN
  PROGRAM.  Until August 7 [1], out of that portion of the state
  ceiling that is available exclusively for reservations by the Texas
  State Affordable Housing Corporation [issuers of qualified
  mortgage bonds] under Section 1372.0223, 45.5 percent [1372.022,
  $25 million] shall be allotted each year and made available
  [exclusively] to the corporation [Texas State Affordable Housing
  Corporation] for the purpose of issuing qualified mortgage bonds in
  connection with the fire fighter, law enforcement officer, and
  security officer home loan program established under Section
  2306.5621.
         SECTION 4.  Section 1372.0223, Government Code, is amended
  to read as follows:
         Sec. 1372.0223.  DEDICATION OF PORTION OF STATE CEILING TO
  CERTAIN ISSUERS OF QUALIFIED MORTGAGE BONDS [FOR PROFESSIONAL
  NURSING PROGRAM FACULTY MEMBER HOME LOAN PROGRAM].  Until August 7
  [1], out of that portion of the state ceiling that is available
  exclusively for reservations by issuers of qualified mortgage bonds
  under Section 1372.022:
               (1)  10 percent is[, $5 million shall be allotted each
  year and made] available exclusively to the Texas State Affordable
  Housing Corporation for the purpose of issuing qualified mortgage
  bonds; and
               (2)  56.66 percent is available exclusively to housing
  finance corporations for the purpose of issuing qualified mortgage
  bonds [in connection with the professional nursing program faculty
  member home loan program established under Section 2306.5622].
         SECTION 5.  Section 1372.023(a), Government Code, is amended
  to read as follows:
         (a) Until August 7 [15], of that portion of the state ceiling
  that is available exclusively for reservations by issuers of
  qualified mortgage bonds, 33.34 percent [one-third] is available
  exclusively to the Texas Department of Housing and Community
  Affairs for the purpose of issuing qualified mortgage bonds.
         SECTION 6.  Sections 1372.0231(d), (e), (g), and (i),
  Government Code, are amended to read as follows:
         (d)  Except as provided by Subsection (i), before May [June]
  1, the board shall apportion the amount of the state ceiling set
  aside under Subsection (a)(2) among the uniform state service
  regions according to the percentage of the state's population that
  resides in each of those regions.
         (e)  Until March 1 [May 15] of each year, for each of the
  uniform state service regions containing [Austin,] Dallas [,] or
  Houston, the board shall reserve a total of $15 million of the state
  ceiling set aside for the region under Subsection (d) for:
               (1)  the areas in the region that are located outside of
  a metropolitan statistical area; or
               (2)  projects involving the rehabilitation of a
  qualified residential rental facility or facilities in the region,
  regardless of whether the projects are located inside or outside a
  metropolitan statistical area.
         (g)  On or after May [June] 1, the board may not grant
  available reservations to housing finance corporations described
  by Subsection (a) based on uniform state service regions or any
  segments of those regions.
         (i)  Before May [June] 1, the board shall apportion the
  amount of the state ceiling set aside under Subsection (a)(2) only
  among uniform state service regions with respect to which an issuer
  has submitted an application for a reservation of the state ceiling
  on or before March 1.
         SECTION 7.  Section 1372.0261(a), Government Code, is
  amended to read as follows:
         (a)  In this section, "utilization percentage" means that
  portion of the amount of the state ceiling allocated to a housing
  finance corporation with respect to which the corporation issues
  private activity bonds that result in mortgage loans or mortgage
  credit certificates. A housing finance corporation's utilization
  percentage for an allocation of the state ceiling is the quotient
  of:
               (1)  the amount of the state ceiling:
                     (A)  with respect to which mortgage loans have
  been originated, considering only the original principal balance of
  those loans;
                     (B)  that is used to purchase mortgages or
  mortgage-backed securities; or
                     (C)  that is [the amount of the state ceiling]
  used to issue mortgage credit certificates; divided by
               (2)  the amount of the state ceiling allocated, minus
  any amounts of the state ceiling required for debt service reserve
  funds.
         SECTION 8.  Section 1372.031, Government Code, is amended to
  read as follows:
         Sec. 1372.031.  PRIORITIES FOR RESERVATIONS AMONG CERTAIN
  ISSUERS.  Subject to Sections 1372.0321, [and] 1372.0231, and
  1372.035(c) if, on or before October 20, more than one issuer in a
  category described by Section 1372.022(a)(2), (3), (4), or (6)
  applies for a reservation of the state ceiling for the next program
  year, the board shall grant reservations in that category in the
  order determined by the board by lot.
         SECTION 9.  Section 1372.0321(a-1), Government Code, as
  added by Chapters 330 and 1329, Acts of the 78th Legislature,
  Regular Session, 2003, is reenacted and amended to read as follows:
         (a-1)  In granting reservations to issuers of qualified
  residential rental project issues, the board shall give second
  priority to projects in which 80 [100] percent or more of the
  residential units in the project are:
               (1)  under the restriction that the maximum allowable
  rents are an amount equal to 30 percent of 60 percent of the area
  median family income minus an allowance for utility costs
  authorized under the federal low-income housing tax credit program;
  and
               (2)  reserved for families and individuals earning not
  more than 60 percent of the area median income.
         SECTION 10.  Section 1372.035, Government Code, is amended
  by amending Subsection (b) and adding Subsection (c) to read as
  follows:
         (b)  Except as provided by Sections 1372.031-1372.033 and
  Subsection (c), the board shall grant reservations in the order in
  which the applications for those reservations are received,
  regardless of the amounts of the related bond issues.
         (c)  If, with respect to an application, an issuer receives a
  carryforward designation under Section 1372.061(b), the board
  shall grant a reservation with respect to the issuer's next
  available application on the earlier of the following:
               (1)  the date of receipt of notice from the issuer that
  the application for which the issuer received the carryforward
  designation is being withdrawn; or
               (2)  if the amount of the carryforward is sufficient to
  satisfy fully the issuer's next available application, the date of
  expiration of the period specified by Section 1372.042(a-1).
         SECTION 11.  Section 1372.037(a), Government Code, is
  amended to read as follows:
         (a)  Except as provided by Subsection (b), before August 15
  [September 1] the board may not grant for any single project a
  reservation for that year that is greater than:
               (1)  $25 million, if the issuer is an issuer of
  qualified mortgage bonds, other than the Texas Department of
  Housing and Community Affairs or the Texas State Affordable Housing
  Corporation;
               (2)  $50 million, if the issuer is an issuer of a
  state-voted issue, other than the Texas Higher Education
  Coordinating Board, or $75 million, if the issuer is the Texas
  Higher Education Coordinating Board;
               (3)  the amount to which the Internal Revenue Code
  limits issuers of qualified small issue bonds and enterprise zone
  facility bonds, if the issuer is an issuer of those bonds;
               (4)  the lesser of $15 million or 15 percent of the
  amount set aside for reservation by issuers of qualified
  residential rental project bonds, if the issuer is an issuer of
  those bonds;
               (5)  the amount as prescribed in Sections 1372.033(d),
  (e), and (f), if the issuer is an issuer authorized by Section
  53.47, Education Code, to issue qualified student loan bonds; or
               (6)  $50 million, if the issuer is any other issuer of
  bonds that require an allocation.
         SECTION 12.  Section 1372.070, Government Code, is amended
  to read as follows:
         Sec. 1372.070.  FORM AND CONTENTS OF APPLICATION FOR
  CARRYFORWARD APPLICATION.  An application for a carryforward
  designation must:
               (1)  be on a form prescribed by the board;
               (2)  be signed by a member or officer of the issuer and
  by[:
                     [(A)]  the governor, if the issuer was created to
  act on behalf of this state[; or
                     [(B)     the presiding officer or another authorized
  official of each political subdivision, if the issuer was created
  to act on behalf of one or more political subdivisions of this
  state];
               (3)  state the amount of carryforward sought;
               (4)  describe the project;
               (5)  state which priority classification is applicable
  to the applicant;
               (6)  include evidence satisfactory to the board that
  that priority classification is correct; and
               (7)  contain any other information that the board by
  rule requires.
         SECTION 13.  Sections 2306.553(a) and (b), Government Code,
  are amended to read as follows:
         (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, very low, and
  extremely low income and[,] for persons who are eligible for loans
  [professional educators] under the [professional educators] home
  loan programs [program as] provided by Sections [Section] 2306.562
  and[, for fire fighters, corrections officers, county jailers,
  public security officers, and peace officers under the fire
  fighter, law enforcement officer, and security officer home loan
  program as provided by Section] 2306.5621[, and for professional
  nursing program faculty members under the professional nursing
  program faculty member home loan program as provided by Section
  2306.5622]. 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, very low, and
  extremely low income and[,] to persons who are eligible for loans
  under the home loan programs provided by Sections 2306.562 and
  2306.5621 [professional educators under the professional educators
  home loan program, to fire fighters, corrections officers, county
  jailers, public security officers, and peace officers under the
  fire fighter, law enforcement officer, and security officer home
  loan program, and to professional nursing program faculty members
  under the professional nursing program faculty member home loan
  program]. 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
  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.
         SECTION 14.  Sections 2306.562(a), (b), and (c), Government
  Code, are amended to read as follows:
         (a)  In this section:
               (1)  "Allied health program faculty member" means a
  full-time member of the faculty of an undergraduate or graduate
  allied health program of a public or private institution of higher
  education in this state.
               (1-a)  "Graduate allied health program" means a
  postbaccalaureate certificate or master's or doctoral degree
  program in an allied health profession that is accredited by an
  accrediting entity recognized by the United States Department of
  Education.
               (1-b)  "Graduate professional nursing program" and
  "undergraduate professional nursing program" have the meanings
  assigned by Section 54.221, Education Code.
               (2)  "Home" means a dwelling in this state in which a
  professional educator intends to reside as the professional
  educator's principal residence.
               (3) [(2)]  "Mortgage lender" has the meaning assigned
  by Section 2306.004.
               (4) [(3)]  "Professional educator" means a classroom
  teacher, full-time paid teacher's aide, full-time librarian,
  full-time counselor certified under Subchapter B, Chapter 21,
  Education Code, [or] full-time school nurse, or allied health or
  professional nursing program faculty member.
               (5)  "Professional nursing program faculty member" 
  means a full-time member of the faculty of either an undergraduate
  or graduate professional nursing program.
               (6) [(4)]  "Program" means the professional educators
  home loan program.
               (7)  "Undergraduate allied health program" means an
  undergraduate degree or certificate program that:
                     (A)  prepares students for licensure,
  certification, or registration in an allied health profession; and
                     (B)  is accredited by an accrediting entity
  recognized by the United States Department of Education.
         (b)  The corporation shall establish a program to provide
  low-interest home mortgage loans to eligible professional
  educators whose income does not exceed the greater of:
               (1)  115 percent of area median family income, adjusted
  for family size; or
               (2)  the maximum amount permitted by Section 143(f),
  Internal Revenue Code of 1986[, with low-interest home mortgage
  loans].
         (c)  To be eligible for a loan under this section, a
  professional educator must:
               (1)  reside in this state on the application date; and
               (2)  be employed by a school district or be an allied
  health or professional nursing program faculty member in this state
  on the application date.
         SECTION 15.  Section 2306.5622, Government Code, is
  repealed.
         SECTION 16.  Section 1372.0261, Government Code, as amended
  by this Act, applies only to a reservation of state ceiling granted
  on or after January 1, 2008.
         SECTION 17.  This Act takes effect September 1, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3552 was passed by the House on May 8,
  2007, by the following vote:  Yeas 146, Nays 0, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 3552 on May 24, 2007, by the following vote:  Yeas 143, Nays 0,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 3552 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