S.B. No. 1185
 
 
 
 
AN ACT
  relating to certain low-interest home loan programs offered by the
  state.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  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 2.  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 3.  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 4.  Subsection (a), Section 1372.023, 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 5.  Subsection (a), Section 1372.037, 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 6.  Subsections (a) and (b), Section 2306.553,
  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 7.  Subsections (a), (b), and (c), Section 2306.562,
  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 8.  Section 2306.5622, Government Code, is repealed.
         SECTION 9.  The Texas State Affordable Housing Corporation
  shall aggressively pursue funding for the professional educators
  home loan program required by Section 2306.562, Government Code, as
  amended by this Act.
         SECTION 10.  This Act takes effect September 1, 2007.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1185 passed the Senate on
  May 3, 2007, by the following vote: Yeas 31, Nays 0; and that the
  Senate concurred in House amendment on May 25, 2007, by the
  following vote: Yeas 30, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1185 passed the House, with
  amendment, on May 23, 2007, by the following vote: Yeas 144,
  Nays 0, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor