H.B. No. 1818
 
 
 
 
AN ACT
  relating to the continuation and functions of the Texas State
  Affordable Housing Corporation and to the appointment of
  commissioners of a municipal housing authority; providing
  penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2306.5521, Government Code, is amended
  to read as follows:
         Sec. 2306.5521.  SUNSET PROVISION.  The Texas State
  Affordable Housing Corporation is subject to Chapter 325 (Texas
  Sunset Act). Unless continued in existence as provided by that
  chapter, the corporation is abolished and this subchapter expires
  September 1, 2023 [2011].
         SECTION 2.  Sections 2306.554(a) and (b), Government Code,
  are amended to read as follows:
         (a)  The board of directors of the corporation consists of
  five members appointed by the governor. One member must represent
  the interests of individuals and families served by the
  corporation's single-family mortgage loan programs, one member
  must represent nonprofit housing organizations, and the remaining
  three members must [who] represent one or more [any] of the
  following areas:
               (1)  state or federal savings banks or savings and loan
  associations;
               (2)  community banks with assets of $200 million or
  less;
               (3)  large metropolitan banks with assets of more than
  $1 billion;
               (4)  asset management companies;
               (5)  mortgage servicing companies;
               (6)  builders;
               (7)  real estate developers;
               (8)  real estate brokers;
               (9)  community or economic development organizations;
               (10)  private mortgage companies;
               (11)  nonprofit housing development companies;
               (12)  attorneys;
               (13)  investment bankers;
               (14)  underwriters;
               (15)  private mortgage insurance companies;
               (16)  appraisers;
               (17)  property management companies;
               (18)  financial advisors;
               (19)  nonprofit foundations;
               (20)  financial advisors; or
               (21)  any other area of expertise that the governor
  finds necessary for the successful operation of the corporation.
         (b)  The governor shall designate a member of the
  corporation's board of directors as the presiding officer of the
  [corporation's] board of directors to serve in that capacity at the
  pleasure of the governor [from the members].
         SECTION 3.  Section 2306.5543(b), Government Code, is
  amended to read as follows:
         (b)  The training program must provide the person with
  information regarding:
               (1)  the legislation that created the corporation [and
  the corporation's board of directors];
               (2)  the programs, functions, rules, and budget of 
  [operated by] the corporation;
               (3)  [the role and functions of the corporation;
               [(4)     the rules of the corporation with an emphasis on
  the rules that relate to disciplinary and investigatory authority;
               [(5)  the current budget for the corporation;
               [(6)] the results of the most recent formal audit of the
  corporation;
               (4) [(7)]  the requirements of laws relating to[:
                     [(A)  the] open meetings, [law, Chapter 551;
                     [(B)  the] public information, [law, Chapter 552;
                     [(C)  the] administrative procedure, and
  conflicts of interest [law, Chapter 2001; and
                     [(D)     other laws relating to public officials,
  including conflict-of-interest laws]; and
               (5) [(8)]  any applicable ethics policies adopted by
  the corporation or the Texas Ethics Commission.
         SECTION 4.  Section 2306.5545(b), Government Code, is
  amended to read as follows:
         (b)  A person may not be a member of the corporation's board
  of directors and may not be a corporation employee employed in a
  "bona fide executive, administrative, or professional capacity,"
  as that phrase is used for purposes of establishing an exemption to
  the overtime provisions of the federal Fair Labor Standards Act of
  1938 (29 U.S.C. Section 201 et seq.), and its subsequent
  amendments, if:
               (1)  the person is an officer, employee, or paid
  consultant of a Texas trade association in the field of banking,
  mortgage lending, real estate, housing development, or housing
  construction; or
               (2)  the person's spouse is an officer, manager, or paid
  consultant of a Texas trade association in the field of banking,
  mortgage lending, real estate, housing development, or housing
  construction.
         SECTION 5.  Subchapter Y, Chapter 2306, Government Code, is
  amended by adding Section 2306.5549 to read as follows:
         Sec. 2306.5549.  MEETINGS OF THE CORPORATION'S BOARD. (a)
  The corporation's board may hold meetings when called by the
  presiding officer, the president, or three of the members.
         (b)  The corporation's board shall keep minutes and complete
  transcripts of its meetings. The corporation shall post the
  transcripts on its Internet website and shall otherwise maintain
  all accounts, minutes, and other records related to the meetings.
         (c)  All materials provided to the corporation's board that
  are relevant to a matter proposed for discussion at a meeting of
  that board must be posted on the corporation's Internet website not
  later than the third day before the date of the meeting.
         (d)  Any materials made available to the corporation's board
  by the corporation at a meeting of that board must be made available
  in hard-copy format to the members of the public in attendance at
  the meeting.
         (e)  The corporation's board shall conduct its meetings in
  accordance with Chapter 551, except as otherwise required by this
  chapter.
         (f)  For each item on the agenda at a meeting of the
  corporation's board, the corporation's board shall provide for
  public comment after the presentation made by corporation staff and
  the motions made by the corporation's board on that topic.
         (g)  The corporation's board shall adopt rules that give the
  public a reasonable amount of time for testimony at meetings.
         SECTION 6.  Subchapter Y, Chapter 2306, Government Code, is
  amended by adding Section 2306.5553 to read as follows:
         Sec. 2306.5553.  HISTORICALLY UNDERUTILIZED BUSINESSES. (a)
  The corporation shall make a good faith effort to provide
  contracting opportunities for, and to increase contract awards to,
  historically underutilized businesses for all services that may be
  required by the corporation, including professional and consulting
  services and commodities purchases.
         (b)  In accordance with Subchapter B, Chapter 20, Title 34,
  Texas Administrative Code, a good faith effort under Subsection (a)
  must include awarding historically underutilized businesses at
  least a portion of the total contract value of all contracts the
  corporation expects to award in a state fiscal year.
         (c)  The corporation may achieve annual procurement goals
  under this section by contracting directly with historically
  underutilized businesses or by contracting indirectly with those
  businesses through the provision of subcontracting opportunities.
         SECTION 7.  Section 2306.559(d), Government Code, is amended
  to read as follows:
         (d)  The report must include:
               (1)  a statement of support, revenue, and expenses and
  change in fund balances;
               (2)  a statement of functional expenses; [and]
               (3)  balance sheets for all funds;
               (4)  the number, amount, and purpose of private gifts,
  grants, donations, or other funds applied for and received;
               (5)  the number, amount, and purpose of loans provided
  to affordable housing developers, regardless of whether the
  corporation provides those loans directly to the developers or
  administers the loans from another source;
               (6)  the amount and source of funds deposited into any
  fund created by the corporation for the purpose of providing grants
  and the number, amount, and purpose of any grants provided; and
               (7)  the total amount of annual revenue generated by
  the corporation in excess of its expenditures.
         SECTION 8.  Subchapter Y, Chapter 2306, Government Code, is
  amended by adding Section 2306.5671 to read as follows:
         Sec. 2306.5671.  COMPLIANCE WITH TERMS OF CERTAIN CONTRACTS
  OR AGREEMENTS.  A compliance contract or agreement between the
  corporation and a housing sponsor that receives bond financing by
  or through the corporation for the purpose of providing affordable
  multifamily housing must contain a provision stating that if the
  housing sponsor fails to comply with the terms of the contract or
  agreement, the corporation may, at a minimum and as appropriate:
               (1)  assess penalties;
               (2)  remove the manager of the affected property and
  select a new manager;
               (3)  withdraw reserve funds to make needed repairs and
  replacements to the property; or
               (4)  appoint the corporation as a receiver to protect
  and operate the property.
         SECTION 9.  Section 2306.568, Government Code, is amended to
  read as follows:
         Sec. 2306.568.  RECORD OF COMPLAINTS.  (a)  The corporation
  shall maintain a system to promptly and efficiently act on
  complaints [file on each written complaint] filed with the
  corporation. The corporation shall maintain information about
  parties to the complaint, [file must include:
               [(1)  the name of the person who filed the complaint;
               [(2)     the date the complaint is received by the
  corporation;
               [(3)]  the subject matter of the complaint,[;
               [(4)     the name of each person contacted in relation to
  the complaint;
               [(5)]  a summary of the results of the review or
  investigation of the complaint, and its disposition[; and
               [(6)     an explanation of the reason the file was closed,
  if the corporation closed the file without taking action other than
  to investigate the complaint].
         (b)  The corporation shall make information available
  describing its [provide to the person filing the complaint and to
  each person who is a subject of the complaint a copy of the
  corporation's policies and] procedures for [relating to] complaint
  investigation and resolution.
         (c)  The corporation[, at least quarterly until final
  disposition of the complaint,] shall periodically notify the
  [person filing the] complaint parties [and each person who is a
  subject of the complaint] of the status of the complaint until final
  disposition [investigation unless the notice would jeopardize an
  undercover investigation].
         SECTION 10.  Section 392.0331, Local Government Code, is
  amended by amending Subsections (b) and (f) and adding Subsections
  (b-1) and (f-1) to read as follows:
         (b)  Except as provided by Subsection (b-1), in [In]
  appointing commissioners under Section 392.031, a municipality
  with a municipal housing authority composed of five commissioners
  shall appoint at least one commissioner to the authority who is a
  tenant of a public housing project over which the authority has
  jurisdiction. In appointing commissioners under Section 392.031, a
  municipality with a municipal housing authority composed of seven
  or more commissioners shall appoint at least two commissioners to
  the authority who are tenants of a public housing project over which
  the authority has jurisdiction.
         (b-1)  The presiding officer of the governing body of a
  municipality that has a municipal housing authority in which the
  total number of units is 150
  or fewer is not required to appoint a
  tenant to the position of commissioner as otherwise required by
  Subsection (b) if the presiding officer has provided timely notice
  of a vacancy in the position to all eligible tenants and is unable
  to fill the position with an eligible tenant before the 60th day
  after the date the position becomes vacant.
         (f)  Except as provided by Subsection (f-1), a [A]
  commissioner appointed under this section may not serve more than
  two consecutive two-year terms.
         (f-1)  Subsection (f) does not apply to a municipality that
  has a municipal housing authority in which the total number of units
  is 150 or fewer.
         SECTION 11.  Section 2306.5671, Government Code, as added by
  this Act, does not affect the terms of a compliance contract or
  agreement entered into before the effective date of this Act,
  except that if the contract or agreement is renewed, modified, or
  extended on or after the effective date of this Act, Section
  2306.5671 applies to the contract or agreement beginning on the
  date of renewal, modification, or extension.
         SECTION 12.  The change in law made by this Act relating to
  the qualifications for membership on the board of directors of the
  Texas State Affordable Housing Corporation does not affect the
  eligibility of a member of the board serving immediately before the
  effective date of this Act to continue to serve on the board for the
  term to which the member was appointed. Not later than February 1,
  2015, the governor shall appoint members of the board as necessary
  to ensure that the composition of the board complies with Section
  2306.554(a), Government Code, as amended by this Act.
         SECTION 13.  This Act takes effect September 1, 2011.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1818 was passed by the House on May
  10, 2011, by the following vote:  Yeas 144, Nays 0, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 1818 on May 23, 2011, by the following vote:  Yeas 144, Nays 1,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 1818 was passed by the Senate, with
  amendments, on May 20, 2011, by the following vote:  Yeas 30, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor