83R10483 JAM-F
	By: Lucio	S.B. No. 1551

	A BILL TO BE ENTITLED
	AN ACT
	relating to the provision of affordable housing and other services
	in the Lower Rio Grande Valley.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter D, Chapter 301, Labor Code, is
	amended by adding Section 301.070 to read as follows:
	Sec. 301.070.  LOCAL HIRING PROGRAM IN LOWER RIO GRANDE
	VALLEY. (a)  This section applies only to employment arising in
	connection with a federal or state contract or grant in relation to
	a public construction project in the Lower Rio Grande Valley.
	(b)  The commission shall develop, promulgate, monitor, and
	enforce regulations necessary to ensure that, to the greatest
	extent feasible, and consistent with existing federal, state, and
	local laws and regulations, opportunities for training and
	employment are given to persons of low and very low income who
	reside in the census tract, metropolitan area, or county in which
	the project described by Subsection (a) is located.
	(c)  The commission shall use existing services or
	procedures to provide job information services, job referral, and
	reporting and tracking to support the goals and activities provided
	under this section.
	(d)  The commission shall establish uniform procedures for
	state agencies to use and provisions to include in contracts and
	grant agreements to implement this section.  The commission shall
	establish uniform penalties and sanctions to be applied to secure
	the hiring and contracting outcomes required under this section.
	(e)  The commission may establish incentives to be awarded to
	contractors who comply with the hiring and contracting requirements
	under this section.
	(f)  The commission shall give priority to establishing
	requirements that provide that:
	(1)  not less than 30 percent of the persons employed to
	carry out a project are persons of low and very low income residing
	within the smallest geographic service area in which the project is
	located; and
	(2)  not less than 15 percent of contracts or
	subcontracts are awarded to business concerns that provide economic
	opportunities for persons of low and very low income who reside in
	the area in which the project is located.
	(g)  In this section, "a business concern that provides
	economic opportunities" means a business concern that meets
	criteria established by the commission.
	SECTION 2.  Subtitle C, Title 12, Local Government Code, is
	amended by adding Chapter 394A to read as follows:
	CHAPTER 394A. LOWER RIO GRANDE VALLEY COLONIA AND REGIONAL
	HOUSING DEVELOPMENT INITIATIVE
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 394A.001.  DEFINITIONS. In this chapter:
	(1)  "Authority" means the Land Use, Colonia, and
	Housing Authority established under Section 394A.151.
	(2)  "Board" means the board of directors of the
	authority.
	(3)  "Council" means the Lower Rio Grande Valley
	Development Council.
	(4)  "Development district" means an enhanced urban
	residential development district established under Subchapter F.
	(5)  "District" means a colonia improvement district
	established under Subchapter E.
	Sec. 394A.002.  APPLICABILITY. This chapter applies only to
	Cameron, Hidalgo, and Willacy Counties and the Lower Rio Grande
	Valley Development Council.
	SUBCHAPTER B. POWERS AND DUTIES OF COUNCIL
	Sec. 394A.051.  POWERS AND DUTIES OF COUNCIL. In
	administering this chapter, the council shall:
	(1)  employ staff to carry out housing planning and
	program contracting activities;
	(2)  provide for the maximum feasible participation of
	persons of low, very low, and extremely low income and residents of
	colonias, colonia improvement districts, and enhanced urban
	residential development districts in the programs established
	under this chapter;
	(3)  utilize nonprofit housing providers located
	within the region to carry out housing activities unless the
	authority makes a determination through a competitive procurement
	process that:
	(A)  nonprofit housing providers in the region
	cannot provide the services; or
	(B)  the cost of services would be materially in
	excess of that of other providers;
	(4)  prepare a regional analysis of impediments to fair
	housing in a manner consistent with the requirements of the United
	States Department of Housing and Urban Development and:
	(A)  adopt plans, administer programs, and expend
	resources in a manner that addresses the issues identified in the
	analysis; and
	(B)  provide an annual statement on its website
	detailing the progress made implementing action steps to overcome
	the impediments identified in the analysis;
	(5)  provide information to state and federal agencies,
	as needed;
	(6)  maintain on its website a list of associations
	representing low-income persons and colonias;
	(7)  maintain and post on its website all transcripts,
	accounts, minutes, and other records related to the meetings of the
	authority; and
	(8)  adopt and implement a local and regional hiring
	plan that is consistent with:
	(A)  Section 394A.057;
	(B)  Section 301.070, Labor Code; and
	(C)  standards and regulations adopted by the
	United States Department of Housing and Urban Development and the
	General Land Office.
	Sec. 394A.052.  HOUSING AND COMMUNITY DEVELOPMENT INVENTORY
	AND MARKET ASSESSMENT. (a) Every five years, the council shall
	prepare for review and approval by the authority a regional
	assessment of community development conditions in colonias that
	includes an assessment of public services and facilities and
	housing availability, affordability, conditions, needs, and market
	demand.
	(b)  To determine housing needs under Subsection (a), the
	council shall use the methodology established by the United States
	Department of Housing and Urban Development to assess worst-case
	housing needs of homeowners and renters.
	Sec. 394A.053.  AFFORDABLE HOUSING PLAN. (a) Annually the
	council shall develop for review and approval by the authority a
	plan to expend resources made available to the council under this
	chapter for owner and renter occupied housing.
	(b)  The council's housing program allocations, housing
	policies, and community development policies impacting housing
	shall be consistent with those necessary to prioritize assistance
	to worst-case housing needs of homeowners and renters identified
	through the assessment conducted under Section 394A.052.
	Sec. 394A.054.  ADMINISTRATION OF FUNDS. (a)  In
	administering funds under this chapter, the council shall:
	(1)  expend no more than eight percent of available
	funds for program administration purposes;
	(2)  ensure that administrative expenses are
	consistent with any requirements or restrictions imposed by a grant
	or funding source;
	(3)  expend funds in a manner that benefits households
	of low, very low, and extremely low income at levels proportionate
	to their percentage of households in the region that have
	worst-case housing needs;
	(4)  ensure that programs are efficiently and promptly
	administered; and
	(5)  allocate money in a manner that is consistent with
	an affordable housing plan adopted under Section 394A.053.
	(b)  To ensure efficient implementation of the programs
	provided under this chapter, a state agency that transfers funds to
	the council may:
	(1)  establish expenditure schedules for money
	provided to the council under this chapter;
	(2)  reclaim funds that are not spent in a manner
	consistent with a schedule established under Subdivision (1); and
	(3)  redistribute funds reclaimed under Subdivision
	(2) to support affordable housing in the region in a manner that is
	consistent with this chapter.
	Sec. 394A.055.  COOPERATION WITH COLONIA OMBUDSPERSONS. (a)
	The council shall enter into an agreement with the secretary of
	state to assign colonia ombudspersons currently working in the
	region to cooperate with the council to carry out the purposes,
	activities, and plans established in this chapter.
	(b)  The colonia ombudspersons shall support the council in
	carrying out this chapter by producing, updating, and maintaining
	an accurate publicly available database of colonias that documents
	the availability, conditions, and adequacy of housing and public
	services in those colonias, including streetlights, storm
	drainage, garbage collection, public transportation, roads,
	sidewalks, distance to the schools that serve the colonia, commute
	times for students to those schools, and distance to essential
	services, including hospitals and grocery stores.
	Sec. 394A.056.  MODEL SUBDIVISION RULES; STUDY,
	MODIFICATION, AND ENFORCEMENT. (a)  In conjunction with the
	colonia ombudspersons, the council shall review ongoing compliance
	with existing model subdivision rules in colonias and new
	subdivisions and survey the effectiveness of existing model
	subdivision rules by examining health and safety conditions in
	subdivisions developed under existing rules.
	(b)  Based on the review conducted under Subsection (a), the
	council shall recommend to the counties in its jurisdiction any
	necessary changes to model subdivision rules needed to:
	(1)  protect the health, safety, and financial
	condition of the residents of affected subdivisions and colonias;
	and
	(2)  ensure that colonias are provided infrastructure
	that will facilitate their annexation into adjacent incorporated
	cities.
	(c)  The council shall determine and recommend to a county
	commissioners court any necessary additional public improvements
	to the model subdivision rules not currently required in order to
	provide essential public safety amenities, including sidewalks,
	streetlights, safe roads, access to public transportation and
	schools, and proper interconnection with transportation systems.
	(d)  The council shall investigate issues of noncompliance
	with the model subdivision rules, refer noncompliance issues to the
	appropriate county attorney, and consider initiating enforcement
	actions.
	(e)  On receipt of a petition filed in a manner prescribed by
	the council and signed by residents comprising five percent of the
	total households residing in a colonia, the council, with the
	approval of the authority, may initiate a legal action on behalf of
	residents of the colonia to enforce model subdivision rules by
	suing the developer of the colonia for a violation of the rules.
	(f)  The council may utilize available funds and apply for
	grants and other funding sources to support the cost of dedicated
	personnel within the county attorney's office to enforce model
	subdivision rules.
	Sec. 394A.057.  REGIONAL HIRING PLAN; ADVISORY COMMITTEE.
	(a)  The council, with the approval of the authority, shall
	establish a regional hiring plan that complies with Section
	301.070, Labor Code. The plan must provide for outreach to workers
	and qualified businesses, public information, job training
	activities, compliance certification, and reporting requirements
	for hiring for projects using financial assistance provided by the
	council.
	(b)  Reporting requirements under the plan must provide for
	monthly reports which detail for each grant or contract the number
	of workers hired and retained, the number of hours worked, and the
	amount of gross wages paid.
	(c)  The council shall establish a monitoring and advisory
	committee to review reports submitted under this section. The
	committee shall advise the council and the authority regarding the
	effectiveness of the plan and the plan's compliance with Section
	301.070, Labor Code.
	SUBCHAPTER C. FINANCING OF PROGRAMS
	Sec. 394A.101.  COMMUNITY DEVELOPMENT BLOCK GRANT COLONIA
	SET-ASIDE. The Department of Agriculture shall transfer to the
	council each year a portion of the community development block
	grant allocation received from the United States Department of
	Housing and Urban Development that is required under federal law to
	be used in colonias.  The amount transferred shall be calculated
	based on Cameron, Hidalgo, and Willacy Counties' pro rata share of
	the number of colonia residents in this state as determined by the
	secretary of state.  The council shall provide reports and maintain
	records as required by the Department of Agriculture for purposes
	of accounting, compliance, and reporting to the United States
	Department of Housing and Urban Development. The Department of
	Agriculture shall transfer a proportionate share of the state's
	community development block grant allocation of administrative
	funds to the council to carry out activities under this chapter.
	Sec. 394A.102.  TRANSPORTATION AND PUBLIC SAFETY RESOURCES.
	The Texas Department of Transportation and the Texas Department of
	Public Safety shall cooperate with the council to identify funding
	resources and prioritize existing regional funding for a colonia
	public safety program.
	Sec. 394A.103.  SETTLEMENT FUNDS FROM COLONIA ENFORCEMENT
	LITIGATION. The attorney general shall transfer to the council for
	use in carrying out activities authorized under this chapter funds
	in excess of attorney's fees secured through litigation related to
	colonias and model subdivision rules in cases arising in Cameron,
	Hidalgo, and Willacy Counties.
	Sec. 394A.104.  OTHER FUNDS. The council may apply for
	grants and use other funds available to it to carry out the purposes
	of this chapter.
	SUBCHAPTER D. LAND USE, COLONIA, AND HOUSING AUTHORITY
	Sec. 394A.151.  LAND USE, COLONIA, AND HOUSING AUTHORITY.
	The council shall establish a Land Use, Colonia, and Housing
	Authority.
	Sec. 394A.152.  POWERS AND DUTIES OF AUTHORITY. The
	authority shall:
	(1)  review and approve the housing and community
	development inventory and market assessment developed under
	Section 394A.052;
	(2)  review and approve the affordable housing plan
	developed under Section 394A.053;
	(3)  review and approve the regional low-income housing
	tax credit enhancements provided under Section 2306.67251,
	Government Code;
	(4)  cooperate with existing local housing finance
	corporations;
	(5)  approve the establishment of colonia improvement
	districts under Subchapter E;
	(6)  approve colonia improvement district plans;
	(7)  assess the effectiveness of and make
	recommendations for the model subdivision rules;
	(8)  approve enhanced urban residential development
	districts and related incentives;
	(9)  oversee the colonia covenant enactment and
	enforcement program;
	(10)  monitor and advise the council on all activities
	under the authority's jurisdiction;
	(11)  develop a plan for the allocation of resources
	provided under Section 394A.102; and
	(12)  establish a citizen participation process
	designed to secure effective involvement of the intended
	beneficiaries of the activities, funds, programs, and policies
	established by or administered under this chapter.
	Sec. 394A.153.  BOARD; QUALIFICATIONS OF MEMBERS. (a) The
	authority is governed by a board appointed by the council.
	(b)  The council shall appoint to the board from each county:
	(1)  the county judge;
	(2)  the mayor of the most populous municipality;
	(3)  an elected official from a municipality not
	described by Subdivision (2);
	(4)  a county director of planning;
	(5)  a resident of a colonia;
	(6)  a representative of a nonprofit organization
	representing colonia residents; and
	(7)  a person of extremely low or very low income living
	in an incorporated area.
	(c)  At least one member selected under Subsection (b)(3)
	must be from a municipality with a population of less than 5,000.
	(d)  The council shall establish rules and procedures to
	prevent conflicts of interest on the part of members.  A person may
	not be a member of the board if the person or the person's spouse:
	(1)  is employed by or participates in the management
	of a business entity or other organization regulated by or
	receiving money from the authority;
	(2)  owns or controls, directly or indirectly, more
	than a 10 percent interest in a business entity or other
	organization regulated by or receiving money from the authority; or
	(3)  uses or receives a substantial amount of tangible
	goods, services, or money from the authority other than
	compensation or reimbursement authorized by law for board
	membership, attendance, or expenses.
	Sec. 394A.154.  TERMS OF MEMBERS. Members appointed under
	Sections 394A.153(b)(1)-(4) are eligible to serve as long as the
	member holds the office or position which qualified them for the
	appointment. All other members serve staggered three-year terms
	with the terms of three members expiring each year.
	Sec. 394A.155.  MEETINGS OF AUTHORITY. (a)  The authority's
	internal auditor, fraud prevention coordinator, or ethics advisor
	may meet in an executive session of the board to discuss issues
	related to fraud, waste, or abuse.
	(b)  Meetings of the authority are subject to the open
	meetings law, Chapter 551, Government Code. Authority board members
	shall receive training in the requirements of that chapter.
	(c)  The authority:
	(1)  may hold meetings when called by the presiding
	officer or seven of the members;
	(2)  shall keep minutes and complete transcripts of
	meetings;
	(3)  shall post on the council's website not later than
	the third day before the date of a board meeting all materials
	provided to the board that are relevant to a matter proposed for
	discussion at the meeting;
	(4)  shall make available in hard copy format to the
	members of the public in attendance at the meeting any materials
	provided to the board by the council at a board meeting;
	(5)  shall provide for public comment for each item on
	the board's agenda at the meeting after the presentation made by
	council staff and the motions made by the board on that topic; and
	(6)  shall adopt rules that give the public a
	reasonable amount of time for testimony at meetings.
	Sec. 394A.156.  ADOPTION OF AFFORDABLE HOUSING PLAN; HEARING
	REQUIRED. (a) Prior to adopting the plan developed under Section
	394A.053, the authority shall hold a public hearing in each county
	in an area that is convenient and proximate to large populations of
	colonia residents.
	(b)  Hearings shall be held not earlier than 5:30 p.m. or
	later than 8:00 p.m.
	(c)  The authority shall mail a notice of the hearing in
	English and Spanish to any association listed on the council
	website that represents low-income persons and colonias.
	(d)  Professional simultaneous translation from English to
	Spanish and from Spanish to English shall be provided at the
	hearing.
	(e)  No fewer than nine authority board members must be
	present at each public hearing.
	Sec. 394A.157.  ENACTMENT OF RESTRICTIVE COVENANTS. (a)
	Notwithstanding any other law, on petition of 51 percent of the
	residents of a colonia the authority may enact a restrictive
	covenant in the colonia that provides for:
	(1)  residential or commercial building standards or
	codes;
	(2)  maximum impervious cover on a lot;
	(3)  permitted land uses;
	(4)  non-permitted nuisances;
	(5)  a program and fee for solid waste services to be
	paid by residents and property owners; or
	(6)  a program and fee for street lighting to be paid by
	residents and property owners.
	(b)  Before enacting a restrictive covenant, the authority
	shall:
	(1)  hold a public hearing in the manner provided by
	this section; and
	(2)  determine the extent to which existing conditions
	to be addressed by the proposed covenant negatively affect the
	health, safety, and real property values of the residents and
	property owners of the colonia.
	(c)  The hearing required under Subsection (b)(1) shall be
	held in the colonia if suitable meeting facilities are available
	or, if suitable meeting facilities are not available, in the
	closest suitable and available public facility.
	(d)  The hearing must be held not earlier than 5:30 p.m. or
	later than 8:00 p.m.
	(e)  Not earlier than the 10th day before the hearing date,
	the authority shall:
	(1)  post at the entrance of the colonia in English and
	Spanish notice of the hearing on a sign that is not less than eight
	square feet; and
	(2)  mail to each resident and property owner in the
	colonia by regular mail a notice of the hearing in English and
	Spanish.
	(f)  Professional simultaneous translation from English to
	Spanish and from Spanish to English must be provided at the hearing.
	(g)  No fewer than nine authority board members must be
	present at the public hearing.
	(h)  A restrictive covenant enacted under this section may be
	enforced by a resident or a property owner of the colonia or by the
	council with approval of the authority in response to an
	enforcement petition as provided by Subsection (i).
	(i)  The authority, on receipt of a petition filed in a
	manner prescribed by the council and signed by five percent of the
	residents in a colonia, may initiate a legal action on behalf of
	residents of a colonia to enforce restrictive covenants by suing
	for a violation of a covenant recorded in a plan, plat, or replat or
	a covenant enacted under this section.
	(j)  The council, with approval of the authority, shall
	develop rules and guidelines for the petition and public hearing
	process required under this section.
	SUBCHAPTER E.  COLONIA IMPROVEMENT DISTRICTS
	Sec. 394A.201.  COLONIA IMPROVEMENT DISTRICTS. (a)  The
	authority may establish a colonia improvement district only on
	receipt of a petition, in a manner prescribed by the authority, that
	represents not less than 51 percent of the households residing in
	the proposed district.
	(b)  A district shall facilitate comprehensive planning for
	housing, community development needs, public infrastructure, and
	public services in colonias.
	(c)  A district shall be staffed by the council and may plan
	and administer programs in colonias.
	(d)  The council may use resources available to it under this
	chapter to assist in the creation, administration, and management
	of a district.
	(e)  A district may be comprised of one or more contiguous or
	noncontiguous colonias located in an unincorporated area of a
	county.
	Sec. 394A.202.  DISTRICT BOARD. On designation of an area as
	a district, the authority shall establish a process for the
	election by residents of a district board composed of five
	residents for each 1,000 households located within the district.
	Actions of the authority in carrying out programs and activities
	under this section are subject to the approval of the district
	board.
	Sec. 394A.203.  FUNCTIONS OF DISTRICT. (a)  Subject to the
	advice and consent of a district board, the authority may:
	(1)  establish a management district to carry out
	functions permitted under state law;
	(2)  adopt a binding land use plan governing permitted
	land uses;
	(3)  establish minimum standards for residential and
	nonresidential structures and contract with a municipality or
	county to enforce those standards;
	(4)  establish and administer a tax increment
	reinvestment zone or tax increment financing to fund housing
	improvements and repairs or provide public services and public
	facilities;
	(5)  impose and collect fees for services provided by
	the authority;
	(6)  withhold services from and assess reasonable
	penalties against persons who are delinquent in the payment of a fee
	imposed by Subdivision (5); and
	(7)  consistent with the powers of a homeowners'
	association, place a lien on real property to secure payment of fees
	and fines.
	(b)  Before imposing a fee under Subsection (a)(5), the
	authority shall provide information to persons subject to the fee
	to inform them of the cost of services and consequences for failure
	to pay fees.
	(c)  The failure of a person to satisfy a lien imposed under
	Subsection (a)(7) is not cause to foreclose the lien.
	(d)  The authority may enter into a contract for improvements
	and services in a district with units of government, the council,
	private entities, and individuals.  The council shall award
	contracts for goods and services in a manner that is consistent with
	the requirements of this chapter.
	Sec. 394A.204.  COMPREHENSIVE NEEDS ASSESSMENT AND PLANNING
	STUDY. On establishment of a district the council shall, for each
	colonia in the district, begin a comprehensive needs assessment and
	planning study that employs community planners to work in
	cooperation with residents of the district, county officials, and
	nearby city officials to assess housing, public services, and
	public infrastructure needs including:
	(1)  essential public services;
	(2)  transportation;
	(3)  solid waste disposal;
	(4)  drainage;
	(5)  land use regulation;
	(6)  building codes;
	(7)  health codes;
	(8)  hazardous conditions;
	(9)  provisions of utilities;
	(10)  public safety;
	(11)  sidewalks;
	(12)  elimination of blight;
	(13)  streetlights;
	(14)  energy savings and efficiencies;
	(15)  parks and recreational facilities; and
	(16)  development of underutilized or abandoned
	property.
	Sec. 394A.205.  DISTRICT PLAN. (a) Before any improvements
	or activities that will have a financial impact on residents of a
	district are undertaken, the authority shall:
	(1)  prepare and approve a plan to address the needs
	established in the assessment conducted under Section 394A.204;
	(2)  identify appropriate resources and funding
	strategies necessary to implement the plan; and
	(3)  coordinate with county and municipal officials for
	implementation of the plan.
	(b)  A plan shall emphasize improving the housing, public
	services, and public infrastructure within a colonia to a level
	that will facilitate the annexation of a colonia into adjacent
	municipalities when appropriate.
	(c)  The authority shall ensure that, taking into account the
	household incomes of residents of a colonia, the financial impacts
	of the plan do not constitute an excessive or unreasonable
	financial burden.  The authority shall develop a method for
	determining excessive financial burden that takes into account
	housing costs, property taxes, utilities, and payments and fees
	paid to the district. The authority shall hold public hearings
	regarding the calculation of excessive financial burden under this
	section.
	Sec. 394A.206.  EXPANSION OF DISTRICT. On receipt of a
	petition from 51 percent of the households residing in a colonia
	desiring inclusion in an existing district, the authority may
	expand the district to include the colonia.
	Sec. 394A.207.  ANNEXATION OF COLONIA BY MUNICIPALITY. (a)
	In order to provide and maintain public services, the council shall
	coordinate with residents of a district and adjacent municipalities
	to provide planning and financial assistance to encourage the
	annexation of a colonia by a municipality as appropriate and when
	consistent with the interests and desires of the residents of the
	district.
	(b)  When financial incentives are provided to a
	municipality to facilitate annexation of a colonia, the authority
	shall require the municipality to enter into a binding agreement
	providing that not more than four years after annexation public
	services and facilities will be fully provided to the annexed
	colonia in a manner substantially equal to those provided to the
	rest of the municipality.
	(c)  The authority may enter into an agreement with a
	municipality to extend the time an annexing municipality is
	required to provide full public services to a colonia as necessary
	to provide incentives for annexation.  In entering into an
	agreement to delay the provision of services to an annexed colonia,
	the authority shall require that any municipal taxes imposed on the
	newly annexed colonia be reduced during the period when full public
	services are not provided.
	Sec. 394A.208.  DISTRICT SAFETY PROGRAM. The council shall
	cooperate with the appropriate regional engineers of the Texas
	Department of Transportation and the Texas Department of Public
	Safety to develop, identify, and secure funding for a public safety
	program for a district. A program developed under this section
	shall coordinate the provision of street lighting utilizing money
	allocated for that purpose.
	Sec. 394A.209.  COORDINATION OF COLONIA SELF-HELP CENTER
	ACTIVITIES IN DISTRICT. The council and the Texas Department of
	Housing and Community Affairs shall cooperate to direct the
	activities of colonia self-help centers to target districts
	established under this subchapter.
	SUBCHAPTER F.  ENHANCED URBAN RESIDENTIAL DEVELOPMENT DISTRICTS
	Sec. 394A.251.  ENHANCED URBAN RESIDENTIAL DEVELOPMENT
	DISTRICT. On application by a municipality accompanied by a
	petition bearing the signature of not less than 51 percent of the
	residents of the proposed enhanced urban residential development
	district, the authority may designate one or more areas within the
	extraterritorial jurisdiction of the municipality as an enhanced
	urban residential development district to:
	(1)  prevent the proliferation of substandard colonias
	and suburban sprawl in unincorporated areas; and
	(2)  promote quality, affordable, and orderly
	residential development through building standards, land use
	planning, and financial incentives for public improvements and
	housing assistance.
	Sec. 394A.252.  CONSIDERATION AND APPROVAL OF APPLICATION.
	(a)  In considering an application for the establishment of a
	development district, the authority shall apply criteria developed
	and adopted by the authority.
	(b)  The authority shall grant or deny preliminary approval
	for the establishment of a development district not later than the
	180th day after receipt of a valid application and petition.
	(c)  Not later than the 30th day after preliminary approval
	by the authority, the applying municipality shall establish a
	citizen participation plan acceptable to the authority to permit
	residents and property owners within the proposed development
	district to participate in the production of a comprehensive plan
	for the development district.  The terms of the public
	participation process must comply with the requirements provided
	for the establishment of a colonia improvement district in
	Subchapter E.
	(d)  Not later than the 180th day after preliminary approval
	by the authority, the applying municipality shall file with the
	authority a final application that contains:
	(1)  a comprehensive public improvement and housing
	plan that:
	(A)  complies with Section 394A.253; and
	(B)  identifies in detail the powers the
	municipality proposes to exercise within the development district;
	(2)  the detailed financing plan for public
	improvements and housing assistance and the funding sources;
	(3)  if zoning or land use controls are proposed, a
	detailed zoning map and description of the land use controls filed
	by the municipality with the authority; and
	(4)  a binding legal commitment on the part of the
	municipality to provide the services and housing assistance set
	forth in the plan with an accompanying timeline stating the date
	that annexation of the development district will occur.
	(e)  The authority may not approve an application that does
	not demonstrate an achievable financial plan with committed
	financial resources.
	Sec. 394A.253.  DEVELOPMENT DISTRICT PUBLIC IMPROVEMENT AND
	HOUSING PLAN. A comprehensive public improvement and housing plan
	for a proposed development district must provide that:
	(1)  not less than 25 percent of the owner and renter
	occupied residential units developed in the development district
	are affordable to households of extremely low, very low, and low
	incomes in the proportions identified in the regional affordable
	housing plan; and
	(2)  any public incentives provided will provide
	diversity of housing types and costs with adequate provision of
	housing affordability for low-income homeowners and renters in the
	development district.
	Sec. 394A.254.  MUNICIPAL POWERS IN DEVELOPMENT DISTRICT.
	(a) A municipality establishing a development district may:
	(1)  enact and enforce building, use, and zoning
	restrictions in the development district in the same manner as in
	the municipality's corporate limits provided that in enforcing
	building standards on properties within a development district a
	municipality may not assess a fine against a property owner of an
	existing owner-occupied residential structure for a building code
	violation the remedy for which would result in an excessive housing
	cost financial burden to the owner occupant;
	(2)  assess a fine against a homeowner in the
	development district who refuses to remedy a building code
	violation if the municipality offers financial assistance to remedy
	the building code violation provided the cost of the financial
	assistance does not cause a household to suffer an excessive
	housing cost financial burden;
	(3)  in a manner otherwise consistent with other state
	and federal law, apply for grants and other financial assistance;
	(4)  expend funds for public improvements and housing
	assistance; and
	(5)  as a condition of receipt of public improvements,
	direct or indirect benefits of public improvements, or housing
	assistance, require a builder or developer to provide a portion of
	housing constructed in the development district to be affordable in
	a manner that meets the affordable housing requirements of the
	development district.
	(b)  On application of a municipality, the authority may:
	(1)  grant the municipality the authority to establish
	and operate municipal utility districts, management districts, tax
	increment reinvestment zones, and tax increment financing in a
	development district to provide for property acquisition, public
	infrastructure, affordable housing, and the enforcement of
	standards in a district; and
	(2)  develop and provide incentives to developers to
	acquire property and provide affordable housing in the development
	district to make use of existing public infrastructure and
	services, minimize transportation costs, and preserve agricultural
	land and open spaces.
	(c)  The establishment and operation of an entity authorized
	under Subsection (b)(1) is subject to the same governance and
	restrictions as is provided regarding these activities in a
	district established under Subchapter E, including the
	requirements that 51 percent of the residents of the area approve
	the establishment of the district and citizens are represented on a
	board controlling assessments and activities.
	(d)  For purposes of Subsection (a)(1), "excessive housing
	cost financial burden" means a housing cost, including property
	taxes, utilities, house payments, fees for services paid to the
	development district, and the cost of repairs to comply with
	building standards, that exceeds 30 percent of the household's
	adjusted gross income.
	Sec. 394A.255.  ANNEXATION OF DEVELOPMENT DISTRICT. A
	municipality must agree to annex and provide all public services to
	a development district not more than 12 years after the designation
	of the development district.
	SUBCHAPTER G. OTHER PROGRAMS
	Sec. 394A.301.  COLONIA LAND BANK. (a) The council may
	establish a colonia land bank to provide affordable housing in any
	part of the region served by the council.
	(b)  A land bank established under this section shall be
	operated by the authority subject to the provisions applicable to
	the operation of a land bank established under Chapter 379C.
	(c)  The council shall prioritize the acquisition of
	abandoned or tax foreclosed property in colonias to encourage the
	orderly and complete development of those communities.
	Sec. 394A.302.  REGIONAL COLONIA DRAINAGE PLAN. The council
	shall enter into an agreement with the Texas Water Development
	Board to:
	(1)  establish reasonable and appropriate standards
	for storm water protection for colonias and development districts;
	(2)  examine and consider low-impact and alternative
	approaches to storm water protection to reduce costs and speed the
	provision of protection to colonias;
	(3)  develop a comprehensive regional colonia storm
	water drainage plan to mitigate storm water flooding within
	colonias;
	(4)  develop cost estimates for each colonia in the
	region for the provision of recommended storm water protection in
	the colonia including appropriately engineered storm water
	drainage that connects with the regional drainage system; and
	(5)  identify, apply for, secure, and administer grants
	and other funding to carry out the plan developed under this
	section.
	Sec. 394A.303.  ENERGY SELF-SUFFICIENCY PROGRAM. (a)  The
	council shall:
	(1)  cooperate with the Public Utility Commission of
	Texas, local public housing authorities, affordable housing
	providers, and homeowners to establish, evaluate, and report on an
	energy self-sufficiency program;
	(2)  develop an agreement with an energy systems
	provider to administer a distributed renewable generation energy
	system; and
	(3)  ensure the greatest proportion of the economic
	benefits of the program accrue to the benefit of colonia residents
	by encouraging competition among applicant energy systems
	providers.
	(b)  The program established under this section must:
	(1)  evaluate appropriate technologies, including
	solar, wind, geothermal, and fuel cell, for very low income
	households in the Lower Rio Grande Valley and shall propose a
	demonstration program to implement one or more of the technologies
	in the region;
	(2)  evaluate power purchase agreements on public
	housing authorities, affordable rental housing, and owner and
	rental housing occupied by households of very low and extremely low
	income; and
	(3)  prioritize households of extremely low and very
	low income for participation in the program.
	SECTION 3.  Subchapter DD, Chapter 2306, Government Code, is
	amended by adding Section 2306.67251 to read as follows:
	Sec. 2306.67251.  REGIONAL LOW-INCOME HOUSING TAX CREDIT
	ENHANCEMENTS. Notwithstanding any other law, the board shall
	provide through the qualified allocation plan regional scoring
	incentives necessary to ensure that housing tax credits are awarded
	to developments in the Lower Rio Grande Valley region in a manner
	that produces housing consistent with the plan developed under
	Section 394A.053, Local Government Code.
	SECTION 4.  (a)  Not later than March 1, 2014, the executive
	director of the Texas Workforce Commission shall adopt rules
	necessary to implement Section 301.070, Labor Code, as added by
	this Act.
	(b)  Not later than September 1, 2014, the Lower Rio Grande
	Valley Development Council shall provide to the governor, the
	lieutenant governor, the speaker of the house of representatives,
	and the committee in each house of the legislature that has primary
	jurisdiction over housing matters a report that details the
	implementation of Chapter 394A, Local Government Code, as added by
	this Act, and makes recommendations regarding additional authority
	needed to achieve the purposes of that chapter.
	(c)  Not later than September 1, 2014, the Lower Rio Grande
	Valley Development Council and the Texas Water Development Board
	shall submit to the governor, the lieutenant governor, the speaker
	of the house of representatives, and the committee in each house of
	the legislature that has primary jurisdiction over housing matters
	a report detailing the needs and costs identified in Section
	394A.302, Local Government Code, as added by this Act.
	(d)  Not later than March 1, 2014, the Lower Rio Grande
	Valley Development Council shall complete the initial housing and
	community development inventory and market assessment required by
	Section 394A.052, Local Government Code, as added by this Act.
	(e)  Not later than September 1, 2014, the Lower Rio Grande
	Valley Development Council shall adopt the initial affordable
	housing plan required by Section 394A.053, Local Government Code,
	as added by this Act.
	(f)  Not later October 1, 2014, after the adoption by the
	Lower Rio Grande Valley Development Council of the initial
	affordable housing plan under Section 394A.053, Local Government
	Code, as added by this Act, the Texas Department of Housing and
	Community Affairs shall review the initial plan and submit to the
	council for comment proposed modifications to the qualified
	allocation plan to provide regional scoring incentives required
	under Section 2306.67251, Government Code, as added by this Act.
	(g)  The change in law made by this Act in adding Section
	2306.67251, Government Code, applies only to the allocation of
	low-income housing tax credits for an application cycle that begins
	on or after January 1, 2015. The allocation of low-income housing
	tax credits for an application cycle that begins before January 1,
	2015, is governed by the law in effect on the date the application
	cycle began, and the former law is continued in effect for that
	purpose.
	(h)  The board of the Texas Department of Housing and
	Community Affairs shall adopt any rules required by Section
	2306.67251, Government Code, as added by this Act, in conjunction
	with the qualified allocation plan created for the 2015 application
	cycle, and the department during that cycle shall begin allocating
	low-income housing tax credits as provided under Section
	2306.67251, Government Code, as added by this Act.
	SECTION 5.  This Act takes effect September 1, 2013.