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