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  S.B. No. 1553
 
 
 
 
AN ACT
  relating to the Homes for Texas Heroes home loan program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (b), Section 1372.025, Government
  Code, is amended to read as follows:
         (b)  Subsection (a) does not apply to qualified mortgage
  bonds or qualified residential rental project bonds made available
  exclusively to the Texas Department of Housing and Community
  Affairs under Section 1372.023 or the Texas State Affordable
  Housing Corporation under Section 1372.0223(1) [Sections 1372.0221
  and 1372.0222].
         SECTION 2.  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
  under the home loan program [programs] provided by Section 
  [Sections 2306.562 and] 2306.5621.  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 program [programs] provided by Section [Sections
  2306.562 and] 2306.5621.  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 3.  The heading to Section 2306.5621, Government
  Code, is amended to read as follows:
         Sec. 2306.5621.  HOMES FOR TEXAS HEROES [FIRE FIGHTER, LAW
  ENFORCEMENT OR SECURITY OFFICER, AND EMERGENCY MEDICAL SERVICES
  PERSONNEL] HOME LOAN PROGRAM.
         SECTION 4.  Subsection (a), Section 2306.5621, Government
  Code, is amended by amending Subdivisions (2) and (5) and adding
  Subdivisions (10) through (16) to read as follows:
               (2)  "Home" means a dwelling in this state in which a
  fire fighter, corrections officer, county jailer, public security
  officer, peace officer, professional educator, veteran, or person
  defined as emergency medical services personnel under this section
  intends to reside as the borrower's principal residence.
               (5)  "Program" means the Homes for Texas Heroes [fire
  fighter, law enforcement or security officer, and emergency medical
  services personnel] home loan program.
               (10)  "Veteran" has the meaning assigned by Section
  161.001, Natural Resources Code.
               (11)  "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.
               (12)  "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.
               (13)  "Graduate professional nursing program" and
  "undergraduate professional nursing program" have the meanings
  assigned by Section 54.355, Education Code.
               (14)  "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, full-time school nurse, or allied health or
  professional nursing program faculty member.
               (15)  "Professional nursing program faculty member"
  means a full-time member of the faculty of either an undergraduate
  or graduate professional nursing program.
               (16)  "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.
         SECTION 5.  Section 2306.5621, Government Code, is amended
  by amending Subsections (b), (c), (d), (f), (h), and (h-1) and
  adding Subsection (d-1) to read as follows:
         (b)  The corporation shall establish a program to provide
  eligible fire fighters, corrections officers, county jailers,
  public security officers, peace officers, [and] emergency medical
  services personnel, professional educators, and veterans with
  low-interest home mortgage loans.
         (c)  To be eligible for a loan under this section, at the time
  a person files an application for the loan, the person must:
               (1)  be a:
                     (A)  fire fighter, corrections officer, county
  jailer, public security officer, peace officer, veteran, or person
  defined as emergency medical services personnel under this section;
  or
                     (B)  professional educator who is employed by a
  school district or is an allied health or professional nursing
  program faculty member in this state;
               (2)  reside in this state; and
               (3)  have an income of not more than 115 percent of area
  median family income, adjusted for family size, or the maximum
  amount permitted by Section 143(f), Internal Revenue Code of 1986,
  whichever is greater.
         (d)  The corporation may contract with other agencies of the
  state or with private entities to determine whether applicants
  qualify as fire fighters, corrections officers, county jailers,
  public security officers, peace officers, [or] emergency medical
  services personnel, professional educators, or veterans under this
  section or otherwise to administer all or part of this section.
         (d-1)  The corporation may contract with the Texas Veterans
  Commission to provide other housing assistance to veterans
  receiving loans under this section.
         (f)  The board of directors of the corporation shall adopt
  rules governing:
               (1)  the administration of the program;
               (2)  the making of loans under the program;
               (3)  the criteria for approving mortgage lenders;
               (4)  the use of insurance on the loans and the homes
  financed under the program, as considered appropriate by the board
  to provide additional security for the loans;
               (5)  the verification of occupancy of the home by the
  fire fighter, corrections officer, county jailer, public security
  officer, peace officer, professional educator, veteran, or person
  defined as emergency medical services personnel as the borrower's
  principal residence; and
               (6)  the terms of any contract made with any mortgage
  lender for processing, originating, servicing, or administering
  the loans.
         (h)  In addition to funds set aside for the program under
  Section 1372.0223(1) [1372.0222], the corporation may solicit and
  accept funding for the program from the following sources:
               (1)  gifts and grants for the purposes of this section;
               (2)  available money in the housing trust fund
  established under Section 2306.201, to the extent available to the
  corporation;
               (3)  federal block grants that may be used for the
  purposes of this section, to the extent available to the
  corporation;
               (4)  other state or federal programs that provide money
  that may be used for the purposes of this section; and
               (5)  amounts received by the corporation in repayment
  of loans made under this section.
         (h-1)  To fund home mortgage loans for eligible fire
  fighters, corrections officers, county jailers, public security
  officers, peace officers, [and] emergency medical services
  personnel, professional educators, and veterans under this
  section, the corporation may use any proceeds received from the
  sale of bonds, notes, or other obligations issued under the home
  loan program provided by this section, regardless of any amendments
  to the eligibility standards for loans made under the program and
  regardless of when the corporation received the proceeds from those
  bonds, notes, or other obligations issued under the program.
         SECTION 6.  Sections 1372.0221, 1372.0222, and Subsection
  (i), Section 2306.5621, Government Code, are repealed.
         SECTION 7.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2013.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1553 passed the Senate on
  April 25, 2013, by the following vote:  Yeas 30, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1553 passed the House on
  May 22, 2013, by the following vote:  Yeas 145, Nays 3, two
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor