bill widens who the Texas State Affordable Housing Corporation serves

The text as introduced · 714 words

89R3310 JAM-D

By: Goodwin
H.B. No. 1262

A BILL TO BE ENTITLED

AN ACT

relating to the purpose of and programs administered by the Texas

State Affordable Housing Corporation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2306.553, Government Code, is amended to

read as follows:

Sec. 2306.553. PURPOSES. (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 income , individuals and families of very low income ,

individuals and families of [ and ] extremely low income , and [ for ]

persons who are eligible for loans under the home loan program

provided by Section 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 income ,

individuals and families of very low income , individuals and

families of [ and ] extremely low income , and [ to ] persons who are

eligible for loans under the home loan program provided by Section

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

only 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.

(c) To the extent reasonably practicable, the corporation

shall use the services of banks, community banks, savings banks,

thrifts, savings and loan associations, private mortgage

companies, nonprofit organizations, and other lenders for the

origination of all loans contemplated by this subchapter and assist

the lenders in providing credit primarily to individuals and

families of low income , individuals and families of very low

income , individuals and families of [ and ] extremely low income , and

persons who are eligible for loans under the home loan program

provided by Section 2306.5621 .

SECTION 2. Section 2306.555(d), Government Code, is amended

to read as follows:

(d) All of the mortgage banking operations shall be

dedicated to the furtherance of facilitating affordable housing

finance primarily for the benefit of :

(1) individuals and families of low, very low, and

extremely low income who, generally, are not afforded housing

finance options through conventional lending channels ; and

(2) persons who are eligible for loans under the home

loan program provided by Section 2306.5621 .

SECTION 3. Section 2306.5621(c), Government Code, is

amended to read as follows:

(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 140 [ 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.

SECTION 4. This Act takes effect September 1, 2025.