bill adds nurses and social workers to state home loans

The text as introduced · 1,141 words

89R10560 JAM-D

By: Goodwin
H.B. No. 2425

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(a), Government Code, is

amended by amending Subdivision (2) and adding Subdivisions (17),

(18), and (19) 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, municipal employee, nurse, social worker,

professional educator, veteran, or person defined as emergency

medical services personnel under this section intends to reside as

the borrower's principal residence.

(17) "Municipal employee" means a permanent,

full-time employee of a municipality.

(18) "Nurse" has the meaning assigned by Section

303.001, Occupations Code.

(19) "Social worker" has the meaning assigned by

Section 505.002, Occupations Code.

SECTION 4. Sections 2306.5621(b), (c), (d), (f), and (h-1),

Government Code, are amended to read as follows:

(b) The corporation shall establish a program to provide

eligible persons [ fire fighters, corrections officers, county

jailers, public security officers, peace officers, 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, municipal

employee, nurse, social worker, 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.

(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, municipal employees,

nurses, social workers, emergency medical services personnel,

professional educators, or veterans under this section or otherwise

to administer all or part of 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, municipal employee, nurse, social worker,

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-1) To fund home mortgage loans for eligible persons [ fire

fighters, corrections officers, county jailers, public security

officers, peace officers, 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 5. This Act takes effect September 1, 2025.