Bill Text: TX SB1114 | 2019-2020 | 86th Legislature | Engrossed


Bill Title: Relating to the sale or donation of certain school district property for the development of affordable housing for school district personnel and other income-eligible persons.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2019-05-13 - Left pending in committee [SB1114 Detail]

Download: Texas-2019-SB1114-Engrossed.html
 
 
  By: Lucio S.B. No. 1114
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the sale or donation of certain school district
  property for the development of affordable housing for school
  district personnel and other income-eligible persons.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter D, Chapter 11, Education Code, is
  amended by adding Section 11.15415 to read as follows:
         Sec. 11.15415.  SALE OR DONATION OF PROPERTY FOR DEVELOPMENT
  OF AFFORDABLE HOUSING. (a)  This section applies only to a board of
  trustees of an independent school district located in a county
  that:
               (1)  borders the United Mexican States and the Gulf of
  Mexico;
               (2)  borders the Gulf of Mexico and has a population of
  less than 10,000; or  
               (3)  is adjacent to a county described by Subdivision
  (1) or (2) and has a population of more than 20,000.
         (b)  Notwithstanding any other provision of law, the board of
  trustees of an independent school district to which this section
  applies may by resolution authorize the sale, at less than fair
  market value, or donation of any property held in trust for public
  school purposes to the Texas State Affordable Housing Corporation
  or another nonprofit organization with expertise in developing
  affordable housing for the development of affordable housing under
  Section 2306.570, Government Code.
         (c)  Before adopting a resolution to sell or donate property
  under this section, the board of trustees of an independent school
  district:
               (1)  shall:
                     (A)  hold a public hearing concerning the sale or
  donation of the property and, in addition to any other notice
  required, give notice of the hearing by publishing the subject
  matter, location, date, and time of the hearing in a newspaper
  having general circulation in the territory of the district;
                     (B)  ensure that the sale or donation complies
  with Section 52, Article III, Texas Constitution, and any other
  applicable provisions of the Texas Constitution;
                     (C)  ensure that a percentage of the housing units
  on the property will be reserved for income-eligible school
  district personnel, including educators, school nurses, school
  counselors, and other administrative staff of the school; and
                     (D)  ensure that the sale or donation will serve a
  public purpose; and
               (2)  may:
                     (A)  require that a percentage of the housing
  units developed on the property be reserved for persons eligible to
  receive a loan under Section 2306.5621, Government Code; and
                     (B)  require that a percentage of the housing
  units developed on the property be reserved for other
  income-eligible persons in a manner that serves community needs, as
  determined by the board.
         SECTION 2.  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 moderate, low, very low, and extremely low income and for persons
  who are eligible for loans under the home loan program provided by
  Section 2306.5621 or who are eligible to receive affordable housing
  under Section 2306.570. 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 moderate, low, very
  low, and extremely low income and to persons who are eligible for
  loans under the home loan program provided by Section 2306.5621.
         (b-1)  The corporation may make first lien, single family
  purchase money mortgage loans for single family homes only to
  individuals and families of moderate, 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].
         (b-2)  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 moderate, low, very low, and extremely low income.
         SECTION 3.  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 individuals and families of
  moderate, low, very low, and extremely low income who, generally,
  are not afforded housing finance options through conventional
  lending channels.
         SECTION 4.  Section 2306.5552, Government Code, is amended
  to read as follows:
         Sec. 2306.5552.  TECHNICAL AND FINANCIAL ASSISTANCE
  PROVIDED TO NONPROFIT ORGANIZATIONS. The corporation shall
  supplement the technical and financial capacity of other
  appropriate nonprofit organizations to provide for the multifamily
  and single-family housing needs of individuals and families of
  moderate, low, very low, and extremely low income.
         SECTION 5.  Subchapter Y, Chapter 2306, Government Code, is
  amended by adding Section 2306.570 to read as follows:
         Sec. 2306.570.  DEVELOPMENT OF AFFORDABLE HOUSING FOR
  CERTAIN SCHOOL DISTRICT PERSONNEL. (a)  The corporation or a
  nonprofit organization designated by the corporation with
  expertise in developing affordable housing may purchase or receive
  property under Section 11.15415, Education Code, to develop
  multifamily and single-family affordable housing units for:
               (1)  school district personnel, including educators,
  school nurses, school counselors, and other administrative staff of
  the school district; or
               (2)  other persons specified by Section
  11.15415(c)(2), Education Code.
         (b)  The corporation or a nonprofit organization that
  purchases or receives property to develop affordable housing shall:
               (1)  ensure that the property will be used in
  accordance with the public purposes of the corporation outlined
  under Section 2306.553; and
               (2)  impose deed restrictions requiring the sale or
  rental of the property to moderate or low income households.
         (c)  For multifamily housing units developed under this
  section, the deed restrictions must require that:
               (1)  not less than 80 percent of the units must be
  occupied by and affordable to families with a household income of
  not more than 80 percent of the annual area median family income,
  based on gross household income and adjusted for household size,
  for the county or metropolitan statistical area in which the units
  are located; and
               (2)  for multifamily housing units available for rent:
                     (A)  not less than 40 percent of the units must be
  occupied by and affordable to families with a household income of
  not more than 60 percent of the annual area median family income,
  based on gross household income and adjusted for household size,
  for the county or metropolitan statistical area in which the units
  are located; or
                     (B)  not less than 20 percent of the units must be
  occupied by and affordable to families with a household income of
  not more than 50 percent of the annual area median family income,
  based on gross household income and adjusted for household size,
  for the county or metropolitan statistical area in which the units
  are located.
         (d)  For single-family housing units developed under this
  section, the deed restrictions must require that:
               (1)  not less than 50 percent of the units must be sold
  to families with a household income of not more than 80 percent of
  the annual area median family income, based on gross household
  income and adjusted for household size, for the county or
  metropolitan statistical area in which the units are located; and
               (2)  the remaining units must be sold to families with a
  household income of not more than 120 percent of the annual area
  median family income, based on gross household income and adjusted
  for household size, for the county or metropolitan statistical area
  in which the units are located.
         SECTION 6.  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, 2019.
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