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

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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

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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.