85R8273 JAM-F     By: Lucio S.B. No. 1114       A BILL TO BE ENTITLED   AN ACT   relating to financial assistance provided for the demolition and   replacement of unsafe housing and the purchase of manufactured   homes by individuals and families of very low income.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter AA, Chapter 2306, Government Code, is   amended by adding Sections 2306.6024 and 2306.6025 to read as   follows:          Sec. 2306.6024.  TEXAS SAFE HOME PROGRAM. (a) The division   shall establish and administer a program to provide financial   assistance for the demolition and replacement of owner-occupied   single-family homes that are in a condition that poses a risk to the   health and safety of the occupants.          (b)  The Manufactured Housing Board shall adopt rules to   implement the program described by this section. Rules adopted   under this section must establish:                (1)  procedures and forms for nominating a household   for participation in the program;                (2)  eligibility criteria for participation in the   program, including criteria based on:                      (A)  the financial need of the household;                      (B)  the physical condition of the home; and                      (C)  other criteria the Manufactured Housing   Board considers necessary;                (3)  procedures for evaluating a household's   eligibility for participation in the program;                (4)  a system that:                      (A)  prioritizes and maximizes the allocation of   available funds; and                      (B)  includes the assignment of eligible   households to specific funding priority levels that are designed to   ensure the most effective use of funds for the most exigent   circumstances; and                (5)  the manner in which a nomination must be made and   the manner in which households will be assigned to a specific   funding priority level under the system described by Subdivision   (4).          (c)  Funding priority levels described by Subsection   (b)(4)(B) must give high priority to:                (1)  households with children, the elderly, or persons   with disabilities;                (2)  households whose health and safety are at greatest   risk due to the continued occupancy of a home described by   Subsection (a); and                (3)  households that:                      (A)  are eligible for and will receive third-party   contributions, including volunteer labor or additional loans,   grants, or other financial assistance; or                      (B)  will contribute labor in the demolition or   construction of the home.          (d)  A household may be nominated for participation in the   program by a mayor, fire chief, fire marshal, volunteer fire chief,   county commissioner, or county judge filing a nomination with the   division.          (e)  On receipt of a nomination regarding a household, the   division shall determine whether the household is eligible to   participate in the program. If the household is eligible, the   division shall establish a funding priority level for the   household.          (f)  A household may not be required to participate in the   program.          (g)  In determining whether a nominated household is   eligible for participation in the program and for the purpose of   establishing a funding priority level for the household, an   inspector with the division shall inspect the home with the   homeowner and with the person who nominated the household or that   person's designee.          (h)  Financial assistance administered under this section   may be provided in the form of a grant, partial grant, loan, or   forgivable loan.          (i)  The division shall establish the Texas safe home trust   fund. The Texas safe home trust fund:                (1)  is a fund:                      (A)  administered by the division; and                      (B)  placed with the Texas Treasury Safekeeping   Trust Company;                (2)  consists of:                      (A)  money deposited to the fund under Section   158.056, Tax Code;                      (B)  appropriations or transfers made to the fund;                      (C)  unencumbered fund balances;                      (D)  public or private gifts, grants, or   donations;                      (E)  investment income, including all interest,   dividends, capital gains, or other income from the investment of   any portion of the fund;                      (F)  repayments received on loans made from the   fund; and                      (G)  funds from any other source; and                (3)  may be used only to support the programs   established under this section and Section 2306.6025.          (j)  The division shall attempt to secure an agreement with:                (1)  private lending institutions for below market rate   loans for use in the program; and                (2)  manufacturers of manufactured housing for the   provision of HUD-code manufactured homes at a discounted price.          (k)  An entity that enters into an agreement with the   division under Subsection (j) may:                (1)  be designated as an "Official Partner of the State   of Texas for Safe and Affordable Homes"; and                (2)  use the designation described by Subdivision (1)   in advertising and promotion.          (l)  The division may enter into a contract for the   administration of the program.          (m)  Not later than September 1 of each year, the division   shall submit to the governor, the lieutenant governor, the speaker   of the house of representatives, and the state fire marshal a report   that documents for the preceding state fiscal year the number of   households that participated in the program, the nature of the   financial assistance provided under the program, and the amounts of   public and private financial assistance administered through the   program.          Sec. 2306.6025.  MANUFACTURED HOME PURCHASE ASSISTANCE   PROGRAM.  (a)  The division shall establish a program to provide   financial assistance to eligible persons for the purchase of new   manufactured homes from a retailer licensed under Chapter 1201,   Occupations Code.          (b)  The Manufactured Housing Board shall adopt rules   governing:                (1)  the administration of the program;                (2)  the issuance of financial assistance under the   program;                (3)  eligibility criteria for participation in the   program, including creditworthiness and purchase price criteria;                (4)  exceptions to the residency requirement under   Subsection (c)(1), including death, loss of employment, or other   exigent circumstances; and                (5)  the structure of the financial assistance provided   under this section, which may include secured or unsecured deferred   forgivable loans.          (c)  To be eligible for financial assistance under this   section, a person must:                (1)  reside in this state on the date on which an   application for financial assistance under this section is filed;                (2)  be an individual or family of very low income;                (3)  except as provided by the division program   guidelines or rules, continuously occupy the purchased   manufactured home as the person's primary residence for at least   two years following the date of purchase of the home; and                (4)  satisfy any other requirements established by the   Manufactured Housing Board.          (d)  When adopting additional rules on homeowner   eligibility, the Manufactured Housing Board may consider giving   priority in allocating financial assistance under this section to:                (1)  a person who is currently serving in the military   or who is a veteran;                (2)  a person who is at least 65 years of age;                (3)  a person who has not owned a home during the three   years before the date on which an application is filed under this   section;                (4)  a person who is replacing an existing manufactured   home used as the person's primary residence that was manufactured   more than 15 years before the date on which an application is filed   under this section;                (5)  a person buying a manufactured home that is an   "Energy Star" qualified manufactured home or that conforms to the   energy efficiency standards or program jointly operated by the   United States Department of Housing and Urban Development and the   United States Department of Energy; and                (6)  a person who will install the home in a county with   a population of 150,000 or less.          (e)  For each manufactured home purchased with financial   assistance under this section, the assistance may not exceed the   lesser of:                (1)  $35,000;                (2)  50 percent of the total purchase price of the   manufactured home; or                (3)  50 percent of the total purchase price of the   manufactured home and the real property on which a manufactured   home has been installed, if a real property election has been   perfected under Section 1201.222(a), Occupations Code.          (f)  Financial assistance provided under this section to   purchase a home having a primary loan associated with the purchase,   if the loan does not involve the use of real property as security,   must be provided by a lender that:                (1)  makes consumer loans on manufactured homes in this   state in conformance with Chapter 347, Finance Code; or                (2)  is a federally insured depository institution.          (g)  A lender must comply with applicable requirements of   state and federal law if the loan involves the use of real property   as security.          (h)  The division may fund the program with:                (1)  money appropriated to the division for that   purpose;                (2)  money deposited to the Texas safe home trust fund   under Section 158.056, Tax Code; and                (3)  funds from any other source.          (i)  A person who receives financial assistance through a   second lien loan under this section shall repay the outstanding   balance of the loan if the person ceases to occupy the manufactured   home as the person's primary residence.          (j)  The division shall award financial assistance under the   program on a first-come, first-served basis. The division may   publish on its Internet website notice that the division is   accepting applications for the program.          (k)  The division may reserve for payment of administrative   expenses not more than five percent of money received for the   program under this section.          (l)  The division may coordinate with local government   officials and utility providers to promote awareness of the program   and to receive recommendations of persons potentially eligible to   participate in the program.          SECTION 2.  Section 158.056, Tax Code, is amended by adding   Subsection (c) to read as follows:          (c)  The comptroller shall deposit 100 percent of the tax   imposed under this section to the credit of the Texas safe home   trust fund established under Section 2306.6024, Government Code,   for use only for the purposes authorized by Subsection (i) of that   section.          SECTION 3.  This Act takes effect September 1, 2017.