By: Watson, et al. S.B. No. 1991     (Johnson of Harris)           A BILL TO BE ENTITLED   AN ACT   relating to the administration of federal funds under the   Cranston-Gonzalez National Affordable Housing Act.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 2306.111(c), (c-1), and (c-2),   Government Code, are amended to read as follows:          (c)  In administering federal housing funds provided to the   state under the Cranston-Gonzalez National Affordable Housing Act   (42 U.S.C. Section 12701 et seq.), the department shall allocate   [expend]:                (1)  95 percent of these funds for the benefit of   non-participating small cities and rural areas that do not qualify   to receive funds under the Cranston-Gonzalez National Affordable   Housing Act directly from the United States Department of Housing   and Urban Development, except that an amount not to exceed 15   percent of the funds allocated under this subdivision may be   allocated to participating jurisdictions as necessary to meet the   requirements of federal law; and                (2)  at least five percent of these funds for the   benefit of persons with disabilities who live in any area of this   state.          (c-1)  Eligibility to apply for community housing   development organization set-aside funds under Subsection (c) is   determined by federal law [The following entities are eligible to   apply for set-aside funds under Subsection (c):                [(1)     nonprofit providers of affordable housing,   including community housing development organizations; and                [(2)  for-profit providers of affordable housing].          (c-2)  In allocating set-aside funds under Subsection (c),   the department:                (1)  may not give preference to nonprofit providers of   affordable housing, except as necessary to meet the requirements of   [required by] federal law; and                (2)  shall allocate funds in accordance with any   applicable spending plan required under federal law.          SECTION 2.  The change in law made by this Act in amending   Section 2306.111, Government Code, applies only to an application   for financial assistance that is submitted to the Texas Department   of Housing and Community Affairs on or after January 1, 2018. An   application for financial assistance that is submitted to the   department before January 1, 2018, is governed by the law in effect   immediately before the effective date of this Act, and the former   law is continued in effect for that purpose.          SECTION 3.  This Act takes effect September 1, 2017.