TITLE: Relating to predevelopment loans provided to community housing development organizations by the Texas Department of Housing and Community Affairs.

SUMMARY: Relating to predevelopment loans provided to community housing development organizations by the Texas Department of Housing and Community Affairs.

FULL TEXT:
AN ACT relating to predevelopment loans provided to community housing development organizations by the Texas Department of Housing and Community Affairs. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter J, Chapter 2306, Government Code, is amended by adding Section 2306.233 to read as follows: Sec. 2306.233. PREDEVELOPMENT LOANS. (a) The department may issue to a community housing development organization certified by the department a project-specific predevelopment loan to facilitate the development of a project that, if considered feasible, will receive an award of financial assistance under the terms of the federal HOME Investment Partnerships Program established under Title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. Section 12701 et seq.). (b) A predevelopment loan issued under this section may not be used to pay: (1) project costs that exceed customary and reasonable project preparation costs; or (2) administrative expenses of a community housing development organization. SECTION 2. This Act takes effect September 1, 2017.