COLONIA MODEL SUBDIVISION PROGRAM
Sec. 2306.781. DEFINITION. In this subchapter, “program” means the colonia model subdivision program established under this subchapter.
Added by Acts 2001, 77th Leg., ch. 1367, Sec. 2.13, eff. Sept. 1, 2001.
Sec. 2306.782. ESTABLISHMENT OF PROGRAM. The department shall establish the colonia model subdivision program to promote the development of new, high-quality, residential subdivisions that provide:
(1) alternatives to substandard colonias; and
(2) housing options affordable to individuals and families of extremely low and very low income who would otherwise move into substandard colonias.
Added by Acts 2001, 77th Leg., ch. 1367, Sec. 2.13, eff. Sept. 1, 2001.
Sec. 2306.783. COLONIA MODEL SUBDIVISION REVOLVING LOAN FUND. (a) The department shall establish a colonia model subdivision revolving loan fund in the department. Money in the fund may be used only for purposes of the program.
(a-1) Expired.
(a-2) Expired.
(a-3) Expired.
(b) The department shall deposit money received in repayment of loans under this subchapter to the colonia model subdivision revolving loan fund.
Added by Acts 2001, 77th Leg., ch. 1367, Sec. 2.13, eff. Sept. 1, 2001.
Sec. 2306.784. SUBDIVISION COMPLIANCE. Any subdivision created with assistance from the colonia model subdivision revolving loan fund must fully comply with all state and local laws, including any process established under state or local law for subdividing real property.
Added by Acts 2001, 77th Leg., ch. 1367, Sec. 2.13, eff. Sept. 1, 2001.
Sec. 2306.785. PROGRAM LOANS. (a) The department may make loans under the program only to:
(1) colonia self-help centers established under Subchapter Z; and
(2) community housing development organizations certified by the department.
(b) A loan made under the program may be used only for the payment of:
(1) costs associated with the purchase of real property;
(2) costs of surveying, platting, and subdividing or resubdividing real property;
(3) fees, insurance costs, or recording costs associated with the development of the subdivision;
(4) costs of providing proper infrastructure necessary to support residential uses;
(5) real estate commissions and marketing fees; and
(6) any other costs as the department by rule determines to be reasonable and prudent to advance the purposes of this subchapter.
(c) A loan made by the department under the program may not bear interest and may not exceed a term of 36 months.
(d) The department may offer a borrower under the program one loan renewal for each subdivision.
Added by Acts 2001, 77th Leg., ch. 1367, Sec. 2.13, eff. Sept. 1, 2001.
Sec. 2306.786. ADMINISTRATION OF PROGRAM; RULES. (a) In administering the program, the department by rule shall adopt:
(1) any subdivision standards in excess of local standards the department considers necessary;
(2) loan application procedures;
(3) program guidelines; and
(4) contract award procedures.
(b) The department shall adopt rules to:
(1) ensure that a borrower under the program sells real property under the program only to an individual borrower, nonprofit housing developer, or for-profit housing developer for the purposes of constructing residential dwelling units; and
(2) require a borrower under the program to convey real property under the program at a cost that is affordable to:
(A) individuals and families of extremely low income; or
(B) individuals and families of very low income.
Added by Acts 2001, 77th Leg., ch. 1367, Sec. 2.13, eff. Sept. 1, 2001.