Highlights 77th Texas Legislature - Senate

_______________________________ HOUSING
77 th Texas Legislature
Executory Contracts for Conveyance of Real Property - S.B. 198
by Senator Moncrief, et al.
House Sponsors: Representative Carter, et al.
Executory contracts involve future obligations on the part of a seller and purchaser and are often used
when a purchaser is unable to obtain financing for real property. With an executory contract for a home,
the purchaser makes payments to the seller and at the end of a specified period of time, if the purchaser is
unable to obtain financing, those previous payments are considered rent. Otherwise, the payments are
applied toward the purchase price. Under current executory contract law, additional protections are
provided to purchasers in economically distressed areas.
Removes the current income and geography brackets so that executory contracts for conveyance apply
statewide for a transaction involving real property used as the purchaser’s residence or as the residence of
a person related to the purchaser.
Provides that an executory contract is enforceable only when the contract is in writing and signed by the
party to be bound or that party’s representative, and clarifies that prior oral agreements between the parties
are superseded by the contract. Requires a copy of the contract to be in the language of the negotiations
when the deal takes place in a foreign language.
Sets forth provisions related to execution of the contract, forfeiture, and fraud.
Texas Department of Housing and Community Affairs (Sunset) - S.B. 322
by Senators Lucio and Zaffirini
House Sponsors: Representatives Gallego and Carter
The Texas Department of Housing and Community Affairs (TDHCA) works to ensure affordable housing for
low-income families, promote community development and assistance, and regulate the state's
manufactured housing industry. TDHCA is subject to the Texas Sunset Act and was reviewed by the
Sunset Advisory Commission (commission) during the interim. In its review of TDHCA, the commission
found that while TDHCA is funding affordable housing and assisting many communities, problems exist in
TDHCA's ability to allocate resources to meet the state's most pressing housing needs
Continues TDHCA for a two-year probationary period and enacts standard Sunset language related to the
administration of the agency.
Governing Board
Restructures the governing board as a seven-member, rather than nine-member, board composed of public
members with demonstrated interest in housing and community services issues.
Prohibits a person from being appointed to the board if the person or the person’s spouse has close
monetary interests in the funds disbursed by TDHCA.
Senate Research Center 163