40 TAC §175.19, §175.23
The Veterans Land Board of the State of Texas (the "Board")
proposes amendments to Title 40, Part 5, Chapter 175 of the Texas Administrative
Code, §175.19, relating to Subdivision Loan Processing and §175.23,
relating to Notification of County Officials. The amendments will change the
duties of the County Committees and any reference thereto.
Section 161.218(c) of the Texas Natural Resources Code authorizes the Board
to abolish the County Committees if it finds that they are no longer necessary.
The Board finds that the review of the loan applications provided by the County
Committees is no longer necessary. Loan underwriting procedures and reviews
presently in place are sufficient oversight. However, the Board finds that
the County Committees can still provide valuable service to the Board and
the programs. The amendment to §175.19 will delete a reference to the
County Committees. The amendment to §175.23 will change the requirement
of oversight by the County Committees to a request to assist the Board on
various matters associated with the program.
Paul Moore, Executive Secretary of the Veterans Land Board, has determined
that for each year of the first five years that the amendments as proposed
will be in effect, there will be no significant fiscal implication to state
or local government as a result of administering the sections as amended.
Mr. Moore has determined that for each year of the first five years that
the amendments as proposed will be in effect, the public will benefit because
the proposed amendments will allow the Board to reduce the time and excess
paperwork required to process loans for Veterans.
Mr. Moore has determined that the proposed amendments will have no significant
effect on small businesses during each year of the first five years the sections
are in effect.
Mr. Moore has also determined that during each year of the first five years
the proposed amendments are in effect, the anticipated economic cost to persons
who are required to comply with the sections will be insignificant. Persons
who seek financing from the Board through the Program will pay the same fees
to the Board, and costs to third parties, as previously required.
Mr. Moore has determined that during each year of the first five years
the proposed amendments are in effect, the anticipated impact on local employment
will be insignificant.
Comments may be submitted to Melinda Tracy, Legal Service, General Land
Office of the State of Texas, 1700 North Congress Avenue, Austin Texas, by
no later than 30 days after publication.
The amendments are proposed under the Natural Resources Code,
Title 7, Chapter 161, §§161.001, 161.061, 161.063, 161.218, 161.222,
161.233, and 161.283. These sections authorize the Board to adopt rules that
it considers necessary and advisable for the Land Program.
The proposed amendments affects §161.217 and §161.218 of the
Texas Natural Resources Code.
§175.19.Subdivision Loan Processing.
(a)
To qualify for subdivision loan processing a seller must:
(1)
have, or plan to have at least five tracts of land available
for sale to veterans in the same subdivision or development;
(2)
agree to comply with all local ordinances and regulations
regarding the subdivision or resubdivision of land; and
(3)
agree to provide the services and materials described in
this rule to interested veterans in order to facilitate the board's processing
of loans.
(b)
A written request for subdivision loan processing of an
existing or proposed subdivision must be submitted to the board.
(c)
Those sellers who qualify for subdivision loan processing
may request the board to perform a preliminary appraisal of the subdivision.
This preliminary appraisal process will include:
(1)
Establishing high and low per acre values for the subdivision.
The board will use these valuations in determining how much it will loan for
the purchase of tracts in the subdivision.
(2)
Advising the seller, when appropriate, of the best subdivision
plan, so as to maximize land values of the gross acreage for sale.
(3)
Discussing requirements for roads, easements, water sources
and other factors affecting land values. Recommendations will be made if appropriate.
(d)
A fee is charged for the preliminary subdivision appraisal.
(e)
After the preliminary appraisal has been completed and
the seller indicates that tracts within a subdivision are ready for sale to
veterans, the seller may make arrangements with the board for appraisals of
specific tracts. The board will commit itself to a loan value based upon these
appraisals even though a specific veteran purchaser has not yet been identified.
To obtain these appraisals, the seller must:
(1)
Supply a ground survey of each tract of land by a registered
surveyor.
(2)
Submit to the board a certified copy of a recorded subdivision
plat, if the tracts are to be sold by lot and block numbers. This plat must
contain evidence that it has been approved and accepted by the county commissioners.
(3)
Obtain a title insurance commitment for each tract;
(4)
Request a field appraisal of each tract by the board. A
fee is charged in advance for each appraisal. This fee will be refunded to
the seller if the tract is sold to a veteran through the Veterans Land Program;
and
(5)
Furnish a recorded subdivision plat, if requested by the
board.
(f)
Sellers may arrange to obtain application packets from
the board.
(g)
Sellers using the subdivision loan processing system should
help veterans complete all forms and documents required for processing and
closing loans. Sellers will also be responsible for having veterans:
(1)
submit the correct amounts for down payments and fees required
by the board; and
(2)
provide any missing documentation needed in order to qualify,
process, or close a loan.
(h)
Completed application packets must be received by the board
within 30 days of the date the application contract is signed.
(i)
Application packets are to be submitted by the seller and
must include:
(1)
a copy of the recorded subdivision plat or other evidence
of compliance with local regulations and ordinances; and
(2)
a title insurance commitment for the tract to be purchased.
(j)
Due to the nature and purpose of the subdivision loan processing
program, it is the seller's responsibility to work with the veteran and the
board to expedite the processing of the loan. For this reason it is suggested
that the seller designate one individual to serve as a contact person with
the board. This person should be familiar with the board's forms, rules, procedures,
and any other requirements necessary for successful processing of the loan.
In this regard it is also suggested that the contact person familiarize himself
and maintain regular contacts with the board's field staff, [
county committees,
] local veterans' service officers, and the title company providing
insurance.
§175.23.County Committees.
[
(a)
]
The
[
There is appointed by
the
] commissioners court of each county
may appoint
a committee
of
up to
three resident real property owners
, who are knowledgeable
and active in veterans' affairs, to serve as a local county advisory committee
to the board. The committee shall perform all duties requested by the board,
including, but not limited to, providing information about the programs to
veterans and veterans' groups, and collecting and reporting relevant information
to the board. In the event a county chooses to appoint members to an advisory
committee, the county shall notify the board of the names and address of those
appointed
. [
Upon application for a loan through the Veterans Land
Program, each applicant shall also submit a copy of his or her application
to the county committee in the county in which the land is located. This committee
shall consider the forms and submit a report to the board as to the amount
the committee considers to be the reasonable value of the land in question,
the financial responsibility and credit rating of the veteran applicant, if
known, and a statement of opinion as to whether or not the transaction is
bona fide.
]
[(b)
If the property which the veteran applicant
wishes to purchase is in a county different from the veteran applicant's home
county, the chairman of the board, executive secretary, or assistant executive
secretary, may also require each applicant to submit a copy of his or her
application to the county committee in the county in which the veteran resides,
for review. This committee shall submit a report concerning the financial
responsibility and credit rating of the veteran applicant, if known, and a
statement of opinion as to whether or not the transaction is bona fide.]
[(c)
Should the county committee in any county
be nonfunctioning, or should a county committee fail to submit its report
to the board within a reasonable length of time, the chairman, executive secretary,
or assistant executive secretary may waive the requirement of receiving said
report.]
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on June 27, 2003.
TRD-200303956
Larry L. Laine
Chief Clerk, Deputy Commissioner
Texas Veterans Land Board
Earliest possible date of adoption: August 10, 2003
For further information, please call: (512) 305-9126