1. (a) In administering the program, the department by rule shall adopt:

   1. (1) any subdivision standards in excess of local standards the department considers necessary;
   2. (2) loan application procedures;
   3. (3) program guidelines; and
   4. (4) contract award procedures.

2. (b) The department shall adopt rules to:

   1. (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. (2) require a borrower under the program to convey real property under the program at a cost that is affordable to:

      1. (A) individuals and families of extremely low income; or
      2. (B) individuals and families of very low income.

Added by Acts 2001, 77th Leg., ch. 1367, Sec. 2.13, eff. Sept. 1, 2001.