Southeast Texas Housing Finance Corporation was organized in 1981 as a “housing finance corporation” under the Texas Housing Finance Corporations Act of 1979, currently authorized under Chapter 394.905, of the Texas Local Government Code. While not a governmental entity, the corporation is a duly constituted non-profit, instrumentality of the governments of the Cities of Baytown, Deer Park, Dickinson, LaMarque, LaPorte, Pasadena, Santa Fe, Shoreacres, Texas City, and Tomball, Texas, and the Counties of Austin, Brazoria, Chambers, Galveston, Liberty, Matagorda, Walker, Waller, and Wharton, Texas. As a result, the Southeast Texas Housing Finance Corporation is considered under state law to be a political subdivision of the State of Texas, and is therefore exempt from all state taxation. The corporation is also exempt from federal taxation under Internal Revenue Code Section 115 due to its existence as a political subdivision of a state. The public purpose of Southeast Texas Housing Finance Corporation is to create and promote affordable housing opportunities for the citizens of Texas and it’s subscribing governmental jurisdictions.
The primary business activity of Southeast Texas Housing Finance Corporation is to issue tax-exempt single-family mortgage revenue bonds. The corporation also issues bonds for affordable multi-family housing projects. The other business activities of the corporation include homebuyer training and the administration of federal housing programs and awards as a sub-recipient from governmental entities. The company does not administer any Section 8 programs or contracts. Southeast Texas Housing Finance Corporation also develops and administers homebuyer assistance programs using its own corporate funds.
The company’s Board of Directors consists of one representative from each sponsoring jurisdiction. The company’s board has separate committees authorized for special functions and oversight. These are: a Management Committee, an Audit / Finance Committee, and a Personnel Committee. The board meets monthly, and committees meet periodically. Meeting minutes are recorded and retained.