HBA-TYH H.B. 1981 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1981
By: Hill
Financial Institutions
4/5/1999
Introduced



BACKGROUND AND PURPOSE 

Each year, Texas receives approximately $50 per capita in tax-exempt
activity bond cap authority from the federal government. In 1999, Texas
received $987,980,700 in bond cap authority. Currently, Texas allocates
seven and one-half percent of the bond cap for affordable multifamily
housing, providing approximately $74 million in financing. The multifamily
use of the bond cap provides Texas with additional federal tax credits, yet
there is some concern that the continuing demand for multifamily bond
financing may exceed the amount of bond cap authority supplied.   

H.B. 1981 increases the ceiling of available multifamily housing bonds from
seven and one-half percent to 15 percent and makes exclusively available 22
percent, rather than 29.5 percent, of the state ceiling for reservations by
all other issuers of bonds requiring an allocation. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Article 5190.9a, V.T.C.S., to provide that 15, rather
than seven and one-half, percent of the state ceiling is available
exclusively for reservations by issuers of qualified residential rental
project bond issues; and 22, rather than 29.5, percent of the state ceiling
is available exclusively for reservations by all other issuers of bonds
requiring an allocation. (State ceiling means the amount of authority in
the State of Texas to issue tax-exempt private activity bonds during the
calendar year.)   

SECTION 2.  Effective date: January 1, 2000.

SECTION 3.  Emergency clause.