HBA-ALS, TYH H.B. 2398 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2398
By: Carter
Urban Affairs
6/1/1999
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 76th Legislature, the housing trust fund was the only state
authorized program for affordable housing, and was funded primarily through
general revenue.  Since 1992, the housing trust fund has been making  loans
and grants to affordable housing development organizations.  It was
originally contemplated that when loan funds were repaid they would be
recycled back to the housing fund to be made available for future housing
development activities, allowing the fund to grow.  But after these funds
have begun to be repaid, the law was unclear as to whether the housing
trust fund is able to use the repayment of loans made with general revenue. 

The House Appropriations Committee has conditionally approved a rider to
allow repayment of housing trust fund loans and other investment income to
be used by the program for the purposes of the fund.  The rider is
contingent upon legislation allowing loan repayments and investment incomes
to be paid back into the fund.  H.B. 2398 allows investment income
(including all interest, dividends, capital gains, or other income from
investments of any portion of the fund) and repayments received on loans
made by the fund to be included as sources of funding for the housing trust
fund, and used for the purposes of the fund, thus enabling the housing
trust fund to recycle loan funds and allowing the fund to grow. 

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 Section 2306.201(b), Government Code, to provide that the
housing trust fund consists of investment income, including all interest,
dividends, capital gains, or other income from investment of any portion of
the fund, and repayments received on loans made from the fund, among other
enumerated sources.  Makes nonsubstantive changes. 

SECTION 2.Emergency clause.
  Effective date: upon passage.