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


Office of House Bill AnalysisC.S.H.B. 2398
By: Carter
Urban Affairs
3/20/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, the housing trust fund is the only state authorized program for
affordable housing, and is 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.  Now that these funds have begun to be repaid, the law is
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. C.S.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.



COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2398 modifies the original bill to make a conforming change to
redesignate Subdivision (5) to Subdivision (6) in Section 2306.201(b),
Government Code.