HBA-LCA C.S.H.B. 3326 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3326
By: Gallego
Urban Affairs
4/27/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The Texas Department of Housing and Community Affairs (department)
allocates federal Community Development Block Grant funds on a regional
basis to ensure their equitable distribution throughout the state.  Funds
from state housing-finance programs, however, are not distributed under the
same guidelines, which may cause discrepancies in the distribution of funds
to different areas of the state. 

C.S.H.B. 3326 amends Chapter 2306, Government Code, to require the
department to use a formula for calculating its housing-finance funds
according to the need for housing assistance, and provides that excess
funds available in a uniform state service region may be used for
set-asides. 

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 2306.111, Government Code, by adding Subsections
(d), (e), and (f), as follows: 

(d) Requires the Texas Department of Housing and Community Affairs
(department) to allocate housing funds provided to the state under the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. Section 12701
et seq.), housing trust funds administered by the department under Sections
2306.201-2306.206, Government Code (Housing Trust Fund: Use of Housing
Trust Fund; Rules Regarding Administration of Housing Trust Fund;
Independent Audit of Housing Trust Fund; Transfer of Money to Housing Trust
Fund; Housing Trust Fund not Subject to Texas Trust Code, respectively),
and commitments issued under the federal low-income housing tax credit
program administered by the department under Sections 2306.671-2306.678,
Government Code (Deadlines for Allocation of Low Income Housing Tax
Credits; Scoring of Applications; Sale of Certain Low Income Housing Tax
Credit Property; Fees; Public Information and Hearings on Program,
respectively) to each uniform state service region based on a formula
developed by the department that is based on the need for housing
assistance, provided that such allocations are consistent with applicable
federal and state requirements and limitations.  Requires the department,
if it determines under the formula that an insufficient number of eligible
applications for assistance out of funds and credits allocable under this
subsection are submitted to the department from a particular uniform state
service region, to use the excess funds and credits to that region for
other set-asides. 

(e) Requires the department to include in its annual low income housing
plan under Section 2306.0721 (Low Income Housing Plan) the formula
established under this Subsection (d), and the allocation targets
established under that formula for each uniform state service region. 

(f)  Requires the department to include in its annual low-income housing
report under Section 2306.072 (Annual Low Income Housing Report) the
amounts of funds and credits  allocated to each uniform state service
region in the preceding year for each federal and state program affected by
the requirements of Subsection (d).   

SECTION 2.  Effective date: September 1, 2000.

SECTION 3.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute replaces the original caption "relating to the allocation of
programs maintained by the Texas Department of Housing and Community
Affairs to the state planning regions based on population" with "relating
to the allocation of funding for certain programs maintained by the Texas
Department of Housing and Community Affairs to the uniform state service
regions." 

The substitute modifies the original in SECTION 1, as follows:

Deletes proposed Section 236.0021, Government Code (Housing Assistance
Allocation), relating to the allocation of funds by the Texas Department of
Housing and Community Affairs (department), for a program administered by
its housing finance division, to each geographic planning region (region)
established under Chapter 391, Local Government Code (Regional Planning
Commissions), and to develop and use a formula proportionately based on the
number of qualified households in each region. 

SECTION 1 of the substitute amends Section 2306.111, Government Code, by
adding new: Subsection (d), to require the department to allocate certain
specified funds and commitments to each region, and to use a need-based
allocation formula in compliance with applicable federal and state
requirements and limitations, and providing that in the event of
insufficient applicants from one region, those excess funds and credits
shall be used for other set-asides; Subsection (e), to include in the
department's low-income housing plan that formula and established
allocation targets; and Subsection (f), to include in its low-income
housing report the amounts of funds and credits allocated to each region in
the preceding year for each state and federal program affected by the
requirements of Subsection (d).