HBA-MPA C.S.S.B. 1112 76(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.S.B. 1112
By: Shapleigh
Urban Affairs
4/30/1999
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.S.B. 1112 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 all other
regions based on identified need and financial feasibility. 

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 to
use the unused funds or credits to a particular uniform state service
region for all other regions based on identified need and financial
feasibility, if it determines under the formula that an insufficient number
of eligible applications for assistance out of funds or credits allocable
under this subsection are submitted to the department from that region. 

(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

C.S.S.B. 1112 differs from the original in SECTION 1 (proposed Section
2306.111(d), Government Code) by adding language requiring the department
to use excess funds and credits allocated to a particular uniform state
service region  for all other regions based on identified need and
financial feasibility, rather than for other set-asides.