HBA-KDB H.B. 1811 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1811 By: Kolkhorst Land & Resource Management 2/26/2001 Introduced BACKGROUND AND PURPOSE The Cranston-Gonzales National Affordable Housing Act (act) provides formula grants to states and localities that communities use to fund a wide range of activities that help build, buy, and rehabilitate affordable housing for rent or home ownership or provide direct rental assistance to low-income people. The majority of the funds that Texas receives are typically given to the larger cities and counties by the Texas Department of Housing and Community Affairs (department) despite the fact that current law explicitly states the department is required to give the highest priority to utilizing these funds for the benefit of non-participating small cities and rural areas that do not qualify to receive funds under the act directly from the United States Department of Housing and Urban Development. House Bill 1811 requires the department to spend 95 percent of the funds it receives under the act on behalf of the non-participating small cities and rural areas. 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. ANALYSIS House Bill 1811 amends the Government Code to require the Texas Department of Housing and Community Affairs to expend at least 95 percent of the federal housing funds provided by the CranstonGonzales National Affordable Housing Act to aid non-participating small cities and rural areas that do not qualify to receive funds under the act directly from the United States Department of Housing and Urban Development. EFFECTIVE DATE September 1, 2001.