HBA-TBM C.S.H.B. 3414 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3414 By: McClendon Urban Affairs 4/17/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Modern housing developments have begun to combine commercial space with residential space, providing residents with services such as laundry, day care, health care, and retail stores. Under current law, public housing authorities are not authorized to incorporate commercial tenants into their projects even though they could provide valuable services to tenants while subsidizing the cost of a project. C.S.H.B. 3414 authorizes public housing authorities to incorporate commercial and residential space in housing development projects. 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 C.S.H.B. 3414 amends the Local Government Code to authorize a public housing authority to form a partnership or another legal entity to raise capital for a housing project to be owned by the partnership or other legal entity, and to acquire, construct, lease, or manage commercial space incidental to a mixedfinance housing project if certain restrictions are met. EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 3414 differs from the original by authorizing a housing authority to acquire, construct, lease, or manage commercial space incidental to a mixed-finance housing project if the commercial space occupies less than 20 percent of the square footage of the housing project and can reasonably be expected to be used by the residents of the housing project and if the housing project is designed in a manner that minimizes the noise, safety, and traffic impact of the commercial space on the residential space. The original authorized a housing authority to take over, construct, lease, or manage commercial space incidental to a project with no restrictions.