HBA-JEK C.S.H.B. 3449 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3449
By: Gallego
Urban Affairs
4/19/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The Texas Department of Housing and Community Affairs (TDHCA) works to
ensure affordable housing for low-income families, promote community
development and assistance, and regulate the state's manufactured housing
industry.  The 72nd Legislature created TDHCA in 1991 by  merging the Texas
Department of Community Affairs, the Texas Housing Agency, and the
Department of Commerce's Community Development Block Grant Program.  TDHCA
allocates and awards funds to for-profit and nonprofit organizations, local
governments, lenders, and developers to assist low income individuals and
families in obtaining affordable housing.  TDHCA also provides funding for
services designed to fund neighborhood infrastructures, address poverty,
repair and weatherize homes, and assist very low income individuals in
paying their utility bills.  TDHCA is subject to the Texas Sunset Act and
will be abolished on September 1, 2001 unless continued by the legislature.
In its review of TDHCA, the Sunset Advisory Commission found that while
TDHCA is funding affordable housing and assisting many communities,
problems exist in TDHCA's ability to allocate resources to meet the state's
most pressing housing needs. C.S.H.B. 3449 continues TDHCA for a two-year
probationary period and contains the Sunset Advisory Commission's
recommendations to better position TDHCA to address the state's housing and
community support services needs. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the governing board of the Texas
Department of Housing and Community Affairs in SECTION 1.05 (Section
2306.032, Government Code), SECTION 1.06 (Section 2306.0321, Government
Code), SECTION 1.08 (Section 2306.052, Government Code), SECTION 1.17
(Section 2306.1113, Government Code), SECTION 2.02 (Section 2306.142,
Government Code), and SECTION 8.01 (Section 2306.6722, Government Code); to
Texas Department of Housing and Community Affairs in SECTION 1.16 (Sections
2306.111, Government Code), SECTION 1.18 (Section 2306.1711, Government
Code), SECTION 1.19 (Section 2306.252, Government Code), SECTION 1.20
(Section 2306.257, Government Code), SECTION 1.26 (Section 2306.6741,
Government Code), SECTION 2.02 (Section 2306.142, Government Code), SECTION
2.10 (Section 2306.755, Government Code), SECTION 2.13 (Sections 2306.785
and 2306.786, Government Code), SECTION 4.02 (Section 2306.0724, Government
Code), and SECTION 8.01 (Section 2306.6704, Government Code); to the
Manufactured Housing Board in SECTION 1.25 (Sections 2306.6010, 2306.6020,
and 2306.6023, Government Code) and SECTION 1.33 (Section 7, Article 5221f,
V.T.C.S.); and to the executive committee of the Office of Rural Community
Affairs in SECTION 1.27 (Section 487.052, Government Code) of this bill. 

ANALYSIS

C.S.H.B. 3449 amends the Government Code to continue the Texas Department
of Housing and Community Affairs (TDHCA) until September 1, 2003 (SECTION
1.03, Sec. 2306.022, Government Code), and to set forth standard Sunset
Advisory Commission recommendations regarding appointments to the governing
board of TDHCA (board),  public representation on the board, conflicts of
interest, board member training, board member removal, designation of a
presiding officer of the board by the governor, standards of conduct, the
maintaining of written complaints, and policy implementation by the board
(SECTION 1.03, Secs. 2306.027, 2306.028, 2306.033, 2306.034, and 2306.035);
SECTION 1.04, Sec. 2306.030; SECTION 1.07, Sec. 2306.051; SECTION 1.09,
Sec. 2306.061; and SECTION 1.10, Sec. 2306.066, Government Code). 

Governing Board

C.S.H.B. 3449 restructures the board to include seven rather than nine
members with demonstrated interest in housing and community support
services issues who broadly reflect the economic, cultural, and social
diversity of the state (SECTION 1.03, Secs. 2306.024 and 2306.027).  The
bill streamlines the process by which the executive director of TDHCA
(director) is authorized to create divisions with the approval of the board
to increase the organizational flexibility of TDHCA (SECTION 1.07, Sec.
2306.0521).  

Public Hearing and Input

C.S.H.B. 3449 provides that all materials in the possession of TDHCA that
are relevant to any matter proposed for discussion at a board meeting must
be made available to the public at least seven days before the meeting, and
sets forth provisions regarding the agenda for board meetings.  The bill
requires TDHCA to develop and implement rules to give the public a
reasonable amount of time for testimony at board meetings (SECTION 1.05,
Sec. 2306.032).  The bill also requires the board to develop and implement
rules outlining a formal process to appeal board decisions and specifies
what the rules must include (SECTION 1.06, Sec. 2306.0321).  The bill
requires TDHCA to consolidate its public hearings into a single public
hearing process to provide for a hearing on specified TDHCA programs and
the state low income housing plan in each  uniform service region of the
state on at least an annual basis (SECTION 1.11, Sec. 2306.0661 and SECTION
1.15, Sec. 2306.0723). 

C.S.H.B. 3449 requires TDHCA to provide for public input before adopting
rules that outline formal rulemaking procedures for the low income housing
tax credit program and the multifamily housing mortgage revenue bond
program (SECTION 1.18, Sec. 2306.1711).  The bill requires the board to
adopt rules and the director to develop and implement a program to train
employees about public information requirements (SECTION 1.08, Sec.
2306.052). 

Strategic Planning

C.S.H.B. 3449 modifies the process by which TDHCA must develop a strategic
plan to provide that it must assess and meet affordable housing and
community support services needs for populations in each uniform state
service region and requires TDHCA to employ or contract with a regional
development coordinator to address affordable housing and community
development (SECTION 1.13, Sec. 2306.0721; SECTION 1.14, Sec. 2306.0722;
and SECTION 5.01, Sec. 2306.079).  The bill requires TDHCA to use the
strategic plan to allocate funds to meet regional housing needs and
community service priorities, and requires TDHCA by rule to adopt a policy
providing for the reallocation of financial assistance administered by
TDHCA if TDHCA's obligation with respect to that assistance is prematurely
terminated (SECTION 1.16, Sec. 2306.111). 
  
The bill requires TDHCA to create a uniform application and funding cycle
for single-family and multifamily housing programs to support projects that
meet established needs, and requires TDHCA to establish an executive award
and review advisory committee that includes the director to make funding
allocation decisions.  The bill prohibits certain persons, including an
applicant or a related party as defined by board rule, from communicating
with a member of the board or advisory committee outside of a public
hearing during the period between the date the project application is filed
and the final board decision with respect to any approval of that
application (SECTION 1.17, Secs. 2306.1111-2306.1113). 

C.S.H.B. 3449 adds outreach, educational, assistance, clearinghouse, and
governmental affairs duties to the services TDHCA is required to provide
through the housing resource center.  The bill requires TDHCA to adopt
rules that are necessary and proper to carry out programs and
responsibilities assigned by the legislature or the governor (SECTION 1.19,
Sec. 2306.252).  The bill requires the director to appoint a  database
information specialist to provide for the effective and efficient
dissemination to the public of information regarding affordable housing and
community development (SECTION 5.01, Sec. 2306.080). 

Multifamily Housing Finance

C.S.H.B. 3449 authorizes a qualified nonprofit organization to compete in
any low income housing tax credit allocation pool.  The bill requires TDHCA
to establish policies and procedures no later than November 1, 2001 to
support the preservation of multifamily low income housing and by rule to
establish procedures to monitor low income housing tax credit properties
that refuse to admit individuals and families receiving Section 8
assistance.  The bill also requires TDHCA by rule to establish enforcement
mechanisms with respect to those properties, including a range of sanctions
to be imposed against property owners (SECTION 1.26, Secs. 2306.6741 and
2306.6761; SECTION 3.01, Sec. 2306.008; SECTION 3.02, Sec. 2306.185; and
SECTION 3.07).  The bill deletes the requirement that 50 percent of the
funds from federal 501(c)(3) bonds be allocated for new construction
(SECTION 1.21, Sec. 2306.358). 

C.S.H.B. 3449 requires TDHCA to establish two classes of priorities of
developments to preserve multifamily housing.  The bill requires TDHCA to
establish and administer a housing preservation incentives program to
provide incentives through loan guarantees, loans, and grants for the
acquisition and rehabilitation of priority multifamily housing developments
(SECTION 3.05, Secs. 2306.802 and 2306.805). 

The bill authorizes property owners disposing of certain multifamily
housing developments to do so only after providing notice by mail of the
owner's intent to the residents of the development and TDHCA. The bill also
prohibits certain property owners from selling, leasing, or otherwise
disposing of a multifamily housing development or taking any other action
that causes the disruption or discontinuance of the development's federal
insurance or assistance or the provision of low-income housing assistance
to the development's residents (SECTION 3.06, Secs. 2306.852 and 2306.853). 

Fair Housing and Housing Preservation

C.S.H.B. 3449 authorizes TDHCA to provide assistance through a housing
program only to an applicant who certifies the applicant's compliance with
federal anti-discrimination laws.  The bill requires TDHCA to adopt rules
governing the certification process (SECTION 1.20, Sec. 2306.257).  The
bill requires TDHCA to by rule adopt a policy to identify reasonable
Section 8 admittance policies for low income housing tax credit properties
and to establish monitoring and enforcement policies relating to the
refusal of such properties to admit tenants with Section 8 vouchers
(SECTION 1.26, Sec. 2306.6741; and SECTION 3.04, Sec. 2306.269).  The bill
prohibits TDHCA from financing a housing development undertaken by a
housing sponsor unless the housing sponsor is not or will not enter into a
contract for the development with a housing developer on TDHCA's debarred
list (SECTION 7.01, Sec. 2306.223). 

C.S.H.B. 3449 requires TDHCA to develop and implement the affordable
housing preservation program to preserve affordable housing in this state
(SECTION 1.20, Sec. 2306.256). The bill requires TDHCA to support the
preservation of affordable housing for individuals with special needs and
individuals or families of low income (SECTION 3.01, Sec. 2306.008).  The
bill authorizes TDHCA to use any available revenue to provide loans and
grants under the affordable housing preservation program (SECTION 3.03,
Sec. 2306.2561). 

C.S.H.B. 3449 requires TDHCA to require the owner of each housing
development that receives financial assistance from TDHCA and that contains
20 or more living units to submit an annual fair housing sponsor report,
and requires TDHCA to adopt rules regarding the procedure for filing a
report (SECTION 4.02, Sec. 2306.0724).  The bill also requires TDHCA to
establish a system that requires owners of state or federally assisted
housing developments with 20 or more housing units to report information
regarding housing units designed for persons with disabilities and make
such information available to the public (SECTION 4.04, Sec. 2306.078). 

 C.S.H.B. 3449 requires TDHCA to expend at least 95 percent of federal
housing funds provided under the Cranston-Gonzalez National Affordable
Housing Act (HOME) for the benefit of non-participating small cities and
rural areas that do not qualify to directly receive funds under HOME, and
requires all funds not set aside to be used for persons with disabilities
who live in areas other than small cities and rural areas (SECTION 6.01,
Sec. 2306.111). 

Colonias

C.S.H.B. 3449 requires the board to establish a colonia resident advisory
committee (committee) to advise the board regarding colonia matters and to
solicit and review public comments regarding the needs of colonia
residents, and requires TDHCA to prepare a biennial action plan addressing
policy goals for colonia programs, strategies to meet the policy goals, and
the projected outcomes with respect to those policy goals.  The bill also
requires the board to appoint and oversee the committee, and sets forth the
composition of the committee.  The bill requires the Office of Rural
Community Affairs to enter into an interagency agreement with TDHCA to
reimburse TDHCA for providing on behalf of the office oversight,
management, and any other services on the portion of the federal community
development block grant funds allocated for colonia self-help centers
(SECTION 1.23, Secs. 2306.584, 2306.585, 2306.590, and 2306.591; and
SECTION 1.28, Sec. 487.1021).  The bill authorizes a colonia resident to
apply for any TDHCA direct loan or grant program through a self-help
center, and authorizes TDHCA to contribute money to the colonia set-aside
fund from any available source of revenue that TDHCA considers appropriate
to implement the purposes of the self-help centers (SECTION 2.05, Sec.
2306.586; and SECTION 2.07, Sec. 2306.589).  

C.S.H.B. 3449 requires TDHCA to establish the colonia model subdivision
program to promote the development of new, high-quality residential
subdivisions that provide alternatives to substandard colonias and
affordable housing options for persons who would otherwise move into
colonias.  The bill requires TDHCA to establish a colonia model subdivision
revolving loan fund.  The bill authorizes TDHCA to transfer money into the
fund from any available source of revenue and prohibits TDHCA from using
more than $2 million each state fiscal year from the set-aside for colonias
to provide loans under the colonia model subdivision program.  The
provisions authorizing TDHCA to transfer money to the fund and limiting use
of more than $2 million to provide loans expire on August 31, 2010.  The
bill sets forth authorized uses and terms of a loan made under the colonia
model subdivision program.  The bill requires TDHCA to adopt rules for
administering the colonia model subdivision program (SECTION 2.13, Secs.
2306.782, 2306.783, 2306.785, and 2306.786). 

The bill amends the Tax Code to specify which organizations are entitled to
an exemption from taxation of unimproved real property, buildings, or
tangible real property under the colonia model subdivision program (SECTION
2.14, Sec. 11.184). 

Office of Rural Community Affairs

C.S.H.B. 3449 amends the Government Code to create the Office of Rural
Community Affairs (office) to administer the state's allocation of federal
funds from the community development block grant program and sets forth
provisions regarding the composition and terms of the executive committee
that is the governing body of the office (SECTION 1.27, Secs. 487.001,
487.021-487.030, and 487.051-487.054; and SECTION 1.28, Secs.
487.101-487.103).  The bill sets forth standard Sunset Advisory Commission
recommendations for the office regarding equal employment, conflicts of
interest, executive committee member training, executive committee member
removal, policy implementation by the executive committee, public
testimony, the development of an equal employment policy, standards of
conduct, and the maintaining of written complaints (SECTION 1.27, Secs.
487.022-487.025 and 487.027-487.030).  The bill authorizes the executive
committee of the office to adopt rules as necessary to fulfill its duties
(SECTION 1.27, Sec. 487.052). 



 Manufactured Housing Board

C.S.H.B. 3449 amends the Government Code and the Texas Manufactured Housing
Standards Act to establish the Manufactured Housing Board (housing board)
as an independent entity within TDHCA that is administratively attached to
TDHCA.  The bill sets forth provisions for the composition,  terms of
membership, and reimbursement of members of the housing board as well as
the sharing of housing board and TDHCA personnel, equipment, and
facilities.  The bill also sets forth standard Sunset Advisory Commission
recommendations regarding policy implementation by the housing board,
public representation on the housing board, the designation of a presiding
officer of the housing board by the governor, conflicts of interest, the
maintaining of written complaints, housing board member training, housing
board member removal, standards of conduct, public testimony, equal
employment, and the development of an equal employment policy.   

C.S.H.B. 3449 requires reasonable notice of all housing board meetings to
be given as prescribed by housing board rule.  The bill requires the
legislature to separately appropriate money to the housing board within the
appropriations to TDHCA, and authorizes the housing board to accept gifts
and grants of money or property.  The bill requires the housing board to
employ a division director and requires the division director of the
housing board to provide to employees of TDHCA's manufactured housing
division information and training regarding the state employee incentive
program.  The bill requires the housing board rather than the director to
adopt rules to administer and enforce the manufactured housing program, and
rules relating to the administrative sanctions that may be enforced against
a person regulated by the manufactured housing division of TDHCA, rules to
adopt a system under which manufactured housing licenses expire on various
dates during the year, and other rules necessary to enforce housing board
provisions.  The bill also prohibits the housing board from adopting rules
that restrict competitive bidding or advertising, restrict the use of a
trade name in advertising, and restrict or relate to specified advertising
practices.  The bill sets forth provisions relating to the expiration and
renewal of a manufactured housing license, and provisions authorizing the
housing board to contract with nonprofit and educational entities to
conduct continuing education programs for license holders (SECTION 1.25,
Secs. 2306.60012306.6023, Government Code; and SECTIONS 1.33 and 1.35, Art.
5221f,  V.T.C.S.). 

Bonds

C.S.H.B. 3449 amends the Government Code to require TDHCA if authorized by
the board to issue single-family mortgage revenue bonds to make home
mortgage credit available to economic and geographic submarkets of
borrowers who are substantially underserved.  The bill requires the board
by rule to adopt a methodology for determining through a market study
reviewed by the Bond Review Board of the home mortgage credit needs in
underserved economic and geographic submarkets in the state.  Subject to
the identification of a satisfactory market volume demand through the
market study, the bill requires TDHCA to allocate not less than 40 percent
of the total single-family mortgage revenue bond loan volume to meet the
credit needs of borrowers in underserved economic and geographic submarkets
in each state fiscal year beginning on September 1, 2002 (SECTION 2.02,
Sec. 2306.142).  The bill sets forth provisions for an alternative to the
United States Department of Housing and Urban Development subprime lender
list (SECTION 2.03, Sec. 2306.143). 

Loans

C.S.H.B. 3449 deletes the provision that an owner-builder must reside with
at least two other persons related to the owner-builder to be eligible for
an owner-builder loan (SECTION 2.08, Sec. 2306.753). The bill increases the
maximum amount of an owner-builder loan from $25,000 to $30,000 (SECTION
2.09, Sec. 2306.754).  The bill requires TDHCA by rule to adopt procedures
for the certification of nonprofit owner-builder housing programs
(program), and prohibits TDHCA from using more than 10 percent of the
revenue available for owner-builder loans to enhance the ability of
tax-exempt organizations to implement the purposes of the program (SECTION
2.10, Sec. 2306.755; and SECTION 2.11, Sec. 2306.758). 

 The bill requires TDHCA to establish an owner-builder revolving loan fund
in TDHCA for the sole purpose of funding owner-builder loans, and requires
TDHCA to transfer to the fund at least $3 million each state fiscal year
until August 31, 2010 (SECTION 2.12, Sec. 2306.7581). 

Low Income Housing Tax Credit Program

C.S.H.B. 3449 sets forth provisions regarding the low-income housing tax
credit program, including eligibility requirements, the application
process, application fees, the application log, the evaluation of
applications, the allocation of housing tax credits, the appeal of a TDHCA
decision, public information and hearings, and housing tax credit and
ownership transfers (SECTION 8.01, Secs. 2306.6701-2306.6713,
2306.6716-2306.6718, 2306.67021, and 2306.67022).  The bill modifies
provisions regarding the scoring of applications and changes deadlines for
the allocation of low income housing tax credits (SECTION 8.01, Secs.
2306.6726 and 2306.6727).  

C.S.H.B. 3449 requires TDHCA to set aside for at-risk developments not less
than 15 percent of the housing tax credits available for allocation in the
calendar year (SECTION 8.01, Sec. 2306.6714).  The bill requires the board
by rule to adopt a policy providing for the debarment of a person from
participation in the low income housing tax credit program.  The bill
prohibits TDHCA from excluding individuals or families from admission to a
development supported with a housing tax credit allocation because the
individual or family receives Section 8 assistance, and requires any
development supported with a housing tax credit allocation to comply with
the accessibility standards required under the federal Rehabilitation Act
of 1973.  The bill requires TDHCA to jointly administer set-asides for
rural areas with the rural development agency (SECTION 8.01, Secs.
2306.6722-2306.6725). 

Affordable Housing Needs Assessment

C.S.H.B. 3449 requires TDHCA in conjunction with the office of the
comptroller to complete an assessment of the present and future affordable
housing needs of the border region and the uniform state service regions.
The bill authorizes TDHCA to use any available revenue to complete the
assessment, and authorizes TDHCA to contract with a research center, public
senior college, or university to make the assessment.  The bill requires
TDHCA to submit a report of its findings to the governor, the lieutenant
governor, and the legislature not later than the 180th day after the date
the relevant information is released by the United States Census Bureau
(SECTION 9.01, 2306.882-2306.885). 

State Ceiling

C.S.H.B. 3449 sets forth provisions for allocation of the state ceiling
before August 15 of each year if the state ceiling is computed on the basis
of $75 per capita or a greater amount, increasing to 23 percent the portion
of the state ceiling that is available for reservations by issuers of
qualified residential rental project bonds (SECTION 10.01, Sec. 1372.022).
The bill sets forth provisions regarding the portion of the state ceiling
available for issuers of qualified residential rental project bonds until
August 15, and requires the board to grant reservations so that not more
than 50 percent of the set-aside amount for TDHCA is used for proposed
projects located in qualified census tracts.   The bill requires the board
before June 1 to apportion the amount of state ceiling set aside for
housing finance corporations among the uniform state service regions
according to the percentage of the state's population that resides in each
of those regions (SECTION 10.02, Sec. 1372.0231). 

C.S.H.B. 3449 modifies provisions regarding the maximum amount of the state
ceiling that may be reserved before August 15 by a housing finance
corporation for the issuance of qualified mortgage bonds and sets forth
provisions relating to the failure of a housing finance corporation to
utilize an allocated amount of the state ceiling (SECTION 10.03, Sec.
1372.026; and SECTION 10.04, Sec. 1372.0261). 

Repealers

C.S.H.B. 3449 repeals provisions regarding places on the board, the
separation of the duties of the housing  finance division from community
affairs division and other divisions, the duties of TDHCA through the
community affairs division, the authority of a licensed real estate broker
or salesperson to act as a manufactured housing broker or salesperson
without being licensed or posting a surety bond or other security,  and the
authority of the director to assign functions and duties to the various
offices and divisions, to provide for additional offices, and to reorganize
TDHCA when necessary to improve efficiency or effectiveness (SECTIONS 1.45
and 1.46). 

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 3449 differs from the original bill by amending the Government
Code to set forth provisions for allocation of the state ceiling (SECTION
10.01, Secs. 1372.022; and SECTION 10.02, Sec. 1372.0231). 

The substitute expands upon the required training for a member of the
governing board (board) of the Texas Department of Housing and Community
Affairs (TDHCA) (SECTION 1.03, Sec. 2306.028).  The substitute requires
TDHCA by rule to adopt a policy providing for the reallocation of financial
assistance administered by TDHCA, and to establish a uniform application
and funding cycle for its single-family housing programs (SECTION 1.16,
Sec. 2306.111 and SECTION 1.17, Sec. 2306.1111).  The substitute adds the
executive director of TDHCA to the membership of the executive award and
review advisory committee (SECTION 1.17, Sec. 2306.1112). 

C.S.H.B. 3449 prohibits certain persons from communicating with a member of
the board or the executive award and review advisory committee for the
period beginning with the filing of a project application and ending with
the board's decision about the application (SECTION 1.17, Sec. 2306.1113).
The substitute expands the services TDHCA is required to provide through
the housing resource center (SECTION 1.19, Sec. 2306.252).  The substitute
requires the board rather than TDHCA to appoint the members of a colonia
resident advisory committee (SECTION 1.23, Sec. 2306.584). 

The substitute sets forth provisions regarding the administration of the
low income housing tax credit program (SECTION 8.01).  The substitute
requires the Office of Rural and Community Affairs to enter into an
interagency agreement with TDHCA to reimburse TDHCA for providing
oversight, management, and any other services on the portion of the federal
community development block grant funds allocated for colonia self-help
centers (SECTION 1.28, Sec. 487.1021). 

The substitute provides that the private records of a license holder or
other person that are required or obtained by TDHCA in connection with the
investigation of a complaint to the manufactured housing division of TDHCA
are confidential (SECTION  1.25, Sec. 2306.6022). The substitute removes
provisions regarding provisional manufactured housing licenses and the
waiver of a prerequisite for a manufactured housing license.  The
substitute authorizes the Manufactured Housing Board to contract with a
private, nonprofit, tax-exempt organization or educational institution to
prepare or administer a continuing education program for its license
holders (SECTIONS 1.34 and 1.35).   

C.S.H.B. 3449 requires the board by rule to adopt a market study reviewed
by the Bond Review Board to determine the home mortgage credit needs in
underserved economic and geographic submarkets in the state, and requires
TDHCA if authorized by the board to issue single-family mortgage revenue
bonds (SECTION 2.02, Sec. 2306.142).  The substitute establishes the
colonia model subdivision program and the owner-builder revolving loan fund
(SECTION 2.12-2.14).  The substitute amends the Tax Code to specify
organizations entitled to exemptions from taxation under the colonia model
subdivision program (SECTION 2.14, Sec. 11.184). 

The substitute amends the Government Code to set forth affordable housing
preservation provisions and requires TDHCA to establish a housing
preservation incentives program.  The bill requires TDHCA to  identify,
prioritize, and preserve multifamily housing developments that are at risk
of losing their low-income use restrictions and subsidies (SECTION 3.05,
Sec. 2306.803 and 2305.805).  The bill prohibits a property owner from
disposing of a multifamily housing development if that action will disrupt
the development's federal insurance or assistance or the provision of
assistance to residents of the development, and requires a property owner
who takes an action to dispose of the development to complete a notice of
intent (SECTION 3.06, Secs. 2306.852 and 2306.853). 

C.S.H.B. 3449 establishes reporting requirements for owners of housing
developments that contain 20 or more living units regarding fair housing
and housing for persons with disabilities (SECTION 4.02, Sec. 2306.0724;
and SECTION 4.04, Sec. 2306.078).  The substitute requires TDHCA to employ
or contract with a regional development coordinator for each uniform state
service region of the state and requires TDHCA to appoint a database
information specialist to provide for the dissemination of information
regarding affordable housing and community development (SECTION 5.01, Secs.
2306.079 and 2306.080).  The substitute requires TDHCA to assess the
present and future affordable housing needs of the border region and the
uniform state service regions (SECTION 9.01, Sec. 2306.882).  The
substitute prohibits TDHCA from financing a housing development of a
housing sponsor unless the housing sponsor is not or will not contract with
a developer on TDHCA's debarred list (SECTION 7.01, Sec. 2306.223).