HBA-MSH S.B. 1287 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1287
By: Carona
Urban Affairs
4/23/2001
Engrossed



BACKGROUND AND PURPOSE 

The Texas Housing Finance Corporations Act is unclear regarding the allowed
uses of bond proceeds by a housing finance corporation. Senate Bill 1287
amends the definition of "residential development" and authorizes a housing
finance corporations to use bond proceeds for any cost associated with
providing affordable housing.  

RULEMAKING AUTHORITY

It is the opinion of the Office of Senate Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

Senate Bill 1287 amends the Local Government Code to include in the
definition of "residential development" as it relates to housing finance
corporations the acquisition, construction, reconstruction, rehabilitation,
repair, alteration, improvement, or extension of any facilities used for
the purpose of delivering social services, including child care,
transportation, and basic adult education, that are provided to individuals
in low income housing. The bill also authorizes a housing finance
corporation to issue bonds to defray in whole or in part any costs
associated with the provision of decent, safe, and sanitary housing and
nonhousing facilities that are an integral part of or are functionally
related to an affordable housing project.  

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.