HBA-JEK S.B. 1760 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1760
By: Lucio
Urban Affairs
5/9/2001
Engrossed



BACKGROUND AND PURPOSE 

Under current law, the housing trust fund (fund) administered by the Texas
Department of Housing and Community Affairs helps provide affordable
housing units for low and very low-income households and is the only
state-authorized affordable housing program.  The fund consists of
appropriations, transfers, unencumbered fund balances, and private and
public gifts and grants.  The growing demand for low-income housing in
Texas is exceeding the resources available in the fund.  Senate Bill 1760
increases the money available to the fund by authorizing the issuance of
general obligation bonds. 

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

Senate Bill 1760 amends the Government Code to authorize the governing
board of the Texas Department of Housing and Community Affairs (board) to
provide by resolution for the issuance of negotiable general obligation
bonds as authorized by the Texas Constitution.  The bill authorizes the
housing trust fund (fund) to be placed with a depository selected in
conformance with the terms of a bond indenture.  The bill includes in the
fund proceeds of general obligation bonds issued as provided by the board.
The bill prohibits the net effective interest rate on the general
obligation bonds from exceeding the maximum interest rate allowable for
public securities. 

EFFECTIVE DATE

January 1, 2002, if the constitutional amendment relating to the issuance
of bonds to augment funds for low and very low-income housing is approved
by the voters.