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.