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


Office of House Bill AnalysisC.S.S.B. 1760
By: Lucio
Urban Affairs
55/17/2001
Committee Report (Substituted)



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.  C.S.S.B. 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

C.S.S.B. 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

July 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. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.S.B. 1760 differs from the original bill by changing the effective date
of the Act, if the constitutional amendment is approved by the voters, from
January 1, 2002, to July 1, 2002.