BILL ANALYSIS

H.B. 4443

By: Cunningham

Urban Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Current law requires the Texas Department of Housing and Community Affairs (TDHCA) to expend 95 percent of federal housing funds under the Cranston-Gonzalez National Affordable Housing Act in areas of Texas that do not receive these funds directly from the federal government, which are generally Texas' rural areas. Texas received a one-time allocation of $132 million in federal funds through the HOME American Rescue Plan Act, but because the funds are appropriated under the Affordable Housing Act, TDHCA is unable to disburse the funds to the areas most in need. If TDHCA is not directed to disburse funds more efficiently, it risks having to return the funds to the federal government. H.B. 4443 seeks to resolve this issue by providing TDHCA with the flexibility needed to expend the one-time allocations in more populous, urban areas, where many of the qualifying recipients are located.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 4443 amends the Government Code to establish the following with respect to money provided to the state under the federal Cranston-Gonzalez National Affordable Housing Act as a one-time lump sum for a specified use:

· the money is not subject to general allocation requirements for federal housing funds or to the requirement for the Texas Department of Housing and Community Affairs to develop an allocation formula for funds provided under that act; and

· the money may be allocated for the benefit of any area of Texas in the manner specified under federal law.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2023.