BILL ANALYSIS

Senate Research Center	S.B. 2033
88R11769 JG-F	By: Kolkhorst
	Local Government
	4/4/2023
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Under Chapter 2306 of the Government Code, the Texas Department of Housing and Community Affairs (TDHCA) is responsible for administering all federal housing funds provided to the state under the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. Section 12704 et seq.) or any other affordable housing program. Some jurisdictions in the state contend that TDHCA's distribution of federal housing funds can limit certain areas of the state receiving an equitable allocation of these funds.

S.B. 2033 requires funding allocated as a one-time lump sum not be subject to the TDHCA allocation requirements or allocation formula and, instead, be allocated according to federal law.  This legislation was requested by the Office of the Governor to ensure Texas has access to these funds.

As proposed, S.B. 2033 amends current law relating to the allocation of certain federal money provided under the Cranston-Gonzalez National Affordable Housing Act.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 2306.111, Government Code, by adding Subsection (j), as follows:

(j)  Provides that, notwithstanding any other law, money provided to this state under the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. Section 12701 et seq.) as a one-time lump sum for a specified use:

(1)  is not subject to the allocation requirements under Section 2306.111 (Housing Funds) or the allocation formula developed by the Texas Department of Housing and Community Affairs under Section 2306.1115 (Regional Allocation Formula); and

(2)  is authorized to be allocated for the benefit of any area of this state in the manner specified under federal law.

SECTION 2. Effective date: upon passage or September 1, 2023.