Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB1925 by Springer (Relating to the allocation of low income housing tax credits.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1925, As Introduced : an impact of $0 through the biennium ending August 31, 2025.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2024
$0
2025
$0
2026
$0
2027
$0
2028
$0
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from Appropriated Receipts 666
Change in Number of State Employees from FY 2023
2024
($288,843)
3.0
2025
($281,343)
3.0
2026
($281,343)
3.0
2027
($281,343)
3.0
2028
($281,343)
3.0
Fiscal Analysis
The bill would amend the Occupations code to require the Texas Department of Housing and Community Affairs to issue final commitment for an allocation of housing tax credits no later than 90 days after the date a development owner submits to the department the Form 8609 documentation packet also known as the cost certification packet.
Methodology
The bill requires the department to issue final commitment for an allocation of housing tax credits no later than 90 days after the date a development owner submits to the department the Form 8609 documentation packet. Due to the shortened time frame for issuing final commitment, this estimate assumes that the agency would require three additional Asset Managers positions ($71,050 per year per FTE with estimated benefits of $21,231 per FTE). Also included in the estimate are onetime startup technology costs of $7,500 and annual costs of $4,500 for general supplies.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.