BILL ANALYSIS

Urban Affairs Committee

Engrossed
May 18, 1995
Committee Report (Unamended)

BACKGROUND

Currently, state agencies that receive funds for low income housing
are required to report how that money is allocated in an effort to
prevent inequitable distribution.  Local agencies, however, are not
mandated to report the same information yet they receive
approximately two thirds of such money from the state.  There are
no requirements established for local housing authorities
concerning the disposition of excess housing funds once a housing
project is complete.  Currently, authorities are transferring
excess funds to the general fund instead of continuing to use the
money for low income housing.

PURPOSE

As proposed, S.B. 631 requires a housing finance corporation to
file an annual report with the Texas Department of Housing and
Community Affairs, to include information on mortgage loans for
single and multifamily homes.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the Texas Department of Housing and Community Affairs under
SECTION 3 (Sec. 394.027(a), Local Government Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 394.023(b), Local Government Code, to
authorize the local government to use amounts received under this
subsection only to provide for the housing needs of individuals and
families with incomes of less than 60 percent of the local median
family income.

SECTION 2. Amends Section 394.026(b), Local Government Code, to
make conforming changes.

SECTION 3. Amends Chapter 394C, Local Government Code, by adding
Section 394.027, as follows:

     Sec. 394.027.  ANNUAL REPORT.  (a) Requires a housing finance
     corporation to file a report with the Texas Department of
     Housing and Community Affairs (department) before January 31
     of each year.  Requires the department, by rule, to prescribe
     the form of the report.
     
     (b)  Requires the report to include certain information for
       all single-family home mortgage loans made by the housing
       finance corporation or made as a result of the activities or
       the corporation during the preceding calendar year.  
       
       (c)  Requires the report to include certain information for
       persons residing in multifamily housing units financed by
       the housing finance corporation.
       
       SECTION 4.   Makes application of this Act prospective.

SECTION 5. Effective date:  September 1, 1995.

SECTION 6. Emergency clause.

SUMMARY OF COMMITTEE ACTION

SB 631 was considered by the committee in a formal meeting on May
18, 1995.  The bill was reported favorably without amendment, with
the recommendation that it do pass and be printed and be sent to
the Committee on Local and Consent Calendars, by a record vote of
6 ayes, 0 nays, 0 pnv, and 3 absent.