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.