BILL ANALYSIS


                                                    C.S.S.B. 1509
                                                    By: Zaffirini
                                   Int'l Relations, Trade & Tech.
                                                          4-20-95
                                   Committee Report (Substituted)
BACKGROUND

Currently, more than 1,200 colonias exist along the Texas-Mexico
border.  Colonias are substandard, rural subdivisions lacking
adequate water, wastewater, and utility services.  People live in
colonias because affordable housing in the cities is not available. 
As urban areas expand, local governments are confronted with entire
subdivisions of substandard housing, making it difficult for cities
to annex colonias and provide services.

PURPOSE

As proposed, C.S.S.B. 1509 creates colonia self-help centers to
provide home finance assistance, counseling, a tool library,
instruction, and technical assistance on installation and financing
for septic systems.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 2306, Government Code, by adding
Subchapter Z, as follows:

             SUBCHAPTER Z.  COLONIA SELF-HELP CENTERS

     Sec. 2306.581.  DEFINITION.  Defines "colonia," and "community
     action agency."
     
     Sec. 2306.582.  COLONIA SELF-HELP CENTERS:  ESTABLISHMENT. (a) 
     Requires the Department of Housing and Community Affairs
     (department) to establish colonia self-help centers for the
     colonias in El Paso, Hidalgo, Starr, and Webb counties and in
     Cameron County to serve Cameron and Willacy counties. 
     Authorizes the department, if the department determines it
     necessary, to establish a self-help center in any other county
     if the county is designated economically distressed under
     Chapter 17, Water Code.
     
     (b)  Requires the department to attempt to secure
       contributions, services, facilities, or operating support
       from the commissioners court of the county in which the
       self-help center is located to support the operation of the
       center.
       
       Sec. 2306.583.  SELF-HELP CENTERS:  DESIGNATION.  (a) 
     Requires the department to designate a geographic area for the
     services provided by each center and five colonias in each
     service area to receive the concentrated attention from that
     center.
     
     (b)  Authorizes the department to change the designation of
       colonias.
       
       Sec. 2306.584.  COLONIA ADVISORY COMMITTEE.  (a) Requires the
     department to appoint not fewer than five residents of
     colonias to serve as an advisory committee for each center. 
     Requires the members of the advisory committee to be selected
     from lists of candidates submitted to the department by local
     nonprofit organizations and the commissioners court of a
     county that the center serves.
     
     (b) Requires the department to appoint one member to
       represent each colonia in each of the counties in which
       centers are located.  Sets forth criteria the member must
       meet.
       
     Sec. 2306.585.  DUTIES OF COMMITTEE.  (a)  Requires the
     committee to advise the department regarding the needs of the
     community and the operation of the center.
     
     (b)  Requires the committee to meet at least 30 days prior
       to the date a contract is scheduled to be awarded for the
       operation of a center and authorizes the committee to meet
       at other times.
       
     Sec. 2306.586.  SELF-HELP CENTER: PURPOSE AND SERVICES.  (a) 
     Sets forth the purpose of a self-help center.
     
     (b)  Requires a center to set a goal to improve the living
       conditions of the residents of the colonias within a two-year period after a contract is awarded.
       
       (c)  Authorizes a center to serve individuals and families
       of low income and very low income by providing various
       services.  
       
       (d) Prohibits a center from providing grants, financing, or
       mortgage loan services to purchase, build, rehabilitate, or
       finance construction or improvements to a home in a colonia
       if water service and suitable wastewater disposal are not
       available.
       
       Sec. 2306.587.  OPERATION OF SELF-HELP CENTER.  (a)  Requires
     the department to contract for the operation of a center with
     a local nonprofit organization, local community action agency,
     or local housing authority that has demonstrated the ability
     to carry out the functions of a center.
     
     (b)  Authorizes the department and centers to apply for and
       receive public or private gifts or grants.
       
     Sec. 2306.588.  DEPARTMENT LIAISON TO SELF-HELP CENTERS.  (a) 
     Requires the department to designate appropriate staff in the
     department to act as liaison to the centers to assist the
     centers in obtaining funding.
     
     (b)  Requires the department to make a reasonable effort to
       secure an adequate level of funding for various necessary
       center activities.  
       
     Sec. 2306.589.  COLONIA SET-ASIDE FUND.  (a)  Requires the
     department to establish a fund in the department designated as
     the colonia set-aside fund.
     
     (b)  Authorizes the department to use money in the colonia
       set-aside fund for specific activities that assist colonias.
       
       (c)  Authorizes the department to review and approve an
       application for funding from the colonia set-aside fund that
       advances the policy and goals of the state in addressing the
       problems in the colonias.
       
     SECTION 2.     Requires the department to allocate not less than 12.5
percent of the yearly allocation of Community Development Block
Grants funds to the colonia set-aside fund.  Requires the
department to allocate an amount from the colonia set-aside fund
that is not less than 2.5 percent of the yearly allocation of
Community Development Block Grants funds for funding and operation
of the colonia self-help centers.

SECTION 3. Effective date: September 1, 1995.

SECTION 4. Emergency clause.