LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 11, 1995



 TO:     Honorable Carlos F. Truan, Chair       IN RE:  Senate BillNo. 1509
         Committee on International Relations,          By: Zaffirini
             Trade & Technology
         Senate
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
1509 (relating to the establishment of colonia self-help centers
in certain counties) this office has determined the following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill would amend Chapter 2306 of the Government Code by
adding a subchapter which would require the Texas Department of
Housing and Community Affairs (TDHCA) to establish self-help
centers for the colonias in Cameron, El Paso, Hidalgo, Starr,
Webb, and any other county that is eligible to receive
Economically Distressed Areas Program (EDAP) funds from the Texas
Water Development Board.  Any county receiving funds from the
TDHCA for self-help centers would be required to provide matching
funds at a level determined by the Department.

Self-help centers would assist low income individuals and
families with home ownership.  TDHCA would be required to
establish an office in the Department to oversee and assist in
the operation of the self-help centers, and to assign staff who
would be responsible for obtaining funding to enable self-help
centers to offer low-interest mortgage financing, grants for
self-help programs, a revolving loan fund for septic tanks, and a
tool lending program.

The Texas Department of Housing and Community Affairs could
implement this program using current sources of revenue, such as    




the federal Community Development Block Grant Program.
 

No significant fiscal implication to the State or units of local
government is anticipated.


Source:   Texas Department of Housing and Community Affairs,
          LBB Staff: JK, PVT, RR