JH C.S.H.B. 802 75(R)BILL ANALYSIS


URBAN AFFAIRS
C.S.H.B. 802
By: Hodge
3-27-97
Committee Report (Substituted)



BACKGROUND 

The Texas Department of Housing and Community Affairs (TDHCA) has recently
begun requiring local housing providers to offer ancillary social
services--known as "tenant services"--as part of their work with TDHCA's
clients. Tenant services are typically similar to services, such as child
care, transportation assistance, adult basic education, computer training,
and job training. These wide ranging services, for public assistance
clients, help them to become self-sufficient.   

The Affordable Housing Report identified tenant services as a positive
factor in determining federal funding for affordable multi-family housing
projects.  Due to this trend, housing finance agencies across the country
are putting more of an emphasis on applicants that include social service
programs for their tenants, with some states, such as Texas and Kansas,
making it a requirement for program funding.  

Increasing coordination of  tenant services among state agency providers
could help Texas serve more people with the state's limited federal funds.
It could also help Texas receive newly available federal child care funds. 

The U.S. Department of Housing and Urban Development (HUD) is sponsoring a
demonstration project, "Moving to Work," aimed at providing tenant
services that make public housing residents more employable. The San
Antonio Housing Authority (SAHA) is one of 15 possible demonstration sites
HUD is considering. HUD will award the $100,000 to $300,000 grants in
February 1997. 

In the last few years, TDHCA has developed several housing programs that
offer tenant services. For example, in August 1996, TDHCA made tenant
services a requirement of properties financed by nonprofit bonds. The
first issue of bonds under this new rule was awarded to the American
Opportunity Foundation/Dallas Fort Worth Affordable Housing Corporation
(AOF/DFW). AOF/DFW purchased four apartment complexes in the Dallas-Fort
Worth area in August 1996 which provide an after-school mentor program 
called the Youth Education Program for  tenant's children. Other services
being considered at the four complexes include credit counseling, computer
training, and job training. 

TDHCA also administers the Tenant-Based Rental Assistance Program (TBRA),
a rental subsidy program targeted at low-income Texans. TBRA is under the
federal Home Investment Partnerships Program (HOME) block grant.  As a
condition for receiving TBRA funds, a local housing authority's program
must provide self-sufficiency training, skills or other  initiatives to
tenants that will help them move off public assistance. Local agencies
must use their own resources to fund these services; no federal TBRA money
can be used for the self-sufficiency portion of the program. 

TDHCA's Section 8 Public Housing program is similar to TBRA and provides
clients with rent subsidy vouchers. In awarding the federal monies to
local administrators, TDHCA awards extra preference for applicants who
include tenant services as part of their program proposal. 

TDHCA's current approach to tenant services has two significant
weaknesses: first, the agency does not offer local providers enough
structure with respect to the tenant services requirement,  and second,
TDHCA is not aggressively identifying tenant services  that could draw
federal funds from agencies other than HUD. Local providers are free to
choose what type of tenant services will be available for TBRA clients,
even when these services may not be those most important to clients or
most closely linked to self-sufficiency.  These services will be even more
important in the context of welfare clients leaving public assistance and
thereby adhering to federal and state welfare reform time limits. 

Furthermore, local providers may not be aware that they could receive
federal matching funds for their efforts.  TDHCA staff agree that tenant
services could be more effective. Staff have expressed enthusiasm for
improving tenant services, but do not have the expertise in
welfare-related programs to structure the programs to fit in with the
state's welfare-to-work emphasis. 

The Personal Responsibility and Work Opportunity Reconciliation Act of
1996, which Congress passed in August 1996, established two block grants
providing child care money. After awarding every state's share, Congress
had a funding surplus. This child care 
money is now available to states with a federal matching rate of 63.13
percent. For fiscal 1997, Texas' share of matching funds is expected to be
$57 million. 

This provision has a large impact for social service providers, including
TDHCA, whose clients receive child care services from local
administrators. Changes such as these must be closely monitored to ensure
eligible programs at all state agencies use local funds to obtain the
maximum available federal match. 

PURPOSE

Directs the Texas Department of Housing and Community Affairs (TDHCA) to
coordinate its tenant social service programs with similar programs
offered through the Texas Workforce Commission (TWC), the Department of
Human Services (DHS), and the Department of Protective and Regulatory
Services (DPRS). 

TDHCA should use a current employee as an interagency liaison among DHS,
DPRS, TWC, and the Legislative Budget Board's Federal Funds Team. This
staff member would become familiar with the strategies and program
guidelines that will allow Texas to use maximum leverage to obtain
additional federal dollars.  

State law would be amended to require TDHCA to prepare a report to the
next regular session of the Legislature discussing the results of TDHCA's
efforts to obtain additional federal dollars and serve more clients
through coordination with the DHS, TWC and other providers of
welfare-related programs.  

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter K, Chapter 2306, Government Code, by adding
Section             2306.253.  
            (a) defines "tenant services" as social services, including
child care, transportation,             and adult basic education, that
are provided to individuals residing in low-income             public
housing under Title IV-A, Social Security Act,42 U.S.C. 601 et seq., and
other similar services. 
            (b) requires the Department of Housing and Community Affairs
to develop a             program for coordinating the efforts of  state
workforce and welfare agencies with             an emphasis on obtaining
federal funds for tenant services. 
            (c) designates a TDHCA's employee as the tenant services
program coordinator.              The coordinator shall serve as a liaison
to the Texas Workforce Commission, the             Department of Human
Services, the Department of Protective and Regulatory
Services, and the Legislative Budget Board on matters related to the
coordination             of tenant services programs. 
            (d) requires the coordinator to meet in Austin at least
quarterly with representatives             of the Texas Workforce
Commission, the Department of Human Services, the             Department
of Protective and Regulatory Services, and the Legislative Budget
Board to discuss efforts to obtain funds, update coordination efforts, and
report on             the number of persons receiving tenant services in
this state. 
            (e) requires the TDHCA to file, no later than December 1,
preceding a regular             session, a report to the appropriate state
agencies and legislative committees             discussing the
department's program under this section. 

SECTION 2.  Emergency Clause



COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute redefines the department's duty to coordinate programs,
especially those eligible for federal funding.  It also expands the duties
of the tenant services program coordinator to include a reporting
responsibility.