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.