SRC-AAA S.B. 1363 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1363
By: Barrientos
Intergovernmental Relations
4-20-97
As Filed


DIGEST 

Currently, the Department of Housing and Community Affairs is limited in
its powers with regard to owning property and acquiring real property.
S.B. 1363 amends operations, powers, and duties of the Department of
Housing and Community Affairs. 

PURPOSE

As proposed, S.B. 1363 amends operations, powers, and duties of the
Department of Housing and Community Affairs. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 2306.004, Government Code, to define "contract
for deed" and "person." Redefines "economically depressed or blighted
area," "elderly individual," "mortgage," "public agency," "real-estate
owned contractor," and "reserve fund." Makes conforming changes.  

SECTION 2. Amends Section 2306.021(b), Government Code, to provide that
the Texas Department of Housing and Community Affairs (department) is
composed of the community development division, among other divisions. 

SECTION 3. Amends Section 2306.032, Government Code, to require certain
documents to be maintained, rather than kept in the principal office, by
the department.  Provides that certain meetings are subject to Chapter
551. 

SECTION 4. Amends Section 2306.053, Government Code, to delete a
provision  authorizing  the department to sue and be sued.  Authorizes the
department to execute funding agreements, and to obtain, retain, and
disseminate records in electronic form.  Provides that the department is
subject to Chapter 552. 

SECTION 5. Amends Section 2306.072, Government Code, as follows:

Sec. 2306.072. New heading: ANNUAL STATE LOW INCOME HOUSING REPORT.
Requires the director of the department (director) to prepare an annual
report to be submitted on the department's housing activities for the
preceding year, rather than fiscal year, no later than March 1, of each
year.  Requires the governing board of the department (board) to submit
the report to the lieutenant governor and the speaker, rather than the
legislature. Deletes a provision that the report must contain certain
financial statements, statistical and narrative analysis of the
department's performance, analysis of fair housing opportunities and
analysis of average rents as defined in the comprehensive housing
affordability strategy. Makes nonsubstantive changes. 

SECTION 6. Amends Section 2306.0721, Government Code, to require the
director to prepare and submit to the board an integrated state low income
housing plan by certain date, which must contain estimates on housing
units assisted through the department, a description of state programs,
and  resource allocation plans which target all of the department's
available housing resources. Makes conforming changes. 

SECTION 7. Amends Section 2306.0722,  Government Code, to require the
director to incorporate recommendations with the consolidated plan, rather
than a comprehensive housing affordability strategy and performance
report. 

SECTION 8. Amends Section 2306.073, Government Code, as follows:

Sec. 2306.073. New heading: PUBLIC PARTICIPATION REQUIREMENTS.  Requires
the department to hold two public hearings on the annual state low income
housing plan and report before the director submits the report and the
plan to the board.  Sets forth notice requirements for the hearings.
Makes conforming changes.  

SECTION 9. Amends Section 2306.076(a), Government Code, to authorize the
board to purchase from department funds, liability insurance for employees
of the department. 

SECTION 10. Amends Chapter 2306E, Government Code, to provide a new
subchapter heading, as follows: 

SUBCHAPTER E. New heading: COMMUNITY AFFAIRS AND COMMUNITY 
DEVELOPMENT PROGRAMS

SECTION 11. Amends Subchapter E, Government Code, by adding Section
2306.094, as follows: 

Sec. 2306.094. SERVICES FOR THE HOMELESS.  Requires the department to
administer the state's allocation of certain federal funds for homeless
individuals and families. 

SECTION 12. Amends Section 2306.097, Government Code, to delete a
provision regarding the community affairs division. Makes a conforming
change.  

SECTION 13. Amends Section 2306.099, Government Code, to authorize the
department to enter into an agreement with the Texas Department of
Commerce to reimburse the Texas Department of Commerce for any services on
the portion of the federal community development block grant funds
allocated by the department.   Deletes a provision regarding the Texas
Department of Commerce. Provides that activities undertaken by the Texas
Department of Commerce must be monitored, rather than approved, by the
department. 

SECTION 14. Amends Section 2306.111(a),  Government Code, to require the
department undertaken through the housing finance division, to administer
all of certain federal housing funds or any other affordable housing
program. 

SECTION 15. Amends Section 2306.142, Government Code, to make a conforming
change. 

SECTION 16. Amends 2306.171, Government Code, to require the department to
develop certain policies for families of moderate income, and to work with
counties and for-profit corporation to provide information and assistance.
Makes conforming changes.  

SECTION 17. Amends Section 2306.177, Government Code, to make a conforming
change. 

SECTION 18. Amends Section 2306.201, Government Code, to provide that the
housing trust fund consists of investment income and funds from any other
source, among other funds. 

SECTION 19. Amends Section 2306.202, Government Code, to authorize the
department to use the fund to acquire property to endow the fund,
notwithstanding any other section of this chapter. Sets forth uses of the
fund. Makes a conforming change.  

SECTION 20. Amends Section 2306.207(a), Government Code, to make
conforming changes. 

 SECTION 21. Amends Section 2306.232, Government Code, to make a
conforming change. 

SECTION 22. Amends Chapter 2306K, to provide for a new subchapter heading,
as follows: 

SUBCHAPTER K. New heading: PROPERTY OWNERSHIP AND HOUSING PROGRAMS

SECTION 23. Amends Section 2306.251, Government Code, to authorize the
department to reconstruct, rehabilitate, manage, or operate real property,
for sale or rental to families of moderate income; to preserve publicly
financed or subsidized housing; or to participate in certain risk sharing
programs.  Deletes existing Subsection (b).  Authorizes the department to
use certain fees or proceeds.  Prohibits the department from using certain
amounts of the fund, if the department uses the housing trust fund to
finance real property.  Require the department to submit a report to the
board.  Makes conforming changes. 

SECTION 24. Amends Section 2306.252, Government Code, to delete
Subdivision (3). Requires the housing resource center  to assist in the
development of a housing policy. 

SECTION 25. Amends Section 2306.267, Government Code, to make a conforming
change. 

SECTION 26. Amends Section 2306.270, Government Code, to make a conforming
change. 

SECTION 27. Amends Section 2306.291(a), Government Code, to authorize the
department to purchase or take assignment of other obligations. Makes a
conforming change.  

SECTION 28. Amends Section 2306.351(a), Government Code, to authorize the
department to issue certain 501(c)(3) bonds. 

SECTION 29. Amends Section 2306.357, Government Code, to make a conforming
change. 

SECTION 30. Amends Section 2306.375, Government Code, to limit the
liability of board members and the executive director. 

SECTION 31. Amends Section 2306.411(a), Government Code, to make a
conforming change. 

SECTION 32. Amends Section 2306.412(a), Government Code, to make a
conforming change. 

SECTION 33. Amends Section 2306.491, Government Code, to make a conforming
change. 

SECTION 34. Amends Section 2306.513, Government Code, to delete existing
Subsection (c). 

SECTION 35. Amends Chapter 2306, Government Code, by adding Subchapter BB,
as follows: 

SUBCHAPTER BB. EMERGENCY NUTRITION AND TEMPORARY EMERGENCY
 RELIEF PROGRAM

Sec. 2306.631. DECLARATION OF PUBLIC PURPOSE. Sets forth findings of the
legislature. 

Sec. 2306.632. DEFINITIONS. Defines "applicant," "nonprofit organization,"
and "program." 

Section 2306.633. TEMPORARY EMERGENCY RELIEF FUND.  Sets forth
requirements of the temporary emergency relief fund. 

Sec. 2306.634. APPLICATION.  Sets forth requirements for applying for a
grant-in-aid to establish and administer a program under this subchapter. 

Sec. 2306.635. LOCAL ALLOCATION.  Sets forth requirements for local
allocation. 

 Sec. 2306.636. LOCAL PLAN; DISBURSEMENT.  Sets forth requirements for a
local plan and disbursement of money from the temporary emergency relief
fund. 

Sec. 2306.637. ELIGIBILITY AND  PROVISION OF ASSISTANCE. Sets forth
requirements for eligibility and provisions of assistance for the program. 

Sec, 2306.638. REPORTS; PUBLIC NOTICES.  Sets forth notice requirements
for notices.  

Sec. 2306.639. RELATIONSHIP TO FEDERAL LAW.  Sets forth this Act's
relationship to federal law. 

SECTION 36. Amends Section 2166.003, Government Code, to provide that this
chapter does not apply to certain projects of repair, rehabilitation, or
construction on property owned by the department or the Texas State
Affordable Housing Corporation. 

SECTION 37. Amends Section 2167.001,  Government Code, to provide that
this chapter applies to certain residential property. 

SECTION 38. Repealers: Sections 2306.122 and 2306.143, Government Code
(Housing finance division) and Chapter 34, Human Resources Code (temporary
emergency relief programs). 

SECTION 39. Provides that this Act prevails over another Act of the 75th
Legislature, Regular Session, 1997, relating to nonsubstantive additions
to and corrections in enacted codes. 

SECTION 40. Effective date: September 1, 1997.

SECTION 41. Emergency clause.