SRC-AAA C.S.S.B. 1502 75(R)BILL ANALYSIS Senate Research CenterC.S.S.B. 1502 By: Ellis Finance 4-8-97 Committee Report (Substituted) DIGEST Recently, the Department of Housing and Community Affairs (department) implemented a 501(c)(3) bond program to create and reserve affordable rental housing for low-income Texas families. The department estimates that it will have a surplus of income from the issuance fees under this bond program. This bill directs the department to deposit any excess issuance fees into the Texas Housing Trust Fund to generate affordable housing for low-income families. PURPOSE As proposed, C.S.S.B. 1502 directs the Department of Housing and Community Affairs to deposit any excess issuance fees into the Texas Housing Trust Fund to generate affordable housing for lowincome families. 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 2306.205, Government Code, by adding Subsection (f), to require the Department of Housing and Community Affairs to transfer a surplus of income from the issuance of certain fees under certain programs to the Texas Housing Trust Fund. Defines "501(c)(3) bond program." SECTION 2. Emergency clause. Effective date: upon passage. SUMMARY OF COMMITTEE CHANGES SECTION 1. Amends Section 2306.205, Government Code, requiring the department to transfer into the fund the amount of any issuance fees, asset oversight and servicing fees the department receives. Adds text providing that overhead costs and fund reserves may include insurance or credit enhancement reserves. Expands the definition of "501(c)(3) bond program." SECTION 2. Amends SECTION 2 to provide for an effective date and the emergency clause. SECTION 3. Deletes SECTION 3.