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.