LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 2, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 1852
Committee on State Affairs By: Armbrister
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB1852 ( Relating
to the creation and operation of the Texas Affordable Housing
Commission.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB1852-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(148,545) to General Revenue Related Funds
through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
This bill amends Subtitle G, Title 10 in the Government Code
by adding Chapter 2310 which creates the Texas Affordable Housing
Commission as an agency of the state. This Commission would
be composed of 12 members appointed by the Governor and would
be subject to sunset provisions. The commission would be responsible
for evaluating state and local regulations and policies which
unnecessarily increase costs of constructing or rehabilitating
affordable housing or limit the availability of affordable housing.
The commission would also be charged with establishing a statewide
housing policy using the results of the statewide evaluations
restricting affordable housing. This bill would require the
commission to submit a report every other year recommending
actions for revising regulations and policies that increase
housing costs or limit the availability of affordable housing.
The
commission would also be required to submit reports detailing
all funds received during the fiscal year and be subject to
an annual financial audit by the state auditor.
Methodolgy
The costs related to this bill would be limited to the development
of the required biennial reports. These reports would evaluate
the housing regulations and policies across the state's 254
counties divided into 11 regions. It is estimated that the
commission would report on the evaluations in 3 regions (an
average of 69 counties) per reporting period. The cost of these
reports is estimated at $138,545 in each of the years the commission
is required to provide evaluation reports. Travel reimbursement
costs for commission members is estimated at $5,000 per year.
This
analysis does not include any additional FTEs since the bill
states that the Department of Housing and Community Affairs
may provide staff to the commission subject to available resources.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable
Savings/(Cost)
from General
Revenue Fund
0001
1998 ($143,545)
1998 (5,000)
2000 (143,545)
2001 (5,000)
2002 (143,545)
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 ($143,545)
1999 (5,000)
2000 (143,545)
2001 (5,000)
2002 (143,545)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect. The biennial evaluation
reports are expected to continue with follow-up evaluations.
Local governments would be expected to provide any required
local housing regulation and policy information to the commission
for comprehensive evaluation.
No significant fiscal implication
to units of local government is anticipated.
Source: Agencies: 332 Department of Housing and Community Affairs
304 Comptroller of Public Accounts
LBB Staff: JK ,JD ,TL ,RA