SRC-DBM H.B. 2398 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2398
76R10133  EBy: Carter (Carona)
Intergovernmental Relations
4/26/1999
Engrossed


DIGEST 

Currently, the housing trust fund is the only state authorized program for
affordable housing, and is funded primarily with general revenue.  Since
1992, the housing trust fund has been making loans and grants to affordable
housing development organizations.  Initially, loan funds were to be
reimbursed to the housing fund which would then be made available for
future housing development activities, thus, allowing the fund to grow.
However, now that these funds have begun to be repaid, the law is unclear
as to whether or not the housing trust fund is able to use the funds from
repayment of loans made with general revenue.  H.B. 2398 would set forth
provisions for funding the housing trust fund. 

PURPOSE

As proposed, H.B. 2398 sets forth provisions for funding the housing trust
fund. 

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 2306.201(b), Government Code, to include
investment income among other investments, in the housing trust, including
all interest, dividends, capital gains, or other income from the investment
of any portion of the fund, and repayments received on loans made from the
fund. Makes conforming changes. 

SECTION 2.Emergency clause.
  Effective date: upon passage.