HBA-MPA H.B. 2516 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2516 By: Ehrhardt Urban Affairs 3/15/1999 Introduced BACKGROUND AND PURPOSE Currently, the housing trust fund is the only state authorized program for affordable housing, and is funded primarily through general revenue. Since 1992, the housing trust fund has been making loans and grants to affordable housing development organizations. It was originally contemplated that when loan funds were repaid they would be recycled back to the housing fund to be made available for future housing development activities, allowing the fund to grow. Now that these funds have begun to be repaid, the law is unclear as to whether the housing trust fund is able to use the repayment of loans made with general revenue. The House Appropriations Committee has conditionally approved a rider to allow repayment of housing trust fund loans and other investment income to be used by the program for the purposes of the fund. The rider is contingent upon legislation allowing loan repayments and investment incomes to be paid back into the fund. H.B. 2516 allows investment income (including all interest, dividends, capital gains, or other income from investment of any portion of the fund) and repayment received on loans made by the fund to be included as sources of funding for the housing trust fund, and used for the purposes of the fund, this enables the housing trust fund to recycle loan funds and allows the fund to grow. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 2306.201(b), Government Code, to provide that the housing trust fund consists of investment income, including all interest, dividends, capital gains, or other income from investment of any portion of the fund, and repayments received on loans made from the fund, among other enumerated sources. Makes nonsubstantive changes. SECTION 2.Emergency clause. Effective date: upon passage.