HBA-KMH H.B. 3340 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3340 By: Naishtat Human Services 3/30/1999 Introduced BACKGROUND AND PURPOSE There are few affordable housing options for the elderly outside of nursing homes. Many older citizens live on small, fixed incomes and are often unable to afford the expenses of maintaining their own homes or of keeping up with increasing rents. H.B. 3340 creates a facility-based rental assistance pilot program to expand long-term care options for elderly persons. This program provides for the coordination of and transportation for the services needed by elderly persons. This bill also provides for an application and evaluation process for persons desiring to participate in the program and rent subsidies for eligible persons who participate in the program. 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. DEFINITIONS. Defines "department" and "facility." SECTION 2. ESTABLISHMENT OF PILOT PROGRAM. (a) Requires the Texas Department of Human Services (department), in coordination with the Texas Department of Housing and Community Affairs, to develop and implement a facility-based rental assistance pilot program (pilot program) to expand long-term care options for elderly residents of this state. Requires the pilot program to provide rent subsidies for low-income elderly persons who live in facilities that provide coordination of and transportation for the services needed by those persons. (b) Requires the department, to the greatest extent possible, to implement the pilot program using federal housing block grant funds. (c) Requires the department to process applications for an individual's participation in the pilot program and to determine which applicants will likely be able to participate successfully in the program. SECTION 3. ELIGIBILITY REQUIREMENTS. Specifies qualifications necessary to qualify for a rent subsidy under the pilot program. Provides that in order to participate in the pilot program, a facility must demonstrate that it uses sources of low-income housing funds, such as tax credits and tax-exempt bonds, to offer housing at rental rates that are below the average market rates for comparable housing. SECTION 4. RENT SUBSIDIES. Requires rent subsidies offered under the pilot program to be computed for each participant based on the participant's income and needs. Authorizes the subsidies to vary by facility on the basis of rental charges for the housing. Requires the department to require a participant to pay from the participant's financial resources, as rent, an amount that is approximately equal to the amount the person would be required to contribute if the person had resided in a nursing home and received Medicaid benefits. Requires the department to pay the rent subsidy to the facility in which a participant resides. SECTION 5. EVALUATION AND REPORT. Requires the department, no later than December 15, 2000, to submit a report to the governor, lieutenant governor, and speaker of the house of representatives evaluating the effectiveness and cost-effectiveness of the pilot program. Provides that the report must include the department's recommendations with respect to providing rent subsidies for low-income elderly residents of this state. SECTION 6. TERMINATION; EXPIRATION. Sets forth that the pilot program ends and this Act expires September 1, 2001. SECTION 7.Emergency clause. Effective date: upon passage.