SRC-JJJ S.B. 1506 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1506
76R6058 DB-DBy: Truan
Intergovernmental Relations
4/6/1999
As Filed


DIGEST 

The Low Income Housing Tax Credit Program (program) was created by the Tax
Reform Act of 1986, and was first utilized by the real estate development
community during 1987.  The program is the primary means of directing
private capital towards the creation of affordable rental housing. The tax
credits provide developers of low income housing with a benefit that is
used to offset the portion of their federal tax liability in exchange for
the production of affordable rental housing.  S.B. 1506 would require the
allocation of tax credits to housing projects in counties with high
unemployment and low median family income. 

PURPOSE

As proposed, S.B. 1506 requires the allocation of tax credits to housing
projects in counties with high unemployment and low median family income. 

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 2306.675, Government Code, by adding Subsections
(c) and (d), to require the Texas Department of Housing and Urban Affairs
(department) to issue commitments for at least 20 percent of low-income
housing tax credits to eligible housing projects in affected counties.
Defines "affected county." 

SECTION 2.  Requires the department to issue at least 20 percent of the
balance of the allocation of low-income housing tax credits for fiscal year
1999 on the effective date of this Act to eligible housing  projects in
affected counties. 

SECTION 3.  Emergency clause.
            Effective date: upon passage.