76R13010 KEL-D                           
         By Naishtat, et al.                                   H.B. No. 3340
         Substitute the following for H.B. No. 3340:
         By Maxey                                          C.S.H.B. No. 3340
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a rental housing pilot program to expand long-term care
 1-3     housing options for elderly residents of this state with low, very
 1-4     low, or extremely low income.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  DEFINITION.  In this Act, "department" means the
 1-7     Texas Department of Housing and Community Affairs.
 1-8           SECTION 2.  ESTABLISHMENT OF PILOT PROGRAM.  (a)  The Texas
 1-9     Department of Housing and Community Affairs, in coordination with
1-10     the Texas Department of Human Services, nonprofit organizations,
1-11     public housing authorities, and any other entity with an interest
1-12     in housing issues, shall develop and implement a rental housing
1-13     pilot program to expand long-term care options for elderly
1-14     residents of this state.  The pilot program shall provide
1-15     subsidized multifamily rental housing for elderly residents with
1-16     low, very low, or extremely low income and shall coordinate
1-17     services needed by those residents.
1-18           (b)  To the greatest extent possible, the department shall
1-19     coordinate the pilot program with the funding sources of the Texas
1-20     Department of Human Services, nonprofit organizations, public
1-21     housing authorities, and other interested entities.
1-22           SECTION 3.  ELIGIBILITY REQUIREMENTS.  (a)  To qualify for
1-23     subsidized multifamily rental housing under the pilot program, a
1-24     person must:
 2-1                 (1)  be an elderly resident of this state;
 2-2                 (2)  satisfy predetermined needs criteria established
 2-3     by the Texas Department of Human Services;
 2-4                 (3)  satisfy income eligibility criteria established by
 2-5     the department; and
 2-6                 (4)  have sufficient financial resources to pay a part
 2-7     of  the person's monthly rental charge.
 2-8           (b)  To participate in the pilot program, an entity must
 2-9     demonstrate that it uses sources of low-income housing funds, such
2-10     as tax credits and tax-exempt bonds, to offer multifamily housing
2-11     at rental rates that are at or below the applicable fair market
2-12     rent prescribed by the United States Department of Housing and
2-13     Urban Development.
2-14           SECTION 4.  AFFORDABLE PARTICIPANT CONTRIBUTIONS.  The
2-15     department shall require a participating elderly resident of this
2-16     state to pay from the participant's financial resources as rent an
2-17     amount that is not more than 30 percent of the participant's gross
2-18     income or the amount specified by the United States Department of
2-19     Housing and Urban Development for the Section 8 rental assistance
2-20     program.
2-21           SECTION 5.  EVALUATION AND REPORT.  Not later than December
2-22     15, 2000, the department shall submit a report to the governor,
2-23     lieutenant governor, and speaker of the house of representatives
2-24     that evaluates the effectiveness of the pilot program established
2-25     under this Act. The report must include the department's
2-26     recommendations with respect to providing subsidized multifamily
2-27     rental housing for and coordinating services needed by elderly
 3-1     residents of this state with low, very low, or extremely low
 3-2     income.
 3-3           SECTION 6.  TERMINATION;  EXPIRATION.  The pilot program ends
 3-4     and this Act expires September 1, 2001.
 3-5           SECTION 7.  EMERGENCY.  The importance of this legislation
 3-6     and the crowded condition of the calendars in both houses create an
 3-7     emergency and an imperative public necessity that the
 3-8     constitutional rule requiring bills to be read on three several
 3-9     days in each house be suspended, and this rule is hereby suspended,
3-10     and that this Act take effect and be in force from and after its
3-11     passage, and it is so enacted.