By Naishtat                                           H.B. No. 3340
         76R3617 KEL-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a rental assistance pilot program to expand housing
 1-3     options for elderly residents with low income.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  DEFINITIONS.  In this Act:
 1-6                 (1)  "Department" means the  Texas Department of Human
 1-7     Services.
 1-8                 (2)  "Facility" means a complex that provides
 1-9     apartment-like residential units for its residents.
1-10           SECTION 2.  ESTABLISHMENT OF PILOT PROGRAM.  (a)  The Texas
1-11     Department of Human Services, in coordination with the Texas
1-12     Department of Housing and Community Affairs, shall develop and
1-13     implement a facility-based rental assistance pilot program to
1-14     expand long-term care options for elderly residents of this state.
1-15     The pilot program shall provide rent subsidies for low-income
1-16     elderly persons who live in facilities that provide coordination of
1-17     and transportation for the services needed by those persons.
1-18           (b)  To the greatest extent possible, the department shall
1-19     implement the pilot program using federal housing block grant
1-20     funds.
1-21           (c)  The department shall process applications for an
1-22     individual's participation in the pilot program and determine which
1-23     applicants will likely be able to participate successfully in the
1-24     program.
 2-1           SECTION 3.  ELIGIBILITY REQUIREMENTS.  (a)  To qualify for a
 2-2     rent subsidy under the pilot program, a person must:
 2-3                 (1)  be an elderly resident of this state;
 2-4                 (2)  satisfy the functional needs criteria for nursing
 2-5     home care;
 2-6                 (3)  satisfy income eligibility criteria established by
 2-7     the department;
 2-8                 (4)  have sufficient financial resources to pay a part
 2-9     of  the person's monthly rental charge; and
2-10                 (5)  reside in a facility that participates in the
2-11     program.
2-12           (b)  To participate in the pilot program, a facility must
2-13     demonstrate that it uses sources of low-income housing funds, such
2-14     as tax credits and tax-exempt bonds, to offer housing at rental
2-15     rates that are below the average market rates for comparable
2-16     housing.
2-17           SECTION 4.  RENT SUBSIDIES.  (a)  Rent subsidies offered
2-18     under the pilot program shall be computed for each participant
2-19     based on the participant's income and needs.  The subsidies may
2-20     vary by facility on the basis of rental charges for the housing.
2-21           (b)  The department shall require a participant to pay from
2-22     the participant's financial resources as rent an amount that is
2-23     approximately equal to the amount the person would be required to
2-24     contribute if the person resided in a nursing home and received
2-25     Medicaid benefits.
2-26           (c)  The department shall pay the rent subsidy to the
2-27     facility in which a participant resides.
 3-1           SECTION 5.  EVALUATION AND REPORT.  Not later than December
 3-2     15, 2000, the department shall submit a report to the governor,
 3-3     lieutenant governor, and speaker of the house of representatives
 3-4     that evaluates the effectiveness and cost-effectiveness of the
 3-5     pilot program established under this Act. The report must include
 3-6     the department's recommendations with respect to providing rent
 3-7     subsidies for low-income elderly residents of this state.
 3-8           SECTION 6.  TERMINATION;  EXPIRATION.  The pilot program ends
 3-9     and this Act expires September 1, 2001.
3-10           SECTION 7.  EMERGENCY.  The importance of this legislation
3-11     and the crowded condition of the calendars in both houses create an
3-12     emergency and an imperative public necessity that the
3-13     constitutional rule requiring bills to be read on three several
3-14     days in each house be suspended, and this rule is hereby suspended,
3-15     and that this Act take effect and be in force from and after its
3-16     passage, and it is so enacted.