By Lucio                                              S.J.R. No. 35
         76R3868 DB-D                           
                                 A JOINT RESOLUTION
 1-1     proposing a constitutional amendment providing for the issuance of
 1-2     bonds to augment funds for moderate and low income housing.
 1-3           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Article III, Texas Constitution, is amended by
 1-5     adding Section 49-k to read as follows:
 1-6           Sec. 49-k.  (a)  The legislature by general law may authorize
 1-7     the Texas Department of Housing and Community Affairs or its
 1-8     successor to issue and sell general obligation bonds of the state
 1-9     in an amount not to exceed $100 million.  The bonds shall be called
1-10     "Texas Housing Bonds" and shall be issued and sold in forms and
1-11     denominations, on terms, at times, in the manner, at places, and in
1-12     installments the department or its successor determines.  The bonds
1-13     shall bear a rate or rates of interest the department or its
1-14     successor determines, except that the legislature by general law
1-15     shall set the maximum net effective interest rate to be borne by
1-16     the bonds.
1-17           (b)  The obligation of the department or its successor under
1-18     the agreements to make payments with respect to principal of or
1-19     interest on the bonds shall also constitute a general obligation of
1-20     the state.
1-21           (c)  All money received from the sale of the bonds shall be
1-22     deposited in the housing trust fund or its successor fund
1-23     administered by the Texas Department of Housing and Community
1-24     Affairs or its successor to finance affordable housing for moderate
 2-1     and low income persons within the state in accordance with law.
 2-2     The expenses of issuance of the bonds and administration of the
 2-3     fund shall be paid from money in the fund.
 2-4           (d)  While any of the bonds or interest on the bonds is
 2-5     outstanding and unpaid, there is appropriated out of the first
 2-6     money coming into the treasury in each fiscal year, not otherwise
 2-7     appropriated by this constitution, the amount sufficient to pay the
 2-8     principal of and interest on the bonds that mature or become due
 2-9     during the fiscal year, including payments made during the fiscal
2-10     year by the Texas Department of Housing and Community Affairs or
2-11     its successor under bond enhancement agreements with respect to
2-12     principal of or interest on the bonds.
2-13           SECTION 2.  This proposed constitutional amendment shall be
2-14     submitted to the voters at an election to be held November 2, 1999.
2-15     The ballot shall be printed to permit voting for or against the
2-16     proposition:  "The constitutional amendment authorizing issuance of
2-17     $100 million in general obligation bonds to augment funds available
2-18     to finance housing for moderate and low income persons."