By: Carona S.R. No. 1088 SENATE RESOLUTION 1-1 WHEREAS, The federal Tax Reform Act of 1986 placed a unified 1-2 volume cap on the issuance of most private activity debt by states 1-3 and local governments; in more populated states such as Texas, the 1-4 effective cap is $50 per capita; and 1-5 WHEREAS, The bond cap has since remained constant in the face 1-6 of intervening inflation, and consequently its purchasing power has 1-7 eroded by more than 30 percent, hindering the state's ability to 1-8 invest in its communities and to create jobs; and 1-9 WHEREAS, A pressing need in Texas is affordable housing; the 1-10 state currently allocates approximately $314 million of its cap to 1-11 single-family housing and targets another $74 million for 1-12 multifamily housing; and 1-13 WHEREAS, Demand for affordable housing is greater than ever; 1-14 more than 1.9 million Texas families will need some form of housing 1-15 assistance within the next year, a number that can only increase as 1-16 the state's population grows and the available housing stock 1-17 diminishes; and 1-18 WHEREAS, The United States Congress in the Taxpayer Relief 1-19 Act of 1998 has consented to a 50 percent bond cap increase, 1-20 raising the per capita limit to $75, but that increase is phased in 1-21 over five years, delaying its full usefulness for close to a 1-22 decade; and 1-23 WHEREAS, Two proposed congressional measures, S. 459 and H.R. 1-24 864, each styled the State and Local Investment Opportunities Act 2-1 of 1999, would raise the per capita bond cap immediately from $50 2-2 to $75 and lend a timely helping hand to the many Texans who seek 2-3 affordable housing; now, therefore, be it 2-4 RESOLVED, That the Senate of the State of Texas, 76th 2-5 Legislature, hereby respectfully urge the Congress of the United 2-6 States to support legislation providing for an immediate increase 2-7 of the per capita tax-exempt private activity bond cap; and, be it 2-8 further 2-9 RESOLVED, That the Secretary of the Senate forward official 2-10 copies of this Resolution to the President of the United States, to 2-11 the President of the Senate and the Speaker of the House of 2-12 Representatives of the United States Congress, and to all the 2-13 members of the Texas delegation to the Congress with the request 2-14 that this Resolution be officially entered in the Congressional 2-15 Record as a memorial to the Congress of the United States of 2-16 America. 2-17 ______________________________________ 2-18 President of the Senate 2-19 I hereby certify that the above 2-20 Resolution was adopted by the Senate 2-21 on May 26, 1999. 2-22 ______________________________________ 2-23 Secretary of the Senate