LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 26, 1999
  
  
          TO:  Honorable Bill Carter, Chair, House Committee on Urban
               Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB 3654  by Oliveira (Relating to funding the housing
               trust fund.), Committee Report 1st House, Substituted
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB3654, Committee Report 1st House, Substituted:  positive impact     *
*  of $0 through the biennium ending August 31, 2001.                    *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Net Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                                   $0  *
          *       2001                                    0  *
          *       2002                                    0  *
          *       2003                                    0  *
          *       2004                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
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*Fiscal        Probable         Probable Revenue     Probable Revenue    *
* Year    Savings/(Cost) from   Gain/(Loss) from   Gain/(Loss) from All  *
*        Housing Trust Fund - Housing Trust Fund -       Counties        *
*          Outside Treasury     Outside Treasury                         *
*  2000           $(1,820,000)           $1,820,000             $202,000 *
*  2001            (2,470,000)            2,470,000              274,000 *
*  2002            (2,516,000)            2,516,000              280,000 *
*  2003            (2,562,000)            2,562,000              284,000 *
*  2004            (2,608,000)            2,608,000              290,000 *
**************************************************************************
  
Technology Impact
  
No significant administrative costs, including technology-related
expenses.
  
  
Fiscal Analysis
  
The legislation would impose a $2 affordable housing fee on certain
documents filed for recording in the personal and real property records
of each county.  The county would be allowed to retain 10 percent of
fees collected.  The remaining 90 percent of fees would be received by
the Comptroller and deposited to the Housing Trust Fund, a fund outside
the State Treasury.  Like other revenues deposited to the Housing Trust
Fund, this new fee would be used to provide loans, grants or other
comparable forms of assistance to purchase, finance, rehabilitate or
develop decent, safe housing.
  
  
Methodology
  
The proposed fee was applied to an estimated number of affected
recordings in the state.  The state's share would be 90 percent and
counties would receive the remaining 10 percent.  Personal and real
estate property filings in 1997 and 1998 for a few counties were used as
a starting point, and adjusted for population increases.
  
  
Local Government Impact
  
The counties are authorized to keep 20 cents of each two-dollar fee
collected to reimburse the county for the administrative cost of
collecting the fee.
  
  
Source Agencies:   332   Department of Housing and Community Affairs
LBB Staff:         JK, TL, MW