LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 19, 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.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3654, As Introduced: 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: ************************************************************************** *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 $(910,000) $910,000 $101,000 * * 2001 (1,235,000) 1,235,000 137,000 * * 2002 (1,258,000) 1,258,000 140,000 * * 2003 (1,281,000) 1,281,000 142,000 * * 2004 (1,304,000) 1,304,000 145,000 * ************************************************************************** Technology Impact No significant administrative costs, including technology-related expenses. Fiscal Analysis The legislation would impose a $1 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 10 cents of each dollar 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