LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 3, 1999 TO: Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations FROM: John Keel, Director, Legislative Budget Board IN RE: SB 327 by Ellis, Rodney (Relating to funding the housing trust fund.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB327, 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 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 Probable Probable Change in * * Year Savings/ Revenue Savings/ Revenue Number of * * (Cost) from Gain/(Loss) (Cost) from Gain/(Loss) State * * Housing from All Local from All Employees * * Trust Fund Housing Units of Local Units from FY 1999 * * - Outside Trust Fund Government of * * Treasury - Outside Government * * Treasury * * 2000 $(910,000) $910,000 $0 $101,000 0.0 * * 2001 (1,235,000) 1,235,000 0 137,000 0.0 * * 2002 (1,258,000) 1,258,000 0 140,000 0.0 * * 2003 (1,281,000) 1,281,000 0 142,000 0.0 * * 2004 (1,304,000) 1,304,000 0 145,000 0.0 * *********************************************************************** 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: LBB Staff: JK, TL, ZS