LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 21, 1999
TO: Honorable Eddie Lucio, Chair, Senate Committee on Border
Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB 1287 by Lucio (Relating to housing loans to low income
families.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1287, As Introduced: negative impact of $(2,300,000) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $0 *
* 2001 (2,300,000) *
* 2002 (2,300,000) *
* 2003 (2,300,000) *
* 2004 (2,300,000) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Revenue Probable *
* Year Savings/(Cost) from Gain/(Loss) from Savings/(Cost) from *
* General Revenue Fund Housing Trust Fund - Housing Trust Fund - *
* 0001 Outside Treasury Outside Treasury *
* 2000 $0 $0 $0 *
* 2001 (2,300,000) 25,000,000 (25,000,000) *
* 2002 (2,300,000) 0 0 *
* 2003 (2,300,000) 0 0 *
* 2004 (2,300,000) 0 0 *
**************************************************************************
Fiscal Analysis
The bill would amend Chapter 2306 of the Government Code by establishing
an Owner-Builder Program at the Texas Department of Housing and Community
Affairs (TDHCA). TDHCA would establish eligibility requirements and make
loans for owner builders through the colonia self-help centers. The
bill would define the circumstances under which TDHCA could make loans
for the program and would require TDHCA to solicit gifts and grants to
fund the program. The bill would allow TDHCA to utilize funds available
under the Housing Trust Fund; eligible federal block grants; proceeds
from certain state general obligation bonds; and loan repayments received
under the program. The bill would limit the number of loans to 500 in
fiscal year 2000 and 1,000 in fiscal year 2001. The bill would require
TDHCA to evaluate and report the repayment history of recipients of loans
under the program to the Governor, the Lt. Governor, and the Speaker of
the House no later than November 15, 2000.
The bill would take effect September 1, 1999 and would expire September
1, 2001.
Methodology
The fiscal impact associated with the bill is contingent on the passage
and voter approval of Senate Joint Resolution 34, which proposes a
constitutional amendment authorizing general obligation debt in an amount
not to exceed $30 million for the Owner-Builder Program. No significant
fiscal implication to the State is anticipated if Senate Joint
Resolution 34 does not receive voter approval.
The Bond Review Board (BRB) estimates debt service costs based on the
assumption that Senate Joint Resolution 34 would pass and receive voter
approval; there would be sufficient authorization for an issuance of $30
million; that each bond issue would have a thirty year maturity; and that
there would be level debt service. The BRB estimates that TDHCA would
issue the bonds in September 2000, and the annual debt service required
for issuing the taxable bonds would cost $2.8 million in additional
general revenue in fiscal year 2001 with the cost continuing each
following year for the remaining life of the bonds.
However, because the bill would limit the number and amount of loans,
only $25 million of the authorization could be issued. The estimated
debt service is reduced proportionally
Local Government Impact
No significant fiscal implication to units of local government is
anticipated; however, local property tax bases could increase by
enhancing the value of land or dwellings that received improvement loans
under the program.
Source Agencies: 304 Comptroller of Public Accounts, 332
Department of Housing and Community Affairs, 352
Bond Review Board
LBB Staff: JK, DE, RT, MW