LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 23, 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), Committee Report 1st House,
Substituted
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1287, Committee Report 1st House, Substituted: negative impact *
* of $(2,800,000) 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. *
**************************************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $0 *
* 2001 (2,800,000) *
* 2002 (2,800,000) *
* 2003 (2,800,000) *
* 2004 (2,800,000) *
****************************************************
All Funds, Five-Year Impact:
**************************************************************************
*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 (2,800,000) 30,000,000 (10,000) *
* 2002 (2,800,000) 0 (10,000) *
* 2003 (2,800,000) 0 (10,000) *
* 2004 (2,800,000) 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). The bill would require the Secretary of State to
assist TDHCA with the administration of the program until August 31, 2000
and TDHCA to 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 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 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 to finance
the program.
The bill would take effect January 1, 2000 and would expire September 1,
2005.
Methodology
The Bond Review Board (BRB) estimates debt service costs based on the
assumption that Senate Joint Resolution 34 would pass and receive voter
approval; that there would be sufficient authorization for an issuance
of $30 million; that each bond issue would have a thirty year maturity;
that there would be level debt service; and that the bonds would be
considered a part of the state constitutional debt limit. The BRB
estimates that TDHCA would issue the bonds in September 2000 and that
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.
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, MW