SRC-JBJ H.B. 1811 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1811
By: Kolkhorst (Duncan)
State Affairs
5/2/2001
Engrossed


DIGEST AND PURPOSE 

The Cranston-Gonzales National Affordable Housing Act (act) provides
formula grants to states and localities that communities use to fund a wide
range of activities that help build, buy, and rehabilitate affordable
housing for rent or home ownership or provide direct rental assistance to
low-income people. The majority of the funds that Texas receives are
typically given to the larger cities and counties by the Texas Department
of Housing and Community Affairs (department) despite the fact that current
law explicitly states the department is required to give the highest
priority to utilizing these funds for the benefit of non-participating
small cities and rural areas that do not qualify to receive funds under the
act directly from the United States Department of Housing and Urban
Development.  H.B. 1811 requires the department to spend 95 percent of the
funds it receives under the act on behalf of the nonparticipating small
cities and rural areas. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2306.111(c), Government Code, to require the
Texas Department of Housing and Community Affairs (department), in
administering federal housing funds provided to the state under the
Cranston-Gonzales National Affordable Housing Act (42 U.S.C. Section 12701
et seq.), to expend at least 95 percent of, rather than give the highest
priority to utilizing, these funds for the benefit of non-participating
small cities and rural areas that do not qualify to receive funds under the
Cranston-Gonzales National Affordable Housing Act directly from the United
States Department of Housing and Urban Development.  Deletes existing text
regarding a certain exception.  Requires all funds not set aside under this
subsection to be used for the benefit of persons with disabilities who live
in areas other than small cities and rural areas. 

SECTION 2.  Effective date: September 1, 2001.