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


Senate Research CenterH.B. 1811
By: Kolkhorst (Duncan)
State Affairs
5/10/2001
Committee Report (Amended)


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 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
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 non-participating areas. 

SECTION 2.  Effective date: September 1, 2001.

SUMMARY OF COMMITTEE CHANGES

Committee Amendment No. 1.

Amends page 1, line 10, to delete the phrase "small cities and rural."

Amends page 1, line 17, to delete the phrase "small cities and rural" and
replace it with "nonparticipating."