SRC-SEW H.B. 3414 77(R) BILL ANALYSIS Senate Research Center H.B. 3414 77R12485 QS-FBy: McClendon (Madla) Intergovernmental Relations 5/4/2001 Engrossed DIGEST AND PURPOSE Modern housing developments have begun to combine commercial space with residential space, providing residents with services such as laundry, day care, health care, and retail stores. Under current law, public housing authorities are not authorized to incorporate commercial tenants into their projects even though they could provide valuable services to tenants while subsidizing the cost of a project. H.B. 3414 authorizes public housing authorities to incorporate commercial and residential space in housing development projects. 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 392.052(f), Local Government Code, to authorize an authority to take action necessary or desirable in the undertaking, construction, maintenance, or operation of a housing project, including an action to form a partnership or another legal entity to raise capital for a housing project to be owned by the partnership or other legal entity; and acquire, construct, lease, or manage commercial space incidental to a mixed-finance housing project, as defined by 42 U.S.C. Section 1437z-7, under certain conditions. SECTION 2. Effective date: September 1, 2001.