SRC-SEW H.B. 3451 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 3451
By: Gallego (Lucio)
Intergovernmental Relations
5/7/2001
Engrossed


DIGEST AND PURPOSE 

The Texas State Affordable Housing Corporation (TSAHC) is a nonprofit
corporation that was created by the legislature in 1995 to help meet the
housing needs of low-income residents in Texas. TSAHC operates to provide
single and multifamily loans to low-income individuals without using
stateappropriated general revenue. TSAHC generates income primarily through
bond proceeds, grants, fees, and investment revenue. In February 2000,
TSAHC redirected its efforts away from acting as a mortgage bank and grant
administrator to issuing taxable single and multifamily tax exempt mortgage
revenue bonds for the purpose of directing the proceeds of the bonds to
low-income households. TSAHC is subject to the Sunset Act and will be
abolished September 1, 2001, unless continued by the legislature. H.B. 3451
continues TSAHC for two years as recommended by the Sunset Commission and
addresses certain aspects of its operation. 

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 2306.5521, Government Code, to provide that the
Texas State Affordable Housing Corporation is subject to Chapter 325 (Texas
Sunset Act) and, unless continued in existence as provided by that chapter,
the corporation is abolished and this subchapter expires September 1, 2003
(rather than 2001). 
 
SECTION 2.  Amends Chapter 2306Y, Government Code, by adding Sections
2306.5551 and 2306.5552, as follows: 
 
Sec. 2306.5551.  BOARD DELEGATION OF AUTHORITY TO ISSUE BONDS OR OTHER
OBLIGATIONS. (a) Authorizes the board of directors of the corporation to
delegate to a member of the board or to an employee of the corporation the
authority to enter into a contract to issue bonds or other obligations for
the corporation. 
 
(b)  Requires the person to whom contract authority is delegated under this
section to report to the board as frequently as considered necessary by the
board all of the person's activities relating to the issuance of bonds or
other obligations. 
 
Sec. 2306.5552.  TECHNICAL AND FINANCIAL ASSISTANCE PROVIDED TO NONPROFIT
ORGANIZATIONS.  Requires the corporation to supplement the technical and
financial capacity of other appropriate nonprofit organizations to provide
for the multifamily and single-family housing needs of individuals and
families of low, very low, and extremely low income. 
 
SECTION 3.  Effective date: upon passage or September 1, 2001.