HBA - NRS, MPM C.S.S.J.R. 50 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.S.J.R. 50
By: Lucio
Urban Affairs
5/17/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The housing trust fund is the sole program funded by the state to provide
affordable housing units for very low and low-income households.  The
housing trust fund is primarily funded by general revenue funds. C.S.S.J.R.
50 requires the submission to the voters of a constitutional amendment to
enable the legislature to increase the revenue available to the housing
trust fund through the issuance of general obligation bonds by the Texas
Department of Housing and Community Affairs. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this resolution
does not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

C.S.S.J.R. 50 amends the Texas Constitution to authorize the legislature by
general law to authorize the Texas Department of Housing and Community
Affairs (TDHCA) to issue and sell general obligation bonds of the state
called Texas Housing Bonds in an amount that does not exceed $25 million.
The resolution requires the bonds to bear a rate or rates of interest
determined by TDHCA, except that the legislature is required to set the
maximum net effective interest rate to be borne by the bonds.  The
resolution provides that the obligation of TDHCA under the agreement to
make payments with respect to the principal of or interest on the bonds
also constitutes a general obligation of the state.  The resolution
requires all money received from the sale of the bonds to be deposited in
the housing trust fund to finance owner-builder loan programs and other
home ownership initiatives related to the provision of affordable housing
for individuals and families of low and very low income. The resolution
provides that while any of the bonds or interest on the bonds is
outstanding and unpaid, an amount sufficient to pay the principal of and
interest on the bonds that mature or become due during the fiscal year
including payments made during the fiscal year by TDHCA is appropriated out
of the first money coming into the treasury each fiscal year not otherwise
appropriated by the constitution. 

FOR ELECTION

This proposed constitutional amendment shall be submitted to the voters at
an election to be held November 6, 2001. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.S.J.R. 50 modifies the original joint resolution by reducing from $100
million to $25 million the amount5/17/2001 Affairs to issue and sell.  The
substitute requires all money received from the sale of the bonds by TDHCA
to be deposited in the housing trust fund to finance owner-builder loan
programs and other home ownership initiatives related to the provision of
affordable housing for individuals and families of low and very low income.