By Kolkhorst, Cook, Brimer, Hawley, et al.            H.B. No. 1811
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the use of certain federal housing funds.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 2306.111(c), Government Code, is amended
 1-5     to read as follows:
 1-6           (c)  In administering federal housing funds provided to the
 1-7     state under the Cranston-Gonzalez National Affordable Housing Act
 1-8     (42 U.S.C. Section 12701 et seq.), the department shall expend at
 1-9     least 95 percent of [give the highest priority to utilizing] these
1-10     funds for the benefit of non-participating small cities and rural
1-11     areas that do not qualify to receive funds under the
1-12     Cranston-Gonzalez National Affordable Housing Act directly from the
1-13     United States Department of Housing and Urban Development [unless
1-14     the department finds there is insufficient need and demand for
1-15     housing funds within these areas].  All funds not set aside under
1-16     this subsection shall be used for the benefit of persons with
1-17     disabilities who live in areas other than small cities and rural
1-18     areas.
1-19           SECTION 2. This Act takes effect September 1, 2001.