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 non-participating areas.
1-18           SECTION 2. This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1811 was passed by the House on April
         10, 2001, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 1811 on May 24, 2001, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1811 was passed by the Senate, with
         amendments, on May 17, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor