By McClendon                                          H.B. No. 3414
         77R12485 QS-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the powers of public housing authorities regarding the
 1-3     development and operation of housing projects.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 392.052(f), Local Government Code, is
 1-6     amended to read as follows:
 1-7           (f)  An authority may take action necessary or desirable in
 1-8     the undertaking, construction, maintenance, or operation of a
 1-9     housing project, including action to:
1-10                 (1)  borrow money or accept grants or other financial
1-11     assistance from the federal government for, or in aid of, a housing
1-12     project in the authority's area of operation;
1-13                 (2)  take over, lease, or manage a housing project or
1-14     undertaking constructed or owned by the federal government; [and]
1-15                 (3)  comply with conditions and enter into mortgages,
1-16     trust indentures, leases, or agreements that are necessary,
1-17     convenient, or desirable to accomplish the public purposes of this
1-18     chapter;
1-19                 (4)  form a partnership or another legal entity to
1-20     raise capital for a housing project to be owned by the partnership
1-21     or other legal entity; and
1-22                 (5)  acquire, construct, lease, or manage commercial
1-23     space incidental to a mixed-finance housing project, as defined by
1-24     42 U.S.C. Section 1437z-7, if:
 2-1                       (A)  the commercial space occupies less than 20
 2-2     percent of the square footage of the housing project and can
 2-3     reasonably be expected to be used by the residents of the housing
 2-4     project; and
 2-5                       (B)  the housing project is designed in a manner
 2-6     that minimizes the noise, safety, and traffic impact of the
 2-7     commercial space on the residential space.
 2-8           SECTION 2. This Act takes effect September 1, 2001.