1-1     By:  McClendon (Senate Sponsor - Madla)               H.B. No. 3414
 1-2           (In the Senate - Received from the House April 30, 2001;
 1-3     May 1, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 9, 2001, reported favorably by the
 1-5     following vote:  Yeas 6, Nays 0; May 9, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the powers of public housing authorities regarding the
 1-9     development and operation of housing projects.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1. Section 392.052(f), Local Government Code, is
1-12     amended to read as follows:
1-13           (f)  An authority may take action necessary or desirable in
1-14     the undertaking, construction, maintenance, or operation of a
1-15     housing project, including action to:
1-16                 (1)  borrow money or accept grants or other financial
1-17     assistance from the federal government for, or in aid of, a housing
1-18     project in the authority's area of operation;
1-19                 (2)  take over, lease, or manage a housing project or
1-20     undertaking constructed or owned by the federal government; [and]
1-21                 (3)  comply with conditions and enter into mortgages,
1-22     trust indentures, leases, or agreements that are necessary,
1-23     convenient, or desirable to accomplish the public purposes of this
1-24     chapter;
1-25                 (4)  form a partnership or another legal entity to
1-26     raise capital for a housing project to be owned by the partnership
1-27     or other legal entity; and
1-28                 (5)  acquire, construct, lease, or manage commercial
1-29     space incidental to a mixed-finance housing project, as defined by
1-30     42 U.S.C. Section 1437z-7, if:
1-31                       (A)  the commercial space occupies less than 20
1-32     percent of the square footage of the housing project and can
1-33     reasonably be expected to be used by the residents of the housing
1-34     project; and
1-35                       (B)  the housing project is designed in a manner
1-36     that minimizes the noise, safety, and traffic impact of the
1-37     commercial space on the residential space.
1-38           SECTION 2. This Act takes effect September 1, 2001.
1-39                                  * * * * *