1-1     By:  Lucio                                            S.B. No. 1503
 1-2           (In the Senate - Filed March 9, 2001; March 14, 2001, read
 1-3     first time and referred to Committee on Business and Commerce;
 1-4     April 9, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 5, Nays 0; April 9, 2001,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1503                   By:  Lucio
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to an assessment of the affordable housing needs of the
1-11     regions of this state.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Chapter 2306, Government Code, is amended by
1-14     adding Subchapter GG to read as follows:
1-15          SUBCHAPTER GG.  TEXAS AFFORDABLE HOUSING NEEDS ASSESSMENT
1-16           Sec. 2306.781.  DEFINITIONS.  In this subchapter:
1-17                 (1)  "Border region" means the area composed of the
1-18     counties of Brewster, Brooks, Cameron, Culberson, Dimmit, Duval, El
1-19     Paso, Hidalgo, Hudspeth, Jeff Davis, Jim Hogg, Kenedy, Kinney, La
1-20     Salle, Maverick, Presidio, Starr, Val Verde, Webb, Willacy, Zapata,
1-21     and Zavala.
1-22                 (2)  "Public senior college or university" has the
1-23     meaning assigned by Section 61.003, Education Code.
1-24           Sec. 2306.782.  TEXAS AFFORDABLE HOUSING NEEDS ASSESSMENT.
1-25     (a)  In conjunction with the office of the comptroller, the
1-26     department shall assess the present and future affordable housing
1-27     needs of the border region and of the uniform state service regions
1-28     of this state.
1-29           (b)  The department shall use the following factors in making
1-30     the assessment required by this subchapter:
1-31                 (1)  the number of extremely low, very low, and low
1-32     income households in each region;
1-33                 (2)  the number and type of publicly subsidized housing
1-34     units in each region;
1-35                 (3)  the number and amount of loans provided by the
1-36     department in each region and the income level of the recipients of
1-37     the loans;
1-38                 (4)  the number and amount of housing development
1-39     grants made by the department in each region and a description of
1-40     each grant;
1-41                 (5)  the number of substandard or inadequate housing
1-42     units in each region;
1-43                 (6)  cost estimates for correcting substandard and
1-44     inadequate housing conditions in each region;
1-45                 (7)  the number of extremely low, very low, and low
1-46     income households in each region that spend more than half of
1-47     household income on rent or mortgage payments;
1-48                 (8)  cost estimates for relieving housing cost burdens
1-49     for extremely low, very low, and low income households in each
1-50     region;
1-51                 (9)  an analysis of the market demand for housing by
1-52     extremely low, very low, and low income households;
1-53                 (10)  an analysis of the loans and private sector home
1-54     mortgage lending rates available to extremely low, very low, and
1-55     low income borrowers in each region;
1-56                 (11)  an analysis of the principal barriers to home
1-57     mortgage credit faced by extremely low, very low, and low income
1-58     borrowers; and
1-59                 (12)  the rate of subprime mortgage loan products in
1-60     home purchase, home repair, and home equity loans in each region.
1-61           (c)  The assessment must provide a summary and conclusion
1-62     regarding the adequacy of existing housing and lending programs to
1-63     meet the affordable housing needs of each region.
1-64           (d)  In making the assessment required by this subchapter,
 2-1     the department shall use the most current data available from the
 2-2     United States Census Bureau, the United States Department of
 2-3     Housing and Urban Development, and federal and state banking
 2-4     regulatory agencies.
 2-5           (e)  In making the assessment required by this subchapter,
 2-6     the department shall project the affordable housing needs of each
 2-7     region as of the end of each five-year period occurring between
 2-8     September 1, 2001, and September 1, 2021, and as of September 1,
 2-9     2031.  The projection of affordable housing needs under this
2-10     subsection must include a projection of the costs and nature of the
2-11     affordable housing that will be needed in the future, including any
2-12     special need for single-family or multifamily housing.
2-13           Sec. 2306.783.  FUNDING.  The department may use any
2-14     available revenue, including legislative appropriations, to make
2-15     the assessment required by this subchapter.
2-16           Sec. 2306.784.  CONTRACTUAL AUTHORITY.  The department may
2-17     contract with a research center, a public senior college or
2-18     university, or a component of a public senior college or
2-19     university, including the Lyndon B.  Johnson School of Public
2-20     Affairs, to make the assessment required by this subchapter.
2-21           Sec. 2306.785.  REPORT.  Not later than the 180th day after
2-22     the date the relevant information is released by the United States
2-23     Census Bureau, the department shall submit a report to the
2-24     governor, the lieutenant governor, and the legislature detailing
2-25     the department's findings on the present and future affordable
2-26     housing needs of the regions of this state.
2-27           Sec. 2306.786.  EXPIRATION DATE.  This subchapter expires
2-28     October 1, 2004.
2-29           SECTION 2.  This Act takes effect September 1, 2001.
2-30                                  * * * * *