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 * * * * *