By:  Lucio, et al.                                    S.J.R. No. 50
 1-1                           SENATE JOINT RESOLUTION
 1-2     proposing a constitutional amendment providing for the issuance of
 1-3     bonds to augment funds for low and very low income housing.
 1-4           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Article III, Texas Constitution, is amended by
 1-6     adding Section 49-k to read as follows:
 1-7           Sec. 49-k.  (a)  The legislature by general law may authorize
 1-8     the Texas Department of Housing and Community Affairs or its
 1-9     successor to issue and sell general obligation bonds of the state
1-10     in an amount not to exceed $100 million.  The bonds shall be called
1-11     "Texas Housing Bonds" and shall be issued and sold in forms and
1-12     denominations, on terms, at times, in the manner, at places, and in
1-13     installments the department or its successor determines.  The bonds
1-14     shall bear a rate or rates of interest the department or its
1-15     successor determines, except that the legislature by general law
1-16     shall set the maximum net effective interest rate to be borne by
1-17     the bonds.
1-18           (b)  The obligation of the department or its successor under
1-19     the agreements to make payments with respect to principal of or
1-20     interest on the bonds shall also constitute a general obligation of
1-21     the state.
1-22           (c)  All money received from the sale of the bonds shall be
1-23     deposited in the housing trust fund or its successor fund
1-24     administered by the Texas Department of Housing and Community
 2-1     Affairs or its successor to finance affordable housing for low and
 2-2     very low income persons within the state in accordance with law.
 2-3     The expenses of issuance of the bonds and administration of the
 2-4     fund shall be paid from money in the fund.
 2-5           (d)  While any of the bonds or interest on the bonds is
 2-6     outstanding and unpaid, there is appropriated out of the first
 2-7     money coming into the treasury in each fiscal year, not otherwise
 2-8     appropriated by this constitution, the amount sufficient to pay the
 2-9     principal of and interest on the bonds that mature or become due
2-10     during the fiscal year, including payments made during the fiscal
2-11     year by the Texas Department of Housing and Community Affairs or
2-12     its successor under bond enhancement agreements with respect to
2-13     principal of or interest on the bonds.
2-14           SECTION 2.  This proposed constitutional amendment shall be
2-15     submitted to the voters at an election to be held November 6, 2001.
2-16     The ballot shall be printed to permit voting for or against the
2-17     proposition:  "The constitutional amendment authorizing issuance of
2-18     $100 million in general obligation bonds to augment funds available
2-19     to finance housing for low and very low income persons."