LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 2, 2001
TO: Honorable Gary Walker, Chair, House Committee on Land &
Resource Management
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1811 by Kolkhorst (Relating to the use of certain
federal housing funds.), As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1811, As Introduced: positive impact of $0 through the biennium *
* ending August 31, 2003. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
**************************************************************************
General Revenue-Related Funds, Five-Year Net Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* Community Affairs Federal Fund - *
* Federal *
* 0127 *
* 2002 $(964,000) *
* 2003 (964,000) *
* 2004 (964,000) *
* 2005 (964,000) *
* 2006 (964,000) *
*****************************************************
Fiscal Analysis
The bill amends 2306.111( c ) of the Government Code to require the
Texas Department of Housing and Community Affairs (TDHCA) to expend at
least 95 percent of the state's HOME funds for the benefit of non
participating jurisdictions, rather than merely stating such as the
highest priority, irrespective of whether there is sufficient need and
demand for the funds in these areas.
The bill would take effect September 1, 2001.
Methodology
The bill specifies that TDHCA must expend at least 95 percent of the
state's HOME funds for the benefit of non-participating jurisdictions.
TDHCA has assumed that this refers to project funds and not
administrative funds. (TDHCA utilizes ten percent of HOME funds for
administrative purposes.)
Federal law requires that fifteen percent of project funds be awarded to
Community Housing Development Organizations (CHDOs). According to TDHCA,
the state has relatively few CHDOs, and the majority are found in
participating jurisdictions, metropolitan areas that receive HOME funds
directly from the federal government.
All HOME funding categories, including the fifteen percent CHDO has
set-side, gives first priority to applications from non-participating
jurisdictions. During fiscal year 2000, TDHCA allocated $2,836,260 to
CHDOs serving participating jurisdictions. The agency anticipates
receiving $42 million in HOME funds for 2001, making $37.8 million
available for project funds. Five percent of this would be $1.89
million.
The agency has assumed it would receive the same number of eligible CHDO
applications from participating jurisdictions and non-participating
jurisdictions in 2001 as were received in 2000. TDHCA reports that
$946,000 in HOME funds that could have been awarded to non-participating
jurisdictions would have to be sent back to the federal government.
This figure is derived by subtracting the five percent of project funds
allowed to be awarded to participating jurisdictions under the proposed
legislation from the total allocated to CHDOs serving participating
jurisdictions in 2000.
Local Government Impact
The small cities and rural areas that do not qualify to receive funds
directly under the Cranston-Gonzalez National Affordable Housing Act
would benefit proportionally to the funds administered through the
state.
Source Agencies: 332 Texas Department of Housing and Community
Affairs
LBB Staff: JK, CL, ER, RT, DB