LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 21, 2001
  
  
          TO:  Honorable Bill G. Carter, Chair, House Committee on Urban
               Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3090  by Carter (Relating to the private activity bond
               allocation program.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would amend the Government Code to modify the allocation
reservation percentages for an issuer of private activity bonds (PABs).
In circumstances where the state ceiling is computed on a basis of $75
per capita or greater, the bill would change the  percentage amounts of
the state PAB ceiling that would be available to various categories of
PAB issuers.  Under the proposed allocations, 25 percent of the state's
PAB ceiling would be available exclusively for reservations by issuers of
qualified residential rental project bonds.

Of the portion reserved for residential rental project bonds, 25 percent
would be available exclusively to the Texas Department of Housing and
Community Affairs to be used for qualified residential rental projects
throughout the state.  The remainder would be available exclusively to
housing finance corporations in the eleven Uniform State Service Regions
throughout the state.

According to the Comptroller of Public Accounts, the bill would not
change the total amount of PABs that could be issued in Texas; only the
allocation percentages would be affected. These are self-supporting
revenue bonds and are not an obligation to the state.
  
Technology Impact
  
Technology Impact consists of computers for additional FTEs.
  
  
Local Government Impact
  
Local housing finance corporations would experience a positive fiscal
impact under the provisions of the bill, with the amount varying by
corporation.  Generally, local housing finance corporations contacted
expect that under the provisions of the bill, they would receive their
allocations more frequently (every two years as opposed to every three
years, for example).

If a corporation's utilization percentage is less than 95 percent, their
subsequent allocation would be reduced and they would experience a
negative fiscal impact.  The negative impact would depend on their
utilization percentage rate from their previous allocation.
  
  
Source Agencies:   332   Texas Department of Housing and Community
                   Affairs, 304   Comptroller of Public Accounts
LBB Staff:         JK, DB, RT, ER