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 ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** 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