LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 17, 2001 TO: Honorable Bill G. Carter, Chair, House Committee on Urban Affairs FROM: John Keel, Director, Legislative Budget Board IN RE: HB3449 by Gallego (Relating to the continuation and functions of the Texas Department of Housing and Community Affairs and to other matters relating to housing or community development, including the creation of the Manufactured Housing Board and the Office of Rural Community Affairs.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3449, Committee Report 1st House, Substituted: positive impact * * of $2,000 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 Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $1,000 * * 2003 1,000 * * 2004 1,000 * * 2005 1,000 * * 2006 1,000 * **************************************************** All Funds, Five-Year Impact: *********************************************************************** *Fiscal Probable Probable Probable Probable Change in * * Year Savings/ Savings/ Savings/ Revenue Number of * * (Cost) from (Cost) from (Cost) from Gain/(Loss) State * * General General Appropriat- from Employees * * Revenue Revenue ed Receipts Appropriat- from FY 2001 * * Fund Fund Earned 0666 ed Receipts * * 0001 Federal 0666 * * Funds * * 0001 * * 2002 $(5,000) $6,000 $(385,426) $385,426 6.0 * * 2003 (5,000) 6,000 (385,426) 385,426 6.0 * * 2004 (5,000) 6,000 (385,426) 385,426 6.0 * * 2005 (5,000) 6,000 (385,426) 385,426 6.0 * * 2006 (5,000) 6,000 (385,426) 385,426 6.0 * *********************************************************************** Technology Impact The bill would require additional Computer hardware and software totaling $15,000 each year. Fiscal Analysis The bill would continue the Texas Department of Housing and Community Affairs (TDHCA) for a two-year probationary period. The bill would restructure the department's governing body as a seven-member board composed of public members with demonstrated interests in housing and community support services issues. The bill would improve the process by which the department assesses the statewide need for affordable housing and community support services by region, and would require the agency to set priorities that meet the greatest need. The bill would require the department to use multi-family housing finance programs to maximize resources and outcomes, adopt policies to prevent discrimination by developers receiving funding through the department, and establish compliance procedures to identify and sanction discriminatory practices by landlords once projects are built and operational. The enhanced compliance activities required by the bill would require an additional six FTEs financed through appropriated receipts. The bill would also require TDHCA to create a position to develop and implement policies designed to preserve affordable housing and to make information about community resources and affordable housing easily accessible to the public. The bill would create a Colonia Advisory Committee and require a plan to meet colonia resident needs. The bill would move the Community Development Block Grant (CDBG) program into the Office of Rural Community Affairs, an independent executive branch agency. The bill would create a separate governing board for the regulation of manufactured housing. The bill would become effective September 1, 2001. Methodology Reducing the size of the board by two members would produce savings from reduced travel expenses. These savings are estimated based on historical travel costs of about $10,000 per year reimbursed to board members. These costs are primarily funded through appropriated receipts and earned federal funds; therefore, the savings would be split between those two sources of revenue, 30 percent for earned federal funds and 70 percent for appropriated receipts. The consolidation of public hearings would produce savings from reduced travel expenses. These savings are estimated based on a 50 percent reduction in the historical travel costs by the agency related to public hearings since it is assumed the number of public hearings would be reduced from about 50 to 25 per year. Creating a separate five-member governing board to manage the manufactured housing regulatory program would result in costs related to the board's entitlement to per diem. It is assumed each board member would be reimbursed about $5,000 per year. It is assumed that any additional costs, above the amounts transferred to the Office of Rural Community Affairs from TDHCA as specified in the bill, could be met through interagency contracts. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 332 Texas Department of Housing and Community Affairs LBB Staff: JK, DB, ER, RT