LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 28, 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.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3449, As Introduced: 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 FTE's 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