LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 24, 2001
TO: Honorable Bill Ratliff, Lieutenant Governor, Senate
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB322 by Lucio (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; providing a penalty.), As
Passed 2nd House
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB322, As Passed 2nd House: negative impact of $(780,196) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(390,098) *
* 2003 (390,098) *
* 2004 (390,098) *
* 2005 (390,098) *
* 2006 (390,098) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Change in *
* Year Savings/(Cost) Savings/(Cost) Revenue Number of State *
* from General from Gain/(Loss) Employees from *
* Revenue Fund Appropriated from FY 2001 *
* 0001 Receipts Appropriated *
* 0666 Receipts *
* 0666 *
* 2002 $(390,098) $(385,426) $385,426 18.0 *
* 2003 (390,098) (385,426) 385,426 18.0 *
* 2004 (390,098) (385,426) 385,426 18.0 *
* 2005 (390,098) (385,426) 385,426 18.0 *
* 2006 (390,098) (385,426) 385,426 18.0 *
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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 bill would enhance compliance activities associated with the federal
low income tax credit program. 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 incorporate the preservation of affordable housing into
the TDHCA general provisions and establish various preservation incentive
programs and a regional planning process.
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.
The enhanced compliance activities required by the bill would require
$385,426 per year and an additional six FTEs financed through
appropriated receipts.
The bill would add one FTE and incorporate the preservation of affordable
housing into the TDHCA general provisions and establish various
preservation incentive programs.
Each member of the newly created manufactured housing regulatory
governing board would be entitled to about $5,000 per year in
reimbursements.
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.
The bill would require seven FTEs and associated costs totaling $391,098
each fiscal year to establish a regional planning process and to manage
TDHCA's housing preservation program. It is assumed additional resources
would be acquired through contracting or interagency agreements if
needed.
The bill would require four FTEs and associated costs of $205,748 each
fiscal year, funded by appropriated receipts to implement the provisions
related to allocation of low income housing tax credits.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 332 Texas Department of Housing and Community
Affairs, 116 Sunset Advisory Commission
LBB Staff: JK, DB, RT, ER