79R5621 QS-D

By:  Lucio                                                        S.B. No. 723



A BILL TO BE ENTITLED

AN ACT

relating to a study of affordable housing needs and potential 
revenue sources for affordable housing.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter K, Chapter 2306, Government Code, is 
amended by adding Section 2306.260 to read as follows:
	Sec. 2306.260.  STUDY REGARDING AFFORDABLE HOUSING NEEDS AND 
FUNDING.  (a)  The department shall conduct a study of affordable 
housing needs and potential revenue sources for affordable housing 
in this state.  The study must:
		(1)  include an overview of the affordable housing 
needs in this state;
		(2)  estimate the amount of appropriations from general 
revenue that will be needed annually to address those affordable 
housing needs;
		(3)  identify and evaluate potential revenue sources 
other than appropriations from general revenue, including real 
property transfer fees and real property document recordation fees 
at the county level, that could be dedicated to the housing trust 
fund for use in developing affordable housing in this state;
		(4)  evaluate the impact that a dedicated source of 
revenue for the housing trust fund could have on the state economy, 
including the impact on:
			(A)  jobs and income;                                                 
			(B)  industry sectors;                                                
			(C)  tax revenues; and                                                
			(D)  spending by households that benefit from 
increased access to affordable housing; and
		(5)  evaluate potential social and community benefits 
that may result from increased investment in the housing trust 
fund, including:
			(A)  increased family stability and household 
wealth;               
			(B)  improvements in public health;                                   
			(C)  lower dropout rates in schools;                                  
			(D)  lower unemployment rates;                                        
			(E)  environmental benefits; and                                      
			(F)  increased economic development.                                  
	(b)  The evaluation of potential revenue sources under 
Subsection (a)(3) must include:
		(1)  an estimate of:                                                   
			(A)  the amount of money that could be raised 
through the revenue source; and
			(B)  the ease or difficulty of administration and 
distribution of the money; and
		(2)  an evaluation of whether the revenue source:                      
			(A)  has a logical relationship to the development 
of affordable housing;
			(B)  is regressive or progressive, if the revenue 
source is a tax or a fee; and
			(C)  could lead to the leveraging of other revenue 
sources or would meet requirements for federal housing matching 
funds.
	(c)  The department may contract with an appropriate 
independent organization specializing in affordable housing or 
economic development research to conduct the study on the 
department's behalf.
	(d)  The department shall report to the governor, the 
lieutenant governor, and the speaker of the house of 
representatives on the study and its results not later than 
September 1, 2006.
	(e)  To conduct the study, the department or organization may 
use money available under Section 1372.006(a-1).
	(f)  This section expires February 1, 2007.                             
	SECTION 2.  Section 1372.006, Government Code, is amended by 
adding Subsection (a-1) to read as follows:
	(a-1)  In addition to being used in the affordable housing 
research and information program, money transferred to the Texas 
Department of Housing and Community Affairs may be used by the 
department to conduct the study regarding affordable housing needs 
and funding, as provided by Section 2306.260.  This subsection 
expires February 1, 2007.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.