LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

April 4, 2007

TO:	Honorable Kevin Bailey, Chair, House Committee on Urban Affairs
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB3789 by Bohac (Relating to the manner in which notice of certain events concerning the low income housing tax credit program is given.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB3789, As Introduced: an impact of $0 through the biennium ending August 31, 2009.

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
2008	$0
2009	$0
2010	$0
2011	$0
2012	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from APPROPRIATED RECEIPTS 666	Probable Revenue Gain/(Loss) from APPROPRIATED RECEIPTS 666
2008	($107,877)	$107,877
2009	($67,256)	$67,256
2010	($67,256)	$67,256
2011	($77,756)	$77,756
2012	($67,256)	$67,256

Fiscal Year	Change in Number of State Employees from FY 2007
2008	1.0
2009	1.0
2010	1.0
2011	1.0
2012	1.0

Fiscal Analysis

The bill would amend the Government Code to require the Texas Department of Housing and Community Affairs (TDHCA) to maintain an electronic mail notification service to which any person may electronically subscribe to receive information concerning the status of preapplications and applications for the housing tax credit program.

The bill would require TDHCA to have the electronic mail notification system fully functional no later than January 1, 2008. The bill would take effect immediately if it receives a vote of two-thirds of all members elected to each house; otherwise, it would take effect September 1, 2007.

Methodology

Based on information provided by TDHCA, the analysis assumes that TDHCA would be required to purchase and customize a list management software package at an estimated cost of $42,000 in fiscal year 2008; purchase server hardware and software to house the email notification system at an estimated cost of $10,500 in fiscal year 2008 and $10,500 in fiscal year 2011; and there would be an ongoing cost of $6,300 in each fiscal year beginning in 2008 for vendor maintenance of the system.

The analysis assumes that TDHCA would be required to hire 1.0 FTE to populate and maintain the database with current application status, ensure notifications are sent within the required timeframe, and provide additional information to subscribers as needed. Based on the analysis of TDHCA, it is assumed that establishing and maintaining this email notification system would necessitate additional resources at a cost of $175,133 through 2009. 
 
TDHCA also estimates costs for staff of $30,000 for 1.0 FTE in fiscal year 2008 and $40,000 for each fiscal year from 2009 through fiscal year 2012. Other operating expenses, professional services, and equipment are estimated at $69,390 in fiscal year 2008, $15,940 in fiscal year 2009, $15, 940 in fiscal year 2010, $26,440 in 2011, and $15,940 in fiscal year 2012. Estimated costs also include $8,487 in fiscal year 2008 and $11,316 in each fiscal year from 2009 through fiscal year 2012 for associated benefits.
 
This analysis assumes that any increased costs resulting from this bill would be offset by an increase in Housing Tax Credit Program application fee-generated revenue.

Technology

There would be a technology cost to TDHCA of $60,000 in fiscal year 2008, $6,300 in fiscal year 2009, $6,300 in fiscal year 2010, $16,800 in fiscal year 2011, and $6,300 in fiscal year 2012.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

332 Department of Housing and Community Affairs

LBB Staff:

JOB, DB, MW, AH