| TO: | Honorable Tom Craddick, Speaker of the House, House of Representatives |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB3873 by Menendez (Relating to the administration of the Texas Department of Housing and Community Affairs; providing a penalty. ), As Passed 2nd House |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2008 | $0 |
| 2009 | $0 |
| 2010 | $0 |
| 2011 | $0 |
| 2012 | $0 |
| Fiscal Year | Probable Savings/(Cost) from APPROPRIATED RECEIPTS 666 |
Probable Revenue Gain/(Loss) from APPROPRIATED RECEIPTS 666 |
Change in Number of State Employees from FY 2007 |
|---|---|---|---|
| 2008 | ($107,877) | $107,877 | 1.0 |
| 2009 | ($67,256) | $67,256 | 1.0 |
| 2010 | ($67,256) | $67,256 | 1.0 |
| 2011 | ($77,756) | $77,756 | 1.0 |
| 2012 | ($67,256) | $67,256 | 1.0 |
The bill would amend the Government Code relating to the administration of the Texas Department of Housing and Community Affairs (TDHCA). The bill would impose a penalty for certain violations and remove the requirement for TDHCA to hold a hearing on the State Low Income Housing Plan in each of the state's 13 uniform state planning districts.
The bill would amend the Government Code relating to the regional allocation of certain housing funds by the TDHCA and to the information used to determine the allocation of those funds.
The bill would require the 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. This bill would take effect September 1, 2007.
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.
| Source Agencies: | 332 Department of Housing and Community Affairs
|
| LBB Staff: | JOB, DB, AH, MW
|