| TO: | Honorable Kevin Bailey, Chair, House Committee on Urban Affairs |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB3878 by Menendez (Relating to the operation and management of the Texas State Affordable Housing Corporation.), Committee Report 1st House, Substituted |
The bill would amend the Government Code relating to the operation and management of the Texas State Affordable Housing Corporation (TSAHC). The bill would require the Texas Department of Housing and Community Affairs (TDHCA) to approve a biennial budget for TSAHC no later than July 1 of each odd-numbered year for the state fiscal biennium that begins on September 1 of that same odd-numbered year. The bill would require TSAHC to transfer additional revenue that exceeds the amount needed to pay operating and overhead costs and maintain TSAHC's fund reserves to TDHCA to transfer to the Housing Trust Fund. As TDHCA is the administrator of the Housing Trust Fund it is anticipated that these funds to TDHCA would be directly deposited to the Housing Trust Fund and would remain outside the treasury.
Based on information provided by TDHCA, it is assumed that costs related to the duties and responsibilities associated with implementing the provisions of the bill could be covered by utilizing existing resources.
The bill would require TSAHC to locate in office space that is owned or leased by the state, and if possible, located in the same building or near the offices of TDHCA. TSAHC would be required to terminate any lease or lease agreement for office space on the ealiest date possible and without being assessed a penalty.
The bill would take effect September 1, 2007.
| Source Agencies: | 332 Department of Housing and Community Affairs
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| LBB Staff: | JOB, DB, AH
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