BILL ANALYSIS

C.S.H.B. 3163

By: Davis, Yvonne

Urban Affairs

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The housing trust fund was established to create affordable housing for low and very low-income individuals and families who are not able to obtain money for housing through financial institutions.  The fund was created by the 72nd Legislature and is administered through the Texas Department of Housing and Community Affairs. It is the only state-authorized program dedicated to increasing Texas' supply of affordable housing, and can be used to support new home construction, housing rehabilitation, emergency repairs, shelters, and capacity building for housing. The program primarily targets projects designed for very low-income, rural, veteran, and special needs populations, consisting of single and multifamily dwellings that are owner-occupied or rental units.  Grants, which are awarded on a competitive basis, are available to nonprofits, units of local government, public housing authorities' community housing development organizations (CHDOs), for profits, and individuals and families of a certain income level.

Eligible program activities include the acquisition, rehabilitation, and new construction of affordable homeownership developments.  Developments may be completed by a contracted developer or through self-help construction.  The money may also be used for tenant-based rental assistance in which the assisted tenant may move from a dwelling unit with a continued right to assistance. Applicants must demonstrate how the funds will address an identified affordable housing need in their area, and must provide evidence of financial feasibility and the ability to complete the proposed project successfully. 

Since the inception of the housing trust fund, no dedicated revenue stream has been adopted.  Program funding relies on appropriations or transfers made to the fund, unencumbered fund balances, and public or private gifts or grants.

C.S.H.B. 3163 establishes a funding source to provide a predictable revenue stream for the housing trust fund to increase the state's supply of affordable housing and enable Texas to compete with other states to meet state match requirements when federal aid becomes available. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 3163 amends the Government Code to authorize the Texas Department of Housing and Community Affairs to accept gifts, grants, or donations for the housing trust fund. The bill requires all funds received for the housing trust fund to be deposited or transferred into the Texas Treasury Safekeeping Trust Company.  The bill establishes that, in addition to other amounts appropriated to the housing trust fund by the 81st Legislature, Regular Session, the amount of $10 million is appropriated out of the general revenue fund to the housing trust fund for the state fiscal year ending August 31, 2010, and the amount of $10 million is appropriated out on the general revenue fund to the housing trust fund for the state fiscal year ending August 31, 2011.  The bill establishes that the appropriations made by Senate Bill 1, Acts of the 81st Legislature, Regular Session, 2009 (the General Appropriations Act), out of the general revenue fund to the Department of Information Resources are reduced by $10 million for the state fiscal year ending August 31, 2010, and are reduced by $10 million for the state fiscal year ending August 31, 2011.  The bill establishes that the provisions relating to the appropriations described above expire September 1, 2012.  The bill provides that, to the extent of conflict and regardless of the relative dates of enactment, this bill prevails over any other enactment of the 81st Legislature, Regular Session, 2009.

EFFECTIVE DATE

September 1, 2009.

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.B. 3163 omits a provision in the original providing that the housing trust fund includes money deposited to the fund under the original's provisions establishing an affordable housing fee.

C.S.H.B. 3163 omits provisions in the original relating to the collection of an affordable housing fee of $10 and instead adds provisions appropriating money out of the general revenue fund for the state fiscal years ending August 31, 2010, and August 31, 2011, to the housing trust fund. 

C.S.H.B. 3163 adds a provision not in the original establishing that the appropriations made by Senate Bill 1, Acts of the 81st Legislature, Regular Session, 2009 (the General Appropriations Act), out of the general revenue fund to the Department of Information Resources are reduced by $10 million for the state fiscal year ending August 31, 2010, and are reduced by $10 million for the state fiscal year ending August 31, 2011.  The substitute adds a provision not in the original establishing that the provisions relating to the appropriations described above expire September 1, 2012.  The substitute adds a provision not in the original establishing that it prevails over any other enactment of the 81st Legislature, Regular Session, 2009.