BILL ANALYSIS

H.B. 741

By: Vo

Urban Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Under current law, there are no restrictions on the number of multifamily housing developments that the Texas Department of Housing and Community Affairs (TDHCA) can approve within a school district.  When the population density becomes too high in a school district, it often adds to the already overburdened schools in the immediate area of a new multifamily project.  This problem usually happens in compact urban districts located in the suburbs of large cities. 

The purpose of H.B. 741 is to limit the number of general population multifamily low income housing tax credit units that can be built within a school district which is 50 square miles or less in size.

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

H.B. 741 amends the Government Code to make the authorization for the Texas Department of Housing and Community Affairs (TDHCA) to finance a housing development undertaken by a housing sponsor only if the TDHCA first makes certain determinations apply to a general multifamily housing development that will not primarily serve elderly individuals, that will be located within the boundaries of a small school district that is 50 square miles or less in size, and that will consist only of new construction for which the TDHCA first awards financing on or after the effective date of the bill if the TDHCA first determines, in addition to the other established determinations, that the addition of the housing development will not cause the total number of housing units within similar multifamily housing developments within the boundaries of the school district to exceed 60 units per square mile.  The bill defines "general multifamily housing development"  and "small school district."

EFFECTIVE DATE

September 1, 2011.