BILL ANALYSIS

C.S.H.B. 2528

By: Guillen

Urban Affairs

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Interested parties assert that a lack of funding for the predevelopment phase of projects designed to increase affordable housing opportunities for low-income Texans constitutes a significant barrier to the successful administration of such projects. C.S.H.B. 2528 seeks to authorize the Texas Department of Housing and Community Affairs to issue to certified community housing development organizations predevelopment loans for such projects.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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. 2528 amends the Government Code to authorize the Texas Department of Housing and Community Affairs (TDHCA) to issue to a community housing development organization certified by the TDHCA a project-specific predevelopment loan to facilitate the development of a project that, if considered feasible, will receive an award of financial assistance under the terms of the federal HOME Investment Partnerships Program established under the Cranston-Gonzalez National Affordable Housing Act. The bill prohibits such a predevelopment loan from being used to pay project costs that exceed customary and reasonable project preparation costs or to pay administrative expenses of a community housing development organization. 

EFFECTIVE DATE

September 1, 2017.

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.B. 2528 differs from the original in minor or nonsubstantive ways by conforming to certain bill drafting conventions.