BILL ANALYSIS

S.B. 1991

By: Watson

Urban Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties note the need to revise the allocation of certain federal housing funds by the Texas Department of Housing and Community Affairs in order to comply with federal law. S.B. 1991 seeks to address this need by setting out provisions relating to the administration of federal funds under the federal Cranston-Gonzalez National Affordable Housing Act.

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

S.B. 1991 amends the Government Code to authorize the Texas Department of Housing and Community Affairs (TDHCA), with regard to the federal housing funds provided to the state under the federal Cranston-Gonzalez National Affordable Housing Act that the TDHCA is required to allocate for the benefit of non-participating small cities and rural areas that do not qualify to receive funds under the act directly from the U.S. Department of Housing and Urban Development, to allocate an amount not to exceed 15 percent of such allocated funds to participating jurisdictions as necessary to meet the requirements of federal law. The bill changes from five percent to at least five percent the percentage of federal housing funds provided to the state under the act that the TDHCA is required to allocate for the benefit of persons with disabilities who live in any area of Texas. The bill requires the TDHCA, in allocating the set‑aside funds, to allocate funds in accordance with any applicable spending plan required under federal law. The bill replaces a provision making nonprofit and for-profit providers of affordable housing eligible to apply for the set-aside funds with a provision establishing that eligibility to apply for the community housing development organization set-aside funds is determined by federal law. The bill applies only to an application for financial assistance that is submitted to the TDHCA on or after January 1, 2018.

EFFECTIVE DATE

September 1, 2017.