BILL ANALYSIS

C.S.H.B. 1402

By: Walle

International Relations & Economic Development

Committee Report (Substituted)

BACKGROUND AND PURPOSE

It has been suggested that certain low and moderate income communities dealing with a lack of investment in economic development, business development, and job opportunities would benefit if there was more investment in these types of activities in their communities. C.S.H.B. 1402 seeks to address this issue by including the provision of economic development opportunities as part of the public purpose of the Texas State Affordable Housing Corporation.

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. 1402 amends the Government Code to include the provision of economic development opportunities, as defined by the bill, as part of the public purpose of the Texas State Affordable Housing Corporation (TSAHC). The bill includes individuals and families of moderate income among the individuals and families for whom it is part of the public purpose of the TSAHC to perform activities and services and makes related changes. The bill removes as a condition on the authority of the TSAHC to make first lien, single family purchase money mortgage loans for single family homes that the household income of the individual or family receiving the loan is not more than the greater of 60 percent of the median income for the state or 60 percent of the area median family income, adjusted for family size.

EFFECTIVE DATE

September 1, 2019.

COMPARISON OF ORIGINAL AND SUBSTITUTE

While C.S.H.B. 1402 may differ from the original in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute includes in the applicable income levels for the individuals and families for whom it is part of the public purpose of the TSAHC to perform activities and services income levels that are very low and extremely low.