HBA-ALS H.B. 2040 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2040
By: Turner, Bob
Land & Resource Management
3/10/1999
Introduced



BACKGROUND AND PURPOSE 

In 1983, the legislature granted the Veterans Land Board (VLB) authority to
make low-interest home mortgage loans to Texas veterans by creating the
Veterans Housing Assistance Program (the VLB was already authorized to make
loans to veterans for the purchase of land).  Under current law, VLB is
prohibited from setting the maximum principal loan amount at an amount over
$45,000.  There is a concern that veterans are unable to take advantage of
these types of loans because the maximum loan amount is not enough to
purchase a home on the current market.  In addition, current law prohibits
a veteran from using this program or the VLB land loan program more than
once.  The purpose of this bill is to increase the incentives to veteran to
utilize these loan programs and to allow the programs to be used more than
once. 

H.B. 2040 grants VLB authority to determine the number of tracts that a
veteran can purchase under this chapter.  This bill requires the board to
set the maximum principal loan amount made to a veteran at an amount not to
exceed the maximum amount allowable for a loan obtained through the United
States Department of Veterans Affairs. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Veterans Land Board in SECTION 1
(Section 162.236, Natural Resources Code) and SECTION 3 (Section 162.011,
Natural Resources Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 161.236, Natural Resources Code, to provide that
the Veterans Land Board (VLB) may promulgate rules to determine the number
of tracts of land that a veteran may purchase under this chapter.  Deletes
language prohibiting a veteran from purchasing more than one tract of land
under this chapter. 

SECTION 2.  Section 162.011(c), Natural Resources Code, to require VLB to
determine the maximum principal amount of loans that may be outstanding at
any time by any one veteran. Prohibits the amount allocable to any one home
mortgage loan from exceeding the maximum amount allowable for such a loan
by the United States Department of Veterans Affairs or any successor
agency.  Deletes language prohibiting a loan under this chapter from
exceeding $45,000. 

SECTION 3.  Amends Section 162.011, Natural Resources Code, by adding
Subsection (f), to authorize VLB by rule to determine, from time to time,
the number of loans that a veteran may receive under this chapter. 

SECTION 4.  Emergency clause.
  Effective date: upon passage.