HBA-DMD, KMH H.B. 3340 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3340
By: Naishtat
Human Services
7/30/1999
Enrolled



BACKGROUND AND PURPOSE 

There are few affordable housing options for the elderly outside of nursing
homes.  Many older citizens live on small, fixed incomes and are often
unable to afford the expenses of maintaining their own homes or of keeping
up with increasing rents.  H.B. 3340 creates a rental housing pilot program
to expand long-term care options for elderly persons.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  DEFINITION. Defines "department" to mean the Texas Department
of Housing and Community Affairs (TDHCA). 

SECTION 2.  ESTABLISHMENT OF PILOT PROGRAM.  (a) Requires TDHCA in
coordination with the Texas Department of Human Services (DHS), nonprofit
organizations, public housing authorities, and any other entity with an
interest in housing issues to develop and implement a rental housing pilot
program (pilot program) to expand long-term care options for elderly
residents of this state. Requires the pilot program to provide subsidized
multifamily rental housing for elderly residents with low, very low, or
extremely low income and to coordinate services need by those residents. 

(b) Requires TDHCA, to the greatest extent possible, to coordinate the
pilot program with the funding sources of DHS and other interested
entities.  

SECTION 3.  ELIGIBILITY REQUIREMENTS. Specifies qualifications necessary to
qualify for a subsidized multifamily rental housing under the pilot
program. Provides that in order to participate in the pilot program, an
entity must demonstrate that it uses sources of low-income housing funds,
such as tax credits and tax-exempt bonds, to offer multifamily housing at
rental rates that are at or below the applicable fair market rent
prescribed by the United States Department of Housing and Urban Development
(HUD). 

SECTION 4.  AFFORDABLE PARTICIPANT CONTRIBUTIONS.  Requires TDHCA to
require a participating elderly resident of this state to pay from the
participant's financial resources as rent an amount that is not more than
30 percent of the participant's gross income or the amount specified by HUD
for the Section 8 rental assistance program.  (The Section 8 Program was
authorized by the U.S. Congress in 1974 and developed by HUD to provide
rental subsidies for eligible tenant families, including single persons,
residing in newly constructed, rehabilitated, and existing rental and
cooperative apartment projects.) 

SECTION 5.  EVALUATION AND REPORT. Requires TDHCA, no later than December
15, 2000, to submit a report to the governor, lieutenant governor, and
speaker of the house of representatives evaluating the effectiveness of the
pilot program. Provides that the report must include TDHCA's
recommendations with respect to providing subsidized multifamily rental
housing for and coordinating services needed by low, very low, and
extremely low income elderly residents of this  state. 

SECTION 6.  TERMINATION;  EXPIRATION. Sets forth that the pilot program
ends and this Act expires September 1, 2001.  

SECTION 7.Emergency clause.
  Effective date: upon passage.