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


Office of House Bill AnalysisH.B. 3340
By: Naishtat
Human Services
3/30/1999
Introduced



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 facility-based rental
assistance pilot program to expand long-term care options for elderly
persons.  This program provides for the coordination of and transportation
for the services needed by elderly persons.  This bill also provides for an
application and evaluation process for persons desiring to participate in
the program and rent subsidies for eligible persons who participate in the
program. 

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.  DEFINITIONS. Defines "department" and "facility."  

SECTION 2.  ESTABLISHMENT OF PILOT PROGRAM.  (a) Requires the Texas
Department of Human Services (department), in coordination with the Texas
Department of Housing and Community Affairs, to develop and implement a
facility-based rental assistance pilot program (pilot program) to expand
long-term care options for elderly residents of this state. Requires the
pilot program to provide rent subsidies for low-income elderly persons who
live in facilities that provide coordination of and transportation for the
services needed by those persons.  

(b) Requires the department, to the greatest extent possible, to implement
the pilot program using federal housing block grant funds.  

(c) Requires the department to process applications for an individual's
participation in the pilot program and to determine which applicants will
likely be able to participate successfully in the program.  

SECTION 3.  ELIGIBILITY REQUIREMENTS. Specifies qualifications necessary to
qualify for a rent subsidy under the pilot program. Provides that in order
to participate in the pilot program, a facility must  demonstrate that it
uses sources of low-income housing funds, such as tax credits and
tax-exempt bonds, to offer housing at rental rates that are below the
average market rates for comparable housing.  

SECTION 4.  RENT SUBSIDIES. Requires rent subsidies offered under the pilot
program to be computed for each participant based on the participant's
income and needs. Authorizes the subsidies to vary by facility on the basis
of rental charges for the housing. Requires the department to require a
participant to pay from the participant's financial resources, as rent, an
amount that is approximately equal to the amount the person would be
required to contribute if the person had resided in a nursing home and
received Medicaid benefits. Requires the department to pay the rent subsidy
to the facility in which a participant resides.  

SECTION 5.  EVALUATION AND REPORT. Requires the department, 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 and cost-effectiveness of the pilot program. Provides that
the report must include the department's recommendations with respect to
providing rent subsidies for 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.