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


Office of House Bill AnalysisC.S.H.B. 3340
By: Naishtat
Human Services
4/23/1999
Committee Report (Substituted)



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.  C.S.H.B. 3340 creates a rental housing 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.  

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 the Texas
Department of Housing and Community Affairs 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
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. 

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.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 3340 modifies the original in SECTION 1 by redefining "department"
to mean the Texas Department of Housing and Community Affairs (TDHCA),
rather than the Texas Department of Human Services (DHS).  The substitute
removes the definition of "facility." 

C.S.H.B. 3340 modifies the original in SECTION 2 by requiring TDHCA, rather
than DHS, to coordinate with other entities including DHS to provide a
subsidized housing program, rather than a subsidized rental program, for
low, very low, and extremely low income elderly residents and to coordinate
services for the residents.  The substitute requires TDHCA to coordinate
funding with these and other interested entities.  The substitute deletes
the provision requiring TDHCA to process applications and determine
eligibility for an elderly's participation in the program. 

C.S.H.B. 3340 modifies the original in SECTION 3 by adding the satisfaction
of predetermined needs criteria established by DHS to the eligibility
requirements.  The substitute adopts the applicable fair market rent
prescribed by the United States Department of Housing and Urban Development
as the standard for the rental rate charged under the pilot program. 

C.S.H.B. 3340 modifies the original in SECTION 4 by changing the proposed
section's title from "Rent Subsidies" to "Affordable Participant
Contributions."   Provides the  method of determining the rental rate for
each participant as the lesser of the 30 percent of the participant's gross
income or an amount specified by the United States Department of Housing
and Urban Development for the Section 8 rental assistance program, rather
than solely on the participant's income and needs.  The substitute also
deletes the provision requiring a minimum contribution in the amount equal
to the amount the person would be required to contribute if the person
resided in a nursing home and received Medicaid benefits.  Furthermore, the
substitute makes conforming and nonsubstantive changes. 

C.S.H.B. 3340 modifies the original in SECTION 5 to delete the requirement
that the report to be subsidized by TDHCA evaluate the cost-effectiveness
of the program.