HBA-NIK C.S.H.B. 3700 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3700 By: Shields Land & Resource Management 5/4/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Government-assisted programs exist in several different forms in Texas, and benefit many families. Some authorities purchase individual residences in single-family neighborhoods for the purpose of renting them out as federally-subsidized housing. Additionally, property near residential areas may also be used for post offices, police substations, halfway houses, jails, juvenile detention centers, group homes or other agency or non-profit programs. In many cases, the residents of the area may be unaware that a property is going to be used for the these purposes. C.S.H.B. 3700 gives notice to nearby residents that a particular property will be used for a federally-subsidized 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. Amends Subtitle E, Title 10, Government Code, by adding Chapter 2206, as follows: CHAPTER 2206. NOTICE OF PUBLIC USE OF PROPERTY Sec. 2206.001. APPLICATION. (a) Provides that this chapter applies to the United States, this state, a political subdivision of this state, or a nonprofit corporation or a subsidiary organization of a nonprofit corporation that intends to, in a municipality with a population of one million or more, buy or lease, as lessee, real property, or operate, on or from a piece of real property, a program that receives government assistance. (b) Provides that this chapter does not apply to real property that is used or will be used to provide services to persons, at least 75 percent of whom are elderly. Sec. 2206.002. NOTICE REQUIREMENT. Requires an entity subject to this article, not later than the 30th day before the date the entity executes a contract to purchase or lease real property in this state or the date the entity begins to operate, on or from a piece of real property in this state, to provide notice in the form required by this chapter by first-class mail to any resident or owner of real property any part of which is located within one-fourth mile of a boundary of the property that the entity intends to purchase, lease, or use. Sec. 2206.003. FORM OF NOTICE. Sets forth the form which the notice must follow. SECTION 2.Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 3.Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 3700 removes SECTION 1 (proposed Subchapter J, Chapter 301, Property Code) of the original bill, which required any person or entity intending to purchase or operate assisted housing under any federal, state, county, or nonprofit housing assistance program to publish notice of intention to purchase or operate such housing in a newspaper of general circulation within the county where the property is located, on three separate days, at least 90 days before any contract to purchase the property is executed. The substitute adds a new SECTION 1 proposed Chapter 2206, Government Code). For a complete analysis, please see the Section-by-Section Analysis portion of this document. C.S.H.B. 3700 adds a SECTION 2. The original contained no SECTION 2. For a complete analysis, please see the Section-by-Section Analysis portion of this document. C.S.H.B. 3700 removes SECTION 3 (proposed Section 301.182, Property Code) of the original, which provided for the compilation and dissemination of a list of all real property owned or leased as government-subsidized housing. C.S.H.B. 3700 removes SECTION 4 of the original, which established that failure to publish the notice is a Class C misdemeanor for any person who signs the closing documents or operates the Section 8 low income housing. 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. C.S.H.B. 3700 removes SECTION 5 of the original, which established that failure to publish the notice gives any resident of the county the right to sue to set aside transaction and recover attorney fees. C.S.H.B. 3700 removes SECTION 6 of the original, which provided that if a federal statute or court order conflicts with this subchapter, the federal law or court order prevails over this subchapter, but only to the extent necessary to comply with the federal law or court order. C.S.H.B. 3700 redesignates SECTION 7 (effective date) of the original to SECTION 2 of the substitute. The substitute also adds that application of this Act is prospective. C.S.H.B. 3700 redesignates SECTION 8 (long emergency clause) of the original to SECTION 3 (short emergency clause) of the substitute.