HBA-MPA S.J.R. 35 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.J.R. 35
By: Lucio
Urban Affairs
5/10/1999
Engrossed


BACKGROUND AND PURPOSE 

Currently, the Texas Department of Housing and Community Affairs (TDHCA)
does not have the authority to issue and sell bonds to finance affordable
housing for low and very low income Texans. S.J.R. 35 is a constitutional
amendment authorizing the issuance of a maximum $100 million for "Texas
Housing Bonds."  S.J.R. 35 requires the submission to the voters of a
constitutional amendment to provide for the issuance of bonds to augment
funds for low and very low income housing. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Article III, Texas Constitution, by adding Section 49-k,
as follows: 

Sec.  49-k.  (a)  Authorizes the legislature to authorize the Texas
Department of Housing and Community Affairs (TDHCA) to sell general
obligation bonds not to exceed $100 million. Requires the bonds to be
called "Texas Housing Bonds," and requires TDHCA to determine the manner of
issuance.  Sets forth required rates for the "Texas Housing Bonds." 

(b)  Requires the obligation of TDHCA or its successor to make payments on
the bonds to also constitute a general obligation of the state.   

(c)  Requires bond sales proceeds to finance affordable housing for low and
very low income Texans.  Requires fund administration costs to be paid from
money in the fund. 

(d)  Sets forth provisions for bond payment regarding the first money
coming into the treasury in each fiscal year. 

SECTION 2.  Requires this proposed constitutional amendment to be submitted
to the voters at an election to be held on November 2, 1999.  Sets forth
the required language for the ballot.