HBA-KDB H.B. 1811 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1811 By: Kolkhorst Land & Resource Management 7/20/2001 Enrolled BACKGROUND AND PURPOSE The Cranston-Gonzales National Affordable Housing Act (act) provides formula grants to states and localities that communities use to fund a wide range of activities that help build, buy, and rehabilitate affordable housing for rent or home ownership or provide direct rental assistance to low-income people. Prior to the 77th Legislature, the majority of the funds that Texas received were typically given to the larger cities and counties by the Texas Department of Housing and Community Affairs (department) despite the fact that state law explicitly requires the department to give the highest priority to utilizing these funds for the benefit of non-participating areas that do not qualify to receive funds under the act directly from the United States Department of Housing and Urban Development. House Bill 1811 requires the department to spend 95 percent of the funds it receives under the act on behalf of the non-participating areas. 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. ANALYSIS House Bill 1811 amends the Government Code to require the Texas Department of Housing and Community Affairs to expend at least 95 percent of the federal housing funds provided by the CranstonGonzales National Affordable Housing Act to aid non-participating areas that do not qualify to receive funds under the act directly from the United States Department of Housing and Urban Development. The bill requires all funds not set aside by the Act to be used for the benefit of persons with disabilities who live in areas other than non-participating areas. EFFECTIVE DATE September 1, 2001.