HBA-JEK H.B. 3090 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3090 By: Carter Urban Affairs 3/19/2001 Introduced BACKGROUND AND PURPOSE Federal law limits the amount of tax-exempt financing that may be used to benefit private entities or individuals each year and authorizes each state to allocate these monies through a private activity bond allocation program. The United States Congress has set the 2001 state ceiling on tax-exempt private activity bonds at $62.50 per capita and the 2002 state ceiling at $75 per capita. House Bill 3090 sets forth new state ceiling provisions for the private activity bond allocation 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. ANALYSIS House Bill 3090 amends the Government Code to apportion for various purposes the state ceiling allocated to issuers of tax-exempt private activity bonds, when the state ceiling is computed on the basis of $75 per capita or a greater amount before August 15 of each year (Sec. 1372.022, Government Code). The bill prescribes how the portion of the state ceiling that is available exclusively for reservations by issuers of qualified residential rental projects will be allocated until August 15 (Sec. 1372.0231). The bill also sets forth new maximum amounts of the state ceiling that a housing finance corporation may reserve before August 15 for the issuance of qualified mortgage bonds (Sec. 1372.026). H.B. 3090 provides that the first loans or certificates financed by a housing finance corporation that issues bonds using a new allocation of the state ceiling in combination with recycled state ceiling, taxable bonds, or both are considered in computing the utilization percentage of the new allocation of the state ceiling. The bill establishes the maximum amount of the state ceiling that may be reserved for a housing finance corporation with a utilization percentage of less than 95 percent when it next becomes eligible for a reservation of the state ceiling, but prohibits such a finance corporation from being penalized in specified instances. These provisions apply only to an allocation of state ceiling granted on or after January 1, 2002 (Sec. 1372.0261 and SECTION 8). In the case of any conflict, the provisions of the bill prevail over any other legislation passed by the 77th Legislature relating to nonsubstantive additions and corrections in enacted codes (SECTION 7). EFFECTIVE DATE September 1, 2001.