HBA-CMT H.B. 3412 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3412 By: McClendon Urban Affairs 4/2/2001 Introduced BACKGROUND AND PURPOSE Current federal law prohibits funding of public housing projects that concentrate only very low-income families in the project, instead requiring the development of mixed-income projects. State law regarding public housing authorities, however, is in conflict with the federal law in that it only authorizes public housing authorities to rent or lease housing to low income occupants. Federal funding may be withheld from Texas unless the law is amended to comply with federal law. House Bill 3412 authorizes public housing authorities to develop and rent or lease mixed income projects. 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 3412 amends the Local Government Code to provide that a "housing project" means a work or other undertaking by a public housing authority to provide decent, safe, and sanitary urban or rural housing which is to be used in part for persons of low income. The bill repeals provisions regarding rentals and tenant selection by a public housing authority. EFFECTIVE DATE September 1, 2001.