HBA-JEK H.B. 3451 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 3451 By: Gallego Urban Affairs 8/28/2001 Enrolled BACKGROUND AND PURPOSE The Texas State Affordable Housing Corporation (TSAHC) is a nonprofit corporation that was created by the legislature in 1995 to help meet the housing needs of low-income residents in Texas. TSAHC operates to provide single and multifamily loans to low-income individuals without using state appropriated general revenue. TSAHC generates income primarily through bond proceeds, grants, fees, and investment revenue. In February 2000, TSAHC redirected its efforts away from acting as a mortgage bank and grant administrator to issuing taxable single and multifamily tax exempt mortgage revenue bonds for the purpose of directing the proceeds of the bonds to low-income households. TSAHC is subject to the Sunset Act and will be abolished September 1, 2001 unless continued by the legislature. House Bill 3451 continues TSAHC for two years as recommended by the Sunset Commission and requires TSAHC to establish a teachers home loan 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 3451 amends the Government Code to continue the Texas State Affordable Housing Corporation (TSAHC) until September 1, 2003. H.B. 3451 requires TSAHC to establish a teachers home loan program (program). The bill sets forth loan eligibility requirements for teachers and authorizes TSAHC to contract with other state agencies or private entities to administer the program. The bill authorizes the board of directors of TSAHC (board) to collect reasonable and necessary fees from program applicants and requires the board to adopt rules related to the administration of the program. The bill allots $25 million of the state ceiling to TSAHC each year for the purpose of issuing qualified mortgage bonds in connection with the program, and authorizes TSAHC to solicit and accept funding from gifts, grants, the housing trust fund, federal block grants, other state or federal programs, and amounts received by TSAHC in repayment of teacher housing loans. The program expires September 1, 2012. H.B. 3451 authorizes the board to delegate to board members and TSAHC employees the authority to enter into a contract to issue bonds or other obligations for the corporation. The bill requires TSAHC to supplement the technical and financial capacity of other appropriate nonprofit organizations to provide for the multifamily and single-family housing needs of individuals and families of low, very low, and extremely low income. The bill requires the legislature to make specific recommendations if the legislature finds in a scheduled Sunset review of TSAHC that the program is not being managed to accomplish the goal of providing lowinterest home mortgage loans to teachers. The bill requires the program to be transferred to another appropriate state agency if the legislature abolishes TSAHC. EFFECTIVE DATE June 15, 2001.