HBA-TBM H.B. 3538 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3538 By: Dukes Urban Affairs 4/2/2001 Introduced BACKGROUND AND PURPOSE The Texas Department of Housing and Community Affairs (TDHCA) provides funding for the financing of housing intended to benefit individuals with low incomes. While this funding helps many people obtain affordable housing, an unscrupulous housing developer may be able to take advantage of TDHCA's financing efforts. House Bill 3538 prohibits a housing sponsor from contracting with a housing developer that has breached a contract with a governmental entity and provided false information to subcontractors. 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 3538 amends the Government Code to prohibit the Texas Department of Housing and Community Affairs (TDHCA) from financing a housing development undertaken by a housing sponsor, unless TDHCA first determines that the sponsor is not or will not utilize a housing developer which has breached a contract with a governmental entity in Texas and misrepresented to subcontractors as to the amount and scope of their participation in previous awards made by governmental entities in Texas. EFFECTIVE DATE September 1, 2001.