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.