HBA-MSH S.B. 1287 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1287 By: Carona Urban Affairs 4/23/2001 Engrossed BACKGROUND AND PURPOSE The Texas Housing Finance Corporations Act is unclear regarding the allowed uses of bond proceeds by a housing finance corporation. Senate Bill 1287 amends the definition of "residential development" and authorizes a housing finance corporations to use bond proceeds for any cost associated with providing affordable housing. RULEMAKING AUTHORITY It is the opinion of the Office of Senate Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS Senate Bill 1287 amends the Local Government Code to include in the definition of "residential development" as it relates to housing finance corporations the acquisition, construction, reconstruction, rehabilitation, repair, alteration, improvement, or extension of any facilities used for the purpose of delivering social services, including child care, transportation, and basic adult education, that are provided to individuals in low income housing. The bill also authorizes a housing finance corporation to issue bonds to defray in whole or in part any costs associated with the provision of decent, safe, and sanitary housing and nonhousing facilities that are an integral part of or are functionally related to an affordable housing project. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.