HBA-MPM S.J.R. 50 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.J.R. 50
By: Lucio
Urban Affairs
5/9/2001
Engrossed



BACKGROUND AND PURPOSE 

The housing trust fund is the sole program funded by the state to provide
affordable housing units for very low and low-income households.  The
housing trust fund is primarily funded by general revenue funds.  As
proposed, Senate Joint Resolution 50 requires the submission to the voters
of a constitutional amendment to enable the legislature to increase the
revenue available to the housing trust fund through the issuance of a
general obligation bond by the Texas Department of Housing and Community
Affairs. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this resolution
does not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

Senate Joint Resolution amends the Texas Constitution to authorize the
legislature by general law to authorize the Texas Department of Housing and
Community Affairs (TDHCA) to issue and sell bonds of the state called Texas
Housing Bonds in an amount that does not exceed $100 million.  The
resolution requires the bonds to bear a rate or rates of interest
determined by TDHCA, except that the legislature is required to set the
maximum net effective interest rate to be borne by the bonds.  The
resolution provides that the obligation of TDHCA under the agreement to
make payments with respect to principal of or interest on the bonds also
constitutes a general obligation of the state.  The resolution requires all
money received from the sale of the bonds to be deposited in the housing
trust fund to finance affordable housing for low and very low income
persons.  The resolution provides that while any of the bonds or interest
on the bonds is outstanding and unpaid, an amount sufficient to pay the
principal of and interest on the bonds that mature or become due during the
fiscal year including payments made during the fiscal year by TDHCA is
appropriated out of the first money coming into the treasury each fiscal
year not otherwise appropriated by the constitution. 

FOR ELECTION

This proposed constitutional amendment shall be submitted to the voters at
an election to be held November 6, 2001.