HBA-TYH S.J.R. 34 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.J.R. 34
By: Lucio
Financial Institutions
5/11/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, the state maintains a housing trust fund through the Texas
Department of Housing and Community Affairs to assist certain people to
acquire and maintain homes.  As proposed, S.J.R. 34 requires the submission
to the voters of a constitutional amendment to authorize issuance of $30
million in general obligation bonds to provide funds to finance owner-built
housing for low-income persons. 

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. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Article III, Texas Constitution, by adding Section 49-k,
as follows: 

Sec. 49-k.  (a)  Permits the legislature by general law to authorize the
Texas Department of Housing and Community Affairs (department) to issue and
sell up to $30 million in general obligation bonds of the state.  Requires
the bonds to be called "Texas Housing Bonds" and to be issued and sold in
forms and denominations, on terms, at times, in the manner, at places, and
in installments the department determines.    Requires the bonds to bear a
rate or rates of interest the department determines, except that the
legislature by general law is required to set the maximum net effective
interest rate to be borne by the bonds. 

(b)  Requires the obligation of the department or its successor under the
agreements to make payments with respect to principal of or interest on the
bonds to also constitute a general obligation of the state. 

(c)  Requires all money from the sale of the bonds to be deposited in the
department's housing trust fund administered by the department to finance a
program of owner-built housing for low-income persons.  Requires expenses
of issuance of the bonds and administration of the fund to be paid from the
fund.   

(d)  Appropriates, out of the first money coming into the treasury in each
fiscal year, an amount sufficient to pay the principal of and interest on
the bonds, including principal and interest payments made by department
under bond enhancement agreements. 

SECTION 2.  Requires this proposed constitutional amendment to be submitted
to the voters at an election to be held November 2, 1999.  Sets forth the
required language for the ballot.