Bill Caption

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for SB 2063: a negative impact of ($1,000,000) through the biennium ending August 31, 2017. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. 

Bill Analysis

SB 2063 would amend the Government Code to establish and administer the Texas Safe Home Demonstration Program. 

The Texas Department of Housing and Community Affairs would establish in certain counties designated by the department, a demonstration program to provide financial assistance for the repair of or the demolition and replacement of owner-occupied single-family homes that are in a condition that poses a risk to the health and safety of the occupants. 

Financial assistance through this program may be provided in the form of a grant, partial grant, loan, or forgivable loan.

The board may adopt rules to implement the program described by this section. The department shall establish criteria to implement the demonstration program. 

To be eligible for the program: a homeowner may not have an annual income that, as determined by the department and when combined with the income of all persons who reside with the homeowner, exceeds 50 percent of the greater of the state or local median household income and must own and occupy a home, including a manufactured home, as a primary residence for a period of not less than the 180 days preceding the date of the homeowner ’s application for financial assistance under this subchapter; and that has, after an inspection conducted under the demonstration program, been identified as substandard, in need of repair or replacement, and posing a potential risk to the health and safety of the occupants.

If a homeowner is approved for participation in the demonstration program, the occupants of the home shall be assisted in relocating to temporary housing for a period not to exceed two years pending the repair or replacement of the home.

If a homeowner has filed a claim for insurance proceeds associated with damage to the home, any proceeds from the claim must first be used to pay for any covered repair or replacement costs of the home.

The department may reserve for payment of administrative expenses not more than 10 percent of money received for the demonstration program under this subchapter. Of the 10 percent, the department shall determine an appropriate allocation to cover the administrative expenses of any identified administrators.

Vote Recommendation Notes

SB 2063 would subsidize the repairs of homes through a pilot program and put the families in new homes for up to two years while their personal home is being rebuilt/repaired. This would all be free to the homeowners at the expense of the taxpayers of Texas. 

This bill is well-intentioned enough but good intentions unfortunately often lead to bad policy. This bill represents a clear expansion of government into the realm of things which should be (and very often are) done by private individuals and charitable organizations. For these reasons we oppose SB 2063.