Bill: SB 1118, 86(R) - 2019

Committee

Senate Intergovernmental Relations

Vote Recommendation

Vote Recommendation Economic Freedom Property Rights Personal Responsibility Limited Government Individual Liberty
No Neutral Neutral Neutral Negative Neutral

Author(s)

Eddie Lucio Jr.

Bill Caption

Relating to programs operated by the Texas Department of Housing and Community Affairs to increase access to safe and affordable housing in this state.

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for SB 1118, Committee Report 1st House, Substituted: a negative impact of ($1,378,967) through the biennium ending August 31, 2021.

The bill contains the following language: The Department of Housing and Community Affairs is required to implement a provision of this Act only if the legislature appropriates money specifically for that purpose. If the legislature does not appropriate money specifically for that purpose, the department may, but is not required to, implement a provision of this Act using other appropriations available for that purpose.

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

The Housing Trust Fund (HTF) was created in 1991 in order to create affordable housing for low-income and very low-income individuals and families. The HTF provides funding for the Texas Bootstrap Self-Help Loan Program and the Amy Young Barrier Removal Program (AYBRP). SB 1118 would make several statutory updates to this fund.

SB 1118 would update the income threshold to 80 percent of area median income or 80 percent of the statewide income limits for participation in the AYBRP; codify the AYBRP; and address the statutory amount allotted to the Bootstrap Program. More specifically, it would prohibit a grant awarded under AYBRP from exceeding $20,000, and would allow the Texas Department of Housing and Community Affairs (TDHCA) to periodically adjust the ATBRP grant award amounts to address cost increases. It would also increase the allotted amount to the Bootstrap Program to $4 million, rather than $3 million per year.

Vote Recommendation Notes

Texas Action recommends opposing SB 1118 on the basis of limited government. It is not the proper role of the state to use public funds to subsidize housing or improvements to housing; this is a role more suited for philanthropic organizations. A more limited government approach to increasing affordable housing would be to reduce property taxes and barriers to development, not increase spending for these state programs.

Source URL (retrieved on 04/25/2024 07:04 AM): http://reports.texasaction.com/bill/86r/sb1118?print_view=true