Texas Senate Bill SB1858

Texas 2019 - 86th Regular

Caption

Relating to private activity bonds.

Impact

The bill's adjustments to the state ceiling percentages aim to expand the capacity of housing finance corporations to issue bonds for qualified mortgage projects. By increasing the percentages available for certain types of bonds, the legislation addresses the growing demand for affordable housing solutions, allowing more funds to be allocated to housing projects. This change seeks to bolster economic development in the housing sector, potentially benefiting both renters and housing developers throughout the state.

Summary

Senate Bill 1858 aims to amend existing laws related to private activity bonds, specifically focusing on how these bonds are allocated for financing residential rental projects and mortgage assistance. The bill outlines adjustments to various sections of the Government Code to change the distribution percentages of the state ceiling available for different categories of bonds, including residential rental project bonds and qualified mortgage bonds. This change seeks to provide more flexibility and efficiency in the allocation process, ultimately enhancing housing finance opportunities in Texas.

Contention

There is likely to be contention surrounding the adjustments proposed in SB1858, particularly with respect to how these changes could benefit larger housing finance corporations over smaller entities. Critics may express concerns that the new allocations favor certain projects and could exclude smaller, community-focused housing initiatives. The discussions around the bill highlight the balancing act of meeting the urgent housing needs while ensuring equitable access to funding for diverse projects and communities across Texas.