Texas House Bill HB2296

Texas 2009 - 81st Regular

• Out of House Committee: 5/4/09

Caption

Relating to the administration of certain housing funds by the Texas Department of Housing and Community Affairs.

Impact

One of the bill's most significant impacts is the stipulation that, in each fiscal year, at least 2.6 million dollars from the housing trust fund be exclusively reserved for local units of government and nonprofit organizations. Additionally, the bill ensures that at least 45 percent of excess funds (beyond the initial 2.6 million) will also be allocated to nonprofit organizations for housing development. This allocation is intended to foster collaboration between state and local entities in addressing housing shortages, especially among vulnerable populations.

Summary

House Bill 2296 focuses on the administration of housing funds by the Texas Department of Housing and Community Affairs, specifically addressing how funds should be allocated and managed to improve housing programs across the state. The bill modifies existing regulations surrounding the housing trust fund to ensure a more systematic approach to fund distribution, which includes provisions for both local units of government and nonprofit organizations. It aims to enhance the accessibility of housing financing options for low-and moderate-income individuals and families in Texas.

Contention

Notable points of contention include the balance between support for nonprofit organizations versus for-profit entities in accessing funding. The bill permits the distribution of surplus funds to for-profit organizations, causing concern among some stakeholders who argue that such provisions may prioritize profits over community needs and the development of truly affordable housing. Critics also emphasize the need for strict oversight and evaluation criteria to ensure that funded projects serve low-income families effectively, and that funds do not inadvertently lead to displacement of those they aim to assist.