Texas Senate Bill SB2289

Texas 2009 - 81st Regular

Caption

Relating to the housing trust fund and the issuance of general obligation bonds by the Texas Department of Housing and Community Affairs to provide money for the fund.

Impact

The bill restructures how funding is raised and allocated to housing initiatives. By allowing for the issuance of up to $50 million in general obligation bonds each fiscal year, SB2289 represents a significant investment in affordable housing solutions. The new provisions will help streamline the collection of funds through bond sales while also establishing a legal framework for the responsible management and disbursement of these finances for housing support, safety, and compliance under established guidelines.

Summary

SB2289 is a legislative proposal aimed at amending and enhancing the existing framework of the housing trust fund in Texas. The bill facilitates the issuance of general obligation bonds by the Texas Department of Housing and Community Affairs specifically to increase funding for the housing trust fund. This will enable the state to bolster resources meant to assist individuals and families of low and very low income, ensuring that affordable housing remains accessible across Texas.

Contention

There may be points of contention surrounding the bill, particularly concerning the long-term implications of relying on general obligation bonds as a funding source. Critics may argue about potential volatility in funding cycles and the impact of debt obligations on the state's financial health. Supporters, however, are likely to emphasize the urgency of addressing the affordable housing crisis and the necessity of flexible funding mechanisms to adapt to changing economic conditions and demographic needs.