LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 28, 2025 TO: Honorable Cecil Bell, Chair, House Committee on Intergovernmental Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3792 by Talarico (Relating to the identification, use, and taxation of surplus state property suitable for the development of affordable housing.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3792, As Introduced: a negative impact of ($4,523,526) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026($2,034,470)2027($2,489,056)2028($1,489,056)2029($1,489,056)2030($1,489,056)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20252026($2,034,470)2.02027($2,489,056)2.02028($1,489,056)2.02029($1,489,056)2.02030($1,489,056)2.0 Fiscal AnalysisThe bill would amend the Natural Resources Code and the Tax Code to require the General Land Office (GLO) to established a digitized inventory of surplus state property located in certain municipalities and counties. The bill would direct GLO to collaborate with the Texas Department of Housing and Community Affairs (TDHCA) to: identify any surplus state property that may feasibly be developed to provide affordable housing; analyze and rank those properties based on specified criteria; and to issue requests for proposals (RFP) from developers of affordable housing to develop affordable housing on those properties. The bill would take effect on September 1, 2025.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 28, 2025
TO: Honorable Cecil Bell, Chair, House Committee on Intergovernmental Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3792 by Talarico (Relating to the identification, use, and taxation of surplus state property suitable for the development of affordable housing.), As Introduced
TO: Honorable Cecil Bell, Chair, House Committee on Intergovernmental Affairs
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB3792 by Talarico (Relating to the identification, use, and taxation of surplus state property suitable for the development of affordable housing.), As Introduced
Honorable Cecil Bell, Chair, House Committee on Intergovernmental Affairs
Honorable Cecil Bell, Chair, House Committee on Intergovernmental Affairs
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB3792 by Talarico (Relating to the identification, use, and taxation of surplus state property suitable for the development of affordable housing.), As Introduced
HB3792 by Talarico (Relating to the identification, use, and taxation of surplus state property suitable for the development of affordable housing.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3792, As Introduced: a negative impact of ($4,523,526) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3792, As Introduced: a negative impact of ($4,523,526) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
2026 ($2,034,470)
2027 ($2,489,056)
2028 ($1,489,056)
2029 ($1,489,056)
2030 ($1,489,056)
All Funds, Five-Year Impact:
2026 ($2,034,470) 2.0
2027 ($2,489,056) 2.0
2028 ($1,489,056) 2.0
2029 ($1,489,056) 2.0
2030 ($1,489,056) 2.0
Fiscal Analysis
The bill would amend the Natural Resources Code and the Tax Code to require the General Land Office (GLO) to established a digitized inventory of surplus state property located in certain municipalities and counties. The bill would direct GLO to collaborate with the Texas Department of Housing and Community Affairs (TDHCA) to: identify any surplus state property that may feasibly be developed to provide affordable housing; analyze and rank those properties based on specified criteria; and to issue requests for proposals (RFP) from developers of affordable housing to develop affordable housing on those properties. The bill would take effect on September 1, 2025.
The bill would take effect on September 1, 2025.
Methodology
Based on information provided by GLO, the agency would require an appropriation to implement the provisions of the bill, totaling $1,949,343 in fiscal year 2026 and $2,406,679 in fiscal year 2027 from the General Revenue Fund. GLO states that the agency would require one additional Project Manager III position (1.0 FTE) to process, analyze, and rank properties based on the criteria in the bill, draft and issue Requests for Proposals (RFPs), and other duties. The FTE would have an annual salary of $94,939 and benefits of $24,404 each fiscal year. In addition, the agency states that it would require external engineering and consultant services to evaluate surplus properties at an estimate of up to $250,000 per building site for five properties per year, for a total of $1,250,000 in ongoing professional services each fiscal year. Based on information provided by TDHCA, the agency would require an appropriation to implement the provisions of the bill, totaling $85,127 in fiscal year 2026 and $82,377 in fiscal year 2027 from the General Revenue Fund. TDHCA would require one additional Program Specialist III position (1.0 FTE) to assist GLO in developing a scoring system to rank qualifying sites, scoring and analyzing those sites, developing RFPs, and evaluating RFP responses. This FTE would have an annual salary of $62,136 and benefits of $18,591, and would require $1,650 annually for miscellaneous operating expenses.
Based on information provided by TDHCA, the agency would require an appropriation to implement the provisions of the bill, totaling $85,127 in fiscal year 2026 and $82,377 in fiscal year 2027 from the General Revenue Fund. TDHCA would require one additional Program Specialist III position (1.0 FTE) to assist GLO in developing a scoring system to rank qualifying sites, scoring and analyzing those sites, developing RFPs, and evaluating RFP responses. This FTE would have an annual salary of $62,136 and benefits of $18,591, and would require $1,650 annually for miscellaneous operating expenses.
Technology
Based on information provided by GLO, the agency estimates that technology costs as a result of the bill would be $540,000 in fiscal year 2026 and $1,000,000 in fiscal year 2027 for developing and implementing the new digitized inventory system in collaboration with a vendor partner, with an additional $40,000 of ongoing costs each fiscal year for enterprise software acquisition and ongoing subscription costs to support the newly established system.Based on information provided by TDHCA, the agency's additional FTE would require $2,750 in fiscal year 2026 for one-time costs for hardware and software.
Based on information provided by TDHCA, the agency's additional FTE would require $2,750 in fiscal year 2026 for one-time costs for hardware and software.
Local Government Impact
The bill would allow for the exchange of surplus state property with other real property of a local government under certain circumstances. This provision could have fiscal implications for units of local government.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 305 General Land Office and Veterans' Land Board, 332 Department of Housing and Community Affairs
304 Comptroller of Public Accounts, 305 General Land Office and Veterans' Land Board, 332 Department of Housing and Community Affairs
LBB Staff: b > td > JMc, SZ, GDZ, DPE
JMc, SZ, GDZ, DPE