LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 15, 2025 TO: Honorable Greg Bonnen, Chair, House Committee on Appropriations FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4601 by Cortez (Relating to the establishment of a down payment assistance grant program for veterans purchasing manufactured homes and the dedication of certain sales and use tax revenue to finance that program.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB4601, As Introduced: a negative impact of ($7,724,000) 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($3,862,000)2027($3,862,000)2028($3,862,000)2029($3,862,000)2030($3,862,000)All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromNEW Down Payment Assistance Program Fund Probable (Cost) fromNEW Down Payment Assistance Program Fund Change in Number of State Employees from FY 20252026($3,862,000)$3,862,000($774,597)3.02027($3,862,000)$3,862,000($766,605)3.02028($3,862,000)$3,862,000($766,605)3.02029($3,862,000)$3,862,000($766,605)3.02030($3,862,000)$3,862,000($766,605)3.0 Fiscal AnalysisThe bill would amend the Natural Resources Code relating to the Veterans' Housing Assistance Program and the establishment of the Down Payment Assistance Program (program) for veterans purchasing manufactured homes. The bill would define a manufactured home to mean a HUD-code manufactured home or a mobile home and directs the Veterans' Land Board (VLB) to award grants to eligible veterans to be used as down payment assistance for the purchase of new manufactured homes. Manufactured homes would be able to be leased, transferred, sold, or conveyed after the veteran has occupied the home as their principal residence for three years after the purchase date and with VLB approval. The bill would establish the criteria for veterans to be eligible for the program; the rules of the program; and the Manufactured Home Grant Fund (MHGF).The bill would establish a new MHGF, a special fund in the state treasury outside the General Revenue Fund for the purposes of awarding grants and for paying the reasonable expenses of managing the fund and its assets. The fund would consist of money transferred by the Comptroller under Section 158.059 of the Tax Code; money the legislature appropriates, credits, or transfers to the fund; gifts and grants including grants from the federal government and other donations received for the fund; and investment earnings and interest earned on amounts credited to the fund.The bill would amend the Tax Code, directing 10.0 percent of the revenue received by the Comptroller under Chapter 158 of the Tax Code be deposited to the credit of the new fund.Note: This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either in, with, or outside the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 15, 2025
TO: Honorable Greg Bonnen, Chair, House Committee on Appropriations FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4601 by Cortez (Relating to the establishment of a down payment assistance grant program for veterans purchasing manufactured homes and the dedication of certain sales and use tax revenue to finance that program.), As Introduced
TO: Honorable Greg Bonnen, Chair, House Committee on Appropriations
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB4601 by Cortez (Relating to the establishment of a down payment assistance grant program for veterans purchasing manufactured homes and the dedication of certain sales and use tax revenue to finance that program.), As Introduced
Honorable Greg Bonnen, Chair, House Committee on Appropriations
Honorable Greg Bonnen, Chair, House Committee on Appropriations
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB4601 by Cortez (Relating to the establishment of a down payment assistance grant program for veterans purchasing manufactured homes and the dedication of certain sales and use tax revenue to finance that program.), As Introduced
HB4601 by Cortez (Relating to the establishment of a down payment assistance grant program for veterans purchasing manufactured homes and the dedication of certain sales and use tax revenue to finance that program.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB4601, As Introduced: a negative impact of ($7,724,000) 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 HB4601, As Introduced: a negative impact of ($7,724,000) 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 ($3,862,000)
2027 ($3,862,000)
2028 ($3,862,000)
2029 ($3,862,000)
2030 ($3,862,000)
All Funds, Five-Year Impact:
2026 ($3,862,000) $3,862,000 ($774,597) 3.0
2027 ($3,862,000) $3,862,000 ($766,605) 3.0
2028 ($3,862,000) $3,862,000 ($766,605) 3.0
2029 ($3,862,000) $3,862,000 ($766,605) 3.0
2030 ($3,862,000) $3,862,000 ($766,605) 3.0
Fiscal Analysis
The bill would amend the Natural Resources Code relating to the Veterans' Housing Assistance Program and the establishment of the Down Payment Assistance Program (program) for veterans purchasing manufactured homes. The bill would define a manufactured home to mean a HUD-code manufactured home or a mobile home and directs the Veterans' Land Board (VLB) to award grants to eligible veterans to be used as down payment assistance for the purchase of new manufactured homes. Manufactured homes would be able to be leased, transferred, sold, or conveyed after the veteran has occupied the home as their principal residence for three years after the purchase date and with VLB approval. The bill would establish the criteria for veterans to be eligible for the program; the rules of the program; and the Manufactured Home Grant Fund (MHGF).The bill would establish a new MHGF, a special fund in the state treasury outside the General Revenue Fund for the purposes of awarding grants and for paying the reasonable expenses of managing the fund and its assets. The fund would consist of money transferred by the Comptroller under Section 158.059 of the Tax Code; money the legislature appropriates, credits, or transfers to the fund; gifts and grants including grants from the federal government and other donations received for the fund; and investment earnings and interest earned on amounts credited to the fund.The bill would amend the Tax Code, directing 10.0 percent of the revenue received by the Comptroller under Chapter 158 of the Tax Code be deposited to the credit of the new fund.Note: This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either in, with, or outside the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Methodology
For the purposes of this analysis, costs reflected in the table above assume FTE related costs, other operating expenses, and grants awarded by the new Down Payment Assistance Program would be funded through the newly created MHGF established by the bill.The receipts of revenue attributable to the tax imposed under Chapter 158 (Manufactured Housing Sales and Use Tax) of the Tax Code are deposited to the General Revenue Fund under current law. The bill would direct 10.0 percent of those proceeds to be deposited to the credit of the new MHGF established by the bill. Based on forecasts from the 2026-27 Biennial Revenue Estimate, the bill would result in a projected decrease in revenue for the state from the manufactured home sales and use tax by approximately ($3,862,000) each fiscal year. The bill would result in an increase in revenue deposited to the credit of the MHGF administered by the VLB by the same amount.Appropriations for the VLB are included in the bill pattern for the General Land Office and Veterans' Land Board (GLO/VLB) in the General Appropriations Act each biennium.Based on information provided by the GLO/VLB, this analysis assumes the cost for implementing provisions of the bill would include $274,597 in FY 2026 and $266,605 in FY 2027 from the fund, with $20,000 of these amounts in each fiscal year being for marketing and advertisement for the program, and $50,586 each fiscal year for benefit costs for the additional FTEs. It is assumed that the GLO/VLB would require three additional FTEs (3.0 FTEs), including one FTE Loan Specialist I (1.0 FTE) and two FTE Loan Specialist II positions (2.0 FTEs), to perform additional duties involving rulemaking, contract oversight, accounting, and fund management activities to implement the provisions of the bill. It is also assumed that the GLO/VLB would use money in the fund to award grants and pay expenses of managing the fund and the fund's assets, including the three associated FTEs.For the purposes of this analysis and absent of any information provided by the GLO/VLB, amounts reflected in the table above assume that 50 individual veterans would apply for and receive down payment assistance grants at $10,000 each for purchasing manufactured homes for a total cost from the fund of $500,000 each fiscal year in grants awarded.
For the purposes of this analysis, costs reflected in the table above assume FTE related costs, other operating expenses, and grants awarded by the new Down Payment Assistance Program would be funded through the newly created MHGF established by the bill.
The receipts of revenue attributable to the tax imposed under Chapter 158 (Manufactured Housing Sales and Use Tax) of the Tax Code are deposited to the General Revenue Fund under current law. The bill would direct 10.0 percent of those proceeds to be deposited to the credit of the new MHGF established by the bill. Based on forecasts from the 2026-27 Biennial Revenue Estimate, the bill would result in a projected decrease in revenue for the state from the manufactured home sales and use tax by approximately ($3,862,000) each fiscal year. The bill would result in an increase in revenue deposited to the credit of the MHGF administered by the VLB by the same amount.
Appropriations for the VLB are included in the bill pattern for the General Land Office and Veterans' Land Board (GLO/VLB) in the General Appropriations Act each biennium.
Based on information provided by the GLO/VLB, this analysis assumes the cost for implementing provisions of the bill would include $274,597 in FY 2026 and $266,605 in FY 2027 from the fund, with $20,000 of these amounts in each fiscal year being for marketing and advertisement for the program, and $50,586 each fiscal year for benefit costs for the additional FTEs. It is assumed that the GLO/VLB would require three additional FTEs (3.0 FTEs), including one FTE Loan Specialist I (1.0 FTE) and two FTE Loan Specialist II positions (2.0 FTEs), to perform additional duties involving rulemaking, contract oversight, accounting, and fund management activities to implement the provisions of the bill. It is also assumed that the GLO/VLB would use money in the fund to award grants and pay expenses of managing the fund and the fund's assets, including the three associated FTEs.
For the purposes of this analysis and absent of any information provided by the GLO/VLB, amounts reflected in the table above assume that 50 individual veterans would apply for and receive down payment assistance grants at $10,000 each for purchasing manufactured homes for a total cost from the fund of $500,000 each fiscal year in grants awarded.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 305 General Land Office and Veterans' Land Board
304 Comptroller of Public Accounts, 305 General Land Office and Veterans' Land Board
LBB Staff: b > td > JMc, KK, MW, JDio
JMc, KK, MW, JDio