SB 0750 - Fiscal Note

Fiscal Note - SB 0750 - Requires Hearings Prior to Housing Project Agreements

L.R. NO.  2757-03
BILL NO.  SB 750
SUBJECT:  Housing development-Cities and Counties
TYPE:     Updated
DATE:     February 21, 1996
# Updated to reflect updated information from Missouri Housing Development
Commission.


                             # FISCAL SUMMARY
                   # ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
None

Total Estimated
Net Effect on All
State Funds*                  # $0                # $0                $0

Missouri Housing Development Commission Fund is NOT a State Fund.



                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
None

Total Estimated
Net Effect on All
Federal Funds                   $0                  $0                $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
Local Government                $0                  $0                $0


                             # FISCAL ANALYSIS

# ASSUMPTION

Officials of the Missouri Housing Development Commission (MHDC) state this
legislation would require MHDC to publish a notice of a hearing and hold a
hearing before granting $125,000 or more in subsidies or tax credits to any
multi-family rental housing development.  It would require that the
advertisement be placed in the largest newspaper of general circulation in
the city or county where the development is located.  The advertisement must
be at least twelve column inches in size and must be published at least
fourteen days and not more than thirty days before the public hearing.

Because the Missouri Housing Development Commission s operating expenses are
no longer funded with state funds, we have not included any impact to the
MHDC fund on the summary of state fiscal impact.  We have, however, detailed
for your information how this proposal would impact Commission operating
costs.  The largest single expense to MHDC is the cost of paying for the
required advertisements.  Last year MHDC funded 47 applications which
requested at least $125,000 in subsidies or tax credits.  MHDC funded 34%
from the St. Louis area, 15% from the Kansas City area, 11% from the
Springfield area and 40% from outstate areas.  We used these figures to
estimate the number of advertisements which would be required.  The following
figures for advertisements are based on a 12 column inch advertisement in the
largest circulation newspaper in each of these areas.

   St. Louis Post-Dispatch         $ 934.08 x 16 projects = $ 14,945.28
   Kansas City Star                $ 584.64 x 7 projects = $4,092.48
   Springfield New Leader          $ 201.60 x 5 projects = $ 1,008.00
   Sikeston Standard Democrat      $ 76.68 x 19 projects = $ 1,456.92

Note: The Sikeston Standard Democrat is estimated to be representative of
outstate areas.

TOTAL COST OF ADVERTISEMENTS IS  $ 21,502.68 for the first full year of
implementation.
Therefore, MHDC would have to budget $17,919 for advertisements in FY 97 and
21,503 in FY 98 and FY 99.

MHDC also assumes that a .5 clerk typist II would be required to post and
monitor the publication of hearing notices in newspapers and make
arrangements for the hearings.

Note-The Missouri Housing Development Commission Fund is not a state fund.

Oversight assumes that the MHDC could handle the provisions of this proposal
with existing personnel. Oversight also assumes this proposal would not
fiscally impact state or local funds and will show a zero impact for this
legislation.

# FISCAL IMPACT - State Government     FY 1997   FY 1998   FY 1999
                                      (10 Mo.)

                                             0         0         0

FISCAL IMPACT  - Local Government      FY 1997   FY 1998   FY 1999
                                      (10 Mo.)

                                             0         0         0

DESCRIPTION

This legislation would require the Missouri Housing Development Commission to
publish a notice of a hearing before granting $125,000 or more in subsidies
or tax credits to any multi-family rental housing development. It would
require that the advertisement be placed in the largest newspaper of general
circulation in the city or county where the development is located. The
advertisement must be at lease twelve column inches in size and must be
published at least fourteen days and not more than thirty days before the
public hearing.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.

SOURCES OF INFORMATION

Missouri Housing Development Commission