This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0109 - Establishes a rural housing development program
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 0073-04
BILL NO.: SB 109
SUBJECT: Housing, Manufactured Housing
TYPE: Original
DATE: January 18, 1999
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| General Revenue | $0 to ($1,000,000) | $0 to ($1,000,000) | $0 to ($1,000,000) |
| Total Estimated
Net Effect on All State Funds |
$0 to ($1,000,000) | $0 to ($1,000,000) | $0 to ($1,000,000) |
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
The Department of Economic Development - Missouri Housing Development Commission (MHDC) assumes this proposal would create a revolving loan fund for a rural single-family construction program in rural areas. Funds from the repayment of the loans would be placed back into the revolving loan fund. The amount of each loan from the revolving fund would be limited to $70,000. MHDC assumes this proposal would require MHDC to partner with non-profit housing agencies new single family housing in rural areas. MHDC assumes a $1 million loan fund would allow for the construction of approximately 10 to 15 houses annually. Accordingly, MHDC assumes they would be able to carry out the requirements of the proposal with existing resources.
Oversight assumes the revolving loan fund would be administered by a not-for-profit corporation. Oversight assumes that upon the sale of a home, the proceeds would be placed in the revolving fund and used to fund the construction of another home. Oversight assumes any deficit on the sale of a home would be repaid by the nonprofit corporation. Any surplus would remain in the revolving fund to be used for the public benefit in development or rehabilitation of housing.
The Department of Revenue (DOR) assumes there would have no fiscal impact to the agency as a result of this proposal.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| GENERAL REVENUE FUND | |||
| Cost - (subject to appropriation) | |||
| Rural Housing Development Loans | $0 | $0 | $0 |
| to | to | to | |
| ($1,000,000) | ($1,000,000) | ($1,000,000) | |
|
ESTIMATED NET EFFECT ON |
$0 to | $0 to | $0 to |
| GENERAL REVENUE FUND | ($1,000,000) | ($1,000,000) | ($1,000,000) |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| $0 | $0 | $0 | |
| FISCAL IMPACT - Small Business | |||
| This proposal may have positive fiscal impact on small businesses that sell building material, if this proposal increases the purchase of building materials and supplies. | |||
DESCRIPTION
This proposal would establish a rural housing development program to be administered by the Missouri Housing Development Commission (MHDC). The program would authorize no-interest loans for the construction of single family homes. The maximum loan would be $70,000. Any non-profit organization may apply to the MHDC for funding. The MHDC would make the loans according to need. The Commission may require an expiration date of the loan, progress reports, and inspections of the construction sites. Loans are to be put in a revolving fund to build homes one at a time, as they are sold. Homes would be constructed on site only where water and sewer services are available. All homes would be constructed according to rural development building standards of the USDA. Homes would be sold at cost plus a $2,500 fee for any construction supervisor hired. Priority would be given to low- and moderate-income families. Every sales contract would contain an anti-speculation clause to deter buyers from reselling the home to make a profit.
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
Department of Economic Development
Missouri Housing Development Commission
Department of Revenue
Office of Administration
Division of Budget and Planning
Jeanne Jarrett, CPA
Director
January 18, 1999