Issues Related to the Provision of Housing and Utilities to Employees Page: 2 of 15
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The Honorable Mike Moncrief
Texas State Senate
April 7, 1997
Page 2
Although two of the agencies reviewed have converted some of their former housing units
to other uses (TDCJ and TDMHMR), none of the agencies have performed a comprehensive
study of alternative uses for their properties. As a result, it is possible that the agencies may
not be making the best use of some of these state assets; additionally, in some instances the
provision of surplus rental properties to selected employees may be outside an agency's
primary mission.
It appears that recovery of costs on housing properties has not been a priority for the
agencies. With most of the agencies reviewed, cost accounting for housing properties is
decentralized to the facility level. Agency attempts at cost/benefit analysis and monitoring
appear to be limited, and in some instances we were furnished with only estimates or partial
estimates of agencies' costs (TDCJ, TDMHMR, and TPWD).
Based on the information provided, it appears that none of the agencies are recovering the
maintenance costs on their housing properties; moreover, the majority of housing recipients
receive utilities free of charge. In the instances where rent is charged, rates are generally well
below the fair market rate, and in some cases rental schedules have not been updated for
decades. In some instances standard lease agreements have not been required, and as a
result, agency assets and interests have not been adequately protected.
There are no statewide policies or guidelines governing the provision of housing benefits to
employees; agencies have been permitted to establish their own criteria. As a result, housing
benefits have been allocated inconsistently both within and between agencies. In some
instances there are no written policies or procedures for the selection of housing recipients,
nor is there an appeals process. Where policies exist, housing decisions may be subject to
a facility supervisor's discretion, the availability of housing properties, or funding at a
facility. Inequities also arise from:
* The lack of comparability between housing properties at different locations
* The difference in value between the in-kind housing provided to some recipients
versus the cash payments provided to others
* The failure in some cases to provide compensation to eligible recipients in the absence
of available housing
Except where employees receive a monthly cash allowance, none of the agencies currently
report the value of housing benefits provided in employees' total compensation, impeding
attempts at salary comparisons. In the cases where residence in agency-supplied housing is
not essential for employees to satisfactorily perform their duties, the agencies' failure to
report the fair value of housing benefits in employee compensation exposes both the
agencies and their employees to potential tax liabilities and penalties.
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Alwin, Lawrence F. Issues Related to the Provision of Housing and Utilities to Employees, report, April 7, 1997; (https://texashistory.unt.edu/ark:/67531/metadc821158/m1/2/: accessed June 11, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.