89R903 JAM-D

By: Walle H.B. No. 714

A BILL TO BE ENTITLED

AN ACT

relating to the establishment and implementation by the Texas Department of Housing and Community Affairs of the Texas Tenant Readiness and Landlord Incentive Pilot Program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter K, Chapter 2306, Government Code, is amended by adding Section 2306.254 to read as follows:

Sec. 2306.254. TEXAS TENANT READINESS AND LANDLORD INCENTIVE PILOT PROGRAM. (a) In this section:

(1) "Program" means the Texas Tenant Readiness and Landlord Incentive Pilot Program.

(2) "Program participant" means an individual or family who receives assistance under the program.

(b) The department shall establish and implement the Texas Tenant Readiness and Landlord Incentive Pilot Program to enable the department to contract with and provide funding to local governmental entities, including county and municipal housing authorities, and nonprofit organizations for the purpose of assisting, and providing incentives to landlords with respect to, individuals and families who:

(1) are currently experiencing homelessness, including newly homeless individuals and families for whom providing assistance will prevent further homelessness and housing instability;

(2) are fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking; or

(3) were recently homeless or otherwise have a high risk of housing instability, including persons experiencing chronic homelessness and persons with disabilities.

(c) To identify local governmental entities to administer the program, the department shall:

(1) issue a notice of funding availability; and

(2) establish an application and selection process as described by Subsection (d).

(d) The application process established under Subsection (c)(2) must require a local governmental entity to submit to the department a housing search assistance plan that demonstrates the entity's ability to help individuals and families obtain housing in the area served by the entity. In selecting local governmental entities to administer the program, the department shall consider an applicant's:

(1) ability to serve:

(A) rural areas; and

(B) a variety of populations as differentiated by age, gender, race, or ethnicity; and

(2) existing partnerships with other relevant local entities, including landlords, direct service providers, and housing authorities.

(e) A local governmental entity selected by the department to administer the program may provide financial and other forms of assistance, not to exceed a total value of $3,500 per household, to cover the qualified costs of individuals and families described by Subsection (b) who are recipients of assistance provided through the housing choice voucher program authorized under Section 8, United States Housing Act of 1937 (42 U.S.C. Section 1437f), or another federal, state, or local housing voucher program.

(f) Qualified costs under Subsection (e):

(1) must include costs associated with a program participant's initial housing search, including:

(A) the identification and visitation of residential units that meet the participant's needs, including any disability-related needs; and

(B) assistance with the completion of rental applications and forms;

(2) may include other tenant-related costs associated with obtaining housing, including:

(A) the payment of a holding fee required by a landlord after a tenant's application has been accepted but before the tenant's lease is signed;

(B) the provision of security deposit assistance, provided that the deposit does not exceed the lesser of:

(i) two months' rent;

(ii) the maximum security deposit allowed under applicable state or local law; or

(iii) the actual security deposit required by the landlord;

(C) assistance in obtaining utility services, including any required deposit or the payment of arrears owed to a utility service provider;

(D) the payment of initial moving expenses;

(E) the purchase of essential household items;

(F) renter's insurance; and

(G) the creation of a customized plan to address or mitigate barriers a program participant may encounter in attempting to obtain housing; and

(3) may include landlord-related incentives, including:

(A) payments to a landlord who provides housing under the program; and

(B) the payment of a landlord's costs associated with any inspection or pre-inspection necessary to allow a residential unit to be used in the program.

(g) Not later than January 1, 2030, the department shall submit to the legislature a report documenting the outcomes of the pilot program. The report must include:

(1) demographic information relating to program participants, including identifiable demographic trends;

(2) a summary of the use of the financial assistance provided under the program;

(3) an analysis of housing outcomes for program participants, including:

(A) the period for which a program participant remained in the residential unit that was the focus of the initial assistance provided under the program; and

(B) any other known housing outcomes associated with program participants;

(4) a summary of the experiences of the local governmental entities that administered the program, and those entities' suggested improvements to the program; and

(5) an analysis of the program's success in serving individuals and families living in rural areas of the state.

(h) The department shall adopt rules necessary to administer the pilot program. Rules adopted under this section must establish eligibility requirements for participation in the program.

(i) This section expires September 1, 2030.

SECTION 2. Section 394.003(13), Local Government Code, is amended to read as follows:

(13) "Residential development" means the acquisition, construction, reconstruction, rehabilitation, repair, alteration, improvement, or extension of any of the following items or any combination of the following items for the purpose of providing decent, safe, and sanitary housing and nonhousing facilities that are an integral part of or are functionally related to any affordable housing project, whether in one or multiple locations, including any facilities used for the purpose of delivering tenant services[, as defined by Section 2306.254, Government Code]:

(A) land, an interest in land, a building or other structure, facility, system, fixture, improvement, addition, appurtenance, or machinery or other equipment;

(B) real or personal property considered necessary in connection with an item described by Paragraph (A); or

(C) real or personal property or improvements functionally related and subordinate to an item described by Paragraph (A).

SECTION 3. This Act takes effect September 1, 2025.