SB 337

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,
(1)  are currently experiencing homelessness,
including newly homeless individuals and families for whom
providing assistance will prevent further homelessness and housing
(2)  are fleeing, or attempting to flee, domestic
violence, dating violence, sexual assault, stalking, or human
(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
(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
(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
(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
(B)  assistance with the completion of rental
(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
(B)  the provision of security deposit
assistance, provided that the deposit does not exceed the lesser
(ii)  the maximum security deposit allowed
under applicable state or local law; or
(iii)  the actual security deposit required
(C)  assistance in obtaining utility services,
including any required deposit or the payment of arrears owed to a
(D)  the payment of initial moving expenses;
(E)  the purchase of essential household items;
(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,
(A)  payments to a landlord who provides housing
(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
(3)  an analysis of housing outcomes for program
(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
(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
(i)  This section expires September 1, 2030.
SECTION 2.  Section 394.003(13), Local Government Code, is
(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
SECTION 3.  This Act takes effect September 1, 2025.