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.