Eckhardt’s Rental Pilot Spends Up To $3,500 Per Household

The text as introduced · 999 words

89R903 JAM-D

By: Eckhardt
S.B. No. 337

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.