87R6465 JG-F By: Campos H.B. No. 1277 A BILL TO BE ENTITLED AN ACT relating to the operation of a transitional housing pilot program by the Texas Department of Housing and Community Affairs. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 2306.258, Government Code, is amended by amending Subsection (a) and adding Subsections (c) and (d) to read as follows: (a) With money contributed to the Ending Homelessness fund under Section 502.415, Transportation Code [If funds are available], the department shall operate a transitional housing pilot program in four areas of this [the] state. (c) The department may: (1) operate the program in coordination with one or more counties or municipalities; and (2) provide a grant from the Ending Homelessness fund under Section 502.415, Transportation Code, to a county or municipality with which the department coordinates to operate the program. (d) The department may adopt rules as necessary to implement this section. SECTION 2. Sections 502.415(f) and (g), Transportation Code, are amended to read as follows: (f) The Ending Homelessness fund is created as a trust fund outside the state treasury to be held by the comptroller and administered by the Texas Department of Housing and Community Affairs as trustee. The fund is composed of money deposited to the credit of the fund under this section. Money in the fund shall be used to provide grants to counties and municipalities to combat homelessness, including, as applicable, a county or municipality with which the Texas Department of Housing and Community Affairs coordinates to operate the transitional housing pilot program under Section 2306.258, Government Code. (g) The Texas Department of Housing and Community Affairs shall: (1) adopt rules governing application for grants from the Ending Homelessness fund and the issuance of those grants; and (2) give priority in issuing grants from the fund to counties and municipalities that coordinate with the Texas Department of Housing and Community Affairs in the operation of the transitional housing pilot program under Section 2306.258, Government Code. SECTION 3. This Act takes effect September 1, 2021.