Texas House Bill HB78

Texas 2025 - 89th 1st C.S.

• Filed: 7/14/25

Caption

Relating to the establishment of the housing Texas fund to be administered by the Texas Department of Housing and Community Affairs.

Impact

The implementation of HB 78 is expected to have a significant impact on state laws related to housing assistance and nonprofit funding. According to the bill, 90% of the fund will be allocated to grants for nonprofit developers focusing on multifamily affordable housing. Additionally, 9% is designated for nonprofits that assist individuals and families transitioning out of homelessness, while 1% is reserved for one-time grants aimed at preventing homelessness. This structured funding approach aims to create a more organized system for addressing housing issues, particularly for vulnerable populations.

Summary

House Bill 78 aims to establish the Housing Texas Fund, which will be administered by the Texas Department of Housing and Community Affairs. This fund is designed to support developments and programs that provide affordable housing for low-income individuals and families. It will consist of appropriated money, transfers from other sources, interest earnings, and donations. The goal of the fund is to improve housing stability and reduce homelessness throughout the state. By providing targeted funding, the bill seeks to enhance the capacity of nonprofit organizations that specialize in affordable housing.

Contention

While proponents argue that the Housing Texas Fund will facilitate greater access to affordable housing and effectively address homelessness, there may be contention surrounding the management and distribution of funds. Critics could raise concerns about the adequacy of resources, particularly whether the 1% dedicated to one-time expenditures is sufficient to make a meaningful impact. Additionally, oversight of the fund's allocation by the Texas Department of Housing and Community Affairs could be scrutinized, questioning whether the department can effectively prioritize and manage grants to achieve the intended outcomes.

Texas Constitutional Statutes Affected

Government Code

• Chapter 2306. Texas Department Of Housing And Community Affairs
  • Section: New Section