The bill, H.B. No. 3205, proposes the establishment of a county housing first initiatives fee in counties with populations of 500,000 or more. It allows the commissioners court of such counties to adopt this fee during an open meeting and requires it to be included in the county's annual budget. The fee is to be paid at the time a person pays certain other fees and will be deposited into a dedicated housing first initiatives account within the county's general fund, with any accrued interest remaining in that account.

Revenue generated from this fee is specifically earmarked for funding various housing initiatives aimed at addressing homelessness and related issues. These initiatives include emergency shelter expansion, homelessness prevention services, street outreach programs, rapid rehousing programs, and transitional housing programs. Additionally, the county is permitted to contract with private entities, nonprofit organizations, or political subdivisions to implement these initiatives. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses of the legislature or on September 1, 2025, if such a vote is not achieved.

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