House Bill No. 3205 proposes the addition of Section 118.027 to the Local Government Code, allowing counties with populations of 500,000 or more to impose a housing first initiatives fee. This fee must be adopted by the county's commissioners court during an open meeting and 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.

The revenue generated from this fee is restricted for use in funding various housing initiatives, which 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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