House Bill No. 78 proposes the establishment of the Housing Texas Fund, which will be administered by the Texas Department of Housing and Community Affairs. The bill introduces a new section, 2306.208, to the Government Code, defining the fund as a special fund within the state treasury. The fund will consist of various sources of revenue, including appropriated money, transfers from available sources, investment returns, and donations. The bill outlines specific allocations for the fund, with 90% designated for grants to nonprofit developers of multifamily affordable housing, 9% for grants to nonprofit entities focused on stable housing placements for recently homeless individuals and families, and 1% for one-time grants aimed at preventing homelessness or facilitating transitions into stable housing.

Additionally, the bill mandates that the Texas Department of Housing and Community Affairs prioritize grant allocations to nonprofit entities that serve families with children or dependents with disabilities, individuals recently released from incarceration, and adults experiencing homelessness without children. The department is also tasked with establishing rules for the use of the fund's assets, ensuring compliance with the outlined limitations. The act is set to take effect 91 days after the conclusion of the legislative session.

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