H.B. No. 305 proposes the creation of a Flood Recovery Loan Program under a new Subchapter N in Chapter 418 of the Government Code, aimed at providing low-interest loans to individuals whose properties have suffered damage from flood-related disasters. The bill defines essential terms such as "disaster area" and "eligible property," and specifies that the loans can be utilized for repairs, replacements, and enhancements to improve flood resilience. The program will be managed by a designated division responsible for monitoring loan usage, conducting audits, and engaging in community outreach. Eligibility criteria include proof of property ownership and flood-related damage, with loan terms capped at 30 years and interest rates at 2% for primary residences or businesses. The bill also allows for loan forgiveness under certain conditions, particularly for low-income households or critical infrastructure repairs.

Additionally, the bill mandates the establishment of a publicly accessible dashboard on the Texas Division of Emergency Management's website, which will be updated quarterly to provide information on loan applications, approvals, and demographic distributions. An annual report detailing the financial status of the fund and audit results must be submitted to key state officials by December 1 each year. The program will undergo a sunset review every state fiscal biennium, conducted by the Sunset Advisory Commission, to assess its administration and recommend improvements. The Texas Division of Emergency Management is tasked with implementing the program by March 1, 2026, following the effective date of the Act.

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