H.B. No. 217 proposes the establishment of a Flood Recovery Loan Program under a new Subchapter N in the Government Code, aimed at providing low-interest loans to individuals whose properties have suffered damage from flood-related disasters. The bill introduces key definitions such as "disaster area," "eligible property," and "fund," which clarify the program's scope. It mandates the Texas Division of Emergency Management to administer the program, ensuring that loans are used for specific purposes, including property repairs, debris removal, and enhancing flood resilience. Eligibility criteria require applicants to own eligible property and demonstrate proof of flood-related damage, with loan terms capped at 30 years and interest rates set at 2% for primary residences or businesses.

Additionally, the bill establishes the Flood Recovery Loan Fund as a special fund in the state treasury, with guidelines for its administration, including caps on total loans and loan forgiveness through the fiscal biennium ending August 31, 2027. It also requires the division to create a publicly accessible dashboard for tracking loan applications and outcomes, and to submit an annual report detailing the fund's financial status. A sunset review process is introduced for the program, to be conducted every state fiscal biennium by the Sunset Advisory Commission, which will assess the program's administration and suggest improvements. The Texas Division of Emergency Management is tasked with implementing the program by March 1, 2026, and the bill will take effect immediately upon a two-thirds vote or on the 91st day after the legislative session if that vote is not achieved.

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