H.B. No. 217 proposes the establishment 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 been affected by flood-related disasters. The bill introduces key definitions such as "disaster area," "eligible property," and "fund" to facilitate program administration. Loans can be utilized for repairing or replacing damaged property, enhancing flood resilience, and acquiring essential equipment, with eligibility criteria requiring proof of ownership and damage. Notably, loans are capped at 200% of the repair costs, and provisions for loan forgiveness are included, allowing up to 25% of the principal to be forgiven for low-income applicants or those addressing critical infrastructure.

The bill also mandates the creation of a publicly accessible dashboard, updated quarterly, to provide transparency regarding loan applications, approvals, disbursements, and demographic distributions. An annual report is required to detail the financial status of the fund and audit findings. Additionally, a sunset review process is established, requiring the Sunset Advisory Commission to evaluate the program every state fiscal biennium. The Texas Division of Emergency Management is responsible for implementing the program and must establish it by March 1, 2026. The bill will take effect immediately with a two-thirds vote from both houses or 91 days after the legislative session if not passed.

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