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Presentation, discussion, and possible action on the 2026-2027 Ending Homelessness Fund Biennial Plan.
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RECOMMENDED ACTION
recommendation
WHEREAS, the 85th Texas Legislature enacted House Bill 4102, amending Subchapter H, Chapter 502, Texas Transportation Code, to add §502.415 establishing the Ending Homelessness Fund (EH Fund) to allow registrants of motor vehicles in Texas to voluntarily contribute to the EH Fund at the time of registration;
WHEREAS, the EH Fund statute requires that the funds collected be used to provide grants to counties and municipalities to combat homelessness, and directs that the Department serve as trustee to administer these funds;
WHEREAS, pursuant to Texas Transportation Code §502.415(g), the Department adopted rules at 10 Texas Administrative Code (TAC) Chapter 7, Subchapter D, which require publication of a biennial plan outlining the Department’s intended use of EH Fund resource;
WHEREAS, the 2026-2027 EH Fund Biennial Plan (the Plan) details the Department’s program design, eligible activities, funding priorities, and administrative framework for the biennium, and reflects the Department’s continued commitment to transparency and the effective use of these funds to combat homelessness across Texas;
WHEREAS, in accordance with 10 TAC §7.61(b), the Department will prioritize applications proposing to utilize EH Fund resources for operating costs associated with HOME-American Rescue Plan (ARP) funded non-congregate emergency shelters, and may also make funds available to existing Emergency Solutions Grant (ESG) or Homeless Housing and Services Program (HHSP) Subrecipients that have demonstrated capacity to administer state or federal homelessness programs; and
WHEREAS, staff recommends that the 2026-2027 EH Fund Biennial Plan be approved to initiate program implementation and establish the biennial planning framework required under rule;
NOW, therefore, it is hereby
RESOLVED, that the proposed 2026-2027 Ending Homelessness Fund Biennial Plan, as presented, is approved and staff is authorized to publish the EH Fund Biennial Plan and take any other necessary actions to effectuate the foregoing; and
FURTHER RESOLVED, that the Executive Director and his designees be authorized and directed, for and on behalf of the Department, to draft and release Notices of Funding Availability based on programming as outlined in the EH Fund Plan and EH Fund Rules.
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BACKGROUND
The 85th Texas Legislature established the Ending Homelessness Fund (EH Fund) through the passage of House Bill 4102, effective September 1, 2017. The bill amended Subchapter H, Chapter 502, Texas Transportation Code, to create §502.415, Voluntary Contribution to End Homelessness Fund, authorizing registrants of motor vehicles in Texas to voluntarily contribute to the EH Fund at the time of vehicle registration.
Funds collected by county assessor-collectors are remitted to the Texas Comptroller of Public Accounts and held in trust outside of the state treasury. The Department administers the EH Fund as trustee and awards grants to counties and municipalities to combat homelessness.
The Department subsequently adopted administrative rules at 10 Texas Administrative Code (TAC) Chapter 7, Subchapter D, Ending Homelessness Fund, which govern the administration of the EH Fund and require the publication of a biennial plan describing the Department’s intended use of EH Fund resources.
The 2026-2027 EH Fund Biennial Plan represents the Department’s first biennial plan for this program. The Plan establishes the program’s framework, identifies funding priorities and eligible activities, and outlines the process by which funds will be made available to eligible entities.
As of August 31, 2025, the Department has received $310,292 in available EH Fund resources for use during the 2026-2027 biennium. Additional funds collected during FY2026 will be utilized during the biennium; funds collected during FY2027 will be programmed in the 2028-2029 plan. The Department will not retain any portion for administrative costs; all available funds will be directed toward program activities.
In accordance with 10 TAC §7.61(b), the Department will prioritize applications proposing to utilize EH Fund resources for operating costs associated with HOME American Rescue Plan (ARP) funded non-congregate emergency shelters. This prioritization leverages existing federal investments in non-congregate shelter infrastructure to ensure that these facilities remain viable, safe, and fully operational for individuals and families experiencing homelessness. Because HOME ARP awards were primarily focused on capital development, ongoing operating costs such as staffing, utilities, and maintenance are not covered by the federal allocation. EH Fund resources can therefore fill a critical gap in sustaining shelter capacity and ensuring that these newly developed units continue to provide immediate housing solutions.
Further, aligning the EH Fund with HOME ARP funded non-congregate shelters promotes coordination among state and local partners, supports federal guidance encouraging sustainability of HOME ARP investments, and helps avoid duplication of funding across homelessness assistance programs. This targeted use of funds maximizes impact, strengthens program continuity, and supports local systems of care in maintaining shelter capacity established through one time federal resources.
If funds remain after all priority projects are funded (or if insufficient funding remains to make a partial award in staff’s sole determination), Staff is recommending the Department make funds available to existing Emergency Solutions Grant (ESG) or Homeless Housing and Services Program (HHSP) Subrecipients that have demonstrated capacity to administer homelessness programs. Staff may ask eligible entities to apply based on available funding.
Upon Board approval, Department staff will draft and release a Notice of Funding Availability (NOFA) for the priority projects consistent with the programming and funding priorities outlined in the plan. The 2026-2027 EH Fund Biennial Plan is attached.