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Signed Into Law
Signed May 27, 2025Effective 2025-09-01
SB617

Regular Session

Relating to hearing and public notice requirements regarding the conversion by a municipality of certain properties to house homeless individuals.

Government Affairs & Regulatory Compliance Analysis

SB617: Government Affairs Overview

SB 617 establishes a statutory "kill switch" for municipal homeless housing projects by granting neighboring businesses and residents a private right of action to seek injunctive relief. Effective September 1, 2025, municipalities must adhere to strict notification protocols within a one-mile radius; failure to do so allows any stakeholder in that zone to halt the project via court order, creating significant delay risks for developers and contractors.

Sen. Charles Schwertner·Senate Bill·Regular Session

Moderate
Medium Cost
Effective:2025-09-01

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SB617
Moderate
Relating to hearing and public notice requirements regarding the conversion by a municipality of certain properties to house homeless individuals.
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Medium
Effective
2025-09-01
Enforcing Agencies
Texas District Courts
Primary Author: Sen. Charles Schwertner
89th Texas Legislature
jdkey.com
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Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025.
  • Compliance Deadline: June 3, 2025. (Operational Logic: Because the hearing must occur 90 days prior to conversion, projects scheduled to begin on the September 1 effective date must have held their hearing by early June).
  • Agency Rulemaking: None. This statute is self-executing and enforced via the judicial system (District Courts), meaning case law—not agency rules—will define ambiguous terms.

Immediate Action Plan

  • 1. Audit Project Pipeline: Review all municipal housing contracts with start dates in Q3/Q4 2025. Determine if they fall under the "conversion" definition.
  • 2. Update Legal Templates: Insert specific indemnity and delay clauses regarding SB 617 into all public sector development agreements immediately.
  • 3. Establish Verification Protocol: Mandate that project managers obtain proof of the public hearing (held 90 days prior) before signing any Notice to Proceed.
  • 4. Monitor Local Notices: For general business owners, instruct legal/admin teams to scan for notices regarding properties within one mile of your facilities to preserve your right to object.

Operational Changes Required

Contracts

For Developers/Contractors:

  • Master Service Agreements (MSAs): You must amend Force Majeure and Delay clauses. Explicitly classify a "court-ordered injunction resulting from Municipal non-compliance with SB 617" as a compensable delay, not a generic Force Majeure event.
  • Indemnification: Require the Municipality to indemnify your firm for demobilization costs and legal fees if a project is halted due to the city's failure to provide proper notice.
  • Conditions Precedent: Contract effectiveness must be contingent upon the city providing a certified Affidavit of Mailing proving compliance with the one-mile notice requirement.

Hiring/Training

For Neighboring Businesses:

  • Mailroom Protocol: Administrative staff must be trained to flag municipal notices immediately. The law requires notice only 36 hours prior to the hearing. Delays in internal mail routing will result in missed opportunities to contest projects.

For Developers:

  • Project Management: PMs must be trained to verify the "90-day quiet period" before mobilizing crews.

Reporting & Record-Keeping

  • GIS Mapping: Developers must generate their own GIS map of the one-mile radius around a project site to audit the municipality's notification list.
  • Affidavit of Mailing: Obtain and archive a certified copy of the municipality’s mailing list and proof of postage as a permanent project record.

Fees & Costs

  • Legal Reserves: Developers should increase legal contingency budgets for projects involving housing conversions to cover potential injunction hearings.
  • Insurance: Review Builder’s Risk and Delay in Start-Up (DSU) policies to confirm coverage for stoppages caused by third-party litigation regarding procedural non-compliance.

Strategic Ambiguities & Considerations

  • Definition of "Conversion": The statute does not define the specific legal or physical act that constitutes a "conversion." It is unclear if this triggers upon rezoning, certificate of occupancy issuance, or physical retrofitting. Guidance: Assume the earliest possible trigger (physical alteration) for compliance purposes.
  • "Begins": The law applies to conversions that "begin" on or after Sept 1, 2025. It is unclear if "begin" refers to contract execution or groundbreaking. Guidance: Ensure physical work commences prior to Sept 1 to argue for grandfathered status.
  • Definition of "Homeless": The lack of a statutory definition for "homeless individuals" creates a litigation vector. Plaintiffs may argue that various supportive housing models fall under this statute, regardless of the specific demographic served.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Dec 13, 2024
Passed Senate
Apr 2, 2025
Passed House
May 14, 2025
Signed
May 27, 2025
Effective
Sep 1, 2025
TopicsCity GovernmentCity Government--generalHousingHousing--homeless PersonsPublic NoticeHomeless
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Senate Authors

Sen. Charles SchwertnerRepublican · Primary Author

House Sponsors

Rep. Caroline Harris DavilaRepublican · Primary Sponsor
Cosponsors (1)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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Quick Reference

Frequently Asked Questions

Common questions about SB617

Q

What does Texas SB617 do?

SB 617 establishes a statutory "kill switch" for municipal homeless housing projects by granting neighboring businesses and residents a private right of action to seek injunctive relief. Effective September 1, 2025, municipalities must adhere to strict notification protocols within a one-mile radius; failure to do so allows any stakeholder in that zone to halt the project via court order, creating significant delay risks for developers and contractors.

Q

Who authored SB617?

SB617 was authored by Texas Senator Charles Schwertner during the Regular Session.

Q

When was SB617 signed into law?

SB617 was signed into law by Governor Greg Abbott on May 27, 2025.

Q

Which agencies enforce SB617?

SB617 is enforced by Texas District Courts (via private right of action granted to businesses and residents within one-mile radius).

Q

How significant are the changes in SB617?

The regulatory priority for SB617 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB617?

The cost impact of SB617 is estimated as "medium". This may vary based on industry and implementation requirements.

Q

What topics does SB617 address?

SB617 addresses topics including city government, city government--general, housing, housing--homeless persons and public notice.

Q

What are the key dates for SB617?

Key dates for SB617: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

What are the penalties under SB617?

SB617 establishes the following penalties: civil penalty of Injunctive Relief (Court Order halting the project) for Failure by municipality to provide required mailed notice or hold public hearing within the statutory timeframe.. Consult with legal counsel for specific applicability to your situation.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026