SB617

Regular Session

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

ModeratePlan for compliance

Medium Cost

Effective:2025-09-01

Enforcing Agencies

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

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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Legislative Timeline

This bill's path through the Texas Legislature

TopicsCity Government City Government--general Housing Housing--homeless Persons Public Notice Homeless

Official Analysis

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BILL ANALYSIS

Senate Research Center	S.B. 617
89R1184 JG-F	By: Schwertner
	Local Government
	3/14/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

In February of 2021, the Austin City Council announced their plan to purchase a hotel in southern Williamson County where they will relocate homeless individuals from Austin's central business district. The plan was set in motion without notifying Williamson County officials, or detailing how the City of Austin intends to provide necessary support and resources such as healthcare, transportation, mental health services, job training programs, or security.

A regional approach is absolutely necessary to address the growing homelessness problem in central Texas. Without communication between city officials, county officials, and local residents, it is impossible to ensure adequate services and support will be available for at-risk populations.

S.B. 617 ensures that before any city acquires property and relocates homeless individuals into another jurisdiction, it must provide notice and a public hearing.

As proposed, S.B. 617 amends current law relating to hearing and public notice requirements regarding the conversion by a municipality of certain properties to house homeless individuals.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subtitle A, Title 8, Local Government Code, by adding Chapter 255, as follows:

CHAPTER 255. CONVERSION OF PROPERTY FOR CERTAIN PURPOSES

Sec. 255.001. SPECIAL HEARING AND NOTICE REQUIREMENTS FOR CONVERSION OF PROPERTY TO HOUSE HOMELESS INDIVIDUALS. (a) Prohibits a municipality's governing body, except as provided by Subsection (e), from approving the conversion of a property under the municipality's control to provide housing to homeless individuals unless the governing body holds a public hearing not less than 90 days before the municipality begins the conversion. Requires the governing body to hold the hearing at a location within a one-mile radius of the property.

(b) Requires a municipality's governing body, not later than 36 hours before a public hearing required under Subsection (a) is held, to provide notice of the hearing by mail to each residence and business located within a one-mile radius of the property described by that subsection.

(c) Authorizes an individual who is entitled to notice under Subsection (b), if a municipality's governing body fails to comply with this section, to bring an action for injunctive relief in a district court in the county in which the property described by Subsection (a) is located to prevent the conversion of the property.

(d) Provides that, in the event of a conflict between this chapter and a provision in a municipality's charter relating to the conversion or notice of the conversion of a property described by Subsection (a), this chapter controls.

(e) Provides that this section does not apply to the conversion of a property to provide temporary shelter or housing during a natural disaster, declared state of emergency, or other life-threatening public emergency.

SECTION 2. Makes application of Chapter 255, Local Government Code, as added by this Act, prospective.

SECTION 3. Effective date: upon passage or September 1, 2025.

Senate Authors

Sen. Charles SchwertnerRepublican · Primary Author

House Sponsors

Rep. Caroline Harris DavilaRepublican · Primary Sponsor

Cosponsors (1)

Joanne Shofner (R)

Bill Text(with markup)

S.B. No. 617

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to hearing and public notice requirements regarding the
	conversion by a municipality of certain properties to house
	homeless individuals.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subtitle A, Title 8, Local Government Code, is
	amended by adding Chapter 255 to read as follows:
	CHAPTER 255. CONVERSION OF PROPERTY FOR CERTAIN PURPOSES
	Sec. 255.001. SPECIAL HEARING AND NOTICE REQUIREMENTS FOR
	CONVERSION OF PROPERTY TO HOUSE HOMELESS INDIVIDUALS. (a) Except
	as provided by Subsection (e), a municipality's governing body may
	not approve the conversion of a property under the municipality's
	control to provide housing to homeless individuals unless the
	governing body holds a public hearing not less than 90 days before
	the municipality begins the conversion. The governing body must
	hold the hearing at a location within a one-mile radius of the
	property.
	(b) Not later than 36 hours before a public hearing required
	under Subsection (a) is held, a municipality's governing body must
	provide notice of the hearing by mail to each residence and business
	located within a one-mile radius of the property described by that
	subsection.
	(c) If a municipality's governing body fails to comply with
	this section, an individual who is entitled to notice under
	Subsection (b) may bring an action for injunctive relief in a
	district court in the county in which the property described by
	Subsection (a) is located to prevent the conversion of the
	property.
	(d) In the event of a conflict between this chapter and a
	provision in a municipality's charter relating to the conversion or
	notice of the conversion of a property described by Subsection (a),
	this chapter controls.
	(e) This section does not apply to the conversion of a
	property to provide temporary shelter or housing during a natural
	disaster, declared state of emergency, or other life-threatening
	public emergency.
	SECTION 2. Chapter 255, Local Government Code, as added by
	this Act, applies only to the conversion of property described by
	Section 255.001(a), Local Government Code, as added by this Act,
	that is set to begin on or after the effective date of this Act.
	SECTION 3. This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 15, 2025

TO:	Honorable Paul Bettencourt, Chair, Senate Committee on Local Government

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB617 by Schwertner (Relating to hearing and public notice requirements regarding the conversion by a municipality of certain properties to house homeless individuals.), As Introduced

No fiscal implication to the State is anticipated.

Local Government Impact

There could be an impact to municipalities attempting to convert certain properties to house homeless individuals relating to holding a public hearing and providing public notice, as would be required by the bill.

Source Agencies:

LBB Staff:

JMc, SZ, BC, CWi, CMA

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Frequently Asked Questions

Common questions about SB617

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. Implementation Timeline Effective Date: September 1, 2025.

Who authored SB617?

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

When was SB617 signed into law?

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

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).

How urgent is compliance with SB617?

The compliance urgency for SB617 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

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.

What topics does SB617 address?

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

Legislative data provided by LegiScanLast updated: November 25, 2025

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