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HB 305

Relating to the creation of a flood recovery loan program to provide low-interest loans to persons who are victims of flood-related disasters.

89th Legislature, 1st Called Session (2025) Introduced by Wes Virdell

HB 305 establishes a Texas state loan program offering below-market interest rates to flood disaster victims for recovery and rebuilding expenses.

Filed
#disasterpreparedness&relief(i0211) #emergencymanagement #texasdivisionof(vp6fw) #floods(s0327) #financial--general(i0365) #legislativebudgetboard(v0161) #loans(s0117) #publicnotice(s0264) #propertyinterests--personalproperty(i0600) #propertyinterests--realproperty(i0595) #sunsetadvisorycommission(v8389) #statefinances--management&control(i0748) #waterdamage(s0538)
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Bill Summary · HB 305

Legislative bill overview

HB 305 creates a state-backed flood recovery loan program in Texas that would provide low-interest loans to individuals and potentially businesses affected by flood disasters. The program aims to help flood victims rebuild and recover without relying solely on federal disaster assistance or high-interest private lending.

Why is this important

Texas experiences recurring flooding that causes billions in damages and displaces families. This program could provide faster, more accessible financial relief than traditional disaster recovery channels, particularly for lower-income residents who lack savings or good credit access. However, the program's structure, funding source, and repayment terms will determine whether it truly helps vulnerable populations or creates new debt burdens.

Potential points of contention

  • Funding mechanism: Where will the program's capital come from? State general revenue, bonds, or dedicated sources? This affects overall state budget priorities.
  • Interest rates and terms: What qualifies as "low-interest" and who determines eligibility? Unclear standards could lead to inconsistent access or loans that still burden struggling families.
  • Scope of covered disasters: Does this apply only to federally-declared disasters, or all flooding? This affects program cost and predictability.
  • Loan defaults and risk: Who bears the financial risk if borrowers cannot repay due to ongoing hardship? Taxpayers or the program itself?

Compiled from official sources — confirm details with the bill’s official record.

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