TITLE 40. SOCIAL SERVICES AND ASSISTANCE

PART 5. TEXAS VETERANS LAND BOARD

CHAPTER 177. VETERANS HOUSING ASSISTANCE PROGRAM [AND VETERANS HOME IMPROVEMENT PROGRAM]

The Texas Veterans Land Board (Board) proposes amendments to Texas Administrative Code, Title 40, Part 5, Chapter 177, §177.3, concerning Administration of Fund, §177.5. Loan Eligibility Requirements, and §177.8. Qualifying Homes.

At its July 28, 2026 Special Called Meeting and based on staff recommendations, the Board voted unanimously to i) discontinue offering loans under its Veterans Home Improvement Loan Program (Program), and relatedly, to ii) to approve these proposed amendments. These proposed amendments remove references to the Program as follows:

The proposed amendments to §177.3 remove a requirement that the Board make funds available for its Veterans Housing Assistance Program to make home improvement loans.

The proposed amendments to §177.5 remove language allowing veterans to obtain a purchase money loan and a home improvement loan under the Veterans Housing Assistance Program.

The proposed amendments to §177.8 remove a subsection allowing veterans to obtain home improvement loans and calling on the Board to adopt guidelines and loan amounts for applicants to the Program

In addition, the title of this chapter is changed to "Veterans Housing Assistance Program" to reflect the rules' revised subject matter.

FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT: Pursuant to Texas Government Code, §2001.024(a)(4), Mr. Raul Gonzales, Director of the Board's Land and Housing Division, has determined that for the first five-year period the proposed amendments are in effect, there will be no fiscal implications for state or local government as a result of the proposed amendments.

PUBLIC BENEFITS AND PROBABLE ECONOMIC COSTS: Pursuant to Texas Government Code, §2001.024(a)(5), Mr. Gonzales has determined that for each year of the first five years the proposed amendments are in effect, there will be no economic effects on businesses or individuals. The public benefit will be the availability additional resources for Board programs to more effectively serve the state's veterans.

TAKINGS IMPACT ASSESSMENT: The amended section does not contemplate or authorize a taking by the Board; therefore, no Takings Impact Assessment is required under Texas Government Code, §2007.043.

LOCAL EMPLOYMENT IMPACT STATEMENT: Mr. Gonzales has determined that the proposed amendments will not affect a local economy, so the Board is not required to prepare a local employment impact statement under Texas Government Code, §2001.022.

FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES: The Board has determined there will be no adverse economic effect on small businesses, micro-businesses, or rural communities due to the proposed amendments, therefore preparation of an economic impact statement and a regulatory flexibility analysis under Texas Government Code, §2006.002, is not required.

GOVERNMENT GROWTH IMPACT STATEMENT: Pursuant to Texas Government Code, §2001.0221, Mr. Gonzales provides the following Government Growth Impact Statement for the proposed amendments. For each of the first five years the proposed amendments will be in effect:

(1) the proposed amendments will eliminate a government program – the Board's Home Improvement Loan Program;

(2) implementation of the proposed amendments will not require the creation or elimination of existing employee positions;

(3) implementation of the proposed amendments will not require an increase or decrease in future legislative appropriations to the Board;

(4) the proposed amendments will not require an increase or decrease in fees paid to the Board;

(5) the proposed amendments do not create a new regulation;

(6) the proposed amendments will not expand, limit, or repeal an existing regulation;

(7) the proposed amendments will not increase or decrease the number of individuals subject to the rules; and

(8) the proposed amendments will not affect the state's economy.

PUBLIC COMMENT REQUEST: Written comment on the proposed amendments may be submitted by mail to Mr. Walter Talley, Texas Register Liaison, Texas General Land Office, P.O. Box 12873, Austin, Texas 78711, facsimile number (512) 463-6311 or email to walter.talley@glo.texas.gov. Written comments must be received no later than thirty (30) days from the date of publication of the proposed amendments in the Texas Register.

The amendments are proposed pursuant to Section 162.003 of the Texas Natural Resources Code, which requires the Board to adopt rules governing the administration of the veterans housing assistance fund and the Veterans' Housing Assistance Program and the creation of Program-related loans. The Code affected by the proposed amendments is Chapter 162 of the Texas Natural Resources Code.

§177.3. Administration of Fund.

(a) (No change.)

(b) After the requirements of subsection (a) of this section have been satisfied, the board, with the assistance of the administrator, shall monitor the cash flow requirements of the program and shall administer the fund to:

(1) meet all bond repayment requirements; and

(2) make money available as needed by the program to make or acquire home loans as provided by the Texas Natural Resources Code, (Code) Chapter 162, and this chapter. [chapter; and]

(c) - (f) (No change.)

§177.5. Loan Eligibility Requirements.

(a) - (b) (No change.)

(c) A veteran may be able to obtain more than one housing assistance loan under this chapter, provided that all previous program loans have been repaid in full and that only one home may be financed by a veteran at any time through the program. [However, for purposes of this chapter, an eligible veteran may obtain both a purchase money loan and a home improvement loan under the program.] An eligible veteran may also receive a loan under the Veterans Land Program.

(d) (No change.)

§177.8. Qualifying Homes.

(a) - (d) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 7, 2026.

TRD-202603329

Jennifer Jones

Chief Clerk & Deputy Land Commissioner

Texas Veterans Land Board

Earliest possible date of adoption: September 20, 2026

For further information, please call: (512) 475-1859