Is it a crime to run an unlicensed care home in Texas?

Yes. House Bill 2510, passed by the 89th Texas Legislature and effective September 1, 2025, added Health and Safety Code Section 247.0441, which makes it a Class A misdemeanor to operate an assisted living facility without a license, and a third-degree felony if the person has a prior conviction under that same section. A separate offense, Section 142.00605, makes it a Class A misdemeanor for a person required to hold a home and community support services agency license to provide personal assistance services to a resident of an assisted living facility without one. Under Section 247.002, an assisted living facility is an establishment that furnishes food and shelter to four or more people unrelated to the proprietor AND either provides personal care services OR administers medication. Note the OR. Handing out medication alone, with no hands-on care at all, triggers the license. This is general information, not legal advice.

Written by Erika Crossley, senior living operator — not an attorney · Information last verified July 2026

This is general information, not legal advice. Erika Crossley is not an attorney. Texas law here turns on your specific property, your recorded deed restrictions, your city, and your individual residents — and municipal ordinances change without notice. Every document she prepares is a first draft for review and signature by your own licensed Texas attorney before it is used with a resident. No outcome, including license approval or permit approval, is guaranteed. Do not buy a property in reliance on this page. Take it to a Texas attorney first.

What changed on September 1, 2025

Before HB 2510, operating without a license was primarily an administrative and civil matter. The bill added Health and Safety Code Section 247.0441, which makes unlicensed operation of an assisted living facility a Class A misdemeanor, and a third-degree felony if the person has a prior conviction. It also added Section 142.00605, applying the same penalties to anyone providing personal assistance services to a resident of an assisted living facility without the required agency license.

The bill analysis states plainly why it passed: individuals had been operating residential facilities providing personal care services without proper licensing.

Where the line actually is, and the word that catches people

Section 247.002 defines an assisted living facility as an establishment that furnishes food and shelter to four or more persons unrelated to the proprietor, AND provides either personal care services OR administration of medication.

Read that again. It is an OR. You do not have to bathe anyone. A home that furnishes food and shelter to four or more unrelated residents and simply administers their medication is an assisted living facility and needs a license. People assume the line is hands-on care. It is not.

And personal care services itself is defined broadly: assistance with feeding, dressing, moving, bathing, or other personal needs or maintenance, OR general supervision or oversight of the physical and mental well-being of a person who needs assistance. That second prong catches a great deal of what an ordinary house manager does without thinking about it.

The staying-under-four loophole does not exist

Health and Safety Code Chapter 142 says a person may not engage in the business of providing personal assistance services for pay without a home and community support services agency license. Three residents and one bath assist is still unlicensed care for pay.

The old four-bed Type C license, which people still talk about as the easy middle step, is closed. HHSC no longer issues new Type C licenses. There is no rung between three residents and a full Type A or Type B license.

This is being enforced right now

On November 5, 2025, in Atascocita in unincorporated Harris County, authorities raided what was reported as an illegal medical boarding home, removed three residents aged 66 to 97, and arrested the owner for operating a personal care facility without a license. A Fort Bend County operator was arrested in February 2024 after nine residents were found without proper care.

This is not a theoretical risk being used to sell a service. It is an arrest record.

Where to register to get paid

The official Texas and federal sign-up pages — verified June 2026. You don’t have to hunt for them.

HB 2510 bill analysis, 89th Texas Legislature →
The criminal penalties, in the Legislature’s own words.

These are the official portals. Approval and contracting still take real paperwork — that’s the part we help you through.

Get on the right side of the line — talk to Erika →

Common questions

What is the penalty for operating an unlicensed assisted living facility in Texas?

Under House Bill 2510, effective September 1, 2025, it is a Class A misdemeanor punishable by up to one year in jail, and a third-degree felony on a second conviction.

How many residents can I have in Texas before I need an assisted living license?

Three. Texas Health and Safety Code Section 247.002 defines an assisted living facility as an establishment furnishing food and shelter to four or more persons unrelated to the proprietor and providing either personal care services OR administration of medication. The fourth resident triggers the license, and administering medication alone is enough on the second element. This is general information, not legal advice.

Is the Texas four-bed Type C license still available?

No. HHSC no longer issues new Type C licenses. Existing holders may renew. There is no longer a middle step between three residents and a full Type A or Type B assisted living license.

Can I provide personal care to three residents without a license in Texas?

No. Health and Safety Code Chapter 142 requires a home and community support services agency license to engage in the business of providing personal assistance services for pay, regardless of the number of residents.

Related license types

Adult Foster Care →Boarding Home →Type A ALF →