Licensing law
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, makes it a Class A misdemeanor to operate an assisted living facility without a license, punishable by up to a year in jail, and a third-degree felony on a second conviction. The same bill makes it a Class A misdemeanor to provide personal assistance services to a resident of an assisted living facility without a home and community support services agency license. In Texas, an assisted living facility means an establishment that furnishes food and shelter to four or more people unrelated to the proprietor and provides personal care services. The fourth resident is the line, and since September 2025 it is a criminal one.
Reviewed by Erika Crossley, AI Infrastructure Architect for Senior Living · Information last verified July 2026
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
Texas Health and Safety Code 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 personal care services or administers medication. Both elements have to be present.
Personal care services means assistance with feeding, dressing, moving, bathing, or other personal needs, or general supervision or oversight of a person’s physical or mental well-being. That is a wide definition, and staff cross it by instinct because it is the kind thing to do.
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.
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 while providing personal care services. The fourth resident triggers the license.
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
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