State and local homeless housing and affordable housing programs are partially supported through a $183 surcharge on certain documents recorded by county auditors.? The surcharge revenue is distributed as follows:

• 1 percent is retained by the county auditor for fee collection activities;
• 30 percent is retained by the county to be used to implement its local homeless housing plan and for other eligible housing activities;
• 54.1 percent is deposited in the Home Security Fund Account to be used by the Department of Commerce (Commerce) for grants to support homeless housing programs;
• 13.1 percent is deposited in the Affordable Housing for All Account to be used by Commerce for grants to support housing projects within the Housing Trust Fund portfolio and permanent supportive housing programs; and
• 1.8 percent is deposited in the Landlord Mitigation Program Account to be used by Commerce for the Landlord Mitigation Program.

The Tenant Assistance Program (TAP) is created as a grant program administered by Commerce.? Under the TAP, Commerce provides grants to housing authorities for the purpose of providing tenant assistance payments.

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To be eligible for the TAP, tenants must:

• have a household income that does not exceed 80% of the median household income, adjusted for family size;
• pay more than 30 percent of their income on housing;
• be able to reduce their housing costs below 30 percent of income with a $400 monthly payment; and
• recertify their income on a monthly basis.

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Housing authorities must prioritize tenants who receive Supplemental Security Income or have a household income that does not exceed 60% of median.

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Monthly tenant assistance payments may not exceed the lesser of $400 or the amount necessary to reduce the tenant's monthly housing cost to no more than 30% of household income.? An eligible renter may receive tenant assistance payments for up to 12 consecutive months.? Only one eligible renter per household may receive tenant assistance payments.

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The TAP is funded with 20 percent of the existing $183 document recording surcharge by redirecting 15 percent of revenue from the Home Security Fund Account and 5 percent of revenue from the Affordable Housing for All Account.

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Beginning July 30, 2026, Commerce must submit annual reports to the Legislature on the TAP, including the total number of renter households served, the total dollar amount of rental assistance distributed to tenants, the average number of months that a tenant received tenant assistance payments, and any recommendations for changes to the program.? Commerce must also post a copy of the report on its website.

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The Joint Legislative Audit and Review Committee (JLARC) must review the efficacy of the TAP and its impacts on housing stability.? By December 31, 2031, JLARC must report its findings to the Legislature with a recommendation on whether the TAP should be continued, amended, or repealed.? The TAP expires on June 30, 2032.