Do I need a license to open a care home in Texas?

The 3-resident line

This is the rule almost nobody explains clearly. A home caring for 1–3 adults is Adult Foster Care: you enroll with HHSC, but there is no facility license and no commercial build-out. You must live in the home and share common areas with your residents.

Add a 4th resident and you cross into licensed assisted living. Because Texas retired the old Type C license, a new operator at 4+ residents needs a Type A or Type B ALF license.

Boarding homes: no license, no cap — but no personal care

There is a separate path: a boarding home provides lodging and light services (meals, housekeeping, help with self-administered medication) to any number of residents, with no state license and no resident cap. The catch is that the moment you provide hands-on personal care, you are an assisted living facility and need the license. Some cities, including Houston, require a local boarding-home permit.