(a) The purpose of a community residential facility is to provide housing, supervision, counseling, personal, social, and work adjustment training, and other programs to:
(1) releasees who are required by a parole panel as a condition of release on parole or to mandatory supervision to serve a period in a community residential facility; and
(2) releasees whose parole or mandatory supervision has been continued or modified under § 508.283 and on whom sanctions have been imposed under that section.
(b) The division may establish and operate, or contract for the operation of, community residential facilities.

(c) The division may contract with a public or private vendor for the financing, construction, operation, or management of a community residential facility using a lease-purchase or installment sale contract to provide or supplement housing, board, or supervision for releasees placed in a community residential facility. A releasee housed or supervised in a facility operated by a vendor under a contract is subject to the same laws as if the housing or supervision were provided directly by the division.
(d) Unless the division or a vendor proposing to operate a community residential facility provides notice of a following proposed action and a hearing on the issues in the same manner as required under § 509.010, the division may not:
(1) establish or contract for a community residential facility;
(2) change the use of a community residential facility;
(3) significantly increase the capacity of a community residential facility; or
(4) increase the capacity of a community residential facility to more than 500 residents, regardless of whether the increase is significant.
(e) Subsection (d) applies to any residential facility that the division establishes or contracts for under:
(1) this chapter;
(2) Subchapter C, Chapter 497; or
(3) Subchapter A, Chapter 499.
(f) The Texas Board of Criminal Justice shall adopt rules necessary for the management of a community residential facility.
(g) The division may charge to a releasee housed in a community residential facility a reasonable fee for the cost of housing, board, and the part of the administrative costs of the facility that is properly allocable to the releasee. The fee may not exceed the actual costs to the division for services to that releasee. The division may not deny placement in a community residential facility to a releasee because the releasee is unable to pay the fee.
(h) A parole panel or a designated agent of the division may grant a limited release to a releasee placed in a community residential facility to maintain or seek employment or participation in an education or training course or to seek housing after release from the facility.
(i) The notice required by Subsection (d) must clearly state that the proposed action concerns a facility in which persons who have been released from prison on parole or to mandatory supervision are to be housed.