Type B Assisted Living Facility
Memory care & higher-acuity seniors — 24/7 awake staff required
Time to open
4–6 months
Gov't fees (total)
$762
State license
Required
Max residents
16
Who this serves
Elderly adults who need nighttime staff assistance, cannot self-evacuate, or have dementia/Alzheimer's
Best fit: Someone targeting the memory care market — higher rates, larger demand, more operational complexity
Actual Costs
Government fees are exact. Variable costs are estimates — tips show how to minimize them.
Government Fees — You Will Pay These
HHSC Type B License (8-bed facility)
$300 base + $15 × 8 beds (26 TAC §553.47). Alzheimer's certification: additional $300/cycle (26 TAC §553.47(c)).
$420
per 3 years
HHSC Type B License (16-bed facility)
$300 base + $15 × 16 beds (max $2,250)
$540
per 3 years
Texas LLC Formation (SOS filing)
$300
one time
DPS Background Check
Required for owner and all direct care staff ($11.50 IdentoGO + $15.00 DPS + $13.25 FBI = $39.75)
$39.75
per person
HHSC Life Safety Code Inspection
No state inspection fee
$0
one time
HHSC Health Survey Inspection
No state inspection fee
$0
one time
Local building permit (for renovations)
Only if making structural changes
$75–500
one time
Guaranteed minimum (gov't fees)
$762
Costs That Depend on Your Property & Choices
Sprinkler system (must cover all areas + closets)
$10,000–$22,000/one time
💡 More extensive than Type A — must cover closets and all habitable areas. Get 3 contractor quotes.
Fire alarm system
$2,500–$6,000/one time
💡 Licensed fire alarm contractor required
General liability + E&O insurance (memory care)
$4,800–$9,600/annual
💡 Memory care premiums are higher — Markel and Philadelphia Insurance specialize in this
Awake night staff labor
$24,000–$42,000/annual
💡 This is your largest ongoing cost — must be awake, not on-call. Budget for 2 shifts minimum.
Bedroom & common area furnishings
$10,000–$25,000/one time
💡 Larger bedrooms (100 sq ft) = more furnishing cost
Physical & Building Requirements
Stories allowed
Any with proper egress
Sq ft / resident (single room)
100 sq ft min
Sq ft / resident (shared room)
80 sq ft min
Bedroom min width
10 ft
Bathroom ratio
1 toilet + 1 sink per 6 residents; 1 tub or shower per 10 residents
Sprinklers
NFPA 13, 13D, or 13R — must cover ALL habitable areas AND closets
- •Single bedroom: 100 sq ft minimum (larger than Type A)
- •Shared bedrooms: 80 sq ft per resident (larger than Type A)
- •Minimum bedroom width: 10 feet (vs 8 for Type A)
- •Night staff MUST BE AWAKE — not on-call, not sleeping nearby
- •Sprinklers must cover ALL rooms AND closets — more stringent than Type A
- •Basements cannot be used for resident bedrooms or living space
Can I Use My Home?
✅
1-Story Home
✅
2-Story Home
3,000
sq ft minimum
4+
bedrooms
- →1-story preferred — simpler egress, easier overnight supervision
- →2-story: requires full fire alarm + evacuation plans + more complex overnight staffing
- →Needs more sq footage per resident than Type A (100 vs 80 sq ft)
- →Memory care staff require 12 extra hours Alzheimer's training annually
Why operators choose this
- +Can serve memory care / dementia residents — the fastest-growing care segment in Texas
- +Higher revenue: up to $7,500/resident/month vs $5,500 for Type A
- +Alzheimer's certification included at no extra licensing cost
- +Same licensing timeline as Type A — no extra bureaucracy
Know before you start
- –Awake night staff 24/7 is a significant ongoing labor cost
- –More stringent sprinkler and bedroom sq footage requirements
- –Higher insurance premiums for memory care
- –Largest ongoing cost is labor, not facility — plan staffing budget carefully
⚠️ Key Restrictions — Know These Before You Start
- !Night staff MUST BE AWAKE at all times — cannot be sleeping on-call
- !Cannot serve bedfast residents requiring daily nursing care
- !Larger minimum bedroom size than Type A (100 vs 80 sq ft)
- !Sprinklers must cover ALL areas including closets
- !Dementia specialization requires 12 annual staff training hours on Alzheimer's
Apply Directly
Every link goes to the exact page — no searching.
- ↗HHSC — How to Become a Type B ALF Provider
- ↗HHSC ALF License Application (online portal)
- ↗TAC Chapter 553 — Texas ALF Regulations (full text)
- ↗Texas SOS — File Your LLC Online
- ↗DPS Background Check (IdentoGO Texas)
- ↗HHSC Life Safety Code Checklist — Type B (PDF)
Always verify at hhs.texas.gov — regulations change.
Revenue Potential
License
⚠️ State License Required
HHSC Type B License: $300 base + $15 per bed (26 TAC §553.47), 3-year cycle. Alzheimer's certification: additional $300 per cycle (26 TAC §553.47(c)).
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