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So if my mother sold her home this year, will the proceeds from the sale be taken into consideration next year when she applies for medicaid?

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Absolutely. 5 years look-back is in place in Texas.  If there is money from the sale and it can be tracked through state databases - it will show and Medicaid will want to know what the money was used for. Gifting will incur a penalty. And Texas will find it - our state did not accept expanded Medicaid so lists are long and often require waiting for services.
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If proceeds from the sale are quite a lot, she may want to consider doing a Medicaid compliant special needs Trust after she does whatever legit spend down for her needs. Like she does a fully paid preneed funeral & burial policy; get dental work done, new eyeglasses and hearing aids and a better quality walker / wheelchair all of which are not covered by Medicaid or covered at the most minimal.

She cannot gift or pay any reimbursement to you as Medicaid will look upon the $ as gifting by her to you and it causes a transfer penalty onto her Medicaid application.

House that sells for 50k different problem than house sold for 450k.
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