BILL ANALYSIS
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Senate Research Center |
H.B. 4582 |
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89R23639 DRS-F |
By: Bell, Keith et al. (Paxton) |
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Local Government |
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5/25/2025 |
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Engrossed |
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
The bill author has informed the committee that there is a need for more attainable housing in Texas and that the median home price for a single-family home in November 2024 was approximately six times the median household income in Dallas County in 2022. The bill author has also informed the committee that an impediment to homeownership for middle-income buyers is the lack of new housing units. H.B. 4582 seeks to incentivize further development of housing units for such buyers by making a developer eligible for reimbursement for a cost incurred to build infrastructure related to an attainable housing development under certain conditions.
H.B. 4582 amends current law relating to reimbursement of infrastructure costs incurred by a developer of certain housing developments by certain municipalities and counties.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subtitle C, Title 12, Local Government Code, by adding Chapter 396, as follows:
CHAPTER 396. ATTAINABLE HOUSING DEVELOPMENT INFRASTRUCTURE FOR CERTAIN MUNICIPALITIES AND COUNTIES
Sec. 396.001. DEFINITIONS. Defines "attainable housing development," "infrastructure," and "single-family offsite residence."
Sec. 396.002. APPLICABILITY OF CHAPTER. Provides that this chapter applies only to:
(1) a county with a population greater than 2.5 million but less than 4 million;
(2) a county with a population greater than 190,000 that is adjacent to a county described by Subdivision (1); and
(3) a municipality wholly or partly located in a county described by Subdivision (1) or (2).
Sec. 396.003. ELIGIBILITY FOR INFRASTRUCTURE COST REIMBURSEMENT. (a) Provides that a developer is eligible for reimbursement under this chapter for a cost incurred to build infrastructure related to an attainable housing development if:
(1) the developer directly or indirectly incurred the cost of building or financing the construction, maintenance, or renovation of the infrastructure or connection of the infrastructure to the development;
(2) a municipality or county would have built or financed the infrastructure had the infrastructure not been built by the developer;
(3) at least 80 percent of the lots in the development accommodate a single-family offsite residence that is at least 1,000 square feet and not more than 2,500 square feet in area;
(4) the development is connected to a public water system and a sewer system as defined by Section 26.001 (Definitions), Water Code;
(5) the development is governed by a property owners' association agreement or land lease agreement that includes restrictive covenants relating to the maintenance of the common areas and grounds of the development and enforcement of community regulations;
(6) the developer offers units in the development to veterans or active duty members of the military, first responders, or employees of a school district; and
(7) the developer complies with Federal Housing Administration tenant site lease protections required by a municipality in which the development is wholly or partly located and a county in which the development is located if the development is wholly or partly located in the unincorporated area of the county.
(b) Provides that costs that are authorized to be reimbursed under this chapter include financing costs; installation, maintenance, or renovation costs, including supplies and labor; and costs to connect to existing infrastructure.
Sec. 396.004. NOTICE OF REIMBURSEMENT. (a) Authorizes a developer eligible under Section 396.003 to request reimbursement under this chapter by providing written notice to a municipality in which the development is wholly or partly located and a county in which the development is located if the development is wholly or partly located in the unincorporated area of the county.
(b) Requires that the notice include an itemized list of the infrastructure costs described by Section 396.003 incurred by the developer and proof of payment for each infrastructure cost incurred by the developer.
Sec. 396.005. REIMBURSEMENT OF INFRASTRUCTURE COSTS. (a) Authorizes a municipality or county receiving notice under Section 396.004 from a developer eligible under Section 396.003 to reimburse the developer's infrastructure costs described by Section 396.003 in accordance with this section.
(b) Prohibits the amount of reimbursement paid to a developer under this chapter in a tax year from exceeding the amount of property taxes assessed by the municipality or county and paid by the developer for that tax year on the property on which the attainable housing development for which the developer seeks reimbursement is located. Provides that a county's liability for reimbursement under this chapter is limited to the property taxes assessed by the county on and paid by the developer for the property located in the unincorporated area of the county.
(c) Provides that a developer eligible under Section 396.003 is eligible for reimbursement under this chapter until the earlier of certain dates.
(d) Requires a municipality or county that reimburses a developer under this section to pay the initial reimbursement payment not later than the 90th day after the date the municipality or county receives the notice under Section 396.004.
Sec. 396.006. ANNUAL REPORT OF REIMBURSABLE COSTS. Requires a developer that receives reimbursement under Section 396.005 to submit an annual report to the municipality or county from which the developer receives reimbursement that includes an itemized list of the infrastructure costs incurred by the developer during that year and proof of payment for each infrastructure cost incurred by the developer during that year.
SECTION 2. Makes application of this Act prospective.
SECTION 3. Effective date: September 1, 2025.