By: Barrientos S.B. No. 1335 A BILL TO BE ENTITLED AN ACT 1-1 relating to the waiver of, moratorium on, or alternate use of 1-2 municipal impact fees. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Chapter 395, Local Government Code, is amended by 1-5 adding Subchapter E to read as follows: 1-6 SUBCHAPTER E. WAIVER OF, MORATORIUM ON, OR ALTERNATE 1-7 USE OF IMPACT FEES 1-8 Sec. 395.101. AFFORDABLE HOUSING DEFINED. In this 1-9 subchapter, "affordable housing" means housing for which financial 1-10 assistance is available under a program administered by the Texas 1-11 Department of Housing and Community Affairs or the United States 1-12 Department of Housing and Urban Development, including the 1-13 community development block grant program and the low income 1-14 housing tax credit program. 1-15 Sec. 395.102. MUNICIPAL WAIVER OF IMPACT FEES. (a) To 1-16 stimulate the development of affordable housing, a municipality by 1-17 ordinance may waive the collection of impact fees imposed under 1-18 this chapter. The municipality shall take measures to ensure that 1-19 the waiver results in the development of affordable housing. 1-20 (b) The amount of impact fees waived under this section may 1-21 be claimed, by an applicant for state or federal matching funds or 1-22 tax credits for the development of the affordable housing, as local 1-23 matching funds under a state program or, if permitted by federal 1-24 law or regulation, under a federal program. 2-1 (c) A municipality that authorizes a waiver of the 2-2 collection of impact fees under this section may not deny a waiver 2-3 to an eligible applicant because of the location of the affordable 2-4 housing. 2-5 Sec. 395.103. COUNTY MORATORIUM ON COLLECTION OF IMPACT 2-6 FEES. (a) To stimulate the development of affordable housing, the 2-7 commissioners court of a county with a population of 500,000 or 2-8 more by order may impose a six-month moratorium on the collection 2-9 of impact fees imposed in the county by a municipality under this 2-10 chapter. The commissioners court may renew the moratorium only for 2-11 one additional six-month period. The commissioners court shall 2-12 take measures to ensure that the moratorium results in the 2-13 development of affordable housing. 2-14 (b) The commissioners court by order must establish a public 2-15 hearing date to consider the adoption of a moratorium under this 2-16 section. The commissioners court shall publish notice of the 2-17 hearing once a week for three consecutive weeks, the first notice 2-18 to appear before the 30th day but on or after the 60th day before 2-19 the date of the hearing in one or more newspapers of general 2-20 circulation in the county. 2-21 (c) After the public hearing, the commissioners court may 2-22 adopt a moratorium only if the court finds that: 2-23 (1) affordable housing is not available in proportion 2-24 to the number of persons in the county who are at or below 60 2-25 percent of the median family income in the county; 2-26 (2) the occupancy rate in the county for multifamily 2-27 housing is at 95 percent or greater; and 3-1 (3) a moratorium on the collection of municipal impact 3-2 fees would not impose an undue burden on a municipal utility 3-3 system. 3-4 (d) If a municipality has a population of 5,000 or less: 3-5 (1) the commissioners court may limit the moratorium 3-6 to stimulate the development of single-family homes; and 3-7 (2) the moratorium must automatically expire when the 3-8 forbearance to collect the impact fees under the moratorium results 3-9 in the development of the greater of 50 service units or two 3-10 percent of the service units projected in the capital improvements 3-11 plan. 3-12 (e) This section applies only to a county with a population 3-13 of more than 500,000 and less than 1,000,000 in which, on the 3-14 effective date of this Act, the municipality with the highest 3-15 population has waived imposition of impact fees for the purpose of 3-16 assisting the development of affording housing. 3-17 Sec. 395.104. ALTERNATE USE FOR IMPACT FEES COLLECTED. 3-18 (a) The governing body of a municipality by ordinance may dedicate 3-19 proceeds from impact fees to establish a program to provide funds 3-20 for down payments to qualify individuals with incomes no greater 3-21 than 80 percent of the area median family income, adjusted for 3-22 family size, as determined by the United States Department of 3-23 Housing and Urban Development for single-family home ownership. 3-24 (b) The municipality may adopt an ordinance under this 3-25 section only after a public hearing. The municipality shall 3-26 publish notice of the hearing once a week for three consecutive 3-27 weeks, the first notice to appear before the 30th day but on or 4-1 after the 60th day before the date of the hearing in one or more 4-2 newspapers of general circulation in the municipality. 4-3 (c) An ordinance adopted under this section must establish: 4-4 (1) the total number of housing units eligible for 4-5 funds under the program; 4-6 (2) the method of calculating the reduction in project 4-7 costs for each housing unit; and 4-8 (3) the method of monitoring the level of income for 4-9 each applicant qualifying under the program. 4-10 Sec. 395.105. INCREASE IN IMPACT FEES PROHIBITED. Impact 4-11 fees imposed under this chapter may not be increased as a result of 4-12 a municipal waiver or alternate dedication of fees or a county 4-13 moratorium on fees as provided by this subchapter. 4-14 SECTION 2. The importance of this legislation and the 4-15 crowded condition of the calendars in both houses create an 4-16 emergency and an imperative public necessity that the 4-17 constitutional rule requiring bills to be read on three several 4-18 days in each house be suspended, and this rule is hereby suspended, 4-19 and that this Act take effect and be in force from and after its 4-20 passage, and it is so enacted.