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.