1-1        By:  Barrientos                                 S.B. No. 1335
    1-2        (In the Senate - Filed March 10, 1995; March 20, 1995, read
    1-3  first time and referred to Committee on Intergovernmental
    1-4  Relations; April 27, 1995, reported favorably, as amended, by the
    1-5  following vote:  Yeas 8, Nays 0; April 27, 1995, sent to printer.)
    1-6  COMMITTEE AMENDMENT NO. 1                             By:  Gallegos
    1-7  Amend S.B. No. 1335 as follows:
    1-8        On page 3, line 15 (committee printing page 2, line 12) after
    1-9  "individuals" add the words "with incomes no greater than 80
   1-10  percent of the area median family income, adjusted for family size,
   1-11  as determined by the United States Department of Housing and Urban
   1-12  Development".
   1-13                         A BILL TO BE ENTITLED
   1-14                                AN ACT
   1-15  relating to the waiver of, moratorium on, or alternate use of
   1-16  municipal impact fees.
   1-17        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-18        SECTION 1.  Chapter 395, Local Government Code, is amended by
   1-19  adding Subchapter E to read as follows:
   1-20         SUBCHAPTER E.  WAIVER OF, MORATORIUM ON, OR ALTERNATE
   1-21                          USE OF IMPACT FEES
   1-22        Sec. 395.101.  AFFORDABLE HOUSING DEFINED.  In this
   1-23  subchapter, "affordable housing" means housing for which financial
   1-24  assistance is available under a program administered by the Texas
   1-25  Department of Housing and Community Affairs, including the
   1-26  community development block grant program and the low income
   1-27  housing tax credit program.
   1-28        Sec. 395.102.  MUNICIPAL WAIVER OF IMPACT FEES.  (a)  To
   1-29  stimulate the development of affordable housing, a municipality by
   1-30  ordinance may waive the collection of impact fees imposed under
   1-31  this chapter.  The municipality shall take measures to ensure that
   1-32  the waiver results in the development of affordable housing.
   1-33        (b)  The amount of impact fees waived under this section may
   1-34  be claimed, by an applicant for state or federal matching funds or
   1-35  tax credits for the development of the affordable housing, as local
   1-36  matching funds under a state program or, if permitted by federal
   1-37  law or regulation, under a federal program.
   1-38        (c)  A municipality that authorizes a waiver of the
   1-39  collection of impact fees under this section may not deny a waiver
   1-40  to an eligible applicant because of the location of the affordable
   1-41  housing.
   1-42        Sec. 395.103.  COUNTY MORATORIUM ON COLLECTION OF IMPACT
   1-43  FEES.  (a)  To stimulate the development of affordable housing, the
   1-44  commissioners court of a county with a population of 500,000 or
   1-45  more by order may impose a six-month moratorium on the collection
   1-46  of impact fees imposed in the county by a municipality under this
   1-47  chapter.  The commissioners court may renew the moratorium only for
   1-48  one additional six-month period.  The commissioners court shall
   1-49  take measures to ensure that the moratorium results in the
   1-50  development of affordable housing.
   1-51        (b)  The commissioners court by order must establish a public
   1-52  hearing date to consider the adoption of a moratorium under this
   1-53  section.  The commissioners court shall publish notice of the
   1-54  hearing once a week for three consecutive weeks, the first notice
   1-55  to appear before the 30th day but on or after the 60th day before
   1-56  the date of the hearing in one or more newspapers of general
   1-57  circulation in the county.
   1-58        (c)  After the public hearing, the commissioners court may
   1-59  adopt a moratorium only if the court finds that:
   1-60              (1)  affordable housing is not available in proportion
   1-61  to the number of persons in the county who are at or below 60
   1-62  percent of the median family income in the county;
   1-63              (2)  the occupancy rate in the county for multifamily
   1-64  housing is at 95 percent or greater; and
   1-65              (3)  a moratorium on the collection of municipal impact
   1-66  fees would not impose an undue burden on a municipal utility
   1-67  system.
   1-68        (d)  If a municipality has a population of 5,000 or less:
    2-1              (1)  the commissioners court may limit the moratorium
    2-2  to stimulate the development of single-family homes; and
    2-3              (2)  the moratorium must automatically expire when the
    2-4  forbearance to collect the impact fees under the moratorium results
    2-5  in the development of the greater of 50 service units or two
    2-6  percent of the service units projected in the capital improvements
    2-7  plan.
    2-8        Sec. 395.104.  ALTERNATE USE FOR IMPACT FEES COLLECTED.
    2-9  (a)  The governing body of a municipality by ordinance may dedicate
   2-10  proceeds from impact fees to establish a program to provide funds
   2-11  for down payments to qualify individuals for single-family home
   2-12  ownership.
   2-13        (b)  The municipality may adopt an ordinance under this
   2-14  section only after a public hearing.  The municipality shall
   2-15  publish notice of the hearing once a week for three consecutive
   2-16  weeks, the first notice to appear before the 30th day but on or
   2-17  after the 60th day before the date of the hearing in one or more
   2-18  newspapers of general circulation in the municipality.
   2-19        (c)  An ordinance adopted under this section must establish:
   2-20              (1)  the total number of housing units eligible for
   2-21  funds under the program;
   2-22              (2)  the method of calculating the reduction in project
   2-23  costs for each housing unit; and
   2-24              (3)  the method of monitoring the level of income for
   2-25  each applicant qualifying under the program.
   2-26        Sec. 395.105.  INCREASE IN IMPACT FEES PROHIBITED.  Impact
   2-27  fees imposed under this chapter may not be increased as a result of
   2-28  a municipal waiver or alternate dedication of fees or a county
   2-29  moratorium on fees as provided by this subchapter.
   2-30        SECTION 2.  The importance of this legislation and the
   2-31  crowded condition of the calendars in both houses create an
   2-32  emergency and an imperative public necessity that the
   2-33  constitutional rule requiring bills to be read on three several
   2-34  days in each house be suspended, and this rule is hereby suspended,
   2-35  and that this Act take effect and be in force from and after its
   2-36  passage, and it is so enacted.
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