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. 2-37 * * * * *