JH C.S.S.B. 269 75(R)    BILL ANALYSIS


URBAN AFFAIRS
C.S.S.B. 269
By: Barrientos (Bailey)
5-5-97
Committee Report (Substituted)



BACKGROUND 

Currently, state law specifies the methodology a municipality may use to
set impact fees on new development. A city may be unclear as to the
specific authority it has to waive certain fees if a development is for
housing low-income families. S.B. 269 provides for the waiver and
alternate use of impact fees. 

PURPOSE

As proposed, C.S.S.B. 269 authorizes a municipality to waive the
collection of impact fees, and authorizes the governing body of the
municipality to dedicate funds from impact fees to establish a program to
assist in the funding of affordable housing. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 395, Local Government Code, by adding
Subchapter E, as   follows: 
  SUBCHAPTER E. WAIVER OR ALTERNATE USE OF IMPACT FEES
  Sec. 395.101. AFFORDABLE HOUSING DEFINED. Defines "affordable
housing."  Sec. 395.102. MUNICIPAL WAIVER OF IMPACT FEES. Authorizes   a
municipality by ordinance to waive the collection of impact fees imposed
in   order to stimulate affordable housing development and requires the
municipality   to take measures ensuring that the waiver results in the
development of affordable   housing. Authorizes the amount of waived
impact fees to be claimed by an   applicant for state or federal matching
funds or tax credits for the development of   the affordable housing, as
local matching funds under a state program or, if   permitted by federal
law or regulation, under a federal program. Prohibits a   municipality
that authorizes a waiver of the collection of impact fees from   denying a
waiver to an eligible applicant because of the location of the affordable
housing.  Sec. 395.103. ALTERNATE USE FOR IMPACT FEES COLLECTED.
Authorizes the governing body of a municipality by ordinance to dedicate
proceeds from impact fees to establish a program for down payments so that
individuals may qualify for single-family home ownership. Authorizes a
municipality to adopt an ordinance under this section only after a public
hearing   and sets forth requirements for the publishing of hearing
notices. Establishes   requirements that must be met by an ordinance
adopted under this section. 
  Sec. 395.104. INCREASE IN IMPACT FEES PROHIBITED. Prohibits impact
fees imposed under this chapter from being increased because of a
municipal   waiver or alternate dedication of fees. 

SECTION 2. Emergency clause. Effective date: upon passage.


 COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute expands definition of "affordable housing" to include
single-family housing with a unit cost not greater than the median as
determined by the city.