SRC-JRN S.B. 269 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 269
By: Barrientos
Intergovernmental Relations
3-17-97
As Filed


DIGEST 

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, 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

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

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.