By: Barrientos S.B. No. 269 A BILL TO BE ENTITLED AN ACT 1-1 relating to the waiver or alternate use of municipal impact fees. 1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-3 SECTION 1. Chapter 395, Local Government Code, is amended by 1-4 adding Subchapter E to read as follows: 1-5 SUBCHAPTER E. WAIVER OR ALTERNATE USE OF IMPACT FEES 1-6 Sec. 395.101. AFFORDABLE HOUSING DEFINED. In this 1-7 subchapter, "affordable housing" means housing for which financial 1-8 assistance is available under a program administered by the Texas 1-9 Department of Housing and Community Affairs, including the 1-10 community development block grant program and the low income 1-11 housing tax credit program. 1-12 Sec. 395.102. MUNICIPAL WAIVER OF IMPACT FEES. (a) To 1-13 stimulate the development of affordable housing, a municipality by 1-14 ordinance may waive the collection of impact fees imposed under 1-15 this chapter. The municipality shall take measures to ensure that 1-16 the waiver results in the development of affordable housing. 1-17 (b) The amount of impact fees waived under this section may 1-18 be claimed, by an applicant for state or federal matching funds or 1-19 tax credits for the development of the affordable housing, as local 1-20 matching funds under a state program or, if permitted by federal 1-21 law or regulation, under a federal program. 1-22 (c) A municipality that authorizes a waiver of the 1-23 collection of impact fees under this section may not deny a waiver 2-1 to an eligible applicant because of the location of the affordable 2-2 housing. 2-3 Sec. 395.103. ALTERNATE USE FOR IMPACT FEES COLLECTED. 2-4 (a) The governing body of a municipality by ordinance may dedicate 2-5 proceeds from impact fees to establish a program to provide funds 2-6 for down payments to qualify individuals for single-family home 2-7 ownership. 2-8 (b) The municipality may adopt an ordinance under this 2-9 section only after a public hearing. The municipality shall 2-10 publish notice of the hearing once a week for three consecutive 2-11 weeks, the first notice to appear before the 30th day but on or 2-12 after the 60th day before the date of the hearing in one or more 2-13 newspapers of general circulation in the municipality. 2-14 (c) An ordinance adopted under this section must establish: 2-15 (1) the total number of housing units eligible for 2-16 funds under the program; 2-17 (2) the method of calculating the reduction in project 2-18 costs for each housing unit; and 2-19 (3) the method of monitoring the level of income for 2-20 each applicant qualifying under the program. 2-21 Sec. 395.104. INCREASE IN IMPACT FEES PROHIBITED. Impact 2-22 fees imposed under this chapter may not be increased as a result of 2-23 a municipal waiver or alternate dedication of fees as provided by 2-24 this subchapter. 2-25 SECTION 2. The importance of this legislation and the 3-1 crowded condition of the calendars in both houses create an 3-2 emergency and an imperative public necessity that the 3-3 constitutional rule requiring bills to be read on three several 3-4 days in each house be suspended, and this rule is hereby suspended, 3-5 and that this Act take effect and be in force from and after its 3-6 passage, and it is so enacted.