75R13387 CAG-D                          

         By Barrientos                                          S.B. No. 269

         Substitute the following for S.B. No. 269:

         By Bailey                                          C.S.S.B. No. 269

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the waiver or alternate use of municipal impact fees.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Chapter 395, Local Government Code, is amended by

 1-5     adding Subchapter E to read as follows:

 1-6            SUBCHAPTER E.  WAIVER OR ALTERNATE USE OF IMPACT FEES

 1-7           Sec. 395.101.  AFFORDABLE HOUSING DEFINED.  In this

 1-8     subchapter, "affordable housing" means:

 1-9                 (1)  housing for which financial assistance is

1-10     available under a program administered by the Texas Department of

1-11     Housing and Community Affairs, including the community development

1-12     block grant program and the low income housing tax credit program;

1-13     or

1-14                 (2)  single family housing having a unit cost not

1-15     greater than the median unit cost for single family housing as

1-16     determined, at least once each calendar year, by the municipality

1-17     for the locality.

1-18           Sec. 395.102.  MUNICIPAL WAIVER OF IMPACT FEES.  (a)  To

1-19     stimulate the development of affordable housing, a municipality by

1-20     ordinance may waive the collection of impact fees imposed under

1-21     this chapter.  The municipality shall take measures to ensure that

1-22     the waiver results in the development of affordable housing.

1-23           (b)  The amount of impact fees waived under this section may

1-24     be claimed, by an applicant for state or federal matching funds or

 2-1     tax credits for the development of the affordable housing, as local

 2-2     matching funds under a state program or, if permitted by federal

 2-3     law or regulation, under a federal program.

 2-4           (c)  A municipality that authorizes a waiver of the

 2-5     collection of impact fees under this section may not deny a waiver

 2-6     to an eligible applicant because of the location of the affordable

 2-7     housing.

 2-8           Sec. 395.103.  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. 395.104.  INCREASE IN IMPACT FEES PROHIBITED.  Impact

2-27     fees imposed under this chapter may not be increased as a result of

 3-1     a municipal waiver or alternate dedication of fees as provided by

 3-2     this subchapter.

 3-3           SECTION 2.  The importance of this legislation and the

 3-4     crowded condition of the calendars in both houses create an

 3-5     emergency and an imperative public necessity that the

 3-6     constitutional rule requiring bills to be read on three several

 3-7     days in each house be suspended, and this rule is hereby suspended,

 3-8     and that this Act take effect and be in force from and after its

 3-9     passage, and it is so enacted.