By Barrientos                                    S.B. No. 269

      75R3368 PAM-D                           

                                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 housing for which financial

 1-9     assistance is available under a program administered by the Texas

1-10     Department of Housing and Community Affairs, including the

1-11     community development block grant program and the low income

1-12     housing tax credit program.

1-13           Sec. 395.102.  MUNICIPAL WAIVER OF IMPACT FEES.  (a)  To

1-14     stimulate the development of affordable housing, a municipality by

1-15     ordinance may waive the collection of impact fees imposed under

1-16     this chapter.  The municipality shall take measures to ensure that

1-17     the waiver results in the development of affordable housing.

1-18           (b)  The amount of impact fees waived under this section may

1-19     be claimed, by an applicant for state or federal matching funds or

1-20     tax credits for the development of the affordable housing, as local

1-21     matching funds under a state program or, if permitted by federal

1-22     law or regulation, under a federal program.

1-23           (c)  A municipality that authorizes a waiver of the

1-24     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.  (a)

 2-4     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

2-26     crowded condition of the calendars in both houses create an

2-27     emergency and an imperative public necessity that the

 3-1     constitutional rule requiring bills to be read on three several

 3-2     days in each house be suspended, and this rule is hereby suspended,

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

 3-4     passage, and it is so enacted.