1-1 By: Barrientos S.B. No. 269 1-2 (In the Senate - Filed January 22, 1997; January 27, 1997, 1-3 read first time and referred to Committee on Intergovernmental 1-4 Relations; April 1, 1997, reported favorably by the following vote: 1-5 Yeas 11, Nays 0; April 1, 1997, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the waiver or alternate use of municipal impact fees. 1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-10 SECTION 1. Chapter 395, Local Government Code, is amended by 1-11 adding Subchapter E to read as follows: 1-12 SUBCHAPTER E. WAIVER OR ALTERNATE USE OF IMPACT FEES 1-13 Sec. 395.101. AFFORDABLE HOUSING DEFINED. In this 1-14 subchapter, "affordable housing" means housing for which financial 1-15 assistance is available under a program administered by the Texas 1-16 Department of Housing and Community Affairs, including the 1-17 community development block grant program and the low income 1-18 housing tax credit program. 1-19 Sec. 395.102. MUNICIPAL WAIVER OF IMPACT FEES. (a) To 1-20 stimulate the development of affordable housing, a municipality by 1-21 ordinance may waive the collection of impact fees imposed under 1-22 this chapter. The municipality shall take measures to ensure that 1-23 the waiver results in the development of affordable housing. 1-24 (b) The amount of impact fees waived under this section may 1-25 be claimed, by an applicant for state or federal matching funds or 1-26 tax credits for the development of the affordable housing, as local 1-27 matching funds under a state program or, if permitted by federal 1-28 law or regulation, under a federal program. 1-29 (c) A municipality that authorizes a waiver of the 1-30 collection of impact fees under this section may not deny a waiver 1-31 to an eligible applicant because of the location of the affordable 1-32 housing. 1-33 Sec. 395.103. ALTERNATE USE FOR IMPACT FEES COLLECTED. 1-34 (a) The governing body of a municipality by ordinance may dedicate 1-35 proceeds from impact fees to establish a program to provide funds 1-36 for down payments to qualify individuals for single-family home 1-37 ownership. 1-38 (b) The municipality may adopt an ordinance under this 1-39 section only after a public hearing. The municipality shall 1-40 publish notice of the hearing once a week for three consecutive 1-41 weeks, the first notice to appear before the 30th day but on or 1-42 after the 60th day before the date of the hearing in one or more 1-43 newspapers of general circulation in the municipality. 1-44 (c) An ordinance adopted under this section must establish: 1-45 (1) the total number of housing units eligible for 1-46 funds under the program; 1-47 (2) the method of calculating the reduction in project 1-48 costs for each housing unit; and 1-49 (3) the method of monitoring the level of income for 1-50 each applicant qualifying under the program. 1-51 Sec. 395.104. INCREASE IN IMPACT FEES PROHIBITED. Impact 1-52 fees imposed under this chapter may not be increased as a result of 1-53 a municipal waiver or alternate dedication of fees as provided by 1-54 this subchapter. 1-55 SECTION 2. The importance of this legislation and the 1-56 crowded condition of the calendars in both houses create an 1-57 emergency and an imperative public necessity that the 1-58 constitutional rule requiring bills to be read on three several 1-59 days in each house be suspended, and this rule is hereby suspended, 1-60 and that this Act take effect and be in force from and after its 1-61 passage, and it is so enacted. 1-62 * * * * *