Texas 2023 - 88th Regular

Texas House Bill HB1526 Compare Versions

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1	1	H.B. No. 1526
2	2
3	3
4	4	AN ACT
5	5	relating to parkland dedication for multifamily, hotel, and motel
6	6	property development by certain municipalities; authorizing a fee.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Chapter 212, Local Government Code, is amended
9	9	by adding Subchapter H to read as follows:
10	10	SUBCHAPTER H. MULTIFAMILY, HOTEL, AND MOTEL PARKLAND DEDICATION:
11	11	MUNICIPALITIES WITH POPULATION OF MORE THAN 800,000
12	12	Sec. 212.201. DEFINITIONS. In this subchapter:
13	13	(1) "Affordable dwelling unit" means a residential
14	14	unit offered at a below market rate for rent or sale under a
15	15	municipal, county, state, or federal program.
16	16	(2) "Consumer price index" means the Consumer Price
17	17	Index for All Urban Consumers (CPI-U), U.S. City Average, published
18	18	by the Bureau of Labor Statistics of the United States Department of
19	19	Labor or its successor in function.
20	20	(3) "Improvement" and "market value" have the meanings
21	21	assigned by Section 1.04, Tax Code.
22	22	(4) "Land value" means the market value of land per
23	23	acre, not including an improvement to the land.
24	24	(5) "Median family income" means the United States
25	25	Census Bureau's most recent American Community Survey's five-year
26	26	estimate of median family income for all families within the
27	27	applicable municipality.
28	28	(6) "Multifamily unit" means a residential unit other
29	29	than a detached single-family or two-family dwelling.
30	30	(7) "Parkland" means an area that is designated as a
31	31	park for the purpose of recreational activity. The term includes an
32	32	open space, a recreational facility, and a trail.
33	33	(8) "Parkland dedication" means the fee simple
34	34	transfer of land or the dedication of an easement to a municipality
35	35	for nonexclusive use as parkland.
36	36	(9) "Parkland dedication fee" means a fee imposed by a
37	37	municipality on a landowner for the acquisition, development,
38	38	repair, and maintenance of parkland.
39	39	(10) "Plan" means a subdivision development plan,
40	40	subdivision plan, site plan, land development plan, and site
41	41	development plan each proposing the development of multifamily,
42	42	hotel, or motel units.
43	43	Sec. 212.202. APPLICABILITY. This subchapter applies only
44	44	to a municipality with a population of more than 800,000.
45	45	Sec. 212.203. CONSTRUCTION. This subchapter may not be
46	46	construed to prohibit a municipality from requiring by ordinance a
47	47	landowner to dedicate a portion of the landowner's property for
48	48	parkland use, impose a parkland dedication fee, or both require the
49	49	dedication and impose the fee for the development of single-family
50	50	or two-family uses.
51	51	Sec. 212.204. EXCLUSIVE AUTHORITY; LIMITATION. (a)
52	52	Notwithstanding any other law, a municipality has exclusive
53	53	authority within its boundaries to require the dedication of
54	54	parkland, impose a parkland dedication fee, or both require the
55	55	dedication and impose the fee. A municipality may not delegate that
56	56	authority to another political subdivision.
57	57	(b) A municipality may only exercise its authority under
58	58	this section through a plan application in accordance with this
59	59	subchapter.
60	60	Sec. 212.205. PARKLAND DEDICATION, FEE, OR COMBINATION.
61	61	(a) A municipality may require a landowner to dedicate a portion of
62	62	the landowner's property for parkland use, impose a parkland
63	63	dedication fee, or both require the dedication and impose the fee
64	64	under a plan application filed under this subchapter by:
65	65	(1) paying a fee set in accordance with Section
66	66	212.210(b) or 212.211(b), as applicable; or
67	67	(2) dedicating a portion up to the maximum size
68	68	authorized under Section 212.208 and paying a reduced fee set in
69	69	accordance with Section 212.210(d) or 212.211(c), as applicable.
70	70	(b) A municipality may allow a landowner to elect a parkland
71	71	dedication, a parkland dedication fee, or a dedication and fee
72	72	under Subsection (a).
73	73	Sec. 212.206. REQUEST FOR PARKLAND DEDICATION
74	74	DETERMINATION. (a) A landowner may, at the landowner's sole
75	75	discretion, make a written request to a municipality that the
76	76	municipality make a timely determination of the dedication amount
77	77	the municipality will impose under the municipality's parkland
78	78	dedication requirements as applied to the landowner's property
79	79	being considered for development.
80	80	(b) A municipality may make a reasonable written request to
81	81	the landowner for additional information that is:
82	82	(1) publicly and readily available; and
83	83	(2) necessary to provide a determination under this
84	84	section.
85	85	(c) A municipality shall respond in writing to a request
86	86	made under Subsection (a) not later than the 30th day after the date
87	87	the municipality receives a completed request. If the municipality
88	88	fails to respond in accordance with this subsection, the
89	89	municipality may not require a parkland dedication as a condition
90	90	of approval of a proposed plan or application for property that is
91	91	the subject of the request.
92	92	(d) A parkland dedication determination issued under this
93	93	section:
94	94	(1) is a legally binding determination of the amount
95	95	of the landowner's parkland dedication for the property that is the
96	96	subject of the determination; and
97	97	(2) is applicable to the property that is the subject
98	98	of the determination for a period that is the lesser of:
99	99	(A) two years; or
100	100	(B) the time between the date the determination
101	101	is issued and the date a plan application is filed that uses or
102	102	relies on the determination.
103	103	(e) A landowner may release in writing a municipality from a
104	104	determination made under this section.
105	105	Sec. 212.207. PARKLAND DEDICATION AUTHORITY. (a) A
106	106	municipality may not require a parkland dedication, impose a
107	107	parkland dedication fee, or both require the dedication and impose
108	108	the fee for any commercial use. For the purpose of this section, a
109	109	commercial use does not include a multifamily, hotel, or motel use.
110	110	(b) If a plan application submitted to a municipality
111	111	proposes development of the land subject to the application that
112	112	includes both multifamily, hotel, or motel and commercial uses, the
113	113	municipality shall determine the amount of a parkland dedication
114	114	based only on the pro rata portion of the land proposed for
115	115	multifamily, hotel, or motel use.
116	116	Sec. 212.208. LIMITATION ON PARKLAND DEDICATION AMOUNT. A
117	117	municipality may not require a landowner to dedicate as parkland
118	118	under this subchapter more than 10 percent, without adjustment or
119	119	disqualification for impairment, of the gross site area of the land
120	120	subject to a plan application.
121	121	Sec. 212.209. INITIAL REQUIREMENTS FOR DETERMINING FEES.
122	122	(a) For purposes of determining the amount of a fee imposed under
123	123	this section, the governing body of a municipality, after providing
124	124	at least 30 days' public notice and holding a public hearing, shall
125	125	by official action designate all territory within its municipal
126	126	boundaries as a suburban area, urban area, or central business
127	127	district area. The governing body may use the same designation for
128	128	multiple areas in the municipality. The governing body may amend a
129	129	designation only during the adoption or amendment of a municipal
130	130	comprehensive plan under Chapter 213.
131	131	(b) Not later than the 10th day after the date the
132	132	municipality designates its territory under Subsection (a), the
133	133	municipality shall notify each appraisal district in which the
134	134	municipality is wholly or partly located of the designation.
135	135	(c) Once every 10 years, each appraisal district in which
136	136	the municipality is wholly or partly located shall calculate and
137	137	provide to the municipality the average land value for each area or
138	138	portion of an area designated by the municipality under Subsection
139	139	(a) that is located in the district.
140	140	(d) If multiple appraisal districts calculate an average
141	141	land value for different portions of an area designated under
142	142	Subsection (a), the municipality shall determine the area's total
143	143	average land value by:
144	144	(1) multiplying each district's calculated value for
145	145	the portion located in the district by the percentage, expressed as
146	146	a fraction, that the portion is to the total area; and
147	147	(2) adding the resulting amounts.
148	148	(e) In each year other than the year in which an appraisal
149	149	district calculates average land values under Subsection (c), a
150	150	municipality shall calculate the average land value for each area
151	151	designated under Subsection (a) by multiplying the previous year's
152	152	average land value for the area by one plus the average consumer
153	153	price index for each month of the previous year.
154	154	(f) A municipality shall set the municipality's dwelling
155	155	unit factor, which reflects the number of parkland acres for each
156	156	dwelling unit proposed by a plan application. The factor may not be
157	157	more than:
158	158	(1) .005 for multifamily units; and
159	159	(2) .004 for rooms in a hotel or motel ordinarily used
160	160	for sleeping.
161	161	(g) A municipality shall set the municipality's density
162	162	factor, which reflects the diminishing expectation of parkland
163	163	acres per dwelling unit in increasingly dense urban environments,
164	164	for each area designated by the municipality under Subsection (a).
165	165	The density factor may not be less than:
166	166	(1) one for the suburban area;
167	167	(2) four for the urban area; and
168	168	(3) 40 for the central business district area.
169	169	Sec. 212.210. GENERAL REQUIREMENTS FOR CALCULATION OF FEES.
170	170	(a) This section applies only to a municipality to which Section
171	171	212.211 does not apply.
172	172	(b) A municipality shall determine the amount of a fee
173	173	imposed under Section 212.205(a)(1) for land subject to a plan
174	174	application by:
175	175	(1) adding, as appropriate:
176	176	(A) the product of the number of multifamily
177	177	units proposed by the plan by the dwelling unit factor prescribed by
178	178	Section 212.209(f)(1); and
179	179	(B) the product of the number of hotel and motel
180	180	rooms ordinarily used for sleeping proposed by the plan by the
181	181	dwelling unit factor prescribed by Section 212.209(f)(2);
182	182	(2) multiplying the sum calculated under Subdivision
183	183	(1) by the average land value for the area in which the land is
184	184	located; and
185	185	(3) dividing the product calculated under Subdivision
186	186	(2) by the applicable density factor.
187	187	(c) For purposes of Subsection (b)(1), a municipality shall
188	188	exclude from a plan application the number of affordable dwelling
189	189	units proposed by the plan.
190	190	(d) A municipality shall determine the amount of a fee
191	191	imposed under Section 212.205(a)(2) for land subject to a plan
192	192	application by:
193	193	(1) calculating the amount of the fee for the land
194	194	under Subsection (b); and
195	195	(2) subtracting from the amount calculated under
196	196	Subdivision (1) the product of the land value applicable to the land
197	197	and the number of acres dedicated.
198	198	(e) If a calculation made under Subsection (d) results in a
199	199	negative number, the applicable landowner is entitled to receive
200	200	from the applicable municipality the amount equal to the positive
201	201	difference between the calculated amount and zero. The
202	202	municipality shall pay that amount to the landowner at the time of
203	203	transfer of fee simple title or the recording of the easement.
204	204	Sec. 212.211. REQUIREMENTS CALCULATION OF FEES FOR
205	205	MUNICIPALITIES WITH LOW FEES. (a) This section applies only to a
206	206	municipality that after August 31, 2023, requires a parkland
207	207	dedication fee for a multifamily, hotel, or motel development in an
208	208	amount, calculated on a per dwelling unit basis, not greater than
209	209	two percent of the median family income.
210	210	(b) A municipality to which this section applies may set a
211	211	parkland dedication fee. If the municipality elects to set the fee
212	212	in an amount greater than two percent of the municipality's median
213	213	family income:
214	214	(1) this section no longer applies to the
215	215	municipality; and
216	216	(2) the municipality must set the fee in accordance
217	217	with Section 212.210.
218	218	(c) A municipality shall determine the amount of a fee
219	219	imposed under Section 212.205(a)(2) for land subject to a plan
220	220	application by subtracting from the amount of the fee set under
221	221	Subsection (b) the product of the land value applicable to the land
222	222	and the number of acres dedicated.
223	223	(d) If a calculation made under Subsection (c) results in a
224	224	negative number, the applicable landowner is entitled to receive
225	225	from the applicable municipality the amount equal to the positive
226	226	difference between the calculated amount and zero. The
227	227	municipality shall pay that amount to the landowner at the time of
228	228	transfer of fee simple title or the recording of the easement.
229	229	Sec. 212.212. COLLECTION OF FEES. A municipality shall
230	230	provide a landowner a written determination of fees owed under this
231	231	subchapter before approving a plan application but may only collect
232	232	a fee authorized under this subchapter as a precondition to the
233	233	issuance of a final certificate of occupancy.
234	234	Sec. 212.213. APPEAL. (a) A landowner may appeal a
235	235	determination made by a municipal department, board, or commission
236	236	regarding any element of a parkland dedication requirement,
237	237	including amount, orientation, or suitability, as that element
238	238	applies to the landowner's property, to the municipal planning
239	239	commission or, if the municipality has no planning commission, the
240	240	governing body of the municipality. The appeal must include a
241	241	requested adjudication of the issue in controversy.
242	242	(b) A landowner may appeal a municipal planning
243	243	commission's determination under Subsection (a) to the governing
244	244	body of the municipality.
245	245	(c) In an appeal under this section, a municipal planning
246	246	commission or governing body of a municipality may uphold, reverse,
247	247	or modify a parkland dedication requirement as applied to the
248	248	landowner making the appeal.
249	249	(d) A municipal planning commission or governing body of a
250	250	municipality shall uphold, reverse, or modify a parkland dedication
251	251	requirement that is the subject of an appeal not later than the 60th
252	252	day after the date the appeal is filed with the commission or
253	253	governing body. If the commission or governing body fails to act in
254	254	accordance with this subsection, the parkland dedication
255	255	requirement is considered resolved in favor of the landowner's
256	256	requested adjudication.
257	257	SECTION 2. (a) Not later than December 1, 2023, each
258	258	municipality to which Subchapter H, Chapter 212, Local Government
259	259	Code, as added by this Act, applies shall:
260	260	(1) effective January 1, 2024:
261	261	(A) designate the areas of the municipality as
262	262	required by Section 212.209(a), Local Government Code, as added by
263	263	this Act; and
264	264	(B) set the municipality's dwelling unit and
265	265	density factors, as required by Sections 212.209(f) and (g), Local
266	266	Government Code, as added by this Act; and
267	267	(2) provide to each appraisal district in which the
268	268	municipality is wholly or partly located the location of each area
269	269	designated under Subdivision (1)(A) of this subsection in a manner
270	270	sufficient to allow the appraisal district to make the calculations
271	271	required by Subsection (b) of this section.
272	272	(b) Not later than January 1, 2024, each appraisal district
273	273	that appraises property located in a municipality described by
274	274	Subsection (a) of this section shall calculate and provide to the
275	275	municipality the average land values as required by Section
276	276	212.209(c), Local Government Code, as added by this Act.
277	277	SECTION 3. Subchapter H, Chapter 212, Local Government
278	278	Code, as added by this Act, applies only to a plan application filed
279	279	on or after January 1, 2024.
280	280	SECTION 4. This Act takes effect immediately if it receives
281	281	a vote of two-thirds of all the members elected to each house, as
282	282	provided by Section 39, Article III, Texas Constitution. If this
283	283	Act does not receive the vote necessary for immediate effect, this
284	284	Act takes effect September 1, 2023.
285	285	______________________________ ______________________________
286	286	President of the Senate Speaker of the House
287	287	I certify that H.B. No. 1526 was passed by the House on April
288	288	13, 2023, by the following vote: Yeas 119, Nays 24, 1 present, not
289	289	voting.
290	290	______________________________
291	291	Chief Clerk of the House
292	292	I certify that H.B. No. 1526 was passed by the Senate on May
293	293	21, 2023, by the following vote: Yeas 22, Nays 9.
294	294	______________________________
295	295	Secretary of the Senate
296	296	APPROVED: _____________________
297	297	Date
298	298	_____________________
299	299	Governor