Texas 2023 - 88th Regular

Texas Senate Bill SB558 Compare Versions

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1	1	By: Hughes S.B. No. 558
2	2	(In the Senate - Filed January 23, 2023; February 17, 2023,
3	3	read first time and referred to Committee on Natural Resources &
4	4	Economic Development; April 11, 2023, reported adversely, with
5	5	favorable Committee Substitute by the following vote: Yeas 6, Nays 2;
6	6	April 11, 2023, sent to printer.)
7	7	Click here to see the committee vote
8	8	COMMITTEE SUBSTITUTE FOR S.B. No. 558 By: Hughes
9	9
10	10
11	11	A BILL TO BE ENTITLED
12	12	AN ACT
13	13	relating to parkland dedication for multifamily, hotel, and motel
14	14	property development by certain municipalities; authorizing a fee.
15	15	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	16	SECTION 1. Chapter 212, Local Government Code, is amended
17	17	by adding Subchapter H to read as follows:
18	18	SUBCHAPTER H. MULTIFAMILY, HOTEL, AND MOTEL PARKLAND DEDICATION:
19	19	MUNICIPALITIES WITH POPULATION OF MORE THAN 800,000
20	20	Sec. 212.201. DEFINITIONS. In this subchapter:
21	21	(1) "Affordable dwelling unit" means a residential
22	22	unit offered at a below market rate for rent or sale under a
23	23	municipal, county, state, or federal program.
24	24	(2) "Consumer price index" means the Consumer Price
25	25	Index for All Urban Consumers (CPI-U), U.S. City Average, published
26	26	by the Bureau of Labor Statistics of the United States Department of
27	27	Labor or its successor in function.
28	28	(3) "Improvement" and "market value" have the meanings
29	29	assigned by Section 1.04, Tax Code.
30	30	(4) "Land value" means the market value of land per
31	31	acre, not including an improvement to the land.
32	32	(5) "Median family income" means the United States
33	33	Census Bureau's most recent American Community Survey's five-year
34	34	estimate of median family income for all families within the
35	35	applicable municipality.
36	36	(6) "Multifamily unit" means a residential unit other
37	37	than a detached single-family or two-family dwelling.
38	38	(7) "Parkland" means an area that is designated as a
39	39	park for the purpose of recreational activity. The term includes an
40	40	open space, a recreational facility, and a trail.
41	41	(8) "Parkland dedication" means the fee simple
42	42	transfer of land or the dedication of an easement to a municipality
43	43	for nonexclusive use as parkland.
44	44	(9) "Parkland dedication fee" means a fee imposed by a
45	45	municipality on a landowner for the acquisition, development,
46	46	repair, and maintenance of parkland.
47	47	(10) "Plan" means a subdivision development plan,
48	48	subdivision plan, site plan, land development plan, and site
49	49	development plan each proposing the development of multifamily,
50	50	hotel, or motel units.
51	51	Sec. 212.202. APPLICABILITY. This subchapter applies only
52	52	to a municipality with a population of more than 800,000.
53	53	Sec. 212.203. CONSTRUCTION. This subchapter may not be
54	54	construed to prohibit a municipality from requiring by ordinance a
55	55	landowner to dedicate a portion of the landowner's property for
56	56	parkland use, impose a parkland dedication fee, or both require the
57	57	dedication and impose the fee for the development of single-family
58	58	or two-family uses.
59	59	Sec. 212.204. EXCLUSIVE AUTHORITY; LIMITATION. (a)
60	60	Notwithstanding any other law, a municipality has exclusive
61	61	authority within its boundaries to require the dedication of
62	62	parkland, impose a parkland dedication fee, or both require the
63	63	dedication and impose the fee. A municipality may not delegate that
64	64	authority to another political subdivision.
65	65	(b) A municipality may only exercise its authority under
66	66	this section through a plan application in accordance with this
67	67	subchapter.
68	68	Sec. 212.205. PARKLAND DEDICATION, FEE, OR COMBINATION.
69	69	(a) A municipality may require a landowner to dedicate a portion of
70	70	the landowner's property for parkland use, impose a parkland
71	71	dedication fee, or both require the dedication and impose the fee
72	72	under a plan application filed under this subchapter by:
73	73	(1) paying a fee set in accordance with Section
74	74	212.210(b) or 212.211(b), as applicable; or
75	75	(2) dedicating a portion up to the maximum size
76	76	authorized under Section 212.208 and paying a reduced fee set in
77	77	accordance with Section 212.210(d) or 212.211(c), as applicable.
78	78	(b) A municipality may allow a landowner to elect a parkland
79	79	dedication, a parkland dedication fee, or a dedication and fee
80	80	under Subsection (a).
81	81	Sec. 212.206. REQUEST FOR PARKLAND DEDICATION
82	82	DETERMINATION. (a) A landowner may, at the landowner's sole
83	83	discretion, make a written request to a municipality that the
84	84	municipality make a timely determination of the dedication amount
85	85	the municipality will impose under the municipality's parkland
86	86	dedication requirements as applied to the landowner's property
87	87	being considered for development.
88	88	(b) A municipality may make a reasonable written request to
89	89	the landowner for additional information that is:
90	90	(1) publicly and readily available; and
91	91	(2) necessary to provide a determination under this
92	92	section.
93	93	(c) A municipality shall respond in writing to a request
94	94	made under Subsection (a) not later than the 30th day after the date
95	95	the municipality receives a completed request. If the municipality
96	96	fails to respond in accordance with this subsection, the
97	97	municipality may not require a parkland dedication as a condition
98	98	of approval of a proposed plan or application for property that is
99	99	the subject of the request.
100	100	(d) A parkland dedication determination issued under this
101	101	section:
102	102	(1) is a legally binding determination of the amount
103	103	of the landowner's parkland dedication for the property that is the
104	104	subject of the determination; and
105	105	(2) is applicable to the property that is the subject
106	106	of the determination for a period that is the lesser of:
107	107	(A) two years; or
108	108	(B) the time between the date the determination
109	109	is issued and the date a plan application is filed that uses or
110	110	relies on the determination.
111	111	(e) A landowner may release in writing a municipality from a
112	112	determination made under this section.
113	113	Sec. 212.207. PARKLAND DEDICATION AUTHORITY. (a) A
114	114	municipality may not require a parkland dedication, impose a
115	115	parkland dedication fee, or both require the dedication and impose
116	116	the fee for any commercial use. For the purpose of this section, a
117	117	commercial use does not include a multifamily, hotel, or motel use.
118	118	(b) If a plan application submitted to a municipality
119	119	proposes development of the land subject to the application that
120	120	includes both multifamily, hotel, or motel and commercial uses, the
121	121	municipality shall determine the amount of a parkland dedication
122	122	based only on the pro rata portion of the land proposed for
123	123	multifamily, hotel, or motel use.
124	124	Sec. 212.208. LIMITATION ON PARKLAND DEDICATION AMOUNT. A
125	125	municipality may not require a landowner to dedicate as parkland
126	126	under this subchapter more than 10 percent, without adjustment or
127	127	disqualification for impairment, of the gross site area of the land
128	128	subject to a plan application.
129	129	Sec. 212.209. INITIAL REQUIREMENTS FOR DETERMINING FEES.
130	130	(a) For purposes of determining the amount of a fee imposed under
131	131	this section, the governing body of a municipality, after providing
132	132	at least 30 days' public notice and holding a public hearing, shall
133	133	by official action designate all territory within its municipal
134	134	boundaries as a suburban area, urban area, or central business
135	135	district area. The governing body may use the same designation for
136	136	multiple areas in the municipality. The governing body may amend a
137	137	designation only during the adoption or amendment of a municipal
138	138	comprehensive plan under Chapter 213.
139	139	(b) Not later than the 10th day after the date the
140	140	municipality designates its territory under Subsection (a), the
141	141	municipality shall notify each appraisal district in which the
142	142	municipality is wholly or partly located of the designation.
143	143	(c) Once every 10 years, each appraisal district in which
144	144	the municipality is wholly or partly located shall calculate and
145	145	provide to the municipality the average land value for each area or
146	146	portion of an area designated by the municipality under Subsection
147	147	(a) that is located in the district.
148	148	(d) If multiple appraisal districts calculate an average
149	149	land value for different portions of an area designated under
150	150	Subsection (a), the municipality shall determine the area's total
151	151	average land value by:
152	152	(1) multiplying each district's calculated value for
153	153	the portion located in the district by the percentage, expressed as
154	154	a fraction, that the portion is to the total area; and
155	155	(2) adding the resulting amounts.
156	156	(e) In each year other than the year in which an appraisal
157	157	district calculates average land values under Subsection (c), a
158	158	municipality shall calculate the average land value for each area
159	159	designated under Subsection (a) by multiplying the previous year's
160	160	average land value for the area by one plus the average consumer
161	161	price index for each month of the previous year.
162	162	(f) A municipality shall set the municipality's dwelling
163	163	unit factor, which reflects the number of parkland acres for each
164	164	dwelling unit proposed by a plan application. The factor may not be
165	165	more than:
166	166	(1) .005 for multifamily units; and
167	167	(2) .004 for rooms in a hotel or motel ordinarily used
168	168	for sleeping.
169	169	(g) A municipality shall set the municipality's density
170	170	factor, which reflects the diminishing expectation of parkland
171	171	acres per dwelling unit in increasingly dense urban environments,
172	172	for each area designated by the municipality under Subsection (a).
173	173	The density factor may not be less than:
174	174	(1) one for the suburban area;
175	175	(2) four for the urban area; and
176	176	(3) 40 for the central business district area.
177	177	Sec. 212.210. GENERAL REQUIREMENTS FOR CALCULATION OF FEES.
178	178	(a) This section applies only to a municipality to which Section
179	179	212.211 does not apply.
180	180	(b) A municipality shall determine the amount of a fee
181	181	imposed under Section 212.205(a)(1) for land subject to a plan
182	182	application by:
183	183	(1) adding, as appropriate:
184	184	(A) the product of the number of multifamily
185	185	units proposed by the plan by the dwelling unit factor prescribed by
186	186	Section 212.209(f)(1); and
187	187	(B) the product of the number of hotel and motel
188	188	rooms ordinarily used for sleeping proposed by the plan by the
189	189	dwelling unit factor prescribed by Section 212.209(f)(2);
190	190	(2) multiplying the sum calculated under Subdivision
191	191	(1) by the average land value for the area in which the land is
192	192	located; and
193	193	(3) dividing the product calculated under Subdivision
194	194	(2) by the applicable density factor.
195	195	(c) For purposes of Subsection (b)(1), a municipality shall
196	196	exclude from a plan application the number of affordable dwelling
197	197	units proposed by the plan.
198	198	(d) A municipality shall determine the amount of a fee
199	199	imposed under Section 212.205(a)(2) for land subject to a plan
200	200	application by:
201	201	(1) calculating the amount of the fee for the land
202	202	under Subsection (b); and
203	203	(2) subtracting from the amount calculated under
204	204	Subdivision (1) the product of the land value applicable to the land
205	205	and the number of acres dedicated.
206	206	(e) If a calculation made under Subsection (d) results in a
207	207	negative number, the applicable landowner is entitled to receive
208	208	from the applicable municipality the amount equal to the positive
209	209	difference between the calculated amount and zero. The
210	210	municipality shall pay that amount to the landowner at the time of
211	211	transfer of fee simple title or the recording of the easement.
212	212	Sec. 212.211. REQUIREMENTS CALCULATION OF FEES FOR
213	213	MUNICIPALITIES WITH LOW FEES. (a) This section applies only to a
214	214	municipality that after August 31, 2023, requires a parkland
215	215	dedication fee for a multifamily, hotel, or motel development in an
216	216	amount, calculated on a per dwelling unit basis, not greater than
217	217	two percent of the median family income.
218	218	(b) A municipality to which this section applies may set a
219	219	parkland dedication fee. If the municipality elects to set the fee
220	220	in an amount greater than two percent of the municipality's median
221	221	family income:
222	222	(1) this section no longer applies to the
223	223	municipality; and
224	224	(2) the municipality must set the fee in accordance
225	225	with Section 212.210.
226	226	(c) A municipality shall determine the amount of a fee
227	227	imposed under Section 212.205(a)(2) for land subject to a plan
228	228	application by subtracting from the amount of the fee set under
229	229	Subsection (b) the product of the land value applicable to the land
230	230	and the number of acres dedicated.
231	231	(d) If a calculation made under Subsection (c) results in a
232	232	negative number, the applicable landowner is entitled to receive
233	233	from the applicable municipality the amount equal to the positive
234	234	difference between the calculated amount and zero. The
235	235	municipality shall pay that amount to the landowner at the time of
236	236	transfer of fee simple title or the recording of the easement.
237	237	Sec. 212.212. COLLECTION OF FEES. A municipality shall
238	238	provide a landowner a written determination of fees owed under this
239	239	subchapter before approving a plan application but may only collect
240	240	a fee authorized under this subchapter as a precondition to the
241	241	issuance of a final certificate of occupancy.
242	242	Sec. 212.213. APPEAL. (a) A landowner may appeal a
243	243	determination made by a municipal department, board, or commission
244	244	regarding any element of a parkland dedication requirement,
245	245	including amount, orientation, or suitability, as that element
246	246	applies to the landowner's property, to the municipal planning
247	247	commission or, if the municipality has no planning commission, the
248	248	governing body of the municipality. The appeal must include a
249	249	requested adjudication of the issue in controversy.
250	250	(b) A landowner may appeal a municipal planning
251	251	commission's determination under Subsection (a) to the governing
252	252	body of the municipality.
253	253	(c) In an appeal under this section, a municipal planning
254	254	commission or governing body of a municipality may uphold, reverse,
255	255	or modify a parkland dedication requirement as applied to the
256	256	landowner making the appeal.
257	257	(d) A municipal planning commission or governing body of a
258	258	municipality shall uphold, reverse, or modify a parkland dedication
259	259	requirement that is the subject of an appeal not later than the 60th
260	260	day after the date the appeal is filed with the commission or
261	261	governing body. If the commission or governing body fails to act in
262	262	accordance with this subsection, the parkland dedication
263	263	requirement is considered resolved in favor of the landowner's
264	264	requested adjudication.
265	265	SECTION 2. (a) Not later than December 1, 2023, each
266	266	municipality to which Subchapter H, Chapter 212, Local Government
267	267	Code, as added by this Act, applies shall:
268	268	(1) effective January 1, 2024:
269	269	(A) designate the areas of the municipality as
270	270	required by Section 212.209(a), Local Government Code, as added by
271	271	this Act; and
272	272	(B) set the municipality's dwelling unit and
273	273	density factors, as required by Sections 212.209(f) and (g), Local
274	274	Government Code, as added by this Act; and
275	275	(2) provide to each appraisal district in which the
276	276	municipality is wholly or partly located the location of each area
277	277	designated under Subdivision (1)(A) of this subsection in a manner
278	278	sufficient to allow the appraisal district to make the calculations
279	279	required by Subsection (b) of this section.
280	280	(b) Not later than January 1, 2024, each appraisal district
281	281	that appraises property located in a municipality described by
282	282	Subsection (a) of this section shall calculate and provide to the
283	283	municipality the average land values as required by Section
284	284	212.209(c), Local Government Code, as added by this Act.
285	285	SECTION 3. Subchapter H, Chapter 212, Local Government
286	286	Code, as added by this Act, applies only to a plan application filed
287	287	on or after January 1, 2024.
288	288	SECTION 4. This Act takes effect immediately if it receives
289	289	a vote of two-thirds of all the members elected to each house, as
290	290	provided by Section 39, Article III, Texas Constitution. If this
291	291	Act does not receive the vote necessary for immediate effect, this
292	292	Act takes effect September 1, 2023.
293	293	* * * * *