Texas House Bill HB2225

Texas 2025 - 89th Regular

• Filed: 1/29/25
• Out of House Committee: 4/24/25

Caption

Relating to the approval of land use assumptions, capital improvement plans, and impact fees.

Impact

One significant aspect of HB 2225 is the introduction of a five-year limitation on increasing impact fees. Political subdivisions are required to secure a three-fourths majority vote for the approval of any new impact fees. This aims to create a more predictable financial environment for developers and the community, while also reducing potential financial burdens on residents. The provisions pertaining to public hearings ensure that updates on land use assumptions and capital improvement plans involve adequate public engagement, thus promoting local governance accountability.

Summary

House Bill 2225 focuses on amendments to the Local Government Code regarding the approval of land use assumptions, capital improvement plans, and the imposition of impact fees. The bill mandates that political subdivisions must enhance public access to information related to land use and capital improvement plans prior to any public hearings. This transparency is intended to allow stakeholders to better understand and participate in the planning processes that affect local communities.

Sentiment

The general sentiment surrounding HB 2225 is mixed. Proponents argue that the bill supports economic development by streamlining the process for land use and ensures that necessary improvements are publicly funded through appropriate impact fees. Critics, however, express concern about the imposition of such fees and the potential for inequitable impacts on lower-income communities, particularly if development costs are passed down to consumers in the form of higher prices. Additionally, there is apprehension about the bill’s effectiveness in genuinely increasing transparency and community involvement.

Contention

Notable points of contention include the adequacy of the requirements for public hearings and the representation of local development interests on advisory committees. There is debate over whether the bill goes far enough to ensure community engagement or if it primarily benefits developers and real estate interests by providing easier access to impose fees. Furthermore, the five-year freeze on increasing impact fees is seen as both a protective measure for financial planning and a possible hindrance to local governments seeking to adapt to growth demands.

Texas Constitutional Statutes Affected

Local Government Code

• Chapter 395. Financing Capital Improvements Required By New Development In Municipalities, Counties, And Certain Other Local Governments
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