2 | 4 | | |
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3 | 5 | | |
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4 | 6 | | A BILL TO BE ENTITLED |
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5 | 7 | | AN ACT |
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6 | 8 | | relating to reimbursement of infrastructure costs incurred by a |
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7 | 9 | | developer of certain housing developments by certain |
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8 | 10 | | municipalities and counties. |
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9 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 12 | | SECTION 1. Subtitle C, Title 12, Local Government Code, is |
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11 | 13 | | amended by adding Chapter 396 to read as follows: |
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12 | 14 | | CHAPTER 396. ATTAINABLE HOUSING DEVELOPMENT INFRASTRUCTURE FOR |
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13 | 15 | | CERTAIN MUNICIPALITIES AND COUNTIES |
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14 | 16 | | Sec. 396.001. DEFINITIONS. In this chapter: |
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15 | 17 | | (1) "Attainable housing development" means a |
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16 | 18 | | residential development consisting of at least seven acres that is |
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17 | 19 | | developed or renovated to provide at least 50 single-family offsite |
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18 | 20 | | residences. |
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19 | 21 | | (2) "Infrastructure" means: |
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20 | 22 | | (A) a facility for water, wastewater, |
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21 | 23 | | electricity, or another utility; and |
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22 | 24 | | (B) a street, road, highway, or bridge. |
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23 | 25 | | (3) "Single-family offsite residence" means a housing |
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24 | 26 | | unit governed by Chapter 1201, Occupations Code. |
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25 | 27 | | Sec. 396.002. APPLICABILITY OF CHAPTER. This chapter |
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26 | 28 | | applies only to: |
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27 | 29 | | (1) a county with a population greater than 2.5 |
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28 | 30 | | million but less than 4 million; |
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29 | 31 | | (2) a county with a population greater than 190,000 |
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30 | 32 | | that is adjacent to a county described by Subdivision (1); and |
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31 | 33 | | (3) a municipality wholly or partly located in a |
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32 | 34 | | county described by Subdivision (1) or (2). |
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33 | 35 | | Sec. 396.003. ELIGIBILITY FOR INFRASTRUCTURE COST |
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34 | 36 | | REIMBURSEMENT. (a) A developer is eligible for reimbursement |
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35 | 37 | | under this chapter for a cost incurred to build infrastructure |
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36 | 38 | | related to an attainable housing development if: |
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37 | 39 | | (1) the developer directly or indirectly incurred the |
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38 | 40 | | cost of building or financing the construction, maintenance, or |
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39 | 41 | | renovation of the infrastructure or connection of the |
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40 | 42 | | infrastructure to the development; |
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41 | 43 | | (2) a municipality or county would have built or |
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42 | 44 | | financed the infrastructure had the infrastructure not been built |
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43 | 45 | | by the developer; |
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44 | 46 | | (3) at least 80 percent of the lots in the development |
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45 | 47 | | accommodate a single-family offsite residence that is at least |
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46 | 48 | | 1,000 square feet in area; |
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47 | 49 | | (4) the development is connected to: |
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48 | 50 | | (A) a public water system; and |
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49 | 51 | | (B) a sewer system as defined by Section 26.001, |
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50 | 52 | | Water Code; |
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51 | 53 | | (5) the development is governed by a property owners' |
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52 | 54 | | association agreement or land lease agreement that includes |
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53 | 55 | | restrictive covenants relating to the maintenance of the common |
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54 | 56 | | areas and grounds of the development and enforcement of community |
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55 | 57 | | regulations; |
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56 | 58 | | (6) the developer offers units in the development to |
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57 | 59 | | veterans or active duty members of the military, first responders, |
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58 | 60 | | or employees of a school district; and |
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59 | 61 | | (7) the developer complies with Federal Housing |
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60 | 62 | | Administration tenant site lease protections required by: |
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61 | 63 | | (A) a municipality in which the development is |
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62 | 64 | | wholly or partly located; and |
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63 | 65 | | (B) a county in which the development is located |
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64 | 66 | | if the development is wholly or partly located in the |
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65 | 67 | | unincorporated area of the county. |
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66 | 68 | | (b) Costs that may be reimbursed under this chapter include: |
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67 | 69 | | (1) financing costs; |
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68 | 70 | | (2) installation, maintenance, or renovation costs; |
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69 | 71 | | and |
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70 | 72 | | (3) costs to connect to existing infrastructure. |
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71 | 73 | | Sec. 396.004. NOTICE OF REIMBURSEMENT. (a) A developer |
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72 | 74 | | eligible under Section 396.003 must provide written notice of |
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73 | 75 | | reimbursement under this chapter to: |
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74 | 76 | | (1) a municipality in which the development is wholly |
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75 | 77 | | or partly located; and |
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76 | 78 | | (2) a county in which the development is located if the |
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77 | 79 | | development is wholly or partly located in the unincorporated area |
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78 | 80 | | of the county. |
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79 | 81 | | (b) The notice must include: |
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80 | 82 | | (1) an itemized list of the infrastructure costs |
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81 | 83 | | described by Section 396.003 incurred by the developer; and |
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82 | 84 | | (2) proof of payment for each infrastructure cost |
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83 | 85 | | incurred by the developer. |
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84 | 86 | | Sec. 396.005. REIMBURSEMENT OF INFRASTRUCTURE COSTS. (a) |
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85 | 87 | | A municipality or county receiving notice under Section 396.004 |
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86 | 88 | | from a developer eligible under Section 396.003 shall reimburse the |
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87 | 89 | | developer's infrastructure costs described by Section 396.003 in |
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88 | 90 | | accordance with this section. |
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89 | 91 | | (b) The amount of reimbursement paid to a developer under |
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90 | 92 | | this chapter in a tax year may not exceed the amount of property |
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91 | 93 | | taxes assessed by the municipality or county and paid by the |
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92 | 94 | | developer for that tax year on the property on which the attainable |
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93 | 95 | | housing development for which the developer seeks reimbursement is |
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94 | 96 | | located. A county's liability for reimbursement under this chapter |
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95 | 97 | | is limited to the property taxes assessed by the county on and paid |
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96 | 98 | | by the developer for the property located in the unincorporated |
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97 | 99 | | area of the county. |
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98 | 100 | | (c) A developer eligible under Section 396.003 is entitled |
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99 | 101 | | to reimbursement under this chapter until the earlier of: |
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100 | 102 | | (1) the date on which the total reimbursement paid by a |
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101 | 103 | | municipality or county under this chapter is equal to the total |
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102 | 104 | | infrastructure costs described by Section 396.003 incurred by the |
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103 | 105 | | developer for the attainable housing development; or |
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104 | 106 | | (2) the 10th anniversary of the date the developer |
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105 | 107 | | first receives a reimbursement payment under this chapter. |
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106 | 108 | | (d) A municipality or county that receives notice under |
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107 | 109 | | Section 396.004 shall pay the initial reimbursement payment not |
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108 | 110 | | later than the 90th day after the date the municipality or county |
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109 | 111 | | receives the notice. |
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110 | 112 | | Sec. 396.006. ANNUAL REPORT OF REIMBURSABLE COSTS. A |
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111 | 113 | | developer that provided notice under Section 396.004 shall submit |
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112 | 114 | | an annual report to the municipality or county from which the |
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113 | 115 | | developer receives reimbursement that includes: |
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114 | 116 | | (1) an itemized list of the infrastructure costs |
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115 | 117 | | incurred by the developer during that year; and |
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116 | 118 | | (2) proof of payment for each infrastructure cost |
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117 | 119 | | incurred by the developer during that year. |
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118 | 120 | | SECTION 2. The changes in law made by this Act apply only to |
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119 | 121 | | an attainable housing development project initiated on or after the |
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120 | 122 | | effective date of this Act. |
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121 | 123 | | SECTION 3. This Act takes effect September 1, 2025. |
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