Raymond Housing Bill Repays Developers With Up To 10 Years Of Taxes

The text as introduced · 967 words

90R2995 DRS-D

By: Raymond
H.B. No. 338

A BILL TO BE ENTITLED

AN ACT

relating to reimbursement of infrastructure costs incurred by a

developer of attainable housing developments by certain

municipalities and counties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle C, Title 12, Local Government Code, is

amended by adding Chapter 396 to read as follows:

CHAPTER 396. ATTAINABLE HOUSING DEVELOPMENT INFRASTRUCTURE FOR

CERTAIN MUNICIPALITIES AND COUNTIES

Sec. 396.001. DEFINITIONS. In this chapter:

(1) "Attainable housing development" means a

residential development consisting of at least seven acres that is

developed or renovated to provide at least 50 single-family offsite

residences.

(2) "Infrastructure" means:

(A) a facility for water, wastewater,

electricity, broadband Internet service, or another utility; and

(B) a street, road, highway, or bridge.

(3) "Single-family offsite residence" means a housing

unit governed by Chapter 1201, Occupations Code.

(4) "Tax year" has the meaning assigned by Section

1.04, Tax Code.

Sec. 396.002. APPLICABILITY. This chapter applies only to:

(1) a county with a population of 2.5 million or more

but less than 4 million;

(2) a county with a population of 190,000 or more that

is adjacent to a county described by Subdivision (1);

(3) a county that:

(A) is adjacent to the Texas-Mexico border;

(B) has a population of less than 300,000; and

(C) contains a municipality with a population of

200,000 or more; and

(4) a municipality wholly or partly located in a

county described by Subdivision (1), (2), or (3).

Sec. 396.003. ELIGIBILITY FOR INFRASTRUCTURE COST

REIMBURSEMENT. (a) A developer is eligible for reimbursement

under this chapter for a cost incurred to build infrastructure

related to an attainable housing development if:

(1) the developer directly or indirectly incurred the

cost of building or financing the construction, maintenance, or

renovation of the infrastructure or connection of the

infrastructure to the development;

(2) a municipality or county would have built or

financed the infrastructure had the infrastructure not been built

by the developer;

(3) at least 80 percent of the lots in the development

accommodate a single-family offsite residence that is at least

1,000 square feet and not more than 2,500 square feet in area;

(4) the development is connected to:

(A) a public water system; and

(B) a sewer system as defined by Section 26.001,

Water Code;

(5) the development is governed by a property owners'

association agreement or land lease agreement that includes

restrictive covenants relating to the maintenance of the common

areas and grounds of the development and enforcement of community

regulations;

(6) the developer offers units in the development to

veterans or active duty members of the military, first responders,

or employees of a school district; and

(7) the developer complies with Federal Housing

Administration tenant site lease protections required by:

(A) a municipality in which the development is

wholly or partly located; and

(B) a county in which the development is located

if the development is wholly or partly located in the

unincorporated area of the county.

(b) Costs that may be reimbursed under this chapter include:

(1) financing costs;

(2) installation, maintenance, or renovation costs,

including supplies and labor; and

(3) costs to connect to existing infrastructure.

Sec. 396.004. NOTICE OF REIMBURSEMENT. (a) A developer

eligible under Section 396.003 may request reimbursement under this

chapter by providing written notice to:

(1) a municipality in which the development is wholly

or partly located; and

(2) a county in which the development is located if the

development is wholly or partly located in the unincorporated area

of the county.

(b) The notice must include:

(1) an itemized list of the infrastructure costs

described by Section 396.003 incurred by the developer; and

(2) proof of payment for each infrastructure cost

incurred by the developer.

Sec. 396.005. REIMBURSEMENT OF INFRASTRUCTURE COSTS. (a)

A municipality or county receiving notice under Section 396.004

from a developer eligible under Section 396.003 may reimburse the

developer's infrastructure costs described by Section 396.003 in

accordance with this section.

(b) The amount of reimbursement paid to a developer under

this chapter in a tax year may not exceed the amount of property

taxes assessed by the municipality or county and paid by the

developer for that tax year on the property on which the attainable

housing development for which the developer seeks reimbursement is

located. A county's liability for reimbursement under this chapter

is limited to the property taxes assessed by the county on and paid

by the developer for the property located in the unincorporated

area of the county.

(c) A developer eligible under Section 396.003 is eligible

for reimbursement under this chapter until the earlier of:

(1) the date on which the total reimbursement paid by a

municipality or county under this chapter is equal to the total

infrastructure costs described by Section 396.003 incurred by the

developer for the attainable housing development; or

(2) the 10th anniversary of the date the developer

first receives a reimbursement payment under this chapter.

(d) A municipality or county that reimburses a developer

under this section must pay the initial reimbursement payment not

later than the 90th day after the date the municipality or county

receives the notice under Section 396.004.

Sec. 396.006. ANNUAL REPORT OF REIMBURSABLE COSTS. A

developer that receives reimbursement under Section 396.005 shall

submit an annual report to the municipality or county from which the

developer receives reimbursement that includes:

(1) an itemized list of the infrastructure costs

incurred by the developer during that year; and

(2) proof of payment for each infrastructure cost

incurred by the developer during that year.

SECTION 2. The changes in law made by this Act apply only to

costs incurred by an attainable housing development project on or

after the effective date of this Act.

SECTION 3. This Act takes effect September 1, 2027.