HB4582 - Relating to reimbursement of infrastructure costs incurred by a developer of certain housing developments by certain municipalities and counties.

  89R23639 DRS-F     By: Bell of Kaufman, Capriglione, Button, H.B. No. 4582       Bumgarner, Plesa, et al.       A BILL TO BE ENTITLED   AN ACT   relating to reimbursement of infrastructure costs incurred by a   developer of certain 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.           Sec.   396.002.     APPLICABILITY OF CHAPTER. This chapter   applies only to:                 (1)     a county with a population greater than 2.5   million but less than 4 million;                 (2)     a county with a population greater than 190,000   that is adjacent to a county described by Subdivision (1); and                 (3)     a municipality wholly or partly located in a   county described by Subdivision (1) or (2).           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, 2025.