By: Bell of Kaufman	H.B. No. 4582

	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, 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 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;
	and
	(3)  costs to connect to existing infrastructure.
	Sec. 396.004.  NOTICE OF REIMBURSEMENT. (a) A developer
	eligible under Section 396.003 must provide written notice of
	reimbursement under this chapter 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 shall 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 entitled
	to 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 receives notice under
	Section 396.004 shall pay the initial reimbursement payment not
	later than the 90th day after the date the municipality or county
	receives the notice.
	Sec. 396.006.  ANNUAL REPORT OF REIMBURSABLE COSTS. A
	developer that provided notice under Section 396.004 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
	an attainable housing development project initiated on or after the
	effective date of this Act.
	SECTION 3.  This Act takes effect September 1, 2025.