85th Recap: Local Government
H.B. 1449 - Relating to prohibiting local governments from imposing certain fees on new construction
This bill prohibits what are called “linkage fees” for new construction imposed by some cities in Texas. These are local fees to new construction that are then used to offset the cost of rent or cost of other local affordable housing programs.
H.B. 1449 contends that the superior state policy towards providing affordable housing is to reduce new construction fees and other burdens to increase the overall housing supply.
This bill has been signed into law and went into effect on May 29, 2017
H.B. 1704 - Relating to the award of court costs and attorney's fees in actions to determine the applicability of certain local government regulations
This bill addresses “vested rights” of developers and builders. The existing law protects a developer’s “grandfathered” rights of the local requirements in place at the time their construction permit is approved. If a city subsequently changes the local requirements, the developer is ensured he or she only need to abide by those in previous existence when their permit was approved.
Recently, a Fourth Circuit Court of Appeals held that a developer contesting a city’s improper action to demand later-in-time local regulations apply to a grandfathered permit did not entitle the developer to the recovery of court costs and attorney’s fees in a successful challenge.
H.B. 1704 makes it clear that attorneys’ fees and court costs awarded to the developer when challenging a city’s improper restriction are allowed in statute.
This new law became effective May 29, 2017.
H.B. 2040 - Relating to the building code standards for new residential construction in the unincorporated area of certain counties
The current law allows for counties to adopt home construction codes and obtain a minimum of three inspections. However, the current law does not allow any enforcement by a county if a builder provides notice that the inspections where done. This left a gap when the home failed inspection, but the notice of the failed inspection was provided to the county. Meaning the county couldn’t instigate any enforcement action for a home that was clearly in violation of the building code.
H.B. 2040 allows for enforcement if the home fails the home inspection to ensure the homes are built to the county adopted code.
It is important to note that both manufactured and modular homes are exempt from the local county building codes as both forms of housing are state and federally preemptive with state and federal building codes. In fact, this bill, which was supported by the Texas homebuilders’ association, would prohibit substandard “no code” homes in counties that can compete unfairly with coded homes such as manufactured or modular homes.
This bill was signed and will go into effect September 1, 2017.
This is one of TMHA's 85th Legislative Session Recap posts. The series includes these additional posts: