THE HOME BUILDER
September 2025
Page Two
The HomeFront Government Affairs News and Info
David Lehde Director of Government Affairs
Builder Supported Legislation Brings Better Transparency on Sept. 1
Legislation that brings better transparency, disclosure, and guard- rails to both impact fees will become effective on Sept. 1. Senate Bill 1883, adopted in the 89th regular session and signed into law by the Governor in early sum - mer, will help provide builders and stakeholders with time and informa- tion needed so that can understand the complicated process used to enact and amend impact fee ordinances, as well as participate and offer needed insight as early as possible. SB 1883 improves the public notice requirements by requiring that a political subdivision provide notice of land use assumptions (LUA) and capital improvement plans (CIP). The two tend to be rather long documents and contain calculations of
engineering and other costs that take considerable time to review. With more time to review an LUA and CIP, our members have an increased opportu - nity to offer critical input. SB 1883 also provides the oppor - tunity for input from those with stron- ger knowledge of the impact of impact fees via the requirement that 50% of the members of a capital improvement advisory committee (CIAC) be repre - sentatives of the real estate, develop - ment and building industry. As the new state law requires that all political subdivisions make use of this defined committee and makes it an independent committee, removing the use of a Planning and Zoning commit- tee, it is the CIAC that will first review and make the recommendation of fee levels prior to a political subdivision’s
government body beginning its official discussion. An independent CIAC structure increases the likelihood that the impact fee proposals are given due diligence. The new law will also install further guardrails to the process. The adoption of new or amended impact fees will require a simple majority of two-thirds of the members of the gov - erning body. There are also additional provisions that govern how frequently an entity may amend their impact fees. SB 1883 also provides for a long overdue requirement that a political subdivision conduct an independent audit for their existing impact fee collections, management, and expen- ditures before adopting an increase or a new impact fee for a service area that was under a previous impact fee.
Some municipalities have rushed to increase their impact fees ahead of the effective date of the new law. However, they will still face the audit requirements when considering up- dates in the future. It is not uncommon to see impact fees totaling $20,000 or more per rooftop in area municipalities. When considering the cost to finance the difference in the fee, and interest paid over the life of a home’s mortgage, the true cost of some impact fees per home can be more than $70,000 per home and cost more than $200 to the monthly home payment. Given the severity of the impact
these types of fees can have on Texas families and their ability to afford a home, the provisions in SB 1883 are only fair. Members take aim at HOMEPAC Shootout presented by BGE, Inc.
The Main Street Lumber team claimed second place.
Top Shooter at the Aug. 27 clay shoot presented by BGE, Inc. was Brett Eubank, shown with David Lehde and Gena Godinez, Dallas BA staff. The Association’s clay shoot, benefiting advocacy, pro - vided a fun opportunity for mem- bers to enjoy the outdoors and network with others in the indus- try. This year’s field marked the highest turnout in the four years of the Shootout.
The team from Dixon Erosion Control earned first place honors.
SHOOTOUT PAC OF GREATER DALLAS HOME
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