THE HOME BUILDER
April 2025
Page Two
The HomeFront Government Affairs News and Info
David Lehde Director of Government Affairs
Dallas BA Offers Support for Priority Legislation in Austin
Priority legislation is being con- sidered in the Texas Legislature that seeks to provide transparency, and rea- sonable notice and hearing timelines, as well as requiring that a sound major- ity vote of a governing authority be af- firmed in order to impose a residential development and building moratorium or adopt or increase impact fees. Senate Bill 1882 addresses mora- toriums, while Senate Bill 1883 is focused on impact fees. Dallas BA members and staff made their way to Austin on March 24, and again on March 27, joining members for other local HBAs and staff from the Texas Association of Builders in offering testimony before legislative committees in the Senate and House, respectively. Moratoriums are draconian mea- sures that not only prevent property owners from exercising their rights to use their land but also drive-up housing costs. Stalling the residential development process brings additional carrying costs and liabilities that in- crease the final price of a home. Impact Fees also have a signifi - cant impact on the ability of families to afford a home. When considering that $20,000 in impact fees, which is not uncommon per home, can actually cost the home buyer more than $45,000 when consid- ering the cost to finance the difference in the fee from the time of pulling a permit to closing of the house, along with the interest paid over the life of a 30-year mortgage. Dallas BA members and staff testified before the Senate Committee on Local Government on March 24. Ryan Joyce of Michael Joyce Properties spoke on how moratoriums can impact residential development, as well as property owners planning for
their future. Frank Murphy of Wynne/ Jackson spoke on the impact fee pro- cess and the need for transparency. Dallas BA's David Lehde testified on how both bills can benefit housing affordability. SB 1882 requires cities to provide more reasonable notice and opportuni- ties for input from citizens and stake- holders before going to the extreme choice of adopting a moratorium, an action that should only be used in times of necessity and emergency. The proposed time offers the ability to seek clarifications on what is presented for justification of a moratorium. Under the current statute, questions or the need for clarification can go unanswered before a temporary moratorium automatically takes effect. This legislation also specifies expiration limits on moratoriums and requires that a plan be provided to address purported shortages or public utility needs before a moratorium can be extended, both being provisions that state statute already affords the com - mercial development sector. This would protect property owners from open-ended moratoriums that can and have occurred under the current process. SB 1883 also seeks more trans- parency in the review and adoption process of impact fees. Through better public notice, along with reasonable timelines for publication of a capital improvements plan and land use study, SB 1883 al- lows for more thoughtful input as well as the opportunity for both municipali- ties and stakeholders to be assured that projects and calculations related to the imposition of impact fees are actually proportional to new development, as well as considerate of housing afford - ability.
SB 1883 also provides a reason- able timeline before fees can increase. Both SB 1882 and SB 1883 call for a sound majority vote by the governing authority, which is only fair given the significant increase impact fees and especially moratoriums, can have on home prices. Both also recognize that residen- tial developments can begin planning years before a plat is filed, this includes
purchase of the land and the process to underwrite for financing. Sudden halts in project development and increases in fees can affect the ability to provide the needed homes. In a hearing before the House Committee on Land and Resource Management, held on March 27, Dallas BA’s David Lehde testified in support of House Bill 2559, the companion legislation for SB 1882.
The Home Builder is published monthly by the Dallas Builders Association at 5816 W. Plano Pkwy., Plano, Texas 75093. Telephone 972-931-4840. BARCIE VILCHES, Editor
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