THE HOME BUILDER
August 2023
Page Two
The HomeFront Government Affairs News and Info
David Lehde Director of Government Affairs
Some Local, Some State, Some Fun
Denton Expected to Resume Update to Roadway Impact Fees The City of Denton will soon restart the discussion on its roadway impact fees. Builders and developers, as well as those who work with them, should be paying close attention to how this will impact new home con- struction. The roadway fee has not seen its rate change since 2016, when Dallas BA was successful in advocating for those fees to be implemented at a lower rate than studied. It is currently anticipated that the item could be brought before the Council in September. In a process that involved com- mittee review in late 2022, the Denton City Council originally planned to hold its hearings on the Roadway Impact Study and the ensuing fee adoption as early as March of 2023. The hearing was delayed a month and then delayed indefinitely, as coun - cil members voiced their desire for more information regarding what the options before them would mean in both the overall funding of the road - ways listed in the city’s improvements plan, as well the impact on single and multi-family homes that would be as- sessed the fees per rooftop and unit. The 2016 fee was implemented at a rate per rooftop of 20% of the maxi- mum assessable fee allowed. However, that maximum fee has increased from $9,808 for the city-wide average per single family home to $20,538. In meetings held earlier this year, council members were evaluating whether to set the rate actually col- lected per home at 30%, 40%, 50%, or some other percentage of the maxi - mum fee allowed. While that would be a major increase per home, it was not as devas-
tating as the rate of 75% that had been raised in discussion. However, those discussions were under a previous city council and even at just 30% of the maximum, the fee could increase more than $4,000 per rooftop from the 2016 rate. With a maximum of 50%, that fee increase moves north of $8,000, with the assessment being more than $10,000 per home. With significant growth continu - ing in Denton County, it is important that the city’s leaders, including those recently seated council members, not increase fees to a level that would not only price families out of their choice of a home, but also hurt Denton’s abil- ity to be competitive with surrounding areas. Dallas BA Legislative Wrap-Up, presented by StrucSure Home Warranty, Aug. 8 With keeping housing attainable for Texas families in mind, home builders had a highly successful legis - lative session in Austin this year. This effort was spearheaded by the Texas Association of Builders government relations staff and included the work of Dallas BA. Leading this effort was TAB CEO Scott Norman. Scott will be here at the Dallas BA to present a wrap-up of the 88th Texas Legislature and the success our industry had in getting legisla - tion passed … and killed. The Aug. 8 members only event is free but requires registration. Registration can be done under the event listing on the calendar at www.DallasBuilders.org. Among the bills to be discussed will be a Dallas BA and TAB priority bill related to development review and inspection fees and needed changes to both the Residential Claims Liability Act and the Statute of Repose.
Dallas BA was heavily engaged in the effort to advance HB 3492, in co - ordination with TAB. The legislation, which becomes effective on Sept.1 of this year, prohibits municipalities and counties from considering the cost of constructing or improving public infra - structure in determining the amount of the inspection fees. Rather, the municipality or coun- ty must use the actual cost to review a plan or inspect the infrastructure. Furthermore, the legislation requires the governmental entity to calculate what the actual cost is to provide the inspection and provides entities with a method for determining how to calcu - late these costs. Using the methods outlined in the legislation will lead to reduced fees which will ultimately be passed on to future home buyers. The bill was authored by Rep. Lynn Stucky (R) and sponsored in the Senate by Sen. Drew Springer (R). HB 2022 and HB 2024, both by Rep. Jeff Leach (R) and Sen. Phil King (R), were the top priority bills for TAB this year. HB 2022 makes needed changes to the Residential Claims Liability Act (RCLA). The legislation includes statutory language changes to reflect precedent case law, clarifies that li - ability should only apply to actual home defects, allows for follow-up inspections to allow for the repairs, and increases contractor’s deadline to make an offer of repair by 15 days. The bill also prohibits the con- tractual waiver of RCLA provisions. The bill helps return RCLA to its true intent. The law becomes effective on Sept. 1. HB 2024 helps the homeowner by requiring that a written warranty be offered by builders and remodel - ers in order to reduce the Statute of
Repose for latent defects of one and two- family homes or townhouses (of not less than three stories) to a period of six years. If a builder/remodeler provides a written warranty, the statute of repose (the absolute time a builder could be subjected to litigation for construction defects) would be reduced to a lesser number of years. This change brings Texas in line with many of its peer states that have reduced the times in their similar statutes. With two-thirds majority approval, this law is now in effect as of June 9. The Legislative Wrap-Up, pre - sented by StrucSure Home Warranty will dive deeper and will be an inter- esting way to learn more about the advocacy done on your behalf. The Association is excited to present another fun opportunity for members to assist with our industry’s advocacy efforts. And with this one, you don’t even have to sit through one of my government relations updates. Registration is now open for the HOMEPAC Shootout that will be hosted at Elm Fork Shooting Sports on Oct. 12. The Association’s clay shoot benefits both HOMEPAC of Greater Dallas and the Association’s issues fund. Partner opportunities are available. Registration and partner informa - tion can be found in the event listing under the calendar at www.Dallas - Builders.org. For more information about these and other advocacy related issues and events, members can contact the Dallas BA’s Director of Government Affairs. Although with that, you probably will have to sit through a bit of an update. HOMEPAC Shootout, presented by BGE, Inc.
METROPLEX DESIGN SOURCE FOR EXCITING, INNOVATIVE RESIDENTIAL PLANS 972-783-4660
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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