Bill > HB5489

This bill establishes a temporary moratorium on impact fees, which are charges typically imposed by local governments on new development to help fund infrastructure improvements necessitated by that development. Specifically, the bill prohibits political subdivisions (such as cities or counties) from imposing impact fees from September 1, 2025, through August 31, 2029. However, there is an exception: if a political subdivision had already pledged a specific impact fee before September 1, 2025, for the purpose of paying off debt, and not imposing the fee would impair the contract for that debt, then they may continue to impose the fee. The bill provides a clear sunset date of August 31, 2029, after which the moratorium will expire and political subdivisions can potentially resume imposing impact fees. The legislation aims to provide temporary relief from these fees, which can be a significant cost for developers and potentially impact housing affordability and new construction.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5489