HB 4582

relating to reimbursement of infrastructure costs incurred by a
developer of certain housing developments by certain
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subtitle C, Title 12, Local Government Code, is
amended by adding Chapter 396 to read as follows:
CHAPTER 396.  ATTAINABLE HOUSING DEVELOPMENT INFRASTRUCTURE FOR
CERTAIN MUNICIPALITIES AND COUNTIES
Sec. 396.001.  DEFINITIONS.  In this chapter:
(1)  "Attainable housing development" means a
residential development consisting of at least seven acres that is
developed or renovated to provide at least 50 single-family offsite
(A)  a facility for water, wastewater,
electricity, or another utility; and
(B)  a street, road, highway, or bridge.
(3)  "Single-family offsite residence" means a housing
unit governed by Chapter 1201, Occupations Code.
Sec. 396.002.  APPLICABILITY OF CHAPTER.  This chapter
(1)  a county with a population greater than 2.5
million but less than 4 million;
(2)  a county with a population greater than 190,000
that is adjacent to a county described by Subdivision (1); and
(3)  a municipality wholly or partly located in a
county described by Subdivision (1) or (2).
Sec. 396.003.  ELIGIBILITY FOR INFRASTRUCTURE COST
REIMBURSEMENT.  (a)  A developer is eligible for reimbursement
under this chapter for a cost incurred to build infrastructure
related to an attainable housing development if:
(1)  the developer directly or indirectly incurred the
cost of building or financing the construction, maintenance, or
renovation of the infrastructure or connection of the
infrastructure to the development;
(2)  a municipality or county would have built or
financed the infrastructure had the infrastructure not been built
(3)  at least 80 percent of the lots in the development
accommodate a single-family offsite residence that is at least
(4)  the development is connected to:
(A)  a public water system; and
(B)  a sewer system as defined by Section 26.001,
(5)  the development is governed by a property owners'
association agreement or land lease agreement that includes
restrictive covenants relating to the maintenance of the common
areas and grounds of the development and enforcement of community
(6)  the developer offers units in the development to
veterans or active duty members of the military, first responders,
or employees of a school district; and
(7)  the developer complies with Federal Housing
Administration tenant site lease protections required by:
(A)  a municipality in which the development is
(B)  a county in which the development is located
if the development is wholly or partly located in the
unincorporated area of the county.
(b)  Costs that may be reimbursed under this chapter include:
(2)  installation, maintenance, or renovation costs;
(3)  costs to connect to existing infrastructure.
Sec. 396.004.  NOTICE OF REIMBURSEMENT.  (a)  A developer
eligible under Section 396.003 must provide written notice of
reimbursement under this chapter to:
(1)  a municipality in which the development is wholly
(2)  a county in which the development is located if the
development is wholly or partly located in the unincorporated area
(1)  an itemized list of the infrastructure costs
described by Section 396.003 incurred by the developer; and
(2)  proof of payment for each infrastructure cost
Sec. 396.005.  REIMBURSEMENT OF INFRASTRUCTURE COSTS.  (a)
A municipality or county receiving notice under Section 396.004
from a developer eligible under Section 396.003 shall reimburse the
developer's infrastructure costs described by Section 396.003 in
(b)  The amount of reimbursement paid to a developer under
this chapter in a tax year may not exceed the amount of property
taxes assessed by the municipality or county and paid by the
developer for that tax year on the property on which the attainable
housing development for which the developer seeks reimbursement is
located.  A county's liability for reimbursement under this chapter
is limited to the property taxes assessed by the county on and paid
by the developer for the property located in the unincorporated
(c)  A developer eligible under Section 396.003 is entitled
to reimbursement under this chapter until the earlier of:
(1)  the date on which the total reimbursement paid by a
municipality or county under this chapter is equal to the total
infrastructure costs described by Section 396.003 incurred by the
developer for the attainable housing development; or
(2)  the 10th anniversary of the date the developer
first receives a reimbursement payment under this chapter.
(d)  A municipality or county that receives notice under
Section 396.004 shall pay the initial reimbursement payment not
later than the 90th day after the date the municipality or county
Sec. 396.006.  ANNUAL REPORT OF REIMBURSABLE COSTS.  A
developer that provided notice under Section 396.004 shall submit
an annual report to the municipality or county from which the
developer receives reimbursement that includes:
(1)  an itemized list of the infrastructure costs
incurred by the developer during that year; and
(2)  proof of payment for each infrastructure cost
incurred by the developer during that year.
SECTION 2.  The changes in law made by this Act apply only to
an attainable housing development project initiated on or after the
SECTION 3.  This Act takes effect September 1, 2025.