top of page

SB 1883

đź”´Relating to the approval of land use assumptions, capital improvement plans, and impact fees.

đź”´ SB 1883: Developers gain leverage over city impact fees

What it says it does:
Requires more transparency and accountability when cities collect impact fees for roads, water, and drainage tied to new development.

What it actually changes:
Cities must get a two-thirds supermajority to adopt or raise fees. Fees cannot be increased for three years. Industry now controls at least half of the advisory committee that shapes fee assumptions. Independent audits are mandatory before increases, and the Attorney General can sue cities on behalf of property owners.

Who is pushing for it:
Supporters in the files include Texas Association of Builders, Texas Realtors, Texas Manufactured Housing Association, National Rental Home Council interests, development law firms, and the Texas Public Policy Foundation.

Who benefits:
Large builders, real estate investors, and developers who want lower upfront costs. They gain permanent seats on oversight bodies, longer gaps between fee hikes, and new legal tools to challenge cities.

Who gets left out or exposed:
Cities lose flexibility to fund infrastructure on time. Residents and taxpayers may face higher taxes or bond debt when fees lag behind costs. Opponents in the files include several Texas cities and individual citizens.

Why this matters long term:
It shifts power from local voters and councils to developers and state officials. Roads and utilities may lag behind growth, leaving taxpayers to cover the gap.

What to watch next:
Whether this model spreads to other local funding tools, and how the Attorney General uses new powers to intervene in city fee disputes.

Bottom line:
This bill gives developers structural control and weakens local governments, creating hidden costs for taxpayers when growth outpaces infrastructure.

#SB1883 #TexasPolicy #TexasInfrastructure #LocalControl #StayInformed

bottom of page