WASTEWATER IMPACT FEES

Houston Code of Ordinances ch. 47, art. IX, div. 3

in effect

Houston Code of Ordinances § 47-316 Wastewater impact fees, in general.

Sec. 47-316. - Wastewater impact fees, in general. (a) Except as otherwise provided herein, each new development within the city's wastewater benefit area shall pay an impact fee for wastewater facilities necessitated by and attributable to that development as provided in this division. Wastewater impact fees shall be assessed against and collected from new development on the basis of service units. The wastewater benefit area is established by the city council and may be amended from time to time. (b) The maximum wastewater impact fee per service unit that is assessed against new developments is established for this provision in the city fee schedule, per service unit, and the wastewater impact fee per service unit that shall be collected from new development is stated for this provision in the city fee schedule, per service unit. Beginning in 2011, the wastewater impact fee shall remain unchanged until the water impact fee equals or exceeds wastewater impact fee in dollar value. On July 1 of each year after the water impact fee equals or exceeds the wastewater impact fee established pursuant to section 47-384 of this Code, wastewater impact fees shall be adjusted by an amount equal to the percentage increase (if any) in the designated index for the preceding calendar year multiplied by the amount of the wastewater impact fee for the then-current year, but shall never exceed the maximum wastewater impact fee established herein. The director shall annually calculate the effective wastewater impact fee on or before June 1 of each year and make it available in his office upon request for public inspection. For purposes of this subsection, the term designated index shall mean the United States Producers Price Index for All Commodities (1982=100), as published by the Bureau of Labor Statistics, U.S. Department of Labor. If such index is subject to adjustment later, then the city shall use the adjusted index, together with any correlation factor necessary to relate the later adjusted index to the earlier index, as published by the entity publishing the index, or if such publication is discontinued, the designated index shall then refer to comparable statistics on changes in the cost of living for urban consumers as the same may be computed and published by an agency of the United States or by a responsible financial periodical of recognized authority, which agency or periodical shall be selected by the city. (c) The city council may amend wastewater impact fees to be collected from new developments without amending the wastewater capital improvements plan adopted herein, as long as the impact fees to be collected do not exceed the maximum impact fees per service unit that may be assessed for such facilities. (Ord. No. 02-517, § 4, 6-26-02; Ord. No. 05-958, § 3, 8-24-05; Ord. No. 2010-482, § 4, 6-30-2010; Ord. No. 2010-583, § 3, 7-28-2010; Ord. No. 2011-1168, § 13, 12-14-2011)

Houston Code of Ordinances § 47-317 Assessment of fees.

Sec. 47-317. - Assessment of fees. Assessment of wastewater impact fees against new development shall be based on the maximum wastewater impact fee per service unit established by the city council. The time of assessment depends upon the time the development was platted pursuant to Chapter 42 of the Code and when the development obtains a reservation for wastewater capacity. Assessment shall take place as follows: (1) For new developments which have received final plat recordation and which have acquired a reservation for wastewater capacity prior to June 20, 1990, assessment shall occur at the time of application for a building permit or at the time of payment of the capital recovery charge specified in the reservation, whichever occurs first. If capital recovery charges for the new development have been paid prior to June 20, 1990, assessment for additional service units shall occur at the time of application for a building permit. (2) For new developments which have received final plat recordation prior to June 20, 1990, but which have not acquired a wastewater capacity reservation by such date, assessment shall occur on the date a wastewater capacity reservation is obtained for the development. (3) For new developments which have not received final plat recordation prior to June 20, 1990, but which have acquired a reservation for wastewater capacity prior to such date, assessment shall occur at the time of final plat recordation or the time at which the capital recovery charge specified in the reservation is paid, whichever occurs first. In the event that the capital recovery charge has been paid prior to June 20, 1990, assessment for additional service units shall occur at the time of final plat recordation, or if no final platting is required prior to development, at the time of application for a building permit. (4) For new developments which have not received final plat recordation and which have not acquired a reservation for wastewater capacity prior to June 20, 1990, assessment shall occur at the time of final plat approval or at the time a wastewater capacity reservation is obtained, whichever occurs first. (Ord. No. 90-675, § 3, 6-6-90)

Houston Code of Ordinances § 47-318 Time of fee collection.

Sec. 47-318. - Time of fee collection. Wastewater impact fees shall be collected at the time of issuance of building permits. In the event that a building permit is not required prior to development, collection shall be at the time of wastewater service connection. Provided, however, the developer and the department may agree to an earlier date for payment to reserve wastewater capacity for future development. (Ord. No. 90-675, § 3, 6-6-90; Ord. No. 02-517, § 5, 6-26-02)

Houston Code of Ordinances § 47-319 Computation of fees.

Sec. 47-319. - Computation of fees. The department shall compute the wastewater impact fees due for a new development in the following manner: (1) Except as otherwise provided in this section, the amount of the impact fee due shall be determined by multiplying the number of service units generated by the new development by the wastewater impact fee per service unit then in effect. (2) Development of low and moderate cost single family housing is exempt from payment of impact fees. In order to qualify for this exemption, the house must be a single family residence located within city limits having an initial purchase price as certified by the property owner that does not exceed the latest available 12-month listing for median price single family housing in the city as published by the Real Estate Center at Texas A&M University. In the event the initial purchase price exceeds this amount, the property owner making the certification shall pay to the city the full amount of the impact fee as calculated under this section. If publication of the median price for single family housing is discontinued by the Real Estate Center at the Texas A&M University, the mayor is authorized to select another publication that lists the median price of single family houses in the city. (3) In the event that the new development has paid a capital recovery charge prior to computation of the impact fee, or in the event that the new development has a valid district or contractual reservation, the capacity reserved by payment of such charge or such reservation shall be converted to service units using the land use equivalency table. If the wastewater service required for the new development exceeds such reserved capacity, the service units equivalent to the previously reserved capacity shall be subtracted from the total number of service units attributable to the new development, and the amount of the wastewater impact fee due shall be the number of additional service units multiplied by the wastewater impact fee per service unit then in effect. (4) In the event that the new development involves razing or removing existing structures, the wastewater capacity utilized by such use or structure shall be converted into service units using the land use equivalency table. If the wastewater service required for the new development exceeds such utilized capacity, the service units equivalent to the previously reserved capacity shall be subtracted from the total number of service units attributable to the new development, and the amount of the wastewater impact fee due shall be the number of additional service units multiplied by the wastewater impact fee per service unit then in effect. (5) The amount of each impact fee due shall be reduced by any allowable credits in the manner provided in section 47-321 of this Code. (6) The amount of each impact fee due for a new development shall not exceed an amount computed by multiplying the maximum wastewater impact fee per service unit in effect at the time the new development was assessed by the number of service units generated by the development. (7) If the property owner proposes to increase the number of service units for a development following payment of the wastewater impact fee, the additional wastewater impact fees collected for such new service units shall be determined in the same manner as provided in this section. (Ord. No. 90-675, § 3, 6-6-90; Ord. No. 97-442, § 1, 4-23-97)

Houston Code of Ordinances § 47-320 Determination of service units.

Sec. 47-320. - Determination of service units. The number of service units attributable to a new development shall be determined by using the land use equivalency table established by the city council, which may be amended from time to time. (Ord. No. 90-675, § 3, 6-6-90)

Houston Code of Ordinances § 47-321 Credits against wastewater impact fees.

Sec. 47-321. - Credits against wastewater impact fees. (a) A property owner who has paid a connection charge prior to June 20, 1990 for a city-constructed wastewater facility, or who has paid an equivalent charge for a facility included in the wastewater capital improvements plan to a district created under authority of article III, section 52, or article XVI, section 59 of the Texas Constitution, for which no reimbursement was received, may reduce the wastewater impact fee due for the lot or tract for which the fee was paid by a like amount. (b) A property owner who constructs or finances a wastewater facility included in the wastewater capital improvements plan pursuant to a development agreement approved by the city on or after June 20, 1990 may offset the value of such improvement against the wastewater impact fees due for the development. The offset shall be associated with the plat of the property that is to be served by the wastewater facility constructed or financed. The amount of the offset shall be determined pursuant to rules established in this section and administrative guidelines promulgated by the director. The city may also agree to offset against wastewater impact fees the value of a wastewater facility to be constructed or financed by the property owner, which has not been included in the wastewater capital improvements plan, if it is reasonably anticipated that the facility shall be included within the next revision to such plan. In no event shall the offset allowable under this subsection exceed the amount of the impact fees due, and no property owner shall be entitled to reimbursement for such excess amount unless the city otherwise agrees. (c) The development agreement required by subsection (b) may provide for participation by the city in the costs of oversizing the wastewater facility to be constructed or financed by the property owner, or may provide for reimbursement according to the terms of the agreement. The amount of any offset shall be reduced by the amount of the city's participation. (d) A credit or an offset associated with a plat shall be applied against a wastewater impact fee due at the time that the first fee for the new development is collected, and thereafter to all subsequently collected fees, until the credit or offset is exhausted. (Ord. No. 90-675, § 3, 6-6-90)

Houston Code of Ordinances § 47-322 Accounting and refunds.

Sec. 47-322. - Accounting and refunds. (a) All wastewater impact fees collected within the wastewater benefit area shall be deposited in a dedicated fund to which interest is allocated. All such amounts, together with all interest earned thereon, shall be used solely for the purposes set forth in subsection (b). (b) The wastewater impact fees collected pursuant to this division may be used to finance or to recoup the costs of any capital improvements or facility expansions identified in the applicable wastewater capital improvements plan for the wastewater benefit area, including but not limited to the construction contract price, surveying and engineering fees, land acquisition costs (including land purchases, court awards and costs, attorneys' fees, and expert witness fees), and fees paid to an independent qualified engineer or financial consultant preparing or updating the wastewater capital improvements plan. Wastewater impact fees may also be used to pay the principal sum, interest and other finance costs on bonds, notes or other obligations issued by or on behalf of the city to finance such capital improvements. (c) Disbursement of funds shall be authorized by the department at such times as are reasonably necessary to carry out the purposes and intent of this article; provided, however, that funds shall be expended within a reasonable period of time, but not to exceed ten years from the date wastewater impact fees are deposited into the fund. (d) An owner of property for which a wastewater impact fee has been paid is entitled to a refund of all or a portion of the fee in the following circumstances: (1) Upon application, any wastewater impact fee or portion thereof collected pursuant to this division, which has not been expended within the wastewater benefit area within ten years from the date of payment, shall be refunded to the record owner of the property for which the impact fee was paid together with interest calculated from the date of collection to the date of refund at the statutory rate as set forth in article 5069-1.03, Texas Revised Civil Statutes Annotated, or its successor statute. A wastewater impact fee shall be considered expended on a first-in, first-out basis. A wastewater impact fee shall also be considered expended if the total expenditures for wastewater facilities included in the wastewater improvements plan, as may be amended from time to time, within the wastewater benefit area within ten years following the date of payment exceeds the total wastewater impact fees collected within the benefit area during such period. (2) If a refund is due pursuant to paragraph (1), the department shall divide the difference between the amount of expenditures and the amount of the fees collected by the total number of service units for which wastewater impact fees have been paid within the benefit area for the period to determine the refund due per service unit. The refund to the record owner shall be calculated by: a. Multiplying the refund due per service unit by the number of service units for the development for which the fee was paid; and b. Determining interest due based on the amount calculated under subsection (d)(2)a. (3) Upon completion of all the wastewater facilities identified in the wastewater improvements plan for the wastewater benefit area, the department shall recalculate the maximum impact fee per service unit using the actual costs for the improvements or expansions. If the maximum impact fee per service unit based on actual cost is less than the impact fee per service unit paid, the city shall refund the difference if such difference exceeds the wastewater impact fee paid by more than ten percent. If the difference is less than ten percent, no refund shall be due. The refund to the record owner shall be calculated by: a. Multiplying such difference by the number of service units of the development for which the fee was paid; and b. Determining interest due based on the amount calculated under subsection (d)(3)a. (4) In no event shall a refund be due under this division for payment of any capital recovery charge. (e) The department shall establish adequate financial and accounting controls to ensure that wastewater impact fees disbursed from the fund are utilized solely for the purposes authorized. The department shall maintain and keep financial records for wastewater impact fees, which shall show the source and disbursement of all fees collected in or expended within the wastewater benefit area. The records of the fund into which wastewater impact fees are deposited shall be open for public inspection and copying during ordinary business hours. (f) Nothing in these regulations shall prevent the city from paying all or part of the wastewater impact fees due for a new development pursuant to criteria adopted by the city council. (Ord. No. 90-675, § 3, 6-6-90)

Houston Code of Ordinances § 47-323 Impact fee appeals.

Sec. 47-323. - Impact fee appeals. (a) The property owner or applicant for new development may appeal the following administrative decisions to an administrative hearings official appointed by the director: (1) The applicability of an impact fee to the development; (2) The amount of the impact fee due; (3) Classification of the development under the land use equivalency table; (4) The applicability of a credit or an offset to the development; (5) The amount of a credit or of an offset; or (6) The amount of a refund due, if any. (b) The burden of proof shall be on the applicant to demonstrate that the administrative decision was not made in accordance with this division or applicable state law. (c) The applicant must file a written notice of appeal with the director within 30 days following the decision from which an appeal is made. If the notice of appeal is accompanied by a payment or other sufficient security satisfactory to the department in an amount equal to the original determination of the impact fee due, the development application may be processed while the appeal is pending. Each appeal must include the fee stated for this provision in the city fee schedule. (Ord. No. 90-675, § 3, 6-6-90; Ord. No. 2011-1168, § 13, 12-14-2011)

Houston Code of Ordinances § 47-324 Relief procedures.

Sec. 47-324. - Relief procedures. (a) Any person who has paid an impact fee or an owner of land for which an impact fee has been paid may petition the city council to determine whether any duty required by this article or by chapter 395 of the Texas Local Government Code has not been performed within the time so prescribed. The petition shall be in writing and shall state the nature of the unperformed duty and request that the duty be performed within 60 days of the request. If the city council determines that the duty is required pursuant to the ordinance and is late in being performed, it shall cause the duty to commence within 60 days of the date of the request and to continue until completion. This subsection shall not apply to matters subject to appeal pursuant to section 47-323. (b) The city council may grant a variance from any requirement of this article, upon written request by a property owner subject to this article, following a public hearing, and only upon finding that a strict application of such requirement would, when regarded as a whole, result in confiscation of the property. (c) If the city council grants a variance to the amount of the impact fee due for a new development under this section, it shall cause to be appropriated from other city funds the amount of the reduction in the impact fee to the fund for the service area in which the property is located. (Ord. No. 90-675, § 3, 6-6-90)

Houston Code of Ordinances § 47-325 Replacement of existing charges.

Sec. 47-325. - Replacement of existing charges. On and after June 20, 1990, the provisions of this division 3 relating to the assessment and collection of wastewater impact fees replace and supersede those provisions for payment capital recovery charges as well as the payment of connection charges for city-constructed wastewater facilities pursuant to city ordinances referenced in section 47-42. On and after such date, the city shall neither impose on or collect from a new development any capital recovery charges or connection charges for city-constructed wastewater facilities. (Ord. No. 90-675, § 3, 6-6-90)

Houston Code of Ordinances § 47-326 Connection of existing development.

Sec. 47-326. - Connection of existing development. If an owner of existing development within the wastewater benefit area requests connection to the city's wastewater system, and the department agrees to extend a wastewater main to serve the development, the owner shall pay a fee equivalent to that prescribed by and computed according to section 47-319 prior to connection to such system; provided, however, that an existing development so connected is entitled to a credit against the fee equal to the charge for one service unit. (Ord. No. 90-675, § 3, 6-6-90)

Source: City of Houston, Code of Ordinances and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tx/houston/codes/code_of_ordinances?nodeId=COOR_CH47WASE_ARTIXWAIMFECARE_DIV3WAIMFEFetched: 10/26/2026