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Bill

HB 5489

Relating to a temporary moratorium on the imposition of an impact fee.

89th Legislature (2025) Introduced by Paul Dyson

Texas bill HB 5489 temporarily halts municipal impact fees on developers, reducing construction costs but cutting local government infrastructure funding.

Placed on General State Calendar
#citygovernment--landuse&zoning(i0064) #countygovernment--landuse&zoning(i0098) #fees&othernontaxrevenue--local(i0361) #politicalsubdivisions(i0588)
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WeVote Research Nonpartisan
Bill Summary · HB 5489

Legislative bill overview

HB 5489 proposes a temporary moratorium on impact fees—charges that developers pay to municipalities to offset infrastructure costs created by new construction. The bill would prevent Texas cities and counties from imposing these fees during a specified period, though the exact duration and scope of the moratorium are not detailed in the available action summary.

Why is this important

Impact fees significantly affect housing development costs and affordability. A moratorium could accelerate housing development and reduce construction costs, but would simultaneously reduce local government revenue for schools, roads, water systems, and emergency services—shifting infrastructure funding burdens to existing taxpayers or requiring cuts to municipal services.

Potential points of contention

  • Housing affordability vs. infrastructure funding: Developers benefit from lower fees, potentially lowering housing costs, but municipalities lose crucial revenue for growth-related infrastructure needs
  • Fiscal impact disparity: Wealthier communities with existing infrastructure may absorb impacts better than rapidly growing areas dependent on impact fees
  • Temporary vs. permanent effects: A temporary moratorium may create market distortions if developers rush projects before fees resume, rather than providing lasting affordability solutions

Compiled from official sources — confirm details with the bill’s official record.

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