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Cleburne council directs staff to draft ordinance on nonprofit affordable-housing fee exemptions
Summary
Council members asked staff to prepare draft ordinance language creating exemptions or waivers for nonprofit and public affordable-housing projects from certain development/impact fees, with staff to return with proposed ordinance for council consideration.
Cleburne City staff presented research on fee exemptions for nonprofit and public affordable-housing projects and the council directed staff to draft ordinance language for future consideration.
Staff framed the discussion around a federal definition of affordable housing and comparisons with peer cities. The presentation noted that some jurisdictions exempt certain public entities (for example, school districts) and that other cities adopt narrowly targeted exemptions or reimbursement programs to encourage nonprofit affordable-housing development by reducing upfront development costs.
Mr. Hutch, a city staff member presenting the item, said the council had asked staff to research options during an earlier impact-fee discussion. He said the team reviewed peer-city ordinances and updated impact-fee rates and had found that six benchmark cities maintain some form of exemption policy. He recommended two primary categories for exemption language: (1) public agencies and government entities (some of which are covered by state law) and (2) nonprofit affordable-housing projects that meet the staff-proposed definition tied to 42 U.S. Code §12745 and programmatic resale restrictions (units sold to households at or below 80% area median income and kept affordable for an agreed period).
Council members voiced support for drafting an ordinance that would require an application and staff verification with final authorization by council. They discussed alternatives such as rebate or reimbursement programs funded by the city (rather than a blanket waiver) — an approach used in some peer cities (Fort Worth was cited as having a rebate subject to appropriation). Several council members cited Habitat for Humanity and faith-based organizations as likely program users and emphasized that staff review and council approval should safeguard program integrity.
After discussion, staff was directed to prepare draft ordinance language and return to council for formal consideration and possible adoption at a future meeting.
