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College Station staff outlines new IFAC rules under SB 1883; council targets Jan. 22 hearing to consider cutting roadway fees
Summary
Council heard staff explain state law changes (SB 1883) that alter impact-fee amendment procedures and IFAC composition, directed staff to form a new IFAC under the law, and targeted Jan. 22, 2026 for a potential hearing on setting the roadway collection rate to zero if the process proceeds.
City planning staff briefed the College Station City Council on Aug. 14 about state law changes (Senate Bill 1883) that change how municipalities amend impact fees and how impact-fee advisory committees are composed.
Anthony Armstrong, planning and development services, told council the new law (effective Sept. 1, 2025) increases notice requirements, adds an independent-audit requirement for fee amendments, and removes language allowing a planning commission to act as the Impact Fee Advisory Committee (IFAC). Under the new rules the IFAC must be an appointed body with at least 50% of members representing the real-estate development or building industries, and those development representatives cannot be government employees.
Armstrong outlined a staff timeline: remove the current UDO reference that ties the IFAC to the planning commission, post a committee-ordinance text amendment to PNC (text-amendment notice period applies), open applications, bring appointments to council (target Nov. 13), then post a 60-day notice for any fee amendment and hold an IFAC meeting (target mid-January). Staff estimated, based on current projects and collections, that setting the roadway collection rate to zero would reduce projected fee recapture by roughly $15 million through 2031 (staff's illustrative projection).
Public commenters included JT Lattimore of the Greater Brazos Valley Builders Association, who urged lowering roadway impact fees to zero to relieve upward pressure on housing costs and offered the association as a source of IFAC appointees, and Lloyd Davis of CSAN, who asked the council to define metrics for success (lower-income buyers, entry-level housing, student housing).
After extensive discussion about committee size and membership balance, council directed staff to prepare an IFAC ordinance and recruitment process. Staff said it will present the ordinance to Planning & Zoning, post applications, aim to appoint members Nov. 13, schedule an IFAC meeting around Jan. 15, and, if council directs, bring an item for a Jan. 22 hearing to consider setting the roadway collection rate to zero. Council also discussed legal risks and the possibility of post-adoption challenges by parties who previously paid higher fees.
Why it matters: SB 1883 changes the procedural hurdles for altering impact fees and shifts advisory influence toward development-industry representatives. Any decision to reduce or suspend roadway impact-fee collections would shift funding responsibility for many road capital projects to other sources (tax revenue, bonds or general-fund allocations).
What comes next: staff will draft a committee ordinance and application materials for council review; timeline steps include PNC text amendment (Sept./Oct.), applicant posting, Nov. 13 appointments, IFAC meeting in January and a possible council hearing on Jan. 22, 2026.
