Land Use & Zoning
In Texas, 'impact fees' charged to new development are governed by:
ATREC regulations
BTexas Local Government Code Chapter 395, which limits fees to the proportionate cost of new infrastructure needs✓ Correct
CFederal HUD regulations
DThe Texas Constitution Article XI
Explanation
Texas Local Government Code Chapter 395 authorizes and regulates the imposition of impact fees by cities and counties. Impact fees must be based on a capital improvements plan and limited to the proportionate share of infrastructure costs attributable to the new development.
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