Special Session Spotlight: Impact Fees Could Affect Your Bottom Line

Published on July 24, 2025
The Texas Legislature is back in session, and while 17 items are on the agenda, one stands out for the green industry: impact fees tied to water and development.


Here’s what you need to know:

📌 What’s Happening
Lawmakers are revisiting SB 1253, a bill that would require cities to offer credits on impact fees when developers go above and beyond to conserve water or reduce wastewater.

🧾 Why This Matters
Cities use impact fees to fund water and sewer infrastructure for new developments. But these fees have gotten expensive—really expensive:
  • Austin: $7,700 per single-family home
  • San Antonio: $7,343–$11,528 depending on location
  • Houston: $1,618
  • Fort Worth: $2,999

With the average home around $300,000, these costs are adding up—and pricing people out.

🏗️ What It Means for Our Industry
  • Pro: SB 1253 encourages smarter development and conservation.
  • Con: Cities could tie lower fees to stricter landscape design rules—like mandatory plant lists or layouts.


The bill passed earlier this year but was vetoed due to unrelated politics. Now it’s back—and TNLA is tracking it closely to ensure any changes benefit your business and keep design flexibility intact.


We'll continue to keep you informed as this develops.