Dallas BA Priority Legislation Filed in Texas House and Senate Would Aid in Some Permit Delays
Legislation recently filed in Austin would aid builders who are forced into a possible permit delay by clarifying language in state statute regarding when a permit fee is to be refunded if a decision is not provided.
In March, Texas State Representative Jeff Leach filed HB 2590 in the Texas House. State Senator Drew Springer filed the companion bill SB 1947 in the Senate. That statute closes the loopholes depriving homeowners of a permit fee refund when statutorily imposed time frames exist. In 2005, the legislature enacted a statute that entitles applicants to a refund on their permit fees if the permit is not approved or denied within 45 days. This time frame can be extended up to 75 total days if the municipality provides written notice regarding why the application cannot be approved or denied. The intent was to ensure residents have their applications reviewed in a timely manner.
However, there have been cases in Texas where homeowners did not receive the refund despite building permits exceeding the 45-day limit, sometimes by several months. This occurred because municipalities circumvented the intent of state statute by requiring applicants to waive their right to a refund or agree to a time frame more convenient to the municipality.
With housing demand across the state resulting in an increase in permit applications, it is important to avoid lengthy and unnecessary delays that cost homeowners thousands of dollars due to carried interest on construction loans, rising material costs and prolongment of temporary habitation.