Texas § 212.072 DUTIES OF PARTIES UNDER CONTRACT.

Texas Statutes

§ 212.072 — DUTIES OF PARTIES UNDER CONTRACT.

Texas § 212.072

Code LGLocal Government Code

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Bluebook

Tex. Local Government Code Code Ann. § 212.072 (2026).

Text

Sec. 212.072. DUTIES OF PARTIES UNDER CONTRACT.

(a)Under the contract, the developer shall construct the improvements and the municipality shall participate in their cost.

(b)The contract:

(1)must establish the limit of participation by the municipality at a level not to exceed 30 percent of the total contract price, if the municipality has a population of less than 1.8 million; or

(2)may allow participation by a municipality at a level not to exceed 70 percent of the total contract price, if the municipality has a population of 1.8 million or more. (b-1) In addition, if the municipality has a population of 1.8 million or more, the municipality may participate at a level not to exceed 100 percent of the total contract price for all required drainage improvements related to the developm

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Sec. 212.072. DUTIES OF PARTIES UNDER CONTRACT. (a) Under the contract, the developer shall construct the improvements and the municipality shall participate in their cost.
(b) The contract:
(1) must establish the limit of participation by the municipality at a level not to exceed 30 percent of the total contract price, if the municipality has a population of less than 1.8 million; or
(2) may allow participation by a municipality at a level not to exceed 70 percent of the total contract price, if the municipality has a population of 1.8 million or more.
(b-1) In addition, if the municipality has a population of 1.8 million or more, the municipality may participate at a level not to exceed 100 percent of the total contract price for all required drainage improvements related to the development and construction of affordable housing. Under this subsection, affordable housing is defined as housing which is equal to or less than the median sales price, as determined by the Texas Real Estate Research Center at Texas A&M University, of a home in the Metropolitan Statistical Area (MSA) in which the municipality is located.
(c) In addition, the contract may also allow participation by the municipality at a level not to exceed 100 percent of the total cost for any oversizing of improvements required by the municipality, including but not limited to increased capacity of improvements to anticipate other future development in the area.
(d) The municipality is liable only for the agreed payment of its share of the contract, which shall be determined in advance either as a lump sum or as a factor or percentage of the total actual cost as determined by municipal ordinance.

Legislative History

Added by Acts 1989, 71st Leg., ch. 1, Sec. 47(b), eff. Aug. 28, 1989. Amended by Acts 1999, 76th Leg., ch. 1526, Sec. 1, eff. Aug. 30, 1999. Amended by: Acts 2005, 79th Leg., Ch. 1075 (H.B. 1606 ), Sec. 1, eff. June 18, 2005. Acts 2025, 89th Leg., R.S., Ch. 204 (H.B. 1620 ), Sec. 13.005, eff. September 1, 2025.