Homebuilders in the Esperanza subdivision have been made aware of a revised impact fee that affects every unit being built in the subdivision, according to attorneys for Kendall County Water Control and Improvement District No. 2.
The improvement district (Kendall WCID) filed an application with the Texas Commission on Environmental Quality seeking the authority to levy a revised impact fee of $36,935 per connection, according to Julianne Kugle, Kendall County Water Control and Improvement District No. 2 attorney.
Kendall WCID is asking TCEQ to allow for an increase in connection fees to $36,935 from the current fee of $18,061 per housing unit.
The proposed fee addresses water, sewer, reclaimed water, drainage and public safety/ emergency improvements. The fee is paid by the developer and homebuilders, and not by residents within the Esperanza community, Kugle said.
Kugle is a partner with the SKLaw (Sanford Kuhl Hogan Kugle Parker Kahn) firm, with offices in Houston and Austin.
“This fee was last increased in 2014,” she said. “Due to inflation, increase in cost of materials, labor and new infrastructure that will serve new phases of the Esperanza development, the district submitted an application to increase the fee.”
The TCEQ can approve the application unless a written request seeking a contested case hearing is filed within 30 days. If no request is submitted, TCEQ may approve the request, and Kugle said the new fee would immediately take effect.
If a hearing is requested, TCEQ will not approve the petition and will pass the case to TCEQ commissioners, who will determine whether a contested case hearing will be held. If so, it will become a legal proceeding similar to a civil trial in state district court.
The proposed fee has been disclosed to homebuilders within the community,” Kugle said.
The proposed increase in connection fees does not increase the tax rate for the WCIDs within Esperanza, she added.
Kugle did not speculate whether homebuilders would pass the cost on to the homebuyer or absorb the cost themselves.
Esperanza homes range from the $400,000s to $1 million-plus estates. All Esperanza homes follow strict Texas Hill Country-inspired architectural guidelines. Builders active in Esperanza include Chesmar Homes, Coventry Homes, Scott Felder Homes, Highland Homes, Monticello Homes, Perry Homes, and Toll Brothers, Esperanza’s exclusive builder for Regency at Esperanza, a 55-plus active adult community.
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