Chapter 380 Economic Development Agreements

Summary

Chapter 380 of the Texas Local Government Code provides cities with the authority to offer incentives designed to promote economic development such as commercial and retail projects, as well as housing. These incentives can include loans and grants of city funds or services at little or no cost to promote economic development. They are called "380 agreements" based on the chapter number of the code that authorizes them.

Emphasis on Housing

The City of Athens has focused on enhancing the local housing market to ensure a diverse range of living options for its residents and workers. By leveraging Chapter 380 agreements, the City aims to support developments that offer affordable, quality housing options. These initiatives are strategically designed to attract and retain a stable workforce, thereby enriching the community’s economic vitality and overall growth. This proactive approach helps in providing accessible housing solutions that benefit both current and prospective residents of Athens.

Guidelines for Utilizing Chapter 380 Agreements for Housing

The City Council has established specific guidelines to ensure that the 380 agreements effectively address the housing needs:

Types of Housing Supported:

  • Single-family housing
  • Duplex and apartment housing
  • Studio or efficiency housing

Incentives Offered:

  • Cash Incentives: Developers may receive cash incentives based on the number of units they complete, promoting the construction of new housing options.
  • Building Permit Fees: Fees must be paid upfront but may be rebated once projects are completed and meet all city standards.
  • Infrastructure Reimbursements: For necessary improvements like roads and utilities, which can be costly for developers.
  • Tax Rebates: Multi-family projects may qualify for tax rebates once fully owned by the developer for five years.
  • Public Improvement Districts (PID): Provide upfront funding for infrastructure, placing an assessment on each lot within the development.

Eligibility and Compliance:

  • Projects must pass a feasibility test and align with city development priorities.
  • The City reserves the right to not participate in projects that do not meet the majority of the council’s objectives or if they believe it's not in the best interest of Athens' citizens.