City of Houston Updating Impact Fees

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The City of Houston will be increasing drainage impact fees on July 1, 2023, as required by Chapter 395 of the Texas Local Government Code.  

The Developer Drainage Impact Fee is a onetime fee that is only paid by new development if it results in an increase to the amount of impervious area. This is a cost sharing tool that helps manage the costs of capital improvements through new development.  

According to Houston Public Works, impact fees are calculated based on land use assumptions that forecast incremental new demand over the next ten-year period and the capital costs associated with providing service to that new demand.  


The increase in fees is detailed in the table below:  

In an example provided by Houston Public Works, they estimate that a new single-family development (1.8 SU) whose current impact fee cost would be between $1-$40.00, the cost would increase to $45.00. While a single-family redevelopment (.25 SU) whose current impact fee cost would be between $0-6, would increase to $6.25.  

For more information on impact fees, visit the City’s website.