Austin does not charge a general municipal impact fee; the city relies on water/wastewater capital recovery fees, transportation user fees, and Austin Energy connection charges instead. Water/Wastewater capital recovery fees for ADUs are charged based on meter size: an ADU sharing the main meter pays nothing extra, while a separately metered ADU pays the standard 5/8-inch residential rate. Drainage fees are tied to impervious cover. There is no per-unit citywide ADU surcharge.
Texas cities collect impact fees under Local Government Code Chapter 395, but Austin's program covers only water and wastewater capital recovery. There is no transportation or parks impact fee on residential development. For ADUs the practical cost picture is: (1) Water/Wastewater capital recovery fee, currently around $3,000-$4,500 for a new 5/8-inch meter (Austin Water schedule, FY 2024-25), but zero if the ADU shares the main house's meter; (2) Austin Energy electrical service connection fee, typically a few hundred dollars for a separate meter or zero for shared; (3) Drainage charge, tied to impervious cover added; and (4) Permit and plan-review fees on the building permit. The HOME Initiative did not separately waive these fees for ADUs under 750 sq ft - unlike California's statewide waiver, Texas has no equivalent statute - but sharing the main house meter is the standard way to keep costs low. The school district (AISD) does not charge impact fees in Austin.
Failure to pay assessed fees prevents permit issuance and meter set. Construction without a meter or without paying capital recovery fees can result in service disconnection and a $500-$2,000 Class C citation per LDC 25-1-451. Bypassing the water meter (illegal tap) is a separate Texas Penal Code offense.
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