Floodplain Ordinance Revisions

BY: OMAR IZFAR, ATTORNEY WILSON CRIBBS+GOREN
& JAMES JONES, PE, JONES | CARTER

Houston City Council voted just last month to approve revisions to its controversial Floodplain Ordinance. Here are some of the highlights of what the revised Ordinance does:

Regulated Area

Previously, Houston’s code applied to new permits and plats in the 100-year floodplain. The new revisions extend this to the 500-year floodplain. Land in the 100-year floodplain has a 1% chance of flooding in a single year while the 500-year floodplain has a 0.2% chance of flooding. As you know, we managed to experience a series of events that met or exceeded the 100-year rainfall intensities in the past few years. The City intends to regulate new construction to the 500-year floodplain

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2018 Texas Property Tax Deadline Change

BY PAUL BETTENCOURT

Protesting your property taxes every year offers a great opportunity to save money. In Texas, property taxes represent approximately 40% of total business taxes. This is a large component
of expenses that can be challenged and changed.

Protesting your property taxes every year offers a great opportunity to save money. In Texas, property taxes represent approximately 40% of total business taxes. This is a large component of
expenses that can be challenged and changed.

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Vested Rights: Fair Play by the Government

How do concepts of fair play apply to Land Use Regulation?

By: Reid C. Wilson
Wilson Cribbs + Goren

When engaged in a real estate deal, most would agree that parties should both stand behind their representations and not change any rules of engagement, or be subject to legal challenge. But what if the other party is a government? Is the government subject to the same rules of fair play? The answer is no, but the state legislature has added a significant protection for land owners/developers through vested rights.

In the private context, there can be both written and oral agreements. In Texas, a clearly drafted written agreement between private parties is, except in a few exceptions, enforceable in accordance with its terms. Oral agreements are problematic, but a well-established body of case law provides for enforcement of certain oral agreements. Where a representation is made by one party to another party in the context of a business relationship, and the receiving party reasonably relies upon that representation to their detriment, the legal concept of estoppel bars the party making the representation from reneging on it, notwithstanding the lack of a written contract. The theory is that it is equitable to enforce these type of non-written business understandings. Therefore, a private party could be bound to what it represented to another party as the rule of engagement for a deal.

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Tackling Tax Reform: How Changes to the Law Impact CRE

BY BRANDI SMITH

Just before Christmas, Congress offered up to President Trump what is arguably the best gift lawmakers could have presented: a major legislative victory in the form of the Tax Cuts and Jobs Act. The sweeping reform of the U.S. federal tax system will mean significant changes for individuals and businesses, including those in commercial real estate.

Some particulars of the bill are being worked out at the IRS and are expected to be clarified this month. Ahead of that, Marcus & Millichap,a national CRE brokerage firm, broke down how
investors will be impacted by the changes with a forum of experts.

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Property Tax Reductions: Senate Bill 1 and Hurricane Harvey

REDNews Interviews Senator Paul Bettencourt for an update

BY MICHAEL PAVIA

Senate Bill 1
Senate Bill 1 (SB 1), is proposed legislation allowing for property tax rate elections if county property tax revenues exceeded 4% of what was taken in the year before. Basically, as values go up,
SB1 proposes to roll back tax rates to provide property tax relief. SB1 proposed to decrease the rollback rate from the current 8% to 4%. The Texas Senate endorsed SB 1. Members from the Texas
House and Senate met in a special session on July 26th to vote on the rollback. According to Senator Bettencourt, Speaker of the House Joe Straus was unwilling to appoint a conference committee so the bill was defeated.

Per Lieutenant Governor Patrick, “Whenever the Senate convenes again, either a special or regular session, it is our intention to pass that bill one more time. There will be a lot of reform measures
associated with it, as well. Governor Abbott is supportive and is hopeful that it will pass.”

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