Bill Text: TX SB840 | 2025-2026 | 89th Legislature | Enrolled

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Bill Title: Relating to certain municipal regulation of certain mixed-use and multifamily residential development projects and conversion of certain commercial buildings to mixed-use and multifamily residential occupancy.

Sponsorship: Moderate Partisan Bill (Republican 13-4)

Status: (Passed) 2025-06-20 - Effective on 9/1/25 [SB840 Detail]

Download: Texas-2025-SB840-Enrolled.html

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S.B. No. 840

AN ACT
relating to certain municipal regulation of certain mixed-use and
multifamily residential development projects and conversion of
certain commercial buildings to mixed-use and multifamily
residential occupancy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 211, Local Government
Code, is amended by adding Section 211.0011 to read as follows:
Sec. 211.0011. ZONING REGULATION OF MIXED-USE RESIDENTIAL
AND MULTIFAMILY RESIDENTIAL USE AND DEVELOPMENT. (a) In this
section, "mixed-use residential" and "multifamily residential"
have the meanings assigned by Section 218.001.
(b) The authority under this chapter related to zoning
regulations and the determination of zoning district boundaries in
connection with mixed-use residential use and development and
multifamily residential use and development is subject to Chapter
218.
SECTION 2. Subtitle A, Title 7, Local Government Code, is
amended by adding Chapter 218 to read as follows:
CHAPTER 218. REGULATION OF MIXED-USE AND MULTIFAMILY RESIDENTIAL
USE AND DEVELOPMENT IN CERTAIN MUNICIPALITIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 218.001. DEFINITIONS. In this chapter:
(1) "Heavy industrial use" means a storage,
processing, or manufacturing use:
(A) with processes using flammable or explosive
materials;
(B) with hazardous conditions; or
(C) that is noxious or offensive from odors,
smoke, noise, fumes, or vibrations.
(2) "Mixed-use residential," when used to describe
land use or development, means the use or development, as
applicable, of a site consisting of residential and nonresidential
uses in which the residential uses are at least 65 percent of the
total square footage of the development. The term includes the use
or development of a condominium.
(3) "Multifamily residential," when used to describe
land use or development, means the use or development, as
applicable, of a site for three or more dwelling units within one or
more buildings. The term includes the use or development of a
residential condominium.
Sec. 218.002. APPLICABILITY. This chapter applies only to
a municipality with a population greater than 150,000 that is
wholly or partly located in a county with a population greater than
300,000.
Sec. 218.003. NO EFFECT ON OTHER RESTRICTIONS AND RULES.
This chapter does not affect the authority of a municipality to:
(1) apply the municipality's regulations on short-term
rental units to a mixed-use residential or multifamily residential
development;
(2) adopt or enforce water quality protection
regulations to implement or comply with water quality requirements
under state or federal law, including Chapter 366, Health and
Safety Code;
(3) adopt or enforce a density bonus program or other
voluntary program that allows for site development standards that
are less restrictive than the standards described by this chapter;
or
(4) apply the following regulations that are generally
applicable to other developments in the municipality:
(A) except as otherwise provided by this chapter:
(i) sewer and water access requirements; or
(ii) building codes;
(B) stormwater mitigation requirements; or
(C) regulations related to historic
preservation, including protecting historic landmarks or property
in the boundaries of a local historic district.
SUBCHAPTER B. ZONING AND DEVELOPMENT REGULATIONS
Sec. 218.101. MIXED-USE RESIDENTIAL AND MULTIFAMILY
RESIDENTIAL USES ALLOWED. (a) Notwithstanding any other law and
subject to Subsection (c), a municipality shall allow mixed-use
residential use and development or multifamily residential use and
development in a zoning classification that allows office,
commercial, retail, warehouse, or mixed-use use or development as
an allowed use under the classification.
(b) Notwithstanding any other law and subject to Subsection
(c), a municipality may not require the change of a zoning district
or land use classification or regulation or an approval of an
amendment, exception, or variance to a zoning district or land use
classification or regulation prior to allowing a mixed-use
residential use or development or multifamily residential use or
development in an area covered by a zoning classification described
by Subsection (a). An amendment, exception, or variance to a zoning
district or land use classification or regulation includes a
special exception, zoning variance, site development variance,
subdivision variance, conditional use approval, special use
permit, comprehensive plan amendment, or other discretionary
approval to allow a mixed-use residential use or development or
multifamily residential use or development.
(c) This section does not apply to:
(1) a zoning classification that allows heavy
industrial use;
(2) land located within:
(A) 1,000 feet of an existing heavy industrial
use or development site; or
(B) 3,000 feet of an airport or military base; or
(3) an area designated by a municipality as a clear
zone or accident potential zone.
Sec. 218.102. REGULATION OF MIXED-USE RESIDENTIAL AND
MULTIFAMILY RESIDENTIAL USE OR DEVELOPMENT. (a) Notwithstanding
any other law, a municipality may not adopt or enforce an ordinance,
zoning restriction, or other regulation that:
(1) imposes on a mixed-use residential or multifamily
residential development:
(A) a limit on density that is more restrictive
than the greater of:
(i) the highest residential density allowed
in the municipality; or
(ii) 36 units per acre;
(B) a limit on building height that is more
restrictive than the greater of:
(i) the highest height that would apply to
an office, commercial, retail, or warehouse development
constructed on the site; or
(ii) 45 feet; or
(C) a setback or buffer requirement that is more
restrictive than the lesser of:
(i) a setback or buffer requirement that
would apply to an office, commercial, retail, or warehouse
development constructed on the site; or
(ii) 25 feet;
(2) requires a mixed-use residential or multifamily
residential development to provide:
(A) more than one parking space per dwelling
unit; or
(B) a multilevel parking structure;
(3) restricts the ratio of the total building floor
area of a mixed-use residential or multifamily residential
development in relation to the lot area of the development; or
(4) requires a multifamily residential development
not located in an area zoned for mixed-use residential use to
contain nonresidential uses.
(b) Notwithstanding any other law, if a municipal authority
responsible for approving a building permit or other authorization
required for the construction of a mixed-use residential or
multifamily residential development determines that a proposed
development meets municipal land development regulations in
accordance with this subchapter, the municipal authority:
(1) shall administratively approve the permit or other
authorization; and
(2) may not require further action by the governing
body of the municipality for the approval to take effect.
SUBCHAPTER C. FEES AND REGULATIONS APPLICABLE TO CONVERSION OF
CERTAIN USES
Sec. 218.201. DEFINITION. In this subchapter, "permit" has
the meaning assigned by Section 245.001.
Sec. 218.202. APPLICABILITY. This subchapter applies only
to a building or the structural components of the building that:
(1) is being used for office, retail, or warehouse
use;
(2) is proposed to be converted from nonresidential
occupancy to mixed-use residential or multifamily residential
occupancy for at least 65 percent of the building and at least 65
percent of each floor of the building that is fit for occupancy; and
(3) was constructed at least five years before the
proposed date to start the conversion.
Sec. 218.203. CERTAIN REGULATIONS PROHIBITED.
Notwithstanding any other law, a municipality may not, in
connection with the use, development, construction, or occupancy of
a building proposed to be converted to mixed-use residential or
multifamily residential use, require:
(1) the preparation of a traffic impact analysis or
other study relating to the effect the proposed converted building
would have on traffic or traffic operations;
(2) the construction of improvements or payment of a
fee in connection with mitigating traffic effects related to the
proposed converted building;
(3) the provision of additional parking spaces, other
than the parking spaces that already exist on the site of the
proposed converted building;
(4) the extension, upgrade, replacement, or
oversizing of a utility facility except as necessary to provide the
minimum capacity needed to serve the proposed converted building;
or
(5) a design requirement, including a requirement
related to the exterior, windows, internal environment of a
building, or interior space dimensions of an apartment, that is
more restrictive than the applicable minimum standard under the
International Building Code as adopted as a municipal commercial
building code under Section 214.216.
Sec. 218.204. IMPACT FEE PROHIBITED. Notwithstanding any
other law, a municipality may not impose an impact fee, as defined
by Section 395.001, on land where a building has been converted to
mixed-use residential or multifamily residential use unless the
land on which the building is located was already subject to an
impact fee before a building permit related to the conversion was
filed with the municipality.
SUBCHAPTER D. ENFORCEMENT
Sec. 218.301. CIVIL ACTION. (a) In this section, "housing
organization" means a:
(1) trade or industry group organized under the laws
of this state consisting of local members primarily engaged in the
construction or management of housing units;
(2) nonprofit organization organized under the laws of
this state that:
(A) provides or advocates for increased access or
reduced barriers to housing; and
(B) has filed written or oral comments with the
legislature; or
(3) nonprofit organization that is engaged in public
policy research, education, and outreach that includes housing
policy-related issues and advocacy.
(b) A housing organization or other person adversely
affected or aggrieved by a violation of this chapter may bring an
action for declaratory or injunctive relief against a municipality.
(c) The court shall award court costs and reasonable
attorney's fees to a claimant who prevails in an action brought
under this section.
(d) Notwithstanding any other law, including Chapter 15,
Civil Practice and Remedies Code, an action brought under this
section must be brought in a county in which all or part of the real
property that is the subject of the action is located.
(e) Notwithstanding any other law, the Fifteenth Court of
Appeals has exclusive intermediate appellate jurisdiction over an
action brought under this section.
SECTION 3. Section 395.011, Local Government Code, is
amended by amending Subsection (b) and adding Subsection (b-1) to
read as follows:
(b) Except as provided by Section 218.204 and Subsection
(b-1), political [Political] subdivisions may enact or impose
impact fees on land within their corporate boundaries or
extraterritorial jurisdictions only by complying with this
chapter.
(b-1) A political subdivision may not enact or impose an
impact fee on land within its[, except that impact fees may not be
enacted or imposed in the] extraterritorial jurisdiction for
roadway facilities.
SECTION 4. (a) Subchapter B, Chapter 218, Local Government
Code, as added by this Act, applies only to a mixed-use residential
or multifamily residential development project initiated on or
after the effective date of this Act.
(b) Subchapter C, Chapter 218, Local Government Code, as
added by this Act, applies only to a building proposed to be
converted to mixed-use residential or multifamily residential use
in which a building permit was submitted to a municipality on or
after the effective date of this Act.
SECTION 5. This Act takes effect September 1, 2025.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 840 passed the Senate on
March 24, 2025, by the following vote: Yeas 23, Nays 7; and that
the Senate concurred in House amendments on May 26, 2025, by the
following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 840 passed the House, with
amendments, on May 21, 2025, by the following vote: Yeas 106,
Nays 33, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor