TexasSB 247789th Legislature Regular SessionSenateWALLET

Relating to certain municipal regulation of conversion of certain office buildings to mixed-use and multifamily residential occupancy.

Sponsored By: Paul Bettencourt (Republican), Jared Patterson

Signed by Governor

City Government--Land Use & ZoningCivil Remedies & LiabilitiesCounty Government--Land Use & ZoningFees & Other Nontax Revenue--LocalHousing--GeneralPERMITSATTORNEY GENERAL

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Developers avoid roadway fees outside city limits

Beginning September 1, 2025, Texas political subdivisions cannot enact or impose roadway impact fees in their extraterritorial jurisdiction. This is land outside their boundaries where they have certain powers. The ban removes this development charge and is not limited to office-to-housing conversions. The law does not specify household savings.

Fewer barriers to turning offices into homes

Texas cities must use simpler approval rules for eligible office-to-housing permits received on or after September 1, 2025. Covered cities have more than 150,000 people and lie partly or wholly in counties with more than 300,000 people. Buildings must be used mainly as offices and built at least five years before conversion begins. Housing must occupy at least 65% of the building and each floor fit for occupancy. Mixed-use housing and multifamily buildings with three or more homes qualify, including condos. Heavy-industrial zones and sites within 1,000 feet of heavy industrial use or development are excluded. Sites within 3,000 feet of airports or military bases are also excluded. Another exclusion covers designated military flight clear or accident zones within 15,000 feet of a military-base boundary. Cities cannot require traffic studies, traffic mitigation fees, parking beyond existing on-site spaces, or utility work beyond minimum capacity. They cannot require zoning changes or other discretionary land-use approvals, or require nonresidential uses in qualifying multifamily conversions. Design rules cannot exceed the city's adopted minimum International Building Code standards. Density limits cannot fall below the greater of 36 homes per acre or the city's highest existing residential density. Floor-area ratio limits cannot fall below the site's maximum or, without added height or site coverage, 120% of the existing ratio. This ratio compares total floor space with land area. Cities cannot reduce allowed site coverage or paved and other water-blocking cover below existing levels. They cannot add drainage or water-quality requirements when water-blocking cover does not increase. Once the city finds a conversion complies with the chapter's rules, staff must approve it without another governing-body action. Affected people and qualifying housing organizations can sue to stop violations or obtain a court ruling. Winning plaintiffs may receive reasonable attorney's fees and costs. Cases belong in the property's county, with intermediate appeals handled exclusively by the Fifteenth Court of Appeals.

Limited fees for office-to-housing developers

For eligible conversion permits received starting September 1, 2025, covered Texas cities generally cannot impose impact fees on converted land. These fees help pay for public infrastructure. An exception allows fees when the land was already subject to them before the conversion permit application was filed. Water and wastewater fees also require increased demand for those services. The conversion rules cover cities above 150,000 people lying partly or wholly in counties above 300,000 people. Buildings must be mainly offices, at least five years old, with housing occupying at least 65% of the building and each occupiable floor. Heavy-industrial, airport, and military location exclusions also apply. Political subdivisions must follow these conversion protections before enacting or imposing impact fees.

Sponsors & Cosponsors

Sponsors

  • Paul Bettencourt

    Republican • Senate

  • Jared Patterson

    House

Cosponsors

  • Pat Curry

    House

  • James Frank

    House

  • Gary Gates

    House

  • Hillary Hickland

    House

  • Adam Hinojosa

    Republican • Senate

  • Don McLaughlin

    House

  • Penny Morales Shaw

    House

  • David Spiller

    House

  • Chris Turner

    House

  • Cody Vasut

    House

Roll Call Votes

All Roll Calls

Yes: 649 • No: 68

Senate vote • 5/30/2025

Record vote

Yes: 28 • No: 3

House vote • 5/28/2025

Record vote

Yes: 112 • No: 26

House vote • 5/27/2025

Record vote

Yes: 137 • No: 2

House vote • 5/27/2025

Record vote

Yes: 123 • No: 18

House vote • 5/27/2025

Record vote

Yes: 128 • No: 4

Senate vote • 5/8/2025

Record vote

Yes: 28 • No: 3

Senate vote • 5/8/2025

Record vote

Yes: 28 • No: 3

Senate vote • 5/8/2025

Record vote

Yes: 28 • No: 3

Senate vote • 5/8/2025

Record vote

Yes: 26 • No: 5

House vote • Unknown

Committee vote: Land & Resource Management

Yes: 6 • No: 0

Senate vote • Unknown

Committee vote: Local Government

Yes: 5 • No: 1

Actions Timeline

  1. Effective on 9/1/25

    6/20/2025House
  2. Signed by the Governor

    6/20/2025House
  3. Sent to the Governor

    6/2/2025House
  4. Signed in the House

    6/2/2025House
  5. Signed in the Senate

    6/1/2025Senate
  6. Reported enrolled

    5/31/2025Senate
  7. Senate concurs in House amendment(s)-reported

    5/31/2025House
  8. Record vote

    5/30/2025Senate
  9. Senate concurs in House amendment(s)

    5/30/2025Senate
  10. Read

    5/30/2025Senate
  11. House amendment(s) laid before the Senate

    5/30/2025Senate
  12. House passage as amended reported

    5/28/2025Senate
  13. Statement(s) of vote recorded in Journal

    5/28/2025House
  14. Record vote (RV#3848)

    5/28/2025House
  15. Passed

    5/28/2025House
  16. Read 3rd time

    5/28/2025House
  17. Statement(s) of vote recorded in Journal

    5/27/2025House
  18. Record vote (RV#3714)

    5/27/2025House
  19. Passed to 3rd reading as amended

    5/27/2025House
  20. Statement(s) of vote recorded in Journal

    5/27/2025House
  21. Record vote (RV#3713)

    5/27/2025House
  22. Amended (2-Patterson)

    5/27/2025House
  23. Statement(s) of vote recorded in Journal

    5/27/2025House
  24. Record vote (RV#3712)

    5/27/2025House
  25. Amended (1-Patterson)

    5/27/2025House

Bill Text

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