TexasSB 84089th Legislature Regular SessionSenateWALLET

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.

Sponsored By: Daniel Alders, Sheryl Cole, Cole Hefner, Bryan Hughes (Republican)

Signed by Governor

City Government--Land Use & ZoningCivil Remedies & LiabilitiesCounty Government--Land Use & ZoningFees & Other Nontax Revenue--LocalHousing--GeneralPolitical SubdivisionsVehicles & Traffic--GeneralPERMITS

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Cities must allow more housing options

For projects started on or after September 1, 2025, covered Texas cities must allow housing in office, commercial, retail, warehouse, and mixed-use zones. Covered cities have over 150,000 residents and lie partly or fully in counties with over 300,000 residents. Cities cannot require a zoning or land-use change. Mixed-use projects must have at least 65% residential space; multifamily projects must have at least three homes, including condominiums. Exceptions cover zones allowing heavy industry, land within 1,000 feet of existing heavy industry, and land within 3,000 feet of airports or military bases. Designated clear zones and accident potential zones are also excluded. Cities cannot set density limits below 36 homes per acre or their highest residential density, whichever is greater. Height limits cannot be below 45 feet or the applicable nonresidential height limit, whichever is greater. Required setbacks and buffers cannot exceed 25 feet or the applicable nonresidential requirement, whichever is less. Cities cannot require more than one parking space per home, multilevel parking, or limits on floor space relative to lot size. Outside mixed-use zones, cities cannot require multifamily projects to include nonresidential uses. Permits meeting applicable rules receive staff approval without further city governing-body action. Generally applicable rules outside this law's scope remain enforceable, including building codes, historic protections, and water and sewer access rules.

Fewer costs for building housing conversions

The law limits city requirements for converting office, retail, or warehouse buildings into mixed-use or multifamily housing. It covers Texas cities with over 150,000 residents that lie partly or fully in counties with over 300,000 residents. Buildings must be at least five years old when conversion starts. Housing must occupy at least 65% of the building and at least 65% of each usable floor. These rules cover building-permit applications submitted on or after September 1, 2025. Cities cannot require traffic studies, traffic-related payments or improvements, more parking than already exists, or multilevel parking. Required utility work cannot exceed the minimum capacity needed to serve the proposed building. Design rules cannot exceed the applicable minimum standards under the city's adopted International Building Code. Cities cannot impose impact fees on converted land unless it was already subject to those fees before the permit filing.

Housing groups can challenge city violations

Beginning September 1, 2025, qualifying housing groups and people harmed by city violations can sue to enforce these housing rules. Eligible groups include local housing-builder or manager trade groups, housing-access nonprofits that filed legislative comments, and housing-policy research or outreach nonprofits. Claimants can seek a ruling on their rights or a court order requiring compliance. Winning claimants receive court costs and reasonable lawyer fees. Cases must be filed in a county containing some or all of the property. The Fifteenth Court of Appeals alone handles intermediate appeals.

No roadway impact fees outside cities

Beginning September 1, 2025, Texas local governments cannot impose roadway impact fees in their extraterritorial jurisdiction. This means nearby land outside city limits where they have certain legal powers. The ban is not limited to the large cities covered by the housing-development rules. It removes this development charge, but does not guarantee lower housing prices.

Sponsors & Cosponsors

Sponsors

  • Daniel Alders

    House

  • Sheryl Cole

    House

  • Cole Hefner

    House

  • Bryan Hughes

    Republican • Senate

Cosponsors

  • Trent Ashby

    House

  • Giovanni Capriglione

    House

  • Charles Cunningham

    House

  • Pat Curry

    House

  • James Frank

    House

  • Gary Gates

    House

  • Mary E. González

    House

  • Hillary Hickland

    House

  • Janie Lopez

    House

  • Tan Parker

    Republican • Senate

  • David Spiller

    House

  • James Talarico

    House

  • Chris Turner

    House

Roll Call Votes

All Roll Calls

Yes: 381 • No: 84

Senate vote • 5/26/2025

Record vote

Yes: 31 • No: 0

House vote • 5/21/2025

Record vote

Yes: 106 • No: 33

House vote • 5/20/2025

Record vote

Yes: 108 • No: 23

Senate vote • 3/24/2025

Record vote

Yes: 23 • No: 7

Senate vote • 3/24/2025

Record vote

Yes: 30 • No: 0

Senate vote • 3/24/2025

Record vote

Yes: 24 • No: 6

Senate vote • 3/24/2025

Record vote

Yes: 24 • No: 6

Senate vote • 3/24/2025

Record vote

Yes: 23 • No: 7

House vote • Unknown

Committee vote: Land & Resource Management

Yes: 7 • No: 0

Senate vote • Unknown

Committee vote: Local Government

Yes: 5 • No: 2

Actions Timeline

  1. Effective on 9/1/25

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

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

    5/28/2025House
  4. Signed in the House

    5/28/2025House
  5. Signed in the Senate

    5/27/2025Senate
  6. Senate concurs in House amendment(s)-reported

    5/27/2025House
  7. Reported enrolled

    5/26/2025Senate
  8. Record vote

    5/26/2025Senate
  9. Senate concurs in House amendment(s)

    5/26/2025Senate
  10. Read

    5/26/2025Senate
  11. House amendment(s) laid before the Senate

    5/26/2025Senate
  12. House passage as amended reported

    5/21/2025Senate
  13. Statement(s) of vote recorded in Journal

    5/21/2025House
  14. Record vote (RV#3127)

    5/21/2025House
  15. Passed as amended

    5/21/2025House
  16. Amended (1-Hefner)

    5/21/2025House
  17. Read 3rd time

    5/21/2025House
  18. Statement(s) of vote recorded in Journal

    5/20/2025House
  19. Record vote (RV#3068)

    5/20/2025House
  20. Passed to 3rd reading

    5/20/2025House
  21. Read 2nd time

    5/20/2025House
  22. Additional sponsor(s) authorized

    5/20/2025House
  23. Rules suspended

    5/20/2025House
  24. Placed on General State Calendar

    5/20/2025House
  25. Considered in Calendars

    5/16/2025House

Bill Text

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