Monitoring the Session

SB 840

Cities Over 150,000 Must Allow Apartments On Commercial Land

Became law, effective Sep 1, 2025

Verdict: No flags

No flagsInitial review
Sen. Bryan HughesRSenate 1

Initial review · graded Oct 22, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

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.

Caption from analyzed text · version H.

Summary

No rezoning vote, just staff approval. Housing trade groups that sue and win collect attorney’s fees.

The bill forces larger Texas cities to allow apartments and mixed-use housing on land already zoned for offices, shops, warehouses or mixed use, without a rezoning vote or special permit, and it caps local limits on density, height, setbacks and parking. It touches cities over 150,000 people in counties over 300,000, plus builders and owners converting office, retail or warehouse buildings at least five years old into housing. On the ground, qualifying projects get staff-level approval, conversions are spared traffic studies, new parking demands and most new impact fees, and housing trade groups, nonprofits or harmed persons can sue the city and collect attorney's fees if they win.

Receipt

The receipt

89R-SB840 · 2025-01-17

SOLD BY

+ 1 coauthor

ITEM

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.

WHAT IT DOES

No rezoning vote, just staff approval. Housing trade groups that sue and win collect attorney’s fees.

The bill forces larger Texas cities to allow apartments and mixed-use housing on land already zoned for offices, shops, warehouses or mixed use, without a rezoning vote or special permit, and it caps local limits on density, height, setbacks and parking. It touches cities over 150,000 people in counties over 300,000, plus builders and owners converting office, retail or warehouse buildings at least five years old into housing. On the ground, qualifying projects get staff-level approval, conversions are spared traffic studies, new parking demands and most new impact fees, and housing trade groups, nonprofits or harmed persons can sue the city and collect attorney's fees if they win.

CHARGES

[ ] NONE FOUND

TOTAL

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version F · source

Sources

Fiscal note · version F · May 21, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Received by the Secretary of the Senate
  2. Filed
  3. Read first time
  4. Referred to Local Government
  5. Scheduled for public hearing on . . .
  6. Considered in public hearing
  7. Testimony taken in committee
  8. Left pending in committee
  9. Considered in public hearing
  10. Vote taken in committee
  11. Reported favorably as substituted
  12. Committee report printed and distributed
  13. Placed on intent calendar
  14. Co-author authorized
  15. Rules suspended-Regular order of business
  16. Record vote
  17. Read 2nd time
  18. Amendment(s) offered FA1 Bettencourt
  19. Amended
  20. Record vote
  21. Amendment(s) offered FA2 Alvarado
  22. Amended
  23. Vote recorded in Journal
  24. Passed to engrossment as amended
  25. Record vote
  26. Three day rule suspended
  27. Record vote
  28. Read 3rd time
  29. Passed
  30. Record vote
  31. Reported engrossed
  32. Received from the Senate
  33. Read first time
  34. Referred to Land & Resource Management
  35. Scheduled for public hearing on . . .
  36. Considered in public hearing
  37. Committee substitute considered in committee
  38. Testimony taken/registration(s) recorded in committee
  39. Left pending in committee
  40. Considered in formal meeting
  41. Committee substitute considered in committee
  42. Reported favorably as substituted
  43. Comte report filed with Committee Coordinator
  44. Committee report distributed
  45. Committee report sent to Calendars
  46. Considered in Calendars
  47. Placed on General State Calendar
  48. Rules suspended
  49. Additional sponsor(s) authorized
  50. Read 2nd time
  51. Passed to 3rd reading
  52. Record vote RV#3068
  53. Statement(s) of vote recorded in Journal
  54. Read 3rd time
  55. Amended 1-Hefner
  56. Passed as amended
  57. Record vote RV#3127
  58. Statement(s) of vote recorded in Journal
  59. House passage as amended reported
  60. House amendment(s) laid before the Senate
  61. Read
  62. Senate concurs in House amendment(s)
  63. Record vote
  64. Reported enrolled
  65. Senate concurs in House amendment(s)-reported
  66. Signed in the Senate
  67. Signed in the House
  68. Sent to the Governor
  69. Signed by the Governor
  70. Effective on 9/1/25
FILED UNDER

SPEECH AND LAWFARE

THE TEXT

…“action for declaratory or injunctive relief against a municipality.”

Bill text, House committee report version (H)

The bill lets housing trade groups and advocacy nonprofits sue cities over this chapter, with court costs and attorney's fees awarded to claimants who win, and sends appeals to the Fifteenth Court of Appeals.

SIGNED FOR BY

House · 106 yea · 33 nay

Senate · 23 yea · 7 nay

Sources

House: Final passage · May 21, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · Mar 24, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Donors

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Jul 1, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

GOPAC Election Fund$250,000.00

GOPAC Election Fund

$250,000.00

Cash
$250,000.00
Paid by others
$0.00
Total
$250,000.00

Also funds 2 other sitting lawmakers.

Derived recipient stock · Jul 17, 2025 to Oct 15, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Jul 17, 2025 to Oct 15, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101028838, 101071548.

CRAFTPAC (Court Reform Action for Texas Families)$100,000.00

CRAFTPAC (Court Reform Action for Texas Families)

$100,000.00

Cash
$100,000.00
Paid by others
$0.00
Total
$100,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Sep 4, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Sep 4, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101067724.

Court Reform Action for Families Texas PAC$100,000.00

Court Reform Action for Families Texas PAC

$100,000.00

Cash
$100,000.00
Paid by others
$0.00
Total
$100,000.00

Also funds 32 other sitting lawmakers.

Derived recipient stock · Feb 20, 2026 to Oct 14, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Oct 13, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101071548.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

GOPAC Election Fund

$250,000.00

Cash
$250,000.00
Paid by others
$0.00
Total
$250,000.00

Also funds 2 other sitting lawmakers.

Derived recipient stock · Jul 17, 2025 to Oct 15, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Jul 17, 2025 to Oct 15, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101028838, 101071548.

×

CRAFTPAC (Court Reform Action for Texas Families)

$100,000.00

Cash
$100,000.00
Paid by others
$0.00
Total
$100,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Sep 4, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Sep 4, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101067724.

×

Court Reform Action for Families Texas PAC

$100,000.00

Cash
$100,000.00
Paid by others
$0.00
Total
$100,000.00

Also funds 32 other sitting lawmakers.

Derived recipient stock · Feb 20, 2026 to Oct 14, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Oct 13, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101071548.

Votes8

Senate May 26, 2025

Yea
31
Nay
0
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

Sources

Senator Hughes moved to concur in the House amendments to SB 840. The motion prevailed by the following vote: Yeas 31, Nays 0.

Published stock of positions for this vote, except where marked derived.

  • Yea: 31 (published)
  • Nay: 0 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

House May 21, 2025

Yea
106
Nay
33
Present, not voting
2
Absent
3
Excused
6
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 3127

SB 840, as amended, was passed by (Record 3127): 106 Yeas, 33 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 106 (published)
  • Nay: 33 (published)
  • Present, not voting: 2 (published)
  • Absent: 3 (derived from named list)
  • Excused: 6 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 20, 2025

Yea
108
Nay
23
Present, not voting
2
Absent
3
Excused
14
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 3068

CSSB 840 was passed to third reading by (Record 3068): 108 Yeas, 23 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 108 (published)
  • Nay: 23 (published)
  • Present, not voting: 2 (published)
  • Absent: 3 (derived from named list)
  • Excused: 14 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Senate Mar 24, 2025

Yea
23
Nay
7
Present, not voting
Not printed
Absent
0
Excused
1
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Sources

The bill was read third time and was passed by the following vote: Yeas 23, Nays 7.

Published stock of positions for this vote, except where marked derived.

  • Yea: 23 (published)
  • Nay: 7 (published)
  • Present, not voting: Not printed
  • Absent: 0 (derived from named list)
  • Excused: 1 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

Senate Mar 24, 2025

Yea
24
Nay
6
Present, not voting
Not printed
Absent
0
Excused
1
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Sources

Senator Hughes moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that CSSB 840 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 24, Nays 6.

Published stock of positions for this vote, except where marked derived.

  • Yea: 24 (published)
  • Nay: 6 (published)
  • Present, not voting: Not printed
  • Absent: 0 (derived from named list)
  • Excused: 1 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

Senate Mar 24, 2025

Yea
24
Nay
6
Present, not voting
Not printed
Absent
0
Excused
1
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Sources

CSSB 840 as amended was passed to engrossment by the following vote: Yeas 24, Nays 6.

Published stock of positions for this vote, except where marked derived.

  • Yea: 24 (published)
  • Nay: 6 (published)
  • Present, not voting: Not printed
  • Absent: 0 (derived from named list)
  • Excused: 1 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

Senate Mar 24, 2025

Yea
30
Nay
0
Present, not voting
Not printed
Absent
Not printed
Excused
1
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Sources

The amendment to CSSB 840 was read and was adopted by the following vote: Yeas 30, Nays 0.

Published stock of positions for this vote, except where marked derived.

  • Yea: 30 (published)
  • Nay: 0 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: 1 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

Senate Mar 24, 2025

Yea
23
Nay
7
Present, not voting
Not printed
Absent
0
Excused
1
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Sources

Senator Hughes moved to suspend the regular order of business to take up for consideration CSSB 840 at this time on its second reading: CSSB 840, 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. The motion prevailed by the following vote: Yeas 23, Nays 7.

Published stock of positions for this vote, except where marked derived.

  • Yea: 23 (published)
  • Nay: 7 (published)
  • Present, not voting: Not printed
  • Absent: 0 (derived from named list)
  • Excused: 1 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

Witnesses122
For
83
Against
32
On
7
Names

For

  • Allen Boone Humphries Robinson LLP1 registration
  • Amazon2 registrations
  • Americans for Prosperity1 registration
  • Americans for Prosperity, Texas1 registration
  • AURA1 registration
  • AURA ATX1 registration
  • Austin Chamber1 registration
  • Baptist General Convention of Texas Christian Life Commission1 registration
  • Caritas of Austin1 registration
  • Dallas Area Habitat for Humanity2 registrations
  • Dallas Housing Coalition1 registration
  • Downtown Austin Neighborhood Association1 registration
  • Ecclesia Church1 registration
  • Goldwater Institute1 registration
  • Habitat for Humanity Austin1 registration
  • JPMorgan Chase Holdings, LLC1 registration
  • Opportunity Austin1 registration
  • Real Estate Council of Austin2 registrations
  • Self10 registrations
  • Self; AIA Austin1 registration
  • Self; Americans for prosperity1 registration
  • Self; Andres Construction Services1 registration
  • Self; AURA1 registration
  • Self; Brundtland Development Group1 registration
  • Self; Cooper and Company2 registrations
  • Self; Dallas Housing Coalition1 registration
  • Self; Habitat for Humanity1 registration
  • Self; Institute for Justice2 registrations
  • Self; Lennar1 registration
  • Self; Reason Foundation1 registration
  • Self; Texans for Housing; BCS Habitat for Humanity1 registration
  • Self; Texans for Reasonable Solutions1 registration
  • Self; Texas A&M Student Government Association1 registration
  • Self; Texas chapter US Green Building Council1 registration
  • Self; Texas Society of Architects1 registration
  • TAAHP1 registration
  • Texans For Housing1 registration
  • Texans for Housing2 registrations
  • Texans For Reasonable Solutions1 registration
  • Texans for Reasonable Solutions1 registration
  • Texas 20362 registrations
  • Texas Affiliation of Affordable Housing Providers (TAAHP)1 registration
  • Texas Affilitation of Affordable Housing Providers1 registration
  • Texas Apartment Association2 registrations
  • Texas Appleseed1 registration
  • Texas Association of Builders2 registrations
  • Texas Association of Business2 registrations
  • Texas Business Leadership Council1 registration
  • Texas Catholic Conference of Bishops1 registration
  • Texas Conservative Coalition Research Institute1 registration
  • Texas Farm Bureau2 registrations
  • Texas Public Policy Foundation3 registrations
  • Texas REALTORS1 registration
  • Texas Realtors2 registrations
  • Texas Restaurant Association1 registration
  • Texas Society of Architects1 registration
  • TfRS1 registration
  • The Pew Charitable Trusts1 registration
  • The Texas Catholic Conference of Bishops1 registration
  • UnidosUS1 registration

Against

  • AmereIcan Planning Association, Texas Chapter1 registration
  • Arlington Chamber of Commerce1 registration
  • Arlington Economic Development Corporation1 registration
  • City of Corpus Christi1 registration
  • City of Dallas2 registrations
  • City of Garland2 registrations
  • City of Irving2 registrations
  • City of Leander1 registration
  • City of Lewisville Texas1 registration
  • City of McAllen1 registration
  • City of McKinney1 registration
  • City of Plano1 registration
  • City of San Antonio2 registrations
  • Round Rock Chamber1 registration
  • Self4 registrations
  • Self; American Planning Association, Texas Chapter1 registration
  • Self; City of Georgetown1 registration
  • Self; Texas Eagle Forum1 registration
  • Self; Texas Neighborhood Coalition2 registrations
  • Self; The Town of Flower Mound1 registration
  • Self; Town of Flower Mound1 registration
  • Self; True texas project1 registration
  • Texas Municipal League1 registration
  • Texas Recreation and Parks Society (TRAPS)1 registration

On

  • City of Austin2 registrations
  • City of Fort Worth1 registration
  • Self1 registration
  • Texas Appleseed1 registration
  • Texas Housers1 registration
  • Texas Municipal League1 registration
Sources

122 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Senate witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version F · source

Sources

Fiscal note · version F · May 21, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version H by claude-opus-5-5, Oct 22, 2026, against the published rubric.

Sources

Texas Senate · Filed Jan 17, 2025

06/20/2025 E Effective on 9/1/25

Texas Legislature Online · Introduced · Senate Committee Report · Engrossed · House Committee Report · Enrolled

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

Coauthors
Sponsors
Cosponsors

House committee · Land & Resource Management · Committee vote 7 aye, 0 nay, 2 absent · Out of committee

Senate committee · Local Government · Committee vote 5 aye, 2 nay · Out of committee

Companion

HB 3404 by Hefner (identical)

Subjects

City Government--Land Use & Zoning

Civil Remedies & Liabilities

County Government--Land Use & Zoning

Fees & Other Nontax Revenue--Local

Housing--General

Political Subdivisions

Vehicles & Traffic--General

PERMITS

Text

The text as introduced · 1,858 words

89R8608 DRS-F

By: Hughes
S.B. No. 840

A BILL TO BE ENTITLED

AN ACT

relating to certain municipal and county regulation of certain

multifamily and mixed-use 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 249.001.

(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

249.

SECTION 2. Subtitle C, Title 7, Local Government Code, is

amended by adding Chapter 249 to read as follows:

CHAPTER 249. REGULATION OF MIXED-USE AND MULTIFAMILY RESIDENTIAL

USE AND DEVELOPMENT IN CERTAIN MUNICIPALITIES AND COUNTIES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 249.001. DEFINITIONS. In this chapter:

(1) "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.

(2) "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. 249.002. APPLICABILITY. This chapter applies only to:

(1) a municipality with a population greater than

60,000 that is located in a county with a population greater than

420,000; and

(2) a county with a population greater than 420,000.

SUBCHAPTER B. ZONING AND DEVELOPMENT REGULATIONS

Sec. 249.101. MIXED-USE RESIDENTIAL AND MULTIFAMILY

RESIDENTIAL USES ALLOWED. (a) Notwithstanding any other law, a

municipality or county 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) A municipality or county may not require the change of a

land use classification or regulation or approval of an amendment,

exception, or variance to a 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 land use classification or regulation

includes a special exception, zoning variance, conditional use

approval, special use permit, or comprehensive plan amendment.

Sec. 249.102. REGULATION OF MIXED-USE RESIDENTIAL AND

MULTIFAMILY RESIDENTIAL USE OR DEVELOPMENT. (a) A municipality or

county may not adopt or enforce an ordinance, order, 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 county; 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 multi-level 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) If a municipal or county 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

or county land development regulations in accordance with this

subchapter the municipal or county authority:

(1) shall administratively approve the permit or other

authorization; and

(2) may not require further action by the governing

body of the municipality or county for the approval to take effect.

SUBCHAPTER C. FEES AND REGULATIONS

Sec. 249.201. DEFINITION. In this subchapter, "permit" has

the meaning assigned by Section 245.001.

Sec. 249.202. 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. 249.203. FEE WAIVER. A municipality or county may not

charge a fee in connection with the submission, review, or approval

of an application for a permit related to the use, development, or

construction of a building proposed to be converted to mixed-use

residential or multifamily residential use, including any fee for:

(1) acquiring a building permit;

(2) the closure of a street or sidewalk adjacent to the

proposed converted building; or

(3) an expedited permit review for the proposed

converted building if the municipality or county has adopted an

accelerated residential building permit review process.

Sec. 249.204. PARKLAND DEDICATION AND FEE PROHIBITED. (a)

In this section, "parkland," "parkland dedication," and "parkland

dedication fee" have the meanings assigned by Section 212.201.

(b) Notwithstanding Subchapter H, Chapter 212, a

municipality or county may not require the dedication of parkland

or impose a parkland dedication fee in connection with a building

proposed to be converted to mixed-use residential or multifamily

residential use.

Sec. 249.205. CERTAIN REGULATIONS PROHIBITED. A

municipality or county 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 more than one parking space per

dwelling unit; or

(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.

Sec. 249.206. IMPACT FEE PROHIBITED. A municipality or

county 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 or county.

Sec. 249.207. SHORT-TERM RENTAL REGULATION AUTHORIZED. A

municipality or county may apply the municipality's or county's

regulations on short-term rental units to a converted building.

SUBCHAPTER D. ENFORCEMENT

Sec. 249.301. CIVIL ACTION. (a) The following persons may

bring an action against a municipality or county for damages or

injunctive relief relating to a violation of Section 249.101 or

249.102:

(1) a person who applies for a permit or other

authorization in connection with a mixed-use residential

development or multifamily residential development project subject

to Section 249.101 or 249.102;

(2) a person eligible to apply for residency in a

mixed-use residential or multifamily residential development

project affected by the violation; or

(3) a nonprofit organization.

(b) A person adversely affected or aggrieved by a violation

of Section 249.203, 249.204, 249.205, or 249.206 may bring an

action for damages or injunctive relief against a municipality or

county.

(c) A claimant who prevails in an action brought under

Subsection (a) or (b) is entitled to recover:

(1) injunctive relief sufficient to enforce this

chapter;

(2) nominal and compensatory damages, including

economic loss; and

(3) court costs and reasonable attorney's fees.

(d) Notwithstanding any other law, including Chapter 15,

Civil Practice and Remedies Code, an action brought under

Subsection (a) may be brought in:

(1) the county in which all or a substantial part of

the events or omissions giving rise to the claim occurred;

(2) the county of residence for any one of the natural

person defendants at the time the cause of action accrued;

(3) the county of the principal office in this state of

any one of the defendants that is not a natural person; or

(4) the county of residence for the claimant if the

claimant is a natural person residing in this state.

(e) An action brought under Subsection (a) or (b) may not be

transferred to a different venue without the written consent of all

parties.

(f) Notwithstanding any other law, the Fifteenth Court of

Appeals has exclusive intermediate appellate jurisdiction over an

action brought under Subsection (a) or (b).

Sec. 249.302. ATTORNEY GENERAL ENFORCEMENT. (a) In this

section:

(1) "No-new-revenue tax rate" means the

no-new-revenue tax rate calculated under Chapter 26, Tax Code.

(2) "Tax year" has the meaning assigned by Section

1.04, Tax Code.

(b) A person may submit a complaint to the attorney general

of a suspected violation of Section 249.203, 249.204, 249.205, or

249.206.

(c) Notwithstanding any other law, if the attorney general

determines that a municipality or county has violated Section

249.101, 249.102, 249.203, 249.204, 249.205, or 249.206, the

municipality or county may not adopt an ad valorem tax rate that

exceeds the municipality or county's no-new-revenue tax rate for

the three tax years that begin on or after the date of the

determination.

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 249.206 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 249, 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 249, 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 or county

on or after the effective date of this Act.

SECTION 5. This Act takes effect September 1, 2025.