TX Senate Bill 840 & Other Land Use legislation effective September 1
- BV-WNA WebManager
- Aug 5
- 8 min read
Updated: Aug 14
Texas Senate Bill 840 was signed by Governor Abbott June 20, 2025, and is effective September 1, 2025. This new legislation will significantly alter zoning regulations in Texas, particularly for cities with populations over 150,000 in counties with over 300,000 residents. The new law aims to increase housing supply by streamlining the development of multifamily and mixed-use projects, specifically by allowing these projects "by right" in areas zoned for office, commercial, retail, warehouse, or mixed-use. This means developers will not need to rezone, seek variances, or go through public hearings to build these projects.
At the end of this summary is a list of the other Land Use bills that passed including Small Lots, Building Conversations, Zoning and Protests, and Home Based Businesses, and many others.
Here's a more detailed breakdown:
Target Areas:
The law primarily affects larger cities in Texas (those with populations over 150,000 in counties with over 300,000 residents).
Streamlined Development:
The law allows for the development of multifamily and mixed-use projects (with a minimum of 65% multifamily) in areas currently zoned for commercial, office, retail, warehouse, or mixed-use purposes.
"By Right" Development:
Developers can proceed with these projects without rezoning or public hearings, as long as they meet certain density and height requirements.
Density and Height:
The law sets minimum standards, requiring a density of at least 36 units per acre (or the highest residential density allowed in the municipality) and a height of at least 45 feet (or the height allowed by the city).
Parking Requirements:
The law also limits parking requirements to one space per dwelling unit, and prohibits municipalities from requiring multi-level parking structures.
Conversion of Existing Buildings:
The law facilitates the conversion of existing commercial buildings into multifamily or mixed-use developments, streamlining the process and waiving certain fees.
Addressing Housing Shortage:
The law is intended to address the state's housing shortage by increasing housing supply and potentially lowering costs.
Potential for Increased Housing:
Some estimates suggest that under this law hundreds of thousands of new multifamily units will be constructed.
Municipal Concerns:
While proponents highlight the potential benefits, some municipalities express concerns about the law's potential impact on infrastructure, urban planning, and the ability to manage growth.
This Post was AI generated.
BELOW IS A SUMMARY OF THE LAND USE LEGISLATION PASSED AND SIGNED INTO LAW THIS YEAR. THIS INFORMATION PROVIDED BY FORT WORTH GENERAL COUNSEL TO THE CITY ZONING COMMISSION VIA POWERPOINT. The information below was provided to the Zoning Commission on 8/13/2025 and was not intended to convey legal advice or guidance to the Zoning Commission. The City is currently working on updating city ordinances to comply with the new laws listed below that go into effect September 1, 2025.
LAND USE LEGISLATION FROM TEXAS 89TH LEGISTATIVE SESSION
SB 15 – SMALL LOT (RESIDENTIAL)
Summary: Allows residential small lots. Effective September 1, 2025.
City can’t require residential lots to be (1) larger than 3,000 sq. ft.; (2) wider than 30 feet; or (3) deeper than 75 feet.
For residential lots 4,000 sq ft or less (Small Lot), City limited on regulating setbacks, building plane, parking open space, height, bulk, and wall articulation.
Applicability: Applies to land in the City that:
Will be platted and zoned for single family homes;
Is five acres or more; and
Has no recorded plat
Does not apply to:
Area within 3,000 feet of an airport or military base; or
Area within 15,000 feet of a military base boundary if designated by City of or join airport zoning board as a military airport overlay zone with a clear zone and accident potential zone.
SB 840 – MIXED USE AND MULTIFAMILY DEVELOPMENT
Summary: Allows mixed use and multifamily by right. Effective September 1, 2025.
Development by Right:
Multifamily and mixed use allowed by right in zoning districts that allow office, commercial, retail, warehouse, as allowed uses under the classification.
Regulates:
Density – greater of the city’s highest allowed residential density or 36 units per acre,
Height – greater of maximum height that would be permitted for an office, commercial, retail or warehouse development or 45 feet
Setback – may not exceed the lesser of 25 feet or the setback that would apply to an office, commercial, retail or warehouse development constructed on site.
Parking – No more than one space per dwelling unit & can’t require a multilevel structured parking, and
Total building floor area – cannot restrict the building floor area in relation to the lot area.
Requires administrative approval – No variance, zoning changes or Council approval.
Does not apply to:
Zoning districts allowing heaving industrial use
Area within 1,000 feet of an existing heavy industrial use or development site
Area within 3,000 feet of an airport or military base; or
Area designated by City as a clear or accidental potential zone.
SB 840 & 2477 – BUILDING CONVERSIONS
Summary: Allows a building used for office, retail, or warehouse, to be converted to mixed use or multifamily if the building was constructed 5 years before the conversion. Effective September 1, 2025
Prohibits (1) TIA; (2) traffic improvements; (3) additional parking; (4) additional utilities except to meet minimum capacity; (5) certain density limits; (6) nonresidential use requirements; (7) design requirements; (8) zoning changes/variances; (9) certain floor to area ratios, certain impervious cover or site coverage limits; (10) additional drainage if impervious cover unchanged; or (11) impact fees unless land was subject to impact fees before building permit applied for.
Can enforce short term rental rules, water quality, and other regulations generally applicable to other developments in the City such as: storm water, sewer, building codes, and historic preservation.
Requires administrative approval
For building conversions, the above following do not apply to:
Zoning classification that allows heavy industrial use
Land located within (1) 1,000 feet of an existing heavy industrial use or development site; or (2) 3000 feet of an airport or military base; or (3) 15,000 feet of the boundary of a military base if the area is designated by the municipality or joint airport zoning board, as applicable, as a clear zone or accident potential zone supporting military aviation operations.
HB 24 – ZONING NOTICE AND PROTESTS
Summary: Changes requirements for zoning notice and protests. Effective September 1, 2025
Defines “Comprehensive Zoning Changes” as changes that: (1) will have the effect of allowing more residential and apply uniformly to each parcel in one or more zoning districts; (2) adopt a new zoning code or zoning map that applies to entire City; or (3) adopt a zoning overlay district that allows more residential development and includes an area along major roadway, highway, or transit corridor.
Changes protest requirements for Non-Comprehensive Zoning Changes.
Requires proposed zoning changes to be published in newspaper and on the City’s website.
A zoning change that allows more residential development is presumed valid if no action to invalidate within 60 days of the effective date.
For Comprehensive Zoning Changes only newspaper notice and mailed notice to nonconforming owners is required.
For proposed zoning change not applying to entire City, Zoning Commission must post sign:
On the property (or right-of-way if multiple properties)
10th day before zoning Commission until final Council determination
24 inches long by 48 inches wide;
Zoning Commission or applicant must provide, maintain and pay for sign.
HB 2464 – HOME BASED BUSINESS
Summary: Regulates Home Based Businesses. Effective September 1, 2025.
Home-Based Business (HBB) is defined as business that is operated from (1) residential property, (2) by owner or tenant of the property; and (3) for the purpose of:
Manufacturing, providing or selling a lawful good; or providing a lawful service.
No-impact home based business (NIHBB) is defined as a HB that:
Has at any time on the property where the business is operated a total number of employees and clients or patrons of the business that does not exceed the city’s occupancy limit for the property;
Does not generate on-street parking or substantial increase in traffic through the area; and
Operates in a manner in which none of its activities are visible from the street.
For NIHBBs – City can’t: prohibit them, require a permit to operate, require zoning to non-residential, require sprinklers if single detached or 2 unit multifamily.
City can require HBB to meet certain federal, state, and local regulations related to health and sanitation, fire code and building code, solid or hazardous waste, pollution and noise; that the HBB be compatible with residential use of the property where the HBB is located; and secondary use to the primary use as a residential dwelling
Allows the city to prohibit HBB from certain uses like selling of alcohol or illegal drugs or an SOB*.
OTHER LAND USE BILLS:
HB 3866 – Outdoor Storage Containers at Commercial Facilities
Defines intermediate bulk container recycling facility, allows cities to adopt an ordinance regulating where intermediate bulk container recycling facilities, and allows TCEQ to adopt regulations.
HB 2844 – Mobile Food Vendor Regulation Preemption
Preempts city regulations regarding mobile food vendor including permitting fees and licensing. Resolves enforcement and inspection issues.
SB 1567 – Occupancy of Dwelling Units
Applies to population of less than 250,000 + contain or adjacent to a campus of institution of higher education with a student enrollment of more than 20,000
Prohibits city from adopting or enforcing limits on number of people who may occupy a dwelling.
HB 517 – Property Owner Association Fees
Prohibits owner associations from assessing a fine against property owner planting or maintaining green turf or vegetation while the property is subject to residential watering restrictions.
HB 3234 – Regulating County Owned Buildings
Political subdivision in a county with a population greater than one million from requiring the county to obtain a building permit for any new construction or renovation of a county-owned building if work is supervised and inspected by state-licensed engineer or architect.
HB 2559 – Development Moratoria
New rules for cities who wish to impose a development moratorium.
HB 21 – Housing Finance Corporations
Amends current laws relating to Housing Finance Corporations.
SB 11106 – Public Improvement Districts
Establishes new rules for posting and assessment roll.
Annexation /ETJ/Platting/Impact Fees
HB 2025 – Tax receipts on Plats
HB 2512 – ETJ* Release
Rules regarding petition for release of an area from the ETJ.
SB 250 – Annexation of Connecting Railroad Right-of-Way
City may annex additional area certain railroad property and owners agree.
SB1566 – Cities Utilities in the ETJ
Allows city that holds a certificate of convenience and necessity to serve a tract of land that has been released from the City’s ETJ by petition or election.
SB 1844 – Disannexation
Rules regarding how property owners of an area may petition to disannex the area if the city fails or revues to provide certain services to the area.
SB 2419 – Disannexation of limited special districts
Provides limited district may exercise all power and duties granted to a former special district by law in the portion of a disannexed area located in the district if certain conditions are met.
SB 2965 – Removal of Territory from Emergency Services District Following Annexation
Provides a process to allow a city to be the sole provider of emergency services to a territory that is removed from an emergency services district.
SB 1883 - Impact Fees
Relates to the approval of land use assumptions, capital improvement plans, and impact fees.
Agricultural Related Bills:
SB 1035 – Agricultural Operations
Relates to private actions by a person aggrieved by a political subdivision enforcement of a nuisance action related to agricultural operations.
HB 4163 – Agricultural Operations
Prohibits cities from requiring owner or lessee of an agricultural operation to mow, bale, shred, or hoe material on the right of way that is adjacent to an agricultural operation.
SB 1948 – Agricultural Facility Regulation
Prohibits cities from enforcing an ordinance that requires installation of a fire protection sprinkler system in certain agricultural facilities.
Building Code Related Bills:
SB- 2835 – Single Stair-Way Regulations
Cities may allow apartment buildings to be served by a single stairway if the building meets certain conditions.
SB-1252 – Residential Energy Backup Systems
Prohibits a city from adopting or enforcement an ordinance or amendment to the National Electrical Code that would regulate the installation or inspection of a residential energy backup system.
SB 783 – Building Materials Exemption
Allows additional exemptions to current building materials preemptions related to certain codes.
Resources:
Texas Municipal League – City Related Bills Passed
ETJ* = In Texas, a city's Extra-Territorial Jurisdiction (ETJ) is the area outside its official city limits where the city can still exercise certain regulatory powers, particularly related to land use and development. This allows cities to manage growth and development in areas that are likely to become part of the city in the future.
SOB* = Sexually Oriented Business
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