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.