By: Hughes  S.B. No. 840          (In the Senate - Filed January 17, 2025; February 13, 2025,   read first time and referred to Committee on Local Government;   March 18, 2025, reported adversely, with favorable Committee   Substitute by the following vote:  Yeas 5, Nays 2; March 18, 2025,   sent to printer.)Click here to see the committee vote     COMMITTEE SUBSTITUTE FOR S.B. No. 840 By:  Middleton     A BILL TO BE ENTITLED   AN ACT     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.          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 218.001.          (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   218.          SECTION 2.  Subtitle A, Title 7, Local Government Code, is   amended by adding Chapter 218 to read as follows:   CHAPTER 218.  REGULATION OF MIXED-USE AND MULTIFAMILY RESIDENTIAL   USE AND DEVELOPMENT IN CERTAIN MUNICIPALITIES   SUBCHAPTER A.  GENERAL PROVISIONS          Sec. 218.001.  DEFINITIONS. In this chapter:                (1)  "Heavy industrial use" means a storage,   processing, or manufacturing use:                      (A)  with processes using flammable or explosive   materials;                      (B)  with hazardous conditions; or                      (C)  that is noxious or offensive from odors,   smoke, noise, fumes, or vibrations.                (2)  "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.  The term includes the use   or development of a condominium.                (3)  "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. 218.002.  APPLICABILITY. This chapter applies only to   a municipality with a population greater than 90,000 that is wholly   or partly located in a county with a population greater than   300,000.          Sec. 218.003.  NO EFFECT ON OTHER RESTRICTIONS AND RULES.     This chapter does not affect the authority of a municipality to:                (1)  apply the municipality's regulations on short-term   rental units to a mixed-use residential or multifamily residential   development;                (2)  adopt or enforce water quality protection   regulations to implement or comply with water quality requirements   under state or federal law, including Chapter 366, Health and   Safety Code; or                (3)  adopt or enforce a density bonus program or other   voluntary program that allows for site development standards that   are less restrictive than the standards described by this chapter.   SUBCHAPTER B.  ZONING AND DEVELOPMENT REGULATIONS          Sec. 218.101.  MIXED-USE RESIDENTIAL AND MULTIFAMILY   RESIDENTIAL USES ALLOWED.  (a)  Notwithstanding any other law and   subject to Subsection (c), a municipality 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)  Notwithstanding any other law and subject to Subsection   (c), a municipality may not require the change of a zoning district   or land use classification or regulation or an approval of an   amendment, exception, or variance to a zoning district or 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 zoning   district or land use classification or regulation includes a   special exception, zoning variance, site development variance,   subdivision variance, conditional use approval, special use   permit, comprehensive plan amendment, or other discretionary   approval to allow a mixed-use residential use or development or   multifamily residential use or development.          (c)  This section does not apply to:                (1)  a zoning classification that allows heavy   industrial use; or                (2)  land located within 1,000 feet of an existing   heavy industrial use or development site, airport, or military   base.          Sec. 218.102.  REGULATION OF MIXED-USE RESIDENTIAL AND   MULTIFAMILY RESIDENTIAL USE OR DEVELOPMENT.  (a)  Notwithstanding   any other law, a municipality may not adopt or enforce an ordinance,   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                             (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)  Notwithstanding any other law, if a municipal 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 land development regulations in   accordance with this subchapter, the municipal authority:                (1)  shall administratively approve the permit or other   authorization; and                (2)  may not require further action by the governing   body of the municipality for the approval to take effect.   SUBCHAPTER C.  FEES AND REGULATIONS APPLICABLE TO CONVERSION OF   CERTAIN USES          Sec. 218.201.  DEFINITION. In this subchapter, "permit" has   the meaning assigned by Section 245.001.          Sec. 218.202.  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. 218.203.  FEE WAIVER. Notwithstanding any other law, a   municipality 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 has adopted an accelerated   residential building permit review process.          Sec. 218.204.  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 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. 218.205.  CERTAIN REGULATIONS PROHIBITED.   Notwithstanding any other law, a municipality 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 additional parking spaces, other   than the parking spaces that already exist on the site of the   proposed converted building;                (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;   or                (5)  a design requirement, including a requirement   related to the exterior, windows, internal environment of a   building, or interior space dimensions of an apartment, that is   more restrictive than the applicable minimum standard under the   International Building Code as adopted as a municipal commercial   building code under Section 214.216.          Sec. 218.206.  IMPACT FEE PROHIBITED. Notwithstanding any   other law, a municipality 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.   SUBCHAPTER D.  ENFORCEMENT          Sec. 218.301.  CIVIL ACTION. (a)  In this section, "housing   organization" means a:                (1)  trade or industry group organized under the laws   of this state consisting of local members primarily engaged in the   construction or management of housing units;                (2)  nonprofit organization organized under the laws of   this state that:                      (A)  provides or advocates for increased access or   reduced barriers to housing; and                      (B)  has filed written or oral comments with the   legislature; or                (3)  nonprofit organization that is engaged in public   policy research, education, and outreach that includes housing   policy-related issues and advocacy.          (b)  Except as provided by Subsection (c), a person adversely   affected or aggrieved by a violation of this chapter may bring an   action for economic damages or declaratory or injunctive relief   against a municipality or an officer of a municipality in the   officer's official capacity.          (c)  A housing organization may bring an action for   declaratory or injunctive relief for a violation of this chapter   against a municipality or an officer of a municipality in the   officer's official capacity.          (d)  A claimant who prevails in an action brought under   Subsection (b) or (c) is entitled to recover court costs and   reasonable attorney's fees.          (e)  Notwithstanding any other law, including Chapter 15,   Civil Practice and Remedies Code, an action brought under this   section must be brought in a county in which all or part of the real   property that is the subject of the action is located.          (f)  Notwithstanding any other law, the Fifteenth Court of   Appeals has exclusive intermediate appellate jurisdiction over an   action brought under this section.          (g)  Governmental immunity of a municipality to suit and from   liability is waived to the extent of liability created by this   section.  Official immunity of a municipal officer or employee is   waived to the extent of liability created by this section.          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 218.206 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 218, 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 218, 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 on or   after the effective date of this Act.          SECTION 5.  This Act takes effect September 1, 2025.     * * * * *