House Bill No. 878 aims to regulate residential land use and accessory dwelling units (ADUs) in Texas, specifically targeting municipalities with populations of 85,000 or more in counties with populations exceeding one million. The bill introduces new provisions in the Local Government Code, particularly under Subchapter D of Chapter 211, which limits residential zoning by prohibiting municipalities from enforcing lot size requirements larger than 2,500 square feet and density restrictions that yield fewer than 31.1 units per acre. It also sets regulations for small lots, including setback requirements and restrictions on parking and open space.

Additionally, the bill outlines specific regulations for ADUs, prohibiting political subdivisions from imposing restrictions such as owner occupancy requirements or excessive setback limitations. It establishes a streamlined permit approval process, mandating that applications for ADUs be processed without discretionary review within 60 days, with automatic approval if no decision is made in that timeframe. The bill allows for the application of existing zoning requirements to ADUs and empowers the attorney general to enforce compliance with these regulations. The provisions will take effect on September 1, 2025, with some sections effective from September 1, 2027.

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