The bill, S.B. No. 673, introduces a new chapter to the Local Government Code that regulates municipal and county oversight of accessory dwelling units (ADUs). It defines an accessory dwelling unit as a residential unit that is independent of the primary dwelling, located on a lot that is either not zoned or zoned for single-family homes or duplexes, and serves as a complete living facility. The bill outlines specific regulations that municipalities and counties cannot impose on ADUs, such as prohibiting their construction before or concurrently with the primary dwelling, requiring owner occupancy, or imposing excessive parking requirements. Additionally, it allows municipalities and counties to adopt less restrictive standards for ADUs and provides guidelines for permit approval processes.

The legislation also stipulates that municipalities or counties with populations below certain thresholds (150,000 for municipalities and 300,000 for counties) are exempt from some of the more stringent regulations if they have already adopted regulations that meet specific criteria. Furthermore, the bill clarifies that it does not override existing historic preservation rules or homeowners association regulations that may limit or prohibit ADUs. Property owners are granted the right to take legal action against municipalities or counties that violate these provisions, with the possibility of recovering attorney's fees if they prevail. The act is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

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