S.B. No. 785 amends the Occupations Code to enhance the regulation of new HUD-code manufactured housing in Texas. The bill stipulates that municipalities must allow the installation of HUD-code manufactured homes for residential use in designated areas, and applications for such installations are automatically granted unless denied in writing within 45 days. Additionally, local governmental units are prohibited from requiring permits, fees, or bonds for the transportation and installation of manufactured homes by licensed retailers or installers, although they can charge for actual costs incurred during transportation. A new subsection specifies that municipalities cannot require specific use permits for new HUD-code manufactured homes if they comply with federal law and if similar permits are not required for other residential properties in the same zoning classification.

Furthermore, the bill mandates that municipalities with zoning regulations must permit the installation of new HUD-code manufactured homes within at least one residential zoning classification or district. It also requires municipalities to indicate compliant areas on their zoning maps. However, the bill allows municipalities to maintain ordinances protecting historic landmarks and does not affect existing deed restrictions established before January 2, 2025. The act is set to take effect on September 1, 2026.

Statutes affected:
Introduced: Occupations Code 1201.008 (Occupations Code 1201)
Senate Committee Report: Occupations Code 1201.008 (Occupations Code 1201)
Engrossed: Occupations Code 1201.008 (Occupations Code 1201)
House Committee Report: Occupations Code 1201.008 (Occupations Code 1201)
Enrolled: Occupations Code 1201.008 (Occupations Code 1201)