S.B. No. 840 seeks to regulate municipal zoning and development specifically for mixed-use and multifamily residential projects in Texas. It introduces a new section, 211.0011, to the Local Government Code, which clarifies that zoning regulations for these developments are governed by Chapter 218. This chapter defines relevant terms and applies only to municipalities with populations over 150,000 in counties with populations exceeding 300,000. The bill prohibits municipalities from imposing certain restrictions, such as density limits exceeding 36 units per acre and requiring more than one parking space per dwelling unit. Additionally, it restricts municipalities from requiring traffic impact analyses or additional parking for buildings converting to mixed-use or multifamily residential use, provided they meet specific criteria.

The legislation also allows affected housing organizations to seek legal recourse against municipalities for violations of these regulations, thereby protecting the rights of developers and housing advocates. It establishes that the Fifteenth Court of Appeals will have exclusive intermediate appellate jurisdiction over related actions and amends Section 395.011 of the Local Government Code to clarify the conditions under which political subdivisions may impose impact fees. Furthermore, the new regulations will only apply to mixed-use or multifamily residential development projects initiated or building conversions proposed after the effective date of the Act, set for September 1, 2025, ensuring that existing projects or permits are not retroactively affected.

Statutes affected:
Introduced: Local Government Code 395.011 (Local Government Code 395)
Senate Committee Report: Local Government Code 395.011 (Local Government Code 395)
Engrossed: Local Government Code 395.011 (Local Government Code 395)
House Committee Report: Local Government Code 395.011 (Local Government Code 395)
Enrolled: Local Government Code 395.011 (Local Government Code 395)