S.B. No. 840 is a legislative bill aimed at regulating municipal zoning and development for mixed-use and multifamily residential projects in Texas. It introduces a new section, 211.0011, to the Local Government Code, which establishes that zoning regulations for these developments must adhere to the provisions of Chapter 218. This chapter defines important terms and applies specifically to municipalities with populations over 150,000 in counties with populations exceeding 300,000. The bill prohibits municipalities from imposing restrictive density limits, building height restrictions, and parking requirements on these developments. Additionally, it states that municipalities cannot require traffic impact analyses or additional parking for buildings converting from nonresidential to mixed-use or multifamily residential use, provided they meet certain criteria.

The bill also amends Section 395.011 of the Local Government Code, modifying Subsection (b) and adding a new Subsection (b-1). This amendment clarifies that political subdivisions can only impose impact fees on land within their corporate boundaries or extraterritorial jurisdictions in accordance with the chapter's provisions, and specifically prohibits imposing impact fees for roadway facilities on land within their extraterritorial jurisdiction. New provisions under Subchapter B and Subchapter C of Chapter 218 will apply exclusively to mixed-use residential or multifamily residential development projects initiated or building conversions proposed after the effective date of the Act, which is set for September 1, 2025.

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)