S.B. No. 840 seeks to regulate municipal and county zoning laws in Texas specifically for mixed-use and multifamily residential developments. It introduces Section 211.0011 to Chapter 211 of the Local Government Code, clarifying that zoning regulations for these developments are subject to Chapter 249. The bill defines "mixed-use residential" and "multifamily residential" and applies these regulations to municipalities with populations over 60,000 and counties with populations exceeding 420,000. It prohibits municipalities and counties from imposing restrictive density limits, building height restrictions, and parking requirements on such developments. Additionally, if a proposed development complies with local land development regulations, the relevant authority must approve the necessary permits without further action from the governing body. The bill also eliminates fees related to the conversion of buildings to mixed-use or multifamily residential use.

Moreover, the bill addresses ad valorem tax rates and impact fees, stating that if a municipality or county violates certain sections of the Local Government Code, they cannot adopt an ad valorem tax rate exceeding their no-new-revenue tax rate for the next three tax years. It amends Section 395.011 to clarify that impact fees can only be imposed on land within corporate boundaries or extraterritorial jurisdictions if they comply with the relevant chapter, explicitly prohibiting impact fees for roadway facilities in extraterritorial jurisdictions. The new provisions will only apply to mixed-use or multifamily residential development projects initiated or building permits submitted on or after 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)