S.B. No. 840 introduces new regulations for municipal oversight of mixed-use and multifamily residential development projects, as well as the conversion of certain commercial buildings to residential use. The bill adds Section 211.0011 to the Local Government Code, defining "mixed-use residential" and "multifamily residential," and clarifying that zoning regulations for these developments are governed by Chapter 218. It specifically targets municipalities with populations over 150,000 in counties exceeding 300,000, outlining that municipalities cannot impose restrictive density limits, building height restrictions, or excessive parking requirements. If a proposed development meets local regulations, municipal authorities are required to approve the necessary permits without further action from the governing body.

Additionally, the bill establishes that the Fifteenth Court of Appeals will have exclusive jurisdiction over related actions and amends Section 395.011 of the Local Government Code to regulate how political subdivisions can impose impact fees. Notably, it prohibits the imposition of impact fees for roadway facilities within extraterritorial jurisdictions and clarifies that new regulations will only apply to projects initiated after the effective date of the Act, September 1, 2025, ensuring that existing projects 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)