S.B. No. 840 seeks to regulate municipal zoning and development specifically for mixed-use and multifamily residential projects in Texas by introducing a new section, 211.0011, to the Local Government Code. This section clarifies that zoning regulations for these types of developments are governed by Chapter 218, which defines relevant terms and applies only to municipalities with populations over 150,000 in counties exceeding 300,000. The bill prohibits municipalities from imposing stricter density limits, building height restrictions, and parking requirements on mixed-use and multifamily developments compared to other types of developments. Additionally, it outlines provisions for converting commercial buildings to mixed-use or multifamily occupancy, restricting municipalities from requiring traffic impact analyses or additional parking beyond what is mandated by the International Building Code.

The legislation also establishes that the Fifteenth Court of Appeals will have exclusive jurisdiction over actions related to these regulations and amends Section 395.011 of the Local Government Code to limit the imposition of impact fees by political subdivisions to their corporate boundaries or extraterritorial jurisdictions. Notably, it introduces a provision that prohibits impact fees for roadway facilities within extraterritorial jurisdictions. The new regulations will only apply to projects initiated or building permits submitted 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)