S.B. No. 854 aims to regulate municipal oversight of multifamily and mixed-use developments on religious land in Texas. The bill introduces a new subchapter to Chapter 212 of the Local Government Code, defining key terms such as "heavy industrial use," "housing organization," "mixed-use," "multifamily," "religious land," and "religious organization." It stipulates that municipalities must permit multifamily and mixed-use developments on religious land and cannot impose certain zoning or land use changes, special exceptions, or variances that would hinder these developments. Additionally, the bill outlines specific prohibited municipal requirements, such as height restrictions below 40 feet and excessive setback requirements.

The legislation also establishes a duty for municipalities to approve applications for multifamily or mixed-use developments on religious land if they meet existing land development regulations, excluding those related to prohibited requirements. It allows affected individuals or housing organizations to take legal action against municipalities for violations of this subchapter, with provisions for declaratory judgments, injunctions, and damages. The bill emphasizes that it does not affect homeowners' associations or private agreements and maintains municipal authority over general regulations applicable to other developments. The act is set to take effect on September 1, 2025.

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