S.B. No. 854, introduced by Senator Middleton, aims to amend the Local Government Code by adding a new subchapter that regulates municipal oversight of multifamily and mixed-use developments on religious land. The bill defines 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 that municipalities have a duty 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, providing avenues for declaratory judgments, injunctions, and damages. The bill emphasizes that it does not affect a municipality's authority to enforce general regulations applicable to other developments and clarifies that it does not interfere with homeowners' associations or private agreements. The act is set to take effect on September 1, 2025.

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