S.B. No. 1567 amends the Local Government Code by adding a new subchapter that outlines the authority of home-rule municipalities in Texas to regulate the occupancy of dwelling units. This subchapter specifically applies to municipalities with populations under 250,000 that are either home to a large institution of higher education or adjacent to one. The bill prohibits these municipalities from adopting zoning ordinances that limit the number of occupants in a dwelling unit based on age, familial status, occupation, relationship status, or the degree of relatedness among occupants. However, it allows municipalities to impose occupancy limits that are not more restrictive than one occupant per sleeping room with a minimum floor area of 70 square feet, plus one additional occupant for every additional 50 square feet.

Additionally, the bill clarifies that municipalities can still enforce health and safety standards related to occupancy, such as those found in building and fire codes, and it prohibits municipalities from requiring real estate brokers or agents to submit leases for review to determine the number of unrelated occupants. The subchapter also affirms that property owners' associations can enforce their own rules regarding occupancy. Individuals adversely affected by a municipality's violation of this subchapter can bring civil actions against the municipality, with provisions for attorney's fees and costs for prevailing claimants. The act is set to take effect on September 1, 2025.

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