S.B. No. 1567 aims to regulate the occupancy of dwelling units in home-rule municipalities located near university campuses. The bill introduces a new subchapter to Chapter 211 of the Local Government Code, which defines key terms such as "dwelling unit" and "university." It establishes that municipalities cannot adopt or enforce 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, municipalities may 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 limits, as outlined in building codes, fire codes, and other relevant guidelines. It prohibits municipalities from requiring real estate brokers or agents to submit leases for review to determine the number of unrelated occupants. The bill also allows property owners to take legal action against municipalities for violations of this subchapter, waiving governmental immunity to the extent of liability created by the section. The act is set to take effect on September 1, 2025.

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