S.B. No. 1567 amends the Local Government Code by adding Subchapter D, which establishes regulations for the occupancy of dwelling units in certain home-rule municipalities in Texas. This subchapter specifically applies to municipalities with populations under 250,000 that are either home to a large institution of higher education (with over 20,000 students) or are adjacent to such a campus. The bill defines "dwelling unit" and outlines that municipalities cannot adopt zoning ordinances that limit occupancy based on age, familial status, occupation, relationship status, or the degree of relatedness among occupants. However, municipalities may impose occupancy limits based on health and safety standards, as well as specific floor area requirements.

Additionally, the bill prohibits municipalities from requiring real estate brokers or agents to submit leases for review to determine the number of unrelated occupants in a dwelling unit. It clarifies that property owners' associations can still enforce their own rules and that individuals adversely affected by a municipality's violation of this subchapter can seek legal recourse, including declaratory judgments and injunctions. The bill is set to take effect on September 1, 2025.

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