House Bill No. 3404 seeks to regulate municipal and county zoning laws in Texas specifically for mixed-use and multifamily residential developments. It introduces a new section, 211.0011, to the Local Government Code, clarifying that zoning regulations for these developments are governed by Chapter 249. This chapter defines relevant terms and specifies that the regulations apply to municipalities with populations over 60,000 in counties with populations over 420,000, as well as to counties with populations over 420,000. The bill mandates that local governments must permit mixed-use and multifamily developments in zoning classifications that allow for office, commercial, retail, or warehouse uses, while prohibiting more restrictive regulations on density, building height, and parking than those for similar non-residential developments.

Additionally, the bill includes provisions that prevent municipalities from charging fees for converting buildings to mixed-use or multifamily residential use and allows for civil actions against municipalities for regulatory violations. It also addresses ad valorem tax rates and impact fees, stating that if a municipality or county is found in violation of certain sections, it cannot adopt a tax rate exceeding its no-new-revenue tax rate for the next three years. The bill amends Section 395.011 to limit impact fees to land within corporate boundaries or extraterritorial jurisdictions and prohibits such fees for roadway facilities in extraterritorial areas. The new provisions will apply only to projects initiated or permits submitted after the effective date of the Act, set for September 1, 2025.

Statutes affected:
Introduced: Local Government Code 395.011 (Local Government Code 395)