House Bill No. 3404 seeks to regulate municipal and county zoning laws in Texas concerning mixed-use and multifamily residential developments by introducing a new section, Section 211.0011, to the Local Government Code. This section clarifies that zoning regulations for these types of developments must comply with Chapter 249, which defines "mixed-use residential" and "multifamily residential." The bill mandates that such developments be permitted in zoning classifications that allow for office, commercial, retail, or warehouse uses without requiring changes to land use classifications or additional approvals. It also prohibits municipalities and counties from imposing excessive density limits, height restrictions, and parking requirements, while preventing them from charging fees related to the conversion of buildings to mixed-use or multifamily residential use.

Additionally, the bill includes provisions that restrict municipalities and counties from adopting ad valorem tax rates exceeding their no-new-revenue tax rate for three years if found in violation of specific sections of the law. It amends Section 395.011 to clarify that impact fees can only be imposed on land within corporate boundaries or extraterritorial jurisdictions, specifically prohibiting such fees for roadway facilities in extraterritorial jurisdictions. The new regulations will apply only to mixed-use and multifamily residential development projects initiated after the effective date of the Act, set for September 1, 2025, ensuring that existing projects are not retroactively affected.

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