S.B. No. 2477 introduces new regulations for the conversion of certain office buildings to mixed-use and multifamily residential occupancy in municipalities with populations over 150,000 that are located in counties with populations exceeding 300,000. The bill establishes Chapter 218 in the Local Government Code, which includes definitions for terms such as "heavy industrial use," "mixed-use residential," and "multifamily residential." It outlines the applicability of the chapter, stating that it applies to buildings primarily used for office purposes that are at least five years old and proposed for conversion to mixed-use or multifamily residential use, with specific requirements for the percentage of residential use.

The bill also prohibits municipalities from charging fees related to the conversion process, including building permits and parkland dedication fees, and restricts municipalities from imposing certain regulations that could hinder the conversion, such as traffic impact analyses and additional parking requirements. Furthermore, it mandates that if a municipal authority determines a proposed conversion meets the regulations, it must approve the permit administratively without further action from the governing body. The bill amends existing laws regarding impact fees, ensuring that no new impact fees can be imposed on land where a building is converted to mixed-use or multifamily residential use unless those fees were already in place prior to the conversion application. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Local Government Code 395.011 (Local Government Code 395)
Senate Committee Report: Local Government Code 395.011 (Local Government Code 395)