HB 3404

relating to certain municipal and county regulation of certain
multifamily and mixed-use residential development projects and
conversion of certain commercial buildings to mixed-use and
multifamily residential occupancy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter A, Chapter 211, Local Government
Code, is amended by adding Section 211.0011 to read as follows:
Sec. 211.0011.  ZONING REGULATION OF MIXED-USE RESIDENTIAL
AND MULTIFAMILY RESIDENTIAL USE AND DEVELOPMENT.  (a)  In this
section, "mixed-use residential" and "multifamily residential"
have the meanings assigned by Section 249.001.
(b)  The authority under this chapter related to zoning
regulations and the determination of zoning district boundaries in
connection with mixed-use residential use and development and
multifamily residential use and development is subject to Chapter
SECTION 2.  Subtitle C, Title 7, Local Government Code, is
amended by adding Chapter 249 to read as follows:
CHAPTER 249.  REGULATION OF MIXED-USE AND MULTIFAMILY RESIDENTIAL
USE AND DEVELOPMENT IN CERTAIN MUNICIPALITIES AND COUNTIES
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 249.001.  DEFINITIONS.  In this chapter:
(1)  "Mixed-use residential," when used to describe
land use or development, means the use or development, as
applicable, of a site consisting of residential and nonresidential
uses in which the residential uses are at least 65 percent of the
total square footage of the development.
(2)  "Multifamily residential," when used to describe
land use or development, means the use or development, as
applicable, of a site for three or more dwelling units within one or
more buildings.  The term includes the use or development of a
Sec. 249.002.  APPLICABILITY.  This chapter applies only to:
(1)  a municipality with a population greater than
60,000 that is located in a county with a population greater than
(2)  a county with a population greater than 420,000.
SUBCHAPTER B.  ZONING AND DEVELOPMENT REGULATIONS
Sec. 249.101.  MIXED-USE RESIDENTIAL AND MULTIFAMILY
RESIDENTIAL USES ALLOWED.  (a)  Notwithstanding any other law, a
municipality or county shall allow mixed-use residential use and
development or multifamily residential use and development in a
zoning classification that allows office, commercial, retail,
warehouse, or mixed-use use or development as an allowed use under
(b)  A municipality or county may not require the change of a
land use classification or regulation or approval of an amendment,
exception, or variance to a land use classification or regulation
prior to allowing a mixed-use residential use or development or
multifamily residential use or development in an area covered by a
zoning classification described by Subsection (a).  An amendment,
exception, or variance to a land use classification or regulation
includes a special exception, zoning variance, conditional use
approval, special use permit, or comprehensive plan amendment.
Sec. 249.102.  REGULATION OF MIXED-USE RESIDENTIAL AND
MULTIFAMILY RESIDENTIAL USE OR DEVELOPMENT.  (a)  A municipality or
county may not adopt or enforce an ordinance, order, zoning
restriction, or other regulation that:
(1)  imposes on a mixed-use residential or multifamily
(A)  a limit on density that is more restrictive
(i)  the highest residential density allowed
in the municipality or county; or
(B)  a limit on building height that is more
restrictive than the greater of:
(i)  the highest height that would apply to
an office, commercial, retail, or warehouse development
(C)  a setback or buffer requirement that is more
restrictive than the lesser of:
(i)  a setback or buffer requirement that
would apply to an office, commercial, retail, or warehouse
development constructed on the site; or
(2)  requires a mixed-use residential or multifamily
residential development to provide:
(A)  more than one parking space per dwelling
(B)  a multi-level parking structure;
(3)  restricts the ratio of the total building floor
area of a mixed-use residential or multifamily residential
development in relation to the lot area of the development; or
(4)  requires a multifamily residential development
not located in an area zoned for mixed-use residential use to
(b)  If a municipal or county authority responsible for
approving a building permit or other authorization required for the
construction of a mixed-use residential or multifamily residential
development determines that a proposed development meets municipal
or county land development regulations in accordance with this
subchapter the municipal or county authority:
(1)  shall administratively approve the permit or other
(2)  may not require further action by the governing
body of the municipality or county for the approval to take effect.
SUBCHAPTER C.  FEES AND REGULATIONS
Sec. 249.201.  DEFINITION.  In this subchapter, "permit" has
the meaning assigned by Section 245.001.
Sec. 249.202.  APPLICABILITY.  This subchapter applies only
to a building or the structural components of the building that:
(1)  is being used for office, retail, or warehouse
(2)  is proposed to be converted from nonresidential
occupancy to mixed-use residential or multifamily residential
occupancy for at least 65 percent of the building and at least 65
percent of each floor of the building that is fit for occupancy; and
(3)  was constructed at least five years before the
proposed date to start the conversion.
Sec. 249.203.  FEE WAIVER.  A municipality or county may not
charge a fee in connection with the submission, review, or approval
of an application for a permit related to the use, development, or
construction of a building proposed to be converted to mixed-use
residential or multifamily residential use, including any fee for:
(1)  acquiring a building permit;
(2)  the closure of a street or sidewalk adjacent to the
proposed converted building; or
(3)  an expedited permit review for the proposed
converted building if the municipality or county has adopted an
accelerated residential building permit review process.
Sec. 249.204.  PARKLAND DEDICATION AND FEE PROHIBITED.  (a)
In this section, "parkland," "parkland dedication," and "parkland
dedication fee" have the meanings assigned by Section 212.201.
(b)  Notwithstanding Subchapter H, Chapter 212, a
municipality or county may not require the dedication of parkland
or impose a parkland dedication fee in connection with a building
proposed to be converted to mixed-use residential or multifamily
Sec. 249.205.  CERTAIN REGULATIONS PROHIBITED.  A
municipality or county may not, in connection with the use,
development, construction, or occupancy of a building proposed to
be converted to mixed-use residential or multifamily residential
(1)  the preparation of a traffic impact analysis or
other study relating to the effect the proposed converted building
would have on traffic or traffic operations;
(2)  the construction of improvements or payment of a
fee in connection with mitigating traffic effects related to the
(3)  the provision of more than one parking space per
(4)  the extension, upgrade, replacement, or
oversizing of a utility facility except as necessary to provide the
minimum capacity needed to serve the proposed converted building.
Sec. 249.206.  IMPACT FEE PROHIBITED.  A municipality or
county may not impose an impact fee, as defined by Section 395.001,
on land where a building has been converted to mixed-use
residential or multifamily residential use unless the land on which
the building is located was already subject to an impact fee before
a building permit related to the conversion was filed with the
Sec. 249.207.  SHORT-TERM RENTAL REGULATION AUTHORIZED.  A
municipality or county may apply the municipality's or county's
regulations on short-term rental units to a converted building.
Sec. 249.301.  CIVIL ACTION.  (a)  The following persons may
bring an action against a municipality or county for damages or
injunctive relief relating to a violation of Section 249.101 or
(1)  a person who applies for a permit or other
authorization in connection with a mixed-use residential
development or multifamily residential development project subject
(2)  a person eligible to apply for residency in a
mixed-use residential or multifamily residential development
project affected by the violation; or
(b)  A person adversely affected or aggrieved by a violation
of Section 249.203, 249.204, 249.205, or 249.206 may bring an
action for damages or injunctive relief against a municipality or
(c)  A claimant who prevails in an action brought under
Subsection (a) or (b) is entitled to recover:
(1)  injunctive relief sufficient to enforce this
(2)  nominal and compensatory damages, including
(3)  court costs and reasonable attorney's fees.
(d)  Notwithstanding any other law, including Chapter 15,
Civil Practice and Remedies Code, an action brought under
Subsection (a) may be brought in:
(1)  the county in which all or a substantial part of
the events or omissions giving rise to the claim occurred;
(2)  the county of residence for any one of the natural
person defendants at the time the cause of action accrued;
(3)  the county of the principal office in this state of
any one of the defendants that is not a natural person; or
(4)  the county of residence for the claimant if the
claimant is a natural person residing in this state.
(e)  An action brought under Subsection (a) or (b) may not be
transferred to a different venue without the written consent of all
(f)  Notwithstanding any other law, the Fifteenth Court of
Appeals has exclusive intermediate appellate jurisdiction over an
action brought under Subsection (a) or (b).
Sec. 249.302.  ATTORNEY GENERAL ENFORCEMENT.  (a)  In this
(1)  "No-new-revenue tax rate" means the
no-new-revenue tax rate calculated under Chapter 26, Tax Code.
(2)  "Tax year" has the meaning assigned by Section
(b)  A person may submit a complaint to the attorney general
of a suspected violation of Section 249.203, 249.204, 249.205, or
(c)  Notwithstanding any other law, if the attorney general
determines that a municipality or county has violated Section
249.101, 249.102, 249.203, 249.204, 249.205, or 249.206, the
municipality or county may not adopt an ad valorem tax rate that
exceeds the municipality or county's no-new-revenue tax rate for
the three tax years that begin on or after the date of the
SECTION 3.  Section 395.011, Local Government Code, is
amended by amending Subsection (b) and adding Subsection (b-1) to
(b)  Except as provided by Section 249.206 and Subsection
(b-1), political [Political] subdivisions may enact or impose
impact fees on land within their corporate boundaries or
extraterritorial jurisdictions only by complying with this
(b-1)  A political subdivision may not enact or impose an
impact fee on land within its[, except that impact fees may not be
enacted or imposed in the] extraterritorial jurisdiction for
SECTION 4.  (a)  Subchapter B, Chapter 249, Local Government
Code, as added by this Act, applies only to a mixed-use residential
or multifamily residential development project initiated on or
after the effective date of this Act.
(b)  Subchapter C, Chapter 249, Local Government Code, as
added by this Act, applies only to a building proposed to be
converted to mixed-use residential or multifamily residential use
in which a building permit was submitted to a municipality or county
on or after the effective date of this Act.
SECTION 5.  This Act takes effect September 1, 2025.