SB 2477

relating to certain municipal and county regulation of conversion
of certain office buildings to mixed-use and multifamily
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  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)  "Heavy industrial use" means a storage,
processing, or manufacturing use:
(A)  with processes using flammable or explosive
(B)  with hazardous conditions; or
(C)  that is noxious or offensive from odors,
smoke, noise, fumes, or vibrations.
(2)  "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.  The term includes the use
or development of a condominium.
(3)  "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
(4)  "Permit" has the meaning assigned by Section
Sec. 249.002.  APPLICABILITY OF CHAPTER.  This chapter
(1)  a municipality with a population greater than
90,000 that is wholly or partly located in a county with a
population greater than 300,000; and
(2)  a county with a population greater than 300,000.
Sec. 249.003.  NO EFFECT ON OTHER RESTRICTIONS AND RULES.
(1)  a municipality or county from adopting or
enforcing an ordinance, regulation, or other measure:
(A)  to protect historic landmarks or include
properties within the boundaries of local historic districts; or
(B)  related to the use and occupancy of a
residential property that is rented for a period not longer than 30
(2)  a property owner from enforcing rules or deed
restrictions imposed by a property owners' association or by other
SUBCHAPTER B.  FEES AND REGULATIONS APPLICABLE TO CONVERSION OF
Sec. 249.101.  APPLICABILITY.  (a)  This subchapter applies
only to a building or the structural components of a building that:
(1)  is being used primarily for office use;
(2)  is proposed to be converted from primarily office
use 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.
(b)  This subchapter does not apply to a building proposed to
be converted to mixed-use residential or multifamily residential
(1)  in an area subject to a zoning classification that
allows heavy industrial use; or
(2)  within 1,000 feet of an existing heavy industrial
use or development site, airport, or military base.
Sec. 249.102.  FEE WAIVER.  Notwithstanding any other law, 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. 249.103.  PARKLAND DEDICATION AND FEE PROHIBITED.
(a)  In this section, "parkland," "parkland dedication," and
"parkland dedication fee" have the meanings assigned by Section
(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. 249.104.  CERTAIN REGULATIONS PROHIBITED.  (a)
Notwithstanding any other law, 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 use, require:
(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 additional parking spaces, other
than the parking spaces that already exist on the site of the
(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;
(5)  a limit on density applicable to the site of the
proposed converted building that is more restrictive than the
(A)  the highest residential density allowed in
(6)  a building proposed to be converted to multifamily
residential occupancy not located in an area zoned for mixed-use
residential use to include nonresidential uses;
(7)  a design requirement, including a requirement
related to the exterior, windows, internal environment of a
building, or interior space dimensions of an apartment, that is
more restrictive than the applicable minimum standard under the
International Building Code as adopted as a municipal commercial
building code under Section 214.216; or
(8)  the change of a zoning district or land use
classification or regulation or an approval of an amendment,
exception, or variance to a zoning district or land use
classification or regulation prior to allowing conversion of a
building to mixed-use residential use or multifamily residential
(b)  For the purposes of Subsection (a)(8), an amendment,
exception, or variance to a zoning district or land use
classification or regulation includes a special exception, zoning
variance, site development variance, subdivision variance,
conditional use approval, special use permit, comprehensive plan
amendment, or other discretionary approval to allow conversion of a
building to mixed-use residential use or multifamily residential
Sec. 249.105.  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. 249.106.  ADMINISTRATIVE APPROVAL REQUIRED.
Notwithstanding any other law, if a municipal or county authority
responsible for approving a building permit or other authorization
required for the conversion of a building to mixed-use residential
use or multifamily residential use determines that a proposed
conversion meets municipal or county 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.
Sec. 249.201.  CIVIL ACTION.  (a)  In this section, "housing
(1)  trade or industry group organized under the laws
of this state consisting of local members primarily engaged in the
construction or management of housing units;
(2)  nonprofit organization organized under the laws of
(A)  provides or advocates for increased access or
reduced barriers to housing; and
(B)  has filed written or oral comments with the
(3)  nonprofit organization that is engaged in public
policy research, education, and outreach that includes housing
policy-related issues and advocacy.
(b)  Except as provided by Subsection (c), a person adversely
affected or aggrieved by a violation of Section 249.102, 249.103,
249.104, 249.105, or 249.106 may bring an action for economic
damages or declaratory or injunctive relief against a municipality
or county or an officer of a municipality or county in the officer's
(c)  A housing organization may bring an action for
declaratory or injunctive relief for a violation of Section
249.102, 249.103, 249.104, 249.105, or 249.106 against a
municipality or county or an officer of a municipality or county in
the officer's official capacity.
(d)  A claimant who prevails in an action brought under
Subsection (b) or (c) is entitled to recover court costs and
(e)  Notwithstanding any other law, including Chapter 15,
Civil Practice and Remedies Code, an action brought under this
section must be brought in a county in which all or part of the real
property that is the subject of the action is located.
(f)  Notwithstanding any other law, the Fifteenth Court of
Appeals has exclusive intermediate appellate jurisdiction over an
action brought under this section.
(g)  Governmental immunity of a municipality or county to
suit and from liability is waived to the extent of liability created
by this section.  Official immunity of a municipal or county officer
or employee is waived to the extent of liability created by this
Sec. 249.202.  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 249.102, 249.103, 249.104,
(c)  Notwithstanding any other law, if the attorney general
determines that a municipality or county has violated Section
249.102, 249.103, 249.104, 249.105, or 249.106, the municipality or
county may not adopt an ad valorem tax rate that exceeds the
municipality's or county's no-new-revenue tax rate for the three
tax years that begin on or after the date of the determination.
SECTION 2.  Section 395.011, Local Government Code, is
amended by amending Subsection (b) and adding Subsection (b-1) to
(b)  Except as provided by Section 249.105 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 3.  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 4.  This Act takes effect September 1, 2025.