Relating to certain municipal regulation of conversion of certain office buildings to mixed-use and multifamily residential occupancy.

89(R) SB 2477 - Enrolled version - Bill Text

S.B. No. 2477

AN ACT

relating to certain municipal regulation of conversion of certain

office buildings to mixed-use and multifamily residential

occupancy.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle A, Title 7, Local Government Code, is

amended by adding Chapter 218 to read as follows:

CHAPTER 218.

REGULATION OF MIXED-USE AND MULTIFAMILY RESIDENTIAL

USE AND DEVELOPMENT IN CERTAIN MUNICIPALITIES

SUBCHAPTER A.

GENERAL PROVISIONS

Sec. 218.001. DEFINITIONS. In this chapter:

(1)

"Heavy industrial use" means a storage,

processing, or manufacturing use:

(A)

with processes using flammable or explosive

materials;

(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

residential condominium.

(4)

"Permit" has the meaning assigned by Section

245.001.

Sec.

218.002.

APPLICABILITY OF CHAPTER. This chapter

applies only to a municipality with a population greater than

150,000 that is wholly or partly located in a county with a

population greater than 300,000.

Sec.

218.003.

NO EFFECT ON OTHER RESTRICTIONS AND RULES.

This chapter does not limit:

(1)

a municipality 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

consecutive days;

(2)

a property owner from enforcing rules or deed

restrictions imposed by a property owners' association or by other

private agreement;

(3)

except as otherwise provided by this chapter, a

municipality from applying the following regulations that are

generally applicable to other developments in the municipality:

(A) sewer and water access requirements;

(B) building codes; or

(C) stormwater mitigation requirements; or

(4)

a municipality from enforcing a deed restriction,

to the extent authorized by Section 212.153.

SUBCHAPTER B.

FEES AND REGULATIONS APPLICABLE TO CONVERSION OF

CERTAIN USES

Sec.

218.101.

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

use that is located:

(1)

in an area subject to a zoning classification that

allows heavy industrial use; or

(2) within:

(A)

1,000 feet of an existing heavy industrial

use or development site;

(B) 3,000 feet of an airport or military base; or

(C)

15,000 feet of the boundary of a military

base if the area is designated by a municipality or joint airport

zoning board, as applicable, as a clear zone or accident potential

zone supporting military aviation operations.

Sec.

218.102.

CERTAIN REGULATIONS PROHIBITED. (a)

Notwithstanding any other law, a municipality 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

proposed converted building;

(3)

the provision of additional parking spaces, other

than the parking spaces that already exist on the site of the

proposed converted building;

(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

greater of:

(A)

the highest residential density allowed in

the municipality; or

(B) 36 units per acre;

(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;

(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

use;

(9)

a floor-to-area ratio that is less than the

greater of:

(A)

120 percent of the existing floor-to-area

ratio of the building, if the proposed conversion does not increase

the existing height or site coverage of the building; or

(B)

the highest floor-to-area ratio allowed for a

building on the site;

(10)

a limit on impervious cover or site coverage that

is less than the existing impervious cover or site coverage of the

building or site; or

(11)

an additional drainage, detention, or water

quality requirement, if the proposed conversion does not increase

the amount of impervious cover on the building site.

(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

use.

Sec.

218.103.

IMPACT FEE PROHIBITED. A municipality 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:

(1)

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 municipality; and

(2)

for an impact fee related to water and wastewater

facilities, the conversion increases the demand for water and

wastewater service for the building.

Sec.

218.104.

ADMINISTRATIVE APPROVAL REQUIRED.

Notwithstanding any other law, if a municipal 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 regulations in accordance with this subchapter, the

municipal authority:

(1)

shall administratively approve the permit or other

authorization; and

(2)

may not require further action by the governing

body of the municipality for the approval to take effect.

SUBCHAPTER C.

ENFORCEMENT

Sec.

218.201.

CIVIL ACTION. (a)

In this section, "housing

organization" means a:

(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

this state that:

(A)

provides or advocates for increased access or

reduced barriers to housing; and

(B)

has filed written or oral comments with the

legislature; or

(3)

nonprofit organization that is engaged in public

policy research, education, and outreach that includes housing

policy-related issues and advocacy.

(b)

A housing organization or other person adversely

affected or aggrieved by a violation of this chapter may bring an

action for declaratory or injunctive relief against a municipality.

(c)

A court shall award reasonable attorney's fees and court

costs to a prevailing claimant in an action brought under this

section.

(d)

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.

(e)

Notwithstanding any other law, the Fifteenth Court of

Appeals has exclusive intermediate appellate jurisdiction over an

action brought under this section.

SECTION 2. Section 395.011, Local Government Code, is

amended by amending Subsection (b) and adding Subsection (b-1) to

read as follows:

(b)
Except as provided by Section 218.103 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

chapter
.

(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

roadway facilities.

SECTION 3. Chapter 218, 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 on or after the

effective date of this Act.

SECTION 4. (a) This section takes effect only if S.B. 840,

89th Legislature, Regular Session, 2025, is enacted and becomes

law. If that legislation is not enacted or does not become law, this

section has no effect.

(b) It is the intent of the 89th Legislature, Regular

Session, 2025, that Chapter 218, Local Government Code, as added by

this Act, be harmonized with Chapter 218, Local Government Code, as

added by S.B. 840, 89th Legislature, Regular Session, 2025, and

that this Act may not be construed to supersede, limit, or narrow

the application of that legislation. To the extent that a provision

of Chapter 218, Local Government Code, as added by this Act,

irreconcilably conflicts with a provision enacted by S.B. 840, 89th

Legislature, Regular Session, 2025, it is the intent of the 89th

Legislature, Regular Session, 2025, that the provision enacted by

S.B. 840, 89th Legislature, Regular Session, 2025, shall control.

SECTION 5. This Act takes effect September 1, 2025.

______________________________

______________________________

President of the Senate

Speaker of the House

I hereby certify that S.B. No. 2477 passed the Senate on

May 8, 2025, by the following vote: Yeas 28, Nays 3; and that the

Senate concurred in House amendments on May 30, 2025, by the

following vote: Yeas 28, Nays 3.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 2477 passed the House, with

amendments, on May 28, 2025, by the following vote: Yeas 112,

Nays 26, two present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor