By: Bettencourt S.B. No. 2477
(In the Senate - Filed March 13, 2025; April 3, 2025, read
first time and referred to Committee on Local Government;
April 30, 2025, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 5, Nays 1; April 30, 2025,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 2477 By: Bettencourt
A BILL TO BE ENTITLED
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; or
(2) a property owner from enforcing rules or deed
restrictions imposed by a property owners' association or by other
private agreement.
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. FEE WAIVER. Notwithstanding any other law, a
municipality 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 has adopted an accelerated
residential building permit review process.
Sec. 218.103. 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 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 residential
use.
Sec. 218.104. 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. 218.105. 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 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.
Sec. 218.106. 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 218.105 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
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. This Act takes effect September 1, 2025.
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