/>iThe 2025 Texas Legislative Regular Session has wrapped up, introducing new laws that will directly affect real estate investors and developers starting September 1, 2025. Winstead continued its long-standing commitment to advocating for policies that facilitate growth and development throughout the session.
Senate Bill 840
Senate Bill 840 overrides municipal regulations to facilitate multifamily and mixed-use development, including condominium developments, in cities with a population of at least 150,000 in certain counties.
Where the population requirements are met, a municipality must allow mixed-use and multifamily development on land with zoning that allows office, commercial, retail, warehouse, or mixed-use use. It also reduces density, height, parking, setback, floor area requirements and limitations, and development regulations. Municipalities must administratively approve qualifying developments.
It also facilitates the conversion of office, retail, or warehouse buildings for multifamily or mixed-use developments. The bill also limits or eliminates certain Traffic Impact Analysis (“TIA”), mitigation, design standards, and impact fee requirements.
What you need to know: Where applicable, SB 840 will facilitate new multifamily and mixed-use development by limiting municipal regulatory barriers.
Senate Bill 17
Senate Bill 17 regulates the purchase or acquisition of real property by certain foreign individuals or entities, primarily motivated by national security concerns. The bill restricts foreign entities from acquiring real property in Texas, including agricultural land and other types deemed significant for national security. DPS, in consultation with the Homeland Security Council, can designate countries or entities as posing a risk, thereby affecting their ability to purchase property. Violations may result in substantial civil penalties, and the Attorney General may enforce SB 17.
What you need to know: Developers should be aware of restrictions on foreign property acquisition, which could impact partnerships or investments. Compliance is crucial to avoid substantial penalties. Developers with foreign entities or investors should ensure compliance and prepare for potential investigations. SB 17 requires vigilance about foreign involvement in real estate transactions. It remains uncertain how this will be handled with title companies during the acquisition and disposition of property.
House Bill 24
House Bill 24 outlines procedures for changes to zoning regulations or district boundaries within municipalities. Key provisions include increasing the threshold for protests of owners of land in the area immediately adjoining the area covered by the proposed change from 20 percent to 60 percent, and if such threshold is met, to be effective, the change must receive approval of a majority of the governing body, instead of three-fourths of the members of the governing body. In other words, this bill increases the threshold required for a successful protest of certain zoning changes. Also, changes that allow more residential development are presumed valid unless challenged within 60 days, and new public notice requirements apply.
What you need to know: Developers should be aware of new public notice requirements. The bill should also facilitate residential development by reducing the ability to trigger a supermajority vote by a city council to approve certain zoning changes.
House Bill 2559
House Bill 2559 addresses the use and extension of moratoriums on certain properties by municipalities. The bill specifies that a moratorium on property development adopted by a municipality expires 90 days after its adoption unless extended, ensuring that moratoriums are temporary and subject to review. To extend a moratorium, the municipality must hold a public hearing and adopt written findings to provide justification for any extension, describe progress made to address the cited issue, and specify the duration of the extension. This process is intended to ensure transparency and accountability. Additionally, the bill aims to restrict municipalities from adopting a new moratorium addressing the same issue, affecting the same type of property, or covering the same area within two years of the expiration of a previous moratorium, thereby aiming to prevent a city from utilizing moratoria as a way to block development. The bill also intends to repeal specific sections of the Local Government Code related to moratoria and streamline the legal framework governing their use.
What you need to know: Developers should plan projects with the understanding that moratoria may no longer be as indefinite as previously experienced.
Senate Bill 15
Senate Bill 15 relates to size and density requirements for single-family residential lots in municipalities with a population over 150,000 within counties with populations over 300,000. These municipalities would be prohibited from enforcing ordinances that require residential lots to be larger than 3,000 square feet, wider than 30 feet, or deeper than 75 feet. Density regulations cannot prevent single-family homes on lots of at least 3,000 square feet. Municipalities cannot impose certain restrictions on small lots, such as excessive setbacks, parking requirements, open space, or building height limits. Exceptions are allowed for environmental setbacks and aquifer protection. This bill aims to inhibit overly burdensome municipal regulations that hinder residential development.
What you need to know: The bill is intended to facilitate residential development by limiting a municipality’s ability to enforce regulations regarding minimum lot sizes, density, setbacks, parking, and other development requirements. Developers should be aware of exemptions for strategic locations.
Senate Bill 1566
Senate Bill 1566 requires a city to provide utilities if the land was removed from the city’s extraterritorial jurisdiction (“ETJ”) and the land is subject to the city’s Certificate of Convenience and Necessity (“CCN”) (within its service area), subject to certain conditions.
What you need to know: SB 1566 aims to facilitate the provision of utility services to certain lands that have been removed from a municipality’s extraterritorial jurisdiction. The goal is that these areas can be adequately served by utility providers under specified conditions.
Senate Bill 1883
Senate Bill 1883 introduces substantial modifications to the procedures that local governments must follow when contemplating the adoption or increase of impact fees. Key aspects of the bill include: (i) extended periods for citizens to examine the capital improvements plan, (ii) multiple voting sessions by the council with a higher adoption threshold requiring a two-thirds majority of the governing body, (iii) mandatory audits of the impact fee program, and (iv) a restriction preventing local governments from increasing fees more frequently than once every three years.
What you need to know: SB 1883 aims to enhance transparency and accountability in the process of adopting and increasing impact fees, ensuring public access to relevant information, and requiring thorough financial audits to justify fees.
House Bill 2512
House Bill 2512 amends the Local Government Code to address the applicability of certain provisions related to the extraterritorial jurisdiction of municipalities. It specifies conditions under which areas are exempt from certain municipal jurisdictional claims, particularly focusing on areas near military bases, areas with significant population growth, and areas within large municipalities. The bill provides exemptions for areas within five miles of military bases, areas with significant population growth, and areas within municipalities with populations exceeding 1.4 million. Additionally, it addresses the process for residents to petition for release from the ETJ.
What you need to know: Developers should assess whether their projects fall within the specified exemptions and consider the potential implications for municipal oversight and regulatory compliance.
Senate Bill 1844
Senate Bill 1844 introduces new requirements for the notification process related to the petition process for the Disannexation of an area for a municipality’s failure or refusal to provide services by changing the requisite petitioners from a majority of the qualified voters of the area to a majority of the property owners of the area. SB 1844 intends to mandate that notice of the petition should be given by posting a copy of the petition for 10 days in three public places within the annexed area.
Additionally, the petition must be published once in a newspaper of general circulation serving the area before the 15th day prior to the date the petition is first circulated. Proof of posting and publication must be attached to the petition presented to the secretary, including sworn affidavits from property owners and the publisher of the newspaper. The bill modifies the existing process by specifying the exact requirements for posting and publishing notices related to petitions. This includes the duration of posting, the number of locations, and the requirement for newspaper publication. It also outlines the necessary documentation to prove compliance with these requirements.
What you need to know: Developers involved in projects within annexed areas should be aware of the new notification requirements introduced by SB 1844. Compliance aims to ensure that petitions are valid and properly circulated. Developers should aim to make sure that the affidavits from property owners and newspaper publishers are correctly obtained and attached to the petitions.
Senate Bill 2477
Senate Bill 2477 addresses zoning and land use regulations, specifically focusing on amendments, exceptions, or variances that allow for the conversion of buildings to mixed-use residential or multifamily residential use. The bill outlines conditions under which these conversions can occur, including limits on impervious cover and site coverage, as well as additional drainage or water quality requirements. It also prohibits the imposition of impact fees related to these conversions. The bill introduces amendments to zoning districts or land use classifications, allowing for special exceptions, zoning variances, site development variances, subdivision variances, conditional use approvals, special use permits, comprehensive plan amendments, or other discretionary approvals for building conversions. It specifies that no additional impact fees can be imposed for these conversions, ensuring that developers are not burdened with extra costs.
What you need to know: Developers who plan to convert buildings to mixed-use or multifamily residential use should be aware of the possible new provisions under SB 2477. The bill aims to facilitate such conversions by allowing various zoning and land use amendments and prohibiting additional impact fees, potentially reducing costs associated with development.
Senate Bill 783
Senate Bill 783 amends regulations concerning the construction or alteration of residential and commercial buildings. It specifies exemptions to certain governmental regulations, particularly focusing on historical, cultural, or architectural significance. The bill outlines conditions under which buildings are exempt from specific regulatory requirements, including those related to energy and water conservation, plumbing standards, and outdoor lighting aimed at reducing light pollution. SB 783 amends Section 3000.002(c) of the Government Code, detailing exemptions for buildings located in historically significant areas, designated landmarks, and areas under specific conservation programs. It also addresses standards for plumbing products and energy codes, allowing for exemptions in cases where buildings meet certain historical or conservation criteria. Additionally, it establishes procedures for public comment on energy code amendments.
What you need to know: Developers who may be involved in projects within historically significant areas should be aware of the exemptions provided under SB 783. The bill facilitates construction and alteration by exempting certain buildings from stringent regulatory requirements, potentially reducing compliance costs.
Senate Bill 785
Senate Bill 785 regulates the installation of new HUD-code manufactured housing. It mandates that municipalities must permit the installation of these homes in areas deemed appropriate, such as subdivisions, planned unit developments, single lots, rental communities, or parks.
The bill specifies that applications for installation are automatically granted unless denied in writing within 45 days, with reasons for denial provided. It also restricts municipalities from requiring specific use permits for these homes if they comply with federal law and are treated similarly to other residential properties in the same zoning classification. The bill amends Section 1201.008 of the Occupations Code, adding provisions that prevent municipalities from imposing additional permits or fees for the transportation and installation of manufactured homes, except for actual costs incurred.
It also clarifies that municipalities retain the authority to enforce ordinances protecting historic landmarks and deed restrictions established before January 2, 2025. The bill does not apply to municipalities where all residential areas have deed restrictions prohibiting manufactured homes or lack business or industrial zoning.
What you need to know: Developers planning to install HUD-code manufactured homes should be aware of the streamlined application process under SB 785. The bill facilitates installation by limiting municipal requirements for additional permits, potentially reducing regulatory hurdles. Developers should ensure compliance with federal construction standards and assess local zoning classifications to determine if specific use permits are required. Additionally, they should be mindful of historic preservation ordinances and existing deed restrictions that may impact installation.
