BILL ANALYSIS

Senate Research Center	H.B. 4057
88R23180 DRS-F	By: DeAyala (Huffman)
	Local Government
	5/15/2023
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Historically, the City of Houston has largely regulated land development through deed restrictions enforced by homeowners/property associations. Property owners purchase property based upon the current restrictions, or lack thereof. Additionally, the City of Houston Charter requires a referendum to adopt a zoning ordinance.

The City of Houston recently created conservation districts in six pilot Houston neighborhoods. These districts will regulate many of the same items found in deed restrictions and potentially circumvent existing state law on the creation of deed restrictions by allowing 51 percent of property owners to implement newly created regulations without a property owner opt-out provision. Instead of regulations being enforced through private covenants like deed restrictions, the City of Houston is seeking to approve, monitor, and enforce the building design guidelines created by the newly formed conservation districts. Interested parties note that property owners in these newly created districts would not be afforded a one-year opt out from the newly created conservation districts as provided in state law for deed restrictions.

HB 4057 seeks to allow property owners in a conservation district the same right found in state law for newly created deed restrictions by providing for a one-year time period to opt out of the conservation district.

H.B. 4057 amends current law relating to the inclusion of a property in a conservation district by certain municipalities.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter A, Chapter 211, Local Government Code, by adding Section 211.0166, as follows:

Sec. 211.0166.� EXCLUSION FROM CERTAIN CONSERVATION DISTRICTS. (a) Defines "conservation district."

(b) Provides that this subsection applies only to a property located in a municipality with a population of two million or more. Provides that this subsection, notwithstanding any other law, applies regardless of whether the municipality has established a process for designating places or areas of historical, cultural, or architectural importance and significance through the adoption of zoning regulations or zoning district boundaries. Authorizes the owner of a property included within the boundaries of a conservation district authorized by ordinance to elect to exclude the property from the district by filing in the real property records for the county in which the property is located an acknowledged statement:

(1) describing the property by reference to a map or plat of the subdivision; and

(2) stating that the owner elects to have the property excluded from the district.

(c) Provides that Subsection (b) does not apply to:

(1) the designation of a property as a local historic landmark described by Section 211.0165(a) (relating to prohibiting a municipality that has established a process for designating places or areas of historical, cultural, or architectural importance and significance through the adoption of zoning regulations or zoning district boundaries from designating a property as a local historic landmark or include a property within the boundaries of a local historic district unless certain criteria are met); or

(2) the inclusion of a property within the boundaries of a local historic district described by Section 211.0165(a).

(d) Requires that a statement filed under Subsection (b) be filed before the first anniversary of the date of the inclusion in a conservation district. Provides that the exclusion of a property takes effect on the filing of the statement by the owner of the property.

SECTION 2. Makes application of Section 211.0166, Local Government Code, as added by this Act, prospective.

SECTION 3. Effective date: upon passage or September 1, 2023.