BILL ANALYSIS

Senate Research Center	C.S.S.B. 1787
88R21681 MP-D	By: Bettencourt
	Local Government
	5/4/2023
	Committee Report (Substituted)

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Texas' median home price dropped during the last year from $349,900 to $331,000 thanks to pandemic and economic pressures. However, houses are considered "affordable" when priced below $300,000. As the state's population continues to grow, Texas continues to experience a shortage of affordable housing stock.

A significant contributor to the lack of affordable housing stock in Texas is the price of the land on which residential dwellings are built�it comprises almost one-quarter of the sale price of a single-family home.

In some Texas cities, builders are platting lots exactly at lot-size minimums, indicating that some lot size regulations are forcing some developers to build on larger lots, regardless of market demand. Larger lot sizes require increased investment in the construction of new housing. In many cities, municipal ordinances requiring residential lots be of a minimum size restrict potential housing development opportunities, contributing to a reduction in the potential housing stock.

S.B. 1787 seeks to address these issues by prohibiting municipalities wholly or partly located in a county with a population of 300,000 or more from requiring residential lots to be larger than 1,400 square feet or for density regulations to require density less than 31.1 units per acre.

(Original Author's/Sponsor's Statement of Intent)

C.S.S.B. 1787 amends current law relating to size and density requirements for residential lots in certain municipalities and authorizes a fee.

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 Chapter 211, Local Government Code, by adding Subchapter D, as follows:

SUBCHAPTER D. RESIDENTIAL ZONING LIMITATIONS IN MUNICIPALITIES LOCATED IN COUNTIES OF 300,000 OR MORE

Sec. 211.051. DEFINITION. Defines "small lot."

Sec. 211.052. APPLICABILITY. Provides that this subchapter applies only to a municipality that is wholly or partly located in a county with a population of 300,000 or more.

Sec. 211.053. CONSTRUCTION OF SUBCHAPTER. Prohibits this subchapter from being construed to affect requirements directly related to sewer or water services.

Sec. 211.054. CERTAIN DWELLING UNIT LOT SIZE REQUIREMENTS PROHIBITED. Prohibits a municipality from adopting or enforcing an ordinance, rule, or other measure that requires:

(1) a residential lot to be:

(A) larger than 1,400 square feet;

(B) wider than 20 feet; or

(2) if regulating the density of dwelling units on a residential lot, a ratio of dwelling units per acre that results in fewer than 31.1 units per acre.

Sec. 211.055. SMALL LOTS. (a) Prohibits a municipality from adopting or enforcing an ordinance, rule, or other measure that requires a small lot to have:

(1) a building, waterway, plane, or other setback greater than:

(A) five feet from the front or back of the property; or

(B) five feet from the side of the property;

(2) covered parking;

(3) more than one parking space per unit;

(4) off-site parking;

(5) more than 30 percent open space or permeable surface; or

(6) fewer than three full stories not exceeding 10 feet in height measured from the interior floor to ceiling;

(7) a maximum building bulk;

(8) a wall articulation requirement; or

(9) any other zoning restriction that imposes restrictions inconsistent with this subsection, including restrictions through contiguous zoning districts or uses or from the creation of an overlapping zoning district.

(b) Authorizes a municipality to require with respect to a small lot:

(1) the sharing of a driveway with another lot; or

(2) permitting fees equivalent to the permitting fees charged for the development of a lot the use of which is restricted to a single-family residence.

Sec. 211.056. NO EFFECT ON OTHER ZONING AUTHORITY. Provides that this subchapter does not prohibit a municipality from imposing restrictions that are applicable to all similarly situated lots or subdivisions, including requiring all subdivisions or all small lots to fully mitigate stormwater runoff.

Sec. 211.057. NO EFFECT ON HOMEOWNERS' ASSOCIATIONS AND OTHER PRIVATE AGREEMENTS. Provides that this subchapter does not prohibit property owners from enforcing rules or deed restrictions imposed by a homeowners' association or by other private agreement.

Sec. 211.058. SPECIAL EXCEPTION. (a) Authorizes the owner of a property that is subject to the provisions of this subchapter to apply for a special exception from the lot or building requirements of this subchapter.

(b) Requires that an application submitted under Subsection (a):

(1) propose to exempt a contiguous area subject to this subchapter and designated only for single-family residential use; and

(2) demonstrate:

(A) the approval of at least one property owner of the property located on a block face that is the subject of the application, if the application proposes to exempt an area containing all lots located on at least one block face and not more than two opposing block faces; or

(B) the approval of at least 55 percent of the property owners of property located in the area that is the subject of the application, if the application proposes to exempt an area containing:

(i) all lots located on at least five block faces composed of five or more lots; and

(ii) not more than 500 lots within the same subdivision plat or 400 lots within two or more subdivision plats.

(c) Requires a municipality to adopt procedures that comply with Chapter 211 (Municipal Zoning Authority) for providing notice, a hearing, and an appeal of any decision to approve or deny an application submitted under Subsection (a).

(d) Prohibits a special exemption granted under this section from requiring a property to exceed the minimum lot size requirements for other properties subject to the zoning regulations applicable to the property.

Sec. 211.059. PROPERTY OWNER ACTION. (a) Authorizes a property owner to bring an action against a municipality that violates this subchapter for damages resulting from the violation and appropriate equitable relief.

(b) Authorizes a court to award a prevailing claimant reasonable attorney's fees incurred in bringing an action under this section. Prohibits the claimant from recovering exemplary damages in the action.

(c) Provides that governmental immunity of a municipality to suit and from liability is waived to the extent of liability created by this section.

SECTION 2. Effective date: September 1, 2023.