BILL ANALYSIS

Senate Research Center	S.B. 673
89R3977 SCL-D	By: Hughes
	Local Government
	3/7/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

As proposed, S.B. 673 would prohibit political subdivisions from preventing residential property owners from building or erecting accessory dwelling units (ADUs) by right.

The Texas spirit of independence and personal private property rights are constrained when hard-working Texans who invest in residential property are prevented from maximizing their investment and utilizing their property to its highest and best use. That highest and best use may include building accessory dwelling units, or "casitas," "cottages," and "granny flats," as they are sometimes known.

City centers and other densely populated areas are not growing any more land. ADUs can help fill the desperate need for housing faced by students, caregivers, extended families, teachers, first responders, traveling professionals, and empty nesters, to name a few. ADUs can alleviate long commutes, ease traffic congestion, help clean the air, and return precious free time to busy Texans. ADUs add flexibility for home seekers and property owners and provide supplemental income for homeowners struggling with growing economic burdens.

ADUs are independent housing units and can be either detached or attached to the primary home. The popularity of their practicality and affordability has been increasing during the last decade: Portland, Oregon, and Los Angeles routinely see more than 10 percent of all housing permits issued for ADUs; in Vancouver, it is almost 10 percent of housing permits. Some Texas home builders are now incorporating ADUs into floor plans for new construction.

Not all communities are fans of accessory dwelling units�this bill is not a one-size-fits-all mandate. This bill will not infringe on homeowners' associations, historic districts, and deed restrictions that prohibit ADUs. If circumstances dictate that health and safety would be adversely impacted by building an ADU, it will not be forced.

Municipalities and other political subdivisions are not without a voice in this effort to increase the supply of safe, affordable housing. Height, setback, and zoning requirements applicable to the primary dwelling apply to any ADU built on the same lot. Landscape, aesthetic, and size restrictions are permitted.

As proposed, S.B. 673 amends current law relating to regulation of accessory dwelling units by political subdivisions.

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 Subtitle C, Title 7, Local Government Code, by adding Chapter 249, as follows:

CHAPTER 249. REGULATION OF ACCESSORY DWELLING UNITS BY POLITICAL SUBDIVISIONS

Sec. 249.001. DEFINITION. Defines "accessory dwelling unit."

Sec. 249.002. CERTAIN REGULATIONS PROHIBITED. (a) Prohibits a political subdivision from adopting or enforcing an order, ordinance, or other measure that:

(1) prohibits an owner of a lot described by Section 249.001(1) (relating to providing that an accessory dwelling unit is a residential housing unit that is located on any lot that is not zoned or is zoned for a single-family home or duplex) from building an accessory dwelling unit before, after, or concurrently with the building of the primary dwelling unit on the lot;

(2) prohibits the owner from entering into a residential lease for an accessory dwelling unit;

(3) requires any owner occupancy of the primary dwelling unit;

(4) requires parking for an accessory dwelling unit on a lot that was platted before 1965, is less than 7,000 square feet, or is located within 1,320 feet of a public transit line;

(5) requires a minimum lot size for an accessory dwelling unit that is larger than the minimum lot size required by the political subdivision for:

(A) a single-family home or duplex, as applicable, in a lot zoned for that purpose; or

(B) an accessory dwelling unit on September 1, 2025, if the political subdivision only required a property owner to provide notice to the political subdivision of the proposed unit to be authorized to build the unit;

(6) requires side or rear building, waterway, plane, or other setbacks larger than five feet for an accessory dwelling unit;

(7) prevents an owner of a lot zoned for a single-family home or duplex from converting an existing structure to an accessory dwelling unit by requiring setbacks larger than the current structure's setbacks;

(8) applies the political subdivision's local growth restrictions or density or bulk limitations to an accessory dwelling unit;

(9) provides a limitation on the square footage of an accessory dwelling unit that is less than 50 percent of the square footage of the primary dwelling unit or 800 square feet;

(10) regulates the design of an accessory dwelling unit, including the shape, size, massing, or distribution of square footage between floors;

(11) requires the height of an accessory dwelling unit to be less than 14 feet, measured from floor to ceiling;

(12) charges an impact fee unless the accessory dwelling unit requires an increase in the size of the meter or connection to serve the primary dwelling unit or a new meter or connection for the accessory dwelling unit;

(13) charges any additional fee or any exaction, including a parkland or right-of-way dedication;

(14) imposes any restriction of accessory dwelling unit occupancy on the basis of age or employment relationship with the primary dwelling unit owner;

(15) prohibits the construction of accessory dwelling units consistent with this chapter under otherwise applicable open space or permeable surface restrictions;

(16) prohibits construction of an accessory dwelling unit in accordance with the current residential building code adopted by this state or a housing regulatory authority of this state; or

(17) prohibits an accessory dwelling unit based on its orientation on the lot with respect to the primary dwelling unit if space allows for that orientation.

(b) Provides that Subsection (a)(4) does not limit a political subdivision's authority to require the replacement of parking required for the primary dwelling unit if the accessory dwelling unit construction eliminates the primary dwelling unit's existing parking.

Sec. 249.003. AUTHORIZED REGULATION. (a) Provides that, except as provided by this chapter, a political subdivision's height limitations, front setback limitations, site plan review, and other zoning requirements that are generally applicable to residential construction for the area in which an accessory dwelling unit is built apply to the accessory dwelling unit.

(b) Authorizes a political subdivision to publish accessory dwelling unit plans, building codes, and design standards that are permitted in the political subdivision. Authorizes standards, subject to Section 249.002, to include height, setback, landscape, and maximum size of an accessory dwelling unit.

(d) Authorizes a political subdivision to apply the political subdivision's regulations on short-term rental units to an accessory dwelling unit.

(e) Authorizes a political subdivision to prohibit the sale of an accessory dwelling unit separately unless certain conditions are met.

(f) Authorizes a political subdivision to apply the political subdivision's parking regulations that are not prohibited under Section 249.002(a)(4) to an accessory dwelling unit if the regulations do not require more than one parking space for each accessory dwelling unit and regulate the placement or adequacy of parking.

Sec. 249.004. PERMIT APPROVAL REQUIREMENTS. (a) Requires a political subdivision that requires a permit to construct an accessory dwelling unit to:

(1) process the application for the permit ministerially without discretionary review or a hearing;

(2) consider only whether the application satisfies the applicable building codes, design standards, and fire codes; and

(3) approve or deny the application not later than the 60th day after the date the applicant submits the completed application.

(b) Provides that a permit described by Subsection (a) is considered approved if the political subdivision to which the application is submitted does not approve or deny the application on or before the 60th day after the date the applicant submits the application.

Sec. 249.005. EFFECT ON OTHER RESTRICTIONS AND RULES. Provides that this chapter does not supersede, preempt, or apply to a historic preservation rule, deed restriction, or homeowners association rule that limits or prohibits the construction of an accessory dwelling unit.

Sec. 249.006. PROPERTY OWNER ACTION. (a) Authorizes a property owner to bring action against a political subdivision that violates this chapter for damages resulting from the violation and appropriate equitable relief.

(b) Authorizes a court to award a prevailing claimant reasonable attorney's fees and costs 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 political subdivision to suit and from liability is waived to the extent of liability created by this section.

SECTION 2. Effective date: upon passage or September 1, 2025.