Published in August 2025
In the 89th Legislative Session, the Texas Legislature passed Senate Bill 840, and the Governor signed it into law with an effective date of September 1, 2025. The goal of the bill is to ease the state's housing shortage by making it simpler to build apartments and mixed-use developments in the state's bigger cities.
Under SB 840, apartments and other multifamily housing become a by-right use on land zoned for commercial, retail and warehouse (industrial) purposes. Beginning September 1, 2025, many properties that are not zoned residential will qualify for multifamily development without first being rezoned to a residential district. That means multifamily projects in these areas can move forward without public notice, a public hearing or a vote of the City Council.
City staff are updating Fredville's development standards to meet the new law and are reviewing what regulatory options remain available to the city. The City Council will soon take up amendments to the Unified Development Code to bring local procedures in line with SB 840. The aim is to follow state law while still protecting the quality of development in Fredville.
The full text of SB 840 is available from the Texas Legislature's online bill records.
Key Points of SB 840
Zoning
- Fully multifamily projects, and mixed-use projects in which at least 65% of the floor area is residential, may be built in areas already zoned office, commercial, retail, warehouse or mixed use. No rezoning or special city permit is required.
Limits on city rules
- Cities have less say over the density, height, setbacks and parking of these projects. When an existing commercial building is converted to housing, a city also may not demand extra parking, traffic studies or utility upgrades.
When it applies
- The law covers new development projects and building conversion permits that begin on or after September 1, 2025.
What comes next
- The City Council is tentatively scheduled to consider UDC amendments related to SB 840 on September 2. Meeting agendas are posted on the City Council meetings page.
- The proposed UDC changes may cover land use tables, definitions and other design standards.
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