Texas lawmakers pass accessory dwelling unit regulation reforms

Texas lawmakers have introduced House Bill 878, a significant legislative measure aimed at easing restrictions on the construction of accessory dwelling units (ADUs) across the state. Unveiled on March 6, 2025, the bill seeks to address the growing housing crisis by promoting the development of smaller, secondary housing options on existing residential properties.

At the heart of House Bill 878 is a clear directive: local governments cannot impose excessive fees or restrictions on the construction of ADUs, which are defined as units less than 800 square feet. The bill prohibits additional charges specific to ADUs, such as parkland dedications, and ensures that occupancy restrictions based on age or employment relationships with the primary dwelling owner are eliminated. Notably, it allows property owners with lots of at least 10,000 square feet to build two ADUs, enhancing housing density in suburban areas.

The bill also streamlines the permitting process, mandating that applications for ADUs be processed within 60 days without discretionary reviews. If a local government fails to act within this timeframe, the application is automatically approved. This provision aims to reduce bureaucratic delays that often hinder housing development.

However, the bill has sparked debates among lawmakers and community advocates. Proponents argue that easing restrictions on ADUs is essential for increasing affordable housing options and addressing the state's housing shortage. Critics, including some local officials, express concerns about potential overdevelopment and the impact on neighborhood character. Additionally, the bill does not override existing historic preservation rules or homeowners' association regulations, which could limit its effectiveness in certain areas.

The implications of House Bill 878 are significant. If passed, it could lead to a surge in ADU construction, providing more affordable housing options and potentially alleviating some pressure on the housing market. Experts suggest that this legislative move could also stimulate local economies by creating jobs in construction and related industries.

As the bill moves through the legislative process, its future remains uncertain. Stakeholders are closely watching the discussions, anticipating amendments and potential compromises that could shape the final version of this pivotal housing legislation.