Mixed results implementing SB 840; cities differ on how much multifamily is enabled

Policy researchers and municipal officials described early effects of Senate Bill 840, which authorizes multifamily in certain commercial zones by right. Brennan Griffin of Texas Appleseed reported a conservative floor of nearly 8,500 new units in 20+ projects across seven cities that took advantage of SB 840 in the first months, with a subset in places where office or retail became eligible for residential conversion. ‘‘About 12‑50% of them are in areas that would not have been allowed before,’’ Griffin said when summarizing the group’s early inventory.

Cities have adopted different compliance approaches. Dallas established a predevelopment process and has tracked hundreds of consultations; El Paso applied the statute broadly and reduced parking and increased permitted heights in some commercial districts; Grand Prairie, Frisco and others adopted local development standards (Appendix S/W, minimum heights, amenity lists) that critics call ‘‘death by a thousand cuts’’ because developers say the added requirements can render otherwise permitted projects infeasible.

Stakeholders urged the Legislature to consider clarifying language to prevent municipalities from imposing conditions on SB 840 projects that do not apply to comparable office or retail development, and to require reporting mechanisms so the state can track projects that use the statute.

The committee heard both municipal officials who say the bill is producing housing and local leaders who push back on lost local control; no formal committee vote on SB 840 changes was taken at the hearing.