Certain municipal and county regulation of certain multifamily and mixed-use residential development projects and conversion of certain commercial buildings to mixed-use and multifamily residential occupancy

Texas House Bill 3404 (HB3404) was introduced in February 2025 to regulate how cities and counties oversee the development of multifamily and mixed-use residential projects, as well as the conversion of commercial buildings into such residences. The bill aimed to standardize zoning laws and permitting processes across municipalities and counties, particularly those with populations exceeding 60,000 and 420,000 respectively. It defined 'mixed-use residential' as developments where at least 65% of the total area is residential, and 'multifamily residential' as properties with three or more housing units. The bill was referred to the House Land & Resource Management Committee in March 2025 but did not progress further and died in committee.

Supporters of HB3404 argued that the bill would streamline the development process for multifamily and mixed-use residential projects by creating uniform regulations across larger municipalities and counties. They believed this standardization could encourage more efficient development, address housing shortages, and promote economic growth by facilitating the conversion of underutilized commercial spaces into residential units.

Opponents of HB3404 contended that the bill would undermine local control by imposing state-mandated regulations on municipalities and counties. They expressed concerns that such standardization might not account for the unique needs and preferences of individual communities, potentially leading to developments that are out of character with local neighborhoods. Additionally, there were apprehensions that the bill could limit the ability of local governments to address specific housing and zoning challenges within their jurisdictions.