Texas’ SB 840: D-FW Suburbs Face Housing Mandate
A new Texas state law, Senate Bill 840 (SB 840), is shaking up zoning regulations across the state, with a significant impact felt right here in Dallas-Fort Worth. Designed to combat Texas’ growing housing shortage, this legislation allows for more apartments and mixed-use residential buildings without the need for extensive city approval.
Understanding SB 840: A State-Level Shift
Effective September 1, SB 840 fundamentally changes how residential developments can proceed in Texas’ largest cities. It permits apartments and mixed-use residential projects in any zoning district currently allowing office, commercial, retail, or warehouse uses, bypassing traditional rezoning processes. This sweeping change means that aging office towers and retail centers could soon transform into vibrant multifamily communities.
The law applies to cities with at least 150,000 residents within counties of 300,000 or more people. Strikingly, over half of the affected municipalities are located within the D-FW metroplex, making this a pivotal issue for our local communities.
Key Provisions of the New Law
SB 840 establishes specific guidelines for new developments:
- Height Limits: Buildings can reach 45 feet or the tallest height allowed by the existing zoning code, whichever is greater.
- Density: Projects may achieve 36 units per acre or the highest density permitted in the municipality, whichever is greater.
- Setbacks: Cities cannot require setbacks greater than 25 feet or the largest setback for a commercial building, whichever is smaller.
- Parking: Parking requirements are capped at 1 space per apartment, and projects don’t need structured parking or nonresidential/retail uses.
- Commercial Conversions: Existing commercial buildings over five years old can convert to residential use without a zoning change or traffic analysis.
“Golden Ticket” or “Sledgehammer”? D-FW’s Mixed Reactions
For developers, the law has been described as a “golden ticket” by some, while local residents like Matt Bach, who fought a 900-apartment project in Far North Dallas, view it as a “sweeping sledgehammer.” Bach argues the law bypasses local governments and doesn’t adequately address affordable housing.
The potential scale of impact is immense. An analysis by the Child Poverty Action Lab found 75,600 acres of commercially owned land in Dallas County as “high potential” for housing. Utilizing just 25% of these parcels at 25% density could yield an estimated 328,000 new apartments.
Suburbs Implement Roadblocks
While Dallas has welcomed the new law and provided guidance, several D-FW suburbs are actively pushing back. At least six cities — Arlington, Frisco, Grand Prairie, Irving, McKinney, and Plano — have adjusted their building codes to make apartment development more challenging or expensive in commercial areas.
Examples of these local restrictions include:
- Irving: Upped height requirements to eight floors and mandated amenities like dog parks, gyms, swimming pools, and workspaces.
- Frisco: Introduced a “heavy industrial” use into all commercial zones, potentially sidestepping the law as SB 840 forbids apartments near heavy industrial sites.
- Garland: Considering raising maximum height to 60 feet but setting a minimum of 40 feet to deter two-story, garden-style apartments, alongside new amenity requirements.
These changes, often increasing project costs (e.g., steel/concrete instead of wood frame for taller buildings), reflect a desire to maintain community character and quality standards. However, they could set these cities on a collision course with state leaders.
Dallas and Fort Worth Embrace the Change
In contrast to the suburban resistance, Dallas has actively shared information with developers to facilitate compliance. Fort Worth has affirmed its commitment to the law and is drafting amendments to its Zoning Ordinance. Thomas Mann, a land use attorney, notes that Dallas has long advocated for mixed-income housing, seeing SB 840 as a helpful tool.
The D-FW Landscape: Before & After SB 840
The table below summarizes the contrasting approaches of D-FW cities to Senate Bill 840.
| City | Approach to SB 840 | Specific Actions/Responses |
|---|---|---|
| Dallas | Embracing | Provided information sheets and guidance to landowners; sees law as helpful for mixed-income housing. |
| Fort Worth | Embracing | Passed a resolution affirming compliance; city staff drafting zoning ordinance amendments. |
| Irving | Resisting | Upped height requirements to 8 floors; mandated amenities (dog park, gym, pool, remote workspace). |
| Frisco | Resisting | Created new “heavy industrial” use in commercial zones, potentially sidestepping the law. |
| McKinney | Resisting | Focused on building design rules to ensure apartments “fit better” with nearby offices or retail. |
Market Realities and Affordability Concerns
Despite the legislative push, current market conditions present their own hurdles. D-FW is experiencing a temporary oversupply of apartments due to a post-COVID building boom, leading to concessions and incentives for renters. High interest rates are also making new construction difficult to finance.
Experts suggest that while SB 840 could “turbocharge” construction under different market conditions, it’s not a “golden ticket” for developers right now. Many projects aren’t “penciling out” financially, leading to a slowdown in new apartment starts for 2028 and beyond.
A crucial concern for many is whether SB 840 will genuinely address the region’s affordable housing crisis. Dallas alone faces a 46,000-unit gap in affordable rental housing, projected to grow to 76,100 units by 2035. Housing advocates urge cities to creatively pair SB 840 with other incentives, such as converting publicly owned land, to ensure housing for the lowest-income residents.
What’s Next? Legal Battles and Long-Term Impact
The clash between state law and local ordinances creates an environment ripe for legal challenges. While residents have mulled “inverse condemnation” lawsuits, legal experts believe such challenges against the state law itself might be difficult, as cities’ zoning authority is derived from state law.
Major D-FW developers are watching closely. Some, like Mehrdad Moayedi of Centurion American, believe the suburbs will “fight it bad,” limiting the law’s impact there, while downtown areas might benefit more. Others, like David Craig of Craig International, anticipate the state will ultimately prevail over suburban resistance.
Frequently Asked Questions
- What is Texas SB 840?
It’s a state law allowing apartments and mixed-use residential buildings in commercial, office, retail, or warehouse zoning districts in large cities, without requiring city rezoning. - Which D-FW cities are impacted by SB 840?
Dallas, Fort Worth, Arlington, Plano, Irving, Garland, Frisco, McKinney, Grand Prairie, and Mesquite are among the cities affected. - How are D-FW suburbs responding to the law?
Many are implementing new building codes, height thresholds, amenity mandates, and design standards to effectively make development more difficult or expensive, or to sidestep the law’s intent. - Will SB 840 solve D-FW’s affordable housing shortage?
While intended to increase housing supply, experts and advocates suggest SB 840 alone may not directly address the need for low-income housing. Cities may need additional incentives and public-private partnerships. - What are the current challenges for building new apartments in D-FW?
Despite the new law, a temporary oversupply of apartments, high interest rates, and cautious investors are currently slowing down new construction starts.
For Dallas residents, SB 840 signifies a dynamic shift in our urban landscape. Staying informed about local city council actions and community planning initiatives will be crucial as new developments, guided by this state mandate, begin to take shape.
Texas SB 840 DFW suburbs housing mandate
