Bell Nunnally Partner Jonathan Aldaco authored the Texas Real Estate Business article “Legislative Elimination of Zoning Restrictions: A New Offensive Playbook for Texas Multifamily Developers.” The piece examines how Senate Bill 840, now codified as Chapter 218 of the Texas Local Government Code, is reshaping multifamily and mixed-use development across some of Texas’ largest municipalities.

Aldaco explains that Chapter 218 significantly reduces local zoning authority by allowing mixed-use and multifamily residential development by right in qualifying zoning districts that permit office, commercial, retail, warehouse or mixed-use development. For projects meeting the law’s requirements, municipalities must administratively approve necessary permits or authorizations without requiring further action by the municipality’s governing body.

“Chapter 218 significantly clears the field for play,” Aldaco writes, noting that the law also removes certain barriers to converting existing commercial buildings to residential or mixed-use projects, including specified traffic studies, additional parking requirements and certain utility improvements.

Since the law took effect on Sept. 1, 2025, Aldaco observes that municipal responses have varied. Dallas has not adopted new zoning or permitting regulations aimed at countering the law’s purpose, while cities including Grand Prairie, Plano and Irving have adopted amendments intended to impair the feasibility of using Chapter 218 for mixed-use and multifamily development.

The statute also gives developers and housing organizations a means to challenge municipal violations. As Aldaco puts it, “If developers are met with resistance from the ‘refs’ at city hall, they have the right to ‘challenge the call on the field.’” Parties adversely affected or aggrieved by a municipality’s violation may pursue declaratory or injunctive relief, with prevailing claimants entitled to court costs and reasonable attorney’s fees.

Aldaco adds, “Although its long-term impact is still unfolding, Chapter 218 has already become a game-changing force in reshaping the development landscape in Texas.”

To read the full article, please click here.