Notice - Effective September 1st - Senate Bill 840

Published on August 01, 2025

During the recent 89^th Legislative Session, Texas lawmakers approved Senate Bill 840 which Governor Abbott signed into law effective September 1^st, 2025.  The bill was enacted in order to address the state’s housing shortage by streamlining the development of multifamily and mixed-use projects in larger cities.  The bill allows multifamily development within commercial, retail and warehouse (industrial) zoned property by right.  Starting September 1^st, 2025, many non-residentially zoned properties will be eligible for multifamily development without the need for a zone change to a residentially zoned district.  As a result, multifamily development in these areas will be allowed by right, without the need for public notice, a public hearing or action by City Council. 

City staff are working to amend our development standards to comply with the new state law and to consider our regulation options moving forward.  In the near future, City Council will consider amendments to our Unified Development Code that will align our processes with SB 840.  The ultimate goal of the amendments will be to comply with state law but to also assure continued quality development within the City of Grand Prairie.

Link to the official bill SB 840 can be found here.

Details of SB 840 

Zoning:

• SB 840 allows multifamily and mixed-use residential projects (with at least 65% residential space) in areas already zoned for office, commercial, retail, warehouse, or mixed-use, without requiring zoning changes or special permits from the city.

Specific Restrictions:

• SB 840 limits how cities can regulate density, height, setbacks, and parking for these projects.  The bill also restricts cities from requiring additional parking, traffic studies, or utility upgrades for converting existing commercial buildings to residential use.

Effective Date:

• The provisions of SB 840 will apply to new development projects and building conversion permits initiated on or after September 1, 2025. 

Next Steps:

• City Council consideration of amendments to the Unified Development Code (UDC) to comply with SB 840 are tentatively scheduled for September 2.  Agendas are posted here.
• Proposed changes to the UDC may address land use tables, definitions, and other design requirements.