Relating to size and density requirements for residential lots in certain municipalities; authorizing a fee.

Contracts

• Land Purchase Agreements: You must amend feasibility periods for unplatted tracts. Extend timelines to account for potential litigation or administrative appeals if the municipality rejects the initial SB15-compliant plat.
• Contingencies: Replace standard "zoning approval" contingencies with specific language requiring "approval of a plat consistent with Tex. Loc. Gov't Code § 211.054."
• HOA Declarations (CC&Rs): Critical Check: SB15 does *not* override private deed restrictions. When acting as the Declarant, you must draft new CC&Rs that explicitly permit the density, setbacks, and parking configurations allowed by SB15. Do not use legacy CC&R templates, or you will accidentally prohibit your own product.

Hiring/Training

• Civil Engineers & Architects: Direct design teams to update product libraries immediately. Designs must accommodate the new state maximum setbacks (15-foot front/10-foot rear) and remove requirements for covered parking or garages on lots under 4,000 square feet.
• Legal Counsel: Retain counsel familiar with the new Fifteenth Court of Appeals, which has exclusive intermediate appellate jurisdiction over these disputes.

Reporting & Record-Keeping

• Denial Documentation: You must establish a protocol to obtain *certified written denials* from municipal planning departments. A verbal rejection is insufficient. You need a paper trail citing the specific local ordinance that violates SB15 to trigger the fee-shifting provision.
• Association Membership: Ensure your development entity is a dues-paying member of a "Housing Organization" (nonprofit or trade association). SB15 grants these organizations standing to sue on your behalf, which can shield your specific project entity from direct municipal retaliation.

Fees & Costs

• Litigation Budget: While the law allows for the recovery of attorney's fees and costs if you prevail, you must front these costs. Budget for an initial legal challenge on your first SB15 project.
• Impact Fees: Prepare for increased costs. The law explicitly authorizes municipalities to assess Chapter 395 impact fees on these smaller lots. Expect cities to maximize these fees to offset the density or disincentivize the product.