SB1567

Regular Session

Relating to the authority of home-rule municipalities to regulate the occupancy of dwelling units.

Q: Who authored SB1567?

SB1567 was authored by Texas Senator Paul Bettencourt during the Regular Session.

Q: When was SB1567 signed into law?

SB1567 was signed into law by Governor Greg Abbott on June 20, 2025.

Q: Which agencies enforce SB1567?

SB1567 is enforced by Texas Civil Courts (District Courts) and Fifteenth Court of Appeals (Exclusive intermediate appellate jurisdiction for claims under this statute).

Q: How urgent is compliance with SB1567?

The compliance urgency for SB1567 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q: What is the cost impact of SB1567?

The cost impact of SB1567 is estimated as "low". This may vary based on industry and implementation requirements.

Q: What topics does SB1567 address?

SB1567 addresses topics including city government, city government--land use & zoning, county government, county government--land use & zoning and civil remedies & liabilities.

ModeratePlan for compliance

Low Cost

Effective:2025-09-01

Enforcing Agencies

Texas Civil Courts (District Courts) • Fifteenth Court of Appeals (Exclusive intermediate appellate jurisdiction for claims under this statute)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: Immediate for Fall 2025 Leasing Cycles. While the law takes effect in September, leases signed during the Spring/Summer 2025 season for move-ins on or after September 1 must reflect these new occupancy standards.
Agency Rulemaking: No state agency rulemaking is required. However, expect affected municipalities to amend local fire and health codes immediately to attempt indirect regulation of density.

Immediate Action Plan

Audit Portfolio Geography: Immediately identify assets in home-rule municipalities with <250,000 population containing or adjacent to universities with 20,000+ enrollment.
Verify Deed Restrictions: Conduct a title review for Single Family Rentals (SFR). If the HOA bans >2 unrelated occupants, you must enforce the HOA rule; the state law does not void private contracts.
Revise Leasing Criteria: Switch screening logic from "familial status" to "square footage/occupancy load" for all leases commencing on or after 09/01/2025.
Prepare for Litigation: Establish a protocol for when a city attempts to enforce a voided ordinance. You now have a private right of action to sue for damages and attorney's fees.

Operational Changes Required

Contracts

Lease Agreements: Remove clauses referencing municipal "unrelated person" ordinances for properties in affected zones. Replace with occupancy limits based on state standards (Texas Property Code: 3 occupants per bedroom or square footage calculations).
Brokerage Agreements: Update listing agreements to explicitly prohibit the release of tenant data or lease copies to municipalities for the purpose of verifying relationships, citing Section 211.055.

Hiring/Training

Leasing Protocols: Train staff to cease screening based on familial status. Shift screening criteria to "occupancy load" based on bedroom count and square footage.
Privacy Training: Staff must be trained to deny municipal requests for lease documents. The law prohibits cities from demanding leases to verify occupant relationships; staff must know this is a protected right, not non-compliance.

Reporting & Record-Keeping

Floor Plan Certification: Maintain certified, measured floor plans for all units. You must be able to prove sleeping rooms meet the 70 sq. ft. (1st occupant) + 50 sq. ft. (additional occupant) requirement to defend against municipal "health and safety" enforcement actions.

Fees & Costs

Insurance Review: There are no new government fees. However, increasing density (e.g., from 2 to 4 unrelated adults) may trigger exclusions in standard "dwelling" policies. You may need to upgrade to commercial or specific "student housing" insurance products.

Strategic Ambiguities & Considerations

The "Adjacent" Definition: The statute applies to cities "adjacent" to a university campus but does not define the geographic scope. Operators in suburbs bordering university towns (e.g., areas surrounding Denton or College Station) should proceed with caution until the courts define "adjacency."
Health & Safety Pretext: Municipalities retain the right to enforce fire and building codes (Sec. 211.054). Expect hostile cities to weaponize parking, trash, and "overcrowding" ordinances as a proxy for the banned zoning rules.
Private Agreement Scope: While HOAs are clearly protected, it is legally ambiguous whether a landlord's independent internal policy constitutes a protected "private agreement."

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsCity Government City Government--land Use & Zoning County Government County Government--land Use & Zoning Civil Remedies & Liabilities Housing Housing--general

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

Senate Research Center	S.B. 1567
89R4653 DRS-F	By: Bettencourt
	Local Government
	3/14/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Under home-rule municipal authority, some cities regulate by ordinance the number of unrelated individuals who may reside in the same dwelling unit, regardless of the dwelling's size. These types of ordinances restrict individual property owners and tenants from maximizing the use of a dwelling unit's potential, and result in tenants having to seek more expensive living arrangement alternatives.

Further, it has been reported that some home-rule municipalities have sought to enforce these types of ordinances with enforcement mechanisms that could qualify as harassment under revised penal code statutes, such as tracking individuals' motor vehicles over extended periods.

S.B. 1567 seeks to alleviate these burdens by prohibiting a municipality from adopting or enforcing an ordinance that limits the number of people who may occupy a dwelling unit based on age, familial status, occupation, relationship status, or whether the occupants are related to each other by a certain degree of consanguinity.

As proposed, S.B. 1567 amends current law relating to the authority of home-rule municipalities to regulate the occupancy of dwelling units.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 211, Local Government Code, by adding Subchapter D, as follows:

SUBCHAPTER D.� RESIDENTIAL ZONING LIMITATIONS RELATED TO OCCUPANCY IN CERTAIN MUNICIPALITIES

Sec. 211.051.� DEFINITION. Defines "dwelling unit."

Sec. 211.052.� APPLICABILITY. Provides that this subchapter applies only to a home-rule municipality.

Sec. 211.053.� DWELLING UNIT OCCUPANCY REQUIREMENTS. Prohibits a municipality from adopting or enforcing a zoning ordinance, rule, or other regulation that limits the number of people who are authorized to occupy a dwelling unit based on certain factors.

Sec. 211.054.� NO EFFECT ON OTHER ZONING AUTHORITY. Provides that this subchapter does not prohibit a municipality from imposing a limit on the number of people who are authorized to occupy a dwelling unit based on health and safety standards contained in certain guidelines.

Sec. 211.055. NO EFFECT ON PROPERTY OWNERS' ASSOCIATIONS AND OTHER PRIVATE AGREEMENTS. Provides that this subchapter does not prohibit a property owner from enforcing rules or deed restrictions imposed by a property owners' association or by other private agreement.

Sec. 211.056.� PROPERTY OWNER ACTION. (a) Authorizes a property owner in a municipality that violates this subchapter to bring an action against the municipality for damages incurred due to the violation and for appropriate equitable relief.

(b)� Provides that governmental immunity of the municipality to suit and from liability is waived to the extent of liability created by this section.

(c)� Authorizes a court to award a prevailing claimant reasonable attorney's fees incurred in bringing an action under this section.

SECTION 2. Effective date: September 1, 2025.

Senate Authors

Sen. Paul BettencourtRepublican · Primary Author

Coauthors (1)

Sarah Eckhardt (D)

House Sponsor

Rep. Cody VasutRepublican · Primary Sponsor

Bill Text(with markup)

S.B. No. 1567

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the authority of home-rule municipalities to regulate
	the occupancy of dwelling units.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Chapter 211, Local Government Code, is amended
	by adding Subchapter D to read as follows:
	SUBCHAPTER D. RESIDENTIAL ZONING LIMITATIONS RELATED TO OCCUPANCY
	IN CERTAIN MUNICIPALITIES
	Sec. 211.051. DEFINITIONS. In this subchapter:
	(1) "Dwelling unit" means a house, apartment unit, or
	any unit in a multiunit residential structure. The term does not
	include a unit in a hotel, motel, or other establishment in which
	more than half of the units are intended to be used for transient
	accommodations.
	(2) "Institution of higher education" has the meaning
	assigned by Section 61.003, Education Code.
	Sec. 211.052. APPLICABILITY. This subchapter applies only
	to a home-rule municipality with a population of less than 250,000:
	(1) in which the campus of an institution of higher
	education with a student enrollment of more than 20,000 is located;
	or
	(2) that is adjacent to the campus of an institution of
	higher education described by Subdivision (1).
	Sec. 211.053. DWELLING UNIT OCCUPANCY REQUIREMENTS. (a)
	Except as provided by Subsection (b), a municipality may not adopt
	or enforce a zoning ordinance, rule, or other regulation that
	limits the number of people who may occupy a dwelling unit based on:
	(1) age;
	(2) familial status;
	(3) occupation;
	(4) relationship status; or
	(5) whether the occupants are related to each other by
	a certain degree of affinity or consanguinity.
	(b) A municipality may impose a limit on the number of
	occupants of a dwelling unit that is not more restrictive than:
	(1) one occupant per sleeping room with a minimum
	floor area of 70 square feet; and
	(2) one additional occupant for each additional 50
	square feet of floor area in the same sleeping room.
	Sec. 211.054. NO EFFECT ON OTHER ZONING AUTHORITY. This
	subchapter does not prohibit a municipality from imposing a limit
	on the number of people who may occupy a dwelling unit based on
	health and safety standards contained in:
	(1) a building code as adopted under Subchapter G,
	Chapter 214;
	(2) a fire code;
	(3) standards adopted by the Department of State
	Health Services; or
	(4) local, state, or federal affordable housing
	program guidelines.
	Sec. 211.055. LEASE REVIEW PROHIBITED. A municipality may
	not require a real estate broker, agent, or other third party
	fiduciary to submit for review or provide access to a lease or
	related document to determine the number of unrelated occupants of
	a dwelling unit for the purpose of enforcing a dwelling unit
	occupancy requirement.
	Sec. 211.056. NO EFFECT ON PROPERTY OWNERS' ASSOCIATIONS
	AND OTHER PRIVATE AGREEMENTS. This subchapter does not prohibit a
	property owner from enforcing rules or deed restrictions imposed by
	a property owners' association or by other private agreement.
	Sec. 211.057. CIVIL ACTION. (a) A person who owns property
	in or a tenant who resides in a municipality who is adversely
	affected or aggrieved by the municipality's violation of this
	subchapter may bring an action against the municipality or an
	officer or employee of the municipality in the officer's or
	employee's official capacity for relief described by Subsection
	(c).
	(b) A claimant must bring an action under this section in a
	county in which the real property that is the subject of the action
	is wholly or partly located.
	(c) In an action brought under this section, a court may:
	(1) enter a declaratory judgment under Chapter 37,
	Civil Practice and Remedies Code;
	(2) issue a writ of mandamus compelling a defendant
	officer or employee to comply with this subchapter; and
	(3) issue an injunction preventing the defendant from
	violating this subchapter.
	(d) A court shall award reasonable attorney's fees and court
	costs incurred in bringing an action under this section to a
	prevailing claimant.
	(e) The Fifteenth Court of Appeals has exclusive
	intermediate appellate jurisdiction over an appeal or original
	proceeding arising from an action brought under this section.
	SECTION 2. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 16, 2025

TO:	Honorable Paul Bettencourt, Chair, Senate Committee on Local Government

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB1567 by Bettencourt (Relating to the authority of home-rule municipalities to regulate the occupancy of dwelling units.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

There could be an impact on a home-rule municipality that were to violate provisions of the bill and owe damages awarded to a claimant in a resulting legal action.

Source Agencies:

212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 537 State Health Services, Department of

LBB Staff:

JMc, SZ, BC, CWi, CMA

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Frequently Asked Questions

Common questions about SB1567

What does Texas SB1567 do?

Effective September 1, 2025, Texas law preempts home-rule municipalities in university markets (population <250,000) from enforcing ordinances that limit the number of unrelated occupants in a dwelling. This legislation effectively bans "stealth dorm" zoning laws in college towns but does not override private deed restrictions or HOA rules. Property owners in these markets may now lease based on square footage capacity rather than familial status, provided no private covenants exist.

Who authored SB1567?