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Signed Into Law
Signed June 22, 2025Effective 2026-09-01
SB785

Regular Session

Relating to the regulation of new HUD-code manufactured housing.

Government Affairs & Regulatory Compliance Analysis

SB785: Government Affairs Overview

SB785 mandates that Texas municipalities designate at least one residential zoning district where new HUD-code manufactured homes are permitted "by right," effectively eliminating discretionary Specific Use Permits (SUPs) for qualifying installations. While the statutory effective date is September 1, 2026, immediate action is required to verify deed restrictions, as the "lookback" dates for exemptions are set in 2025.

Sen. Peter Flores·Senate Bill·Regular Session

Critical
Low Cost
Effective:2026-09-01
Enforcing Agencies

Municipal Planning and Zoning Departments • Texas Department of Housing and Community Affairs (TDHCA) - Manufactured Housing Division

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SB785
Critical
Relating to the regulation of new HUD-code manufactured housing.
Critical Compliance Urgency
Requires immediate attention
Cost Impact
Low
Effective
2026-09-01
Enforcing Agencies
Municipal Planning and Zoning De...TDHCA
Primary Author: Sen. Peter Flores
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2026 (Statutory Text controls over Bill Analysis).
  • Compliance Deadline: Immediate (2025) for Land Acquisition teams regarding deed restriction verification; September 1, 2026 for municipal zoning interactions and fee adjustments.
  • Agency Rulemaking: Municipalities will rewrite zoning ordinances between now and Sept 2026. This is a "Gap Year" where you must actively participate in city council meetings to ensure the designated zones are commercially viable, not relegated to undesirable land.

Immediate Action Plan

  • Audit Land Bank: Immediately review all owned or optioned land against the January 2, 2025 deed restriction cutoff.
  • Monitor "All-Restricted" Cities: Identify municipalities rushing to implement city-wide deed restrictions before the September 1, 2025 deadline to exempt themselves from the law.
  • Update Standard Operating Procedures (SOPs): Revise permitting SOPs to trigger a "Demand for Approval" letter on Day 46 if no written denial is received.
  • Lobby Local Zoning: Assign regional managers to attend Planning & Zoning meetings during the 2025-2026 implementation year to influence where the "by right" zones are placed.

Operational Changes Required

Contracts

  • Land Acquisition Agreements: Update feasibility periods to align with the new 45-day municipal review shot clock. Ensure "Governmental Approval" contingencies account for automatic approval mechanisms.
  • Sales Contracts: Insert specific disclaimers clarifying that while municipal zoning may allow the home, the Seller makes no representation regarding private deed restrictions or HOA covenants, placing the burden of verification on the Buyer.

Hiring/Training

  • Land Acquisition Teams: Must be trained to identify the "All-Restricted" exemption. If a municipality bans manufactured housing via deed restrictions on *all* residential land by September 1, 2025, the municipality is exempt from this law.
  • Permit Expediters: Train staff to demand itemized invoices for "actual costs" of transport rather than flat administrative fees.

Reporting & Record-Keeping

  • Application Tracking: Implement a rigid tracking system for the 45-day approval window. The clock starts on the "Date of Receipt."
  • Proof of Submission: All applications must be submitted via Certified Mail or digital portals with timestamped receipts. Automatic approval relies entirely on proving the start date.
  • Zoning Map Archival: Download and archive official zoning maps as of the effective date to prevent retroactive "downzoning" disputes.

Fees & Costs

  • Fee Elimination: Effective Sept 1, 2026, cease payment of Specific Use Permit (SUP) fees and generic "transportation/installation" fees.
  • Budget Adjustment: Budget only for "actual costs" incurred by the municipality (e.g., police escorts for wide loads). Reject any flat "administrative" fees that cannot be substantiated by an invoice.

Strategic Ambiguities & Considerations

  • "Actual Costs": The statute allows cities to bill for actual costs but does not define the limits. Expect cities to attempt to recover lost permit revenue here. We anticipate litigation to define "reasonable" actual costs.
  • "Area Determined Appropriate": Municipalities must designate a zone, but they have discretion on *which* zone. Without industry advocacy during the 2025-2026 rulemaking period, cities will likely designate flood plains or industrial-adjacent land as the compliant zone.
  • "New" vs. Aged Inventory: The law applies to "new" HUD-code homes. Clarification is needed for inventory that has sat on a retailer's lot (aged) but was never titled. Treat "new" as "never previously titled/occupied" until further guidance is issued.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Jan 15, 2025
Passed Senate
Apr 10, 2025
Passed House
May 27, 2025
Signed
Jun 22, 2025
Effective
Sep 1, 2026
TopicsCity GovernmentCity Government--land Use & ZoningHousingHousing--manufactured HousingPermits
03

Senate Authors

Sen. Peter FloresRepublican · Primary Author
Coauthors (1)

House Sponsors

Rep. Ryan GuillenRepublican · Primary Sponsor
Joint Sponsors

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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More from Sen. Peter Flores

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Quick Reference

Frequently Asked Questions

Common questions about SB785

Q

What does Texas SB785 do?

SB785 mandates that Texas municipalities designate at least one residential zoning district where new HUD-code manufactured homes are permitted "by right," effectively eliminating discretionary Specific Use Permits (SUPs) for qualifying installations. While the statutory effective date is September 1, 2026, immediate action is required to verify deed restrictions, as the "lookback" dates for exemptions are set in 2025.

Q

Who authored SB785?

SB785 was authored by Texas Senator Peter Flores during the Regular Session.

Q

When was SB785 signed into law?

SB785 was signed into law by Governor Greg Abbott on June 22, 2025.

Q

Which agencies enforce SB785?

SB785 is enforced by Municipal Planning and Zoning Departments and Texas Department of Housing and Community Affairs (TDHCA) - Manufactured Housing Division.

Q

How significant are the changes in SB785?

The regulatory priority for SB785 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB785?

The cost impact of SB785 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB785 address?

SB785 addresses topics including city government, city government--land use & zoning, housing, housing--manufactured housing and permits.

Q

What are the key dates for SB785?

Key dates for SB785: Effective date is 2026-09-01. Consult with legal counsel regarding applicability.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026