Per Cedar Homes Newsletter: Texas State Govt SB840 update: Austin, TX unlocks more housing with code changes + Texas statewide calculator launcher

 

Designed and permitted by Cedar. Townhomes like these just got a lot easier to build across Texas with SB 840!     Greetings from Cedar! Back with an important update on Texas Senate Bill 840 (SB840) which is now being adopted across (most) of the cities in Texas it applies to.     SB840 sets a statewide minimum for housing density across large cities by overriding local commercial and multifamily zoning requirements, while also streamlining approvals to accelerate design & permitting. This is a generational reform that unlocks countless opportunities to build a lot more housing, a lot faster, across Texas.     Dallas has been at the forefront of implementation so far, and projects there are already moving forward with the allowances below. Austin has not issued an opinion, and from what we’re hearing... is not likely to. Regardless, these changes will go into effect on September 1st, and apply to Commercial AND Multifamily zoned properties:   Minimum density of 36 dwelling units per acre by-right   Minimum height limit of 45-ft   Floor-area-ratio (FAR) restrictions are eliminated, gross floor area is no longer limited by site area   Overrides special use districts, overlays, and PDs   Applicable projects MUST be approved administratively, and CANNOT be required to appear before an elected, appointed, or neighborhood body    A few interesting unlocks in Austin:     Scenario   Before SB 840   After SB 840     Half-acre site zoned MF-1 in Central Austin   Density capped at 7 homes, with each home limited to 1-bedroom   2.5X density at 18 homes, limitations on bedroom count eliminated     1-acre site zoned MF-3 in East Austin   Density capped at 24 homes, with unit sizes constrained by FAR limits   12 additional homes, and flexibility / diversity in unit sizes with no max FAR limit     LR zoned site in South Manchaca neighborhood   Housing prohibited, limited to “suburban strip mall” development   Allows mixed-use housing + retail in the heart of a growing neighborhood       Evaluating the “density boost” of SB 840   We created a simple calculator to help you qualify sites and determine the impact of these changes on housing development potential:       Start testing sites with the “Density Boost” here       SB840 case study - residential in commercial zoning   1212 Slaughter Ln, Austin, TX     Commercially zoned sites can now accommodate housing and a mix-of-uses, making for more vibrant neighborhoods   Less than a block from an elementary school, with a park in between, and already situated within a residential neighborhood... this 1-acre site is perfect for residential. But its commercial zoning today prohibits this use, and thus the land sits underutilized. SB 840 allows us to build residential and multifamily housing here, up to 40 new homes by-right (without a zoning change).   Before Suburban office and surface parking   Zoning LR (Neighborhood Commercial) Dwelling units 0 Density 0 du/acre Product types Office or retail     After Single-family / multifamily residential mix   Zoning LR (Neighborhood Commercial) Dwelling units 40 Density 36 du/acre Product types Townhomes & flats     Senate Bill 840 offers larger cities a valuable tool to deliver more housing options in a smart and efficient way by encouraging growth where infrastructure already exists or is planned. This approach is essential to expanding transit choices, curbing sprawl, and bringing long-term vibrancy to communities across the city. - Ron Thrower, Thrower Design       Reforms that expand the Texas Infill Housing Catalog   SB 840 fits into a much broader trend of major land-use reforms that are expanding the opportunity for more housing density and diversity across Austin and other major Texas cities.     Land-use reform creates an expanded catalog of housing options, each reform and how it impacts housing types     Housing type only viable with reform       Housing type made easier with reform      HOME Phase I — 3-Unit flexibility on single-family lots (Austin)   Allows up to three dwelling units by-right on single-family zoned lots, increasing residential housing potential without rezoning.    HOME Phase II — Smaller minimum lot sizes (Austin)   Creates a “small-lot single-family” use that legalizes one home on lots as little as ≈1,800 sq ft (down from 5,750 sq ft), enabling fee-simple starter homes.   Introduces an infill-subdivision process for sites under 5,750sf, reducing the pain of the traditional subdivision process.    Site Plan Lite — Fast-track review for 5-16 units (Austin)   Extends the site-plan exemption/streamlined review to infill projects of 5-16 units on ≤ 1 acre, with a 90-day approval target (we’re still a bit skeptical on this one)   Relaxes drainage rules and reduces on-site detention, reducing infrastructure burden on small multifamily projects.    SB 2835 – Legalizing Single-Stair Apartment Buildings (Texas Statewide)   Legalizes single-stair multifamily buildings up to six stories across Texas (exceeding Austin’s recently passed 5-story limit).   Unlocks a broader range of “missing middle” housing types, including walk-ups and courtyard apartments.    SB 15 – Smaller Homes on Smaller Lots (Texas Statewide)   Reduces minimum lot sizes and setbacks in large cities on un-platted land, enabling construction of smaller, more affordable single-family homes.   Intended to boost starter home supply and lower entry-level housing costs.    IRC horizontal fire-separation update — stacked units stay residential   Austin’s adoption of the 2024 IRC now recognizes horizontally separated, vertically stacked residential units, potentially making stacked duplexes, triplexes, flats feasible again     Quantifying the impact across Austin   We've identified 5,000+ sites in Austin where SB 840 makes new housing possible       View live map         Questions?   Schedule a time below to learn more about Cedar or share your feedback.       Schedule time         Share this newsletter         Cedar - a technology enabled architecture firm that connects local zoning and land development regulations with a national standard for infill housing.   522 Congress Avenue, Suite 400 · Austin, TX 78701

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