Texas Legislative Recap: Local Real Estate Perspective

It is no secret that we are big believers in our hometown market and that we believe being local is a key to our success.  We also believe in being an active participant in our market, volunteering, and helping wherever and however we can.  As many of you know, Cooper has long valued the opportunity to serve our industry through legislative and local advocacy with the Real Estate Council of Austin (RECA) at the city, county, and state levels.

A couple of weeks ago, the State of Texas concluded its 89th Legislative Session. In Texas, the Legislature meets every two years, convening at noon on the second Tuesday in January of odd-numbered years, for a constitutionally limited 140-day session.  At each of these sessions, there are always large and impactful bills that get discussed and passed and can create (or close) opportunities for the real estate industry.  Since hiring a full-time lobbyist five sessions ago, RECA’s influence in shaping Texas real estate and land-use policy has grown significantly. We have utilized RECA’s staff, volunteers from the Board and Executive Committee, as well as our lobbying team.  

What began as a session that looked quiet, quickly became a very active one, with several important wins for our market and industry.  The biggest headline was related to House Bill 21, which drastically changes the rules around traveling HFC’s and their ability to partner with owners and developers outside of their home jurisdiction.  The implications of this bill stand to be huge (and not in a positive way) for operators that had partnered with a Traveling HFC, and its passing has already spurred legal action and lots of questions.  We are happy to report that Wildhorn had steered clear of this path, as there had been rumblings that it was on the radar of the Legislature.  Now that it has passed, we will be watching to see the impacts and opportunities that may arise because of it.

Outside of HB21, there were a number of meaningful bills passed that relate to the local real estate scene.  Below, I’ve included RECA’s legislative session recap, which outlines some of the key accomplishments from this year. 

Top RECA Wins:

• New housing unlocked statewide. Residential and mixed-use developments will now be allowed by right in commercial zones—an effort led by RECA from bill drafting to final passage. (SB840)
• Rezoning made easier. Complex rezoning rules were simplified, streamlining development and increasing clarity—due in large part to RECA’s advocacy. (HB24)
• Austin’s transit future protected. Several attempts to derail Project Connect were stopped due to RECA’s tireless work with city leaders and the Austin Transit Partnership.

Additional Wins Supported by RECA:

• Extraterritorial jurisdiction loopholes closed. Clearer standards now govern how land is removed from a city’s extraterritorial jurisdiction. (HB2512)
• Impact fee hikes limited. New safeguards will rein in sudden increases. (SB1883)
• Downtown development opened up. Outdated Capitol View Corridors were removed, clearing the way for new growth. (HB3114)
• More “missing middle” housing. New rules will help diversify housing stock across Texas so we can build more and different homes. (SB15)
• Modern building standards have expanded. Single-stair construction is now approved statewide, mirroring Austin’s innovation. (SB2835)

If you’re not already a member, I’d strongly encourage you to consider joining or supporting RECA (www.RECA.org). As a 501(c)(6) organization, all contributions directly support our mission. We’re also always happy to jump on a call to discuss the update or any of the items in more detail.