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Traversing the New Texas Real Estate Landscape

Leslie Cidale : Apr 14, 2024 10:59:58 AM

real estate Austin, Texas government real estate law

Traversing the New Texas Real Estate Landscape

In Texas’s 88th legislative session last year, legal and regulatory changes that are poised to impact the real estate market significantly were introduced. The ultimate influence of these changes will depend on numerous factors, including their implementation, interpretation by legal systems, and responses from market participants.

Here's a breakdown of the key legislative updates and why they matter to different stakeholders in the real estate sector.

For All Property Owners: The Introduction of SB 929

What Changed: SB 929 relates to the notice and compensation a municipality must provide before revoking the right to use property for a use that was previously allowed and introduces a process for property owners who are required to cease a now nonconforming use. Owners now have the option to receive compensation for certain costs plus the decrease in the market value of their property. Alternatively, they can recoup this amount through the continued nonconforming use of their property.

Why It Matters: This legislative change gives property owners more flexibility and control. As a result, municipalities might adjust their approach to zoning issues, potentially leading to significant changes in how properties are used and valued.

For Homeowners: The Implications of SB 2 (Second Special Session)

What Changed: SB 2, passed during the Second Special Session, brings modifications to the property tax system. Notable changes include an increased homestead exemption and a three-year, 20 percent appraisal cap on non-homestead properties valued under $5 million.

Why It Matters: These changes could make homeownership more attainable and sustainable, allowing more Texans to retain their homes. Ripple effects might be felt throughout the real estate market and the broader Texas economy.

For Commercial and Residential Developers: Understanding HB 3697, HB 14, and HB 1526

HB 3697 and HB 14:

What Changed: These bills alter what counties can require for plat approval, allow for plat approval delegation, and enforce stricter timing requirements. If a regulatory authority fails to conduct document review or development inspection within 15 days, a qualified third party may step in.

Why It Matters: This legislation could streamline the approval process for developers, although it may also lead to more variability in how plats are approved.

HB 1526:

What Changed: This bill impacts development in municipalities with populations over 800,000 by prohibiting the mandatory dedication of parkland, or fees in lieu thereof, for commercial uses, excluding multifamily, hotel, or motel developments.

Why It Matters: By potentially reducing costs and freeing up more land for development, this legislation could encourage new projects, altering the landscape of urban development.

For All Developers: The Significance of HB 2127

What Changed: HB 2127 aims to reduce certain regulations imposed by municipalities and counties.

Why It Matters: This legislative change could lead to more straightforward, quicker, or less costly development processes, positively influencing the pace and scale of real estate development across Texas.

These legislative updates from the 88th Texas Legislature mark a period of transformation. As the changes take effect, it will be important for property owners, homeowners, and developers to remain informed and flexible to successfully navigate the changing Texas real estate landscape.

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Sources: Texas Real Estate Research Center at Texas A&M University and the Texas Real Estate Commission.

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