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SB1567

Regular Session

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

Moderate
Low Cost
Effective:2025-09-01
Enforcing Agencies

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

SB1567
Moderate
Relating to the authority of home-rule municipalities to regulate the occupancy of dwelling units.
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
Fifteenth Court of AppealsTexas Civil Courts
Primary Author: Sen. Paul Bettencourt
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, 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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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.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Feb 24, 2025
Passed Senate
Apr 14, 2025
Passed House
May 28, 2025
Signed
Jun 20, 2025
TopicsCity GovernmentCity Government--land Use & ZoningCounty GovernmentCounty Government--land Use & ZoningCivil Remedies & LiabilitiesHousingHousing--general
03

Senate Authors

Sen. Paul BettencourtRepublican · Primary Author
Coauthors (1)

House Sponsor

Rep. Cody VasutRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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Quick Reference

Frequently Asked Questions

Common questions about SB1567

Q

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.

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

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.

Legislative data provided by LegiScanLast updated: November 25, 2025

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