City of Austin Is Standing Tall
Giddy Up! City of Austin Shows Off Its Views of SB840 at its October 21, 2025 online event.
Howdy Y’all! Before I jump headfirst into this exciting post, I want to be plain and straight with y’all to make sure you haven’t been asleep or something with all the fuss brewing around the State on SB840. So, let’s begin at the beginning. It all started when…
The folks at the Legislature gathered like they do and came up with the notion of State Zoning. It’s like the wrangler deciding to rustle up cattle in nearby ranches instead of just staying on his own ranch - or at least that is how is must feel. I mean, zoning for a city is a pretty powerful little thing. Just listen to this city council man from Dallas say it loud as a bell.
Anyways, just a few months ago, this all got decided and the State, in this case it is the great big state of Texas, is telling a whole much of cities that they are the new wrangler in town when it comes to deciding on where apartments and for-sale type of housing all stacked or with touching walls can go.
This big bold and daring type of move is known in the Lone Star State as State Bill SB840 or SB840 for shorts.
SB840 is set up to mandatory mandate giving multiple kin to live apart or together in apartments or a cross between all apartments or with a dash of commercial like area. And this decree isn’t just on land owned by the government, oh no. It is done as a “by right” kind of arrangement throughout the city.
No extra work for them city staff or committees, commissions or any other “c” like goup - they just need to green lights “by right” development of multifamily (or mixed-use residential) developments in those zoning districts that previously were commercial with your shops, barbers, or feed stores etc. even some factory like areas if they aren’t too messy are ok for SB840. The point is the State gets to tell the City what to do.
But my gosh are folks clever when their backs are against the wall. I’ve been writing about places making it extra fun to build in their city now. Just take Grand Prairie and their new extra super duty regulations requiring a pool be part of the package.
But Not Austin
Austin might be more plain jane than I could have ever thought it would relative to its treatment of SB840.
Keep in mind, the ability to “add housing” to commercially zoned land has been okay in Austin for some time. You know that “MU” kind of district?
But, the biggie now with SB840 is that it gives a way to build just units, not one of those pesky hard-to-finance mixed use projects. Yep, I know, city slickers like walking to bars, stores etc. No problem with that and if the developer thinks the location works for such a hip and happening concept. Well there ya go SB840 says fine and dandy!
Plus, SB840 provides a big boost, like getting a few extra turns of your rope, with its more friendly building size rules. And, those developers running around are likely thinking it will be much less of a dog fight with neighborhood groups to get the permits. Why? Because SB840 is “by right” which is like “green light” so no extras needed, unless the developer struts into City Hall asking for more height or more something than can be offered “by right.” No need to get a “CO” on the way to get a permit - it is green light go!
By the way, some of you reading this will remind me that some developers had gotten pretty crafty working through an industrial zoning district, something about a loophole? Well, that’s another story for another day. The irony is industrial zoning in City of Austin is SB840 exempt so I guess that path carved will stay open.
The focus here is on that online event just a few weeks ago in which several of City of Austin’s Development Services gave a presentation and took questions. Included in that call: Isis Lopz, Brent Lloyd, Lyndi Garwood, Chris Johnson, Clarissa Davis and Heather Chaffin. I’m much obliged to these folks for making themselves available. Did any of ya attend? Let me know!
Let’s get into it!
The City of Austin is mighty important for my round up of SB840 stories; in fact, it tops my list. I was pestering the folks at Development Services asking for guidance leading up to September 1st when SB840 was placed into action. I’m happy to write, I was not let down but the recent online event was where it all connected for me, like a good bit of riding on the ranch.
For one thing, the Legislature is right there down the road from City Planning and Development Services. If you’ve never been to the website, you might want to take a moment to peruse (link) and check out the offerings. Hey did y’all hear about the new logo for the City of Austin? Quite a controversy so take a moment and take stock what just over $1 million will get ya these days (fun read on backstory here).
For another, this is a city known for its politics and love of highly technical regulations, then realizing the issue and undoing them and then turning around and adding back (think DB90 if you will). It’s a like a puzzle you just wanna get right!
To start off - the full city information is provided in this link to the October 21st city zoom and is also on our Resource page under Austin.
Austin: SB840 exempts “Heavy Industrial Uses” Uniquely
SB840 includes an exclusion for “heavy industrial uses” which relates to industrial zoning districts cause that’s where all those loud, dirty and messy types of activities belong, right? Now, some cities have carved out just the worse of the worse for this type of exclusion which simply means some of their cities industrial zoning can carry SB840 type projects, like packing a mule for a journey - they can handle it.
But, as we’re all learning about definitions, it is just as keenly important to know there are interpretations, the old “this is what I think this must mean” kinda mental activity often done with the help - or perhaps exclusively by - a professional attorney. Now, we all know cities have plenty of talent on their staffs so it is the case with their legal minds. Me, I’m not Rhodes Scholar or BAR member so I’m just expressing my opinions and thoughts as we ride towards the sunset.
I had thought myself pretty well schooled from the School of Hard Knocks in the area of land use and zoning and really figured the City of Austin would view “heavy Industrial use” as simply applying to say the heaviest of the heavy zoning districts. But I was wrong…their view is to exclude them all.
You can read it and you decide but know that in Austin if you’re looking a property that is zoned IP, LI, MI or even one of them PDAs or PUDs or even R&D you may not get to do the SB840 dance. SB840 defines “heavy industrial use” as:
“storage, processing or manufacturing use with any of these elements:
a. processes using flammable or explosive materials;
b. hazardous conditions; or
c. noxious or offensive from odors, smoke, noise, fumes or vibrations.”
So there you have it.
City of Austin has been kind enough to add what the uses are that track with this definition as:
basic industry, general warehousing and distribution (think Amazon), light manufacturing (putting those things together here in the USA with “materials sourced globally), recycling center, resource extraction (dump) or get this…stockyards (smelly!).
So now you know something you didn’t know, just maybe. Next…
Austin: SB840 allows two different uses in two different buildings on the same parcel to qualify as Mixed Use Residential
Austin made quite a talk about the mixed-use residential being able to be two buildings on the same parcel. You see, before SB840, they were all focused on the same building having a ground floor commercial something or another kind of fun and maybe useful service. SB840 is particular about the ratio in a “mixed use residential” project and states 65% housing and 35% commercial.
Austin: A Townhouse is not a Rowhouse
Rowhouse vs. Townhouse took up some time discussing and that’s because again, the city has defined townhouse as one unit for one parcel and that would not work for SB840. However, you can substitute the look and feel of a townhouse with a rowhouse and all is just fine. The big deal thing is to be sure there are plenty of rowhouses on the same parcel.
Other Tidbits
I sure was hoping the Austin zoom call would offer a “throw down” kind of discussion to hear how Austin presented its view of SB840 versus Dallas. No such luck - in fact, from the get go, it was made mighty clear this would be none of that.
My heart sank because I keep seeing these variations and wondering “why?” and “how?” but I guess that will continue to be, as they say in all good tales, part of the journey unfolding.
On a 1-10 scale, I’d say it was a 7 to 8 on technical. It spent a whole host of time on Chapter 25-2, Subchapter E which gets into the super details engineers and architects live for to make their dream project a “go.” Things like the road type (core transit corridor vs urban roadway) and such…it is serious business and for those of my readers in marketing and business development, take a moment to breath a sigh of relief you didn’t major in engineering, ahhhh…
Talk about “Compatibility”
With SB840, the City of Austin is now using 45 feet instead of 40 feet. This adds 5 feet to the current rules so those who know how all this works, just add 5 feet for that building height. For those who don’t know what in the world this is all about, it is a nice thing to have if you’re in a position where your house is next to a SB840 property.
By SB840 property I mean that the new SB840 bill now allows that formerly commercial location to have housing -for rent or for sale at a density of 54 units per acre. The “Compatibility” gives screening and 25 feet of distance. The technical jargon goes something like 10 feet with a Screening Zone (not to be confused with a screen door but trees, landscaping stuff) then another 15 feet for a “restriction zone” which I gather means 'no building.’
Anyway, it makes it better to have some space and light around you don’t you think?
In Closing
Cowboys and Cowgirls, its been a pleasure working on this little post. I’m writing so much these days, adding little handouts by city (if you haven’t found it yet, this page is filling up!). Plus, I’m working like crazy to keep up with the info coming in city by city. I’d sure love any tips you might hear so write me. I’d sure appreciate it.
Lastly, keep these links somewhere save so you can find them again. It is the abbreviated version of Austin’s SB840 from the city itself and here’s the link to the October 21, 2025 zoom again. Here’s to you and your wanting to learn!
