Download a copy of the SB 840 Information Sheet

What is SB 840?

  • The Texas Legislature passed Senate Bill (SB) 840 to increase housing stock.
  • SB 840 allows more market-rate housing to be built on most property zoned commercial.
  • SB 840 applies to most properties that allow office, commercial, retail, warehouse, or mixed-use uses.
  • SB 840 goes into effect September 1, 2025.

The Details:

  • SB 840 allows multifamily residential or mixed-use residential development in any commercial zone or any commercial use building.
  • Under SB 840, multifamily and mixed-use residential developments in commercial zones will, by right, be able to:
    • Reach a height that is the greater of 45 feet or the height that applies to commercial uses for the site.
    • Reach a density of up to 54 units per acre.
    • Include setbacks that are the lesser of 25 feet or the setbacks imposed on commercial uses.
    • Develop unlimited floor-to-area ratio (FAR).

How SB 840 Affects Affordable Housing & Density Bonus Programs

  • Voluntary density bonus programs are one way the City encourages builders to include affordable housing in new developments.
  • Incentives relating to density bonus programs may be reduced unless an applicant seeks additional modifications of development standards beyond what is allowed by right in SB 840, such as additional height.
  • SB 840 may result in fewer affordable housing units included in new developments.
  • The City remains committed to growing its affordable housing availability.

How Will the City Address SB 840?

  • The Development Services Department will be ready to accept new applications consistent with the changes in SB 840 beginning September 1.
  • City staff will work on process changes to improve implementation of SB 840 and develop options for City Council consideration that would support Austin’s density bonus programs.
  • The City remains committed to growing its affordable housing availability.

If you are ready to start on a project and want to ensure it is compliant with these new requirements, visit AustinTexas.gov/PDC-Appointments to speak with a staff member.