Relating to the regulation of new HUD-code manufactured housing, the official text

S.B. No. 785

AN ACT

relating to the regulation of new HUD-code manufactured housing.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 1201.008, Occupations Code, is amended

by amending Subsections (b) and (d) and adding Subsections (d-1),

(g), and (h) to read as follows:

(b) Subject to Subsection (g), on [On] application, the

municipality shall permit the installation of a HUD-code

manufactured home for use as a dwelling in any area determined

appropriate by the municipality, including a subdivision, planned

unit development, single lot, and rental community or park. An

application to install a new HUD-code manufactured home for use as a

dwelling is considered to be granted unless the municipality in

writing denies the application and states the reason for the denial

not later than the 45th day after the date the application is

received.

(d) Except as approved by the department and subject to

Subsection (d-1), a local governmental unit may not require a

permit, a fee, a bond, or insurance for the transportation and

installation of manufactured housing by a licensed retailer or

installer. This subsection does not prohibit the collection of

actual costs incurred by a local governmental unit that result from

the transportation of a manufactured home.

(d-1) A municipality may not require a specific use permit or

other permit that serves a similar purpose to a specific use permit

for a new HUD-code manufactured home if:

(1) the home has been constructed in accordance with

federal law and this chapter; and

(2) the municipality does not require a specific use

permit for other residential property in the same zoning

classification.

(g) Except as provided by Subsection (h), a municipality

with zoning regulations or zoning district boundaries:

(1) shall permit the installation, by right, of a new

HUD-code manufactured home for use as a dwelling within the

municipality's boundaries under at least one:

(A) residential zoning classification;

(B) type of residential zoning district; or

(C) dedicated zoning classification for

residential HUD-code manufactured homes;

(2) shall ensure at least one of the residential

zoning classifications or districts described by Subdivision (1)

has been adopted and applies to an area of land within the

municipality's boundaries; and

(3) if the municipality has a comprehensive zoning

classification map, shall indicate on the map the areas within the

municipality's boundaries that comply with Subdivision (2).

(h) Subsection (g) does not:

(1) limit the authority of a municipality to adopt or

enforce an ordinance, rule, or other measure to protect historic

landmarks or include properties within the boundaries of a local

historic district;

(2) affect deed restrictions established before

January 2, 2025; or

(3) apply to a municipality:

(A) in which all areas zoned for residential use

have deed restrictions on September 1, 2025, prohibiting the

placement of manufactured homes; or

(B) that does not have any areas or districts

zoned for business or industrial use.

SECTION 2. This Act takes effect September 1, 2026.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 785 passed the Senate on

April 10, 2025, by the following vote: Yeas 28, Nays 2; and that

the Senate concurred in House amendment on May 30, 2025, by the

following vote: Yeas 30, Nays 1.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 785 passed the House, with

amendment, on May 27, 2025, by the following vote: Yeas 96,

Nays 41, two present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor