New Texas law limits city bans on manufactured homes
Texas law now allows more manufactured homes
A new Texas law now loosens restrictions for approved manufactured homes. FOX 26's Karys Belger explains the new rules and some Houston-area cities that are already following them.
HOUSTON - A new Texas law is limiting the ability of cities to exclude manufactured homes, potentially opening another path to affordable homeownership in suburban communities.
New Texas law on manufactured homes
Big picture view:
Senate Bill 785 took effect Sept. 1. It requires municipalities with zoning regulations to allow new HUD-code manufactured homes by right in at least one residential or dedicated manufactured-home zoning district.
"The direct answer that I give is, it just means that cities can’t ban manufactured housing entirely," said DJ Pendleton, executive director of the Texas Manufactured Housing Association.
The law does not require cities to permit the homes everywhere. Municipalities can decide which qualifying district will allow them, and the district must apply to an actual area shown on the city’s zoning map.
What the law covers
Dig deeper:
SB 785 applies specifically to new homes constructed under federal standards administered by the U.S. Department of Housing and Urban Development.
It does not cover used manufactured homes or mobile homes built before the federal HUD code took effect in 1976.
The law also prevents a municipality from requiring a specific-use permit, or a similar type of approval, for a new HUD-code manufactured home when other residential properties in the same zoning classification do not require one.
An application to install a new HUD-code manufactured home is considered approved unless the municipality denies it in writing and provides a reason within 45 days.
Pendleton said factory construction allows manufacturers to control more of the building process, avoid weather delays and achieve efficiencies through producing homes at scale.
The industry generally serves rural areas, he said, but the new law could create opportunities in cities that previously prohibited or sharply restricted the homes.
Click here for more resources on SB 785
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Adjustments in Houston area
Local perspective:
League City changed its ordinance ahead of the law’s effective date. The city now allows new HUD-code manufactured homes by right in its RSF-2 residential district and no longer requires a specific-use permit for those homes.
Pearland told FOX 26 it did not need to change its ordinance because manufactured homes were already allowed by right in its existing MH zoning district.
A map provided by Pearland identifies seven MH-zoned areas totaling approximately 51.32 acres. However, the city requires a minimum lot size of three acres within that district.
Pearland said a property owner could submit an application without seeking conditional-use approval if the proposed location is within the designated area. The city had not received any applications or inquiries related to the new law as of Sept. 9.
Helping or hurting housing?
What they're saying:
The amount and condition of the land designated by a city could determine whether the law creates practical opportunities for buyers.
Sara Bronin, founder of the National Zoning Atlas, said regulations that may appear minor individually can collectively limit affordable housing.
"At the National Zoning Atlas, we’ve seen local jurisdictions all over the country put in certain specific provisions that might not mean anything to a non-planner or a non-lawyer, but those types of provisions can add up to make affordable housing harder to build," Bronin said.
Minimum lot sizes, setbacks, minimum home sizes and design standards can increase the total cost of a project. Land shown as compliant on a zoning map may also already be occupied, lack necessary infrastructure or otherwise be unavailable for new development.
Pendleton described attempts to comply without creating realistic opportunities as "creative compliance."
He said larger lot requirements inherently make a project more expensive because buyers must purchase more land in addition to paying for the home.
Statewide impact
By the numbers:
Before the bill became law, the National Zoning Atlas examined zoning regulations in 579 Texas municipalities, representing areas where approximately 79% of the state’s population lives.
Researchers estimated that 255 of those municipalities, or 44%, would need to take some action under the proposed legislation. That included 190 cities that did not expressly allow manufactured housing and 65 that allowed it only through a special permit or public hearing.
Another 135 municipalities already had at least one mapped district allowing manufactured housing by right. The remaining communities in the study either did not have zoning or met an exemption analyzed by the researchers.
The National Zoning Atlas report evaluated an earlier version of the legislation. That version would have required cities to designate a "substantial area" for manufactured housing. The language does not appear in the final law, which requires the qualifying district to apply to "an area of land" within the municipality.
What buyers should know
What you can do:
Prospective buyers should verify that a property is appropriately zoned before purchasing either land or a manufactured home.
They should also determine whether the property meets local requirements involving lot size, setbacks, utilities, access, installation and design.
SB 785 changes where new HUD-code manufactured homes must be legally permitted, but it does not guarantee that suitable land will be available or affordable.
The Source: Texas Legislature enrolled SB 785, TMHA SB 785 Resource Center, Pearland interactive zoning map, National Zoning Atlas legislative brief, City of Pearland, City of League City, DJ Pendleton interview and Sara Bronin interview.