T
exas Governor Greg Abbott signed hundreds of bills into law before his June 22, 2025 deadline. Three significant laws, Senate Bills 15, 17, and 840, will impact affordable housing in Texas and foreign property acquisitions. These laws take effect on September 1, 2025.
The nationwide housing crisis has affected Texas residents, with the state's housing affordability hitting its lowest level since 1985. To address this issue, SB 15 and SB 840 aim to lower costs by reducing municipal regulations on new residential properties in major cities. These bills limit minimum size, density, and accommodation requirements for single-family homes and mixed-use or multifamily dwellings.
Under SB 15 and SB 840, municipalities must permit single-family dwellings with a minimum of 3,000 sq ft, 30 ft width, and 75 ft depth. Mixed-use and multi-family buildings can be limited to no lower than 45 ft in height or the maximum for commercial spaces. Density limits below 36 units per acre are also prohibited.
SB 840 gives owners of commercial spaces a private right to convert certain nonresidential spaces for residential occupancy. This law aims to give developers the opportunity to abandon lagging commercial projects and try their hand in housing. SB 840 permits multifamily or mixed-use developments by right in commercial zones without needing rezoning, variances, or plan amendments.
SB 17 restricts foreign entities from acquiring property in Texas, particularly those linked to countries designated as national security threats by the U.S. Director of National Intelligence. Designated countries currently include China, Iran, North Korea, and Russia. The governor has discretion to designate or remove designations of a country or entity.
Violators incur a civil penalty, which is the greater of $250,000 or 50 percent of the market value of the interest in real property that is the subject of the violation, as well as mandatory divestiture. The attorney general will begin adopting rules for the bill's implementation following September 1, 2025.
The laws affect cities with a population of more than 150,000 located at least partly in a county of more than 300,000. Some exceptions include short-term rentals and areas near government facilities or deed restrictions. Organizations or individuals adversely affected by a violation are entitled to seek declaratory and injunctive relief against the municipality as well as reasonable attorney's fees.
The USDA Secretary announced the Farm Security Action Plan on July 8, 2025, which aims to end the direct or indirect purchase or control of American farmland by nationals from countries of concern or other foreign adversaries. This plan may lead to similar actions across the nation.
