How Multifamily Approvals Work in Dallas

Multifamily development in Dallas moves through two paths. One is the City of Dallas Planned Development District process, a form of rezoning approved by City Council ordinance after a City Plan Commission hearing. The other is the administrative path Texas Senate Bill 840 created in 2025 for qualifying sites already zoned for office, commercial, retail, warehouse or mixed-use development.

Texas Senate Bill 840

The Texas Legislature passed Senate Bill 840 in 2025. The governor signed it June 20, 2025, and it took effect September 1, 2025 (SB 840, 89th Leg., R.S.). The bill adds Chapter 218 to the Texas Local Government Code and Section 211.0011 to Chapter 211. It applies only to a municipality with a population greater than 150,000 located wholly or partly in a county with a population greater than 300,000 (Tex. Loc. Gov't Code s. 218.002). Dallas meets both thresholds.

• Where a site is zoned for office, commercial, retail, warehouse or mixed-use development, the city must allow mixed-use residential or multifamily residential use on that site (s. 218.101).
• For a qualifying project, density cannot be set below the greater of the city's highest existing residential density or 36 units per acre, and height cannot be set below the greater of the city's highest commercial height or 45 feet (s. 218.102).
• Setbacks and buffers cannot exceed the lesser of the city's comparable commercial standard or 25 feet, and required parking cannot exceed 1 space per unit, with no multi-level parking structure required (s. 218.102).

How SB 840 approves a qualifying project

For a project that meets every condition in Chapter 218, the statute directs the municipal authority to approve the permit administratively, and the approval needs no further action by the city's governing body to take effect (Tex. Loc. Gov't Code s. 218.102(b)). The law leaves other city authority in place, including rules on short-term rentals, water quality and density bonus programs (s. 218.003). Separate sections set parameters for converting an office, retail or warehouse building at least 5 years old to 65 percent or more residential occupancy, including limits on required traffic studies, added parking and impact fees for that conversion (s. 218.201 to 218.204). A site outside a qualifying commercial zone, or a project that does not meet one of these parameters, still follows the city's standard zoning process.

Dallas Planned Development Districts

Outside SB 840's path, multifamily development in Dallas is commonly approved through a Planned Development District (PD), a zoning tool under the Dallas Development Code. The city groups a PD with a general zoning change and a specific use permit as a rezoning record in its development review system (City of Dallas, Zoning Resources). A PD is established or amended by City Council ordinance, following a City Plan Commission hearing and recommendation. PD No. 305, for one example, was created by Ordinance No. 20546 and later amended through that same path (City of Dallas, Planned Development District 305).

The standard Dallas rezoning process

For a zoning case, including a PD, the city follows three steps (City of Dallas, Zoning Change Process):

• Staff review of the application, about one to two months.
• A City Plan Commission public hearing, where the commission votes on a recommendation to City Council.
• A City Council public hearing, scheduled about one month after the commission's recommendation, where the council takes the final vote.

The city states the full process takes about two to three months from application to Council decision, and that a case returning to an earlier phase is common.

Questions

Does SB 840 apply everywhere in Dallas?

No. It applies only where a site is already zoned for office, commercial, retail, warehouse or mixed-use development, and only to a project meeting the law's density, height, setback and parking parameters (Tex. Loc. Gov't Code s. 218.101, 218.102).

Is SB 840 in effect as of October 2026?

Yes. The governor signed it June 20, 2025, and it took effect September 1, 2025 (SB 840, 89th Leg., R.S.).

Does a Planned Development District still need a City Council vote?

Yes. A PD is created or amended by City Council ordinance after a City Plan Commission hearing and recommendation, the same path used for other Dallas zoning changes (City of Dallas, Zoning Change Process).

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