City of Dallas braces for sweeping state law allowing commercial buildings to be converted to multifamily projects

By |Published On: August 26, 2025|Categories: Dallas News, Development + Zoning, Public Meeting Briefs|

Documenters Brief

News Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources.

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City staff and planning commissioners are bracing for a new state law that allows for commercial buildings to be converted to multifamily, dramatically allowing for the construction of more housing units but eliminating local control.

Senate Bill 840, which is set to become law in September, requires cities like Dallas to allow multifamily and mixed-use residential development in zoning areas that currently allow office, commercial, retail, warehouse or mixed-use.

This means lots intended for commercial buildings can be converted into apartments without a zoning change request. Instead these conversion will be handled by city staff.

The bill also limits the city’s authority to regulate certain aspects of these developments. These include- 

  • Height: The minimum height requirement for multifamily and mixed-use can’t be less than 45 feet (typically 3-4 stories). The height also can’t be lowered when converting from commercial to multifamily.
  • Setback: The max setback of a project from the street is now 25 feet. The setback can’t be increased when converting from commercial to multifamily.
  • Density: In Dallas, there will be no maximum density limits for these developments.

The bill is intended to address the state’s housing shortage, but removes local control and community input from these zoning changes.

At the city, staff are set for a “massive undertaking” to prepare procedures and screening for these potential conversions and are taking a look how to manage exclusions and historical districts.

“We need to take a closer look at our historic districts, conservation districts and PDs,” Planning and Development Manager Jenniffer Allgaier said during a recent CPC meeting. “We have 1,200 of them and in various degrees of applicability.”

Watch the 8/7 meeting here.

About the City Plan Commission:

The Dallas City Plan Commission is responsible for making recommendations to the city council regarding planning and zoning matters. It consists of 15 city council- and mayor-appointed members.

Dallas Documenter Brianna Patt attended the Aug. 7 Dallas City Plan Commission public meeting, and this brief emerged from her notes. Click here to read Patt’s full notes, and here to learn how you can become a paid Documenter at public meetings.

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One Comment

  1. Dajuan August 27, 2025 at 1:14 pm

    Will that lower the cost of rent?

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