According to the Legislative Budget Board (LBB), SB 785 is not expected to have any fiscal impact on the state budget. The legislation, which mandates broader municipal acceptance of new HUD-code manufactured homes and limits local regulatory discretion, does not require any new expenditures, revenue adjustments, or administrative infrastructure at the state level.

At the local level, the fiscal implications are likewise considered negligible. The bill restricts municipalities from imposing certain fees or permits for manufactured housing installations and prohibits zoning ordinances that would broadly exclude such homes. However, local governments may still recover actual costs related to transportation impacts. Because the bill does not create unfunded mandates or require material changes to existing local operations, no significant fiscal burden on cities or counties is anticipated.

In summary, SB 785 facilitates a shift in regulatory posture without introducing direct financial costs to either state agencies or local governments. The policy is designed to be administratively simple while promoting housing flexibility and affordability through deregulation rather than resource-intensive programming.

SB 785 reflects a targeted and measured approach to addressing one of Texas’s most pressing issues: the shortage of affordable housing. It does so by curbing discriminatory or overly restrictive municipal regulations that block the installation of new HUD-code manufactured homes. These homes are federally regulated, built to rigorous safety standards, and offer a cost-effective housing solution for many working-class Texans. SB 785 does not impose a statewide zoning mandate or override all local control; rather, it requires that if a municipality allows residential uses in a zoning district, it cannot selectively discriminate against manufactured homes without applying the same restrictions to all housing types in that district.

The bill is narrowly tailored to prevent local governments from using specific use permits and zoning classifications in ways that functionally exclude manufactured housing, often to the detriment of lower-income residents. It does not interfere with private deed restrictions, does not apply to all municipalities, and explicitly exempts historic districts and areas that are already comprehensively deed-restricted. These guardrails ensure that the bill does not undermine good-faith municipal planning or community-driven land use efforts.

Concerns raised about the erosion of local authority under SB 785 are valid in principle but misaligned in this instance. Local Government Code Chapter 213 provides a framework for municipal planning, but it does not grant cities the power to block access to federally approved housing on a discriminatory basis. Comprehensive plans must be implemented through zoning ordinances that comply with state and federal law. SB 785 simply ensures that municipalities cannot use zoning or permitting discretion to arbitrarily exclude a legal and often necessary form of housing. In this way, the bill protects both the spirit of equitable planning and the housing rights of underserved Texans.

Unlike broader preemption bills such as SB 15, which removed a range of local zoning tools without corresponding infrastructure or affordability requirements, SB 785 respects the balance between local governance and individual property rights. It imposes no infrastructure mandates, introduces no fiscal burdens, and does not enable speculative overdevelopment. It instead ensures that manufactured home residents are treated with the same fairness and dignity as those in other forms of housing.

Furthermore, this legislation supports principles of individual liberty by defending the right of homeowners to choose lawful, affordable housing options without facing unjustified regulatory discrimination. It promotes free enterprise by opening markets to a segment of the housing industry that has been structurally excluded by outdated zoning practices. And it affirms private property rights by allowing individuals to use their land for HUD-code homes within reasonable limits.

In sum, SB 785 is a thoughtful, restrained, and equity-driven piece of legislation that corrects a specific and longstanding misuse of local regulatory authority. It affirms housing access, protects local planning where justified, and aligns with key principles of liberty, responsibility, and fairness. For these reasons, Texas Policy Research recommends that lawmakers vote YES on SB 785.

• Individual Liberty: The bill reinforces individual liberty by protecting the rights of Texans, particularly low- and moderate-income families, to choose a lawful and affordable housing option. Manufactured homes are a critical pathway to homeownership for many who are priced out of the traditional housing market. By preventing municipalities from using selective zoning rules to block these homes, the bill restores freedom of choice in residential living. It ensures that personal housing decisions are not arbitrarily constrained by outdated biases or restrictive zoning codes.
• Personal Responsibility: The principle of personal responsibility is reflected in the bill’s recognition that homeowners who choose manufactured housing are capable of managing their own affairs and contributing to their communities. The bill empowers individuals to make fiscally responsible decisions about homeownership without needing government approval through burdensome permits or discretionary zoning processes. Importantly, the bill does not subsidize or waive infrastructure responsibilities—it merely removes unjustified barriers, allowing residents to bear the costs and consequences of their housing choices freely.
• Free Enterprise: The bill supports a competitive and open housing market by preventing artificial restrictions that suppress supply. Municipalities that selectively prohibit manufactured homes limit consumer choice and distort the housing market in favor of more expensive, site-built homes. This bill helps correct those distortions, allowing manufacturers, retailers, and landowners to meet market demand without facing protectionist local ordinances. The result is a freer, more dynamic market where affordability and innovation can thrive.
• Private Property Rights: The bill strengthens private property rights by ensuring that landowners can lawfully use their property for HUD-code manufactured homes if the zoning district already permits residential use. It eliminates the unequal treatment of manufactured homes under zoning laws and permits treatment that often amounts to de facto bans. The bill makes clear that property rights are not reserved only for those building conventional homes, but extend equally to those using other lawful, regulated housing types. It also respects deed restrictions and historic preservation ordinances, maintaining a balance between property rights and legitimate community standards.
• Limited Government: The bill embodies the principle of limited government by rolling back municipal overreach that has gone beyond reasonable planning and into exclusionary control. The bill does not impose a new statewide zoning mandate or create a central planning framework. Instead, it removes regulatory excesses that restrict a specific class of housing without compelling justification. It ensures that local governments operate within fair and consistent bounds, especially when managing land use in ways that affect individual freedom and economic opportunity.

• HB 1835 (Same As)