Relating to the authority of home-rule municipalities to regulate the occupancy of dwelling units.

HB 2797 prevents Texas home-rule municipalities (like Austin or Dallas) from banning housing occupancy based on age, family status, occupation, relationship, or blood relation. The bill allows cities to still enforce occupancy limits tied to health/safety codes (e.g., building standards, fire regulations, or state health guidelines). Property owners can sue cities that violate this law and seek damages or court orders, with municipalities losing immunity from such lawsuits. This directly affects how cities regulate housing rules but does not restrict private agreements like homeowners' association rules.