Relating to certain municipal and county regulation of certain multifamily and mixed-use residential development projects and conversion of certain commercial buildings to mixed-use and multifamily residential occupancy.

HB 3404 requires certain large Texas cities (population over 60,000 in counties with over 420,000 residents) and counties (population over 420,000) to allow mixed-use residential and multifamily residential development in zoning areas already permitting commercial uses. It prohibits local governments from demanding zoning changes, variances, or special approvals before permitting such projects, which include conversions of commercial buildings to housing. The bill defines "mixed-use residential" as developments where residential space makes up at least 65% of total square footage and "multifamily residential" as projects with three or more dwelling units (including condos). This law aims to reduce regulatory barriers for housing development in designated high-population areas.