Relating to the regulation of residential land use and accessory dwelling units by a political subdivision; authorizing a fee.

HB 878 limits zoning restrictions on residential lots in large Texas municipalities (population 85,000+ in counties with 1 million+ residents). It prohibits cities from requiring lots larger than 2,500 sq ft, wider than 16 feet, or deeper than 30 feet, and bans density rules resulting in fewer than 31.1 units per acre. The bill also blocks most restrictions on "small lots" (4,000 sq ft or less), including setbacks over 5 feet, covered parking mandates, and limits on building height or stories. Municipalities may still charge standard permitting fees for small lots and require driveway sharing. This directly affects housing development options in major urban areas by removing barriers to denser housing.