Texas Mandates Manufactured Homes, Cities Slowly Comply

Texas is enacting a new state law, Senate Bill 785, which mandates that municipalities with zoning must permit new HUD-code manufactured homes by right in at least one residential district, effective September 1. This legislation aims to increase housing affordability by opening up more areas for manufactured housing. The change is expected to require nearly 400 cities across Texas to revise their zoning codes to comply with the new state requirement. An early example of this shift is Nacogdoches, Texas, which reversed a long-standing ban on new manufactured homes. In 2004, Nacogdoches had stopped allowing manufactured homes by right in its residential districts, rendering existing ones legally nonconforming and limiting owners' ability to replace or expand them. This policy was enacted despite the city's 2003 comprehensive plan acknowledging manufactured housing as an affordable path to homeownership, with the decision seemingly influenced by concerns over property values. However, in early August, the Nacogdoches City Council unanimously established a new residential district where manufactured homes are now permitted by right, including the 69 lots in Millard's Apple Park, which was originally platted in 2002 to accommodate both traditional and manufactured homes. Mike Neu, the city's executive director of development and infrastructure, highlighted the significance of this change for existing homeowners, stating that they "don't have to wait till it just completely falls apart to replace it" and now have options they previously lacked. A recent analysis from the National Zoning Atlas indicates that a substantial portion of Texas cities have restrictive policies regarding manufactured housing: 33% do not explicitly allow it, and an additional 11% require special permits or public hearings. The state's move is a direct response to the ongoing housing affordability crisis, with manufactured homes often representing a more accessible entry point into homeownership compared to traditional site-built homes. The Texas Manufactured Housing Association estimates that hundreds of cities will need to update their ordinances to align with Senate Bill 785. The varying pace at which cities are implementing these changes suggests a spectrum of local responses, from proactive adoption like Nacogdoches to potential delays or minimal compliance in other municipalities. This legislative action represents a significant intervention in local zoning practices, prioritizing housing supply and affordability at the state level over traditional local control over land use. The long-term impact will depend on how effectively cities integrate manufactured housing into their residential planning and whether it leads to a measurable increase in affordable housing stock across the state.