The Senate Committee on Local Government convened on April 24, 2025, to discuss several key legislative proposals, notably Senate Bill 2477, aimed at addressing Texas's housing crisis and high office vacancy rates.

Senator Bettencourt presented the bill, highlighting the significant challenges faced by urban areas such as Dallas, Houston, and Austin, where office vacancy rates have soared to nearly 25% since the pandemic. Concurrently, these cities are grappling with rising housing costs and a shortage of residential options near employment centers. Senate Bill 2477 seeks to facilitate the conversion of underutilized office buildings into residential units by removing regulatory barriers that currently hinder such transformations.

The bill includes specific exclusions for buildings located near heavy industrial zones, airports, and military bases, ensuring that local authorities retain control over short-term rentals and historic districts. It mandates that all conversions comply with local permitting requirements and adhere to health and safety codes, ensuring that repurposed structures meet modern construction standards.

The committee also discussed a committee substitute for the bill, which expands the population threshold for eligible cities from those with populations over 90,000 to those over 150,000. Additionally, it clarifies exclusions related to military bases and airports, removes provisions for recovering economic damages in civil suits, and eliminates references to county authorities throughout the legislation.

Public testimony on Senate Bill 2477 was limited, with no registered speakers present to voice support or opposition. The committee chair subsequently closed public testimony and left the bill pending for further consideration.

As Texas continues to navigate its housing challenges, Senate Bill 2477 represents a proactive approach to repurposing existing structures to meet the growing demand for affordable housing, while also addressing the issue of vacant office spaces in urban centers. The next steps for the bill will depend on further discussions and potential amendments as it moves through the legislative process.