| PLANNING AND ZONING COMMISSION MEETING: 02/04/2026 Agenda Item 5 C |
| TO: | Planning and Zoning Commission |
| PREPARED BY: | William Willingham, Planner |
| SUBJECT: | PLUDC20260015 - Conduct a public hearing, workshop, discussion, and possible action to make a recommendation on amendments to Part III of the Schertz Code of Ordinance, Unified Development Code (UDC), to Article 8 Section 21.8.4 - Home Occupations and Article 16- Definitions. |
BACKGROUND
Per Unified Development Code (UDC), Section 21.4.7, City Council may, from time to time, on its own motion, or at the request of the City Manager or his/her designee, may change or modify the UDC in order to establish and maintain sound, stable, and desirable development. The proposed UDC amendments, which were initiated by the Planning Division Staff, are intended to update the requirements for establishing home occupations in the City of Schertz to comply with the regulatory policy established by Texas House Bill (HB) 2464 "No-Impact Home Based Business." HB 2464 was passed on June 12, 2025 by the State of Texas and was made effective immediately upon its passage. The bill establishes specific criteria for how a municipality in the State of Texas is allowed to regulate home-based businesses, largely preventing municipalities from restricting these kinds of businesses.
The proposed amendments include modifications to Article 8 Section 21.8.4- Home Occupations and Article 16- Definitions; to revise required conditions, eliminate allowed uses, and eliminate permit requirements. The proposed amendments have been reviewed by Schertz' legal team to ensure all changes are compliant with all applicable law.
Proposed Amendments
Staff is proposing modifications to the following UDC Article 8, Section 21.8.4 and Article 16, "Home Occupation" definition:
The proposed amendments include modifications to Article 8 Section 21.8.4- Home Occupations and Article 16- Definitions; to revise required conditions, eliminate allowed uses, and eliminate permit requirements. The proposed amendments have been reviewed by Schertz' legal team to ensure all changes are compliant with all applicable law.
Proposed Amendments
Staff is proposing modifications to the following UDC Article 8, Section 21.8.4 and Article 16, "Home Occupation" definition:
| Article | UDC Section | Current UDC | Proposed Amendment |
| Article 8 | Section 21.8.4; Specifically 21.8.4.A.1 | Protect residential areas from adverse impact of activities associated with home occupations. | Adding the alternative names of Home Occupations as "No-Impact Home-Based Businesses" as described by the Texas Local Government Code (LGC) |
| Article 8 | Section 21.8.4; Specifically 21.8.4.B | Home Occupations—Required Conditions. Home occupations shall be permitted as an accessory use in all residential zoning districts provided that they comply with all restrictions herein. | Removing language referencing "permitting" and including a reference to the Texas LGC. |
| Article 8 | Section 21.8.4; Specifically 21.8.4.B.1 | Revising the restriction to be compliant with the Texas LGC. | A home occupation shall be incidental and secondary to the use of the premises for residential purposes |
| Article 8 | Section 21.8.4; Specifically 21.8.4.B.2 though 21.8.4.B.12 | Eliminating all restrictions which are not compliant with the Texas LGC and revising them so they are compliant. |
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| Article 8 | Section 21.8.4.C through Section 21.8.4.F | All restrictions established in these sections relating to allowable uses, prohibited uses, and permitting have been removed to become compliant with the Texas LGC. | Sections eliminated |
| Article 16 | "Home Occupation" | The definition of a home occupation was revised to comply with the Texas LGC. | Home Occupation: Also known as a Home-Based Business which is located on a residential property, operated by the owner or tenant of the property and is for the purpose of manufacturing, providing, or selling a lawful good, or providing a lawful service. Home Occupations / Home- Based Businesses must comply with regulations as defined in Article 8 Section 21.8.4. |
GOAL
To amend Part III of the Schertz Code of Ordinance, Unified Development Code (UDC) Article 8 Section 21.8.4- Home Occupations and Article 16- Definitions.
COMMUNITY BENEFIT
It is the City’s desire to promote safe, orderly, efficient development and ensure compliance with the City’s vision of future growth.
SUMMARY OF RECOMMENDED ACTION
When considering UDC amendments, staff considered the criteria listed in UDC Section 21.4.7.D. The criteria are listed below:
1. The proposed amendment promotes the health, safety, and general welfare of the City
The proposed amendment promotes the general welfare of the City by bringing UDC Section 21.8.4- Home Occupations into compliance with the regulations established by the Texas Local Government Code (LGC). On June 12, 2025, the 89th Legislature of the State of Texas passed and approved House Bill 2464. This bill is related to the authority of a municipality to regulate a home-based business. The bill prohibits municipalities from adopting and enforcing ordinances that prohibit "no-impact home-based businesses," and also prohibits the requirement of permits, approvals, or changes in zoning to establish these businesses. This bill was effective immediately, causing large sections of UDC Section 21.8.4- Home Occupation, to become noncompliant with the Texas LGC Section 229.902.
2. The proposed amendment is consistent with the goals, objectives, and policies of the UDC and the City
The purpose and intent of the UDC is to ensure the safe, orderly, and efficient development and expansion of the City. The proposed revisions to UDC Article 21.8.4- Home Occupations are necessary to become compliant with the State of Texas by ensuring developmental policy adopted by the City is not prohibited per Texas LGC Section 229.902. Thus, the proposed amendment is consistent with the goals of the City.
3. The proposed amendment corrects an error, meets the challenge of changing conditions, or is in response to changes in state law
The proposed revisions to UDC Article 21.8.4- Home Occupations are in response to the adoption of Texas House Bill 2464 which limits the municipal authority to regulate "no-impact home-based businesses." This bill was made effective immediately upon its adoption on June 12, 2025, causing large sections of UDC Section 21.8.4- Home Occupation, to become noncompliant with the Texas LGC.
4. Other factors which are deemed relevant and important in the consideration of the amendment
Staff has ensured all UDC requirements have been met for the proposed Unified Development Code Amendments.
1. The proposed amendment promotes the health, safety, and general welfare of the City
The proposed amendment promotes the general welfare of the City by bringing UDC Section 21.8.4- Home Occupations into compliance with the regulations established by the Texas Local Government Code (LGC). On June 12, 2025, the 89th Legislature of the State of Texas passed and approved House Bill 2464. This bill is related to the authority of a municipality to regulate a home-based business. The bill prohibits municipalities from adopting and enforcing ordinances that prohibit "no-impact home-based businesses," and also prohibits the requirement of permits, approvals, or changes in zoning to establish these businesses. This bill was effective immediately, causing large sections of UDC Section 21.8.4- Home Occupation, to become noncompliant with the Texas LGC Section 229.902.
2. The proposed amendment is consistent with the goals, objectives, and policies of the UDC and the City
The purpose and intent of the UDC is to ensure the safe, orderly, and efficient development and expansion of the City. The proposed revisions to UDC Article 21.8.4- Home Occupations are necessary to become compliant with the State of Texas by ensuring developmental policy adopted by the City is not prohibited per Texas LGC Section 229.902. Thus, the proposed amendment is consistent with the goals of the City.
3. The proposed amendment corrects an error, meets the challenge of changing conditions, or is in response to changes in state law
The proposed revisions to UDC Article 21.8.4- Home Occupations are in response to the adoption of Texas House Bill 2464 which limits the municipal authority to regulate "no-impact home-based businesses." This bill was made effective immediately upon its adoption on June 12, 2025, causing large sections of UDC Section 21.8.4- Home Occupation, to become noncompliant with the Texas LGC.
4. Other factors which are deemed relevant and important in the consideration of the amendment
Staff has ensured all UDC requirements have been met for the proposed Unified Development Code Amendments.
RECOMMENDATION
Staff recommends approval of PLUDC20260015.