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, 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. The City of Schertz Planning and Zoning Commission held a public hearing on February 4, 2026 for the proposed amendments. A public hearing notice was published in the San Antonio Express on Wednesday February 11, 2026. On the newspaper notice, the ordinance was noticed with an extra zero as Ordinance 26-S-0006.

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.	A home occupation shall be operated by the owner or tenant of the property. Performance of the occupation activities shall not be visible from the street. A home occupation shall not generate on-street parking or a substantial increase in traffic.        A home occupation shall not substantially increase noise in the area or violate the City of Schertz noise ordinance, regulations, or rules. A home occupation operating a sexually oriented business or conducting the sales of alcohol or illegal substances shall be prohibited. All home occupations shall comply with all federal, state, and municipal law related to all fire and, building code requirements, health and sanitation requirements, transportation and traffic requirements, solid and hazardous waste requirements, and pollution and noise control.  All home occupations shall be subject to inspection by city staff for compliance with the mandates of this section herein.
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.

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. 

It is the City’s desire to promote safe, orderly, efficient development and ensure compliance with the City’s vision of future growth.

When considering UDC amendments, staff considers 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. It is the City of Schertz' goal to remain compliant with the Texas LGC. 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.

Schertz Fire, EMS, and Police have reviewed the proposed amendments and have provided no objections. 

The proposed amendments have been reviewed by legal with no objections provided. 

The proposed amendments were heard by the Planning and Zoning Commission and no additional amendments were requested. 

Staff Recommendation:
Staff recommends approval of Ordinance 26-S-006 to comply with changes to state law.

Planning and Zoning Commission Recommendation:
The Planning and Zoning Commission held a public hearing for the item on February 4, 2026, and made a recommendation of approval to City Council with a unanimous vote.