In 2005 the Texas Legislature adopted HB 2266, now codified at section 214.904 of the Local Government Code, to prevent municipalities from requiring developers to provide a certain portion of their units at below market rates as a condition for receiving building and development permits. Bill Analysis, Author’s/Sponsor’s Statement of Intent, http://www.capitol.state.tx.us/tlodocs/79R/analysis/html/HB02266S.htm. The legislation prohibits a municipality from adopting a requirement in any form that establishes a maximum sales price for a privately produced housing unit or residential building lot. Local Gov’t Code ?214.904, Texas Legislature Online, http://tlo2.tlc.state.tx.us/statutes/docs/LG/content/htm/lg.007.00.000214.00.htm#214.904.00 (last visited 8/4/07).

A good case concerning the inverse of “inclusionary zoning” or “exclusionary zoning” in Texas is Dews v. Sunnyvale, 109 S.W. 2d 526 (N.D. Texas 2000). The court held that the Town’s actions in maintaining a one-acre zoning ordinance, in enacting a resolution banning apartments, and in refusing to consider a particular rezoning application had a discriminatory effect on African-Americans and were motivated by discriminatory purpose in violation of 42 U.S.C. ??1981, 1982, and 1983, and 3604, and Plaintiffs’ constitutional rights.) See also, Chris Phillips and Bradford Bullock, Homebuilders Attack Local Zoning Authority, Texas Municipal League website, http://www.tml.org/legal_pdf/NAACPvsKyle.pdf (discussing NAACP et al. v. The City of Kyle, U.S. DistrictCourt for the Western District of Texas (Civil No. A05CA979LY), where the NAACP has challenged zoning and subdivision regulations that significantly increase the cost of housing under the Fair Housing Act.