Entitlement guide
Vesting and grandfathering.
In Texas, a project can often be reviewed under the rules in effect when its first permit application was filed. Often, but not always, and not for everything.
The short answer
Chapter 245 of the Texas Local Government Code is the state vesting law. In general, once an application for a project gives fair notice of the project, the city or county must review the permits for that project under the rules in effect on that date.
Vesting belongs to the project, not the land. It can carry through a series of permits for the same project, such as a preliminary plan, plat and site plan. A materially different project usually starts fresh.
The law also lists exemptions. Some rules apply as of today no matter when the project started, including certain utility connection rules, fees, flood rules under the federal flood program, and some building and fire codes. A vested site plan can still run into a new fire flow or utility requirement.
- Earlier applications on the parcel and their filing dates
- Whether the planned project matches the earlier one
- Expiration dates and signs of dormancy
- Which rules are exempt and apply as of today
- Recorded development agreements
Why it can stop a deal
Where projects get caught.
Vesting is assumed, not proven
A buyer may pay for older rules that do not apply. If the earlier application was for a different project, or it expired, the current code governs.
The exemptions still bite
Utility connection rules, fees and federal floodplain rules are among the exemptions. A new flood map or a utility policy can change a vested project.
Projects can go dormant
Permits can expire, and the law lets agencies end vesting for projects that show no progress for a period. Proof of progress matters.
How it works
How it usually works in Central Texas.
Rules differ by city, county and utility, and they change. Treat this as orientation and confirm with the approving authority.
The governing date
The governing date is usually the filing date of the first application that gave fair notice of the project. Later permits in the same series are reviewed under the rules from that date. The holder can also choose to use later rules that help the project.
What counts as the same project
Vesting follows the project. Changing the use, the scale or the layout enough can make it a new project in the eyes of the agency or a court. Similarity is a judgment call, so we flag it for your attorney.
What is exempt
Chapter 245 lists rules it does not protect. Examples include some zoning rules that regulate use, impact and other fees, utility connection standards, floodplain rules adopted under the federal flood program, and certain building, fire and health codes. Each rule in a VALITER report is tagged with whether vesting can apply to it.
Expiration and dormancy
Expiration dates in effect when the project was filed still apply. The law also allows agencies to treat a project as dormant if no progress is made for a set period, and it lists what counts as progress, such as filing plans, spending on improvements or posting fiscal security.
Agencies it binds
Chapter 245 binds cities, counties and other political subdivisions. It does not stop state or federal agencies from applying their own current rules. A city and a county can also have different governing dates for the same project, which matters after an ETJ release.
Development agreements
A development agreement with a city can be treated as a permit for vesting purposes and can set the rules for the life of the agreement. These are recorded and run with the land.
Who decides
The people and offices involved.
| Who | What they decide |
|---|---|
| City or county staff | Whether a vesting claim is accepted for review |
| City council or a vested rights process | Disputed claims in cities that have a formal process |
| Your attorney | Whether the claim is strong enough to rely on |
| Courts | Disputes that cannot be resolved with the agency |
- What was the first application for this project, and when was it filed?
- Is the planned project the same use and scale?
- Has any permit in the series expired?
- Which current rules apply anyway under the exemptions?
- Does a development agreement set the rules?
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