Shared Housing Structure Classification
In the late 1990's and early 2000's, developers and investors figured out that a lot of money can be made with over-occupancy and that enforcement by the city was difficult. They then began building what are commonly known as "Ag Shacks" (The name of one of the early companies that promoted these structures.) or "stealth dorms." These structures replace traditional homes and are not suited for any other purpose than rental, unlike traditional homes that can be rented, but can also revert to owner-occupancy at relatively little cost. Stealth dorms and "Ag Shacks" permanently alter the character of a neighborhood and there was no set of criteria the City could use to stop their construction.

"Shared Housing" is a type of structure classification which was adopted by the City on October 13, 2022 (Ordinance #2022-4397). When a building permit is applied for, City Staff compares the components of the building design to a checklist. If the building plans include more than two items on their checklist, it is sent for review to determine how it should be classified: as single-family or Shared Housing. Below is an abbreviated checklist:

• Contains more than four bedrooms or other rooms that can be used for sleeping purposes.

• Has a similar number of bedrooms and bathrooms (i.e., four bedrooms and four bathrooms).

• Contains a high quantity of bathrooms (over four) that can be accessed only through other rooms.

• Is in excess of one story for the purposes of meeting impervious cover requirements.

• Does not include a garage or, if it does, the garage can be converted to living space.

• Has a parking area that will allow parking of more than four vehicles.

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Middle Housing Zoning

"Middle Housing" is a new zoning classification adopted by the City on October 27, 2022 (Ordinance #2022-4399). This classification was created to:

• Accommodate an ever-growing student population.

• Acknowledge the reality of what was already happening in some neighborhoods.

• Provide protection to other neighborhoods from incompatible housing types (Ag Shacks, etc.).

Ag Shacks and the like will only be allowed in areas zoned for Middle Housing. In other words, it should effectively prevent the tear-down and replacement of existing single family homes with built-to-rent structures in designated residential neighborhoods.

However, multi-unit structures will be allowed on a single lot, including up to EIGHT-plexes, depending on lot size and other factors. In other words, areas zoned for Middle Housing will likely evolve into new, much higher-density student housing. This, of course, is the real intent.

Where will Middle Housing zones be?
The location of Middle Housing zones will be the next battle for neighborhoods. The City will likely adopt this zoning for areas that are almost entirely rental properties already. This includes a large number of targeted neighborhoods that are critical for affordable workforce and student housing. There has been a public comment period resulting in the removal of a few neighborhoods from consideration to become Middle Housing zones.

Things Middle Housing zoning will not do:

• Eliminate existing Ag Shacks due to grandfathering.

• Prevent owner-occupied, single-family homes from being rented, unless prevented by neighborhood HOAs and/or deed restrictions.

• Change the enforcement, or lack thereof, of occupancy rules (now changed by SB1567).

• Punish Ag Shack developers/owners who built them to intentionally violate the previous four-unrelated occupancy rule (now superseded by SB1567).

High Occupancy Overlays (HOO)
Initially, over four-unrelated came with the Middle Housing zones automatically. During the public feedback process for Middle Housing zoning, it became apparent that student over-occupancy was a major concern. So, the City created the High Occupancy Overlay (HOO) that must be applied for separately from Middle Housing. City Staff decided that roughly half of the proposed Middle Housing zones were not suitable for more-than-four-unrelated occupancy. These overlays will likely only be granted for larger areas of suitable structures (versus lot-by-lot requests).

Summary

1. The "no more than four-unrelated" occupancy rule is no longer valid in the City of College Station due to changes in State law effective September 1, 2025. See SB1567. Note that HOAs are explicitly exempt from SB1567.

2. The Shared Housing structural classification has already eliminated the construction of new "Ag Shacks" in many neighborhoods. New ones will now only be allowed in Middle Housing zones.

3. Neighborhoods rezoned to Middle Housing can expect the existing single-family homes and duplexes to be replaced by new, multi-unit (up to eight) structures over time - the timeline, however, is up for debate.

4. The HOO should help preserve Middle Housing neighborhood character, at least in the short term.