KILLEEN, Texas (KXXV) — City leaders in Killeen could move forward with a plan to add an extra layer of zoning rules to the north side of town, with a final council vote scheduled for Oct. 20.
The North Killeen Overlay District would stretch from Fort Hood Street to S WS Young Drive, changing zoning rules to allow for tiny homes and accessory dwelling units (ADUs) on existing properties. The overlay would also prohibit certain businesses from being added to the area, including after-hours nightclubs, private gambling clubs, BYOB establishments and outside sales of secondhand goods.
The overlay builds on the North Killeen Revitalization Program, an ordinance adopted in 2015 to encourage new investment and redevelopment of the area. In March 2026, the Killeen City Council approved a request to discuss increasing affordable housing opportunities by allowing tiny homes and ADUs in appropriate locations. The following month, council directed staff to develop the zoning overlay.
Jason Deckman with the City of Killeen said the plan is designed to expand housing options — not force changes on property owners.
"The biggest misconception is this is going to force homeowners to make changes that they didn't want. This just gives them the option. There's been some comments about the city's going to take your property. That's not true. This doesn't authorize any kind of eminent domain," Deckman said.
Deckman said the goal is to encourage growth while keeping current residents in place.
"The idea is to promote infill development, to have more housing, more choices available, to let the property owners develop on their property, and I think that's one of the key points that we want to make is this doesn't require you to build," Deckman said.
The overlay area includes 201 properties. Of those, 99 are zoned R1, R2 or R3; 45 are zoned B5; and 51 fall within the Historic Overlay District. Seven properties are affected by a floodplain. The average property size in the area is 2,500 square feet, with a median of 2,878 square feet. 55 properties are less than 2,000 square feet.
Deckman said the overlay is also intended to improve the overall appeal of the neighborhood.
"We don't want to kick folks out of their home. We want people to stay where they're at. We want people to feel safe living in the community, but we want them to have that sense of ownership and sense of pride that being able to build on your property," Deckman said.
Neighbors have been pushing for more resources on the north side of Killeen, including a grocery store. I asked Deckman whether the overlay could help attract one.
"It's one of those where it'll be kind of an indirect consequence. So this doesn't do anything that will directly bring a grocery store, but what it does and what we've heard as there's been the discussion of attracting a grocery store, is that more rooftops equals more customers, and that's going to change the equation," Deckman said.
"[Tiny homes and ADU's] does increase the housing supply and then that does increase the number of potential customers, then that turns around could attract a grocery store," Deckman said.
Notices were mailed to area property owners on Aug. 26. The final decision goes before the Killeen City Council on Oct. 20.
Click here for more information on the North Killeen Overlay District
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