According to Texas law, residency involves two key factors: physical presence in the state and a clear intent to remain in Texas. For legal purposes, where you sleep is only part of the answer to where you live.An affidavit of residency verifies a person's current address. Individuals can establish residency in two basic ways, one based on establishing domicile and the other based on graduation from high school. (1) "Dwelling" means one or more rooms rented for use as a permanent residence under a single lease to one or more tenants. A Certificate of Occupancy is required for all businesses in the city. Learn more about applying for a Certificate of Occupancy.