Housing Developments on Qualifying Properties

     The act requires a subject jurisdiction to, on or after December 31, 2027, subject to an administrative approval process, allow the construction of a residential development on a qualifying property that does not contain an exempt parcel; except that, if on December 31, 2027, a subject jurisdiction is actively in the process of updating the subject jurisdiction's zoning or development code to comply with the act, the subject jurisdiction is required to complete the updates and allow the construction of a residential development on a qualifying property that does not contain an exempt parcel by June 30, 2028. A qualifying property is real property that contains no more than 5 acres of land and is owned by:

• A school district;
• A state college or university;
• A board of cooperative services;
• A housing authority;
• A local or regional transit district or a regional transportation authority serving one or more counties;
• A nonprofit organization with a demonstrated history of providing affordable housing; or
• A nonprofit organization that has entered into an agreement with another nonprofit organization with a demonstrated history of providing affordable housing, provided that the agreement requires the nonprofit organization with a demonstrated history of providing affordable housing to develop a residential development on the property.

     If a subject jurisdiction requests, as part of an initial development application, that a nonprofit organization with a demonstrated history of providing affordable housing provide documentation that the nonprofit meets required criteria, the nonprofit organization shall provide the documentation. A subject jurisdiction is not required to allow a residential development on a qualifying property if the subject jurisdiction implements a transferable development rights program on the qualifying property and if the transferable development rights program includes a policy for affordable resident housing that is restricted in ownership and occupancy in perpetuity.

     A subject jurisdiction shall not:

• Disallow construction of a residential development on a qualifying property on the basis of height if the tallest structure in the residential development is no more than 3 stories or 38 feet tall, except in certain circumstances;
• Disallow construction of a residential development on a qualifying property on the basis of height if the tallest structure in the residential development complies with the height requirements of the zoning district in which the residential development will be built or the height requirements that apply to any parcel zoned to allow for residential development that is contiguous to the qualifying property on which the residential development will be built;
• Disallow construction of a residential development on a qualifying property based on the number of dwelling units the residential development will contain, except in accordance with standards listed in the act; or
• Apply site design standards to a residential development on a qualifying property that are more restrictive than the site design standards the subject jurisdiction applies to similar housing constructed within the subject jurisdiction, including standards related to structure setbacks from property lines; lot coverage or open space; on-site parking requirements; numbers of bedrooms in a multifamily residential development; on-site landscaping, screening, and buffering requirements; solar access; minimum dwelling units per acre; or other objective setback standards that apply to residential dwellings, including setbacks from oil and gas facilities, oil and gas operations, stream corridors, riparian areas, wetlands, and sensitive wildlife habitats.

     Provided that the uses are allowed conditionally or by right within the zoning district in which a qualifying property is located, a subject jurisdiction shall allow the following uses in a residential development on a qualifying property:

• Child care; and
• The provision of recreational, social, or educational services provided by community organizations for use by the residents of the residential development and the surrounding community.

     On or before December 31, 2027, the department of local affairs is required to publish guidance to assist subject jurisdictions in verifying the status of a nonprofit organization with a demonstrated history of providing affordable housing.


(Note: This summary applies to this bill as enacted.)